{"id":32638,"date":"2022-10-31T18:21:51","date_gmt":"2022-10-31T18:21:51","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-worried-by-municipalities-poor-financial-records"},"modified":"2022-10-31T18:50:53","modified_gmt":"2022-10-31T18:50:53","slug":"shiimi-worried-by-municipalities-poor-financial-records","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-worried-by-municipalities-poor-financial-records","title":{"rendered":"Shiimi worried by municipalities&#8217; poor financial records"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Namibia. <\/strong><\/span>FINANCE minister Iipumbu Shiimi said there is a need to strengthen capacity in local authorities, warning that it will affect service delivery to the people.<\/p>\n<p>Shiimi recently tabled reports by the auditor general that are all qualified. These are financial statements for Tsumeb municipality 2020, Okahandja municipality 2021, Oshakati municipality 2020\/2021, Usakos municipality 2019 and Okahao municipality 2020 financial year.<\/p>\n<p>\u201cReviewing these audited reports, it flexes a certain concern of the auditor general and also myself. All these accounts are qualified. These financial statements are qualified by the auditor general. There is no municipality with an unqualified audit statement \u2013 all five and that points to a chronic problem that we have to debate at one point that there is a capacity problem at local authorities,\u201d Shiimi said.<\/p>\n<p>\u201cMost of them, either transactions cannot be validated because if you look at different sources of documents, this source of document is saying this, the other source of document is saying that. The issue of asset registration, for instance, is something that is coming across for all of them. And this is pointing to a lack of capacity that we have to address going forward.\u201d<\/p>\n<p>Regarding Okahandja municipality, for the period ending 30 June 2020, auditor general Junias Kandjeke noted that the fixed asset register valued at N$77 662 705 does not classify the assets as per class of assets, but as per the type of financing used to purchase those assets.<\/p>\n<p>\u201cIn addition, the assets are not tagged so that they are easily identifiable, thus the auditors could not trace assets physically verified from the floor to the asset register,\u201d he said.<\/p>\n<p>As for the Tsumeb municipality, for the period ending 30 June 2020, Kandjeke noted that auditors were unable to establish accuracy, validity, physical evidence and conditions of the property, plant and equipment, which had a net book value of N$79 379 051.<\/p>\n<p>\u201cThis was due to the Municipality of Tsumeb&#8217;s failure to provide the auditors with a fixed asset register. The municipality did not disclose its open lands in the fixed asset register,\u201d said the auditor general.<\/p>\n<p>For Usakos, Kandjeke stressed that \u201cno valuation and inventory count were performed at year end and as a result, there was no inventory recorded in the financial statements\u201d.<\/p>\n<p>With all the anomalies in the audited reports, Shiimi said \u201cthere is a need to zoom into the affairs of local authorities and strengthen their capacity\u201d.<\/p>\n<p>The minister warned that lack of capacity at municipality level will negatively affect service delivery.<\/p>\n<p>\u201cThe delivery of services to our people will be hamstrung because they are closer to the people than the central government,\u201d Shiimi said.<\/p>\n<p>Shiimi recently tabled reports by the auditor general that are all qualified. These are financial statements for Tsumeb municipality 2020, Okahandja municipality 2021, Oshakati municipality 2020\/2021, Usakos municipality 2019 and Okahao municipality 2020 financial year.<\/p>\n<p>\u201cReviewing these audited reports, it flexes a certain concern of the auditor general and also myself. All these accounts are qualified. These financial statements are qualified by the auditor general. There is no municipality with an unqualified audit statement \u2013 all five and that points to a chronic problem that we have to debate at one point that there is a capacity problem at local authorities,\u201d Shiimi said.<\/p>\n<p>\u201cMost of them, either transactions cannot be validated because if you look at different sources of documents, this source of document is saying this, the other source of document is saying that. The issue of asset registration, for instance, is something that is coming across for all of them. And this is pointing to a lack of capacity that we have to address going forward.\u201d<\/p>\n<p>Regarding Okahandja municipality, for the period ending 30 June 2020, auditor general Junias Kandjeke noted that the fixed asset register valued at N$77 662 705 does not classify the assets as per class of assets, but as per the type of financing used to purchase those assets.<\/p>\n<p>\u201cIn addition, the assets are not tagged so that they are easily identifiable, thus the auditors could not trace assets physically verified from the floor to the asset register,\u201d he said.<\/p>\n<p>As for the Tsumeb municipality, for the period ending 30 June 2020, Kandjeke noted that auditors were unable to establish accuracy, validity, physical evidence and conditions of the property, plant and equipment, which had a net book value of N$79 379 051.<\/p>\n<p>\u201cThis was due to the Municipality of Tsumeb&#8217;s failure to provide the auditors with a fixed asset register. The municipality did not disclose its open lands in the fixed asset register,\u201d said the auditor general.<\/p>\n<p>For Usakos, Kandjeke stressed that \u201cno valuation and inventory count were performed at year end and as a result, there was no inventory recorded in the financial statements\u201d.<\/p>\n<p>With all the anomalies in the audited reports, Shiimi said \u201cthere is a need to zoom into the affairs of local authorities and strengthen their capacity\u201d.<\/p>\n<p>The minister warned that lack of capacity at municipality level will negatively affect service delivery.<\/p>\n<p>\u201cThe delivery of services to our people will be hamstrung because they are closer to the people than the central government,\u201d Shiimi said.<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/namibia\">Namibia<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Namibia. FINANCE minister Iipumbu Shiimi said there is a need to strengthen capacity in local authorities, warning that it will affect service delivery to the people. Shiimi recently tabled reports by the auditor general that are all qualified. These are financial statements for Tsumeb municipality 2020, Okahandja municipality 2021, Oshakati municipality 2020\/2021, Usakos [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":32637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,12],"tags":[234,236,233],"class_list":["post-32638","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Shiimi worried by municipalities&#039; poor financial records - Namibia<\/title>\n<meta name=\"description\" content=\"FINANCE minister Iipumbu Shiimi said there is a need to strengthen capacity in local authorities, warning that it will a ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/shiimi-worried-by-municipalities-poor-financial-records\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shiimi worried by municipalities&#039; 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