On 30 January 2019, the City of Joburg tabled its Integrated Annual Report for the 2017/18 financial year, which included the findings from the Auditor General (AG).
In the year under review, the City achieved an unqualified audit opinion with material findings, as it has for the past years reviewed.
Despite the many challenges faced, the AG has found that the City remains in a position to meet its financial obligations, which will allow for continued service delivery to Joburg residents.
The AG’s report to the City stated: “The annual financial statements indicate a solvent position, highlighted by a net current asset position. This is an improvement from the prior year.”
Further, the AG notes that there was an improvement on the City’s working capital position, as well as cash flow from operating activities, which are both positive at year-end compared to the prior year’s negative position.
The City promised to make a concerted effort to manage its cash flow and generate cash-backed surpluses to fund future capital expenditure.
In addition, the AG’s assessment indicated that on average, the City takes 32 days to pay its suppliers. This is an improvement from the prior year’s 48 days (restated), however, the days in which the invoice remains outstanding are still outside the prescribed period of 30 days. This is an aspect the City has also promised to work towards improving upon. The City recorded a surplus of R 1 375 882 000 as compared to R1 070 611 000 prior.
Meanwhile, while the AG noted that the City’s senior management vacancy rate remains high, Executive Mayor, Herman Mashaba said that was an area the City was working on. The City has subsequently filled the critical positions of Chief Technology Officer, Chief Operations Officer and Group Chief Financial Officer.
In terms of its entities; Joburg Water managed to replace 45.4 kilometres of sewer pipes against a target of 33.5 kilometres - translating to 135.5% over-achievement. In providing services to informal settlements, an additional 620 informal dwellings were provided with access to basic sanitation. Meanwhile, the percentage compliance with drinking water quality standard (SANS 241) on E-Coli was 99.9% against a target of 99%. This positive achievement will enable the City of Johannesburg to retain its Blue Drop Status.
On City Power, the entity installed 1 374 public lights against a target of 1000, and electrified 2 167 units in informal settlements compared to a target of 810. The Johannesburg Social Housing Company (JOSHCO) delivered 1 159 housing units.
The Johannesburg Roads Agency managed to resurface approximately 301, 12 km of roads, against an annual target of 250 km across the City – spending a total capex budget of R162 million on road resurfacing Citywide.
