Ekurhulen’s multi-party coalition government welcomed the clean audit opinion for the 2020/2021 financial year from the auditor-general (AG) of South Africa.
Council tabled the audit opinion during the seating of an ordinary council meeting on January 27.
The AG exists to strengthen the country’s democracy by enabling oversight, accountability and good governance in the public sector through auditing.
The overall audit outcome opinion states the City of Ekurhuleni has sustained an unqualified audit opinion with no findings on compliance and predetermined objectives for the financial year 2020/2021.
Furthermore, the irregular expenditure has significantly decreased (99.55%) from R116-million during the 2019/2020 financial year to R518 000 during the 2020/2021 period.
The AG noted the City’s internal processes of identifying and reporting irregular expenditures have improved immensely, to the extent that the reported irregular expenditure was identified by the City’s management.
Whereas the AG identified no irregular expenditure during their audit.
“As a multi-party coalition government, we welcome the clean audit opinion from the AG of South Africa. We intend to maintain clean audits throughout the duration of our term.
“However, although we must commend the clean audit, there are a plethora of issues that are of great concern beyond compliance,” said Ekurhuleni Mayor Tania Campbell.
“The financial health of the City is in an unfavourable state. In addition, the City faces serious liquidity challenges.
As a result, Moody’s rating agency downgraded the City, citing the significant decline in liquidity.
“The multi-party coalition government has resolved to scrap all vanity projects in the City and reprioritise the fiscus towards going back to basics. We maintain that funds from the public purse must demonstrate value for money.
“I wish to commend the administration under the leadership of city manager Dr Imogen Mashazi and group chief financial officer Kagiso Lerutla (CA)SA for ensuring the City maintains a clean audit opinion.
“I have met with the chairperson of the Audit Committee of Ekurhuleni to ensure we align our strategic outlook and nurture a culture of accountability.”
This is the second consecutive clean audit opinion from the AG for the City of Ekurhuleni.
