The financial report of the Ruacana Town Council in the Kunene Region significantly improved from an adverse status in 2019 to a qualified audit opinion in 2021.
According to the Auditor-General, Junias Kandjeke in his report on 30 June 2022, the Ruacana Town Council improved in its financial handling in the 2020/2021 financial year.
He said the year ended March 2021, the town council, had few irregularities and to some extent, documentation was presented.
He however said the worrisome concerns were largely discovered in the human resources department of the town council in preparing a salary advice document for the finance department.
“The town council during the same financial year ended 31 March 2021 also showed two salary structures. The first structure was approved by the town council itself, while the other by the line ministry, therefore, staff members holding the same positions there are paid differently based on the structure they are placed on,” stated Kandjeke.
Besides these human resource matters, the town council in 2021 presented a fairly correct financial picture to the auditors, thus grading it with a qualified audit opinion in March 2021, he said.
Kandjeke went on to explain that the town council’s financial accounts for 2018-2019, contained severe irregularities related to mismanagement of council funds, thus forcing him to grant the town council an adverse audit opinion.
The adverse opinion, he noted came about after the town council failed amongst others to bring forward the revenue balance of more than N.dollars 2 million it disclosed to the auditing team in 2017.
The revenue balance was never brought forward to the auditors as an opening balance for 2019, and no clear explanation was given.
Another issue observed in 2018, which also led to the issuance of an adverse audit opinion was the difference amounting to N.dollars 323 595 which was captured on the payroll earnings and general ledger of the town council, and this difference in 2019 increased to N.dollars 388 984, yet there were no clear documents presented to the auditors, said Kandjeke.
Source: The Namibian Press Agency
