Ondangwa Town Council receives qualified audit report
24 Oct 2018 07:20am
WINDHOEK, 24 OCT (NAMPA) The Ondangwa Town Council received a qualified audit report for the 2016/17 financial year, amongst others due to non-submission of supporting documents and the absence of a depreciation and accounting policy report framework.
The town council also did not comply with the Auditor-Generals requirements, the latest audit report of the AG tabled in the National Assembly recently by Minister of Finance, Calle Schlettwein, showed.
A qualified report is a statement issued after an audit is completed, suggesting that the information provided is limited in scope and that it did not maintain the AGs accounting principles.
According to the reports key audit findings the council could not provide supporting documents for a service level agreement amounting to more than N.dollars 900 000 for audit purposes.
A difference of more than N.dollars 400 000 was also observed between transactions in the ledger and bank statements on interest received for the councils current account.
The AG recommended that the council ensure that all documents requested be provided for audit purposes and that a monthly bank reconciliation be performed.
The report further revealed that the council does not have a depreciation policy, which is a method of reallocating the cost of a tangible asset over its useful lifespan.
It also noted that the council did not indicate the accounting framework used for preparation of financial statements.
The council did not provide the annual financial statements and accounts in compliance to the AG requirements, it further noted.
It recommended that the council should ensure that a depreciation policy is drafted and approved as a matter of urgency and that accounting framework be used for preparation of financial statements.