Two City entities, the Joburg Market and Joburg City Theatres (JCT), boast clean audit outcomes for the 2022/2023 fiscal year. The Auditor-General (AG) defines a clean audit as: “The financial statements are free from material misstatements and there are no material findings on reporting on performance objectives or non-compliance with legislation.”
Overall, the City achieved an unqualified audit opinion at group level. According to the AG, an unqualified audit means: “The financial statements contain no material misstatements. Unless we express a clean audit outcome, findings have been raised on either reporting on predetermined objectives or non-compliance with legislation, or both these aspects.”
Vukani Magubane, City Theatre’s Chief Financial Officer, says the entity’s clean audit finding is a testimony to good governance and functional systems in the organisation.
“This goes a long way towards building confidence among stakeholders and lays the foundation to attract investments into the entity,” says Magubane.
He further notes that the achievement of a clean audit is vital as it gives the community confidence that the allocated funds have been spent correctly and services have been delivered, which subsequently opens doors for more funds to flow within the entity.
“Not only the attainment of clean audit motivates JCT staff to work hard but also makes JCT a good organisation to work for and attracts qualified skills,” Magubane adds.
According to the City’s Annual Report, JCT achieved several noteworthy accomplishments during the past fiscal year. These included hosting 61 arts and culture festivals and themed productions, surpassing the initial target of 50.
It also successfully executed four touring productions nationally and internationally, exceeding the planned goal of one. Despite challenges posed by power cuts due to load shedding, JCT proactively procured a back-up generator, showcasing resilience and adaptability.
Magubane says one of the challenges was insufficient budget for big Broadway-style shows, and the relative weakness of the rand resulting in costs outweighing box office returns.
“The country was experiencing a general increase in the cost of living. This resulted in the Reserve Bank’s Monetary Policy Committee hiking the repo rate a record eight consecutive times. This was to curb high inflation in the country.
“High interest rates combined with the loadshedding brough about increases in both productions and consumer goods. Operations are stabilising to pre-Covid levels, which influence the cost drivers to increase. However, plans to have a back-up generator were implemented to keep the business running,” says Magubane.
Magubane is excited for the current financial year and says JCT’s plan is to retain a clean audit outcome and develop, execute a cost-optimisation strategy and use resources efficiently.
Nkosinathi Baloyi, the CFO of the Joburg Market, says the clean audit is a cause for celebration. “It’s a remarkable turnaround from previous challenges and reflects Joburg Market’s unwavering commitment to transparency, accountability and efficient financial management.
“This achievement not only demonstrates the Market’s dedication to good governance but also instils confidence in stakeholders, highlighting Joburg Market as a beacon of excellence within the municipal landscape. I wish to recognise the team at Joburg Market that worked tirelessly to deliver a clean audit. The outcome was a result of teamwork.”
Baloyi said the Market’s goals for the current fiscal year include finalising the Smart Metering project, currently at 99% implementation and address ageing infrastructure.
Written by Brümilda Swartbooi
16/02/2024