KZN BEATS ALL EXPECTATIONS WITH UNPRECEDENTED 20 CLEAN MUNICIPAL AUDITS A total of twenty KZN municipalities and entities achieved clean audit for the 2013/2014, from the Auditor-General, a massive improvement on the previous total of seven. This was revealed today by the MEC for Co-operative Governance and Traditional Affairs (Cogta) Nomusa Dube-Ncube following the handover of individual Audit Reports by the Auditor-General to municipalities yesterday. KZN municipalities and entities have exceeded all expectations by scoring a total of 20 clean audits in a feat that has seen the province’s local government improve its audit outcomes by leaps and bounds in the true spirit of Operation Clean Audit, according to a proud provincial Department of Co-operative Governance and Traditional Affairs (Cogta). It is for the first time that in our province we have a record of 20 clean audits. It shows that we are a hands-on government that promotes clean governance and the integrity of our public institutions,” said a visibly elated KZN Cogta MEC Nomusa Dube-Ncube. “The positive audit outcomes create a necessary condition for us to improve the quality of life of all citizens and to free the potential of each person as per the dictates of our Constitution,” said Dube-Ncube. “As our former President Nelson Mandela once said: ‘it always seems impossible until it is done.’ We have indeed done it and by achieving these unprecedented 20 clean audits, we have taken the province of KZN and its municipalities forward to ever greater heights,” added Dube-Ncube. “Clean audits have long been thought by some to be a dream and an unreachable goal, but for 20 of our municipalities and entities evidence has been put before us that clean audit is no longer a dream but reality. The improvement from seven to 20 is a quantum leap by any measure and an improvement of this magnitude must surely silence all critics,” said Dube-Ncube. “We are proud that these improvements have happened all across the board with 9 out of 11 districts achieving clean audits. We also celebrate a reduction in irregular expenditure which had previously cost many municipalities favourable audit outcomes. Today our municipalities account for their resources well enough to satisfy the ever more demanding Auditor-General and we are witnessing a significant correlation between the good audit outcomes and service delivery performance on the ground,” said Dube-Ncube. What we think is the reason for the improvements and is also the view shared by the Auditor-General, is that, as the leadership, we insist on daily and monthly financial and performance discipline. We have also noted that where there is a culture of leadership stability, there are improvements which go hand in hand with discipline with which municipalities now regularly complete and submit financial and performance reports. Critically, effective oversight structures have contributed significantly to this positive audit outlook. We are not about to take foot off the pedal. It is our view that none of our municipalities belong to the qualified audit category. Outcomes movement All municipalities where Cogta intervened posted positive audit outcomes. Overall 22 municipalities improved, 7 regressed and 42 have repeat opinions Clean Audits = 20 Dannhauser, uMgungundlovu District, Richmond, eMnambithi/Ladysmith, Uthungulu District, uMhlathuze, Zululand, uBuhlebezwe, uMzimkhulu, iLembe District, Mandeni, Ezinqoleni, uMzumbe. Clean Audit Municipal Entities Safe City Pietermaritzburg, Uthungulu Financing Partneship, Uthungulu House Development Trust, Durban Marine Theme Park (PTY) LTD, ICC, Durban (PTY) LTD, Ilembe Management Development, Enterprise Ilembe (PTY) LTD, Ugu South Coast Tourism. It is important to note that 8 of the municipalities and entities that achieved clean audits in the previous year’s audit have sustained them in the latest 2013/2014 audit year. Unqualified Auditees = 41 The province has registered a total of 41 unqualified with findings. 31 of the 41 sustained unqualified with findings while 7 improved from qualified to unqualified and 3 regressed from clean audit. Only 1 municipality regressed to qualification from unqualified with findings in this year’s audit analysis. Qualified Auditees = 7 We recorded a total of seven qualified opinion of which 3 improved from disclaimed to qualified. Disclaimers Jozini, Hlabisa and Amajuba Of these one (1) regressed from qualified, 2 regressed from unqualified with findings to disclaimer audit opinion. It is important to note that compared to the previous year in this audit, 3 municipalities improved from disclaimer to qualified Performance by District Uthungulu leads with 4 Clean Audits including entities, followed by uMgungundlovu with 2+1 entity, Ugu = 2 local municipalities and one entity KZN Cogta is aware that this massive improvement is the work of committed Mayors and administrators who are unwavering in their commitment to radically transform our public institutions by ensuring that they are handled in a manner that benefits the people they serve. We have noted some sterling individual performances: For example, the CFO of Ladysmith who had left Richmond with a clean audit, joined Emnambith/Ladysmith and he has got a clean audit, also the MM of Mandeni who had left Umzimkhulu with clean audit, got a clean audit at Mandeni. Common Areas of qualifications We have also taken stock of the Auditor-General’s comments about reasons for those that received qualified and poor audit outcomes. These range from inadequate systems and processes, lack of adequate documentation and loopholes in the SCM processes. In some of these municipalities, we have already intervened and we will be meeting with them to discuss their performance and to take appropriate remedial actions. “I am confident that these 20 clean audits are but a springboard to ever greater heights as our municipalities draw on the encouragement from their own audit outcomes and those of their neighbours. With improved financial discipline and key vacancies that are being filled, we can only do better next year,” said Dube-Ncube.
Posted on: Tue, 02 Dec 2014 12:17:00 +0000