THE Institute of Municipal Finance Officers (IMFO) has honoured the former Lukhanji Municipality with a clean administration award for the most improved municipal audit outcome for the 2014-15 financial year.
The award was handed over by IMFO president Jane Masite to Enoch Mgijima Municipality executive mayor, Lindiwe Gunuza-Nkwentsha, at the institute’s conference in Durban.
The award recognises good financial management and improved financial governance in the former municipality, which has since merged with the Tsolwana and Nkwanca municipalities to form the Enoch Mgijima structure.
The award follows on the unqualified audit opinion obtained by Lukhanji during the previous year.
“We are proud of such an accolade and it shall help us in building the new entity. We shall draw lessons from it going forward,” Gunuza-Nkwentsha said this week.
Interim municipal manager Nolwandle Gqiba said the local authority had improved in collection of revenue by more than 50% due to the installation of prepaid meters for electricity. It had paid creditors on time and had handled its finances better.
The work of the revenue enhancement team had also helped detect illegal connections.
“Our internal systems improved in the last term of the 2014-15 financial year as we had the chief financial officer Nomthandazo Ntshanga. Our supply chain management processes were centralised. We followed the Municipal Finance Management Act to the T.”
The asset register had been augmented with new software and the staff complement improved.
A strong internal audit unit had been put in place and the independent municipal public accounts committee reported directly to council.
Gqiba said a culture of commitment would be instilled in all employees.
“The award is a vote of confidence just before audit outcomes. We are proud.”