Millions unaccounted for at Arts Council

27 Jun 2013 08:00
WINDHOEK, 27 JUN (NAMPA) ? The Parliamentary Standing Committee on Public Accounts (PAC) on Thursday recommended that a forensic audit be conducted into the financial affairs of the National Arts Council of Namibia (NACN).
This was after the acting Council Administrator of NACN, Theo Handura who appeared before the PAC in the capital on Thursday, could not answer questions about missing NACN funds.
According to PAC Chairperson Usutuaije Maamberua, the 2009 audit report from the Auditor-General (AG) found that 10 vouchers selected for auditing could not be provided by the Council.
The failure to submit these expenditure vouchers has been reported for the past four consecutive years and the PAC wanted to know why the council has failed to submit the vouchers to the AG as requested.
The 2009 report registered concern that they were not provided with records of artists paid or sponsored by the council which amounted to N.dollars 386 316,75 (2009) and N.dollars 65 771,30 (2008) respectively.
?You have failed to submit to the Auditor-General adequate vouchers as payments made to the artists. The committee therefore recommends that a forensic audit should be conducted in your organisation,? Maamberua said.
Handura, in his defence, told the PAC that the NACN is a small organisation which consists of only three employees and the finance department is outsourced to consultants, which might be why some funds could not be accounted for.
The PAC Chairperson noted that the AG?s report of 2009 shows that grants received are disclosed as long-term liabilities in the balance sheet for the fourth consecutive year amounting to N.dollars 1 405 000 and N.dollars 973 000 (2008).
The balance sheet provided to the auditors did not balance, Maamberua said, adding that the total equity is disclosed as N.dollars 1 727 048,86 while total assets stood at N. dollars 1 295 907,11 which gives an unexplained difference of N. dollars 431 141.75.
Handura could not give an explanation for this, neither could he say why grants received were disclosed as liabilities for so many years.
He also could not give an explanation on the 2010 report by the AG, which indicated that grants received to the amount of N.dollars 1 218 000 could not be confirmed by the auditors.
This resulted in the PAC ordering Handura, who was the sole NACN representative, to get his organisation in order.
?We are sending you back to re-organise yourself and we will inform the Permanent Secretary in the ministry, the board of the council and yourself when to come back for the hearing,? Maamberua stated.