FOR IMMEDIATE RELEASE
TO ALL MEDIA
ATT: NEWS EDITORS AND REPORTERS
31 MARCH 2021
THE CITY OF UMHLATHUZE RECLAIM CLEAN AUDIT STATUS
The City of uMhlathuze Mayor Councillor Mduduzi Mhlongo is elated over the Unqualified Audit Opinion also known as Clean Audit, presented by the Office of the Auditor General at Full Council yesterday.
The City’s stringent measures imposed to ensure the return to clean governance in the 2019/2020 financial year was commended by the Office of the Auditor General in their presentation.
The measures were implemented following a slight digress in the 2018/2019 financial year where the City was penalised for “misinterpretation” of a certain section of the legislation.
Mayor Mhlongo ecstatically appreciated excellent oversight work played by Finance Portfolio Committee, Executive Council of which he leads, Full Council, Municipal Public Accounts Committee (MPAC), Audit Committee, Finance Team, Internal Audit, Accounting Officer and entire administration for hard work in ensuring that the City goes back to the Clean Audit.
“As the municipality, we are very excited with the outcomes of the Audit for 2019/2020 Financial year. For us, this is not an opportunity to be complacent but it is an opportunity to improve and reverse some of the issues and recommendations raised in the report. We want to make sure that we continue to be the best example of leadership in the country and KZN in particular,” Mhlongo said.
Mhlongo said the city had to introspect on the previous audit. “We were coming from a record of five consecutive years of Clean Audits and taken aback by the bizarre outcomes in the last financial year where we were castigated for doing what we thought is correct. We had to pull ourselves from that and put measures to ensure that we do everything according to the book,” Mhlongo said.
The Auditor General’s Office cites multiple progressive measures implemented by the City of uMhlathuze to obtain positive results such as improvements in the contract management and strict monitoring in compliance with all prescripts and legislation.
The AG emphasised that during the audit, uMhlathuze was not found wanting on compliance with prescripts, provided reliable and credible performance information and a clear financial statement. The AG found all financial systems in the city to be healthy.
Key controls cited by the AG are effective leadership, oversight responsibility, sound policies on the supply chain management section, functioning Audit Committee and proper record keeping. The AG also found the city did not incur any Fruitless, Wasteful, and Unauthorised expenditure.
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