Directorate: Local Government Accounting Ms. Lusanda Ngxonono. Reference: T7/2/7 TREASURY CIRCULAR MUN NO 26/2012



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Directorate: Local Government Accounting Ms. Lusanda Ngxonono Lusanda.Ngxonono@pgwc.gov.za T: +27 21 483 6684 F: +27 21 483 4558 Reference: T7/2/7 TREASURY CIRCULAR MUN NO 26/2012 THE MAYOR, CITY OF CAPE TOWN: MS P DE LILLE THE MAYOR, WEST COAST DISTRICT MUNICIPALITY: MR JH CLEOPHAS THE MAYOR, MATZIKAMA MUNICIPALITY: MR J BOCK THE MAYOR, CEDERBERG MUNICIPALITY: MR J WHITE THE MAYOR, BERGRIVIER MUNICIPALITY: MR EB MANUEL THE MAYOR, SALDANHA BAY MUNICIPALITY: MS R JAGER THE MAYOR, SWARTLAND MUNICIPALITY: MR T VAN ESSEN THE MAYOR, CAPE WINELANDS DISTRICT MUNICIPALITY: MR N DE BRUYN THE MAYOR, WITZENBERG MUNICIPALITY: MR S LOUW THE MAYOR, DRAKENSTEIN MUNICIPALITY: MS G VAN DEVENTER THE MAYOR, STELLENBOSCH MUNICIPALITY: ALDERMAN CJ SIDEGO THE MAYOR, BREEDE VALLEY MUNICIPALITY: MR BD KIVEDO THE MAYOR, LANGEBERG MUNICIPALITY: MS D GAGIANO THE MAYOR, OVERBERG DISTRICT MUNICIPALITY: MR L DE BRUYN THE MAYOR, THEEWATERSKLOOF MUNICIPALITY: MR CB PUNT THE MAYOR, OVERSTRAND MUNICIPALITY: MS N BOTHA-GUTHRIE THE MAYOR, CAPE AGULHAS MUNICIPALITY: MR R MITCHELL THE MAYOR, SWELLENDAM MUNICIPALITY: COUNCILLOR N MYBURGH THE MAYOR, EDEN DISTRICT MUNICIPALITY: MR V VAN DER WESTHUISEN THE MAYOR, KANNALAND MUNICIPALITY: MR J DONSON THE MAYOR, HESSEQUA MUNICIPALITY: MR E NEL THE MAYOR, MOSSEL BAY MUNICIPALITY: MR M FERREIRA THE MAYOR, GEORGE MUNICIPALITY: MR C STANDERS THE MAYOR, OUDTSHOORN MUNICIPALITY: MR G APRIL THE MAYOR, BITOU MUNICIPALITY: MR M BOOYSEN THE MAYOR, KNYSNA MUNICIPALITY: MS J WOLMARANS THE MAYOR, CENTRAL KAROO DISTRICT MUNICIPALITY: MR E NJADU THE MAYOR, LAINGSBURG MUNICIPALITY: MR W THERON THE MAYOR, PRINCE ALBERT MUNICIPALITY: MR G LOTTERING THE MAYOR, BEAUFORT WEST MUNICIPALITY: MR HD PRINCE THE MUNICIPAL MANAGER, CITY OF CAPE TOWN: MR A EBRAHIM THE MUNICIPAL MANAGER, WEST COAST DISTRICT MUNICIPALITY: MR H PRINS THE MUNICIPAL MANAGER, MATZIKAMA MUNICIPALITY: MR DG O NEILL THE MUNICIPAL MANAGER, CEDERBERG MUNICIPALITY: MR I KENNED THE MUNICIPAL MANAGER, BERGRIVIER MUNICIPALITY: MS C LIEBENBERG THE MUNICIPAL MANAGER, SALDANHA BAY MUNICIPALITY: MR L SCHEEPERS THE MUNICIPAL MANAGER, SWARTLAND MUNICIPALITY: MR J SCHOLTZ THE MUNICIPAL MANAGER, CAPE WINELANDS DISTRICT MUNICIPALITY: MR M MGAJO THE MUNICIPAL MANAGER, WITZENBERG MUNICIPALITY: MR D NASSON THE MUNICIPAL MANAGER, DRAKENSTEIN MUNICIPALITY: MR J METTLER THE MUNICIPAL MANAGER, STELLENBOSCH MUNICIPALITY: MR D BERETTI(Acting) THE MUNICIPAL MANAGER, BREEDE VALLEY MUNICIPALITY: MR G MATTHYSE THE MUNICIPAL MANAGER, LANGEBERG MUNICIPALITY: MR SA MOKWENI THE MUNICIPAL MANAGER, OVERBERG DISTRICT MUNICIPALITY: MR MP DU PLESSIS THE MUNICIPAL MANAGER, THEEWATERSKLOOF MUNICIPALITY: MR HD WALLACE THE MUNICIPAL MANAGER, OVERSTRAND MUNICIPALITY: MR C GROENEWALD THE MUNICIPAL MANAGER, CAPE AGULHAS MUNICIPALITY: MR R STEVENS THE MUNICIPAL MANAGER, SWELLENDAM MUNICIPALITY: MR N NEL THE MUNICIPAL MANAGER, EDEN DISTRICT MUNICIPALITY: MR GW LOUW THE MUNICIPAL MANAGER, KANNALAND MUNICIPALITY: MR M HOOGBAARD THE MUNICIPAL MANAGER, HESSEQUA MUNICIPALITY: MR J JACOBS THE MUNICIPAL MANAGER, MOSSEL BAY MUNICIPALITY: DR M GRATZ www.westerncape.gov.za

