Africa-Press – Namibia. Auditor general Junias Kandjeke has found that the Rundu Town Council failed to provide expenditure invoices amounting to N$27.7 million in 2020, N$14.1 million in 2019 and N$16.7 million in 2018.
The audit report for the years ended 30 June 2018, 2019 and 2020 reveals that the town council did not provide supporting documents for journals amounting to N$44 million in 2019 and N$14.4 million in 2018.
The funds are credited to the general reserve account.
“Inadequate control was exercised over journals processed during the review years and while preparing the financial statements.
This is evidenced by the absence of a record of all the journals processed, along with relevant supporting documents and documentation of motivation, review and approval,” states the audit report.
Additionally, the report indicates that the council failed to provide a land reconciliation detailing the total land size under its jurisdiction and allocated to relevant categories by land use.
Therefore, the auditors could not confirm the accuracy and completeness of the land recognised under property, plant and equipment, investment property and inventory.
“The council holds 990 shares of the total issued share capital of the local authority electricity company (LAEC), whose main asset is the investment in the Northern Regional Electricity Distributor. No additional information could be obtained from LAEC to enable auditors to determine the classification of the investment and the related accounting treatment,” notes Kandjeke’s report.
The report further highlights the credit notes of the council, which failed to provide supporting documents for the listing of credit notes issued during the years under review, thereby making it difficult for auditors to confirm the reported revenue and related debtors in the years under review.
Other notable unexplained differences contained in the audit report were on rates and taxes, royalties, build-together loans and value-added taxes.
In the past years, auditors have consistently been unable to provide a reliable opinion on the council’s financials due to what is referred to as “systemic problems” coupled with financial mismanagement, poor record-keeping and general administrative problems at the council.
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