The MoLM received a qualified audit opinion for the 2008/2009 financial year. This is mostly due to lack of accounting capacity and skills to deal with technical accounting issues. The lack of routine reconciliations of balances and accounts by officials, lapses in the control activities as well as inadequate monitoring were also factors contributing to the negative audit outcome. The MoLM did not provide to auditors the clear trail of financial statement and management information needed. Auditors were unable to express audit opinion on the financial statement of the municipality for the year ended 30 June 2007.