Qualified audit: 4th consecutive year
The Polokwane Municipality has received yet another qualified audit outcome for the fourth consecutive year.
POLOKWANE –Â Some of the discrepancies as set out in the report by the auditor-general are that the municipality did not adequately review the useful lives of assets at each reporting date as prescribed by the property, plant and equipment policy for municipal management. The change in estimates used could not be supported by any audit evidence. The municipality is also being accused of incorrectly calculating the fair value of its investment properties.
According to the report, the revenue and receivables related to service charges was incorrectly calculated and estimated consumption used was inaccurate and incomplete. The inadequate management, accounting and information systems to account for revenue was also miscalculates and creditors to the municipality were not always paid within 30 days as stipulated by the Municipal Finance Management Act.
The auditor-general noted that reasonable steps were not taken to prevent unauthorised and irregular expenditure and an investigation to determine whether any person would be liable for the expenditure was not done.
The Municipal Systems Act also states that any person who was in service to other government departments or had close relations to a municipal worker needs to declare this before appointment, and failure to disclose would be in contravention of supply chain management regulations. The municipality also lost R107 million, representing 15% of the total electricity purchased. More findings that led to the qualified audit outcome can be found in the auditor-general’s report.
