Mnquma Local Municipality, which is made up of Butterworth, Ngqamakwe and Centane towns, has proven that the clean audit feat it achieved during the 2021/2022 financial year was no fluke, by getting a second successive clean audit for the 2022/2023 municipal financial year, which ended on June 30, 2023.
Mnquma Local Municipality made history in the 2021/2022 financial year by becoming the first-ever local municipality, under the Amathole District Municipality, to receive a clean audit opinion from the Auditor General South Africa.
The Auditor General South Africa issues a clean audit opinion when audited financial statements are free from material misstatements, and there are no material findings on reporting on performance objectives or non-compliance with legislation.
The news of the second successive clean audit is contained in a management report from the provincial office of the Auditor General South Africa which was presented to municipal authorities in November last year.
“The overall audit outcome of the municipality is unqualified, without findings (a clean audit). This is the same as the previous year’s audit outcome,” read the report.
“Our audit included a high-level assessment of the financial position and key financial ratios of the municipality, based on its financial results to assess its going concern, and also to highlight to management those issues that may require corrective action to maintain financial stability,” the report further reads.
According to the report, based on the high-level assessment, the financial health of the municipality was found to be good and no non-compliance with legislation and other local government requirements on financial management was identified.
The report further highlights that the municipality achieved 95 percent of its targets with 95 percent of its budget for the audit year spent.
Mnquma Local Municipality municipal manager, Silumko Mahlasela, who has received praise for turning the municipal audit outcomes around, previously attributed the clean audit outcomes to good governance and functional systems that have been put in place in the municipality.
Mahlasela previously said,
Meanwhile, the King Sabata Dalindyebo Local Municipality has maintained the unqualified audit opinion it received during the 2021/2022 financial year for the 2022/2023 financial year.
