Oshana Regional Council fails to explain millions

The Oshana Regional Council has failed to account for close to N$28 million recorded in its cash flow statements for property, plants and equipment.

The council received a qualified audit opinion from Auditor-General (AG) Junias Kandjeke for the financial year ended 31 March 2016.

A qualified opinion is a statement issued after an audit has been done and suggests that information provided was limited or the institution being audited did not maintain the appropriate accounting principles.

The audit report was tabled in the National Assembly by deputy finance minister Natangwe Ithete last week.

Kandjeke explained in the key audit findings that the council failed to explain an amount of nearly N$ 27.9 million in its cash flow statements for property, plants and equipment.

The AG further indicated that the council’s management acknowledged that the amount was shown as property, plants and equipment, but also included an adjustment for non-cash items.

The AG further observed a difference of about N$32.9 million between the asset register and financial statement, with the council recording around N$67 million in its asset register and nearly N$34.1 million in its financial statements.

Furthermore, a difference of more than N$32.9 million was observed between the asset register of N$18.55 million and the depreciation in the financial statement of N$51.499 million.

The council management explained that the difference came about because it changed the accounting policy in terms of depreciating assets financed by a government grant. - Nampa