Audit reports reveal R252 billion irregular municipal expediture

Audit reports reveal R252 billion irregular municipal expediture

Auditor-General Kimi Makwetu released the audit findings report, spanning 257 municipalities, for the 2017/18 financial year. The nation's municipalities recorded a staggering R25.2 billion in irregular expenditure.

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Kimi Makwetu, auditor-general, has released the audit findings report for the previous financial year.

In the report, R25.2 billion worth of irregular expenditure was reported, down from the previous year's R29.7 billion.

Although the decrease was noted, Makwetu says that the financial year recorded the highest level of noncompliance with key governance laws since the 2011/12 financial period, reports The Sowetan.

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Only 18 municipalities received clean audits after producing quality financial statements and performance reports:

"Not only did the unqualified opinions on the financial statements decrease from 61% to only 51% but the quality of the financial statements provided to us for auditing was even worse than in the previous year."

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Material non-compliance with key legislation is now at 92%, up from the previous years 85%:

"Only 19% of the municipalities could give us financial statements without material misstatements."

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Source: Briefly.co.za

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