Across South Africa, local municipalities own various physical assets which require on-going maintenance and repairs. These costs are ultimately funded by taxpayers, who should have the assurance that municipal funds are being appropriately allocated for the benefit of all.
When an official inspection of a municipality’s accounts is conducted by an independent party, the result is expected to be free of bias or hidden agendas. Unfortunately, this is not always the case. Audits often contain misstatements, i.e. “incorrect or omitted information in the financial statements”. As a result, a clean audit is in essence a financial statement which is free from material misstatements and in compliance with current legislation.
The importance of a clean audit goes beyond legislative compliance and the avoidance of fiscal penalties. Clean audits mean municipal transparency — taxpayers are able to see how much of their hard-earned money is spent and why.
The Smart Asset Management Solution’s fully compliant and transparent asset register is a vital step towards obtaining a clean audit. SAMS is “a structured process of decision-making over the acquisition, use, safeguarding and disposal of assets”.
By digitising the management and monitoring of assets, the process becomes far more efficient and accurate. It also helps decrease the likelihood of downtime, service delivery issues, non-payment and non-compliance.
Mezzanine’s SAMS incorporates IoT (Internet of Things) and mobile technology to offer an accessible and convenient service to remotely manage and monitor assets. It is able to identify assets in need of repair or maintenance, as well as send data and reports to the relevant parties.
By managing assets efficiently, municipalities will be able to ensure compliance with statutory requirements, ensure transparency, achieve clean audits and instil confidence in taxpayers.