Kunene finances in shambles
The Kunene regional council has received an adverse audit opinion from the Office of the Auditor-General for the 2016/17 financial year.
The opinion was contained in the AG's audit report tabled in the National Assembly by finance minister Calle Schlettwein recently.
The report said over N$54.5 million was misrepresented, misstated and did not accurately reflect the council's financial performance and health for the year under review.
“The financial statements do not present fairly the cash flows, receipts and payments for the 2016/17 financial year in accordance with the relevant accounting framework or legislation,” AG Junias Kandjeke said in the report.
According to him, supporting documents on grants, donations and expenditure, comprising of payables in the debit balance, unrecorded liabilities, the non-clearance of a suspense account and unconfirmed opening balance of stock, were not provided for the purpose of the audit.
The AG found there were no supporting documents for general expenditure amounting to over N$2 million.
Furthermore, the AG's office was unable to confirm the existence of opening stock of over N$6 million, due to the unavailability of supporting documents such as the Build Together programme's stock report.
The report also observed a difference of over N$1.1 million between the general ledger and the VIP payroll report, along with a difference amounting to over N$22 million between the cash book and the general ledger.
In addition, it was noted that an amount of N$1 million was not accrued for accounts payable and that a suspense account balance of N$13 million was not cleared.
To remedy the situation, Kandjeke recommended that the regional council ensure stock-taking for the Build Together programme, provide supporting documents for auditing purposes and adhere to accrual basis accounting by entering transactions when they occur.
NAMPA
The opinion was contained in the AG's audit report tabled in the National Assembly by finance minister Calle Schlettwein recently.
The report said over N$54.5 million was misrepresented, misstated and did not accurately reflect the council's financial performance and health for the year under review.
“The financial statements do not present fairly the cash flows, receipts and payments for the 2016/17 financial year in accordance with the relevant accounting framework or legislation,” AG Junias Kandjeke said in the report.
According to him, supporting documents on grants, donations and expenditure, comprising of payables in the debit balance, unrecorded liabilities, the non-clearance of a suspense account and unconfirmed opening balance of stock, were not provided for the purpose of the audit.
The AG found there were no supporting documents for general expenditure amounting to over N$2 million.
Furthermore, the AG's office was unable to confirm the existence of opening stock of over N$6 million, due to the unavailability of supporting documents such as the Build Together programme's stock report.
The report also observed a difference of over N$1.1 million between the general ledger and the VIP payroll report, along with a difference amounting to over N$22 million between the cash book and the general ledger.
In addition, it was noted that an amount of N$1 million was not accrued for accounts payable and that a suspense account balance of N$13 million was not cleared.
To remedy the situation, Kandjeke recommended that the regional council ensure stock-taking for the Build Together programme, provide supporting documents for auditing purposes and adhere to accrual basis accounting by entering transactions when they occur.
NAMPA
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