14 Mar 2019 15:30pm
WINDHOEK, 14 MAR (NAMPA) The Otjinene Village Council failed to submit all supporting documentation relating to the expenditure of N. dollars 34.1 million for the 2015/16 financial year, its latest audit report has revealed.
The report by Auditor General (AG) Junias Kandjeke was submitted to the National Assembly by deputy Minister of Finance, Natangwe Ithete recently.
In the report, Kandjeke identified seven key issues at which the council performed poorly.
The AG issued the council with a disclaimed audit opinion, which is given when an entity fails to provide the necessary documentation to provide a basis for an audit opinion.
The council, according to the report, did submit all supporting documentation amounting to N.dollars 11.1 million in 2015 and 22.3 million in 2016.
Among others,the report found the misstatements of value added tax (VAT) amounting to N. dollars 538 682 and employee cost amounting to N. dollars 170 679 for financial year 2016.
According to the report, all returns for the period 2016 were submitted late to the Receiver of Revenue and no bank reconciliations were performed.
There was no depreciation policy in place and credit policy not catering for provision of bad debts.
However, the Auditor General appreciates the co-operation and assistance by the management and staff of the Otjinene Village council during the audit period, the report added.
In the 2015 financial year, the council only declared a total revenue of N. dollars 1 449 637 as a result of services such as sewerage and water connections, refuse removal fees and basic water sales, the figures of which were not provided.
However, the councils revenue surged to N.dollars 5 485 170 in 2016, as all services including those excluded from the previous financial period were provided for in its financial statements.