Jozi gets second clean audit report

Monday, March 2, 2009

Johannesburg - Joburg has received an unqualified report from the Auditor-General, Terence Nombembe, for the second consecutive year.

"The city's audit committee substantially fulfilled its responsibilities for the year, as set out in the Municipal Finance Management Act (MFMA), as did the internal audit function," Mr Nombembe said in his report.

Parks Tau, the member of the mayoral committee for finance and economic development, points out that there are many benefits to having a clean audit report.

"The most significant is strengthened investor confidence as the city is able to improve its credit ratings.

"Improved credit ratings will reap benefits for the city's residents through better service delivery as well as possible employment opportunities and socio-economic development during these difficult times," he said.

According to Joburg.org, the city has worked tirelessly to create a comprehensive asset register, produce consolidated financial statements, confirm the completeness of revenue and build strong financial controls since 2004, when it launched Operation Clean Audit with a focus on tightening its administrative environment.

According to the city's financial statements for the year to 30 June 2008, revenue grew by 14 percent while expenditure grew by 19 percent.

Capital expenditure rose 17 percent to R4.1-billion and capital expenditure to revenue rose from 20 percent to 23 percent.

According to the financial statements, cash and investment balances increased by 14 percent to R4.2-billion.

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