Rundu’s finances in a mess, again
Featured

28 April 2017 Author   Chamwe Kaira

The Rundu Town Council has once again failed to produce financial statements that reflect the town’s true fiscal position, as the accounting books remain in a shambolic state. 

In the financial year ended 30 June 2015, the town underestimated its bad debts by over N$24 million (compared to an overstatement of N$2,235,183 in 2014 and an understatement of N$11,754,176 in 2013), Auditor General Junias Kandjeke said in a report tabled in Parliament this week.

“It is recommended that the council should adjust the provision for bad debts to avoid possible misstatements,” he said.

Another issue raised by the Auditor General was that auditors were unable to confirm the accuracy and completeness of the Build Together loans of just over N$1,6 million due to non-submission of supporting documents.

He recommended that the council properly file and safeguard all supporting documents and submit them for auditing purposes.

Kandjeke took issue with the fact that no adjustments had been made to the NATIS debtors balance of N$1,72 million, which reflects the same amount as that of 2014.

“It is recommended that the council should perform regular reconciliations to avoid possible misstatements,” he said.

The auditors also observed a variance amounting to N$10,5 million between the bank reconciliation and financial statements, and were unable to confirm sundry creditors amounting to N$585,900 due to the non-submission of supporting documents.

In terms of inventory, the auditors observed a difference of N$771,875 between the inventory sheet provided by the council and the financial statements.

Kandjeke also took issue with the valuation roll, which was last approved in 2007, saying it was outdated because such a roll was only valid for five years. He said the roll was supposed to be replaced in 2012.

The report also observed that no physical inspection could be done as there was insufficient detail of assets in the fixed assets register.

The auditors could also not verify depreciation as the method of depreciation is not specified on the fixed asset register. The auditor general recommended that the council update its fixed asset register.

“In my opinion, the financial statements do not present fairly the financial position of the Rundu Town Council as at 30 June 2015 and cash flows, receipts and payments for the year then ended in accordance with relevant accounting framework or legislation,” he said.

WINDHOEK OBSERVER

The Windhoek Observer is an English-language weekly newspaper, published in Namibia by Paragon Investment Holding. It is the country's oldest and largest circulating weekly.

Contact Us

Windhoek Observer House
c/o John Meinert & Rossini Street
Windhoek West
Namibia
Tel: +264 61 411 800
Fax: +264 61 226 098
www.observer.com.na