LEPELLE-NKUMPI LOCAL MUNICIPALITY

Unqualified Audit Opinion For Lepelle

Lepelle-Nkumpi Local Municipality’s (LNM) efforts towards attaining a clean audit received a boost when the Municipality received an Unqualified audit opinion from the Auditor- General of South Africa (AGSA), this for the first time in 10 financial years.

The audit opinion, with material findings, noted that the Municipality is in a solvent position and able to meet its financial obligations. The financial statements were presented fairly, in all material respects for the financial position as at 30 June 2020. Financial performance and cash flows for the year under review were in accordance with the South African Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) and the Division of Revenue Act, 2019 (Act No. 16 of 2019).

The AG’s findings are contained in the Municipal Integrated Annual Report for the 2019/20 financial year, which was tabled in Council on Monday, 31 May 2021. The Auditor- General notes an improvement in the Municipal working capital position, as well as cash flow from operating activities, which are both positive at year-end compared to the negative position the year before.

Lepelle-Nkumpi Municipality Mayor, Cllr Meriam Molala has welcomed the findings, saying that since taking over the reins in the Municipality, her administration has ensured budgetary processes focus on the urgent needs of indigent communities, through investment in infrastructure, provision of free basic services and the growth of the local economy.

“This is indeed a good story to tell, it is a great achievement. We have indeed registered significant audit improvement for the 2019/2020 financial year. The hard work and commitment of our management and officials, oversight by our Council has paid off. We will continue in our concerted efforts to manage our cash flow and generate cash backed surpluses to fund future capital expenditure”, Cllr Molala explains. The Mayor further urged management not to relax and regress on this achievement, and they should work hard to improve the Unqualified opinion to a clean audit opinion. It also the first time, that the Municipality has tabled a total budget of R 563,067,503.14 for the 2021/2022, as compared to previous financial years.

The AG also acknowledged the Municipality’s implementation of consequence management resulting from the Independent Forensic Consultant investigation on allegations of employee misconduct, fraud and other irregular activities which covered the period 2017/2018 to 2019/2020.