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AG identifies positive trends in audit results

Auditor-General Kimi Makwetu released his local govt audit outcomes findings in Pretoria.

FILE. Auditor-General Kimi Makwetu released his local government audit outcomes findings in Pretoria on Wednesday 30 July 2014. Picture: AGSA.

JOHANNESBURG - Auditor General Kimi Makwetu has identified what he's described as a positive trend in local government audit results, but supply chain management and irregular expenditure remains a concern.

The Auditor-General released his local government audit outcomes findings at a briefing in Pretoria.

This is Makwetu's first report since his appointment last year.

He says the report found 15 municipalities and two municipal entities improved on their previous year's findings, increasing the number of clean audits to 30.

Of the more than 300 audits, 9 percent obtained a clean audit which is an improvement on the 5 percent of the previous year.

Nearly half received unqualified audits, with findings that the Auditor-General suggests they were not entirely transparent with their books.

Makwetu found irregular expenditure was reported in 83 percent of audits, highlighting the lack of basic controls.

However, in Gauteng such expenditure dropped from R1.8 billion the previous year, to R466 million this year.

The AG says only Randfontein and Westonaria remain qualified with findings on compliance.