WINDHOEK – The Ministry of Poverty Eradication and Social Welfare, has returned N$118.3 million to the treasury as unused capital budget for the financial year ended last year March.
This is despite treasury instructions that state: when drawing up draft estimates accounting officers and financial advisors shall guard against requesting for more than what can be spent.
Auditor-General Junias Kandjeke in his latest report on the ministry tabled in parliament on Wednesday noted the ministry’s five divisions all underspent by over two percent.
He said the ministry could not explain whether all its objectives were met as per the requirement of the auditor general circular.
He recommended the ministry’s accounting officer should take note of the treasury instruction and ensure that it is adhered to.
Also, Kandjeke said although treasury authorisation was obtained to utilise certain expected savings for defrayal of expenditure by way of virements during the year, three operational subdivisions were exceeded by a total amount of N$4.2 million.
He said these excesses are unauthorised in terms of the Act, recommending that the accounting officer should put control measures in place to avoid unauthorised expenditure in the future.
Furthermore, according to him the ministry accounting officers reported nil outstanding commitment at the end of the financial year while the Funds Distribution Certificate indicated an outstanding commitment amounting to N$105.6 million.
This is despite the treasury instruction that states: “Accounting officers shall regularly draw up a report from the commitment register in respect of all orders placed but not yet carried out by suppliers. All these cases shall immediately be taken up with the suppliers in writing in order to be able to effect payment before the end of March.”
Kandjeke says although the accounting officer provided an explanation for the outstanding commitment reflecting on the Funds Distribution Certificate, the supporting evidence provided was not sufficient to explain the differences.
He therefore recommended that the accounting officer should provide sufficient evidence for the explanation for the outstanding commitments and ensure that treasury instruction is adhered to.