Veterans' Fund receives adverse audit opinion

08 Nov 2018 16:00pm
WINDHOEK, 08 NOV (NAMPA) – Auditor-General (AG) Junias Kandjeke has given an adverse audit opinion to the Veterans’ Fund under the Ministry of Veterans Affairs for its failure to provide financial statements that give a true and fair reflection of its financial position.
An adverse opinion is a professional opinion made by an auditor indicating that a company’s financial statements are misrepresented, misstated and do not accurately reflect its financial performance and health.
The information is contained in the Veterans’ Fund’s audit report for the 2013/14, 2014/15 and 2015/16 financial years, submitted to the National Assembly by Minister of Finance, Calle Schlettwein on Tuesday.
Kandjeke found incorrect employee cost allocation, unexplained adjustments, wrongly processed expenditure, bank reconciliations that were not done, no cashbook, trial balance figures that differ from financial statements and no financial policy in place.
The AG found that salaries amounting to over N.dollars 1.5 million in 2016 and over N.dollars 449 000 in 2015 were wrongly allocated to the expenditure from interest on the general ledger account.
Additionally, incorrect allocation amounting to over N.dollars 86 000 in 2014 and over N.dollars 1.4 million in 2013 were observed in the salary general ledger.
“In my opinion because of the significance of the matter discussed in basis for adverse audit opinion, the financial statements do not give a true and fair view,” Kandjeke was quoted as saying in the audit report.
To remedy the situation, he recommended that the fund capture all transactions in the correct general ledger account.
Auditors also found that an unexplained adjustment of over N.dollars 9 million in 2013 was made in the statement of changes in equity.
Furthermore, the AG observed that the fund does not have a policy on virements.
“It is recommended that the fund reconcile and disclose all relevant accounts in the financial statements to misstatement,” Kandjeke said.