George Municipality confirms that it received an unqualified audit opinion, with one matter raised. The financial statements present fairly, in all material respects for the financial position as at 30 June 2020, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Municipal Finance Management Act 56 of 2003 (MFMA) and the Division of Revenue Act 16 of 2019 (Dora). An Unqualified opinion is defined as an auditor’s opinion that the financials are fairly presented in all material respects.
The matter raised refers to the accuracy of the Indigent Database. It must be noted that George Municipality runs annual awareness campaigns around the registration of Indigents on the database as well as auditing of the older applications. The implementation of the standard annual actions for 2020 was however hindered by challenges arising from the Covid-19 pandemic. The Financial Services Directorate ran an awareness campaign in February of this year around Indigent Registration and the importance of updating information with the department and will continue to put in place internal control measures to ensure that the database is accurate.
George Municipality remains committed to the principles of good governance and continues to practice the principles and procedures required to maintain our fiscal discipline and stability. Our officials remain committed to delivering services of a high quality, continued good governance and compliance with legislation.
1. AFS – Audited Financial Statements
2. Qualified Opinion – The financial statements contain material misstatements in specific amounts, or there is insufficient evidence for us to conclude that specific amounts included in the financial statements are not materially misstated.
3. Unqualified Opinion The financial statements contain no material misstatements. Unless the Auditor-General expresses a “clean audit outcome”, findings have been raised on either reporting on predetermined objectives or non-compliance with legislation, or both these aspects.
4. Clean Audit – The financial statements are free from material misstatements (in other words, a financially unqualified audit opinion) and there are no material findings on reporting on performance objectives or non-compliance with legislation.