2011/2012 municipal audit outcomes
04 March 2013
The Department of Co-operative Governance and Traditional Affairs acknowledges the 2011/2012 municipal audit outcomes from the Auditor General. Only two municipalities managed to achieve clean audits and they are Ehlanzeni District Municipality and Steve Tshwete Local Municipality. 5 municipalities received unqualified audit opinions, 7 qualified audit opinions, 5 disclaimer opinions and 2 municipalities submitted late therefore their opinions are still outstanding. The department congratulates the two municipalities for their sterling performance in ensuring that they utilise finances responsibly and in a transparent manner. The two municipalities, Ehlanzeni and Steve Tshwete have been consistent in their outstanding performance over the past three years.
The department is not pleased with the fact that some municipalities’ performance has dropped from the two previous financial years.
Among issues raised in the audit outcomes in municipalities that received qualified and disclaimer audit opinions are challenges with supply chain management, asset management and compilation of interim Annual Financial Statements. Some of these municipalities have also failed to implement the Audit Remedial Action Plans that have been adopted by Councils to address challenges in raised previous financial years’ audit outcomes. Despite the assistance given to some municipalities by the Department and Provincial Treasury there has been no improvement in the audit outcomes.
As part of trying to address the challenges faced by municipalities the Director General of the Province, Dr Nonhlanhla Mkhize and HOD for COGTA, Mr David Mahlobo convened a meeting with the affected municipalities. Accounting Officers of these municipalities were advised to improve on their performance or face consequences. All municipalities that received qualified and disclaimer audit outcomes were assessed by COGTA. Remedial action plans have been developed for individual municipalities to address issues raised in the audit outcomes.
Contact Person:
Simphiwe Kunene
Cell: 082 413 3931
Issued by the Department of Co-operative Governance and Traditional Affairs
