AG Tables Municipal Audit Outcomes for 2024-2025

Posted 24 June 2026 Written by Acts Online
Category Local Government

Brought to you by SAnews: The Auditor-General of South Africa (AGSA) has tabled the consolidated general report on local government audit outcomes for the 2024–2025 financial year, highlighting persistent governance challenges alongside minor improvements in reporting compliance under the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA).

The report, issued in accordance with the AGSA’s mandate under the Public Audit Act, No. 25 of 2004, reveals that only 39 municipalities (15%) achieved clean audits for the 2024–2025 financial period. Conversely, 38 municipalities (15%), representing 24% of the total local government expenditure budget, have regressed since the 2020–2021 financial year. The AGSA noted a continued decline in the performance and audit outcomes of South Africa’s eight metropolitan municipalities.

Despite these regressions, the report highlights positive trends in compliance and administrative reporting:

  • Unqualified audit opinions increased to 61% of municipalities, returning to levels last recorded in the 2015–2016 financial year.
  • The timely submission of annual financial statements reached 98%, the highest compliance rate on record.
  • There was a substantial reduction in the number of municipalities receiving repeat disclaimed audit opinions.

AGSA Recommendations for Municipal Governance

To address systemic failures, the AGSA recommended targeted interventions under the MFMA and the Local Government: Municipal Systems Act, No. 32 of 2000:

  • Professionalise and capacitate local government: Accounting officers, councils, and provincial leadership must ensure compliant appointments and targeted skills development to retain scarce professional skills.
  • Instil a culture of ethics and accountability: Implement consequence management and ensure timely action is taken to hold individuals accountable for administrative or financial failures.
  • Build capable institutions: Coordinate intergovernmental support in partnership with municipal leadership to promote strong governance.
  • Ensure stable administration: Maintain administrative stability where performance is relatively high, and minimise disruptions arising from changes in accounting officers and senior management.

Click here to access the full audit reports on the Auditor-General South Africa MFMA Reports page.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, professional advisors must monitor municipal audit outcomes to advise on localized public-sector contract risks.
  • For your business: Firms contracting with municipalities must conduct rigorous credit and performance risk assessments, particularly when dealing with declining metro administrations.
  • For your clients: Clients relying on municipal services or infrastructure must factor deteriorating municipal financial health into their business continuity and operational risk frameworks.

Originally published at https://www.sanews.gov.za/south-africa/ag-tables-local-government-outcome-reports-2024-2025

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