Tshwane Strives for Better Audit Outcomes Amidst Last Year's Adverse Findings

Following an adverse audit finding for the fiscal year ending in June 2022, the City of Tshwane stands at a crossroads as they await the audit outcome for the 2023-24 financial year. The anticipation carries a heavy weight, given last year's critical report by the auditor-general (AG) that highlighted significant issues, including missed submission deadlines and irregular expenditure.

Mayor Cilliers Brink of Tshwane has acknowledged that the adverse findings from the previous year are the result of deteriorated systems and oversight accumulating over time, not merely a lapse in a single year. According to Brink, systemic failures and deliberate information concealment from city officials to the municipal council culminated in a stark wake-up call that reverberated through the city's governance and political discourse.

Taking office in March 2023, Brink was realistic about the prospects of immediately overturning the AG's unfavorable audit outcome. The three-month window leading to the end of the 2023 financial year posed a challenge too daunting to expect an instant turnaround. For Brink, the primary aim was to demonstrate an improvement on previous issues and garner the AG's acknowledgement that the city is proactively addressing its shortcomings.

Despite the steep uphill battle, Brink remains forward-looking toward the financial year ending in June 2024. By then, the city aims to secure an unqualified audit, which is vital for rebuilding trust and ensuring procedural transparency. Steps towards this objective have already been taken, including the appointment of a new chief financial officer and the overhaul of financial controls aimed at improving cash flow and trade payables management. Central to these reforms is not just compliance for its own sake but elevating the standard of accountability and ensuring that municipal spending translates into tangible value for the city's residents.

However, despite these improvements, criticism has arisen from various quarters, including councillor Lex Middelberg of the Republican Conference of Tshwane. Middelberg has accused Brink and the city administration of preparing the ground for justifying another poor audit outcome through preemptive 'inoculation'. According to Middelberg, this strategy involves acknowledging the adverse circumstances while underscoring minor improvements to paint an overly optimistic picture of the overall financial health and direction.

As the city awaits the impending audit results, the municipal administration continues its work to reshape the financial landscape. Much remains to be done. The outcome of the audit will be a crucial indicator of the city's true progress and will either validate the steps taken by the administration or echo Middelberg's critique. Nevertheless, the commitment to transparency and accountability will surely be the determining factor in the City of Tshwane's efforts to restore financial order and public confidence.