KNYSNA NEWS - In response to the Knysna Municipality having received a financially unqualified audit with recommendations for the 2016/2017 financial period, mayor Eleanore Bouw-Spies has pledged to fully address issues raised.
“We take cognizance of the Auditor General’s (AG) report and are fully committed to address the issues raised by the AG.
"It must be remembered that Knysna suffered a tumultuous time following the Knysna fires that ravaged the area on 7 June 2017, stretching our limited resources to the hilt. Despite this, we received an unqualified financial audit, an achievement for which the AG commended us.”
A financially unqualified audit opinion is explained by the AG as financial statements that contain no material misstatements.
Unless they express a clean audit outcome, findings have been raised on either reporting on predetermined objectives or noncompliance with legislation, or both these aspects.
In the case of Knysna it was in relation to two issues concerning predetermined objectives.
Both are expected to be addressed as part of the Operation Clean Audit Report (OPCAR) by 30 June 2018.
Bouw-Spies further expressed her gratitude to CFO Mbulelo Memani and his team.
“I applaud and thank our CFO and his staff who worked so hard for achieving this financial outcome. Especially if we take into account the extreme pressure that this team faced when their financial year-end fell, only three weeks after the fires.”
She said steps have already been taken to address issues raised. “I have twice met with provincial finance MEC Dr Ivan Meyer, to discuss solutions highlighted by the AG.”
Bouw-Spies added that she had requested the support from Dr Meyer. “Adequate procurement planning is imperative to strengthen the management of procurement, compliance with supply chain regulations, and supporting service delivery.
"I have asked that an experienced person be seconded to the Knysna Municipality for a period of three months, to assist us with fast-tracking procurement processes, developing a procurement plan for the 2018/2019 financial year, building management awareness of compliance and the key procurement concerns raised by the AG, recommendations to strengthen the municipality’s supply chain system and contract management.”
The mayor reiterated the importance of resolving issues highlighted by the AG.
“It is our top priority to resolve issues raised by the AG, especially the contract management issues. We will ensure that these are addressed.”
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