Unqualified Audit for Emalahleni

Emalahleni Local Municipality in the Eastern Cape has edged closer to a Clean Audit opinion after obtaining an Unqualified opinion for the financial year ending on June 30 last year.

The Auditor-General commended ELM for presenting financial statements which accurately reflect the financial position of the municipality while presenting fairly the financial performance and cash flows in accordance with the South African Standards of Generally Recognised Accounting Practice.

This is the sixth consecutive year that an unqualified audit is obtained by the municipality since 2014/2015 financial year.

This time around very few material shortcomings were highlighted.

The highlighted deficiencies include inadequacy of performance management systems, ineffective system of internal controls for debtors, lack of consequence management for officials who led the municipality to incur unauthorized expenditure, lack of thorough investigation to determine if any person liable for the municipality incurring fruitless expenditure and contravention of SCM protocols and regulations.

In welcoming the audit report Emalahleni Municipality Mayor Councillor Nontombizanele Koni said an audit action plan will promptly be initiated which will focus mainly on prevention and controls.

“Action will be taken against those who might not have performed what is expected of them,” she said.

Mayor Koni commended the work ethics and teamwork among officials and thanked all councillors for the political stability which prevails now at the municipality.

The political and administrative leadership commitment to improve financial management bare fruits of maintaining standards and do things according to the requirements as prescribed in law.

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