THE MUNICIPAL MANAGER, GEORGE MUNICIPALITY: MR T BOTHA THE MUNICIPAL MANAGER, OUDTSHOORN MUNICIPALITY: MR T MNYIMBA THE MUNICIPAL MANAGER, BITOU MUNICIPALITY: MR T GILIOMEE (Acting) THE MUNICIPAL MANAGER, KNYSNA MUNICIPALITY: MS L WARING (Acting) THE MUNICIPAL MANAGER, CENTRAL KAROO DISTRICT MUNICIPALITY: MR S JOOSTE (Acting) THE MUNICIPAL MANAGER, LAINGSBURG MUNICIPALITY: MR P WILLIAMS THE MUNICIPAL MANAGER, PRINCE ALBERT MUNICIPALITY: MR H METTLER THE MUNICIPAL MANAGER, BEAUFORT WEST MUNICIPALITY: MR J BOOYSEN THE CHIEF FINANCIAL OFFICER, CITY OF CAPE TOWN: MR K JACOBY THE CHIEF FINANCIAL OFFICER, WEST COAST DISTRICT MUNICIPALITY: MR J KOEKEMOER THE CHIEF FINANCIAL OFFICER, MATZIKAMA MUNICIPALITY: MR C KOTSE THE CHIEF FINANCIAL OFFICER, CEDERBERG MUNICIPALITY: MR E ALFRED THE CHIEF FINANCIAL OFFICER, BERGRIVIER MUNICIPALITY: MR JA VAN NIEKERK THE CHIEF FINANCIAL OFFICER, SALDANHA BAY MUNICIPALITY: MR S VORSTER THE CHIEF FINANCIAL OFFICER, SWARTLAND MUNICIPALITY: MR K COOPER THE CHIEF FINANCIAL OFFICER, CAPE WINELANDS DISTRICT MUNICIPALITY: MR JG MARAIS THE CHIEF FINANCIAL OFFICER, WITZENBERG MUNICIPALITY: MR R ESAU THE CHIEF FINANCIAL OFFICER, DRAKENSTEIN MUNICIPALITY: MR J CARSTENS THE CHIEF FINANCIAL OFFICER, STELLENBOSCH MUNICIPALITY: MR M BOLTON THE CHIEF FINANCIAL OFFICER, BREEDE VALLEY MUNICIPALITY: MR D McTHOMAS THE CHIEF FINANCIAL OFFICER, LANGEBERG MUNICIPALITY: MR CF HOFFMANN THE CHIEF FINANCIAL OFFICER, OVERBERG DISTRICT MUNICIPALITY: MR J SNYMAN ( Acting) THE CHIEF FINANCIAL OFFICER, THEEWATERSKLOOF MUNICIPALITY: MR S JACOBS THE CHIEF FINANCIAL OFFICER, OVERSTRAND MUNICIPALITY: MR H KLEINLOOG THE CHIEF FINANCIAL OFFICER, CAPE AGULHAS MUNICIPALITY: MR H SCHLEBUSCH THE CHIEF FINANCIAL OFFICER, SWELLENDAM MUNICIPALITY: MR J KRAPOHL THE CHIEF FINANCIAL OFFICER, EDEN DISTRICT MUNICIPALITY: MS L HOEK (Acting) THE CHIEF FINANCIAL OFFICER, KANNALAND MUNICIPALITY: MR N DELO THE CHIEF FINANCIAL OFFICER, HESSEQUA MUNICIPALITY: MS HJ VILJOEN THE CHIEF FINANCIAL OFFICER, MOSSEL BAY MUNICIPALITY: MR HF BOTHA THE CHIEF FINANCIAL OFFICER, GEORGE MUNICIPALITY: MR M CUPIDO (Acting) THE CHIEF FINANCIAL OFFICER, OUDTSHOORN MUNICIPALITY: MR D LOTT THE CHIEF FINANCIAL OFFICER, BITOU MUNICIPALITY: MR A BREDENHANN (Acting) THE CHIEF FINANCIAL OFFICER, KNYSNA MUNICIPALITY: MR G EASTON THE CHIEF FINANCIAL OFFICER, CENTRAL KAROO DISTRICT MUNICIPALITY: MR CJ KYMDELL THE CHIEF FINANCIAL OFFICER, LAINGSBURG MUNICIPALITY: MS A GROENEWALD THE CHIEF FINANCIAL OFFICER, PRINCE ALBERT MUNICIPALITY: MR J NEETHLING (Acting) THE CHIEF FINANCIAL OFFICER, BEAUFORT WEST MUNICIPALITY: MR D LOUW THE HEAD OFFICIAL: PROVINCIAL TREASURY (DR JC STEGMANN) THE HEAD: BRANCH FISCAL AND ECONOMIC SERVICES (MR H MALILA) THE HEAD: BRANCH GOVERNANCE AND ASSET MANAGEMENT (VACANT) THE HEAD: PUBLIC POLICY SERVICES (MR A PHILLIPS) THE HEAD: PUBLIC FINANCE (MS JD GANTANA) THE HEAD: LOCAL GOVERNMENT FINANCE (MR TC ARENDSE) THE HEAD: FINANCIAL GOVERNANCE (MR A HARDIEN) THE HEAD: ASSET MANAGEMENT (MR I SMITH) THE CHIEF FINANCIAL OFFICER (MR A GILDENHUYS) THE SENIOR MANAGER: ACCOUNTING SERVICES: PROVINCIAL GOVERNMENT (MR A REDDY) THE SENIOR MANAGER: ACCOUNTING SERVICES: LOCAL GOVERNMENT (MS L NGXONONO) THE SENIOR MANAGER: CORPORATE GOVERNANCE (MR B VINK) THE SENIOR MANAGER: BUDGET MANAGEMENT: PROVINCIAL GOVERNMENT (MS M SHERATON-KORSTEN) THE SENIOR MANAGER: BUDGET MANAGEMENT: LOCAL GOVERNMENT (MR ML BOOYSEN) THE SENIOR MANAGER: PROVINCIAL GOVERNMENT FINANCE (MS A PICK) THE SENIOR MANAGER: LOCAL GOVERNMENT FINANCE (GROUP ONE) (MR F SABBAT) THE SENIOR MANAGER: LOCAL GOVERNMENT FINANCE (GROUP TWO) (MR M SIGABI) THE SENIOR MANAGER: PUBLIC FINANCE POLICY RESEARCH AND MODELLING (MS C HORTON) THE SENIOR MANAGER: IMMOVEABLE ASSET MANAGEMENT (MR NB LANGENHOVEN) THE SENIOR MANAGER: MOVEABLE ASSET MANAGEMENT (MS N EBRAHIM) THE SENIOR MANAGER: SUPPORTING AND INTERLINKED FINANCIAL SYSTEMS (MR A BASTIAANSE) THE SENIOR MANAGER: STRATEGIC AND OPERATIONAL MANAGEMENT SUPPORT (MS A SMIT) THE SENIOR MANAGER: BUSINESS INFORMATION AND DATA MANAGEMENT (MR P PIENAAR)

