Matabeleland South’s rural district councils continue to struggle with financial management, asset controls, and compliance with accounting standards, according to the Auditor-General’s (AGs) 2025 audit report covering the 2024 financial year.
The findings cover Matobo, Umzingwane, Mangwe, Bulilima, Gwanda, Insiza and Beitbridge RDCs.
While some councils showed progress on previous recommendations, the AG warned that significant gaps remain in financial reporting, revenue collection, and service delivery.
Beitbridge RDC received an adverse opinion for the second year running.
Auditors found major weaknesses in foreign currency translation, with the council using interbank rates that did not meet the definition of spot rates under International Public Sector Accounting Standards (IPAS) 21, potentially distorting financial statements.
The council also continued using the cost model for property valuation despite operating in a hyperinflationary environment, and incorrectly classified rental properties as plant and equipment instead of investment property.
Failure to assess expected credit losses on receivables further risked overstating assets.
Of seven findings raised in the previous audit, only one was partially addressed, with six unresolved.
- Mat South councils’ financial rot exposed
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In Insiza RDC, key issues included recognising beer levy revenue on a cash basis rather than accrual, contrary to IPSAS 47, and failing to provide for expected credit losses on receivables under IPSAS 41.
The council also omitted leave pay provisions and did not assess asset impairment.
Management acknowledged the gaps, citing difficulties in obtaining sales schedules from breweries.
However, the council made significant progress, fully addressing eight of 11 previous findings.
Bulilima RDC failed to recognise stands held for sale as inventory and recognised revenue from stand sales before performance obligations were met, contrary to IPSAS 12 and 47.
It also did not assess assets for impairment and continued to misclassify rental properties.
Unresolved issues from prior audits include late financial submissions and failure to assess credit losses.
Mangwe RDC received a qualified opinion for 2023, with auditors citing omissions in leave pay provisions and expected credit losses on receivables worth ZWL1,25 billion.
The council also lacked key operational policies on asset management, debt, transport, and ICT, relying instead on council resolutions.
Service delivery gaps were noted, including a clinic without sterilisation equipment and a growth point operating without a proper landfill.
While six of 12 previous findings were resolved, five remain outstanding, including creditor reconciliation and beer levy data gaps.
Matobo RDC received a qualified opinion for 2024 after failing to recognise land in its financial statements and not assessing asset impairment.
A major service delivery concern was the Nhlupho clinic project, started in 2016, but still incomplete as of September 2025 due to inconsistent funding.
Management said funding shortages hindered progress, though external contributions had helped complete one staff house.
Of seven previous audit findings, only one was fully addressed, with four still unresolved.
Across all councils, common weaknesses include failure to comply with IPSAS on revenue recognition, asset valuation, impairment, and expected credit losses.
Governance deficiencies, such as missing policies and poor record-keeping, persist.
The AG urged councils to strengthen financial controls, conduct regular asset valuations, and improve debt management to enhance transparency and accountability.
The report called for urgent corrective action to ensure that rural district councils can deliver effective services to their communities.
