3.2 The Inkwanca Local Municipality The Inkwanca Local Municipality (ILM) reported that, for the 2009/10 financial year its total capital budget was R6 million and the operating budget was R27 million. Personnel costs for the same financial year were R13.2 million. The ILM reported that it spent all funds allocated through grants except for a variance of R675 215 for the financial management grant. However, the ILM said that the funds are committed but are yet to be claimed. The ILM presented that a Budget and Treasury Office (BTO) exists and is headed by the Chief Financial Office who is supported by three accountants who are responsible for revenue, expenditure, budget and reporting. The ILM reported that some of the section 71 reports of the MFMA were submitted on time, however others were submitted after the due date. The ILM reported that it is 100 per cent capital grant dependant and 73 per cent operational grant dependant. The ILM further reported that 49 per cent of the operational budget went to salaries.