Gauteng has launched a province-wide effort to tackle chronic audit weaknesses that have dogged municipalities for years, with the department of cooperative governance and traditional affairs (Cogta) rolling out a seven-step Interim Financial Statements (IFS) protocol aimed at achieving clean audits.
From patch-up accounting to continuous readiness
The protocol was signed on Tuesday at the Brixton multipurpose centre by Cogta, the provincial treasury and all Gauteng municipalities under the theme: “From Year‑End Audit Preparation to Continuous Audit Readiness, A Collective Commitment to Credible Municipal Financial Reporting.” Cogta MEC Jacob Mamabolo said the province must lead by example because it is the country’s economic hub.
“We must lead in financial discipline. Public resources must be protected and our message is that credible financial management is non‑negotiable,”
Mamabolo described good governance and credible institutions as essential building blocks for economic growth, job creation and poverty reduction. The new IFS protocol aims to change behaviour across municipal finance teams by embedding regular, reviewed financial statements throughout the year rather than relying on year‑end fixes.
Why the protocol matters
The province has struggled to produce clean audits. According to the information released at the signing, only 2 of 11 municipalities — Midvaal and West Rand District — achieved clean audits in the 2024/25 financial year. Six received unqualified opinions with findings, and three municipalities, including the metros of Johannesburg and Ekurhuleni, were issued qualified audits.
| Audit outcome (2024/25) | Number of municipalities |
|---|---|
| Clean audits | 2 |
| Unqualified with findings | 6 |
| Qualified | 3 |
Nationally, the auditor‑general’s picture is bleak: only 39 of 257 municipalities achieved clean audits and no metro secured a clean audit in that cycle. Gauteng therefore faces both a reputational and operational imperative to fix repeat findings flagged by the auditor‑general.
Practical changes and expectations
The IFS approach seeks to reduce the recurring errors that appear each audit cycle by making financial reporting a continuous process. Municipalities will prepare interim statements throughout the year for review by the provincial treasury and the auditor‑general so problems can be detected and corrected early.
Johannesburg mayor Dada Morero said the protocol will help the province turn its audit outcomes around. He warned that the province cannot reform what it refuses to name, and urged a year‑round commitment to credible reporting rather than scrambling at year‑end.
“We cannot fix what we refuse to name. We are committing to credible reporting throughout the year, not just at year‑end,”
The protocol is presented as a seven‑step process; the province says it will involve closer oversight, regular submission of statements, and early intervention where the provincial treasury or auditor‑general spot weaknesses. No specific timelines for when each municipality will reach a clean audit were announced at the signing.
Impact on residents and municipal services
For residents the significance lies in improved service delivery and better protection of public funds. Recurrent audit findings often point to procurement irregularities, weak asset registers, and poor record‑keeping — issues that directly affect how municipalities maintain infrastructure, pay suppliers and manage grants.
Cogta officials framed the IFS protocol as an effort to restore trust in municipal financial management and to prevent funds being lost to wasteful expenditure. If successful, the initiative could ease the fiscal stress many municipalities face and improve their ability to deliver basic services.
What to watch
- Whether the provincial treasury and auditor‑general are given the resources and access needed to review interim statements on an ongoing basis.
- How quickly metros such as Johannesburg and Ekurhuleni can move from qualified to unqualified or clean opinions.
- Whether the protocol will change procurement and record‑keeping practices that are frequently cited in audit findings.
The IFS protocol represents a shift in mindset among Gauteng’s political and administrative leadership towards continuous compliance. Implementation will determine whether the province can break the cycle of repeat audit findings and deliver the financial discipline officials say is essential for economic growth and improved services.
Reporting from Johannesburg.
