In response to serious audit failures, Nelson Mandela Bay commits to an action plan focused on improving governance, financial management, and infrastructure maintenance. The Nelson Mandela Bay metro has drafted an audit action plan to address the seven serious failings that resulted in the Auditor-General giving the metro a qualified audit opinion for the 2024/25 financial year. The plan was presented by Section 154 support team member Luyanda Ndeya, after a presentation of the audit outcomes by the Auditor-General of South Africa’s Eastern Cape business unit leader, Thobile Nteta.
Ndeya said if implemented properly, the action plan should yield improved results for the current financial year. “We need to review the city’s budget processes to see if they are in line with the regulations and if they are allocated in a manner that assists the city. The city needs to deal with the revenue losses and accurate and complete billing through revenue enhancement initiatives.
“The municipality is still using manual systems to record information while we are in the [fourth industrial revolution], and this poses a risk for record-keeping.” Ndeya said the city’s waste management plan had to be completed by April to reduce illegal dumping and keep the city clean. He said the council had approved the establishment of a project management unit. “The resolution just needs to be implemented, which will assist with contract management and projects that are delayed. Some subdirectorates in the city need to be rearranged — functions such as Payroll are with the Human Resources Directorate, when it should be at Finance, as it is part of expenditure.” The Auditor-General’s report highlighted some of the issues that contributed to the qualification and need to be addressed, including:
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