eThekwini Municipality - City And Its Entities Receive Positive Audit Outcomes2018-05-24 EThekwini Municipality is proud to announce that it has yet again received an unqualified audit and municipal entities, Durban ICC and Ushaka Marine World have both received clean audit outcomes for the 2016/17 financial year. The report was released by the Auditor-General of South Africa, Kimi Makwetu, today, 24 May 2018 and covered the Municipal Audit Outcomes for the financial year ending 30 June 2017. Mayor, Zandile Gumede has welcomed the outcome and said that she was pleased that the City has maintained its impressive and enviable record of always receiving an unqualified audit report since inception.
The report states that the number of findings were significantly reduced with no major or material issues. There has been a zero-tolerance approach to non-compliance and an intense focus and commitment towards good governance. This is also evidenced by the disciplinary action instituted against some senior officials, and as reported in the media earlier this week, the blacklisting of 42 suppliers for five years has occurred. Over and above these, the Municipality’s political leadership has provided excellent oversight and guidance. Mayor Gumede said, “We are delighted at the improved financial and good governance performance of the Municipality and our municipal entities. In particular, I want thank the Executive Committee for the excellent oversight role they have played in the finances and finance-related policies and strategies of the City, as well as the Municipal Public Accounts Committee (MPAC) and our Audit Committee.†Importantly, there has been a significant decrease in irregular expenditure from R1.3 billion in 2011/2012 to R513 million in 2016/2017 of which 75% relates to one incident regarding a tax clearance certificate from the previous financial year. Without this case, irregular expenditure would have reduced further to R129 million. In comparison to previous financial years, there has been a steady increase in expenditure year-on-year from R20.72 billion in 2011/2012 to R31.04 billion in 2015/2016. For the five year period, this equates to a 154% decrease in irregular expenditure whilst there has been a 50% growth in expenditure. Dr Krish Kumar, recently named the best CFO in the public sector, said, “Apart from the excellent progress made with curbing irregular expenditure, we engaged with Internal Audit on auditing and strengthening SCM processes end-to-end and improving transversal supply chain management controls, coupled with continuous control monitoring.†“We also have controls in place to detect and/or prevent irregular expenditure which is portrayed by the decrease and we remain committed to continuing improving the implementation of controls. Any breaches will be followed with consequence management action,†said Dr Kumar. Whilst the City has achieved much especially in terms of compliance and good governance, it is also focusing on adding value by exploring smart city initiatives, such as smart metering, enhancing asset management and the useful lives of City assets, improving productivity through the use of technology as well as embracing the fourth industrial revolution. EThekwini Municipality is strongly committed to growing the green economy and reducing its carbon footprint. Alternate sources of energy and water are currently being identified. The City is aligned to the Paris Agreement target of 1.5% and zero carbon emissions by 2050. This will help the City achieve its vision of becoming the most caring and livable City in Africa. ENDS Issued by eThekwini Municipality’s Acting Head of Communications, Mandla Nsele. |
eThekwini Municipality - City And Its Entities Receive Positive Audit Outcomes
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