
Picture: North West MEC for Treasury, Motlalepula Rosho/Facebook
By BAKANG MOKOTO
North West MEC for Treasury, Motlalepula Rosho said in an effort to address the persistent challenges faced by municipalities and enhance their financial management and governance systems, her department has successfully concluded a ground-breaking 40-day Audit Action Acceleration Plan (AAP).
Rosho said the culminating session marked a significant milestone in the province’s ongoing commitment to rectify issues highlighted by the Auditor General (AG) in the audit reports of various municipalities. She further said the 40-day AAP, which commenced in June 2023, has been specifically designed to guide municipalities and their entities in navigating the complex landscape of addressing audit-related concerns raised by the AG.
“Under the direction of the Provincial Treasury, municipalities were provided with comprehensive guidance on the roles and responsibilities of each stakeholder. Furthermore, tailored action plans were developed and implemented, outlining specific activities aimed at resolving the identified issues.
“This forward-looking approach also allowed for the continuous monitoring and refinement of these action plans, with the ultimate aim of improving the anticipated 2023 audit outcomes. It is important to closely monitor and support municipalities in order to counter the negative narrative surrounding the province,” said Rosho.
She added that, there is a need for a hands-on support program to facilitate the preparation and submission of Annual Financial Statements (AFS). Rosho also expressed confidence that, this approach would yield enduring results, ultimately leading to enhanced municipal operations and service delivery.
“We are happy with the encouraging progress made since the implementation of the AAP. This is because of the unwavering commitment displayed by various municipalities in addressing the identified issues head-on.
“It is significant to recognise challenges and proactively address them as a means to steer institutions in the right direction through challenges and problem identification. The municipalities will be steered in the right direction upon resolving their issues,” she said.
Rosho cautioned municipalities from avoiding, identifying, and resolving financial problems as stipulated by the Municipal Finance Management Act (MFMA). She underlined the importance of prudent financial management to avoid undue expenditure that could potentially compromise the stability of municipalities.
“As the culmination of the AAP approaches, municipalities are preparing to submit their Annual Financial Statements (AFS) for the 2022/2023 financial year to the AG on 31 August 2023. This critical juncture marks a pivotal moment for the province as the concerted efforts of the Provincial Treasury and municipalities seek to effect lasting change in governance and financial management practices.