Umdoni aims to improve audit outcome

Umdoni Local Municipality has committed to ensuring a positive turnaround after the Auditor General (AG) of South Africa announced a qualified audit opinion for the 2023/24 fiscal year at a special municipal council sitting last week.

The AG presented a reversion in municipal financial statements, consequence management and human resources management, and a stagnant status in expenditure, procurement and contract management.

However, the positives of this audit opinion are that the municipality is doing well in revenue and asset management and its conditional grants.

Also, it comes at a time when the municipality has been able to find its feet towards its stabilisation through a turnaround strategy and recovery plan, which are proving successful.

Responding to the AG’s presentation, mayor Mbali Cele-Luthuli said the municipality acknowledges the AG’s findings, and it’s unfortunate that Umdoni regressed in the financial year under review.

“The municipality was engulfed with complex challenges which included labour and public unrests which hindered the audit process to be completed in time and the abrupt resignations of senior managers, which among others had an immense contribution in the destabilisation of Umdoni,” she added.

“The new senior management has held the fort, and on behalf of council, I commend them for their resilience because without their commitment, even though their employment was from November 2024, the audit outcome could have been worse.”

The immediate plans to improve the municipality’s bill of health include:

· A mandate given to senior management to draft an all-inclusive audit action plan that aims to deal with the issues raised by the AG and those identified internally. This plan will be presented to council for adoption.

· Progress of this plan to be presented to council and the Municipal Public Accounts Committee for monitoring and evaluation on a monthly basis.

· Formation of a Clean Audit Committee, which will be led by the municipal manager, and its purpose is to ensure implementation of the Audit Action Plan and monitor its effectiveness.

Cele-Luthuli also said that the municipality is adopting an unusual business approach to ensure the development and enhancement of internal controls which include the implementation of strict consequence management.

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