Pretoria - Cabinet has welcomed the 2013/14 Local Government Audit Outcomes and applauded the performance of municipalities that showed a consistent improvement in all aspects of municipal-audit outcomes.
In a statement issued following Wednesday’s Cabinet meeting, acting Cabinet spokesperson Phumla Williams said the report recognises that a concerted effort was made to address irregular expenditure.
An overwhelming 96% of auditees (municipalities and municipal entities) submitted their financial statements on time, which is a major improvement from 93% in 2012/13 and 78% in 2007/08.
“Notable is the significant increase in the number of municipalities and municipal entities with unqualified audits from 30 in 2012/13 to 58 in 2013/14, with only seven in 2007/08 pointing to a steady trend towards good governance and sound financial management.
“Auditees with financially unqualified opinions now account for 76% of the total local government expenditure budget of R315 billion. This means that almost eight out of every 10 rand spent by local government is spent by entities with financially unqualified statements,” she said.
Of the 335 municipalities and entities audited, 102 improved, 194 remained constant, 27 regressed, while two were new and 10 were still outstanding.
This reinforces more efficient and accountable basic service delivery in line with the ‘Back to Basics’ approach.
“Cabinet welcomes that as part of the Back to Basics Strategy, special attention will be given to the 50 municipalities that received disclaimed audit opinions, particularly the 25 that received disclaimed opinions for the past five years.
“Cabinet also expresses its concern over those municipalities that continue to employ unqualified people and thereby undermine good governance practices,” she said.
Cooperative Governance and Traditional Affairs Minister Pravin Gordhan, working with the municipalities, will expedite the process of resolving these issues. - SAnews.gov.za
