WINDHOEK – Koës Village Council’s unaccounted millions of dollars, the late submission of financial statements and outstanding loan repayments are some of the items displeasing the Auditor General, Junias Kandjeke. The Auditor General made the remarks of not being satisfied with operations at the Koës Village Council, in a report on the accounts of the village council for the financial years that ended 30 June 2011 and 2012 which was tabled in Parliament by the Minister of Finance, Saara Kuugongelwa-Amadhila a week ago.
“The accounting and internal controls are not satisfactory. Proper segregation of duties is not feasible due to the small number of staff employed,” said Kandjeke.
The Auditor General revealed that the provision for bad debts is understated by approximately N$7.8 million for between 2010 and 2012. A list of Build Together advances amounting to N$6.6 million between 2010 and 2012 was also not available for audit.
He said the 2011 and 2012 financial statements were only submitted last year on 28 January and 21 February instead of within three months after the financial year ends as prescribed by law.
Kandjeke’s report indicates that the village council owes government N$601 648. “Installments on external loans from central government for the years under review were not paid. No provision for interest on arrear payments has been made,” Kandjeke said.
Kandjeke said auditors could not obtain satisfactory information regarding the movement of motor vehicles for the years under review. “Certain balance sheet items are clearly not correct and unless the errors identified are rectified in the financial systems and records, the annual financial statements cannot be seen as a fair reflection of the financial position of the council,” said Kandjeke.
Bank reconciliations were also not available during the review period.
As a result of a lack of internal control policies, Kandjeke said auditors could not find satisfactory information or comment on the amount of loans written off, erven sales, tariff adjustments or any inventories.
Kandjeke warned that the council and management risks overriding existing controls with increased management involvement.
He also called for the integrity of staff in appropriate positions to be reviewed to ensure that qualified personnel are employed in respective positions.
By Mathias Haufiku