The outcomes of audits of the affairs of the province’s 30 municipalities and 3 municipal entities for the 2015/16 financial year released by Auditor-General (AG), Kimi Makwetu last Wednesday show a slight improvement since the previous year, but still reflects R6 billion in unauthorised and wasteful expenditure.
Although no unqualified opinions with no findings were received, the number of auditees that received unqualified audit opinions with findings increased from 12 to 16 and a decrease in disclaimers from four to two were recorded. The figure does not include the findings on Mogalakwena and Thabazimbi that had been disclaimed in the prior year.
Capricorn, Sekhukhune and Waterberg district municipalities as well as Bela-Bela, Fetakgomo, Greater Tzaneen, Lephalale, Makhuduthamaga, Maruleng, Molemole, Musina, Polokwane and Thulamela municipalities received unqualified opinions with findings. They were joined by Greater Tzaneen Development Agency, Polokwane Housing Association and Sekhukhune Development Agency.
Aganang, Blouberg, Elias Motsoaledi, Ephraim Mogale, Greater Letaba, Lepelle-Nkumpi, Makhado, Modimolle, Mookgophong and Tubatse received qualified opinions with findings.
Mopani District Municipality disappointed with an adverse opinion with findings and Vhembe District Municipality and Ba-Phalaborwa Municipality received disclaimers with findings.
Four municipalities outstanding at cut-off date
At the cut-off date of 15 January 2017, the audit outcomes of four auditees were outstanding. Thabazimbi Municipality has not as yet submitted its financial statements for auditing, while Mogalakwena and Mutale municipalities submitted financial statements after the legislated date of 31 August and received an adverse and qualified opinion, respectively. Although Greater Giyani Municipality submitted its financial statements on time, the audit had not been finalised by the legislated deadline of 30 November due to a number of audit issues relating to property, plant and equipment and the cash flow statement that had to be addressed. The audit was subsequently finalised and the municipality again received a qualified audit opinion,” the AG reported.
Improvements consultant-driven
The AG however remarked that improvements at most municipalities were consultant-driven, rather than as a result of a concerted effort by the leadership to address internal control deficiencies. “The continued reliance on consultants is unsustainable due to the continued instability in leadership positions. Instability, highlighted by the number of vacancies at administrative leadership level is a serious concern that contributes to a poor internal control environment,” the AG said.
Salga Limpopo welcomes audit outcomes
Thapelo Matlala, Provincial Executive Officer of the South African Local Government Association (Salga) welcomed the audit outcomes and attributes the improvement in the outcomes to the support provided by the Provincial Treasury and the Department of Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta) and the Premier’s initiative towards directly engaging with municipalities that had audit challenges and now yielded some improvement. “We are confident that going forward all municipalities in the province will receive unqualified audit opinions. Results have shown that the municipalities that worked closely with the Office of the AG, were likely to perform better in terms of their outcomes,” Matlala said.
Story: BARRY VILJOEN
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