commits to aggressive intervention measures to improve municipal audit
outcomes
23 March 2009
The North West Department of Developmental Local Government and Housing is
to adopt aggressive intervention measures in order to realise disclaimer free
municipal audit outcomes for the 2008/09 financial year says MEC Howard Yawa.
The MEC made the undertaking at the 2007/08 Municipal Audit Outcomes presented
by the Audit General, Terence Nombembe in Mafikeng today.
The report reveals that at least four municipalities in the province, i.e.
Dr Ruth Segomotsi Mompati and Bojanala Platinum District Municipalities, Molopo
and Moses Kotane local municipalities have managed to sustain their unqualified
audit reports year on year.
Three municipalities, i.e. Rustenburg Local Municipality, Ngaka Modiri
Molema and Dr Kenneth Kaunda District Municipalities also moved from a
disclaimer audit opinion in 2006/07 to a qualified opinion in 2007/08.
The Auditor-General (AG) attributed the slight improvement on the results to
a number of factors, such as strengthened internal controls, especially proper
record keeping and management, as well as the usage of consultants to assist
municipality to compile financial statements.
Nombembe, said in order to maintain sustainability, municipalities needed to
put in place stringent record management system that will allow for easy
retrieval during audit processes. He said the fact that senior officials are
not available during audits, non-prioritisation of action plans to address
prior year audit findings as well as capacity and financial and accounting
skills, were some of the factors that contributed to the deteriorating audit
outcomes. He advised municipalities to share best practices in order to
turn-around the situation and reduce the number of disclaimers in the
province.
Ten municipalities, i.e. Moretele, Greater Taung, Lekwa Teemane, Naledi,
Mafikeng, Ramotshere Moiloa, Ratlou, Tswaing, City of Matlosana and Ventersdorp
local municipalities have remained with a disclaimer opinion, while the only
municipality that moved from an adverse opinion in the 2007/08 financial year
to a disclaimer is Tlokwe City Council.
While committing his department to continued support to municipalities for
them to meet their constitutional obligations, MEC Yawa appealed for key
stakeholders in local government to hold hands to improve financial
management.
Enquiries:
Lesiba Moses Kgwele
Tel: 018 387 3814
Cell: 083 629 1987
Fax: 018 384 5426
E-mail: LKgwele@nwpg.gov.za
Issued by: Department of Developmental Local Government and Housing, North
West Provincial Government
23 March 2009
