Western Cape Government welcomes Audit outcomes

Statement by Minister of Local Government, Environmental Affairs and Development Planning, Anton Bredell.

The Department of Local Government in the Western Cape, has welcomed the Auditor-General’s report on audit outcomes for municipalities in the province.

“Overall we are pleased to note that 25 out of thirty municipalities in the province received unqualified audit opinions. Of those 25, a total of 12 councils also achieved the Clean Audit status. We have come a long way if one recalls that in 2009 there were no clean audits in the province,” says Anton Bredell, Minister of Local Government, Environmental Affairs and Development Planning in the province.

Bredell says councils are increasingly struggling with severe ongoing financial constraints due to the country’s economic challenges.

“Despite this situation, we note that the AGSA found not a single council in the province owed Eskom a cent for the period under review and in addition only a single council in the Western Cape was considered to be financially vulnerable. With regards to the few areas of regression, we take note of them and we are already addressing the problem areas.”

Bredell says the difference between a clean and unqualified audit is often a technical issue which could include late submission of paperwork or the incorrect or incomplete classification of transactions.

“This was also the first year that councils had to adhere to a new compliance measure which presented some challenges.”

The action steps the province is already implementing to address any shortcomings include:

1. The Department of Local Government is coordinating a process Province-wide, compiling support plans for each municipality to address short, medium and long term challenges of which addressing audit findings is one.
2. Provincial Treasury is assisting municipalities to develop Audit Action Plans to address audit findings. There is regular interaction between the PT and the municipalities to address any queries.

The results for the Western Cape were as follows:

Clean Audit Outcomes: 12 municipalities.

Bergrivier, Breede Valley, Cape Agulhas Cape Winelands District, Cederberg, Hessequa, Matzikama, Overberg District, Overstrand,

Swellendam, West Coast District and Witzenberg.

Unqualified Audit Opinions: 13 Municipalities.

Bitou, Central Karoo district, City of Cape Town, Drakenstein, Garden Route district, Knysna, Langeberg, Mosselbay, Prins Albert, Saldanha Bay, Stellenbosch, Swartland, Theewaterskloof.

Qualified Audit Opinions: 3 Municipalities.

Beaufort-West, Oudtshoorn and George.

Outstanding: 2 Municipalities.

Laingsburg and Kannaland.

Definition of Outcomes:

Clean Audit Outcomes: The financial statements are free from material misstatements and there are no findings on reporting on performance objectives or non-compliance with legislation.

Unqualified Audit Opinions:

The financial statements contain no material misstatements. Findings may have been made on either reporting on predetermined objectives or non-compliance with legislation, or both these aspects.

Qualified Audit Opinions:

The financial statements contain material misstatements in specific amounts, or there is insufficient evidence for us to conclude that specific amounts included in the financial statements are not materially misstated.

The Province had no Adverse Opinions or Disclaimers.

ENDS.