Kavango east: An audit report by the Auditor-General for the Kavango East Regional Council has revealed significant financial discrepancies for the years 2020 and 2021. The report, produced in May and recently made public, highlights multiple issues with the council’s financial records and reporting.

According to Namibia Press Agency, the audit found a difference of N.dollars 26 265 272 in 2020 and N.dollars 29 647 328 in 2021 between the net book value of fixed assets listed on the council’s register and the amounts disclosed in its financial statements. The register showed asset values of N.dollars 70 305 059 and N.dollars 66 740 140, while the financial statements reported N.dollars 96 570 331 and N.dollars 96 387 468 respectively.

The report also pointed out that the council’s financial statements for 2021 had unfavourable balances for cash control and interbank transfers, amounting to N.dollars 549 051. ‘This is not in line with the nature of these types of accounts. There cannot be negative cash in hand and the interbank transfer account should have no closing balance at the end of the period, as this is a suspense account. Additionally, the balance disclosed in the financial statements does not agree to the balance in the general ledger accounts,’ the audit report said.

Furthermore, the council’s fleet management account was overstated by N.dollars 1 009 000. The financial statements incorrectly listed the balance as N.dollars 1 598 609, while the correct amount, based on the general ledger and bank statements, was N.dollars 589 609. The audit also found discrepancies in payroll, employee costs, sundry income, and taxes.

The council further incurred penalties from the Namibia Revenue Agency for late submissions and faced adjustments after VAT refund audits. Beyond the financial issues, the report noted a severe lack of documentation, with the council unable to explain 27 of its 28 key performance indicators (KPIs). This lack of detail raises concerns about the council’s ability to track and report on its performance.

Despite these significant findings, the audit report concluded that the council remains committed to ‘business integrity, transparency, and professionalism.’