Zambezi audit flags missing records, unsupported allowances
• Report highlights gaps
The government audit notes that overall reliability of the council's financial results was affected by the weaknesses identified by auditors.
Phillipus JosefRundu
Auditor-general Junias Kandjeke has issued a disclaimer of opinion on the financial statements of the Zambezi Regional Council for the year ended 31 March 2024, citing unsupported allowances, missing records, unreconciled deposits and supplier account discrepancies.
Tabled in parliament, the AG’s report noted that council paid N$44 917 in travel and subsistence allowances to key officials without submitting documentation to prove the payments were valid.
Required records such as invitations, attendance registers and proof of participation were also not provided.
The report stated that the absence of such records made it impossible for auditors to confirm whether the allowances were justified.
Missing minutes, cash
and accounts
The AG also flagged the unavailability of minutes from meetings held on 25 October 2023 and 29 June 2023.
While other evidence showed that the meetings took place, the minutes could not be traced. The report noted that meeting records are part of essential council documentation, as they capture resolutions and decisions taken at official sittings.
The report further identified N$14 357 in unreconciled deposits, which the auditor-general linked to missing receipt books. This was described as an indication of weak cash controls, as it meant deposits recorded in the cashbook were not properly supported by receipts.
Another issue raised was the condition of the council’s supplier accounts.
At the end of the financial year, supplier payables showed a negative balance of N$4 068 711.
The auditor-general explained that this was caused by a failure to reconcile payables against supplier statements and remittances, which distorted the balances reflected in the accounts.
Revenues During the 2023/24 financial year, council reported revenue of N$69.3 million, an increase from N$59.2 million in the prior year.
Expenditure amounted to N$72 million, resulting in a deficit of N$2.7 million.
The deficit represented an improvement compared to the N$60.9 million deficit reported in 2022/23.
However, the auditor-general noted that the overall reliability of the financial results was affected by the weaknesses identified in the audit.
The report also showed that cash and cash equivalents decreased from N$13.3 million in 2023 to N$11.3 million in 2024, while equity fell from N$171.7 million to N$169.3 million.
Audit conclusionGiven the extent of the shortcomings, the auditor-general issued a disclaimer of opinion – the most severe audit outcome.
This means that the auditors could not obtain sufficient appropriate evidence to express an opinion on the council’s financial statements.
The disclaimer pointed to gaps in recordkeeping and financial management practices at the regional authority, which is mandated under the Regional Councils Act of 1992 and the State Finance Act of 1991 to maintain proper records and submit accurate financial reports.
[email protected]
Auditor-general Junias Kandjeke has issued a disclaimer of opinion on the financial statements of the Zambezi Regional Council for the year ended 31 March 2024, citing unsupported allowances, missing records, unreconciled deposits and supplier account discrepancies.
Tabled in parliament, the AG’s report noted that council paid N$44 917 in travel and subsistence allowances to key officials without submitting documentation to prove the payments were valid.
Required records such as invitations, attendance registers and proof of participation were also not provided.
The report stated that the absence of such records made it impossible for auditors to confirm whether the allowances were justified.
Missing minutes, cash
and accounts
The AG also flagged the unavailability of minutes from meetings held on 25 October 2023 and 29 June 2023.
While other evidence showed that the meetings took place, the minutes could not be traced. The report noted that meeting records are part of essential council documentation, as they capture resolutions and decisions taken at official sittings.
The report further identified N$14 357 in unreconciled deposits, which the auditor-general linked to missing receipt books. This was described as an indication of weak cash controls, as it meant deposits recorded in the cashbook were not properly supported by receipts.
Another issue raised was the condition of the council’s supplier accounts.
At the end of the financial year, supplier payables showed a negative balance of N$4 068 711.
The auditor-general explained that this was caused by a failure to reconcile payables against supplier statements and remittances, which distorted the balances reflected in the accounts.
Revenues During the 2023/24 financial year, council reported revenue of N$69.3 million, an increase from N$59.2 million in the prior year.
Expenditure amounted to N$72 million, resulting in a deficit of N$2.7 million.
The deficit represented an improvement compared to the N$60.9 million deficit reported in 2022/23.
However, the auditor-general noted that the overall reliability of the financial results was affected by the weaknesses identified in the audit.
The report also showed that cash and cash equivalents decreased from N$13.3 million in 2023 to N$11.3 million in 2024, while equity fell from N$171.7 million to N$169.3 million.
Audit conclusionGiven the extent of the shortcomings, the auditor-general issued a disclaimer of opinion – the most severe audit outcome.
This means that the auditors could not obtain sufficient appropriate evidence to express an opinion on the council’s financial statements.
The disclaimer pointed to gaps in recordkeeping and financial management practices at the regional authority, which is mandated under the Regional Councils Act of 1992 and the State Finance Act of 1991 to maintain proper records and submit accurate financial reports.
[email protected]
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