GIYANI – THE Greater Giyani Municipality has, for the first time in history, received a qualified audit opinion, according to the latest financial audit results by the Auditor-General (AG).
Previously the municipality received adverse audit opinions.
A qualified audit opinion is issued when the AG encountered one of two types of situations, which did not comply with generally accepted accounting principles (GAAP), but the rest of the financial statements were fairly presented.
An adverse audit opinion is issued when the AG determines that the financial statements of an auditee are materially misstated and, when considered as a whole, do not conform to GAAP.
“After having poor audit opinions for many years without much improvement, this is a great achievement for us as a municipality,” municipal spokesperson, Steve Mavunda, said. He added that the municipality’s next goal was to obtain a clean audit.
According to Giyani mayor Pat Hlungwani, the improvement was due to the municipality resolving the issues that stood in the way of receiving a clean audit opinion. “You will recall that we convened several special meetings with the aim of finding a way to decisively deal with issues that led to us failing to get a clean audit,” he explained.
“The current results are therefore an indication that we’re getting there, and that our commitment and determination to deal with problems that have been holding us back from obtaining clean audit are paying off,” he said.
Hlungwani also indicated that the municipality would consider issuing motivational performance awards at the end of the year to motivate its employees to perform even better in all areas of work.
However, opposition parties said there was nothing to celebrate since the municipality did not attain 100% of its intended goal.
“How do you celebrate when you actually did not achieve the full goal you intended to achieve,” Willie Mhlongo from the African Christian Democratic Party, questioned.
“I have read the report from the AG and if one could compare it with the previous ones you’d find that some of the things that it raised were old mistakes which still need to be rectified,” he said.
DA councillor in Giyani, Hasani Shibambu, also supported Mhlongo’s view that the municipality still had a long way to go towards achieving a clean audit. “Obtaining a qualified audit does not mean you’re there, there’s a lot that still need to be done by the municipality such as being able to effectively collect its own revenue in order to balance its finances,” he said.