Parks Tau is the City's portfolio head for finance and economic development

Types of auditor's reports Unqualified report: If the financial statements fairly present an entity's financial position (the balance sheet), results of operations (the income statement) and cash flows (the statement of cash flows) in conformity with Generally Accepted Accounting Practice (GAAP), and the audit is performed in accordance with Generally Accepted Auditing Standards, then a standard unqualified report can be issued. Qualified report: The auditor will issue a qualified opinion where he views a departure from GAAP as being material, but not pervasive to the entire set of financial statements; or where he has not been able to obtain sufficient competent evidence pertaining to a material, but not pervasive part of the financial statements. Disclaimer: A disclaimer of opinion, which basically means giving no opinion, is issued when the scope limitation (typically lack of evidence regarding financial statement assertions) is so pervasive that the auditor cannot draw conclusions as to the fairness of the financial statements, taken as a whole. A disclaimer can also be issued when the auditor lacks independence from the entity being audited. Group Financial Statements FOR Group Fiancial Statements for the year ended 30 June 2006, click here. [PDF: 1Mb] RELATED LINKS: Joburg on way to clean audit report FINANCIAL management in Joburg has improved over the past five years, and the outgoing city manager is sure the City will receive a clean report from the auditor-general in the next couple of years. Read more Eight City companies get clean audit report THE auditor-general has given unqualified reports to eight City companies. And while he is pleased with progress, there is still work to be done at the other eight. Read more

Joburg moves closer to clean audit report Seven of Johannesburg's 16 companies received unqualified reports from the auditor-general, and no disclaimer accompanied the City's financial statements. February 22, 2007 By Anish Abraham FOR the first time ever, the City of Johannesburg's audited financial statements have no disclaimers from the auditor-general (AG). The AG's report for the 2006-07 financial year was presented at the general council meeting on Thursday, 22 February. Audits provide an independent assessment of the fairness by which a company's financial statements are presented by its management. In past years, the AG has issued disclaimers on the City's financial statements. In his report, Terrence Nombembe, the AG, stated that with the exception of the accuracy of the fixed asset register of City Power, the completeness and accuracy of revenue and debtors of Johannesburg Water and two areas of technical non-compliance with South African Generally Accepted Accounting Practice (SA GAAP) and Generally Accepted Municipal Accounting Practice (GAMAP), the financial statements reflect the true financial position of the City of Johannesburg as of 30 June 2006. The City's audited financial statements have been presented to council (Photo: Walter Knirr) "Nombembe's qualified audit opinion means that we are edging closer to a clean audit report because of the correct processes and systems in place to address our remaining shortcomings," said Parks Tau, Johannesburg's portfolio head for finance and economic development. Of the City's 16 municipal-owned companies, eight received qualified reports. They are Pikitup, City Power, Johannesburg Water, the Johannesburg Development Agency, the Johannesburg Zoo, Metrobus, the Johannesburg Social Housing Company and the City Housing Company. The Johannesburg Roads Agency, the Johannesburg Property Company, the Johannesburg Tourism Company, the Metro Trading Company, the Johannesburg Civic Theatre, the Roodepoort Civic Theatre and Johannesburg City Parks received unqualified reports. The Johannesburg Fresh Produce Market was the only municipal-owned company to receive a disclaimer from the auditor-general. Surplus The City recorded a seven percent growth in revenue and an over-recovery of two percent during the 2006-07 financial year, amounting to R350-million. Total capital expenditure increased to 98,5 percent from 95 percent in the 2005/06 financial year. Joburg's call deposits and cash balances increased by seven percent to R1,78-billion, up from R1,66-billion in 2005, while it recorded budget savings of R521-million. In addition, the City recorded an accounting surplus of R876-million, mostly because of additional Regional Services Council levies of R120-million, savings in contracted services of R169-million, write back of leave accrual to the value of R63-million and recognition of grant income from municipal-owned entities in terms of GAMAP amounting to R129-million. According to Tau, this was the first year that the City had prepared its financial statements in compliance with SA GAAP, GAMAP and Generally Recognised Accounting Principles. "This report will instil further confidence among investors, the business community and residents of Johannesburg in our ability to manage the City's finances in a responsible manner," he said. Permission to use web site material Publishers may use material from this site free of charge, as long as: Credit is given to either the "City of Johannesburg website (www.joburg.org.za)" or to "Johannesburg News Agency (www.joburg.org.za)"; If the article is used online, a link is provided to the original article on this website; The name of the article's author is acknowledged; The webmaster is informed of how and where the material is used (fill in this brief online form). Johannesburg News Agency is operated by BIG Media at 011-484-1400 Print this Page E-mail this article to a friend Help using Joburg.org.za