A clean audit is the Auditor-General’s highest finding. It means the financial statements are free of material misstatement and there are no material findings on performance reporting or on compliance with legislation. It is a demanding standard, and most municipalities do not meet it.

What the audit opinions mean

Opinion Meaning Municipalities
Clean audit No material findings on the financials, performance reporting or compliance 39
Financially unqualified The financials are reliable, but there are findings on performance or compliance 116
Qualified Material misstatements in specific areas of the financial statements 87
Adverse The financial statements are materially misstated overall 5
Disclaimer Too little evidence for the Auditor-General to express any opinion 8
39 clean auditsout of 257 municipalities, against 13 that were disclaimed or adverse

The municipalities with a clean audit

Bergrivier, Breede Valley, Cape Agulhas, Cape Winelands DM, Capricorn, Cederberg, uMhlathuze, Drakenstein, Ehlanzeni, Frances Baard, Garden Route, George, Great Kei, Hessequa, Joe Gqabi, King Cetshwayo, Kouga, Langeberg, Matzikama, Midvaal, Mnquma, Mossel Bay, Ntabankulu, Oudtshoorn, Overberg, Overstrand, Richmond, Saldanha Bay, Sarah Baartman, Senqu, Stellenbosch, Swartland, Swellendam, uMlalazi, Umzimvubu, Waterberg, West Coast, West Rand, Witzenberg.

The disclaimers

A disclaimer is the most serious outcome. It means records were so poor or incomplete that the Auditor-General could not audit them. These municipalities received one:

Ditsobotla, Kamiesberg, Kannaland, Makana, Masilonyana, Mohokare, Nketoana, Sundays River Valley.

Adverse opinions

An adverse opinion means the statements were audited and found materially misstated overall: Impendle, Kagisano-Molopo, Laingsburg, Lekwa-Teemane, Maquassi Hills.

A clean audit is not the same as good service

An audit examines financial and compliance records. It does not measure whether water reaches households or potholes get fixed. Several municipalities with clean audits score modestly on service delivery, and a few with weaker opinions deliver reasonably well. Both sets of figures appear on every profile.

Figures on this page come from National Treasury, Statistics South Africa and the Auditor-General, as set out in the sources and methodology. Read the methodology