Abstract
This study seeks to assess whether compliance with applicable laws and regulations is the core element required to enable a rural municipality to achieve a clean audit outcome. The overall objective of this study was to develop and put measures in place to assist rural municipalities to avoid non-compliance with laws and regulations. The study emphasised the evaluation of five key research objectives, namely, the formulation of the essence of compliance in the context of a rural municipality, the establishment of the requirements that are necessary for a rural municipality to be compliant, the examination of the reasons restricting compliance in rural municipalities, the determination of what could be done to promote compliance within a rural municipality and the assessment of the benefits of compliance with applicable laws and regulations for rural municipalities. A case study approach was adopted to analyse the compliance issues experienced at Msukaligwa Local Municipality, the selected rural local authority. The study endorsed a qualitative research methodology approach and data were collected through semi-structured personal interviews guided by an interview schedule. The interviews were conducted via virtual platforms and enabled the researcher to gain an in-depth view of this municipality’s compliance with applicable laws and regulations. The study revealed that compliance was a vital element in streamlining the municipal work environment. The study also found that compliance provided essential direction and guidelines for rural local authorities. The study showed that lack of expertise and capacity and high levels of political interference within rural local government were major factors that hindered compliance with applicable laws and regulations. The outcomes of the study found that ensuring compliance with laws and regulations resulted in better prospects for rural municipalities to obtain a clean audit outcome. The study recommended that a capacity gap analysis in the form of an ‘as is’ assessment should be implemented to determine the capacity status of all individuals within local governance clusters and to identify key shortcomings and gaps from a knowledge perspective. The study also recommended the development and implementation of a capacity-building training and development programme for all individuals within local governance clusters...