Khorixas Town Council's fixed assets register unclear: AG

17 Mar 2014 13:30pm
WINDHOEK, 17 MAR (NAMPA) - The Office of the Auditor-General says it was difficult to audit the Khorixas Town Council's fixed assets register as some of the assets were not recorded.
This is according to information contained in the Report of the Auditor-General on the Accounts of the Town Council of Khorixas for the financial year ended 30 June 2013, which was tabled by The Minister of Finance, Saara Kuugongelwa-Amadhila in the National Assembly last Thursday.
“The fixed asset register cannot be used for audit purposes. There is a vehicle on the fixed assets register that was sold on public auction - N722KH Isuzu KB30. There is also a vehicle that does not reflect on the fixed assets register - N626KH Tata Tipper,” the report said.
It also noted that the dates for new additions are not included on the fixed assets register.
“I am unable to express an audit opinion due to reasons that the Value Added Tax (VAT) included in trade and other receivables is an amount of N.dollars 93 824 for VAT receivable, and no reconciliation of this amount could be provided to the auditors to verify the accuracy, existence and valuation of the amount,” the Auditor-General, Junias Kandjeke said in his opinion, which forms part of the report.
He further observed that no supporting documents could be provided for the movement of Build-Together and Capital Reserve funds, hence the existence, accuracy and completeness of these funds could not be verified.
The notes to the annual financial statements of the Khorixas Town Council indicated that N.dollars 99 087 was allocated to the Build-Together fund, N.dollars 22 068 to the Capital Development fund, and N.dollars 79 001 to the Housing Fund during the period under review.
The purpose of the Build-Together fund is to provide housing loan assistance to low income earners. The low income earners are expected to provide their house plans and are vetted for qualification before the funds are disbursed.
The report said it is a revolving fund - the low income earners are expected to repay these loans on a monthly basis for a period of up to 20 years, at an interest of five per cent per annum.
The income for the fund is derived from interest earned on secured housing loans and investments.
Kandjeke further observed that there is a difference of N.dollars 512 209 between the debtors’ age analysis and the debtor ledger accounts, and no detailed debtors age analysis could be provided by the council for audit purposes.
He also noted that there is a difference of N.dollars 618 606 between the salary register and the financial statements which could not be explained by the council.
There are also no proper marked water reading cards available for audit purposes and inventories are not recorded in the general ledger of the town council, and consequently not reflected in the financial statements.