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CWDM receives 7th unqualified audit report

The Cape Winelands District Municipality (CWDM) has received an unqualified audit report from the Auditor-General for the seventh consecutive year (2002/2003 to 2008/2009).mthat the Auditor-General feels that the municipality followed all accounting rules appropriately and that the financial reports are an accurate representation of the municipality’s financial condition. Therefore, this is all true for the Cape Winelands District Municipality.

The Cape Winelands District Municipality is classified as a medium-capacity municipality that pursues the goals of a high-capacity municipality. The District Municipality implemented the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) (MFMA) well in advance and has adopted the Standards of Generally Recognised Accounting Practice (GRAP) in order to comply with Section 122(3) of the MFMA during the 2004/2005 financial year, whereas it was only required to comply within the 2006/2007 financial year. Council fully comply with the Standards of Generally Accepted Municipal Accounting Practice (GAMAP), GRAP and Generally Accepted Accounting Practice (GAAP) statements and therefore did not apply for any exemptions permitted by the National Treasury.

“The Department: Financial Management Services consists of competent, qualified and experienced officials as Financial Accounting is a specialised field. We have continuous training in accounting standards and keep up with new legislative changes. We are in compliance with all relevant legislation that pertains to local government finances to ensure sound and sustainable management of the financial affairs of the Municipality,” said Mr Gawie Marais, Executive Director: Financial Management Services.

The Auditor-General’s focus involves looking at performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The Auditor considers internal control relevant to the Municipality’s preparation and fair presentation of the financial statements in order to design audit procedures.

An audit includes the financial statements of the Municipality that present the financial position, performance and cash flows for the financial year under discussion in accordance with the basis of accounting determined by the National Treasury and in the manner required by the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) (MFMA) and Division of Revenue Act, 2007 (Act 1 of 2007) (DORA). It also includes evaluating the following: the appropriateness of accounting policies used; reasonableness of accounting estimates made by management; overall presentation of the financial statements – whether resources were obtained and used in accordance with the legally adopted budget.

The core principles that the Municipality strives towards in order to reach this goal and maintain this high standard includes the following: achieving this result as a team effort; applying monthly controls; good leadership from the Accounting Officer and effective decision-making by Council.

“In view of the foregoing and the fact that the Municipality was one of the few municipalities to achieve unqualified audit opinions for seven consecutive years, proves that the standard of the financial management are notably excellent,” Marais added.

Posted on Monday, March 08, 2010 (Archive on Thursday, April 08, 2010)

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