N$38m unaccounted for at Oshikoto Regional Council

Home Finance N$38m unaccounted for at Oshikoto Regional Council

WINDHOEK – The Auditor General says a recent audit of finances at the Oshikoto Regional Council could not verify there whereabouts of N$39 million due to non-submission of missing documents.

In his latest report on the accounts of the Oshikoto Regional Council for the 2012 financial year, Auditor General Junias Kandjeke says the regional council could not provide supporting documents for N$35 million for delegated function income, N$3.4 million used for general expenditures and N$112 285 on delegated function expenses during the year under review.

Leave pay provision for N$1.8 million was disclosed under trade and other payables in the financial statements, but the accuracy of the figure could not be confirmed as no supporting documents were submitted for audit purposes.

Kandjeke recommended that the regional council improves its filing system and that supporting documents should always be provided for audit purposes.

In the report Kandjeke indicates that N$2 million was provided for doubtful debts, adding that no explanation could be given on how the amount was calculated as the Oshikoto Regional council credit control policy and procedures do not mention the provision for doubtful debts.

“The chief regional officer is recommended to revise the Oshikoto Regional Council credit control policy and provide for aspects such as  provision for doubtful debts,” said Kandjeke.

Kandjeke also wants all water consumers living in settlement areas to be billed for water consumption and that interest is charged on overdue debtors.

The regional council failed to bill several customers’ accounts amounting to N$258 765 that date back to the 2009/2010 financial year, said Kandjeke.

“The auditors were unable to verify the reason doe the decision as no supporting documents were submitted for audit purposes,” he said.

New Era also learned that the Oshikoto Regional Council does not have a disaster recovery plan, and Kandjeke says this can lead to the council not being able to recover from any disasters.

The Auditor General says the regional council will not be able to identify and respond to  risks when it occurs because there is also no risk assessment policy in place.

The regional council spent N$26.8 million to construct properties in the 2012 financial year, yet the regional council has no security policy, says Kandjeke in his report, adding: “There is no clear direction to maintain information security across the council and to properly safeguard its assets.”

Some of the projects completed include a community hall, two constituency offices, the Oshikoto regional office complex, the Omuthiya Town Council office and the Tsumeb SME park.