|Key Control |Responsible |Frequency | | |Person | | |Segregation of duties: | | | |Each of the four (4) functions, namely |Chief Financial |By end of | |authorising; executing; custody of |Officer (CFO) |August 2010 | |assets, and recording should be | | | |allocated to four (4) individuals. | | | |Alternatively only the authorising and | | | |executing functions may be allocated to| | | |one (1) individual. | | | |Physical security of assets: | | | |A properly secured filing room/facility|Municipal Manager|Immediately | |where all face value documents and |(MM) | | |records (e.g. payment vouchers) are | | | |properly filed should be available. | | | |Access to the filing room should be | | | |restricted to the assigned individual | | | |who will be responsible for the | | | |receiving, issuing and safe custody of | | | |the documents. | | | |A document register detailing a trail | |Daily | |of valuable documents (audit trail of |Municipal Manager| | |the movement of documents) should be | | | |introduced as a matter of urgency. | | | | | | | | | | | | | | | | | | | | | |Immediately | | | | | | |CFO | | |Supervision and monitoring: | | | |A review of accounts (management) and |Management (All |Reviews: | |supervision of the recording and |section 56 |Monthly | |operations of day-to-day transactions |managers) | | |(supervisors) should be performed and | |Supervision: | |be evident by way of individuals | |Daily | |signatures. | | | | | | | |Comparison and reconciliation: | | | |Frequent and timeous comparison and |CFO |Monthly | |reconciliation should be performed, | | | |e.g.: | | | |Stock and fixed assets (physical) to | | | |records (theoretical) | | | |Clearing of suspense accounts | | | |Electricity distribution losses | | | |Bank and investments records to | | | |external statements, e.g. bank | | | |reconciliations | | | |Records of creditors to supplier | | | |statements | | | |HR system to Finance system | | | |Vat 201 returns with records. | | | |Personnel: | | | |Attention should be given to selection,|Municipal Manager|Ongoing | |training and qualifications of | | | |personnel, as well as personnel | | | |qualities. The quality of any system is| | | |dependent upon the competence and | | | |integrity of those who carry out | | | |control operations. | | | |Performance information: | | | |Ensure that proper processes and |Municipal Manager|By end of | |policies are developed to ensure that | |August 2010 | |information reported is accurate and | | | |complete. | | | |Monitoring and evaluation of | | | |performance reports against output, | | | |indicators, targets and pre-determined | |Quarterly | |objectives as determined in the IDP |Municipal Manager| |