Another clean audit for Drakenstein
2010-02-18
Drakenstein Municipality has in the last two years experienced a turn around in financial management. This municipality is in a position to achieve a totally unqualified audit report,” says Donovan Alexander of the Auditor General’s office. He emphasised that Drakenstein Municipality is one of a few high capacity municipalities that has received a clean Audit Report for the past financial year. “Drakenstein Municipality did a lot of work and are very pro-active in their financial management and that has resulted in a clean Audit Report,” said Alexander. “In my opinion, the financial statements present fairly, in all material respects, the financial position of the Drakenstein Municipality as at 30 June 2009 and its performance and cash flows for the year then ended, in accordance with the basis of accounting determined by the National Treasury and set out in the manner required by the Municipal Finance Management Act,” said Terence Nombembe from the Auditor General’s office. He emphasised that this was a very clear indication without any doubt that financial management was implemented in line with the Council’s accounting policy and statutory measures and guidelines. “There is more to be proud of: Drakenstein Municipality submitted financial statements complying with the Generally Accepted Municipal Accounting Practices for the last three years, despite an exemption granted by the former Finance Minister Trevor Manuel,” said Nombembe. According to the Auditor General one of the benefits of receiving a clean Audit Report is strengthened investor confidence, as the Drakenstein Municipality is able to improve its credit ratings. “Improved credit ratings will reap benefits for the Drakenstein residents through better service delivery as well as possible employment opportunities and socio-economic development during these difficult times,” added Nombembe. Drakenstein Municipality received an A-plus credit rating last year from Moody’s Investors Services with a stable outlook to Drakenstein Municipality, reflecting a number of factors including a moderately diverse and steadily growing local economic base. The rating also reflects that the financial management and budget planning are conservative, but borrowing levels are increasing rapidly due to the municipality’s investment in infrastructure in an effort to eradicate backlogs. The Portfolio Holder of Finance, Councillor JT Basson, said he was proud to be the Portfolio Holder of Finance at Drakenstein. “Congratulations to the Municipal Manager, Dr Sidima Kabanyane, the Executive Mayor, Councillor Charmaine Manuel, the Executive Director of Finance, Cavin Petersen, and his team.” The Auditor General aims for continued improvements in excellence, financial stability, accountability and responsibility. Drakenstein Municipality views the achievement of a clean Audit as both a milestone and a building block for the future and that achieving a clean audit has taken the municipality closer to its goal of building Drakenstein into a world-class town.
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