By Emily Setona
LADYBRAND — The Thabo Mofutsanyana District Municipality (TMDM) has retained its unqualified audit opinion, while spending 46% of its operating budget by the end of the second quarter of the 2025/26 financial year.
The figures were presented during a council sitting at the Ladybrand Town Hall on 30 January, where Executive Mayor Cllr Conny Msibi tabled the Section 52(d) Municipal Finance Management Act (MFMA) report.
Msibi said the municipality’s approved budget for 2025/26 totals about R191 million, comprising R181 million for operating expenditure and R9.9 million for capital projects.
“By the end of the second quarter, R83 million of the operating budget had been spent, representing 46% utilisation,” she said.
Operating expenditure for the quarter stood at R44 million, while revenue collected during the same period amounted to R55 million, bringing total year-to-date revenue to approximately R124 million.
Capital spending, however, remained sluggish. Only R286 996 was spent in the second quarter, with year-to-date capital expenditure at R3.7 million — just 8% of the total capital budget.
Msibi said funds remained available and could still be utilized in the remaining six months of the financial year.Council was asked to note the report on budget implementation and the municipality’s financial position.
Meanwhile, Auditor-General representative Luthando Mbandazayo confirmed that TMDM had again achieved an unqualified audit opinion with findings, noting an improvement from the previous year.
“The municipality received an unqualified opinion, and the number and extent of findings have reduced,” Mbandazayo said.
He said remaining findings related mainly to compliance, performance information, expenditure management, supply chain management and consequence management, as well as weaknesses in the ICT environment.
“If ICT systems are not properly controlled and secured, especially against cyber threats, the municipality is exposed to serious risk,” he warned.
Opposition councillors raised concern over continued underspending, particularly on capital projects. Councillor Eric Motloung warned that delayed spending could undermine service delivery and lead to rushed expenditure later in the year.
Despite the concerns, council noted the reports and welcomed the municipality’s continued unqualified audit outcome. Management was urged to accelerate capital project implementation and strengthen internal controls to sustain sound governance and financial performance.
