Auditor-general’s Municipal Audit Reveals No Improvement on Previous Results
The results of last year’s municipal audits were released by the auditor-general earlier this week, revealing no improvement from the previous set of results. More than half of the municipalities received a qualified audit, disclaimer or adverse opinion with some of these not submitting their financial statements in time for the audit.
In an article for The Daily Maverick, Paul Berkowitz looks at the auditor-general’s findings and addresses some of the issues that are holding the municipalities back, while Xolani Koyana and Kwanele Butana from the Cape Times report on the response of the Overberg District Municipality to the finding that it is among the three worst performing municipalities in the country.
For more on the challenges facing municipalities, consult The Failure of Decentralisation in South African Local Government: Complexity and unanticipated consequences by Andrew Siddle and Thomas Koelble.
The results of last year’s municipal audit are in, and they are not good. In his foreword to the consolidated annual report, the phlegmatic and long-suffering auditor-general, Mr Terence Nombembe, claimed that “[t]he 2010-11 audit outcomes did not show improvement”.
The aggregate figures make for dismal reading: 155 of the 283 municipalities (over half) received a qualified audit, disclaimer, adverse opinion, or simply didn’t submit their financial statements in time. Of the remaining 128 municipalities, 115 received unqualified audits, but even among these, “[t]he majority…achieved [an unqualified audit] by correcting the mistakes identi?ed through the audit process.”
The Overberg District Municipality blames its poor audit result on “a poor management and organisational culture” and says it will take three years to turn things around.
On Monday Auditor-General Terence Nombembe announced that the district municipality was among the three worst performing in the province.
- The Failure of Decentralisation in South African Local Government: Complexity and unanticipated consequences by Andrew Siddle and Thomas Koelble
Find this book with BOOK Finder!