Auditor General report

Comments regards the auditor general reports and also CAM reports for year 2023-2024 June

Irregular Spend and Budget Issues:
Irregular Expenditure (R116.66M Pending Approval)

Irregular expenditure incurred during 2022/23 was submitted to council but is still awaiting approval as of 30 June 2024.
Key issues include:
Non-compliance with Municipal Supply Chain Management Regulations (e.g., no competitive bidding for ASLA Housing Implementation Agent appointment).
Interest paid on overdue Eskom accounts.
Fuel procurement issues not following regulatory compliance​
.
Unauthorized Expenditure (R41.79M Awaiting Approval)

Operating budget exceeded by R27.29M, mainly in Engineering Services (R16.7M) and Financial Services & ICT (R9.9M).
Capital budget exceeded by R3.29M, attributed to executive and council spending.
The overspending relates to non-cash items such as leave provisions, debt impairments, and asset depreciation​
.
Fruitless and Wasteful Expenditure (R666.7K Awaiting Approval)

Unjustified expenses on Animal Control operations (medicine procurement, vaccinations, private consultancies).
Accommodation expenses for municipal managers’ forum (R203K), which was canceled without a refund​
.
Material Losses in Electricity & Water Distribution

Electricity loss: 6.95% (R6.21M) in 2024 vs. 6.62% in 2023.
Water loss: 19.6% (R2.51M) in 2024 vs. 19.68% in 2023.
Causes: inefficiencies in distribution systems, possible theft, or infrastructure issues​
.
Budget Deviations & Unaligned Projections

Deviations of R6.44M approved, mainly due to emergency procurements and “impractical or impossible” circumstances.
Budget projections were not aligned to actual historical trends, leading to shortfalls in revenue from property rates and grants​
.
Debt Collection Concerns

Collection rate dropped to 91.21%, impacting liquidity.
While still within an acceptable range, the decline affects the municipality’s ability to cover short-term obligations​.