{"id":65556,"date":"2024-03-27T16:54:37","date_gmt":"2024-03-27T16:54:37","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials"},"modified":"2024-03-27T17:54:18","modified_gmt":"2024-03-27T17:54:18","slug":"kandjeke-tears-into-kavango-wests-shambolic-financials","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials","title":{"rendered":"Kandjeke tears into Kavango West\u2019s shambolic financials"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>Auditor general Junias Kandjeke has given Kavango West a disclaimer audit opinion for failing to provide auditors with requisite documentation to support its expenditures.<\/p>\n

Compiled in December, the regional council\u2019s latest audit report was tabled in the National Assembly for scrutiny about a fortnight ago. In it, Kandjeke zeroes in on the 2017, 2018 and 2019 financial years.<\/p>\n

\u201cIn my opinion, because of the significance of the matters described in the basis for disclaimer of audit opinion paragraph, I have not been able to obtain sufficient and appropriate audit evidence to provide a basis for an audit opinion. Accordingly, I do not express an opinion on the financial statements… I believe that the audit evidence I have obtained is not sufficient and appropriate to provide a basis for my opinion,\u201d Kandjeke said.<\/p>\n

The council also failed to make reference to the financial reporting framework that was used in the preparation of the financial statements. This, Kandjeke stated, is an indication that the council did not adopt an acceptable financial reporting framework in the preparation of the financial statements under review.<\/p>\n

\u201cThis is in contravention of the circular from the Ministry of Urban and Rural Development (MURD) dated 13 September 2020 that regional councils and local authorities should implement the International Public Sector Accounting Standards as a reporting framework with the compilation of the financial statements from the 2018\/2019 financial year. It was furthermore noted that the financial statements were submitted on 17 December 2022, which gave the council ample time to draft the statements in accordance with the said circular,\u201d he is quoted in the report as saying.<\/p>\n

The AG recommended that the council adopts the financial reporting framework which was recommended by the MURD. For about two weeks now, the council has not responded to questions about its financial performance or health.<\/p>\n

\u201cWe are now concerned about our electricity and water outage. I will provide that [response] at an appropriate time,\u201d was all the regional council\u2019s spokesperson Matheus Singambwe could say upon follow-up on Monday.<\/p>\n

This is despite his commitment to provide New Era with a detailed response. Money woes The auditors also picked up inconsistencies in the council\u2019s financial reporting.<\/p>\n

For instance, in 2017, the financial statement reflects an amount of N$8 million, and the fixed asset register on the closing balance of property, plant and equipment stands at N$17.5 million, resulting in a difference of N$9.48 million.<\/p>\n

\u201cThe financial statement reflects an amount of N$2.69 million, and the fixed asset register N$735 014 on depreciation of property, plant and equipmen, resulting in a difference of N$1 960 429,\u201d Kandjeke noted. The situation did not improve in 2018.<\/p>\n

\u201cThe financial statement reflects an amount of N$14.89 million and the fixed asset register N$41.69 million on the closing balance of property, plant and equipment, resulting in a difference of N$26.8 million. The financial statement reflects an amount of N$1.55 million and the fixed asset register N$960 502 on depreciation of property, plant and equipment, resulting in a difference of N$ 596 847,\u201d he further said.<\/p>\n

Meanwhile, the 2019 financial statement reflected \u201can amount of N$38.54 million and the fixed asset register N$40.5 million on the closing balance of property, plant and equipment; resulting in a difference of N$1.96 million, and the financial statement reflects an amount of N$1.9 million, and the fixed asset register N$1.39 million on depreciation of property, plant and equipment, resulting in a difference of N$596 420.\u201d<\/p>\n

As such, the AG recommended that the council should ensure that its fixed asset registers and financial statements are reconciled on a regular basis, and that any discrepancies are followed up and resolved in time.<\/p>\n

The council did not provide explanations nor journals and source documents for adjustments made to property, plant and equipment to the value of N$1.33 million for 2017, and work in progress of N$6.4 million in 2018.<\/p>\n

