With respect to compliance with the MFMA, the JGDM reported that its supply chain management policy has been revised and was still to be approved by the Council. The JGDM further reported that the three bid committees (Bid Specification, Bid Evaluation, and Bid Adjudication), as required by the MFMA and stipulated in the Supply Chain Regulations, are properly established. The JGDM explained that members of these three bid committees were appointed by the municipal manager. The JGDM reported that the BTO was established in May 2010 and it by the Chief Financial Officer and has three sections namely: Financial Accounting, Income and Expenditure, and System Administration. The annual financial statements of the JGDM were submitted to the Auditor-General.