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DA-run City of Cape Town the only metro with a clean audit

The Auditor-General has lauded the City of Cape Town as it is the only metropolitan municipality that achieved a clean audit in the 2022/2023 financial year.

Auditor-General Tsakani Maluleke presented the consolidated general report on local government audit outcomes on Tuesday, 27 August.

CITY OF CAPE TOWN ACHIEVES ANOTHER CLEAN AUDIT

Outcomes of the municipalities (including those finalised after 31 March 2024) are as follows:
•    34 clean audits
•    110 unqualified with findings 
•    90 qualified with findings
•    Six adverse findings
•    14 disclaimed with findings
•    Three outstanding audits

Maluleke said while 45 municipalities have improved their audit outcomes since 2020-21 [which was the last year of the previous administration’s term], 36 have regressed.

The Auditor-General lamented that poor financial stability and controls directly impact the lives of communities living in municipalities.

“Wasted money and resources means reduced funding for service delivery priorities and, eventually, a greater burden on taxpayers. The lack of credible reporting on performance and finances weakens municipal accountability processes and the council’s ability to assess the municipality’s performance or make decisions in response to underachievement.

“These continuing failures in the most critical part of municipal operations are not receiving the necessary attention from the elected leadership,” she said.

However, not all is lost as Maluleke also revealed that 18 municipalities, mostly in KwaZulu-Natal, Mpumalanga and North West improved as they did not received disclaimed audit opinions during the current administration. 

City of Cape Town Mayoral Committee Member for Finance, Councillor Siseko Mbandezi said they are proud to have a clean audit, but to be the only metro in South Africa to get a clean audit is a real concern.

Mbandezi said that this recognition means that public money earmarked for service delivery is spent correctly, transparently, and within all the requirements of the legislation governing public spending. The residents ultimately win when the government performs well.

WHAT CHARACTERISES A CLEAN AUDIT?

According to the Auditor-General, clean audits are generally characterised by:

  • Sound financial and performance management disciplines and performing their functions in accordance with applicable legislation.
  • Well-managed projects, enabling prompt identification and rectification of deficiencies to adhere to timelines, budgets and quality standards.
  • A well-functioning control environment and good systems that are present at these municipalities.

WHAT DO YOU THINK HINDERS MAJORITY OF SA MUNICIPALITIES FROM ACHIEVEING CLEAN AUDITS?

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