POLOKWANE – The municipality’s annual financial statements (2012/13) could not be included in the Auditor-General’s (AG) official general audit report comprising a summary of provincial reports released last week.
Various meetings between the AG’s office and the municipality ensued. The municipality queried the AG’s findings, while the AG required the municipality to supply more information on certain transactions.
This resulted in the delay of the audit opinion being announced, and it was not included in the AG’s provincial or general report.
According to municipal spokesperson, Malesela Maubane, the municipality submitted its annual financial statements on time. The municipality’s audit opinion for this period emerged as a disclaimer, the second disclaimer received in a row.
A disclaimer is issued when the AG could not form an opinion, and consequently refuses to present an opinion on the financial statements. This type of report is issued when the AG tried to audit an entity, but could not complete the work due to various reasons, and as a result does not issue an opinion.
According to Maubane, a big issue during this audit period was the cost of the roads being maintained by the municipality. He said it emerged that the municipality was taking responsibility for roads that actually fell under the Capricorn District Municipality, but the issue had since been addressed and resolved.
The AG’s latest report reflected a regression in Limpopo municipalities’ financial audit statements for the third year in a row.
Fruitless and wasteful expenditure amounted to R10,4 million, and the expenditure of R418 million by municipalities could not be accounted for.
Unauthorised expenditure incurred by 18 of the 27 municipalities amounted to R859,6 million.
None of the 27 municipalities or municipal entities received a clean audit for the 2012/13 financial year.
National AG, Kimi Makwetu, said the same root causes for the poor results were still relevant during this financial year. In 88% of municipalities some key officials lacked the minimum competencies and skills, including 52% of the chief financial officers (CFO) at municipalities.
Some 16% of CFO positions were vacant by the financial year-end (June 30 2013).
This led to reports with material misstatements.
