AG's provincial audit results in numbers

Wednesday, November 26, 2014

Cape Town – Auditor-General Kimi Makwetu says provincial governments showed a lot of improvement in this year’s audit cycle compared to the 2012/ 13 financial year.

While National departments contributed to the overall improvement of audit outcomes, SA News takes a closer look at provincial performance.

Eastern Cape

Three departments in the Eastern Cape provincial government retained three clean audits – Provincial Treasury, Office of the Premier and the Eastern Cape Socio-economic Consultative Council. The Department of Local Government and Traditional Affairs improved to a clean audit.

Overall, this reflects a net improvement of five audit outcomes, with six improvements and one regression.

This is the first year since the advent of democracy that no department received an adverse audit opinion, with the exception of one entity.

Free State

Three departments retained clean audits in the province, namely Provincial Treasury; Sports, Arts, Culture and Recreation and Free State Fleet Management Trading Entity. The Provincial Legislature improved to a clean audit.

There has been a slight year-on-year improvement in the overall audit outcomes when compared to the previous year; however, the number of clean audit opinions remained unchanged.


The province retained eight clean audits, and this included the Office of the Premier; Provincial Legislature; Provincial Treasury, Social Development, Sport, Arts, Culture and Recreation, Gauteng Funding Agency, Gautrain Management Agency and Gauteng Partnership Fund.

Ten entities improved to obtain clean audits.


The province retained seven clean audits - Provincial Treasury, Amafa aKwaZulu-Natali, Dube TradePort Corporation, Growth Fund Managers, Natal Joint Municipal Pension Fund: Provident, Natal Joint Municipal Pension Fund: Retirement and Natal Joint Municipal Pension Fund: Superannuation.

The Ithala Ltd and the Ithala Development Finance Corporation Ltd, which received praises on its performance when it recently appeared before the Parliament’s Portfolio Committee on Small Business Development, improved to get clean audits.

However, according to the Auditor-General’s report, there was a 14% reduction in the number of auditees with financially unqualified audit opinions with no findings, while the number of auditees with financially qualified financial statements remained unchanged.

Five improvements were offset by five regressions, resulting in no net improvement in the audit outcomes of the province.


The province, which recently had a Section 100 (b) intervention lifted after it showed signs of stability, one department – Cooperative Governance, Human Settlements and Traditional Affairs – improved to a clean audit.

The report noted improved audit outcomes compared to the previous year.


While there has been an improvement in the overall audit outcomes when compared to the previous year, a majority of the auditees received unqualified audit opinions with findings, according to the Auditor-General’s report. ,

Two departments – Finance and the Mpumalanga Gambling Board – retained clean audits, while three others improved to clean audits.

Northern Cape

The Social Development department retained a clean audit, while four other departments - Economic Development and Tourism, Environment and Nature Conservation, the provincial treasury and Northern Cape Tourism Authority – improved to receive clean audits.

North West

Overall, there have been nine improvements and two regressions in the province, with the Provincial Treasury being the first department to receive a clean audit in the province.

According to the Auditor-General’s report, there has been some progress in reducing the number of auditees with a disclaimer of opinion, with three auditees able to improve from a disclaimer to qualified with findings.

Western Cape

Ten departments in the province retained clean audits, and this includes Agriculture, Cultural Affairs and Sport, Community Safety, Economic Development and Tourism, Transport and Public Works,

Gambling and Racing Board, Government Motor Transport, Western Cape Cultural Commission, Western Cape Investment and Trade Agency and Western Cape Language Committee.

Eight departments and entities - Human Settlements, Local Government, Office of the Premier, Provincial Legislature, Provincial Treasury, Social Development, Heritage Western Cape and Western Cape Nature Conservation Board – improved to achieve clean audits. –

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