Dear Munsoft Client,
Munsoft would like to draw your attention to the MFMA Exemption released on 05 August which grant a 2-month extension to the deadlines of Section 126(1) and (2), 127(1) and (2), 129(1) and 133(2) of the MFMA 2003 (Act No.56 of 2003).
Munsoft urges all clients to use this 2-month opportunity wisely to prepare thoroughly for the best possible Audit outcome during these trying times mainly due to Covid-19.
Some factors the Municipality could consider during the extension period to enhance Financial statement quality are:
- Aim to have the preparations of Financial statements complete per normal deadlines prior to the MFMA Extension granted.
- Each Municipal department head to initiate a full review of balances and transactions for each department and implement relevant corrective measures during the extension period.
- Municipality Management is urged to initiate Financial Statement review prior to submission with Provincial Treasury, Department of Cooperative Governance and Traditional Affairs and Audit Committee. This would greatly increase the opportunity to identify improvement areas prior to submission for Audit purposes per the 2-month MFMA extension period granted.
- The municipality should consider the effect of the extension on the new timelines when the Audit General will perform its audit procedures. There is a high probability that these audit timelines could run into the December holidays or even the preparation times for the Adjustment budget period during February 2021 and Draft budget preparations for 2022 which should be considered.
Click here to download the complete PDF version of the below document:
MFMA Exemption 5 August 2020
For any queries or further assistance please contact your respective Service Delivery Manager (SDM).
This e-mail was sent to the Municipal Manager and CFO, Budget Officer, Finance Manager, and mSCOA Champ, of all Munsoft Municipalities. If you have received this e-mail, do share internally at your Municipality with other relevant staff members.