\u201cIt is recommended that the council ensures that all supporting documents are provided for audit purposes in terms of the State Finance Act,\u201d he continued. Capital projects<\/p>\n

On capital projects, the council did not recognise government subsidies received for capital projects which were spent during the years under review amounting to N$85.9 million (2017), N$18.63 million (2018) and N$14.12 million in 2019.<\/p>\n

The amounts were transferred from deferred income to the capital projects development fund. This is in contradiction with IPSAS 23, paragraph 44 and 45.<\/p>\n

\u201cThe council is recommended to ensure that it adopts the acceptable reporting framework recommended by the line ministry, and that funds received for capital projects are correctly accounted for,\u201d he stated.<\/p>\n

The auditors also found that provision for doubtful debts to the value of N$982 952 (2017), N$1 million (2018) and N$ 1.1 million in 2019 was incorrectly presented as a current liability, instead of reducing the trade receivables balance.<\/p>\n

\u201cThe council is recommended to ensure that the presentation of provision in the financial statements aligns with IPSAS 1, specifically in accordance with paragraph 49, which stipulates that assets should be valued net of any valuation allowance,\u201d the AG recommended.<\/p>\n

He added: \u201cThe council did not disclose capital development funds under financing activities amounting to N$86 million (2017) in the cash flow statement as per the re-performed cash flow statement. The council is recommended to present financing activities in compliance to IPSAS 2.\u201d<\/p>\n

Non-disclosure The council, Kandjeke said, also failed to provide supporting documents at the time of the audit. It did not furnish the auditors with supporting documents of a donation amounting to N$1.1 million in 2018.<\/p>\n

The council also failed to provide a journal passed for the adjustment made from buildings to land to the value of N$5.7 million in 2018, while documentation for subsistence and travel advances amounting to N$629 975 (2017), N$ 1.1 million (2018) and N$1.21 in 2019 were not provided for audit purposes.<\/p>\n

Moreover, the Namibia Revenue Agency\u2019s value added tax assessment reports to confirm the recoverability of the VAT receivable amounting to N$6.13 million (2017), N$8.26 million (2018) and N$9.28 million in 2019, were not provided.<\/p>\n

The same goes for general expenses amounting to N$147 128 (2017), N$21 376 (2018) and N$ 531 436 for 2019. Evidence to back up fuel expenses amounting to N$334 864 (2017), N$680 545 (2018) and N$1.2 million in 2019 was also not provided for audit purposes.<\/p>\n

\u201cIt is recommended that the council ensures that all supporting documents are provided for audit purposes in terms of the State Finance Act,\u201d Kandjeke stressed.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. Auditor general Junias Kandjeke has given Kavango West a disclaimer audit opinion for failing to provide auditors with requisite documentation to support its expenditures. Compiled in December, the regional council\u2019s latest audit report was tabled in the National Assembly for scrutiny about a fortnight ago. In it, Kandjeke zeroes in on the […]<\/p>\n","protected":false},"author":84,"featured_media":65555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,12],"tags":[234,236,233],"class_list":["post-65556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-policy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nKandjeke tears into Kavango West\u2019s shambolic financials - Namibia<\/title>\n<meta name=\"description\" content=\"Auditor general Junias Kandjeke has given Kavango West a disclaimer audit opinion for failing to provide auditors with r ...\" \/>\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\/kandjeke-tears-into-kavango-wests-shambolic-financials\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kandjeke tears into Kavango West\u2019s shambolic financials\" \/>\n<meta property=\"og:description\" content=\"Auditor general Junias Kandjeke has given Kavango West a disclaimer audit opinion for failing to provide auditors with r ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-27T16:54:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-27T17:54:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2024\/03\/sm_1711549039.097062.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"479\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Kandjeke tears into Kavango West\u2019s shambolic financials\",\"datePublished\":\"2024-03-27T16:54:37+00:00\",\"dateModified\":\"2024-03-27T17:54:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials\"},\"wordCount\":1039,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2024\/03\/sm_1711549039.097062.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"head lines\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/kandjeke-tears-into-kavango-wests-shambolic-financials\",\"name\":\"Kandjeke tears into Kavango West\u2019s shambolic financials - 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