THE HEAD: OFFICE OF THE FINANCE MINISTRY (MS T EVANS) THE PROVINCIAL AUDITOR MASTER RECORDS OFFICIAL: FINANCIAL MANAGEMENT THE HEAD OF DEPARTMENT: LOCAL GOVERNMENT THE CHIEF DIRECTOR: LOCAL GOVERNMENT BUDGET ANALYSIS - NATIONAL TREASURY (MR J HATTINGH) THE CHIEF DIRECTOR: MFMA IMPLEMENTATION NATIONAL TREASURY (MR TV PILLAY) FINANCIAL GOVERNANCE HELPDESK Purpose 1. To inform the municipalities and municipal entities about the availability of the Financial Governance Helpdesk, via the pthelpme@pgwc.gov.za email address. 2. To provide clarity regarding the costs or billing associated with the AGSA Quarterly Key Control visits to municipalities and municipal entities. 1. Objectives of the Financial Governance Helpdesk The primary objective of the FG Helpdesk is to improve the oversight and control over financial governance queries received and addressed in terms of quality and standards. This will ensure that effective and efficient guidance is provided to municipalities and municipal entities in an enabling environment for developing capacity. 1.1 Short term objectives 1.1.1 Creating a structured approach towards addressing enquiries. 1.1.2 Providing quick and direct access to information and guidance on financial governance issues. 1.1.3 Monitoring progress made on queries received. 1.1.4 Ensuring effective capacitation of municipalities and municipal entities officials. 1.1.5 Ensuring that feedback is managed to ensure validity, accuracy, consistency and clarity. 1.1.6 To enhance communication with municipalities and municipal entities. 1.1.7 To manage lead times effectively to ensure timeous and accurate responses. 1.1.8 To create a database of enquiries lodged and responses provided.

