06 Mar 2019 19:00pm
WINDHOEK, 06 MAR (NAMPA) Auditor-General (AG) Junias Kandjeke has issued a disclaimer audit opinion to the Namibia Press Agency (Nampa) for its failure to provide auditors with enough evidence to justify unauthorised journal entries amounting to N.dollars 8.2 million.
A disclaimer opinion is given to institutions where the auditors were not able to obtain sufficient appropriate evidence for the audit.
This information is captured in the AG's report on the agencys accounts for the 2016/17 financial year that was submitted to the National Assembly by Deputy Finance Minister Natangwe Ithete on Tuesday.
Kandjeke premised his opinion on three key issues the unauthorised journal entries, lack of reconciliation of accounts receivable and payable and bonus provisions that were understated during the period under review.
Because of the significance of the matters described in the Basis for Disclaimer of Audit Opinion paragraph, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, I do not express an opinion for the financial statement, Kandjeke states in the report.
In response to the auditors finding, Nampa Chief Executive Officer (CEO), Isack Hamata attributed the adverse finding to the companys migration from the old to the new fixed asset management system.
In the migration process, the system generated journal entries amounting to N.dollars 8 222 923, which is a rather significant amount, on the financial statement, Hamata said.
He however said the agency has worked very hard to address the issues raised by the auditor general.
I can confidently state that we have resolved the challenges with the asset management system and other issues raised by the auditor general. We are further hopeful that the 2018 audit report will show an improved picture.
During the period in question, the Nampa board of directors spent N.dollars 148 896 on other expenses and received N.dollars 1.07 million in sitting allowances.
The report also showed that Nampa spent just over N.dollars 400 000 on the maintenance of its building.
The agency recorded N.dollars 9.5 million in profits during the period under review - N.dollars 7.9 million from news subscriptions, N.dollars 146 435 from IT trading and N.dollars 1.4 million from its rented properties.