Muni audits in red zone

Four of Limpopo’s 30 municipalities remain in the so-called red zone having just received worrisome disclaimers or adverse audit opinions for the 2014/15 financial year. At the same time ten of Limpopo’s municipalities received unqualified audits with findings, 12 qualified opinions and two unqualified opinions with findings while three regressed to qualified audits.
The audit opinions on the remaining four are seemingly still outstanding.
By providing a breakdown of the results, South African Local Government Association (Salga) Provincial Executive Officer (PEO) Thapelo Matlala referred to Vhembe District Municipality receiving an adverse audit opinion while Tubatse, Thabazimbi and Ephraim Mogale Local Municipalities got disclaimers, seemingly based on the provision of supporting audit evidence still being a problem within some municipalities.
Matlala was expected to lead a multi-disciplinary team of Salga experts to Ephraim Mogale Municipality in Sekhukhune on Tuesday to assess matters varying from finances to human resources. Matlala indicated that they would continue to engage struggling municipalities on their ongoing dedicated audit support programme and next budget week scheduled for February 2016, when they were planning to team up with the Auditor-General in order to provide guidance to targeted stakeholders.
He further referred to Capricorn, Sekhu-khune and Waterberg District Municipalities as well as Polokwane, Makhuduthamaga, Molemole, Bela-Bela, Lephalale, Thulamela and Musina Local Municipalities all managing unqualified opinions with findings.
Polokwane and Molemole municipalities managed to improve from qualified findings compared to the previous year.
Matlala pointed out that Ba-Phalaborwa and Fetakgomo Local Municipalities moved from disclaimers to qualified opinions. The other municipalities receiving qualified audit opinions are Aganang, Blouberg, Lepelle Nkumpi, Greater Tzaneen, Greater Letaba, Maruleng, Elias Motsoaledi, Modimolle, Mookgophong and Makhado Local Municipalities.
It was learnt that the municipalities of Blouberg, Maruleng and Makhado have regressed from the initial unqualified with findings to qualified opinions.
The audits for Mutale and Greater Giyani Local Municipalities and Mopani District Municipality were still outstanding due to a technical issue which was being finalised by the AG while that of Mogalakwena Local Municipality was delayed due to labour unrest, it was pointed out.
Although the outcomes resembled light at the end of the tunnel, municipalities needed to do more to improve on finances, stressed Matlala. He expressed disappointment at municipalities in the province not achieving the 60% target for audit outcomes set by Salga. He indicated that with 10 of the 30 auditees having received unqualified audit opinions, the institutions still had a long way to go with regards to financial management.
With reference to the analysis of the results that have just been released to the respective local government institutions, he said asset management, irregular expenditure and vacant posts according to minimum competency requirements remained a huge concern.
Matlala concluded by expressing the hope that within the next three to four years municipalities in Limpopo would have improved substantially where financial management was concerned.

YOLANDE NEL
>>observer.yolande@gmail.com