The AG informed the Committees that key issues, on leadership, that need attention and contributed to these audit opinion are: instability and lack of commitment in administrative leadership in municipalities; the correct style of leadership (attitude towards the control environment) is not displayed; and, in most municipalities, action plans were neither complied not followed through and monitored in order to address financial challenges. With regard to financial management, AG reported that there was lack of knowledge and understanding of General Recognized Accounting Practices (GRAP); monthly management information was neither credible nor prepared; accounting functions such as the reconciliation of key control accounts were not performed. With regard to governance, the AG reported that the Audit and Internal Audit Committees were not effective; risk assessment and fraud prevention plans were not in place nor adhered to; and there was insufficient monthly oversight by the councils.