Subject to section 10G(5) of the Local Government Transition Act, 1993, as amended, read with Government Gazette Notice No. 19886 dated 26/03/99, a Municipality may dispense with the calling of tenders.
In respect of any contract which is for the execution of any work or the supply or sale of any goods or materials to the Municipality where:
Except in the case of emergency requisitions, if the Municipal Manager or his/her delegate has reason to believe that insufficient budgetary provision exists to cover the requisition presented to the Store's Section, he/she shall immediately inform the Head of the Cost Centre concerned, who shall forthwith report the matter to the Council for consideration.
The Municipal Manager or his/her delegate shall be responsible for the ordering, custody and issue of receipt forms, tickets, tokens, vouchers of value, and such other stationary as he/she may deem necessary to control;
The Municipal manager or his/her delegate shall submit tenders for goods, materials or services to the Cost Centre concerned, and the Head of that Cost Centre shall recommend the tender or tenders to be accepted.
If the lowest tender is not recommended the reason/s for not doing so shall accompany the recommendation. If the Municipal Manager or his/her delegate does not agree with the reason/s for not accepting the lowest tender, he/she shall send his/her reason/s for disagreement/s to the head of the Cost Centre concerned and include them in his/her report to the Council. This report should include details of the financial provision and vote number to cover the relevant acquisition.
All surplus goods and materials left over on completion of works or the fulfilment of the purpose for which they were issued or goods recovered in the course of covering out works or on hand for any reason what so ever, shall be returned to and recorded by the Chief Financial Officer or his/her delegate without delay. An Advice Note describing such goods and materials shall be furnished to the Treasury Cost Centre in consultation with the Administration Manager concerned. The Municipal Manager or his/her delegate shall in consultation with the head of the Cost Centre concerned, decide on the value, if any, to be credited to the appropriate vote/s.
Plant and Equipment and other good and materials shall be deemed to be redundant or obsolete as approved by the Council, on the recommendation of the Head of the Cost Centre Technical Services. Similarly, in the case of obsolete or redundant stores items, the Municipal manager or his/her delegate shall report to the Council.
Subject to the Local Authorities Ordinance, the amount and value of any surpluses and shortages in stock revealed in stocktaking, shall be reported by the Municipal manager or his/her delegate to the Council, together with reasons for discrepancies. Where the stock is not under his/her control, the Municipal Manager or his/her delegate may require the responsible Head of the Cost Centre to furnish him/her with a set of reason/s. Any adjustments thereafter must be formally authorised by the Council, save and except that the Municipal Manager or his/her delegate, may authorise adjustments in stocks and losses not involving negligence or identifiable theft, provided favourable audit reports are presented in all cases.
The Chief Financial Officer shall at least once each year cause stock to be taken of all stores and other loose property under his/her control. A report on such stocktaking shall be compiled and certified by the persons appointed by the Chief Financial Officer to take stock and such certified report shall be laid before the Council. The report shall indicate:
The Municipal Manager or his/her delegate shall prepare financial statements annually and report thereon to the Council. No revenue collection or accounting system shall be introduced in any Cost Centre and no alteration shall be made to any existing system unless the approval of the Municipal Manager or his/her delegate has first been obtained.
Generally Accepted Municipal Accounting Practice (GAMAP)
Much progress has been made in recent years in defining and introducing GAMAP standards for local government. Only minor changes are now required, except in the case of accounting for fixed assets. Applying accounting principles specifically tailored for Municipalities promotes transparency. It will enable the content and the presentation of financial statement information to be consistent and so enable informed decision making on risk and returns. It is therefore of utmost importance that the Municipal Manager or his/her delegate applies GAMAP in the compiling of the budgets and financial statements of the Municipality as well as the financial systems in use. Internal Audit
The Internal Audit staff of the Council shall perform such duties and conduct such investigations, as may be prescribed by law, or required by the Council, or the Municipal Manager or his/her delegate, and at all times review the systems of internal control and report to the Municipal Manager or his/her delegate upon changes as they are required.
In performing such duties or conducting such investigations, the internal audit staff shall be given access to any Cost Centre records required for the purpose of the audit and a Head of a Cost Centre and every officer thereof shall upon request by the Municipal Manager or his/her delegate supply such information as may be required; and
The Internal Auditor shall report to the Audit Committee on the result of his investigations and unless under obligation by law, or by resolution of the Council, the Audit Committee shall in their discretion submit such reports to the Council. Assets
Each Administration Manager shall be responsible for an annual inventory for furniture, equipment and other movable property under his control showing quantities and values. The Council shall at least once in each year cause stock to be taken of all stores and other loose property under its control. A report on such stocktaking shall be compiled and certified by the persons appointed by the Council to take stock and such certified report shall be laid before the Council. The report shall indicate: