Statutory Reporting
Section 66 Loan Disclosure Compliance
Disclosure of long-term debt and loan particulars as required by MFMA Section 66, by entity and instrument.
Why Section 66 disclosure underpins debt transparency
MFMA Section 66 requires the accounting officer to report particulars of all long-term debt and borrowing, ensuring that the true debt position is transparent to council and the AGSA. Incomplete loan disclosure undermines the credibility of the financial statements and can mask unsustainable borrowing. AuditPro Core tracks long-term debt and loan particulars by entity and instrument so the Section 66 disclosure is complete and accurate.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Total long-term debt
R 4.2 bn
Loans disclosed
96%
▲ 3 pts
Undisclosed instruments
5
Section 66 breach
Covenant breaches
3
Debt by instrument and disclosure status (R m)
Loan disclosure exceptions
| Entity | Instrument | Balance | Issue |
|---|---|---|---|
| Matjhabeng Local | Bank term loan | R 60.0 m | Not disclosed |
| Newcastle Local | Finance lease | R 40.0 m | Terms omitted |
| Eskom Distribution | DBSA loan | R 820.0 m | Covenant breach |
| Polokwane Mun | Bond | R 1.1 bn | Compliant |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Completeness is the disclosure goal
Every long-term borrowing must be captured, including instruments arranged through entities or development finance institutions. An omitted facility understates the debt position and is a misstatement.
Particulars matter, not just balances
Section 66 expects details such as terms, interest, security and repayment profile, not merely outstanding balances. These particulars let oversight assess affordability and risk.
Borrowing must be lawful
Long-term debt may only be incurred for capital purposes under the conditions the MFMA sets. Disclosure also serves to confirm that the borrowing itself was compliant.
How AuditPro Core Bridges the Gap
- Instrument register: AuditPro Core records each loan by entity with its terms, security and repayment profile.
- Completeness reconciliation: disclosed debt is reconciled to the ledger and treasury records to catch omissions.
- Compliance flags: borrowings are checked against MFMA conditions such as capital-purpose use.
- Audit-ready export: the register supports the Section 66 note and the AGSA file.
Key Takeaways
- Capture every long-term borrowing, including via entities.
- Disclose terms and security, not just outstanding balances.
- Confirm borrowing was for lawful capital purposes.
- Reconciliation to the ledger ensures disclosure completeness.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.