Kandjeke pokes holes in Ohangwena’s accounting processes

11 Oct 2018 14:50pm
WINDHOEK, 11 OCT (NAMPA) – Auditor-General (AG) Junias Kandjeke has given the Ohangwena Regional Council an adverse audit opinion after it found a host of irregularities in its financial statements for the 2013/14 financial year, an audit report shows.
An adverse opinion is a professional opinion made by an auditor indicating that an entity’s financial statements are misrepresented, misstated and do not accurately reflect its financial performance and health.
“In my opinion, because of the significance of the matters described in the basis of adverse audit opinion paragraph, the financial statements did not give a true and fair view of the financial position of the Ohangwena Regional Council as at 31 March 2014,” Kandjeke said.
The region’s audit report for the 2013/14 financial year was tabled in the National Assembly by Finance Minister Calle Schlettwein on Wednesday.
“Differences amounting to N.dollars 7 427 292 for current assets, N.dollars 7 290 775 for current liabilities and N.dollars 136 457 for accumulated funds were observed between the opening balances in the current year and the year’s financial statements,” Kandjeke stated.
In addition, there is an unexplained difference amounting to N.dollars 14 854 524 on the opening balance.
To address this, the AG recommended that the council should ensure that opening balances disclosed in the current financial statements agree with the previous year’s closing balances.
The AG also found that the regional council did not submit income receipts amounting to N.dollars 330 884.
There was a further non-submission of supporting documents amounting to N.dollars 244 516.
During the period under review, there was also a misrepresentation of a bank account amounting to N.dollars 1.26 million.
There is a further overstatement of cash and cash equivalent with N.dollars 2.5 million and an incorrect cash flow statement.
The auditor also found an incorrect disclosure of expenditures and rates and levies amounting to N.dollars 278 812 and N.dollars 274 516 respectively.
“It is recommended that the council ensure that transactions are properly recorded within the relevant accounting period,” Kandjeke ordered.
He added that in the future, the Ohangwena Regional Council should ensure that supporting documents are properly filed, safeguarded and provided for audit purposes.
In addition, the financial statement was only submitted to the AG’s office on 03 November 2017, instead of three months after the end of the financial year in question.
(NAMPA)
MEM/AS/PS