With regard to compliance with the IHLM reported that the supply chain management policy was developed and adopted by the Council in July 2007. The Council monitors the policy and exercises their oversight role through monthly, quarterly, half yearly and annual reports. The IHLM added that the bid committee and BTO were established in terms of the MFMA. The latter is headed by the CFO. The IHLM reported that the annual financial statement and Section 71 reports of the MFMA had been submitted to the relevant offices. The IHLM added that the Audit Committee (AC) has been established and is fully functional. The IHLM submitted that the Internal Audit function is shared the with O.R. Tambo District Municipality.