During the 2010/2011 financial year only 13 of the 283 municipalities in South Africa (including district municipalities and metros) achieved clean audits.
The reasons for this poor state of affairs are complex, but one key causal factor is that the basic principles of good financial management are not adhered to. Several of the major challenges identified by the Auditor-General (AG) are listed below and can be directly linked to poor financial management.
Report by Deloitte SA
Jan van Coller
Municipal Finance Specialist in the Deloitte Local Government Unit
Tel: +27 (0)21 427 5547
Director in Consulting and Deloitte Industry Leader for Local Government
Tel: +27 (0)12 482 0244