MFLM reported that its annual financial statements for 2008/09 were prepared on Institute of Municipal Finance Officers (IMFO) standards of accounting, and they were submitted to the AG on time. MFLM received a "disclaimer" audit opinion due to a lack of supporting documents, a fixed assets register, debtors database and provision for bad debts, funds created under the IMFO without cash-backing, the non-implementation of risk management (internal control systems, internal audit, audit committee) and, lastly, the non-functional internal audit shared service. MFLM reported that the following steps would be taken to remedy the situation: 1. Drafting of a project plan to convert annual financial statements (AFS) from IMFO to GRAP during the 2009/10 financial year. 2. Appointment of consultants to assist with the proper management of a fixed assets register and debtors database.