Aranos Town Council gets adverse AG 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 were recently submitted to the National Assembly 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 officers found that the town council had unexplained opening balances in its income statement while it also does not have a financial reporting framework in place.Another issue found is differences amounting to N$520 490 (in 2017) and N$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$604 618 (2017) and N$851 397 (2018) reflecting on the debtors’ age analysis.It was established that the town council failed to submit its Build Together debtors’ ledger.NaTIS and othersThe council also failed to disclose NaTIS debtors amounting to NS71 351 in 2017 while an amount of N$126 612 for the same institution was not disclosed in 2018.Additionally, it understated the income it received from NaTIS by N$290 808.More so, the town council did not disclose SELCo electricity royalties amounting to NS171 300 in 2017.“There have been unexplained adjustments on bank reconciliations amounting to N$467 076 (2017) and N$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 assets … assets amounting to N$51 817 (2017) and N$1 734 497 (2018) were expensed rather than capitalised,” noted Kandjeke.MinutesThe council also did not submit minutes for meetings for the 2016/17 financial year.A decrease in loans amounting to N$71 767 (2017) and N$56 190 (2018) without repayment was further observed during the period under review.“No submission of subsistence and travel claims amounting [to] N$39 483 (2017) and N$50 127 (2018),” he said.In addition, the entity did also not disclose an account payable to NamPower amounting to N$3.5 million and N$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. - Nampa

Aranos Town Council gets adverse AG opinion

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Aranos Town Council gets adverse AG opinion

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