Gauteng commits to better audit outcomes

Wednesday, July 25, 2012

"We want to say that in as far as audit outcomes, we know we can do better. Issues that were raised are issues that can be attended to," Mokonyane told reporters.

The premier was speaking on Tuesday following Monday's release by the Auditor-General on the audit outcomes of municipalities for the financial year 2010/2011.

Only 5% of Gauteng's local government entities obtained clean audits. In the report, 71% of municipalities and entities received unqualified audit opinions with findings.

According to the Report, of Gauteng's 15 municipalities and 27 municipal entities, there were two clean audits registered at Johannesburg Civic Theatre and Johannesburg Social Housing Company; while six municipalities and four municipal entities received qualified audit opinions. The majority (nine municipalities and 21 municipal entities) received unqualified audit opinions (with findings).

The City of Johannesburg had received a qualified audit -- the only metro to receive a qualified audit. However, there were no disclaimers for audited entities.

Peter Serote, who is responsible for Gauteng's audit outcomes, said with commitment, clean audits can be achieved.

Serote said that municipalities in the province had shown improvement. Key risk areas, he said, were in areas such as supply chain management and IT systems.

"If these are attended to, this will help us move to clean audits."

Serote further added that in some municipalities, there were no consequences for poor performance. Another was that there was a lack of adequately skilled officials in key positions in some of the municipalities.

"We understand and know what the challenges are," said the Premier.

Mokonyane said that in the next six weeks, a co-ordinating forum would be held.

Meanwhile, Housing MEC Ntombi Mekgwe said 550 officials have been trained in financial management. "What is good is that there is a willingness to change the status quo," she said.

The Premier commended those municipalities that have done well in their reporting.

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