1.1.9 To provide a basis for a set of FAQs. 1.2 Long term objectives 1.2.1 To provide a helpdesk function with enhanced functionalities. 1.2.2 To extend support from a dedicated helpdesk function. 1.2.3 To expand and improve access to the helpdesk function. 1.3 Procedure for the submission of queries to the Helpdesk 1.3.1 Municipalities and their respective entities need to investigate, analyse and discuss issues internally before submitting a query to the helpdesk. 1.3.2 The query form must be completed in full (see annexure A) and must be reviewed and signed by the CFO. 1.3.3 Attach the query form to the email directed to pthelpme@pgwc.gov.za. 1.3.4 On receipt of the email the responsible Senior Manager in Financial Governance will acknowledge receipt and issue a reference number with a proposed response date. 1.3.5 All responses to queries will be sanctioned by the relevant Senior Manager before forwarding the response to the enquirer. 1.3.6 All complaints by municipalities in respect of queries raised should be directed through pthelpme@pgwc.gov.za for the attention of the (Provincial Accountant General) (PAG), quoting the reference number. 1.3.7 The PAG will play an oversight role on the quality and timeliness of responses. 1.4 Categorisation of Queries 1.4.1 On receipt of the query the responsible Senior Manager in Financial Governance will assess the query received and determine its priority in terms of the framework provided below: Low Operational issues that can be answered via the helpdesk within 24 hours. Medium Queries that require research will be answered formally through a PT letter, signed by the relevant Senior Manager in Financial Governance and forwarded to the enquirer via the helpdesk within 5 working days.

High Queries that require extensive research and consultation with other role players will be answered formally through a PT letter, signed by the PAG and forwarded to the enquirer via pthelpme@pgwc.gov.za within 5 to 10 working days. 1.4.2 Queries not covered through this framework: Parliamentary questions. Policy-related issues requiring key provincial policy decisions. All queries falling outside the PT Financial Governance domain. 1.5 Monitoring and Evaluation 1.5.1 The Senior Manager: Local Government Accounting and the Senior Manager: Corporate Governance will be responsible for addressing the respective queries received. The Provincial Accountant General (PAG) will play an oversight role to ensure that all queries are addressed and meet the necessary quality and standards set. 1.5.2 On a weekly basis the PAG will monitor and evaluate progress made with queries received and take steps to ensure that feedback is not delayed. 1.5.3 All enquiries received will be reviewed and feedback will be provided on transversal issues at the respective forum meetings. 1.5.4 Annually a survey will be conducted to determine the effectiveness of the helpdesk function and feedback will be provided at the respective forum meetings. 1.5.5 Analysis will be conducted on the queries raised by municipalities and municipal entities to determine training needs and policy requirements. 1.6 Procedure for the submission of queries to the Helpdesk The query form (Annexure A) must be completed in full and attached to the email directed to pthelpme@pgwc.gov.za.

2. AGSA Quarterly Key Control Visits 2.1 Background AGSA conducts Quarterly Key Control visits in addition to the annual audits. Municipalities requested clarity on whether these key control visits were chargeable or not or whether they formed part of the annual audit fees. 2.2 Clarity obtained from AGSA: Western Cape Office The issue has now been clarified at a meeting between AGSA and the Western Cape Provincial Treasury (PT). The following was confirmed by the AGSA:- There will be no charges or billing the municipalities for the actual time spent by AGSA on the review of the key controls; The AGSA will only recover from the municipalities the subsistence and travelling costs spent on getting to the municipal offices. This is effective from 1 April 2012. Conclusion 1. The municipalities and municipal entities are encouraged to utilise the helpdesk service. 2. The municipalities are also encouraged to take up any charges for key control visits directly with the AGSA. Should the municipality continue to be charged after 1 April 2012, you are asked to kindly notify PT so that it may be addressed appropriately. L. NGXONONO DIRECTOR: LOCAL GOVERNMENT ACCOUNTING DATE: 06 JUNE 2012

PT HELPME QUERY FORM DEPARTMENT/ENTITY NAME OF OFFICIAL EMAIL ADDRESS TELEPHONE NUMBER DATE: MUNICIPALITY/ MUNICIPAL ENTITY CONTACT DETAILS ANNEXURE A ISSUE ISSUE OR PROBLEM STATEMENT PRESCRIPTS/STANDARDS/LEGISLATION CONSULTED PREVIOUS OPINIONS OBTAINED OWN SUGGESTION Query No.: RESPONSE BY CORPORATE GOVERNANCE / LOCAL GOVERNMENT ACCOUNTING Response provided by RESPONSE DATE: FURTHER ACTION REQUIRED (WHAT WHEN AND BY WHOM) DATE FINALISED: