Publications
Partners
Strict controls and consistent monitoring are the secret behind the Ingquza Hill Local Municipality’s clean audit report, according to the two men in charge.
It is one of the few bright spots in a province blighted by irregular and wasteful expenditure of R13.5 billion, which Auditor-General Kimi Makwetu noted in his latest report of the country’s municipalities, made public last month.
Only Ingquza Hill, a small municipality which comprises Flagstaff and Lusikisiki, and the Senqu Local Municipality, which includes Lady Grey and Sterkspruit, achieved clean audits.
The Eastern Cape had 49 auditees: 39 municipalities and 10 municipal entities.
Makwetu’s report on local government audit outcomes nationally showed a 75% increase in municipal irregular expenditure, from R16.2 billion in the 2015/16 financial year to R28.4 billion in the 2016/17 financial year.
Two men at the helm of the Ingquza Hill municipality revealed the secret behind their success.
Speaking from their Flagstaff offices, municipal manager Mluleki Fihlani and chief financial officer (CFO) Mzusekho Matomane said discipline and not allowing politics to interfere with the administration were instrumental in their success.
Fihlani had been at the helm of the municipality since 2006.
“We have been consistent in producing good audit opinions. This is our third consecutive clean audit since the 2014/15 financial year.
“But, like any municipality, we once experienced disclaimers and adverse opinion, for instance in 2009/10. Things started to change in 2010/11 financial year.
“The stability within the political leadership was a great boost for us in making the turnaround.
“But, most importantly, it was putting up systems and appointing top managers with the necessary skills which worked in our favour.
“Luckily, we have always had CFOs who know their work,” said Fihlani.
He said he told his senior managers that ensuring the municipality’s books were in order and that money was not lost through irregular and wasteful expenditure was not only the CFO’s responsibility.
“For instance, when it comes to the preparation of the financial statements, the CFO will just consolidate the figures, as every manager would have had a meaningful input and all of us own the end product.”
He said their councillors knew they could not interfere with the administration of the municipality and could only intervene when there was a need.
Fihlani said he was walking tall because the audit report showed that all that was needed for people to achieve what sometimes looked impossible was willpower and dedication.
Matomane said it was not that hard to achieve a clean audit opinion if people put financial controls in place and monitored them.
He joined the municipality in September, after a successful spell at the Engcobo Local Municipality, where he was responsible for its clean audit for the 2015/16 financial year.
He said CFOs should not be aloof, but interact with ordinary workers, ensure they were happy and familiar with the municipality’s objectives.
“I even worked with interns because everyone must see they have value and are appreciated. First of all you must work with people who are happy. That means you must understand your team, not only your managers. Be part of the team.
“People must get your advice at the beginning of the process, not at the end. You need to work closely with other departments. People must understand the processes and procedures. You make them understand the controls, the purpose and what risks they are trying to mitigate.
“That means the finance department must not work alone in the institution, or as an elite department. When you have controls, monitor them daily, not at the end, when it’s too late,” said Matomane.
ANC provincial secretary Lulama Ngcukayithobi said they were impressed with what the municipality had achieved, given the R13.5 billion irregular expenditure in the rest of the province’s councils.
He said this showed how important it was for municipalities to retain managers.
“The constant changes, both in the political leadership and administration of a municipality, have dire implications for stabilisation of audit outcomes.
“That is why, at leadership level, we can appreciate the necessity to deploy people with skills and support those that are deployed and retain them, to deal with issues.
“We are happy with them and congratulate them,” said Ngcukayithobi.
