Johannesburg - A rise in unqualified audits for Gauteng departments and municipalities reflects improved financial performance, Finance MEC Mandla Nkomfe said on Tuesday.
"Our sense is that although there are still challenges in certain areas, overall the province is on the right path," he said in a statement.
"We have eliminated adverse audit findings and disclaimers in our departments, municipalities, and public entities."
Nkomfe briefed a National Council of Provinces meeting held at the legislature to discuss the state of local government and service delivery in the province.
He gave a progress report on Operation Clean Audit in Gauteng.
In his statement, Nkomfe said 92% of Gauteng departments achieved an unqualified audit opinion last year.
Of 16 public entities, seven achieved clean audits and eight were unqualified. Only the Gauteng Liquor Board received a qualified report.
An unqualified opinion shows the auditor's endorsement of the accuracy and adequacy of disclosed information and of a department’s financial picture.
Nkomfe said the increase in unqualified audits was recognised, but that more needed to be done to achieve clean audits.
"That is why, among other things, the Gauteng provincial treasury is working closely with the department of health to address material issues that result in the failure to achieve a desired audit outcome." he said.
"We need to improve compliance with regulations, such as the Public Finance Management Act and Treasury Regulations."
Nkomfe said the Treasury had made direct interventions at a municipal level to make sure financial management improved.
This included placing acting chief financial officers and accountants in the Randfontein and Westonaria municipalities, and accountants or advisors in Lesedi, Midvaal, and Mogale City.
"The provincial government remains committed to assisting and supporting local government towards ensuring sound financial management in municipalities," he said.
"It is, however, very important to note that accountability still lies with local government as a distinct sphere of government to ensure that it performs and deliver services to communities."