The Auditor-General identified four (4) major risk areas for the WTE, namely: . Revenue management: . Inaccurate billing systems, as not all consumptive customers had installed meter readings; . Completeness of customers' database and accuracy thereof was questioned ; . The billing system for a number of customers reflected a manual form of control rather than an electronic one and as a result numerous billing errors occurred; . Suspense accounts were not cleared on time. Existence of debtors due to the absence of effective controls to ensure all debtor information were up-to-date; and . Backlogs existed in the processing of water licences. The absence of effective controls to ensure that applications were monitored and tracked until completion phase was not recorded. Validity of billing due to the absence of effective controls to ensure that the cancelled and closed accounts were not billed. . Supply Chain Management: The challenges identified were similar to those identified for the MEA. . Construction Assets: The revaluation cycle was currently ten years which was far more than industry norm and as a result there might be significant variances between the fair value and the book value of assets. The WTE constructed assets based on actual costs and did not use a standard costing system to identify abnormal deficiencies which should not form part of the actual costs. As a result the value of the constructed asset would be inflated with inefficiencies and might be substantially more than the value of the same asset constructed in the private sector. . Audit of information: The challenges identified were similar to those identified for the MEA. For example, the indicators used to measure construction were not reliable as they were based on expenditure versus budget. For example, if 90% of the funds were spent it did not mean that 90% of the construction was done. That would need to be reviewed. Departmental risks as identified by the National Treasury