The 2012/2013 Municipal entity audit report was presented by the Auditor-General, Kimi Makwetu, on 30 July 2014.
Eastern Cape has two metropolitan municipalities, six district municipalities, 37 local municipalities and 10 municipal entities. Fifty-two auditees (95%) submitted their financial statements (AFS) for the 2012/13 financial year for audit within the prescribed timelines, while Makana, Ngqushwa and Sundays River failed to do so.
Only one of the 55 Eastern Cape entities managed to secure a financially unqualified opinion with no findings – the Mandela Bay Development Agency.
The audit report, produced in terms of the Municipal Finances Management Act no. 56 of 2003, covers the audit outcomes of South Africa’s municipalities and municipal entities, which had a combined total expenditure of R268 billion for the 2012-13 financial year, split as follows:
- Employment cost (including councillor remuneration) – R62 billion
- Goods and services – R166 billion
- Capital expenditure – R40 billion
The annual audits examine the following three areas:
- Fair presentation and absence of material misstatements in financial statements.
- Reliable and credible performance information for purposes of reporting on predetermined performance objectives.
- Compliance with all laws and regulations governing financial matters.
Auditees that received a financially unqualified opinion with no findings are those that have passed the audit test in each of the abovementioned aspects. This is commonly referred to as a ‘clean audit’. Out of the 319 audited institutions comprising 278 municipalities (local, district and metropolitan) as well as 41 municipal entities 30 received a financially unqualified opinion with no findings. This constitutes an overall 9% as compared to the 5% obtained in 2012.
Amongst this year’s 30 ‘clean audits’, 13 sustained this achievement from 2011-12. Auditees in this category have demonstrated impeccable levels of discipline and oversight in their financial management and operational activities. At these auditees, the breakdown of controls is easily detected and corrected timeously. Such environments are characterised by readily available documentation. Most importantly they have accountable managers and leaders who are able to provide explanations and additional evidence in support of the transactions they are reporting on. They also have the support of strong oversight by mayors and councils that back the efforts of municipal managers and chief financial officers.
The 30 Auditees that received a financially unqualified opinion with no findings:
Western Cape (12):
- Swartland – West Coast District
- Theewaters Kloof – Overberg District
- West Coast District
- Witzenberg – Cape Winelands District
- Langeberg – Cape Winelands District
- Breede Valley – Cape Winelands District
- Cape Town International Convention Centre – City of Cape Town Metro
- City of Cape Town Metro
- George – Eden District
- Knysna – Eden District
- Mossel Bay – Eden District
- Overstrand – Overberg District
- Durban Marine Theme Park (Pty) Ltd – eThekwini Metro
- Msinga – uMzinyathei District
- Ntambana – Uthungulu District
- Okhahlamba – uThukela District
- Ubuhlebezwe – Harry Gwala/Sisonk District
- uMhlathuze – Uthungulu District
- uMzimkhulu – Harry Gwala/Sisonk District
- Uthungulu District – Uthungulu District
- Safe City Pietermaritzburg – Umgungundlovu District
- uThungulu House Development Trust – Uthungulu District
- uThungulu Financing Partnership – Uthungulu District
- Sedibeng District – Sedibeng
- Johannesburg Fresh Produce Market – City of Johannesburg Metro
- Johannesburg Social Housing Company – City of Johannesburg Metro
- Ehlanzeni District – Ehlanzeni District
- Steve Tshwete – Nkangala District
Eastern Cape (1):
Northern Cape (1):
- ZF Mgcawu District
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Article source: http://mype.co.za/new/2014/08/percentage-of-clean-audits-rises/