Delivering Innovation, Achieving Success
The Auditor-General of South Africa (AGSA) released his shocking municipal audit findings recently. The most important finding was a staggering R28.4 billion in irregular and unnecessary spending, translating to 75%. The last report (2015/16) showed a R16 billion in irregular and unnecessary spending, translating to 50%. The upward trend speaks of poor financial management and good governance.
The Auditor-General, Kimi Makwetu, indicates among others:
“We reported weaknesses in internal control risks that needed attention in local government by providing root causes for audit findings and recommendations to remedy underlying causes. There has been no significant positive change toward credible results; instead we are witnessing a reversal in audit outcomes.”
The following are some facts:
- 257 municipalities were audited
- 16 of these improved
- 45 of these regressed
- Only a mere 33 received clean audits
- 31% acknowledged a deficit, translating to R5.6 billion
- 128 municipalities are in financial turmoil.
At first, this sounds dismal and perhaps it is. But this situation need not be repeated. In fact, it should not!
What needs to be done:
Although these statistics appear to be dismal, the situation can be remedied. Middel and Partners can help in the following ways:
- Create viable business models for municipalities and create blueprints for the various tiers of municipalities from small municipalities to large metros
- Provide direction in terms of strategy, financial modelling and strategic negotiations
- Audits in line with the Municipal Financial Management Act (MFMA)
- Accounting support, including tax support.
Why Middel & Partners?
Middel & Partners is a proudly South African entity with national and global footprints. Formed in 1992, the firm boasts 120 employees across nine national offices with experts and specialists in the various components of the finance and auditing value chain. We deliver quality service to over a thousand established clients, and this number is growing exponentially.
Our own growth has secured our status as a Black-owned business and Level 2 BEE contributor, with a procurement recognition level of 125%. In 2016, Middel & Partners was officially named one of The World’s Most Inspiring Accountants – an honour shared with only 57 other global firms.
Our innovation and success is rooted in our striving to go beyond what is usually dubbed ‘number crunching’. We draw inspiration from trying to place an extraordinary problem situation under the proverbial microscope and to then deliver innovative solutions to ensure that the financial model works with the assistance and “hand-holding” by our expert team of specialists.
Our Experience with the Public Sector:
Middel & Partners have a formidable track record in the public sector, dating back to 2006. We share our Government’s view regarding instituting cost-cutting measures and all our offices are within easy reach of major Government centres.
We are committed to assisting Government in realising its goals, especially those that deal with good governance and astute financial management. We believe that in supporting Government, we are providing a helping hand not only in the short-term, but also in the long term by, for example, helping Government in realising its goals with the National Development Plan (NDP).
We have conducted statutory audits In accordance with the MFMA. We have worked with the AGSA in ensuring that Government Departments, entities and municipalities comply fully with the requisite standards.
Innovation is not optional, it’s a must!
The municipal financial scenario is by no means an exception. It is by applying innovation that the somewhat failing Municipal financial model can be turned around. This will not only result in clean audits, but to fewer service delivery protests, better infrastructure, greater employment possibilities and, of course, growing our economy.
Coenie Middel is the first accredited FORTH Innovation Methodology facilitator in Central and Southern Africa. He has amassed specialist experience in the Mining, Agriculture, Construction, Healthcare, Public Sectors, as well as the Media and Entertainment industries. The elements of the FORTH Innovation Methodology may be just the elixir that our municipalities need.
Coenie consults to international and nationally listed companies, large private clients, owner managed entities and government.
“I can guarantee any entity, government department, small business and to all my clients, that my team and I will outdo ourselves and strive to give you the best quality of service ever. We will not just see you as client, but also as a partner in achieving a common goal at all times,” says Coenie Middel.