Oshana Regional Council fails to explain N.dollars 28 million
24 Mar 2018 13:20pm
WINDHOEK, 24 MAR (NAMPA) The Oshana Regional Council has failed to account for close to N.dollars 28 million recorded in its cash flow statements for property, plants and equipment.
The council received a qualified audit opinion from Auditor-General (AG) Junias Kandjeke for the financial year ended 31 March 2016.
A qualified opinion is a statement issued after an audit has been done and suggests that information provided was limited or the institution being audited did not maintain the appropriate accounting principles.
The audit report was tabled in the National Assembly by Deputy Minister of Finance Natangwe Ithete last week.
Kandjeke explained in the key audit findings that the council failed to explain an amount of N.dollars 27 899 631 in its cash flow statements for property, plants and equipment.
The AG further indicated that the councils management acknowledged that the amount was shown as property, plants and equipment, but also included an adjustment for non-cash items.
The AG further observed a difference of N.dollars 32 940 429 between the asset register and financial statement, with the council recording N.dollars 67 009 794 in its asset register and N.dollars 34 069 365 in its financial statements.
Furthermore, a difference of N.dollars 32 948 717 was observed between the asset register of N.dollars 18 550 429 and the depreciation in the financial statement of N.dollars 51 499 146.
The council management explained that the difference came about because it changed the accounting policy in terms of depreciating assets financed by Government grant.