WINDHOEK - State-owned regulatory and air traffic services organisation, Namibia Civil Aviation Authority (NCAA), incurred a net loss of N$111, 7 million during the 2017/18 financial year and generated negative cash flows from operating activities totaling a whopping N$163, 6 million.
This is according to the authority’s 2017/18 annual report tabled by its line minister, of Works and Transport John Mutorwa, in the National Assembly on Tuesday.
The report by NCAA director for the period ended 31 March 2018, sanctioned by their auditors PricewaterhouseCooper (PwC), said the loss, along with other matters, indicates the existence of a material uncertainty which may cast significant doubt on the authority’s ability to continue as a going concern.
PwC said it conducted its audit in accordance with International Standard on Auditing (ISA) and their responsibilities under those standards are further described in the auditors’ responsibilities audit of the financial statements section of their report.
“Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion,” PwC said. According to the director’s report, the annual financial statements have been prepared on the basis of accounting policies applicable to a going concern.
“This basis presumes that the authority will be able to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of the business,” the report further read.
It said the authority’s cash reserves together with national budget allocations are sufficient resources to maintain operations for the foreseeable future. “Future plans include an adjustment to changes and fees to the aviation industry that were previously heavily subsidised by government. This will ensure cost recovery and the continued financial viability of the authority,” it read. Furthermore, as part of its establishment process, the authority board said currently, they have staff seconded and contracted from both the work ministry and from the International Civil Aviation Organisation (ICAO).
“It is the intention of the authority to cease with the secondment and contracts in the next financial year or once the required structures are in place,” stated the audit report.
NCAA Executive Director Angeline Simana said historically, the financial performance of the aviation industry has been heavily subsidised by government, a situation reflected in the net result and is set to change with the introduction and amendment of fees and charges.
“The NCAA is not an entity for gain, it however, employs a user-pay principle to all fees and charges,” she said, adding that the authority’s objective is to be financially sustainable, whilst controlling costs to the benefit of all stakeholders.
Simana said with the financial assistance from government, the NCAA has spent N$167 million on development projects in support of the aviation authority since its establishment.
These projects, she said included systems, equipment and property, including the completion of the NCAA’s new head office building. “Ownership of the necessary infrastructure and other assets are soon to be transferred from the ministry of works to the NCAA. These assets include technical equipment, property, furniture, vehicles and other equipment,” she said.
2019-02-22 09:08:49 3 months ago