The Gauteng Finance and Economic Development MEC, Lebogang Maile, has raised concerns over unchanged audit opinions for the City of Tshwane and Emfuleni Local Municipality from the 2022/2023 financial year.
Speaking at the Gauteng Gambling Board offices on Tuesday, Maile said this showed that the two municipalities have not successfully implemented the recommendations provided by the Auditor General of South Africa (AGSA) in the previous financial year.
Challenges being reviewed
“While this is concerning, the municipalities, GPT, Gauteng CogTA and Salga are hard at work reviewing the particular challenges that the two municipalities are confronted with. And focusing specifically on why the efficacy of the recommended interventions within the context of the said municipalities’ material circumstances,” said Maile.
However, he praised Midvaal Local Municipality for maintaining a clean audit record for 11 consecutive years.
He said the Gauteng government is committed to improving its interventions and providing technical support to ensure sustainable turnaround strategies.
One key area of focus is compliance with National Treasury reporting reforms through the Financial Management Capacity Maturity Model (FMCMM) and the e-monitor system.
Maile explained that the FMCMM is a tool used to assess municipalities’ financial management maturity and capabilities.
It provides a structured approach to improving financial practices, identifying risks, and strengthening accountability.
Some improvements noted in other areas
“In the year under review, the quality of published Annual Financial Statements (AFS) improved. Albeit with a number of qualifications and material adjustments made. A total of 12 (50%) of auditees submitted AFS (Annual Financial Statements) are free from material misstatements.
“The improvement is due to the management implementing the recommendations from the previous year. This specifically with regards to improving review controls,” said Maile.
He said performance reports also showed improvement as the number of audit performance reports submitted with material misstatements decreased from 46% in the previous year to 42% in the 2023/24 financial year.
However, 46% of auditees still had material findings before submission. And 42% received modified opinions.
Unreliable, incomplete information
Maile highlighted that the main issue identified in these reports were unreliable or incomplete information. Some were missing supporting documents.
“It is important to state that in the previous financial years, disciplinary boards were established to deal with cases of financial misconduct.
“We reiterate the call we made in our previous communication of the 2022/23 audit outcomes. The speakers of councils, municipal public accounts committees and other council committees must instil a culture of good governance. This by promptly investigating instances of unauthorised, irregular, fruitless and wasteful expenditure. And by ensuring that disciplinary boards are functioning as intended,” said Maile.
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