Audit reveals financial discrepancies in Film Video Fund

The auditor general’s report into the Film and Video Development Fund has raised financial concerns over issues such lack of documentation and traceability regarding the sales of permits and certificates, among others.

A recent report revealed that receipts from the sale of permits and certificates, amounting to N$157 703 for the 2020 and 2019 financial years, could not be traced to the general ledger and the completeness of the documents’ sale could not be verified.

The audit, conducted by auditor general Junias Kandjeke, indicated that supporting documentation for Property Plant and Equipment (PPE), valued at N$50 733, was unavailable during the audit.

Kandjeke flagged a significant misstatement of expenditure and revenue caused by erroneous interbank transfers.

A transfer of N$260 000 was incorrectly debited to general expenses and credited to grant income, leading to a significant misrepresentation of financial figures.

In addition to these, the audit highlighted fruitless expenditure involving external consultants that were hired.

“The auditors found that external consultants were appointed to prepare the fund’s financial statements for the years ended 2017, 2018, 2019, 2020, 2021 and 2022 at an amount of N$172 500, however, the cost benefit of this expenditure did not meet the desired quality output,” Kandjeke said

He said, however, without appropriate evidence, he cannot provide an opinion.

“I believe that the audit evidence I have obtained is not sufficient and appropriate to provide a basis for the audit opinion,” Kandjeke said.

Namibia Film Commission (NFC) executive secretary Florence Haifene says the commission has taken note of the audit report and recommendations.

“The commission wishes to clarify that there has been no mismanagement of funds, but rather unfitting documentation of financial transactions attributed to the staff complement,” she says.

Haifene says the reason for the apparent mismatch in the sales of permits, is because payments were made in bulk, making it difficult to to trace which production these payments were applied to.

“The commission has . . . henceforth corrected the practice by reconciling every payment made against their invoices,” she says, adding that the situation reagrding the PPE documentation has been rectified since December 2021.

Haifene says the commission has previously raised concerns regarding its lean structure, especially the finance unit, where only one accountant is responsible for all financial transactions.

“The Ministry of Information, Communication and Technology took note of the concerns and agreed to reform the structure, including that of the ministry, but this process was put on hold pending economic recovery,” she says.

Haifene says over the years under review, the commission employed three accountants, including seconded personnel from the ministry.

“This led to delays in the execution of duties at the finance section. However, all audit recommendations are noted and will be implemented going forward,” she says. – unWrap.online