Africa-Press – Namibia.
The Ohangwena Regional Council has failed to submit required financial statements and sufficient supporting documentation to account for funds allocated to the region for the financial years ended 31 March 2020, 2021 and 2022.
This is contained in a report by the Office of the Auditor General, recently tabled in the National Assembly.
In the report, the auditor general stated that the audit evidence obtained was “insufficient and inappropriate” to provide a basis for an opinion on the council’s financial statements.
“I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, I do not express an opinion on the financial statements,” the report reads.
A disclaimer of opinion is issued when auditors are unable to obtain adequate and credible information to form an opinion on an institution’s financial position.
According to the report, the disclaimer was expressed due to several shortcomings, including the absence of Environmental Clearance Certificates for sewer ponds and dumpsites. The council is operating oxidation ponds and dumpsites without the required environmental authorisation.
“Furthermore, the Ongha oxidation pond is in a dilapidated state because its fence is severely damaged, and it is located close to residents. All three settlement area dumpsites are not fenced, and community members are dumping garbage everywhere,” the report states.
The audit also highlighted the non-submission of supporting documents relating to work in progress and property, plant and equipment.
“The supporting documents for work in progress amounting to N$11 271 296, and for property, plant and equipment additions and journals amounting to N$5 799 554 and N$5 199 889 for the 2020 financial year, respectively, were not provided for audit purposes,” the report reads.
Regarding rates and taxes, auditors noted that no adequate assessment rate reports were provided by the Eenhana Town Council to substantiate the 5% rates and taxes contribution payable to the regional council. As a result, auditors could not ascertain the completeness and accuracy of these contributions.
The issue was observed for all five financial years under review, involving amounts of N$638 979 (2021: N$502 760) and N$492 670 (2020).
Auditors also identified a discrepancy of N$1 110 745 in the 2020 financial year between the value-added tax (VAT) receivable disclosed in the annual financial statements and the VAT recalculated by the auditors.
The report further revealed that most of the objectives set out in the regional council’s 2020–2024 Strategic Plan were not achieved.
For instance, under the objective to enhance reliable physical and ICT infrastructure development and maintenance, planned activities were not included in the annual plan, making it impossible for auditors to assess how targets and outputs were measured.
Similarly, under the objective to strengthen disaster risk management and emergency response, auditors could not determine how targets relating to the reduction of disaster impact were measured.
In addition, planned activities aimed at promoting stakeholder engagement, including facilitating the enforcement of public-private partnership agreements, were not achieved.
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