Tunis:Khomas Regional Council The Khomas Regional Council has reported a net deficit of N$3.5 million for the year ending 31 March 2024, as per the audit conducted by Auditor-General Junias Kandjeke.
According to Namibia Press Agency, Auditor-General Kandjeke highlighted that the deficit consists of a basic operating shortfall of N$2.89 million and N$624,028 in bad debts, which are considered uncollectable. The council's expenditures exceeded its revenues by approximately N$3.5 million, attributed largely to high operational costs and uncollected debts.
Despite the financial shortfall, the council received an unqualified audit opinion, indicating that the financial statements accurately represent its status according to International Public Sector Accounting Standards (IPSAS). Kandjeke stated, "I have audited the financial statements of the Khomas Regional Council for the financial year ended 31 March 2024 provided by the Accounting Officer. In my opinion, the annual financial statements present fairly, in all material respects, and their financial performance and their cash flows for the year then ended in accordance with IPSAS."
During the reviewed period, the council's total revenue amounted to N$88 million, with government grants and subsidies contributing N$46.9 million from the Ministry of Urban and Rural Development, local authority contributions providing N$35.7 million, and additional income from interest and facility rentals totaling N$2.7 million.
Total expenditures reached N$90.9 million, with significant allocations to employee-related expenses of N$37.5 million, grants and subsidies primarily for social responsibility initiatives totaling N$24.6 million, councillor remuneration at N$4.9 million, contracted services at N$4.7 million, and utility service costs amounting to N$4.5 million.
The council ended the financial year with a strong liquidity position, having cash and cash equivalents of N$24.7 million, up from N$14.1 million the previous year, and an accumulated surplus of N$167.3 million as of March 2024.
However, the audit uncovered an administrative issue; the auditors were unable to evaluate the council's key performance information because crucial strategic documents, such as the strategic plan and annual performance reviews, had not been approved at the time of the audit. The audit report was completed and submitted in February 2026, in accordance with Article 127(2) of the Namibian Constitution and the State Finance Act.