How’s your municipality faring? A visual breakdown of the latest municipal audits

28 May 2025

The Auditor-General has published the 2023-24 municipal audit outcomes, with 41 municipalities receiving a clean bill of health — an increase from last year. Wondering where your municipality sits on the local government litany of woe scale? Here’s a visual breakdown.

This audit terminology may be difficult to digest. Let’s break it down:

A clean audit outcome means the municipality’s financial statements are accurate and complete, with no material findings on reporting on performance objectives or non-compliance with legislation. In other words, there are no errors or omissions that affect the credibility and reliability of the municipality’s financial statements. A clean audit is also referred to as a financially unqualified audit opinion with no findings.

A financially unqualified audit with findings means the municipality was able to produce accurate financial statements, but struggled to produce quality performance reports or comply with all key legislation, or both. So it’s not a clean audit.

A qualified audit opinion means there are mistakes in the municipality’s financial statements, or there isn’t enough evidence for the AG to conclude that certain figures in the financial statements are correct. The municipality also had challenges with the quality of the performance report, or compliance with key legislation, or both.

A municipality with an adverse opinion means the financial statements are so unreliable and contain so many material misstatements that they cannot be used for oversight and decision-making.

A disclaimed audit opinion (the worst audit opinion possible) means there wasn’t enough evidence provided by the auditee for the AG to check if the financial statements are correct and form an audit opinion. DM

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