The MLM did not disclose irregular expenditure of R378, 516, which was incurred during the financial year. This is contrary to section 125(2)(d) of the MFMA, which requires disclosure of irregular expenditure in the annual financial statement. The municipality did not have an audit committee in operation throughout the financial year. The annual report was not submitted to the auditors for consideration prior to the date of the auditor's report. Auditors experienced significant difficulties concerning delays or the unavailability of expected information and or the unavailability of senior management during the audit. Makhado Local Municipality owes approximately R270, 160 in outstanding audit fees to the Auditor - General.