The Auditor-General of South Africa (AG) has asked the Speaker of the National Assembly to intervene in the slow financial reporting of municipalities.
Several municipalities have not yet submitted their audits for the previous year, with several large municipalities submitting audit disputes.
However, AG Tsakani Maluleke commended government for assisting in increasing the number of municipalities who had submitted their financials on time.
More municipalities meet deadline
Maluleke wrote to Speaker Thoko Didiza on Tuesday to update her on the progress on municipal audits and the submission of annual financial statements.
The AG was happy to relay to Didiza that all municipal annual financial statements had been submitted, however, some were submitted late, creating delays in conducting audits.
Annual financial statements refer to an entity’s own financial records, while audits are independent examinations of those records.
Maluleke stated that 230 of South Africa’s 257 local government entities had submitted their audits before 30 November – an increase from 206 from the previous financial year.
As of 31 January, that number had increased to 248, leaving just nine entities with outstanding audits.
These are the Kheis local municipality in the Northern Cape, as well as Buffalo City Metropolitan Development Agency in the Eastern Cape.
In the Free State, Matjhabeng, Nala and Maluti-A-Phofung local municipally and its water board all submitted their financials late, delaying audits.
In Gauteng, Ekurhuleni and Johannesburg have submitted audit disputes, as has the City of Cape Town.
‘Timely submission’ a concern
Maluleke stated that municipal entities must submit annual financial statements within two months of the end of the financial year, as the AG is due to submit its own report to parliament by 31 October.
“The timely submission of quality financial statements by accounting officers in local government remains a concern.
“Although our audit teams work closely with affected auditees to improve the discipline in this area, more sustainable solutions require continuous oversight,” wrote Maluleke.
The AG expressed her gratitude to the relevant portfolio committees who had assisted, but asked Didiza to help ensure greater compliance.
“Madam Speaker, may you consider exercising your authority in terms of the rules of the National Assembly and take any appropriate steps that may address the concerns raised.
“My office and I remain available to support Parliament and all other roleplayers in the quest for sound, sustained financial and performance management in the local government sphere,” Maluleke concluded.
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