TCLM just one step closer to a clean audit

LYDENBURG – For the first time in
nearly a decade, Thaba Chweu Local
Municipality (TCLM) has improved its audit
outcome, and has moved one step closer
towards receiving a clean audit.
The 2017/18 audit outcome for the
municipality, as confirmed by the signed
audit report received from the Auditor
General on 30 November, confirmed that
the municipality has finally won the battle
of adverse and disclaimer audit outcomes
which has been a struggle for a number of
financial years.
According to Themba Sibiya,
communications manager of TCLM, the
current outcome of qualified opinion put
the municipality in a good position to work
towards unqualified opinion and unqualified
with no matters opinion (clean audit
outcome) in the coming financial years.
The acting executive mayor of the
council, Cllr Jonathan Kock, said during
the last council meeting on December 7,
2018, that the outcome proved to all those
that lost hope towards the leadership of the
municipality that the institution was in good
hands. The only thing needed is a paradigm
shift and dedication by everyone associated
with the municipality. He reiterated that
the political and administrative leadership
of the municipality will do everything
in their power not to regress from the
outcome, rather improve to ensure clean
administration.
Kock admitted that the improved audit
outcome does not mean all is well. The
audit report has highlighted deep concerns
about internal controls, compliance with
legislation, record-keeping and poor
financial management. “As we celebrate the
outcome, we also expediting the finalisation
of the Audit Action Plan, which will help us
to improve around these issues and submit
quality financial information in the 2018/19
financial year. TCLM has improved its audit
outcome and has moved one step closer
towards receiving a clean audit.”
Sibiya said although the municipality
has shown a regression in the audit of the
annual performance report as the opinion
on the objective selected for testing like
basic service delivery and infrastructure
development, it has moved from adverse
in the prior year to being disclaimed in the
current year.
“The internal control environment and
systems of the municipality are a cause
for concern; the deficiencies raised during
the audit will need both the commitment
of the executive and administration to
work together towards improving them.
This regression in the audit of the annual report is attributed to the fact that the municipality has not implemented proper record-keeping to support the achievements reported in the annual performance report.

This is one key area that the  municipality has to retreat for a strategic engagement session in order to find proper plans to address this observation by the auditors and the municipality
must fully deploy resources and skills in order to improve the outcome.”
Sibiya said the municipality is currently in the process of filling key critical positions, including that of a director
of technical services, the custodian for basic service delivery key performance areas, and other positions such as the manager of performance management.
“This will be finalised before the year-end. Although we currently enjoy the
intervention by various sectors and departments such as National Treasury, Provincial Treasury, National Cogta and
the GIZ (German Company through treasury) to assist the municipality as one of the distressed municipalities in the province, this outcome should
be a motivation to all associated with the municipality to do more.

TCLM belongs to all who reside in it and
takes all of us, including the business sector, council and its committees, communities, and the administration to do our part in improving the state of our municipality. Rome was not built in one day. It will not be easy, however we have one foot towards the right direction
and we urge all to be part of changing Thaba Chweu. This is an ideal for the municipality we seek to live for and to achieve,” Sibiya said.

The full and detailed audit report will be made available to the public in due course.