13.05.2013 Views

Audit shock for municipality - Letaba Herald

Audit shock for municipality - Letaba Herald

Audit shock for municipality - Letaba Herald

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

PAGE 2 HOEDSPRUIT HERALD - Friday 15 February 2013 NEWS<br />

Local municipalities fail audit<br />

THE Mopani District Municipality and its five<br />

local municipalities received poor audit results<br />

from the Office of the <strong>Audit</strong>or General <strong>for</strong> the<br />

2011/2012 financial year which ended last<br />

June.<br />

Mopani, Tzaneen, Giyani and Ba-Phalaborwa<br />

received disclaimers which means the<br />

auditor-general's office was unable to express<br />

an audit opinion because of a lack of sufficient<br />

or appropriate audit evidence due to the<br />

municipalities poorly prepared annual financial<br />

statements.<br />

The Greater <strong>Letaba</strong> Municipality improved<br />

from adverse outcome in the 2010/2011 financial<br />

year to qualified audit opinion in<br />

2011/2012 whilst the Maruleng Municipality<br />

went down from unqualified audit opinion<br />

with findings to qualified outcome.<br />

The latest audit outcomes reflect a very poor<br />

and undesirable state of financial affairs des-<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

pite the municipalities paying five external<br />

consultants hourly rates of between R1700 and<br />

R2 200 per person <strong>for</strong> attending quarterly and<br />

special meetings aimed at assisting municipalities<br />

improve their financial affairs in line<br />

with the strategic objectives of Operation<br />

clean <strong>Audit</strong> 2014.<br />

The consultants who <strong>for</strong>m a five member<br />

District <strong>Audit</strong> Committee, consisting of Accountants,<br />

IT Specialist and a Lawyer also<br />

receive R1000 preparatory allowance, each<br />

determined by the meetings attended.<br />

The office of the <strong>Audit</strong>or-General attributed<br />

the poor audit outcomes to lack of strong<br />

internal controls, key officials lacking minimum<br />

competencies and skills, lack of consequences<br />

<strong>for</strong> poor per<strong>for</strong>mance and transgressions<br />

and lack of political will to address<br />

outcomes.<br />

'The figures <strong>for</strong> unauthorised, irregular, fruit-<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

less and wasteful expenditure also appear to be<br />

getting worse,' said Satish Pillai, a senior<br />

manager in the Office of the <strong>Audit</strong>or General in<br />

the province.<br />

Pillai said the status of audit outcomes stems<br />

from failure by the leadership of the municipalities<br />

to implement the audit recommendations<br />

from the previous year.<br />

Members of the opposition parties in Mopani<br />

municipalities say violation and disregarding<br />

of supply chain policy when taking decisions<br />

relating to the awarding of tenders, contributed<br />

immensely to the poor audit outcomes.<br />

'Unless stricter controls measures are implemented<br />

the system in the municipalities will<br />

remain open <strong>for</strong> abuse and fraudulent activities<br />

resulting in more poor audit outcomes,' said a<br />

senior municipal official who did not wish to<br />

be named.<br />

Mopani District Municipality manager, Tim<br />

Maake could not be reached <strong>for</strong> comment, as<br />

his mobile phone rang unanswered.<br />

BAD NEWS: Satish Pillai and Essa Muhamed<br />

of the office of the <strong>Audit</strong>or General in the<br />

province during the municipal finance week<br />

in Tzaneen on Thursday.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!