A-G: Increase in clean audits for municipalities augurs well

01 June 2016 - 13:45 By Roxanne Henderson And Penwell Dlamini

The number of municipalities that received clean audits has shot up from 13 to 54.In the report on municipalities for 2014/15 by Auditor-General Kimi Makwetu‚ the number of municipalities that received unqualified audits with no findings increased‚ showing a great improvement in management of councils across the country.Furthermore‚ the number of municipal entities which received clean audits increased by 18 in the 2010/11 financial year to 72 in the reporting year.However‚ 13% of municipalities regressed from their previous audit outcomes while 34% received the same outcome as the previous financial year.Makwetu commended mayors and other municipal structures for the great improvement in the audit outcomes of councils across the country.“These developments and improvements augur well for further tightening of financial management disciplines in local government‚” Makwetu said.“We commend the mayors and other oversight structures for their focused attention and decisive leadership that have ensured that basic administrative and financial disciplines are restored and observed.”He identified political‚ municipal and provincial leadership as contributors to the improvement‚ but also expressed concern over municipalities' continued dependence on consultancies.“Consultancy costs for financial reporting services continued to increase over the past five years to R892-million in 2014/15‚” Makwetu said.“The management of consultancy (not just limited to financial reporting services) continues to be inadequate.“In 68% of the municipalities which used consultancies‚ I have identified weaknesses in the planning and appointment processes‚ performance management and monitoring‚ and transferring of skills.”..

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