10 Aug 2015 19:30pm
WINDHOEK, 10 AUG (NAMPA) Auditor-General Junias Kandjeke has expressed disappointment in local authorities that continue to ask for extensions regarding the submission of financial statements.
He made this remark in the capital on Monday during the opening of the Third Stakeholders briefing session between the Office of the Auditor-General and town councils and village councils.
Kandjeke stressed that there are some town councils that need to be graduated from their current financial status to a clean financial report status.
He said the total income for all town councils for 2013 amounted to N.dollars 776.6 million, while the total expenditure amounted to N.dollars 756.6 million.
The financial year of town councils start in July and end in June the following year.
Kandjeke added that the overall operation surplus for the year under review amounted to about N.dollars 17 million of income.
The accumulated deficit stood at N.dollars 36 million while the total assets for town councils by the year 2013 stood at N.dollars 1.9 billion.
He further noted that the central government's surplus for the year ended 2013 stood at N.dollars 1.7 billion or 4.5 per cent of that year's budget of N.dollars 37.7 billion.
The Auditor-General explained that the central government's lowest underspending was N.dollars 300 000 and the highest underspending was N.dollars 70.3 million, while overspending for the year under review was N.dollars 1.9 million.
Kandjeke pointed out that some town councils got loans from central government, and in 2013 the capital arrears stood at N.dollars 8.7 million with outstanding interest of N.dollars 23.4 million.
No proof of payment to government by a single town council or village council was registered that year due to financial constraints. Seven out of 16 municipalities made loan payments to reduce their outstanding balances, he stated.
Kandjeke observed that about 64 per cent of the town councils have received qualified audit opinions and 36 per cent of them received disclaimed audit opinions.
He explained that some of the reasons for not getting clean audit opinions could be bad and doubtful recoverability of debtors and no sufficient audit evidence to confirm the bank balances as per the financial statements, among others.
The five-day session brings together more than 50 participants from about 25 town councils and village councils in the country.
It ends Friday.