The Mossel Bay Municipality received a clean audit for the 2011/2012 financial year, the Auditor-General announced in Cape Town on Monday, 3 December 2012.
Mossel Bay is one of only five Western Cape municipalities to have received clean audits in 2012/2013 - the others being George, Swartland, Langeberg and the West Coast District Municipality. This followed four successive financially unqualified audits for Mossel Bay in recent years.
“To say that I am over the moon would be to put it mildly. Although it is not known yet how Municipalities fared in the rest of the country, the fact that only five municipalities in the Western Cape achieved clean audits shows what an achievement this is and that there are probably also not many other clean audits elsewhere in the country,” said the Executive Mayor, Alderlady Marie Ferreira.
“Last year only two Western Cape and just 13 out of 343 municipalities country-wide received clean audits.
“The Auditor-General’s audit is extremely strict and goes much wider than just a financial audit. A municipality’s compliance with, for example, the Municipal Finance Management and Municipal Systems Acts and its performance management reporting against objectives, are also audited.
“Although a Municipality can therefore achieve a financially unqualified audit - to signify that its financial affairs are perfectly in order - it may not get a clean audit if there are adverse findings on any of the other aspects that are audited. This could sometimes boil down to a difference of opinion between the auditors and the municipality over the interpretation of a single clause in an act,” she said.
The Mayor said Mossel Bay Municipality was one of few municipalities in the country that did not make use of consultants to implement the Generally Accepted Municipal Accounting Practices as well as Generally Recognised Accounting Practices (GAMAP/GRAP), as required by the National Treasury, or to do its annual financial statements and annual report.
“This saves the Municipality in the order of R2 million annually in consultancy fees in this regard, and is indicative of the expertise as well as the quality of management and personnel which the Mossel Bay Municipality has.
“This achievement together with the constant stream of awards, including for service delivery, received by the Municipality over the past number of years again confirms Mossel Bay growing reputation as one of the best municipalities in South Africa,” said Mayor Ferreira.