MEC's Masuku and Phosa visit communities with poor audit outcomes for the 2010/11 Financial Year
30 July 2012
The MEC for Co-operative Governance and Traditional Affairs (CoGTA) Madala Masuku and the MEC for Finance Pinky Phosa have embarked on a programme to visit all the municipalities that obtained a disclaimer or qualified audit opinion for the 2010/11 financial year.
The visits are part of the hands-on programme that CoGTA and Provincial Treasury is steering to support the 10 municipalities that either received a disclaimer or a qualified audit outcomes to move towards clean audit status.
The two MECs visited the Dipaleseng and Lekwa Local municipalities. The visit enabled the MECs to assess the progress that is being made by these municipalities in implementing the plans of action that were developed to deal with issues raised by the Auditor General.
Part of the information required from these municipalities was for them to show what support they require to turn the situation around. A support framework has been developed in identified areas and remedial action plans instituted to assist the municipalities.
National Treasury has already deployed financial experts to all the affected municipalities.
These municipalities Dipaleseng, Emalahleni, Thambisile Hani, Chief Albert Luthuli, Dr JS Moroka, Lekwa, Mkhondo, Dr Pixely Ka Isaka Seme and Umjindi have already had support teams deployed to them to obtain information in order to ensure effective implementation of remedial actions.
MEC Masuku indicated that he is satisfied that municipalities are taking the matters raised by the Auditor General seriously. “Progress has been made in terms of dealing with the some of the critical issues such as the compilation of their Annual Financial Statements, the correct filing of records, internal control deficiencies, non-compliance to supply chain management and the compilation and reconciliation of their asset register. The necessary year end procedures have been put in place” said Masuku.
He added that in the next audit outcomes he is expecting an improvement from these municipalities.
“The record improvement by our municipalities in paying their creditors within 30 days of delivery of services, from 49.2% on 31 March 2011 to 77.3% at the end of March 2012, should be replicated in the forth audit processes to steer us towards attaining clean audit outcomes by all public institutions in the Province in 2014” , said MEC Phosa.
A team from CoGTA and Provincial Treasury will be monitoring these municipalities very closely and providing them with hands-on support. The visits will continue to the other municipalities.
- Simphiwe Kunene
- Letshela Jonas
Issued by the Department of Co-operative Governance and Traditional Affairs