LNM receives unqualified opinion

Lebowakgomo

 

Lepelle-Nkumpi Local Municipality (LNM) received an Unqualified audit opinion from the Auditor-General of South Africa (AGSA), this for the first time in 10 financial years.

 

The municipal mayor councilor Meriam Molala has welcomed the findings applauded by the AGSA.

 

The Mayor said since she took over she has ensured budgetary processes focus on the urgent needs of indigent communities, through investment in infrastructure, provision of free basic services and the growth of the local economy.

 

Financial performance and cash flows for the year under review were in accordance with the South African Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) and the Division of Revenue Act, 2019 (Act No. 16 of 2019).

 

The audit opinion, with material findings, noted that the Municipality is in a solvent position and able to meet its financial obligations.

 

According to the LNM the financial statements were presented fairly, in all material respects for the financial position as on 30 June 2020.

 

The AGSA’s findings are contained in the Municipal Integrated Annual Report for the 2019/20 financial year.

 

The Auditor-General notes an improvement in the Municipal working capital position, as well as cash flow from operating activities, which are both positive at year-end compared to the negative position the year before.