Percentage of ‘Clean Audits’ rises

The 2012/2013 Municipal entity audit report was presented by the Auditor-General, Kimi Makwetu, on 30 July 2014.

Eastern Cape has two metropolitan municipalities, six district municipalities, 37 local municipalities and 10 municipal entities. Fifty-two auditees (95%) submitted their financial statements (AFS) for the 2012/13 financial year for audit within the prescribed timelines, while Makana, Ngqushwa and Sundays River failed to do so.

Only one of the 55 Eastern Cape entities managed to secure a financially unqualified opinion with no findings – the Mandela Bay Development Agency.

The audit report, produced in terms of the Municipal Finances Management Act no. 56 of 2003, covers the audit outcomes of South Africa’s municipalities and municipal entities, which had a combined total expenditure of R268 billion for the 2012-13 financial year, split as follows:

• Employment cost (including councillor remuneration) – R62 billion
• Goods and services – R166 billion
• Capital expenditure – R40 billion

The annual audits examine the following three areas:

1. Fair presentation and absence of material misstatements in financial statements.
2. Reliable and credible performance information for purposes of reporting on predetermined performance objectives.
3. Compliance with all laws and regulations governing financial matters.

Auditees that received a financially unqualified opinion with no findings are those that have passed the audit test in each of the abovementioned aspects. This is commonly referred to as a ‘clean audit’. Out of the 319 audited institutions comprising 278 municipalities (local, district and metropolitan) as well as 41 municipal entities 30 received a financially unqualified opinion with no findings. This constitutes an overall 9% as compared to the 5% obtained in 2012.

Amongst this year’s 30 ‘clean audits’, 13 sustained this achievement from 2011-12. Auditees in this category have demonstrated impeccable levels of discipline and oversight in their financial management and operational activities. At these auditees, the breakdown of controls is easily detected and corrected timeously. Such environments are characterised by readily available documentation. Most importantly they have accountable managers and leaders who are able to provide explanations and additional evidence in support of the transactions they are reporting on. They also have the support of strong oversight by mayors and councils that back the efforts of municipal managers and chief financial officers.

The 30 Auditees that received a financially unqualified opinion with no findings:

Western Cape (12):

1. Swartland – West Coast District
2. Theewaters Kloof – Overberg District
3. West Coast District
4. Witzenberg – Cape Winelands District
5. Langeberg – Cape Winelands District
6. Breede Valley – Cape Winelands District
7. Cape Town International Convention Centre – City of Cape Town Metro
8. City of Cape Town Metro
9. George – Eden District
10. Knysna – Eden District
11. Mossel Bay – Eden District
12. Overstrand – Overberg District

KwaZulu-Natal (11):

1. Durban Marine Theme Park (Pty) Ltd – eThekwini Metro
2. Msinga – uMzinyathei District
3. Ntambana – Uthungulu District
4. Okhahlamba – uThukela District
5. Ubuhlebezwe – Harry Gwala/Sisonk District
6. uMhlathuze – Uthungulu District
7. uMzimkhulu – Harry Gwala/Sisonk District
8. Uthungulu District – Uthungulu District
9. Safe City Pietermaritzburg – Umgungundlovu District
10. uThungulu House Development Trust – Uthungulu District
11. uThungulu Financing Partnership – Uthungulu District

Gauteng (3):

1. Sedibeng District – Sedibeng
2. Johannesburg Fresh Produce Market – City of Johannesburg Metro
3. Johannesburg Social Housing Company – City of Johannesburg Metro

Mpumalanga (2):

1. Ehlanzeni District – Ehlanzeni District
2. Steve Tshwete – Nkangala District

Eastern Cape (1):

1. Mandela Bay Development Agency – Nelson Mandela Bay Metro

Northern Cape (1):

1. ZF Mgcawu District

The following two tabs change content below.

• Bio
• Latest Posts

Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE

Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.

Latest posts by Alan Straton (see all)

• South African Conquers Rats on the World Stage - 30 October 2026
• Old JPG on a Memory Stick? Vectorization Studio in Observatory Redraws Faded and Low-Resolution Logos by Hand - 30 October 2026
• ReAutomated Adds Robot Palletising and Case Packing Cells to Existing South African Packing Lines Without Stripping Out the Conveyors - 30 October 2026
• From a 5 KM Sprint to an Ultra: Punisher Sets Out Its Magaliesberg Obstacle Race Formats for First Timers, Teams and Fitness Clubs - 30 October 2026
• Rotary or Dual Action? Germiston’s Polisher Lists Its Machines, Buffs and Compounds for Car Paint and Metal Finishing - 30 October 2026