The NLM improved from a disclaimer in 2007-09 to qualified audit opinion due to the appointment and strict supervision of consultants to assist with the implementation of the General Recognised Accounting Practice (GRAP) and the preparation of the current year's financial statements. The Municipality executive was committed in the monitoring of activities in the action plan. The provincial treasury committed itself to assist the NLM to improve its financial management and governance arrangements with aim of achieving clean audit opinion. Nkomazi Municipality, in turn, undertook to create and monitor their action plan to address the audit opinion of 2007- 08 with the process being overseen by the Municipal Council. The effect of the provincial treasury's intervention in response to the 2007-08 audit findings, as well as the Municipality's action plan has improved, hence the slight improvement from a disclaimer in 2007-08 to qualified audit opinion for the 2008/2009 financial year. The significant weaknesses that drive the NLM audit outcome qualification, is evident that the Chief Financial Officer (CFO) have not implemented basic accounting disciplines.