2009-02-26: Second Unqualified (Clean) Audit Report
JOBURG does it again. For the second consecutive year, South Africa's premier City has received an unqualified report from the Auditor General (AG) Terence Nombembe.
In his report the AG states, "The financial statements fairly present in all material respects a true reflection of the financial position of the City of Johannesburg as at 30 June 2008"
Some salient features from the financial statements for the year ended 30 June 2008 are:
Revenue has grown by 14%
Expenditure has grown by 19%
Operating surplus declined due to pressure as a result of higher inflation
Capital expenditure has increased from R3.3billion in 2007 to R4.1billion in 2008, an increase of 17%
Capital expenditure to revenue has increased from 20% to 23% in 2008
Debt to revenue ratio has increase from 38% to 46% but is still within our target of 50%
Cash and investment balances has increased by 14% from R3, 7billion in 2007 to R4,2 billion in 2008
Net debtors days outstanding has decreased from 66 days to 59 days
"Disclaimers on the City's financial statements are now a thing of the past. The City has worked tirelessly to create a comprehensive asset register, produce consolidated financial statements, confirm the completeness of revenue and build strong financial controls since 2004 when it launched Operation Clean Audit with a focus on tightening its administrative environment", says Councillor Parks Tau, Member of the Mayoral Committeee for Finance and Economic Development.
Of the 16 Municipal Owned Entities (MOE's), this year only 3 received unqualified audit opinion with other matters compared to 8 last year. Other matters include non-compliance with laws and regulations, material changes to annual financial statements and other matters of governance.
Councillor Tau says, "The benefits of attaining an unqualified audit report are numerous, but the most significant is strengthened investor confidence as the City is able to improve its credit ratings. Improved credit ratings will reap benefits for the City's residents through better service delivery as well as possible employment opportunities and socio economic development during these difficult times. The attainment of a clean audit is testimony of the City's commitment to continuously meet the highest possible standards to maintain sound financial management and sustainability".
A visionary political leadership coupled to a dynamic administration with a performance management system in place is paying off. The City of Johannesburg is well on its way to achieving its vision of a world-class city.
Issued on behalf of:
Councillor Parks Tau
Member of the Mayoral Committee for Finance and Economic Development
Issued by:
Virgil James
Spokesperson
City of Joburg
011 407 7226
virgilj@joburg.org.za
