The two stumbling blocks threatening the municipality's chances of getting a clean audit for the last financial year are imbalanced accounts and funds received that the municipality cannot account for.
This was announced by Municipal Manager, Ntombi Baart at the council chambers on Wednesday, while addressing a visiting Member of Parliament Nomhle Dambuza.
The two stumbling blocks threatening the municipality's chances of getting a clean audit for the last financial year are imbalanced accounts and funds received that the municipality cannot account for.
This was announced by Municipal Manager, Ntombi Baart at the council chambers on Wednesday, while addressing a visiting Member of Parliament Nomhle Dambuza.
Dambuza, the Human Settlements Committee chair, was in Grahamstown with her team of committee members and officials from the Department of Human Settlements, to be briefed about the challenges that the municipality faces.
Executive Mayor, Zamuxolo Peter said that for three consecutive years, they have received bad audit results. "We have taken a position where we will not allow this to happen again," he said, adding that balancing the municipality's accounts has been a big challenge and that the Department of Local Government and the Auditor General's office have been giving Makana a lot of support to get better results.
Another challenge hampering a clean audit is the R65 million which officials can't account for, Baart said in a presentation. The huge sum is currently sitting as unreceipted amounts in the municipality's suspense account.
Baart listed other problems:
* Effective implementation of the audit action plan to address the Auditor General's disclaimer audit opinion. She said assistance has been sought from the local government and National Treasury to implement an adopted municipal finance management act (MFMA) plan to ensure effective implementation.
* Lack of financial technical expertise and strategic leadership in the finance directorate.
* Decentralisation of the tender process. At a previous meeting Baart mentioned that senior officials and directors have been meddling with the procurement process – a function belonging to the municipality's supply chain unit. But she said that employees are alleging that the procurement process is delaying service delivery.
* Inefficient and incorrect monthly financial reporting. Baart said they were starting to implement monthly cash flow projections and reporting.
* Limited understanding of the MFMA.
* Incorrect budgeting. The mayor also spoke about an unhappy workforce that went on strike recently. "Last Friday, the Makana Municipality came to a standstill as workers downed their tools because they felt that issues raised by the unions were not taken seriously." He said that the MM had to address 200 to 300 workers in the Town Hall on Friday where they spent three to four hours discussing their grievances. He added that they resolved to meet with the leadership of the South African Municipal Workers Union on Thursday, 1 December.
