COUNCIL MEETING: 28 AUGUST 2008: ANNEXURE “A”
ITEM 10: CORPORATE MONTHLY FINANCIAL REPORT FOR THE PERIOD ENDED 30 APRIL 2008, pp 53 – 55
Mr. Speaker
(1) Once again, the Council is supplied with a Report, called a “comprehensive financial overview”, whereas the Report is a far cry from “comprehensive”. The Report is cryptic, incomplete and it does not according to Section 71 of the Municipal Finance Management Act [MFMA] highlight the corporate financial performance of the municipality, as well as certain important financial ratios reflecting the financial soundness of the municipality
(2) The Report refers to paragraphs 6.1, 6.3, 7 and 8.3 for further detailed explanations and information, but no such paragraphs are provided
(3) The Mayoral committee resolved, inter alia, to take “cognisance” of the financial results and that the Municipal Manager ensures that all Heads of Departments take the necessary corrective measures to make certain that all budgeted operating revenue is recovered, that operating expenditure is managed to prevent over expenditure/unauthorised expenditure, and that capital expenditure plans are effectively and efficiently executed
(4) Departments’ responsibility in terms of the MFMA is to provide reasons for variances for expenditure and corrective measures to be implemented. To ensure compliance, this information is requested each month from all Departments, but the example set by the Department of the Office of the Executive Mayor and the Municipal Manager is a symptom of the poor management and control that exist in the Municipality. During the ten months ended 30 April 2008 this Department responded twice, but for the other eight months there was no feedback. I beg the question whether the Executive Mayor and the Municipal Manager are above the law?
(5) The pro-rata under-collected Operating and Revenue for the period is R463 million of which the amount for service charges is R196 million due to under collection and non-billing, presenting a sterling example of the lack of management and control
(6) Crime reigns Tshwane, yet R30 million during this period is under spent on Community Safety. The amount under spent on Roads and Stormwater is R108 million and it is therefore no wonder that residents have to buy 4-wheel vehicles and in so many wards the infrastructure cannot cope with raw sewerage
(7) During the 10 months only 51% of the Capital Expenditure has been spent. It is not surprising that stockpiling takes place during the month of June. Why are there so little or no corrective measures for Departments in order to achieve their service delivery expenditure targets during the year?
(8) Consumer Debtors owe R2,8 billion at 30 April 2008 of which amount Debtors older than 90 days comprises R2 million. Not surprising: I have personally dealt with Debtors accounts owing R11 000, R13 000, R19 000, R26 000 and last month with an account of R88 000. I took a copy of this account to the Municipal Manger, but he, as the Accounting Officer, told me to write to the Executive Mayor. This I did and had to deliver it by hand to the Mayor’s Office and let them sign for the letter that I wrote and a copy of the account; otherwise in my experience such information usually simply disappears at the Municipality. It is the legal responsibility of the Municipality to ensure that payment is received for services rendered. Why do we have Debtors collection rules and by-laws as these are merely ignored in many cases? What happened to cut-off procedures when services supplied are not paid for? Management and Internal Control are totally inadequate and inferior. ANC, you are in a position of trust of public funds and responsible to the residents
(9) This Report should really be referred back for adjustment as it is a defamation of the concept of a “comprehensive financial overview” as claimed
(Prof) Hein Redelinghuys
DA Spokesperson for Finances
TSHWANE
28 August 2008.
ITEM 10: CORPORATE MONTHLY FINANCIAL REPORT FOR THE PERIOD ENDED 30 APRIL 2008, pp 53 – 55
Mr. Speaker
(1) Once again, the Council is supplied with a Report, called a “comprehensive financial overview”, whereas the Report is a far cry from “comprehensive”. The Report is cryptic, incomplete and it does not according to Section 71 of the Municipal Finance Management Act [MFMA] highlight the corporate financial performance of the municipality, as well as certain important financial ratios reflecting the financial soundness of the municipality
(2) The Report refers to paragraphs 6.1, 6.3, 7 and 8.3 for further detailed explanations and information, but no such paragraphs are provided
(3) The Mayoral committee resolved, inter alia, to take “cognisance” of the financial results and that the Municipal Manager ensures that all Heads of Departments take the necessary corrective measures to make certain that all budgeted operating revenue is recovered, that operating expenditure is managed to prevent over expenditure/unauthorised expenditure, and that capital expenditure plans are effectively and efficiently executed
(4) Departments’ responsibility in terms of the MFMA is to provide reasons for variances for expenditure and corrective measures to be implemented. To ensure compliance, this information is requested each month from all Departments, but the example set by the Department of the Office of the Executive Mayor and the Municipal Manager is a symptom of the poor management and control that exist in the Municipality. During the ten months ended 30 April 2008 this Department responded twice, but for the other eight months there was no feedback. I beg the question whether the Executive Mayor and the Municipal Manager are above the law?
(5) The pro-rata under-collected Operating and Revenue for the period is R463 million of which the amount for service charges is R196 million due to under collection and non-billing, presenting a sterling example of the lack of management and control
(6) Crime reigns Tshwane, yet R30 million during this period is under spent on Community Safety. The amount under spent on Roads and Stormwater is R108 million and it is therefore no wonder that residents have to buy 4-wheel vehicles and in so many wards the infrastructure cannot cope with raw sewerage
(7) During the 10 months only 51% of the Capital Expenditure has been spent. It is not surprising that stockpiling takes place during the month of June. Why are there so little or no corrective measures for Departments in order to achieve their service delivery expenditure targets during the year?
(8) Consumer Debtors owe R2,8 billion at 30 April 2008 of which amount Debtors older than 90 days comprises R2 million. Not surprising: I have personally dealt with Debtors accounts owing R11 000, R13 000, R19 000, R26 000 and last month with an account of R88 000. I took a copy of this account to the Municipal Manger, but he, as the Accounting Officer, told me to write to the Executive Mayor. This I did and had to deliver it by hand to the Mayor’s Office and let them sign for the letter that I wrote and a copy of the account; otherwise in my experience such information usually simply disappears at the Municipality. It is the legal responsibility of the Municipality to ensure that payment is received for services rendered. Why do we have Debtors collection rules and by-laws as these are merely ignored in many cases? What happened to cut-off procedures when services supplied are not paid for? Management and Internal Control are totally inadequate and inferior. ANC, you are in a position of trust of public funds and responsible to the residents
(9) This Report should really be referred back for adjustment as it is a defamation of the concept of a “comprehensive financial overview” as claimed
(Prof) Hein Redelinghuys
DA Spokesperson for Finances
TSHWANE
28 August 2008.
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