With respect to the MFMA compliance, the CHDM reported that supply chain management policy is in place; the BTO exists and it consists of five sections (Revenue / Income, Expenditure, Financial Reporting and Budget, System administration, and Supply Chain Management). The CHDM reported that AFS was submitted to AG on time, however the section 71 of the MFMA were not submitted on time. The CHDM reported that an Internal Audit and Audit Committee are established and functional and that the former has four people. The CHDM added that the Audit Committee is shared with nine municipalities. The CHDM reported that it has been a challenge to complete annual reports on time due to audit reports not being completed on time. With regard to the Internal Audit unit, the CHDM reported that it is established and functional. However, the CHDM added that certain tasks of internal audit unit are outsourced it shares its resource with local municipalities.