City of Tshwane deputy mayor and MMC for finance Eugen Modise photo Dimakatso Modipa
By Cllr Eugene Modise
Deputy Executive Mayor of Tshwane and MMC for Finance
The City of Tshwane received the Auditor-General’s audit report for the 2024/25 financial year yesterday.
Although the report has not yet been tabled in Council and remains at an internal stage, it already provides a clear picture of the progress the City
has made over the past financial year.
The audit reflects areas where we have
strengthened our financial governance and where the work of the administration is beginning to show measurable results.
In the 2021/22 financial year Tshwane received an adverse audit opinion, which
signalled a deep breakdown in financial management and governance.
In 2022/23 the City improved marginally, receiving a qualified opinion with thirteen separate qualification areas.
Together these outcomes demonstrated the extent of the institutional failures that the administration inherited and the scale of the work required to restore stability.
Although the audit outcome for 2024/25 remains qualified, the latest report reflects clear and measurable improvements.
The most notable is the reduction in qualification areas, which have decreased from six in 2023/24 to only two in 2024/25.
This marks meaningful progress and confirms that the interventions introduced through the Audit Outcome Remedial Action Plan are beginning to strengthen the City’s financial governance.
There has also been encouraging progress within our municipal entities.
Housing Company Tshwane achieved an unqualified audit opinion for 2024/25, which is an improvement from the previous year.
While there are still findings on performance information and compliance, the improvement in the financial
statements marks an important step in stabilising the entity.
The Tshwane Economic Development Agency sustained its unqualified audit opinion. Although compliance matters still require focused attention, the consistency of TEDA’s financial reporting is a positive sign.
The unqualified outcomes for both
HCT and TEDA indicate that governance within the City’s entities is improving.
In light of the report, the remedial actions implemented throughout the year will remain in place to address the remaining qualification areas and strengthen the overall audit process.
These steps included improved internal coordination through the Audit Steering Committee and the Executive Audit Tracking Committee, better preparation
and quality of working papers, and stricter requirements for departments to submit information on time.
These efforts have contributed to a more orderly audit process and a stronger internal control environment.
These improvements, while significant, do not mean that the work is complete.
The two remaining qualification areas must be resolved as a matter of urgency.
Compliance with legislation and the reliability of performance information must improve across all departments and the entities.
Our objective remains to move the City out of qualified audit status and to rebuild financial credibility in a sustainable and transparent manner.
The administration will continue to implement the Audit Outcome Remedial Action Plan and strengthen oversight structures to ensure we meet the standards required by law.
We remain committed to open and accountable financial management and we will provide a further update when the consolidated audit report is tabled in Council in January.
As we conclude this process, the direction of travel is clear.
Tshwane is moving in the right direction.
The improvements reflected in this audit demonstrate a City that is rebuilding its financial foundations and strengthening the systems that support
effective service delivery.
We remain committed to accelerating this progress and restoring full confidence in the City’s financial governance.
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