Rundu: Auditor-General Junias Kandjeke has revealed that the Rundu Town Council failed to provide expenditure invoices amounting to N.dollars 27 664 059 in 2020, N.dollars 14 145 359 in 2019, and N.dollars 16 738 279 in 2018.
According to Namibia Press Agency, the audit report for the years ending 30 June 2018, 2019, and 2020 also highlighted the council’s failure to provide supporting documents for journals amounting to N.dollars 60 271 123 in 2020, N.dollars 43 955 115 in 2019, and N.dollars 14 359 579 in 2018. These funds have been credited to the general reserve account. The report states that inadequate control was exercised over journals processed during these years, evidenced by the lack of a record of all journals along with necessary supporting documents.
Furthermore, the audit report pointed out the council’s failure to provide a land reconciliation detailing the total land size under its jurisdiction. This omission made it impossible for auditors to confirm the accuracy and completeness of land recognized under property, plant and equipment, investment property, and inventory.
Additionally, the council holds 990 shares of the total issued share capital of the local authority electricity company (Pty) Ltd (LAEC), whose main asset is the investment in NORED Electricity. However, no further information was available from LAEC to assist auditors in determining the classification of the investment and the related accounting treatment.
The report also flagged the lack of supporting documents for the listing of credit notes, complicating the task for auditors to verify reported revenue and related debtors for the years under review. Other unexplained differences in the audit report included issues related to rates and taxes, royalties, build-together loans, and value-added taxes.
In previous years, auditors have consistently struggled to provide a reliable opinion on the council’s financials due to “systemic problems,” financial mismanagement, poor record-keeping, and general administrative issues at the council.