The Committee was told that, in compliance with the MFMA, all three bid committees are functional but there are capacity constraints with respect to the evaluation committee; the BTO is functional; AFS was submitted to the Auditor-General on time; section 71 reports of the MFMA were submitted on time; Internal Audit unit are shared with the Amathole District Municipality but the arrangement is dysfunctional; the audit committee has been established and is operational with four members, however is not efficient due to the non existence of the Internal Audit; the NXLM is in the process of converting the AFS from Institute of Municipal Finance Officers (IMFO) to GRAP in order to comply with the requirements of Section 122 (3) of the MFMA;