Auditor-General Kimi Makwetu releases municipal audit results

26 June 2019

The Auditor-General (AG), Kimi Makwetu, today released yet another set of municipal audit results that show an overall decline in audit results for the 2017-18 financial year.

Releasing his latest report on the performance of South Africa’s municipalities, Makwetu said this undesirable state of deteriorating audit outcomes shows that various local government role players have been slow in implementing, and in many instances even disregarded, the audit office’s recommendations. As a result, the accountability for financial and performance management continues to worsen in most municipalities.

This general report deals with the audit outcomes of local government for the financial year ended 30 June 2018. It precedes the amendments to the Public Audit Act, which became effective on 1 April 2019. Accordingly, the requirements of these amendments will be applicable for the first time to audit reports issued for the financial years that ended on or after 31 March 2019.

These amendments introduce the concept of a material irregularity in audits performed under the Public Audit Act and, once a material irregularity has been identified, may result in a number of possible actions, including the referral of the material irregularity to an investigative body, where there are complex and intricate matters not capable of being concluded directly by the audit.

Once a recommendation is made through an audit such will be required to be effected within a period prescribed by the auditors, failing which, a binding remedial action will be issued by the auditors to the accounting officer to correct the identified material irregularity, also within a prescribed period. 

Issued by Auditor-General South Africa, 26 June 2019