ETHEKWINI Municipality has welcomed the news that, for the first time in history, it has achieved a clean audit report.
The audit report for the 2014/15 financial year, which was released in Pretoria on 1 June by Auditor-General Kimi Makwetu, found that the financial statements for eThekwini Municipality were free of material misstatements. In addition, there was no material of non-compliance with key legislation. The report further found that the City’s performance report was presented in a useful and reliable manner as measured against predetermined objectives in the annual performance plan.
The Municipality has previously received unqualified audit reports.
The report also found that two Municipal entities, namely uShaka Marine World and the Inkosi Albert Luthuli International Convention Centre also received clean audits. These entities also achieved clean audits the previous financial year.
“It is the first time since eThekwini was established in 2000, that a clean audit has been achieved. It is a historic achievement and something to be very proud of. The City has worked hard to protect the public purse and is moving with speed to delivery services to communities,” said Mayor James Nxumalo.
He said the consolidated financial performance indicators show that the Municipality is in a healthy fiscal position, which reflects the City’s strong commitment to the principles of accountability, transparency, anti-corruption, proper financial management and effective internal control systems.
“This achievement indicates that the City’s leaders are practicing good governance and are appropriately using ratepayers’ funds,” he said.
A clean audit is an unqualified audit and relates to three aspects: the financial statements are free from material misstatements, there are no material findings on the annual performance report and lastly, there are no material findings on non-compliance with key legislation.
