SALGA COMMENTS - THE STATE OF LOCAL GOVERNMENT FINANCES AND FINANCIAL MANAGEMENT REPORT

18 Jan 2012

 

12 JANUARY 2012: The State of Local Government Finances and Financial Management Report as at 30 June 2011 gives an overview of municipal finances within a determined period. It is imperative to note that the financial performance of municipalities should not be looked at in an isolated year but should focus on trends over time. Not every detail of the said report is commented on but the statement summarises the tone and highlights reflected in the report.

 
Audit Outcomes
 
The report notes that there has been an improvement in municipal performance since the beginning of the second term off office and its penultimate year. In four years Local Government went from 19 adverse opinions to seven, disclaimers were halved from 104 to 53, a combined 48% reduction of poor audit outcomes, which is something that should be noted. In the same breath municipalities moved from 55 unqualified audits to 127 in those four years.
 
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