The Gauteng Department of Social Development (GDSD) received a qualified audit opinion for the 2025/26 financial year due to multiple shortcomings, according to a report by GroundUp citing the Auditor-General South Africa (AGSA).
The department, tasked with providing social welfare services and funding non-profit organisations (NPOs), operated on a budget of R5.6-billion for 2025/26. Of this, R1.9-billion was allocated to NPOs providing social services. However, the Auditor-General could not verify the department’s performance claims for its two main audited programmes — social welfare services and children and families — because no supporting evidence was supplied.
GroundUp’s report notes the department claimed achievement levels of 86% for social welfare services and 73% for children and families, but these figures remain unverified by the Auditor-General. “The department had given no supporting evidence for its performance, so the AG could not verify the department’s claimed performance against targets,” the report states.
Audit findings revealed material misstatements, irregular expenditure, non-compliance with the Public Finance Management Act (PFMA), and significant supply chain management problems. The department reported approximately R1-million in newly confirmed irregular expenditure, but the Auditor-General remarked the true figure could not be fully determined due to incomplete disclosure. Notably, goods and services exceeding R1-million were procured without competitive bidding, despite the GDSD asserting it had implemented a no-deviation procurement policy at the end of the 2024/25 financial year.
The issues flagged in this audit follow a 2023 forensic audit that highlighted the department’s insufficient capacity to monitor and evaluate funded NPOs properly. Previous audits in 2023/24 and 2024/25 had produced unqualified opinions but included findings, indicating lingering governance and control weaknesses.
Motsamai Motlhaolwa, GDSD spokesperson, told GroundUp the department had assessed the Auditor-General’s findings and developed an audit improvement plan. He said, “The department diligently monitors resolution of findings on a weekly basis across all affected areas.”
Official Gauteng Department of Social Development documents identify the audit opinion on annual financial statements as a key performance indicator, monitored through AGSA’s audit process. This underscores the importance of clean audits for transparency and accountability in a department responsible for vulnerable communities.
The audit outcome matters because the GDSD oversees vital social welfare programmes and manages large public funds directed towards social service NGOs. Weak controls and incomplete reporting may directly undermine service delivery and public trust in government oversight.
As of 29 October 2026, this qualified audit opinion stands as a clear indicator that the department must strengthen its monitoring, compliance, and financial governance. CapeFlats.co.za will continue to follow developments, including the implementation status of the department’s audit improvement plan and any further disclosures regarding the full scope of irregular expenditure.