Cape Town – The City of Cape Town has received an unqualified audit opinion with findings for the 2017/18 financial year from the auditor-general.
This is the City’s 15th consecutive unqualified audit opinion, deputy mayor and mayoral committee member for finance Ian Neilson said on Tuesday.
In general, the City’s financial performance for the 2017/18 financial year is "dominated by the effect of the extraordinary drought that Cape Town is currently emerging from. The City, however, still maintains its strong position of liquidity", Neilson added.
"The findings largely relate to the auditor-general determining that certain supply-chain processes within the ambit of the Municipal Finance Management Act were not properly complied with.
"The major cause for the findings relate to contracts that were amended after award without tabling the reasons in Council.
"In another case, a bid specification was found to have been drafted in a biased manner. This has led to findings of irregular expenditure.
"It must be noted that these identified irregular expenditures are not fruitless and wasteful as all expenditure concerned is 100% accounted for and has been used for the operation of the City and in delivering services to our communities.
"The City is addressing the contract management shortcomings that have been identified by the auditor-general through its new specialised project management and performance unit and steps are being taken to correct processes.
"The City’s governance and financial management, however, remains sound and strong; and remedial measures have been taken in line with this administration’s emphasis of being an accountable and transparent government.
"The Audit Report will be sent to the Council’s Municipal Public Accounts Committee for oversight, further interrogation and recommendation to Council for any action required."