The City of Cape Town has received an unqualified audit opinion with findings for the 2017/18 financial year from the auditor-general (AG).
This is the City’s 15th consecutive unqualified audit opinion, deputy mayor and mayoral committee member for finance Ian Neilson said on Tuesday.
Neilson stated that the findings of the AG largely relate to determining that certain supply chain processes within the scope of the Municipal Finance Management Act were not properly complied with.
“The major cause for the findings relates to contracts that were amended after award without tabling the reasons in Council. In another case, a bid specification was found to have been drafted in a biased manner. This has led to findings of irregular expenditure,” Neilson said.
He further said that the identified irregular expenditures are not fruitless and wasteful as all expenditure concerned is 100% accounted for and has been used for the operation of the City and in delivering services to our communities.
Neilson added that the audit report would be sent to the Council’s Municipal Public Accounts Committee for oversight, further interrogation and recommendation to council for any action required.