Financial Audit Outcomes

The terminology used is described by the Auditor General South Africa as follows:
‘Adverse audit opinion’ – The financial statements contain misstatements that are not confined to specific amounts or the misstatements represent a substantial portion of the financial statements.
‘Disclaimer of audit opinion’ – There was insufficient appropriate evidence (documentation) on which the auditor could base an opinion concerning the items reported in the financial statements. The lack of sufficient evidence is not confined to specific amounts or represents a substantial portion of the information contained in the financial statements.
‘Qualified audit opinion’ – The financial statements contain material misstatements in specific amounts or there is insufficient evidence for the auditor to conclude that specific amounts included in the financial statements are not materially misstated.
An audit outcome listed as ‘Financially unqualified with no findings’ is also referred to as a “clean audit”, the goal of government’s Operation Clean Audit. A clean audit relates to three aspects: (i) the financial statements are free from material misstatements; (ii) there are no material findings on the annual performance report; and, (iii) here are no findings on compliance with key laws and regulations.
An audit outcome listed as ‘Financially unqualified with findings’ means that the financial statements are free from material misstatement and therefore financially reliable, but the audit report contains material findings regarding other areas of non-compliance.

Blue Drop Scores

The Blue Drop Scores are sourced from the annual Blue Drop Reports published by The Department: Water Affairs. The Municipal Blue Drop Score is a performance indicator of the overall municipal drinking water quality management performance of the relevant municipality. The score relates to not only the quality of the drinking water, but also contains a risk management measure relating to the ability of the responsible authority to sustain the quality of drinking water and also to deal with any incidents that may pose a health risk to the public. The maximum score is 100 and the target of excellence is 95%.

Green Drop Scores

The Green Drop Scores are sourced from the annual Green Drop Reports published by The Department: Water Affairs. The Municipal Green Drop Score is a performance indicator of the overall municipal wastewater business practice and compliance of the relevant municipality. The maximum score is 100.

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