9% of municipalities get clean audits
Fin24

9% of municipalities get clean audits

2014-07-30 12:18

Pretoria - Just 9% municipalities and municipal entities achieved clean audits in the 2012/2013 audit review, Auditor General (AG) Kimi Makwetu said on Wednesday.

This was compared to 5% for the previous year.

Of the 319 audits, 22 municipalities and eight municipal entities had unqualified audits with no findings, otherwise known as clean audits.

Of the 30 clean audits, 13 had sustained this distinction from the 2011/2012 audit.

Praise for Western Cape, KZN

Makwetu praised those that achieved clean audits, saying their accountable management and leadership meant they could provide additional evidence to support their financial statements.

"We commend the Western Cape and KwaZulu-Natal provinces for already tracking double digits in the [clean audit] category."

18% get disclaimed audit

On the other end of the spectrum, 18%, or 59 of those audited, received disclaimed audit opinions - the worst finding the AG could make.

These municipalities or entities could not provide credible financial statements that could be relied on in the audit.

"Anything could have happened to the financial resources entrusted upon the auditee and the auditor had significant uncertainty about the financial statements, and thus unable to express an opinion on whether the financial statements can be relied upon," Makwetu said.

41% get unqualified audits with findings

In the category of unqualified with findings, 138 auditees or 41%, were found to have credible presentations of financial statements.

"With findings", however, indicated that there were cases where the requisite processes were not followed. This cast some doubt on the transparency of the municipal activities.

Makwetu warned those that fell into this category not to become complacent.

Warning of complacency

"When auditees start to conduct public business according to their own defined rules... poor governance becomes inevitable."

A quarter of the audits were returned with qualified opinions. This meant there were elements that the municipalities or entities could not adequately account for, and elements of their financial statements were unreliable.

2% receive adverse audit opinions

Two percent, or eight auditees, received adverse audit opinions, where an extreme lack of accountability was evident in financial statements.

Comments
  • Nawhal Majiet-Armien - 2014-07-30 12:25

    NOW I WOULD LIKE TO READ THE COMMENTS OF THE DA NAYSAYERS

      Wehr Wulf - 2014-07-30 13:01

      Um, another 30% who can't think. You happy with 91% of councils not getting a clean audit?

      Kiss123 - 2014-07-30 13:57

      You are a f$&@ing idiot? ...and you think this is remotely ok ?

  • Dane Cresswell - 2014-07-30 12:33

    Please tell the Public which Municipalities and entities achieved what? We would like to know the facts! In the Private Sector, if you were found 'wanting' due to negligence etc. you would be disciplined and more than likely removed from your post! The overall low 'clean audit' results are an embarrassment to our Country!

  • Kathi Smuts - 2014-07-30 12:54

    Wow, that's impressive - NOT. While they all have their hands in the proverbial cookie jar and spending taxpayers money hand over fist, there is never going to be any kind of improvement. Clearly these morons have no shame, while a nation carries the embarrassment - yet again.

  • Wehr Wulf - 2014-07-30 12:59

    Rewrite the heading: 91% of municipalities do not get clean audits.

  • Patrick Saunders - 2014-07-30 13:03

    now altogether people "How many of the worst offenders are run by the ANC?"

  • Nicol Moray - 2014-07-30 13:39

    What a joke - but if you don't pay they will cut you off very efficiently!

  • John Stoltz - 2014-07-30 13:43

    For the imbecilic in the RSA, this must be a good story to tell!! This tells me that 91% of municipalities are incompetent, uneducated and comprise out of deployed cadres!!

  • Terence Wessels - 2014-07-30 14:05

    We doing great! Well done corrupt cancer ba$tards.

  • Stefan Van Der Spuy - 2014-07-30 14:42

    Make the lists available. The tax - and ratepayers are entitled to it!

      Alexander Dowding - 2014-07-30 23:22

      I agree. Why isn't the list made public? Voters/residents/taxpayers deserve to know whether their municipality is being properly managed or not especially in terms of finances! Surely we have a right to see the list?

      Alexander Dowding - 2014-07-31 12:39

      Stefan the full report and its findings are available at agsa(dot)co(dot)za

  • Chris Du Plessis - 2014-12-10 22:41

    Waowee ! thats and almighty improvement of 80% on last year................or is it ?

  • Hynn Munro - 2014-12-10 22:45

    thank goodness the mosselbay mayor is an ex AWB member. ever wondered what would happen if she was an ex pfp member?

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