W Cape leads in audit report

THE WESTERN Cape continued to set the pace with 80% of its municipalities achieving clean audits, Auditor-General Kimi Makwetu said.

“The focused intervention and support by the provincial leadership through the premier’s co-ordinating forum, operating clean audit and the municipal governance review and outlook process continued to bear fruit,” Makwetu said in his executive summary of the 2015/16 local government audit outcomes report.

“Although Gauteng continued to perform well and was the only province where 100% of the municipalities received unqualified audit opinions on their financial statements, only Midvaal could hold on to its clean audit status.

“Not paying sufficient attention to supply chain management and performance reporting led to three municipalities losing their clean audit status.”

With 80%, the Western Cape led the provinces with highest percentage of municipalities with clean audit opinions in 2015/16, followed by KwaZulu-Natal (18%) and the Eastern Cape (16%).

A clean, or unqualified opinion means the financial statements of an entity present a fair and accurate picture of the company and comply with generally accepted accounting principles.

In Gauteng, only Midvaal obtained a clean audit. Ekurhuleni Metro, Sedibeng District and Mogale City regressed from clean audits to unqualified opinion with findings.

Makwetu said KwaZulu- Natal had also regressed. The provinces with the poorest outcomes, based on the number of municipalities with disclaimed and adverse opinions or outstanding audits, were North West, Northern Cape and the Free State. – ANA