CDM Municipality
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Capricorn District Municipality has, for a fourth consecutive year, received an unqualified audit finding. Unqualified audit outcome means that the Auditor-General is satisfied that CDM’s books have complied with municipal finance management laws and treasury regulations and that every cent that was spent has been accounted for; and that CDM’s annual performance report is credible.
“It is a wish of every institution to want to achieve good audit performance, but there is a lot of work, skill and commitment that go into achieving it. It is more than just about accounting. It is about compliance and accountability”, Executive Mayor, Cllr John Mpe said during a Council meeting held recently, explaining such a great achievement did not come easily, “given the circumstances and conditions under which the administration performed, which included the high staff turnover in management, operating without the Municipal Manager, the Chief Financial Officer, the acting capacities in senior management and other adverse factors,” he said.
In the previous three financial years when the Municipality received the same audit outcome, the Acting Municipal Manager, Ms Thuso Nemugumoni, vowed during annual report public hearings that CDM was committed to sustaining the audit performance and such a finding continues to inspire the Municipality to work even harder and smart towards clean audit.
A year later, the office of Auditor General was pleased with CDM’s financial position and gave the Municipality Unqualified Audit Opinion for the financial year 2016/17.
“This means that we are succeeding in the implementation of our internal controls and how we report. The fact that we managed to satisfy the AG yet again in this reporting period means we are getting the basics right, and thanks to our sound financial management systems and strong political will”, Executive Mayor said.
In his commentary on the audit finding, it was observed that “the Auditor-General has found that CDM’s financial statements present fairly, in all material respects, the financial position and the financial performance of the Capricorn District Municipality as at 30 June 2017”. The Auditor-General did not identify any recurring deficiencies in CDM’s financial reporting but rather matters that should be attended to, so that the Municipality can make advances towards clean audit.
It is for this reason that a draft audit action plan was presented in the Council of the 14th December 2017 to address all matters that have been raised in the Audit Report.
