Ekurhuleni receives clean audit for 2018/2019 financial year
“Most instances of irregular, fruitless and wasteful expenditure that were reported in previous years were subjected to an investigation to ensure consequence management is instituted by the City against transgressors.”
The City of Ekurhuleni (CoE) has received appreciation from the auditor-general on its performance in terms of good governance and sound fiscal management.
“This takes place on the backdrop of the auditor-general having recently releasing the consolidated general report on local government audit outcomes for 2018 to 2019,” said Themba Gadebe, CoE spokesperson.
While the City has not moved up from the unqualified report it received in the previous year, it has actively embarked on a process of capacitating its finance unit over the past few years.
This has resulted in a gradual improvement in the quality of financial statements and a reduction in compliance findings, the auditor-general said.
The City achieved the following highlights from the audit:
• CoE achieved an unqualified audit for the financial year 2018/2019.
• CoE received a clean audit on financial statements.
• CoE incurred zero unauthorised, fruitless and wasteful expenditure (for the second consecutive year).
• Irregular expenditure has decreased from R215-million in the previous financial year to R5-m in the 2018/2019 annual review.
• The collection rate stood at 91 per cent for the financial year in review.
• CoE complied with 30-days payment of all invoices.
• Capex expenditure for the year stood at 94.31 per cent.
• Overall grant funding spending for the year is 94 per cent.
• Cash on hand for the year is R3.5-billion.
• CoE performed very well on cost-containment worth R138.6-m for the year under review.
• Management of both water and electricity losses are below national standards.
• CoE achieved a 70 per cent reduction in the number of non-compliance paragraphs recorded in the audit report.
• CoE continues to shoulder the cost of a social package of R4-b per annum.
“Most instances of irregular, fruitless and wasteful expenditure that were reported in previous years were subjected to an investigation to ensure consequence management is instituted by the City against transgressors.”
