4.1 Budget and Treasury Staff Establishment: The department is not adequately staffed Municipal Manager Internal institutional Office Budget and Treasury office is fully arrangement 30 June 2015 established with 4 units : Supply Chain Vacancies Management, Expenditure, Revenue, Financial Reporting and Compliance 1 Senior accountant 1 Salaries clerk 1 Accountant recently resigned 1 Assistant accountant 1 Rates clerk 2 Stock controllers 1 Asset controller 2 New asset controller 4.2 Budget Plan Budget plan is in place but not properly The challenge is that the municipality had Management will enforce the NKLM: followed. unauthorized expenditure of R118 723 887 implementation of budget related Municipal Manager in 2014 financial year. policies. All Directors Some of the expenditure items affected Management to implement cost Chief Financial Officer are as follows. curtailment on the following to monitor -Employee related costs recommended items: 31 May 2015 -Security services -Maintenance of fleet 1.Overtime 2.Subsistence and travelling 3.Contract workers 4.3 IDP Linkage There is a linkage of the budget and IDP There are areas where projects were not To ensure that that only projects NKLM: Municipal implemented. which are in the IDP and funded on Manager the budget are implemented 14 April 2015 To ensure that any change in priorities is adequately communicated and adjusted accordingly 4.4 SDBIP SDBIP is in place and was approved on There are projects which were To adhere to the SDBIP NKLM: Municipal time implemented but there were either not Manager included on the SDBIP or budget. To inform communities about 14 April 2015 the reprioritization of projects (Mr Mkhonto to respond) Quarterly Reports Reports submitted in line with Reports are not properly reviewed for The municipality will ensure that NKLM: Chief Financial legislation: quality purposes. quality quarterly reports are Officer There are good quality controls in improved through proper review. PT and COGTA place to produce the quarterly (Mr 30 April 2015 performance reports. 4.6 Budget Management Adequate execution: There are challenges on the Departmental procurement plans NKLM: The municipal budget is being implementation especially on operational to be reinitiated Municipal Manager management issues. Other departments are to assist in All Directors
4.1 Budget and Treasury Office Staff Establishment: Budget and Treasury office is fully established with 4 units : Supply Chain Management, Expenditure, Revenue, Financial Reporting and Compliance The department is not adequately staffed Vacancies 1 Senior accountant 1 Salaries clerk 1 Accountant recently resigned 1 Assistant accountant 1 Rates clerk 2 Stock controllers 1 Asset controller 2 New asset controller Internal institutional arrangement Municipal Manager 30 June 2015 4.2 Budget Plan Budget plan is in place but not properly followed. The challenge is that the municipality had unauthorized expenditure of R118 723 887 in 2014 financial year. Some of the expenditure items affected are as follows. -Employee related costs -Security services -Maintenance of fleet Management will enforce the implementation of budget related policies. Management to implement cost curtailment on the following recommended items: 1.Overtime 2.Subsistence and travelling 3.Contract workers NKLM: Municipal Manager All Directors Chief Financial Officer to monitor 31 May 2015 4.3 IDP Linkage There is a linkage of the budget and IDP There are areas where projects were not implemented. To ensure that that only projects which are in the IDP and funded on the budget are implemented To ensure that any change in priorities is adequately communicated and adjusted accordingly NKLM: Municipal Manager 14 April 2015 4.4 SDBIP SDBIP is in place and was approved on time There are projects which were implemented but there were either not included on the SDBIP or budget. To adhere to the SDBIP To inform communities about the reprioritization of projects (Mr Mkhonto to respond) NKLM: Municipal Manager 14 April 2015 Quarterly Reports Reports submitted in line with legislation: There are good quality controls in place to produce the quarterly performance reports. Reports are not properly reviewed for quality purposes. The municipality will ensure that quality quarterly reports are improved through proper review. (Mr NKLM: Chief Financial Officer PT and COGTA 30 April 2015 4.6 Budget Management Adequate execution: The municipal budget is being management There are challenges on the implementation especially on operational issues. Other departments are to assist in Departmental procurement plans to be reinitiated NKLM: Municipal Manager All Directors
IDP1617.docx