Rundu cooks its books to impress auditors
KENYA KAMBOWE
RUNDU
The 2016 and 2017 audited financial reports of the Rundu town council have exposed how the town’s accounts submitted to the auditor-general’s office were not a true reflection of its financial position but rather made-up numbers.
The National Council’s Standing Committee on Public Accounts and Economy last week heard that the council’s books indicated it had over N$45 million in its bank account, while the bank balance only stood at N$2 million.
Millions unaccounted
Another surprise was the unaccounted N$46 325 802 for Value Added Tax (VAT), as the council failed to produce documents.
The local authority further failed to submit documents on the trade and payable amounting to N$3 288 911, as well as documents as to how expenditure vouchers of N$3 682 503 were used.
The council also failed to provide documents on the over N$1.5 million of surcharges received from Nored.
‘A burden’
The committee, chaired by Peter Kazongominja, was left perplexed as to how the Rundu town council’s finance department with 30 staff members allowed the council to turn to a consultant to prepare their financial statements at a cost of over N$400 000 a year.
What irked the committee was the revelation that the computer program the consultant installed for the local authority has been obsolete since 1995.
The hearing showed how the town council was unable to deal with the queries raised in an auditor-general's report that pointed to poor accounting practices.
Committee member Harold Kambrude described the Rundu town council’s finance department as a burden to the local authority instead of a team that adds value.
At the hearing, the Rundu town council’s strategic finance officer Sam Nekaro, finance manager Phillip Munango and accountant Koleta Nsinano could not produce the documents that the committee requested.
The committee then decided to give the council seven days to submit all the outstanding documents flagged in the audit report.
[email protected]
RUNDU
The 2016 and 2017 audited financial reports of the Rundu town council have exposed how the town’s accounts submitted to the auditor-general’s office were not a true reflection of its financial position but rather made-up numbers.
The National Council’s Standing Committee on Public Accounts and Economy last week heard that the council’s books indicated it had over N$45 million in its bank account, while the bank balance only stood at N$2 million.
Millions unaccounted
Another surprise was the unaccounted N$46 325 802 for Value Added Tax (VAT), as the council failed to produce documents.
The local authority further failed to submit documents on the trade and payable amounting to N$3 288 911, as well as documents as to how expenditure vouchers of N$3 682 503 were used.
The council also failed to provide documents on the over N$1.5 million of surcharges received from Nored.
‘A burden’
The committee, chaired by Peter Kazongominja, was left perplexed as to how the Rundu town council’s finance department with 30 staff members allowed the council to turn to a consultant to prepare their financial statements at a cost of over N$400 000 a year.
What irked the committee was the revelation that the computer program the consultant installed for the local authority has been obsolete since 1995.
The hearing showed how the town council was unable to deal with the queries raised in an auditor-general's report that pointed to poor accounting practices.
Committee member Harold Kambrude described the Rundu town council’s finance department as a burden to the local authority instead of a team that adds value.
At the hearing, the Rundu town council’s strategic finance officer Sam Nekaro, finance manager Phillip Munango and accountant Koleta Nsinano could not produce the documents that the committee requested.
The committee then decided to give the council seven days to submit all the outstanding documents flagged in the audit report.
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