AUDITOR General of South Africa, Kimi Makwetus released the Municipal Audit Outcomes report for the 2016/17 financial year, giving eThekwini Municipality an uqualified audit and clean audits for the city’s two entities, the Durbgan ICC and uShaka Marine World.
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According to a media statement by the Municipality, the reports claims that the number of findings were significantly reduced with no major or material issues. There has been a significant decrease in irregular expenditure from R1.3 billion in 2011/2012 to R513 million in 2016/2017 of which 75 per cent relates to one incident regarding a tax clearance certificate from the previous financial year. Without this case, irregular expenditure would have reduced further to R129 million.
In comparison to previous financial years, there has been a steady increase in expenditure year-on-year from R20.72 billion in 2011/2012 to R31.04 billion in 2015/2016. For the five year period, this equates to a 154 per cent decrease in irregular expenditure whilst there has been a 50 per cent growth in expenditure.
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Dr Krish Kumar, recently named the best CFO in the public sector, said, “Apart from the excellent progress made with curbing irregular expenditure, we engaged with Internal Audit on auditing and strengthening SCM processes end-to-end and improving transversal supply chain management controls, coupled with continuous control monitoring.”
“We also have controls in place to detect and/or prevent irregular expenditure which is portrayed by the decrease and we remain committed to continuing improving the implementation of controls. Any breaches will be followed with consequence management action,” said Kumar.
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