The implementation of the Generally Recognised Accounting Practice (GRAP) standards has also proven to be a challenge to the municipalities. In most cases there seem to be a misunderstanding of the standards. In terms of GRAP an entity shall present a comparison of the budget amounts for which it is held publicly accountable and actual amounts, either as a separate additional financial statements or as additional budget columns in the financial statements currently presented in accordance with SA Standards of GRAP. The standard goes further in prescribing the nature and extent of this disclosure. As this disclosure will form part of the financial statements, it will be subject to audit.