Gauteng municipalities commit to stronger financial management through interim reporting protocol

Gauteng municipalities have reaffirmed their commitment to strengthening financial management, accountability and transparency following the signing of the provincial Interim Financial Statement (IFS) Protocol on Tuesday, 6 October 2026. The signing ceremony, hosted at the Brixton Multipurpose Centre in the City of Johannesburg, brought together political principals, municipal managers and chief financial officers from municipalities across the Gauteng province.

The protocol is aimed at supporting municipalities in preparing credible interim financial statements, implementing corrective measures and coordinating interventions to address financial management challenges before they escalate.

City of Johannesburg Executive Mayor, Cllr Dada Morero, said it was an honour for Johannesburg to host the provincial gathering, stressing the importance of sound financial management in ensuring that municipalities remain accountable to residents and ratepayers. “Our commitment to good governance was aligned with the objectives of the Joburg 2040 Growth and Development Strategy, which seeks to improve the quality of life of residents. At the heart of that commitment, the city must be accountable to its residents and ratepayers," he said.
Cllr Morero said regular interim financial reporting would help municipalities identify financial management challenges early, rather than waiting until the end of the financial year. “Interim financial reporting breaks down those silos. When we close our books properly every quarter and every half of the financial year, we see the problems while they are still small. Council gets accurate information to make decisions, oversight committees get something real to scrutinise, and we arrive at the final audit prepared."

Auditor-General South Africa (AGSA) Business Unit Leader Fhumulani Rabonda welcomed the initiative, describing the protocol as an important intervention to strengthen preventative controls within municipalities. “As the Auditor-General of South Africa, we welcome and support initiatives that are designed to strengthen preventative controls within municipalities," Rabonda said.

“Prevention is always more effective, less costly and more sustainable than correction.

The interim financial statements provided management and governance structures with an opportunity to assess the quality of financial information, identify weaknesses in internal controls and correct errors before they developed into significant audit findings. When properly implemented, they provide management and governance structures with an early opportunity to assess the quality of financial information, identify weaknesses in controls and correct errors before they become significant audit issues," he said.

South African Local Government Association (SALGA) Gauteng Chairperson Alderman Jongizizwe Dlabathi also expressed support for the initiative, saying the signing represented a shared commitment to collaboration in strengthening financial reporting and internal controls. “We wish to express our support. Today's ceremony marks a shared commitment to collaboration towards strengthening financial reporting, internal controls and ensuring readiness insofar as the audit is concerned," Dlabathi said.

Gauteng MEC for Cooperative Governance and Traditional Affairs (COGTA) Jacob Mamabolo emphasised the importance of municipalities submitting their financial statements to the Auditor-General South Africa within the required timeframes. Mamabolo described the protocol as a partnership between COGTA, municipalities and AGSA aimed at improving compliance and the quality of municipal financial statements.

“Let us use this protocol signing to build a good relationship with AGSA," Mamabolo said.

He also called for a fundamental shift in how municipalities approach auditing, arguing that audit processes should be embedded in everyday financial management rather than treated as an annual exercise.

The signing of the IFS Protocol marks a concerted effort by Gauteng's local government stakeholders to strengthen financial reporting, improve internal controls and promote a culture of preventative financial management across municipalities. The initiative is expected to support municipalities in identifying challenges earlier, taking corrective action during the financial year and improving their preparedness for the annual audit process.

Written by Nkosinathi Nkabinde
07/10/2026

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