Kandjeke gives Aranos Town Council an adverse opinion

Auditor General Junias Kandjeke has given the Aranos Town Council an adverse audit opinion as its financial statements do not reflect the true and fair financial position of the institution.

The information is contained in the town council's auditor general report for the financial years ended 30 June 2017 and 2018 which was recently submitted to the National Assembly (NA) by Deputy Finance Minister, Natangwe Ithete.

Kandjeke based his adverse opinion on 17 discrepancies that his team uncovered when they visited the town council.

Chiefly, Kandjeke's men found that the town council had unexplained opening balances in its income statement while it does also not have a financial reporting framework in place.

Another issue found is differences amounting to N.dollars 520 490 (in 2017) and N.dollars 1.8 million (in 2018) for value-added tax (VAT) receivable between the financial statements and the auditors' calculated balance.

Further, the auditors found that the local authority had unexplained credit balances amounting to N.dollars 604 618 (2017) and N.dollars 851 397 (2018) reflecting on the debtors' age analysis.

It was established that the town council failed to submit its Build Together debtors ledger.

The town council also failed to disclose NATIS debtors amounting to N.dollars 71 351 in 2017 while an amount of N.dollars 126 612 for the same was not disclosed in 2018.

Additionally, the town council understated the income it received from NATIS by N.dollars 290 808.

More so, the town council did not disclose SELCO royalties amounting to N.dollars 171 300 in 2017.

Unexplained adjustments on bank reconciliations amounting to N.dollars 467 076 (2017) and N.dollars 155 126 (2018), Kandjeke said.

Oddly, the auditor also found obsolete and sold assets appearing on the fixed asset register.

Fixed assets could not be verified due to different coding between fixed assets register and the physical assetsassets amounting to N.dollars 51 817 (2017) and N.dollars 1 734 497 (2018) were expensed rather then capitalised, Kandjeke further noted.

The council did also not submit minutes for meetings for the 2016/2017 financial year.

A decrease in loans amounting to N.dollars 71 767 (2017) and N.dollars 56 190 (2018) without repayment was further observed during the period under review.

No submission of subsistence and travel claims amounting (to) N.dollars 39 483 (2017) and N.dollars 50 127 (2018), he said.

The entity did also not disclose an account payable to Nampower amounting to N.dollars 3.5 million and N.dollars 1.2 million payable to NamWater in 2017.

The accompanying financial statements do not give a true and fair view of the financial position of the Aranos Town Council as at 30 June 2017 and 2018 and the financial performance and cash flows for the years ended then, Kandjeke summed up.

Source: Namibia Press Agency