City tables annual report after getting a nod from Auditor General
JOHANNESBURG – The Auditor General found that the City remained in a position to meet its financial obligations.
The City of Johannesburg tabled its integrated Annual Report for the 2017/18 financial year after achieving an unqualified audit report from the Auditor General.
“Since coming into office, our administration has focused on ensuring that our budgeting process supports those priorities which speak to communities’ most urgent needs through investment in our infrastructure, basic free services and our economy,” said Executive Mayor Herman Mashaba.
According to Mashaba, the Auditor General found that the City remained in a position to meet its financial obligations. The Auditor General also noted that there was an improvement in the City’s working capital position including cash flow from operating activities, which were both positive at year-end.
The Auditor General’s assessment indicated that on average, the City takes 32 days to pay its suppliers. “This is an improvement from the prior year’s 48 days. However, the days in which the invoice remains outstanding are still outside the prescribed period of 30 days. This is an aspect we will continue to work on towards making improvements,” said Mashaba.
The City recorded a surplus of R 1 375 882 000 as compared to R1 070 611 000 in previous years.
“Though the AG noted that our senior management vacancy rate remains high, I remain confident that this is an area we will continue to improve on. The City has subsequently filled the critical positions of chief technology officer, chief operations officer and group chief financial officer.”
Joburg Water
The entity managed to replace 45.4km of sewer pipes against a target of 33.5km, translating to 135.5 per cent over-achievement. An additional 620 informal dwellings were provided with access to basic sanitation.
During 2017/18, an average of 1.55 billion litres of water, complying with acceptable drinking water standards, were distributed to the households within the city on a daily basis. This is an increase of 2.5 per cent in the daily volume compared to the 2016/17 financial year.
The percentage compliance with drinking water quality standard on E-Coli was 99.9 per cent against a target of 99 per cent.
City Power
In 2017/18 the entity installed 1 374 public lights against a target of 1 000. City Power electrified 2 167 units in informal settlement compared to a target of 810.
Joshco
In 2017/18, Joshco delivered 1 159 housing units.
Johannesburg Roads Agency
Approximately 301.12km of roads were resurfaced against an annual target of 250km, across the City. A total CapEx budget of R162 million was spent on road resurfacing Citywide. JRA’s CapEx implementation programme created a cumulative total of 1 494 jobs against an annual target of
1 250 by employing 89 local emerging contractors.
“Despite improvements within the City, there is no denying that much work still needs to be done to address the backlog of our historic challenges. One of these relates to the accumulation of unauthorised, irregular, fruitless and wasteful expenditure,” said Mashaba.
Within the current reporting period, a total of 869 investigations relating to allegations of financial misconduct, fraud or improper conduct in supply chain management were ongoing.
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