b) Annual financial statements, performance and annual report: The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1)(a) and (b) of the Public Finance Management Act (No 1 of 1999) (PFMA). Material misstatements of current assets, liabilities and disclosure items identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.