This, after Auditor General Kimi Makwetu released the audit results for the 2013/14 financial year, in Pretoria yesterday.
As the report noted a reduction in irregular and fruitless and wasteful expenditure, it further showed an increase in unauthorised expenditure.
“Irregular expenditure of R11 473 million was incurred by 264 auditees… an improvement from the R12 226 million incurred by 270 auditees in 2012/13.
“Through our normal audits we determined that goods and services were received for R6 598 million of the supply chain related irregular expenditure despite the normal process governing procurement not been followed.”
Fruitless and wasteful expenditure of R687 million was incurred by 250 auditees.
“Unauthorised expenditure of R11 402 million was incurred by 190 municipalities. A significant increase compared to the R8 502 million incurred by 175 municipalities in the previous year.
Addressing the report, Minister of Cooperative Governance and Traditional Affairs Pravin Gordhan said the report showed consistent improvement in almost all aspects of municipal audit outcomes.
“It points to a steady trend towards good governance and sound financial management. This reinforces more efficient and accountable basic service delivery in line with the Back to Basics approach.”
Makwetu on the overall audit, said this was a laudable step towards wholesale good governance for South Africa’s public sector.
The reports cover a total of 325 auditees, 268 of which were municipalities and 57 of which were municipal entities.
It examined fair presentation and absence of material misstatements in financial statements, the reliable and credible performance information for purposes of reporting on predetermined performance objectives and compliance with key laws and regulations governing financial matters.
Of the 58 clean audits for the year, 27 had also received clean audits in the previous financial year.
The 40 municipalities with clean audits represent 27% of the total local government expenditure budget of more that R315 million.
“Auditees in the clean audit category demonstrated impeccable levels of discipline and oversight in their financial management and operational activities,” said Makwetu.
Gauteng, Western Cape and KwaZulu-Natal displayed fairly strong financial management and control disciplines, while in the Free State, Limpopo an North West financial management disciplines were very poor, with significant control weaknesses in most municipalities.
Auditees in Mpumulanga, the Eastern and Northern Cape showed limited positive movement.