LGA: AFS Submission & GRAP Updates 06 September 2013.
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Transcript of LGA: AFS Submission & GRAP Updates 06 September 2013.
LGA: AFS Submission & GRAP Updates
06 September 2013
Table of contents
1. Introduction
2. Submission of Annual Financial
Statements
3. GRAP Updates
4. Way Forward
Introduction
The legal framework on the submission of AFS is stated in the MFMA Sec.126(1)
(a), where the Accounting Officer of a municipality must prepare AFS within two
months after the end of the financial year to which those statements relate and
submit the statements to the Auditor –General for auditing.
Furthermore, Sec.133 states that in the event of non-submission of AFS certain
processes have to be undertaken amongst others such as the Mayor tabling a
written explanation in council setting out reasons for the failure to submit etc.
The municipality should ensure that processes outlined in Sec 133 of the MFMA
is adhered to.
Though submitting AFS within legislative timelines is important, it has to be
balanced against reliability (producing reliable and accurate information).
Submission of Annual Financial Statements
Timely and accurate financial reporting is essential for effective decision making,
more effective and timely management of public funds and enhancing public
accountability.
According to the A-G schedule on submission of AFS for 2012/13 financial year one
municipality had not submitted AFS as required by the MFMA
The trend for the past three years on submission by the timelines reflects that
2012/13 (96.6%); 2011/12 (86.6%) & 2010/11 (60.0%); this represents a
significant improvement in 2012/13 financial year when compared to the previous
years;
It is important to note that delayed reporting reduce the relevance and usefulness
of the information reported and tends to erode the trust of its constituents.
Submission of Annual Financial Statements
2010/2011 2011/12 2012/13
WC Municipalities 60 86.66 96.66
5
15
25
35
45
55
65
75
85
95
Western Cape MunicipalitiesSu
bmiss
ion
of A
nnua
l Fin
anci
al S
tate
men
ts
GRAP Updates
PT compiled report on the issues raised during session on GRAP Standards for further
interpretation and guidelines with practical examples on the following Standards:
(GRAP 21 & 26 ; GRAP 23 ; GRAP 24 & GRAP 103);
Session was held in Eden District discussing ED 110 – Post Implementation Review
of Selected Standards of GRAP (GRAP 16 & 17) to provide comments to the ASB,
and comments received during the session were communicated to all CFO’s for any
additional comments and the due date is the 18 October 2013 to ASB;
The overview on the comments provided in the session indicated that on the Institutional Environment: impact on the IT system, Organisational
Environment asset management system and working relationship between
accountants and engineers and on Individual skills and Competencies: capacity of
staff on GRAP Standards.
Way Forward
To assist municipalities to prepare timely and quality financial statements, PT will
conduct quarterly visits to workshop a detailed year-end AFS preparation
plan that outlines critical activities and milestones to be achieved;
Key reconciliations prepared by municipalities will be checked by PT on a
quarterly basis to ensure that key accounts are up to date.
There should be more participation on the ED’s issued; by both PT and
Municipalities in the Province by means of communication and arranging sessions
to deal with any implications that the municipalities might have once the new
GRAP Standard has been approved and effective by ensuring that comments are
provided to the ASB;
PT will organise training on GRAP Reporting Framework for 2013/14 Financial
year.
Thank you