Municipalities & Municipal Entities

Every organisation requires accurate and timely information, to communicate pertinent facts. We don’t just offer an opinion, but see ourselves as a strategic partner to your unique business processes. The measure of our quality is evident in the approach that we apply to all the assignments undertaken, and is reflected in our service offerings below:

Performance Management

Performance management is of paramount importance to any organisation, more specifically municipalities. If the Municipality does not have these management tools in place, it could be at risk of comprising service delivery crucial to communities that they serve. At Startegic Audit Techniques Incorporated we pride ourselves in ensuring that accountability in terms of strategic objectives of the municipality are always maintained. Therefore the Service Delivery and Budget Implementation Plans are our area of expertises.

Annual financial statements

The MFMA requires municipalities to prepare and submit their annual financial statements for auditing within two months of the financial year end. The main contributing factors for non-compliance with the MFMA are the lack of capacity, staff constraints, and the implementation of Generally Recognised Accounting Practice (GRAP). Our software is specifically designed to ensure that compliance with current legislation and Accounting Standards are maintained, whilst the software has the capability to manage and update disclosure contents for GRAP and MFMA. We also provide resources to assist and capacitate municipal staff with the preparation of the Annual Financial Statements.

Audit Readiness Programme

Our audit readiness programme has been uniquely aligned to the requirements of MFMA Circular 50 – the Municipal Audit Evidence File. This programme was compiled by our valued resources that have serviced the Office of the Auditor General and are familiar with the necessary requirements.

Asset Management

Our powerful, yet easy to operate modular asset management system, manages assets from initial purchase through to disposal, and is termed the “cradle to grave” asset management system. The system is GRAP compliant, and combines highly detailed recording and reporting, essential for control, management and financial planning of assets. .We also provide resources to assist and capacitate municipal staff, with compilation of fixed assets registers, asset counts, revaluations and useful life estimations.

Compliance audits

With the implementation of the MFMA, and its 16 priorities, regulations and guidelines, it is imperative that the financial management systems and mechanisms of both municipalities and municipal entities are reviewed and amended periodically. This will enable municipalities to keep abreast with changes in legislation.

We have considerable knowledge of the following legislation and its amendments, and can therefore perform compliance audits, training and advisory services:

  • Broad Based Black Economic Empowerment Act, No.53 of 2000.
  • Local Government: Municipal Property Rates Act, 2004.
  • Local Government: Municipal Structures Act, No.117 of 1998.
  • Municipal Finance Management Act, No. 56 of 2003.
  • Municipal Investment and Municipal Public-Private Partnership Regulations: Gazette No. 27431, 01 April 2005.
  • Municipal Planning and Performance Management Regulations, 2001.
  • Municipal Structures Act.
  • Municipal Supply Chain Regulations: Gazette No. 27636, May 2005.
  • Municipal Systems Act No. 32 of 2000.
  • Preferential Procurement Act, 2001.
  • Preferential Procurement Policy Framework Act, No.5 of 2000.
  • Promotion of Access to Information Act, No.2 of 2000.
  • Standard Operating Procedures and Best Practice.
  • Treasury Regulations, 2005.


Annual Municipal Budgets

Section 24 of the MFMA requires a municipal council to approve its annual budget before the commencement of its budget year. Furthermore MFMA circular 48 requires that such budgets be prepared in the prescribed format. However, constraints such as skills and staff shortages hamper municipalities from meeting these legislative requirements. We can assist and capacitate municipal staff with the preparation of the annual budget and related budget policies.

Policies and Procedure Manuals

Adequate policies and procedure manuals form the backbone of any organisation, both operationally and strategically. These policies and procedures must be continuously updated to ensure compliance with current legislation and amendments. We can assist with the review and development of policies and procedure manuals that best suit the environment of the municipality whilst ensuring compliance with legislation. Our

services further extend to the training and “knowledge sharing” of legislation and best practice methods by means of workshops and “one-on-one” interaction with officials and councillors of the municipality.