Northern Cape MFMA audit outcomes 200708 Municipalities

1
Northern Cape MFMA audit outcomes
2007-08Municipalities

• Auditor-General
• 24 March 2009

2
Reputation promise/mission

• The Auditor-General has a constitutional mandate
  and, as the Supreme Audit Institution (SAI) of
  South Africa, it exists to strengthen our
  countrys democracy by enabling oversight,
  accountability and governance in the public
  sector through auditing, thereby building public
  confidence.

3
Northern Cape MFMA audit outcomes 2007-08
Audit completion status
4
Northern Cape MFMA audit outcomes 2007-08
Summary of audit opinions
5
Northern Cape MFMA audit outcomes 2007-08

• Municipalities that improved in audit outcomes
• Kareeberg Municipality moved from a financial
  unqualified (with other matters) to a financially
  unqualified (with no other matters) opinion
• Three municipalities moved from a disclaimer of
  opinion to a qualified opinion
• Gamagara Municipality
• Namakwa District Municipality
• Ubuntu Municipality

6
Northern Cape MFMA audit outcomes 2007-08

• Factors attributable to improvements in audit
  outcomes
• Proper records management
• Availability of key officials
• Compilation and implementation of specific action
  plans to address prior year issues
• Quality of management comments on findings
• Way forward to obtain unqualified audit reports
• Address property, plant and equipment issues
• Further improvement in records management
• Improved and sustained effort with action plans
  to address current and prior year issues

7
Northern Cape MFMA audit outcomes 2007-08

• Municipalities that deteriorated in audit
  outcomes
• Moshaweng deteriorated from a qualified opinion
  to a disclaimer.
• The following fifteen Municipalities have
  continued to receive disclaimers
• Dikgatlong
• Magareng
• Sol Plaatje
• Emthanjeni
• Renosterberg
• Siyancuma
• Siyathemba
• Thembelihle
• Umsobomvu
• Ga-Segonyane
• Hantam
• Karoo Hoogland
• !Kheis
• Kgatelopele

8
Northern Cape MFMA audit outcomes 2007-08

• Factors attributable to deterioration in audit
  outcomes
• Vacancy at CFO level
• Lack of a proper records management system
• Key officials not available during the audit

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Northern Cape MFMA audit outcomes 2007-08 per
district
10
Northern Cape MFMA audit outcomes 2007-08
Qualification items
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Northern Cape MFMA audit outcomes 2007-08
Other matters
12
Northern Cape MFMA audit outcomes 2007-08Issues
driving audit results
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Northern Cape MFMA audit outcomes 2007-08
14
Northern Cape MFMA audit outcomes 2007-08

• Amounts owing to the AGSA as at 28 February 2009

15
Northern Cape MFMA audit outcomes 2007-08
Role of key stakeholders to improve public
financial managementExecutives, Municipalities,
Provincial Treasury should do the following

• Ensure readiness of municipalities to adopt
  appropriately prescribed reporting (accounting
  and performance) frameworks
• Develop action plans with realistic milestones
  on
• - Capacity-building in financial management
• - Governance and oversight
• - Addressing the issues identified by the AGSA
  audit reports and management reports
• Participate in AGSA stakeholder interactions