From Red Lights to Green Lights: Value in Continuous Implementation of Audit Action Plans

This webinar focused on improving audit outcomes and audit action plans within South African municipalities. The discussion emphasised strategies for enhancing municipal governance, accountability, and service delivery through effective audit processes.

Key speakers:

• Ntuboy Mokhethi, Deputy Director: Municipal Financial Reporting and Auditing at Gauteng Provincial Treasury
• Cornel Ebersohn, Project Director at Business Engineering | Phoenix ERP
• HL Phala from Nkangala District Municipality
• Moderator: Zolani SS Zonyane, Chief Editor at the Municipal Edge

Topics Discussed:

• Audit Outcomes and Action Plans:
  The webinar explored the 2023/24 audit cycle, emphasising the importance of audit action plans in addressing findings and improving outcomes. A speaker highlighted Gauteng's progress, noting no regression in audit outcomes and a shift toward producing quality financial statements.
• Collaboration and Support:
  The role of provincial treasuries, Auditor General (AG), and partners like SALGA and CIGFARO was discussed, with a focus on collaborative efforts to enhance municipal performance.
• Governance Structures:
  A speaker detailed the Municipal Public Accounts Committees (MPAC) oversight role in ensuring accountability and monitoring audit action plans, stressing its link with audit committees and the executive.
• Technology and Systems:
  A speaker emphasised leveraging technology to streamline audit processes, track transactions, and address findings proactively, advocating for adaptive systems to meet evolving standards.
• Service Delivery vs. Clean Audits:
  Speakers debated the focus on clean audits versus service delivery, suggesting that organisational performance and citizen engagement should take precedence over audit outcomes alone.
• Citizen Engagement:
  The need for municipalities to build relationships with residents to improve revenue collection and public understanding of challenges was a recurring theme.

Key Takeaways:

• Proactive Planning: Effective audit outcomes stem from robust planning, aligning objectives with resources, and maintaining strong control environments.
• Collaboration is Essential: Partnerships with provincial treasuries, AG, and other stakeholders enhance municipal capacity and audit success.
• Oversight Matters: Functional MPACs and audit committees are critical for accountability and implementing audit action plans.
• Technology as an Enabler: Adaptive systems can reduce repeat findings and improve efficiency if tailored to municipal needs.
• Beyond Clean Audits: Municipalities should prioritise service delivery and local economic development over solely chasing clean audits.
• Citizen Role: Engaging communities can address revenue challenges and foster mutual accountability.

The webinar underscored a holistic approach to municipal improvement, blending governance, technology, and community involvement to move "from red lights to green lights" in audit performance and service delivery.

Thank you to our Series Gold sponsors:

• Ntiyiso Consulting Group
• Business Engineering