COGTA ANNUAL REPORT 2020

the verification of the achievements by municipal Internal Audit also ensures that the progress reflects the real achievements. Also, key to the engagements is that they are solution driven. The AG adds value by providing support on technical issues. By the end of the municipal second quarter a significant number of issues were resolved. The only outstanding issues were those that only the auditor general could pronounce on post audit. IMPACT STATEMENT The resolveof continuingwith the regular coordination of advisory support by different stakeholders such as Provincial Treasury, National CoGTA, AGSA and CIGFARO in the OPCA PCC resulted in consistent positive audit outcomes in all Gauteng municipalities. In addition, the participation in the municipal OPCA steering committees has ensured further opportunity to provide advisory support to the municipalities. 11. Two (2) Municipalities provided with capacity to implement the developed simplified revenue plans. (Emfuleni and Rand-West City). The initiative started with an in-depth assessment of the Revenue value Chain to identify gaps that will need to be addresses; and agreeing with the municipalities on areas to be supported by the Province. To date the focus of the initiative in the identified municipalities was as follows: • Provision of ID numbers for customers without ID numbers for the municipalities to update on the municipal financial system; Provision of Company Registrations for the municipality to update on the municipal financial system; Provision of correct, complete customer data (Addresses, contact details and spouse details); • •

IMPACT STATEMENT 150 528 000 ID numbers and 2 192 Company registration numbers were provided to the two municipalities to update on the municipal finance system. Financial benefits were realized (Total of R394 927 481.80 for Emfuleni and R139 450 270.70 for Randwest City) from the implementation of the project as highlighted above. In addition, processes, procedures and policies were put in place for the continuation of the work by the municipalities post the support. Value for money statement: There was a major return on investment from the project with the expenditure on the project by the Department being R5,788,000.00 for a benefit to the value of (R534,377,751.00). Over and above the planned activities, the following were achieved as additional value add as identified during project implementation: • R 18 996 415 was collected from companies doing business municipalities that had outstanding debt to the municipality. The Municipal debtor’s book was profiled to identify what is collectible and what is not collectible. Indigent Data Management -Out of 88 000 indigent accounts, 13646 have changed from indigent to Residential. A rand value associated with these accounts amounts to R 493 348 882,61. Furthermore, facilitated value added services that were not part of the project but were of benefit to the Municipalities. The following were done: Reviewing of policies: (Indigent policy, Credit control and debt management policy). While we were busy with indigent verification, we noticed how the municipality had more than one policy and officials used different versions of policies to implement indigent management. The latest policy was reviewed and agreed upon by all parties concerned. After the agreement on only one policy everyone managed the indigents according to only that policy. • •

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Provision of accurate indigent data;

Transactional audits

Tariff alignment;

Resolution of debt owed by municipal vendors/ service providers; and Resolution of debt owed by Municipal officials;

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G A U T E N G P R O V I N C I A L G O V E R N M E N T I C O- O P E R A T I V E G O V E R N A N C E A N D T R A D I T I O N A L A F F A I R S ANNUAL REPORT 2019/20 34