Original Research

Analysis of the sustained poor audit outcomes in Mopani District Municipality

Tsepo E. Rangwato, Arthur Shopola, John Molepo
Journal of Local Government Research and Innovation | Vol 5 | a185 | DOI: https://doi.org/10.4102/jolgri.v5i0.185 | © 2024 Tsepo E. Rangwato, Arthur Shopola, John Molepo | This work is licensed under CC Attribution 4.0
Submitted: 06 February 2024 | Published: 24 May 2024

About the author(s)

Tsepo E. Rangwato, Department of Public Management, Faculty of Humanities, Tshwane University of Technology, Pretoria, South Africa
Arthur Shopola, Department of Public Management, Faculty of Humanities, Tshwane University of Technology, Pretoria, South Africa; and, Department of Public Administration and Local Government, Faculty of Humanities, North-West University, Mahikeng, South Africa
John Molepo, Department of Public Management and Governance, Faculty of Humanities, North-West University, Potchefstroom, South Africa

Abstract

Background: Financial management and accuracy and consistency in reporting remain critical cogs of good governance in South Africa and beyond. The Auditor-General (AG) South Africa, being one of the constitutional instruments responsible for monitoring the consistent application of municipal finance frameworks, has revealed that despite sustained poor audit outcomes in municipal governments, there has been constant disregard for its positive proposals and recommendations for improvement.

Aim: This study aimed to analyse factors contributing to sustained poor audit outcomes in Mopani District Municipality (MDM) based in Limpopo province.

Methods: This study conducted a qualitative inquiry whereby data were collected from senior officials and documentary analysis of the Auditor-General’s statements was conducted to establish contributing factors to sustained poor audits in MDM.

Results: The results revealed numerous factors, chief of which are ineffective political leadership, weak internal audit systems and silo mentalities in municipalities in the district, which affect the financial performance of the district municipality.

Conclusion: Mopani District Municipality has not received a clean or improved audit opinion since 2016, and this has led to less commitment in taking collective action to address the Auditor-General’s concerns.

Contribution: The study ends by recommending practical steps to improve audit outcomes and financial governance, which are to build a strong internal audit system and design a district calendar for financial reporting to help the district municipality make timeous submissions of credible financial information during an audit.


Keywords

financial governance; Auditor-General; municipalities; Mopani District; South Africa.

JEL Codes

H70: General

Sustainable Development Goal

Goal 16: Peace, justice and strong institutions

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