Sign In
Welcome to City of Tshwane

012 358 9999

Current News
  • City’s finances on track

    City’s finances on track

    Thu, Jan 25, 2018

    ​The City of Tshwane is pleased to announce that it has received an unqualified audit opinion for the 2016/17 financial year, as declared by the Auditor-General in the financial statements to serve in Council on 25 January 2017.

    An unqualified opinion is an independent auditor's judgement that a company's financial records and statements are fairly and appropriately presented and in accordance with generally accepted accounting principles (GAAP).

    "We have successfully corrected the R2 billion deficit we inherited from the previous admiration," said the Executive Mayor of Tshwane, Cllr Solly Msimanga.

    The 2016/17 financial year marked the start of a new political leadership for the City of Tshwane. The original budget was prepared and approved by the previous leadership, and it was only during the process of drafting the adjustment budget that a start could be made to realign resources in order to compile a funded budget in accordance with the guidelines provided by the National Treasury.

    The focus of the 2016/17 financial year was on ensuring that the City becomes financially viable and sustainable. This required reviewing the current spending levels within prudent financial limits, which necessitated realigning of resources and addressing basic service delivery. The Integrated Development Plan (IDP) remains the implementation framework for service delivery interventions and good governance, and it also serves as a mobilisation platform for partnership with the private sector, social partners and communities.

    In the last year, the City strengthened the controls over supply chain processes, slashed unauthorised and unnecessary expenditure, and extricated the City from unlawful and expensive contracts such as the PEU contract, which the Auditor-General flagged as one of the biggest items of irregular expenditure and which has now been addressed.

    Similarly, the City of Tshwane is currently in the process of disentangling itself from wholly unaffordable broadband and fleet management contracts, and we are optimistic that the end of the next financial year will see us free from these contracts.

    The City specifically achieved the following:

    • Unauthorised expenditure was significantly reduced from R1,658 billion in 2015/16 to R620,0 million in 2016/17. Unauthorised expenditure is defined as expenditure incurred other than in accordance with an approved budget. This over-expenditure can mainly be attributed to employee-related costs, bulk purchases, depreciation, financial charges and contracted services.
    • Irregular expenditure decreased from R950 million in 2015/16 to R838 million in 2016/17. The irregular expenditure related to the PEU smart prepaid meter contract totalled R699 million, which is included in this amount
    • Cash available to the City as at 30 June 2017 totalled R2,1 billion compared to R1,2 billion in the previous period. The increase in cash and cash equivalents during the year was R950 million.

Contact Us | Terms & Conditions | RSS

Copyright ©2015 City of Tshwane | All Rights Reserved