The auditor-general is set to release the audit outcomes of municipalities today, amid deteriorating local government finances and reporting, with the worst municipalities being in North West, Free State and Mpumalanga. Financial resources available to municipalities have fallen short of meeting service and infrastructure delivery needs over the past 20 years, impeding municipalities’ ability to deliver on their constitutional mandate.
According to the SA Local Government Association , this has been exacerbated by limited tax revenues, retracted economic growth and rising debt levels.Of particular concern to the association is the proposed decrease in equitable share of R6.5 billion, from R84.5 billion in 2019/20 to R78 billion, as well the 0.4% reduction over the MTEF.
Whilst the number of municipalities that achieved a qualified audit with no findings increased from 20 in 2018-19 to 27 last year, poor audit outcomes remain prevalent in many municipalities. Municipalities spent R4.567 billion on salaries of finance units, while splashing another R1.027 billion on consultants, making up 18% of the total financing reporting cost.
He said they received 22 unqualified audits, with no findings results, five unqualified with findings, and only three qualified audits.
Source: News Formal (newsformal.com)
Let me guess ,no improvement but increase in irregularities 😬
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