THE Auditor-General has given the Drakenstein Municipality a qualified opinion after auditing its statements for the financial year which ended in June 2007.
At the mayoral committee meeting last week, the AuditorGeneral, represented by Barry Lodewyk, indicated that the qualified opinion was based on a number of irregularities, including overstatement of long term debtors and accumulated surpluses (R5 million), assets incorrectly expensed (R6,8 m), property of R12,3 million for which no title deed was available, insufficient control over the supply chain management, the absence of an audit committee, the absence of performance agreements with senior staff, the absence of a fraud prevention plan or risk committee, the absence of an approved human resources plan, payments not made within 30 days and overtime of more than 30% of salaries worked by some employees.
According to the acting head of the finance department, Cavin Pietersen, the overtime was due to the number of vacant posts with the result that operations managers had to work more overtime to ensure service delivery, especially in the engineering and electrical department.
“The situation can only improve once all vacancies on the organigram are funded and filled.
“Overtime will however still be applicable as it forms part of the municipality’ s essential and critical services.”
Pietersen has undertaken to rectify matters pointed out by the AG by implementing steps such as a cash management policy.
An audit/performance audit committee chaired by Ashley Seymour (CA SA) of Cape Town was appointed last month. The other members are prof M Bayat, MH Krieg (chairperson performance matters), K Whittles, R Morris, M Burger, CL Mapeyi and AB Richards.
As far as fraud prevention is concerned, it was decided to take up of an offer by the Department of Local Government to develop a fraud plan as part of their Anti-Corruption Strategy (free of charge) and monitored by Province.
Infrastructure projects were not clearly indicated, classified or separated from the capital budget to ensure adequate monitoring of actual expenditure against budgeted expenditure. This will be addressed.
Total under expenditure on infrastructure projects amounted to R12,6 million (13%). This included the Mbekweni multipurpose centre (R5,4m) which was delayed, but will be constructed this year.
