City of Cape Town: only metro to receive a clean audit for 2012/2013 financial year
South Africa's Auditor-General (AG), Kimi Makwetu, today released the audit results of the country's municipalities for the 2012/13 financial year. Cape Town was named as the ONLY metro in South Africa to achieve a clean audit. Read more below:
At the briefing, Makwetu praised Cape Town and others who achieved clean audits, saying their accountable management and leadership meant that they could provide additional evidence to support their financial statements.
He said that the group had demonstrated ‘impeccable levels of discipline and oversight' in their financial management and operational activities.
The City of Cape Town has, in achieving our 10th unqualified audit, fulfilled a commitment to our residents to building a well-run city.
Overall, the Western Cape's Municipal Finance Management Act (MFMA) 2012-13 audit outcomes improved significantly, compared to the previous year. This is a direct reflection on the City of Cape Town, as the metro accounts for 70% of the overall total expenditure for the Western Cape municipalities.
According to the report, the drivers that support these positive outcomes include commitment displayed by both political and administrative leadership to deal with audit findings and action plans; institutionalisation of good governance practices, including the role played by internal audit and audit committees; strong drivers of internal controls, with the focus on entrenching administrative basics and standard disciplines and processes which were continually monitored; and implementation of commitments made in the previous year by the role players as this provides the essential assurance.
More than any other entity, it is municipalities that lie at the coal face of delivery. It is within local governments that we can fundamentally change the day to day lived experience of the people of our cities.
The success of the City is attributable to the seriousness that the senior politicians and managers take to ensure a clean audit. Personal attention from the Executive Mayor, myself as Executive Deputy Mayor, the Chief Financial Officer and City Manager to past shortcomings ensured that the systems and controls were strengthened. We have driven the message that there is real value to be obtained through the discipline required to achieve a clean audit.
The City has also ensured significant training for its staff. We now have 156 senior staff members who have acquired Municipal Finance competency, with a further 65 in training.
We know that redress must remain at the top of our priority list as we seek to give dignity and opportunity to all of our citizens. In order to do this, it is critical that we manage our finances in a considered manner that gives life to the commitment we make to those who live and work in our city.
Fiscal probity, clamping down on corruption, and strategic spending on a broad scale are the drivers of real and lasting change.
Statement issued by Alderman Ian Neilson, Executive Deputy Mayor of the City of Cape Town, July 30 2014
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