Audit Paints Mixed Picture

Gauteng Finance and Economic Development MEC Nkuleko Dunga. Pic: SAG

News Desk Reporter

Only two of Gauteng’s 11 municipalities have achieved clean audits, while six received unqualified audit opinions, painting a mixed picture of financial governance across the province.

The findings were announced by Gauteng Finance and Economic Development MEC Nkuleko Dunga during a media briefing on Sunday, where he outlined the latest municipal audit outcomes.

Dunga said the results show that although several municipalities are producing financial statements that meet the required auditing standards, many continue to fall short in areas such as governance, compliance and financial controls.

Of the province’s 11 municipalities, six obtained unqualified audit opinions with findings.

Midvaal Local Municipality and the West Rand District Municipality were the only municipalities to receive clean audits. Three municipalities received qualified audit opinions.

The MEC said audit outcomes should not be viewed simply as accounting results, but as an indication of how well municipalities are managing public resources.

Sound financial management, he said, is closely linked to the quality of services delivered to residents.

He urged municipalities to address weaknesses identified during the audit process and to ensure corrective measures are implemented without delay. According to Dunga, improving oversight and strengthening internal controls remain essential if municipalities are to improve their performance in future audit cycles.

The latest results also highlight the gap between municipalities that have maintained good financial governance and those that continue to battle recurring administrative and compliance shortcomings.

An unqualified audit opinion means auditors are satisfied that a municipality’s financial statements fairly reflect its financial position.

However, findings relating to compliance with legislation or internal controls may still be raised.

A clean audit goes a step further, indicating there were no material findings on the financial statements, performance reporting or compliance with legislation.

Dunga said municipalities must build on the lessons from the latest audit outcomes to improve accountability and ensure public funds are managed responsibly.

He added that stronger governance and consistent financial discipline are critical to restoring public confidence in local government.

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