eThekwini Municipality secures unqualified audit opinion with no findings, finances stable

The eThekwini Municipality is in a strong financial and administrative position, the Auditor-General of South Africa (AGSA) has found.

The AGSA tabled the audit report of the entity during a council meeting on Thursday. The report revealed that the municipality had achieved an unqualified audit opinion.

In a statement, the municipality said it achieved an improved audit outcome for the 2024/25 financial year, reflecting solid progress in strengthening financial management, performance reporting, and overall governance.

The statement noted, “The AGSA has issued the municipality an unqualified audit opinion, confirming that the annual financial statements present eThekwini’s financial position in accordance with all applicable accounting standards."

“Importantly, the Auditor-General once again confirmed that there were no material findings on the financial statements, an important milestone in improving financial controls and reporting integrity."

Key highlights from the audit report include:

• Unqualified audit opinion with no material findings on the financial statements
• Improved quality of performance reporting, with stronger alignment between reported results and supporting evidence
• Resolution of prior year non-compliance relating to strategic planning and performance management.

“The AGSA noted a year-on-year improvement in the quality of the annual performance report, with a greater proportion of indicators assessed as reliable and useful, following audit adjustments.

While the improved audit outcome is encouraging, the municipality said it recognises that some challenges remain. It committed to accelerating corrective actions through strengthened oversight, enhanced consequence management, and targeted reforms in infrastructure delivery, project execution, and information technology.

Regarding financial health and stability, the municipality stated that the AGSA report had found that eThekwini recorded a surplus for the 2024/25 financial year, confirming that revenue exceeded expenditure, signalling a more stable financial position.

“Although the Auditor-General highlighted ongoing pressures—including debt collection challenges and creditor payment timelines—the municipality has prioritised measures to strengthen cash flow, improve collection rates, enhance revenue management, and shorten payment cycles,” said the statement.

It concluded that this improved audit outcome demonstrates that focused leadership, strengthened oversight, and disciplined financial management can deliver tangible results.

“While challenges remain, the municipality is firmly committed to sustaining these improvements and addressing all weaknesses identified by the Auditor-General. 

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