Audit records improve for KZN’s municipalities

2010-12-16 00:00

DESPITE a plethora of challenges — including the brain drain in financial management for most rural municipalities — KwaZulu-Natal municipalities managed to significantly reduce the number of municipalities that received disclaimers and qualified opinions during the 2009/2010 financial year.

Co-operative Governance and Traditional Affairs MEC Nomusa Dube announced this when she presented the audit report on KZN municipalities to the media in Durban yesterday.

In the latest audit analysis, the province reduced its disclaimed audit opinion from nine to only one, while only five municipalities received qualified opinions compared to eight received in the previous financial year.

Only the troubled Edumbe Municipality in northern KZN received a disclaimer, while Indaka in the uThukela district received an adverse opinion.

Other municipalities that received qualified audits for the 2009/2010 financial year are Msunduzi, Mfolozi, Newcastle, Nquthu and Okhahlamba.

Among the 56 of 61 that submitted reports on time, the number of municipalities that received unqualified reports increased from 44 to 50. Five municipalities submitted their report after the statutory deadline of August 31.Their reports are still being audited.

Dube commented: “It is our view that the finances of municipalities are spent and managed properly. It restores confidence in their leadership of government and strengthens the provision of services to communities.”

She said her department will ensure that there are no performance bonuses for all senior managers in municipalities that were late with their audit report submissions and that disciplinary action is taken against those officials.

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