The North West MEC for Local Government and Human Settlements, Collen Maine, has noted, with a great concern, the 2012/13 Auditor-General audit outcomes of municipalities in the province. He has vowed to take drastic action against municipalities who are not towing the line to better their financial audit outcomes year on year.
MEC
Maine’s statement comes in the wake of “no clean audit” outcome by municipalities for the 2012/13 audit findings. He said that the fact that all municipalities in the province have for the past two consecutive years, submitted on time their financial statements, cannot be a cause for celebration as yet.
“It is still unacceptable that none of the 23 municipalities have not received clean audits. We need to get to a point where these municipalities submit credible financial statements for audit purposes. Provincial Treasury and Enterprise Development will also assist municipalities to compile their annual financial statements and to address audit queries,” he said.
The MEC said work has already started ahead of the recent audit outcomes as planned, by the Premier in his State of the Province Address, to turn around state of municipalities in the province, and that:
- Both the Department of Local Government and Human Settlements, and the Department of Provincial Treasury and Enterprise Development, will also implement clean audit targets and build in the Auditor-General’s recommendations into the performance management contracts of all municipal managers and other senior management officials.
- The department will also go on a comprehensive province-wide skills audit across municipalities to establish skills gaps and to see how the best municipal officials can be capacitated.
- The department has forged partnerships with skills training organisations to train employees in the budget and treasury units of municipalities to reduce the accounting skills gap, as many people in the municipal financial department remain unqualified, under skilled and untrained.
MEC Maine said that after such training, officials will be expected to make significant contributions in positively shaping financial management in their municipalities. “They should ensure compliance with the standard, good financial conduct and ensure non- deviation from the Municipal Financial Management Act,” said MEC Maine.
Furthermore, the department will continue to work with all stakeholders, including municipalities, in order to improve audit outcomes. As part of the addressing some of the issues previously raised by the Auditor-General, the department has:
- established an inter-district records management forum to share best practises.
- supplied records management equipment to needy municipalities.
- records management practitioners in municipalities are trained, on an on-going basis by the Department of Arts and Culture and Traditional Affairs (as custodians of records management), on records management.
- compile audit action plans with municipalities every year to address issues raised for that particular year.
- municipal Public Accounts Committee have been established in all municipalities with a specific role of performing oversight on performance of individual municipalities.
Enquiries:
Ben Bole, North West Department of Local Government and Human Settlements Spokesperson
Mobile: 071 566 1399
Tel: 018 388 4824
E-mail: MSBole@nwpg.gov.za
