Govan Mbeki Municipality attained a qualified audit opinion from the office of the Auditor-General of South Africa.
The audit outcome was presented by representatives of the Auditor-General during a council meeting held on Wednesday, April 13 at the municipality council chamber.
A qualified audit opinion is when the auditor finds that financial statements contain material misstatements in specific amounts, or there is insufficient evidence for the auditor to conclude that specific amounts included in the financial statements are not materially misstated.
Auditor-General representatives said their office was pleased that the municipality had improved from the previous past three years’ disclaimer audit opinions.
They said the municipal financial statements were presented fairly, though there was still a lot that the municipality needed to improve.
Included in the auditor’s findings is that the municipality failed to produce supporting documents for service charge revenue of R99 million when the municipality paid for electricity.
Mayor Nhkakanipho Zuma said the municipality was already implementing some of the Auditor-General’s remedial action.
“Where the auditor picked up that the municipality is not reporting matters as it is supposed to be reported, either to council or inter-governmental department and stakeholders, we are working on improving our weaknesses.
“We welcome the audit outcome and it is up to us to work harder to improve financial viability and revenue generation for our municipality,” said Zuma.
