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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 12 : Financial Reporting and Auditing

129. Oversight reports on annual reports


(1) The council of a municipality must consider the annual report of the municipality and of any municipal entity under the municipality's sole or shared control, and by no later than two months from the date on which the annual report was tabled in the council in terms of section 127, adopt an oversight report containing the council's comments on the annual report, which must include a statement whether the council—
(a) has approved the annual report with or without reservations;
(b) has rejected the annual report; or
(c) has referred the annual report back for revision of those components that can be revised.


(2) The accounting officer must—
(a) attend council and council committee meetings where the annual report is discussed, for the purpose of responding to questions concerning the report; and
(b) submit copies of the minutes of those meetings to the Auditor-General, the relevant provincial treasury and the provincial department responsible tor local government in the province.


(3) The accounting officer must in accordance with section 21A of the Municipal Systems Act make public an oversight report referred to in subsection (1) within seven days of its adoption.


(4) The National Treasury may issue guidelines on—
(a) the manner in which municipal councils should consider annual reports and conduct public hearings; and
(b) the functioning and composition of any public accounts or oversight committees established by the council to assist it to consider an annual report.


(5) No guidelines issued in terms of subsection (4) are binding on a municipal council unless adopted by the council.


(6) This section, with the necessary modifications as the context may require, is also applicable if only components of the annual report were tabled in terms of section 127(3).