"It is not our fault," was the Mayor's reaction to a fourth successive disclaimer opinion from the Auditor General (AG) in the 2011/2012 financial year.
"It is not our fault," was the Mayor's reaction to a fourth successive disclaimer opinion from the Auditor General (AG) in the 2011/2012 financial year.
The bad news was revealed at the tabling of the draft annual report at the first Council meeting of 2013 at the city hall last Friday.
But the municipality's own financial watchdog, the Audit Committee, has placed the blame for shoddy financial management squarely on the shoulders of Makana Municipality's directors.
"A disclaimer is not acceptable in this municipality," Mayor Zamuxolo Peter said at the meeting.
"This is what we committed ourselves to do last year when the Auditor General was here – that we would try our best to improve the finances of this institution."
He blamed limited capacity for the disappointing audit report.
"It is not our fault. For the past 18 months we struggled with no CFO, and with a limited capacity… with all the efforts of our internal audit team, but we see that we have not moved from a disclaimer," Peter said.
He said the suspension of former municipal manager Ntombi Baart and the chief financial officer Jackson Ngcelwane had resulted in a lack of leadership.
This had contributed to the outcome. A disclaimer means the AG could not obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
But the oversight body within the municipality, the Audit Committee, says it's the bosses who are to blame. They say the executive directors miss its meetings.
"In some instances, some of the executive directors did not attend meetings," said Audit Committee representative, Annette Wagenaar.
"Representation was made by a subordinate, who would often come unprepared. The audit committee has been informed by management that the monthly and quarterly reports were not compiled and submitted timeously, as required in terms of legislation."
She said it was concerned with the content and quality of the reports prepared by the Accounting Officer and management during the year under review.
"The audit committee notes with concern the disclaimer of opinion… we also note the particulars of the management action plan in response to the issues raised by the AG in his report. However, we are of the opinion that in the absence of management commitment, it is doubtful that the action plan will be successfully completed," she said.
The Audit Committee was satisfied that the internal audit function was operating efficiently and effectively and that it had addressed identified risks.
"We are, however, concerned that the findings and recommendations of the internal audit are not appropriately considered and addressed by management."
Tabling the response before Council last Friday, she also said the committee's budget wasn't enough to allow it to effectively discharge its responsibilities.
