DANNHAUSER LOCAL MUNICIPALITY ANNUAL REPORT REVIEW & UPDATE 2019/2020 IN TERMS OF CIRCULAR.63

    DANNHAUSER LOCAL MUNICIPALITY ANNUAL REPORT REVIEW & UPDATE 2019/2020 IN TERMS OF CIRCULAR.63
    Terms of Reference
    FUNCTIONALITY

    Dannhauser Local Municipality requires the development of the 2019/2020 financial period Annual Report. The document must be holistic in nature and detail the operations and performance of the municipality in the respective year under review. Compliance must be adhered to the Municipal Finance Management Act, 56 of 2003 (MFMA), Municipal Systems Act, 32 of 2000 (MSA) and National Treasury MFMA Circular 63 read in conjunction with the MFMA National Treasury Circular 11, and National Treasury Revised Annual reporting Template requirements.

    PURPOSE

    The Annual Report is:

     To be developed in terms of Circular.63 and related government legislations;
     To provide a record of the activities of the municipality or entity during the financial year to which the report relates;
     To provide a report on performance in service delivery and budget implementation for the financial year;
     To promote accountability to the local community for the decisions made throughout the year by the municipality or municipal entity; and
     To reduce the additional reporting requirements that will otherwise arise from Government Departments, monitoring agencies and financial institutions.
    SCOPE OF WORK

    The goals of the new Annual Report Format MUST achieve the following:

     A standardised report that is comparable other Annual Reports;
     An alignment to financial and non-financial reporting in the Annual Report;
     Development of a standardised report with a structure that will enhance comprehensive oversight, meaningful evaluation and improved understanding of service delivery output;
     Ensuring the standardisation of terminology used in the Annual Reports; and
     A well laid out process of the internal and external audit process.
     Prepare oversight report.

    Compliance with the following;

    Sections 121(3) and (4) of the MFMA which sets out the framework relating to the content of the annual reports for the municipality and section 46 of the Local Government: Municipal Systems Act, as amended:

     Financial Statements reporting to include, amounts owed to the municipality and persistently delayed beyond 30 days, by national or provincial departments and public entities;
     To report on national and provincial allocations, reconciliation will be undertaken to ensure all amounts are correctly reported.
     The incorporation of the audit report of the Auditor-General 2019/2020 in terms of both section 126(3) of the MFMA and sections 45(b)& 46, of the MSA;or any service provider during the financial year to which the annual report relate including development and service delivery priorities and performance targets for the next financial year;
     The incorporation of the municipality’s annual performance report 2019/2020 as per section 46 of the MSA;
     The assessment of any arrears on municipal taxes and service charges;
     To report on whether the municipality or entity has met its statutory commitments, including the payment of taxes, levies, audit fees, and contributions for pension and medical aid funds.
     The assessment of municipality’s performance against measurable performance objectives for revenue collection from each revenue source and for each vote in the municipality’s approved budget;
     The particulars of corrective action taken or to be taken on issues raised in audit reports;Report of the Audit Committee & Recommendations 2019/2020;
     The explanations to clarify issues on financial statements;
     Other reporting requirements in terms of other legislation;
     Any other information determined by the municipality/entity including recommendations made by the audit committee and any other information as may be prescribed.

    Other Areas To Be Addressed;

    Other issues to be regarded;
     The review of the 2019/2020 operational year;
     Governance;
     Service Delivery Performance
    - Functional Area Service Delivery Reporting Per Business Unit
    - Infrastructure Services;
    - Economic Development;
    - Community & Social Development;
    - Financial Services
    - Corporate Services; and
    - Financial Performance
     Ensure the incorporation of;
    - MIG & Other Grants for Capital Projects & Wards;
    - Financial Declaration of Councillors & Municipal Staff.
     Service Delivery Budget & Implementation Plan 2019/2020 Financial Year

    LEGISLATIVE REQUIREMENTS

    The following legislative requirements were considered during the review process.

     The Constitution (1996);
     Local Government: Municipal Structures Act (1998) (MSA);
     Local Government: Municipal Systems Act (2000), (MSA);
     Local Government: Municipal Planning and Performance Regulations (2001);
     Local Government: Municipal Finance Management Act (2003) (MFMA);
     Local Government: Municipal Systems Amendment Act (2003);
     Local Government: Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers (2006);
     MFMA Circular 11 (Annual Report Guidelines);
     MFMA Circular 13 (SDBIP);
     MFMA Circular 32 (Oversight Report);
     Municipal Public Accounts Committee Guidelines; and
     Other Legislations.

    Required Experience

     Working under local government sphere
     Development of the Annual Performance report and Annual Report
     Experience in dealing with AG matters in local government.
     Four (4) reference letters of compiling, reviewing and updating Annual Report or Annual Performance Report or Service Delivery Budget Implementation Plan (SDBIP) or Performance Management System from 2015/2016 financial year onwards.
     Methodology of how work will be conducted

    Period of Work

    1. Four (4) weeks from date of inception.