A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 6

The Auditor-General’s report The Auditor-General checks that the fi nancial statements prepared by municipal of fi cials are fairly and accurately presented. The Auditor-General’s report provides: an audit opinion: it gives an opinion about the state of the municipality’s fi nances. It reports on fi ndings that may be important in deciding how well the fi nances of a municipality are managed an evaluation of internal controls: the report discusses how well the systems and procedures control the fi nances of the municipality. They need to be able to identify problems and their solutions in good time an assessment of the performance management system: the report discusses how well the performance management system de fi nes and monitors performance management. The annual report An annual report is a comprehensive report of municipal activities during the year. It is a mirror image of a plan, but looks backwards at what has been achieved against the targets set. It must be available by 31 January each year. The annual report must include: the annual fi nancial statements (that are discussed above) theAuditor-General’s audit report which includes particulars of any corrective action taken in response to issues raised in the audit report an assessment of any arrears on municipal taxes and service charges recommendations of the audit committee. The oversight report • • • • • • •

The oversight report is prepared by councillors that sit on an oversight committee. The committee analyses and reviews the annual report and must then decide if council should approve the annual report or not. It may decide to refer the annual report back to the municipality for revisions. The oversight committee can request the public and other councillors to contribute to the report. The oversight report must be discussed in a full council meeting before it is adopted.

Auditor- General: The Auditor-General is appointed by Parliament to report on how well taxpayers’ money is being spent.

70

Understanding the Municipal Finance Management Act