Knysna Achieves Unqualified Audit Result: A Testament to Improved Financial Health and Governance

In a significant stride toward financial transparency and accountability, the Knysna Municipality has been awarded an unqualified audit result for its 2023/2024 financial year. Knysna’s Municipal Manager, Lulamile Mapholoba, has hailed this achievement as a testament to the improved health of the municipality's financial statements and overall operational efficiency.

The municipality has in recent years grappled with issues related to material misstatements in asset and liability management. However, this year's audit reflects substantial advancements, with resolutions to previous discrepancies and enhanced control systems firmly in place. This commendable progress comes amid abundant challenges, signaling a robust administration dedicated to reform and efficient governance.

Knysna's strategic utilization of R215 million in grants has played a pivotal role in supporting essential projects, further illuminating the municipality's effective grant management. These fiscal accomplishments have been crucial in the municipality's journey towards obtaining an unqualified audit.

One of the powerhouse strategies that drove this success was the implementation of a budget funding plan that has shown promising results in stabilizing Knysna’s financial health. Additionally, the municipality has achieved a reduction in electricity losses and improved liquidity ratios, indicators of heightened financial discipline and strategic resource management.

Executive Mayor Aubrey Tsengwa commended the strides made in governance, viewing them as a milestone not just for Knysna or the Western Cape Province, but as a standard for national emulation. The Section 154 support plan developed in collaboration with the Provincial Government has been instrumental in achieving these results.

Despite the positive outcomes, challenges persist, particularly in internal control enhancements and supply chain management. Nevertheless, the leadership remains committed to maintaining the momentum gained and addressing these issues to ensure ongoing improvement in service delivery and financial stability.

The success narrative of Knysna’s unqualified audit result is built on a foundation of collective effort and resilience by all members of the municipal staff, underpinned by robust governance and strategic financial management planning. It sets a benchmark for other municipalities and provides a hopeful outlook for Knysyna's fiscal future.