The Sedibeng District Municipality reached a momentous milestone on 3rd December 2013, when the Auditor General of South Africa released its 2012/2013 Audit Opinions on Gauteng Municipalities. The District Municipality became the first, and only, municipality in Gauteng to reach the 2014 target of Operation Clean Audit.
Operation Clean Audit was launched in 2009. Audit opinions on the affairs of government departments are expressed in terms that are often not understood by the general public. The worst opinion is an ‘Adverse Opinion’ which states that the financial statements do not fairly present the financial position, results of operations, and changes in financial position, in conformity with generally accepted accounting principles. A ‘Disclaimer’is a special type of audit report that is issued when the auditor could not form, and consequently refuses to present an opinion, on the financial statements. A ‘Qualified’ opinionmeans that the auditor has taken exception to certain current-period accounting applications or is unable to establish the potential outcome of a material uncertainty. An ‘Unqualified’ option is a favourable outcome that has no reservations concerning the financial statements. This is also known as a favourable opinion meaning that the financial statements appear to be presented fairly.
The ‘Clean Audit’ target was a special target set by CoGTA since audits of public departments require more than just financially unqualified findings. A ‘Clean Audit’ is therefore based on three factors. Firstly, the financials must be unqualified. Secondly, the Performance of the institution must be managed consistently, reliably and accurately. Thirdly, an institution must have no areas of non-compliance with laws and regulations.
At a function held at ThabaYaBatsawana today, the AG handed over the final Audit outcomes to all Gauteng Municipalities and municipal entities for the 2012/2013 financial years. Sedibeng District Municipality was the only municipality in Gauteng to achieve the ‘Clean Audit’ status. Three other municipal entities achieved clean audits. The three local municipalities in Sedibeng, that of Emfuleni, Midvaal and Lesedi all achieved Unqualified Audits which shows that all municipalities are well on track to meet the 2014 OPCA targets.
In her address to the meeting of all Gauteng Mayors and Municipal Managers, the Corporate Executive of the Auditor-General of SA (Gauteng) Ms MabathoSedikela described Sedibeng District Municipality as “a beacon of hope for all Gauteng Municipalities”. The Executive Mayor of Sedibeng District Municipality, Mayor Mahole S Mofokeng, was quick to point out that this bodes well for the new Metro to be established in 2016 in the Vaal.