Capricorn District Municipality

Sets the bar high with another clean audit

Capricorn District Municipality has proved to be a consistent benchmark for other municipalities in terms of perfecting financial management systems to achieve a clean audit.

For the second year in a row, CDM managed to cement its place at the top as one of the 27 municipalities in the country to achieve a clean audit opinion for the 2019/20 financial year from the Auditor-General.

Still the only one in Limpopo, this clean audit confirms that CDM has got revered financial management and governance systems in the province, and among the best in the country. It also confirms that “we have once again managed to ensure that every cent that was spent from the budget was fully accounted for, with not a single transaction of irregular or wasteful expenditure”, says Executive Mayor Cllr John Mpe.

“This was not an easy feat”, he says. ”Clean audit is a result of extensive process and by definition, not just a finger-click away. Several cross-cutting and transversal challenges had to be surmounted in order to present credible financial statements to the Auditor-General that honestly reflect the state of affairs in that reporting period”, Mpe says.

He explains that before the first clean audit, CDM achieved an unqualified audit opinion for five consecutive years. He says in 2016, they made a promise when they assumed their term of office to build adequate competent internal capacity to perfect their financial management system.

Executive Mayor: Cllr. John Mpe

This resulted in transitioning from an unqualified audit with 18 findings in 2015/16, to 8 findings in 2016/17, and then to a mere 1 finding in 2017/18 - and eventually made history by achieving a clean audit for two years in a row – 2018/19 and 2019/20.

This, he says, is not CDM’s historic achievement alone, but for all local municipalities in the District. Through requisite support given to them to help them account better for water services transactions, they were also able to improve their own audit performance. “I therefore wish to take this opportunity to congratulate Molemole, Blouberg and LepelleNkumpi local municipalities for achieving unqualified audit for the financial year 2019/20. We are concerned about Polokwane for having regressed over the years from unqualified to qualified audit performance since the last financial year and maintaining such qualified outcome this year. We are however comforted and encouraged by the fact that in the past year, no municipality in our District received an adverse or disclaimer audit opinion. This improvement means that the entire district is closer to perfecting financial management systems by clearing all findings and achieving key aspirations of Operation Clean Audit”, Mpe says.

A clean audit opinion therefore speaks volumes about CDM’s commitment to compliance with the financial and audit management systems and processes. “Our aim now is to ensure that we channel the same energy and commitment into getting our performance audit right so we can connect it to accelerated and tangible service provision to the rural and poor communities in our district”, Mpe says. This means a clean audit must mean something to ordinary people in our communities by translating it into everyday delivery of services such as water supply, sanitation, disaster management, local economic development, spatial planning and land use, among others.

Every entity, whether private or public, has a goal to achieve a clean audit. But that doesn’t come cheap or easy. There is a lot of work, skill and commitment that goes into achieving it. It is more than just about accounting. It is about compliance and accountability.

Mpe says for CDM it all began by laying a proper foundation through recruitment and retention of qualified and skilled personnel with the capacity to meet the complexities of accounting better for every cent spent in the budget. “We make staff appointments based on nothing but merit”. He says most organs of State can achieve their targets if they get this right.

CDM’s clean audit also speaks volumes about the municipality’s commitment to be consistent in living up to its vision as the ‘Home of Excellence’ on which other district and local municipalities can benchmark. “But credit goes to all employees for keeping us at the top by living up to our mission ‘to deliver in an efficient manner through competent people, and we hope that this will go a long way in inspiring other municipalities to do better and improve governance”, Mpe explains.

Executive Mayor with Members of the Executive Management of CDM led by Thuso Nemugumoni in Pink dress

Executive Mayor receiving clean audit certificate from Auditor General office in Limpopo

He also thanked the Municipality’s Audit Committee and Municipal Public Accounts Committee (MPAC) for their contribution to the clean audit achievement, and for keeping the municipality in check to do well in matters of governance and delivery. He added that it was not by accident that CDM managed to please the office of the Auditor-General for a second year in succession, and for that, he certified CDM as the best in managing finances, accounting better for the monies and for compliance to local government financial management laws and regulations.

As municipalities have concluded their financial year on 30 June, confidence lingers high that CDM intends to retain the clean audit. Mpe has committed that, “with the right guidance, oversight by MPAC and other Council Committees and political will, CDM remains on the right track to retain the clean audit for a third year in a row”.