AG flags 'material uncertainty' around Tshwane's ability to continue as going concern | Business

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An adverse audit opinion expressed by the AG is detailed in a leaked report, of which News24 has obtained a copy, and raises concerns over its future as a going concern. | News24_Business

Auditor-General Tsakani Maluleke has expressed an adverse audit opinion on the City of Tshwane's financial statements.

The City, which has fired its CFO, said the audit finding was a"disappointment" and not"remotely acceptable".Amid evidence of financial misconduct and misrepresentation of the metro's financial position, the Auditor-General of South Africa has warned there is"material uncertainty" around the City of Tshwane's ability to continue as a going concern.

The AGSA further noted the City's financial statements"do not present fairly, in all material respects, the financial position of the City of Tshwane Metropolitan Municipality as at 30 June 2022, and its financial performance and cash flows for the year …" Unauthorised expenditure was not correctly accounted for, resulting in such expenditure being understated by R647 million. Poor record keeping saw fruitless and wasteful expenditure being understated by over R1 billion.

The AGSA was also unable to obtain sufficient appropriate audit evidence for salaries and wages stated at R7.42 billion because the municipality could not provide information and supporting documentation"due to an inadequate system of internal control".suspended and then dismissed in December Findings of financial misconduct and misrepresentation of the City of Tshwane's financial statements and financial position"are being treated with the seriousness they deserve", Williams said.

 

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