The City of Johannesburg has received an unqualified audit opinion from the Auditor General (AG). This was revealed in a report tabled before the full sitting of Council on Thursday 30 January.
An unqualified audit report means that the AG does not have any reservations concerning the financial statements that were submitted to him.
Member of Mayoral Committee (MMC) for Finance, Geoffery Makhubho said the clean audit is one of the key indicators to show that the governance and the financial position of Johannesburg are in excellent shape. “The Auditor General’s Report will give Joburg residents, the business community and investors the assurance that this is a well-run city which adheres to the highest standards of corporate governance and financial controls,” MMC Makhubho added.
According to the MMC, the AG found that billing issues and problems with uncollected revenue, two problems that have haunted the city in recent years, are now under control. “This is the clearest indication yet that our Revenue Step Change Programme and our efforts to clean up the quality of data on the billing system are achieving positive results. The City collected 92% of revenue billed and intends to improve this to 97% in the coming financial year.”
He added that the city made a surplus of R3.4 billion and the net assets improved by 13% to R30.4 billion, indicating that the City is in excellent financial position. “Improved liquidity management enabled the City to increase its cash and cash equivalents by 143% to R5.4 billion. The debt to revenue ratio stands at 38.77%. This is significantly down from 41.24% in the previous year.”
In his report, Chief Financial Officer Reggie Boqo showed that the city had received total revenue of R35 billion in the last financial year. “The findings of our last financial year gave us hope for the clean audit in the next financial year “clean audit here we come.” “The City is financially in good shape,” he added.
Annual Report Annexure A-PDF, Annual Report Annexure B -PDF.