Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 12 : Financial Reporting and Auditing126. Submission and auditing of annual financial statements |
| (1) | The accounting officer of a municipality— |
| (a) | must prepare the annual financial statements of the municipality and, within two months after the end of the financial year to which those statements relate, submit the statements to the Auditor-General for auditing; and |
| (b) | must in addition, in the case of a municipality referred to in section 122(2), prepare consolidated annual financial statements in terms of that section and within three months after the end of the financial year to which those statements relate, submit the statements to the Auditor-General for auditing. |
| (2) | The accounting officer of a municipal entity must prepare the annual financial statements of the entity and, within two months after the end of the financial year to which those statements relate, submit the statements to— |
| (a) | the parent municipality of the entity; and |
| (b) | the Auditor-General, for auditing. |
| (3) | The Auditor-General must— |
| (a) | audit those financial statements; and |
| (b) | submit an audit report on those statements to the accounting officer of the municipality or entity within three months of receipt of the statements. |
| (4) | If the Auditor-General is unable to complete an audit within three months of receiving the financial statements from an accounting officer, the Auditor-General must promptly submit a report outlining the reasons for the delay to the relevant municipality or municipal entity and to the relevant provincial legislature and Parliament. |
| (5) | Once the Auditor-General has submitted an audit report to the accounting officer, no person other than the Auditor-General may alter the audit report or the financial statements to which the audit report relates. |