Govan Mbeki Municipality again receives qualified audit opinion
Fruitless and wasteful expenditure in the municipality has again appeared as one of the findings by the AG.
The Govan Mbeki Municipality has again obtained a qualified audit opinion with findings from the Auditor-General of South Africa.
This is the fourth year GMM has received a qualified audit opinion.
The AG’s office presented the audit outcome during an ordinary council meeting held in the council chambers in Secunda on January 30.
Fruitless and wasteful expenditure in the municipality has again appeared as one of the findings by the AG.
Other findings were that the payment of suppliers was incorrectly calculated as it contained unexplained material differences and the AG was unable to determine the full extent of errors.
The AG also said his office was unable to determine if any adjustments were necessary to the net cash flows from investing activities stated at R159 065m in the cash flow.
The municipality’s purchase of property, plant and equipment was also incorrectly calculated as it contained unexplained material differences.
The AG was also unable to determine the full extent of errors from these purchases.
The AG also said the performance of contractors or service providers was not monitored every month and problems/delays or defects which were identified during project monitoring or inspection have not been rectified.
The AG was unable to obtain sufficient appropriate audit evidence for the restarted opening balance of the irregular expenditure in the prior year due to the municipality not conducting an investigation to determine the full extent of the irregular expenditure incurred from the previous year.
