Auditor General unhappy with bookkeeping in GRN

WEAK financial controls and wrong ledger entries continue to haunt Government ministries and State institutions, says Auditor General Junias Kandjeke.

Audit reports of his office, which are being tabled in the National Assembly virtually on a daily basis at present, reveal blatant disregard of the State Finance Act, which prohibits overspending and stipulates that subsistence and travel advances must be repaid. The Electoral Commission of Namibia (ECN) overspent by N$31,7 million in the financial year ending March 31 2005, the Auditor General disclosed.The regional, national and presidential elections took place during that financial year.Subsistence and travel claim forms in the ECN for trips were approved by the applicants themselves.An internal audit office within the ECN was only created in March 2006, according to the audit report, which was tabled in Parliament last week.No stocktaking has taken place since stock control points were established in April 2003.The National Council overspent by N$573 135,30 during the financial year which ended in March 2005.There was an uncleared balance recorded of N$1,23 million for transactions, which carried unknown account codes.”It was further noticed that some travel and subsistence advances have remained outstanding since March 2004,” Kandjeke pointed out.Ironically, Kandjeke’s office also overspent, but by only N$503,42 and N$1 186,91, the audit, which was done by a private firm, revealed.UNPAID FEES On the other hand, outstanding audit fees from municipalities and State agencies amounted to N$424 067,51 during the period under review.The Otavi village council had not paid for auditing fees of approximately N$80 000 since 1998, Usakos is in arrears for 1999 and 2000, while Bethanie failed to pay N$25 000 for the audit done for the financial year 1999-2000.The Ondangwa municipality still owes approximately N$39 575 for the 2000-2001 audit, Ongwediva N$34 623 for the 2002-2003 audit and Oshakati did not pay the N$41 818 for the 2003-2004 audit.The Diamond Board of Namibia, which receives high levies from the diamond companies in order to perform its functions, is in arrears by N$11 896.The Government news agency Nampa still owes N$29 617 to the office of the Auditor General for the 2002-2003 audit.The Sports Development Fund must still pay N$5 301,45 for the 1998-1999 audit.The Ministry of Agriculture, Water and Rural Development had a balance of N$8,1 million on one of its accounts for the financial year ending March 31 2005, but its permanent secretary did not explain how the money was accrued.NO RECEIPTS The Ministry overspent by N$247 986,72 and obtained treasury approval for the amount.”Despite this, the over-expenditure is contravening the State Finance Act,” the Auditor General pointed out.The head office of the Ministry did not have direct or full control over receipt books.No receipts were issued for money received at the Divundu breeding station and Mile 46 at the coast, the audit revealed.”If money is collected without issuing an official receipt, there is a high possibility of theft, which may lead to losses of State money,” the Office of the AG pointed out.Another criticism contained in the audit report was that subsistence allowances advanced to officials were still outstanding.”The accounting officer (who is the permanent secretary) could not furnish the precise amount owed by several staff.It was also discovered that advances were paid to staff while they had not submitted claims for more than 30 days, which is contrary to treasury Instructions,” the report pointed out.The Ministry attributed this to the so-called Y2K computer bug at the turn of the millennium.The Office of the AG was also surprised to find one bank account with a balance of N$8,1 million in the name of the Ministry.The Electoral Commission of Namibia (ECN) overspent by N$31,7 million in the financial year ending March 31 2005, the Auditor General disclosed.The regional, national and presidential elections took place during that financial year.Subsistence and travel claim forms in the ECN for trips were approved by the applicants themselves.An internal audit office within the ECN was only created in March 2006, according to the audit report, which was tabled in Parliament last week.No stocktaking has taken place since stock control points were established in April 2003.The National Council overspent by N$573 135,30 during the financial year which ended in March 2005.There was an uncleared balance recorded of N$1,23 million for transactions, which carried unknown account codes.”It was further noticed that some travel and subsistence advances have remained outstanding since March 2004,” Kandjeke pointed out.Ironically, Kandjeke’s office also overspent, but by only N$503,42 and N$1 186,91, the audit, which was done by a private firm, revealed. UNPAID FEES On the other hand, outstanding audit fees from municipalities and State agencies amounted to N$424 067,51 during the period under review.The Otavi village council had not paid for auditing fees of approximately N$80 000 since 1998, Usakos is in arrears for 1999 and 2000, while Bethanie failed to pay N$25 000 for the audit done for the financial year 1999-2000.The Ondangwa municipality still owes approximately N$39 575 for the 2000-2001 audit, Ongwediva N$34 623 for the 2002-2003 audit and Oshakati did not pay the N$41 818 for the 2003-2004 audit.The Diamond Board of Namibia, which receives high levies from the diamond companies in order to perform its functions, is in arrears by N$11 896.The Government news agency Nampa still owes N$29 617 to the office of the Auditor General for the 2002-2003 audit.The Sports Development Fund must still pay N$5 301,45 for the 1998-1999 audit.The Ministry of Agriculture, Water and Rural Development had a balance of N$8,1 million on one of its accounts for the financial year ending March 31 2005, but its permanent secretary did not explain how the money was accrued. NO RECEIPTS The Ministry overspent by N$247 986,72 and obtained treasury approval for the amount.”Despite this, the over-expenditure is contravening the State Finance Act,” the Auditor General pointed out.The head office of the Ministry did not have direct or full control over receipt books.No receipts were issued for money received at the Divundu breeding station and Mile 46 at the coast, the audit revealed.”If money is collected without issuing an official receipt, there is a high possibility of theft, which may lead to losses of State money,” the Office of the AG pointed out.Another criticism contained in the audit report was that subsistence allowances advanced to officials were still outstanding.”The accounting officer (who is the permanent secretary) could not furnish the precise amount owed by several staff.It was also discovered that advances were paid to staff while they had not submitted claims for more than 30 days, which is contrary to treasury Instructions,” the report pointed out.The Ministry attributed this to the so-called Y2K computer bug at the turn of the millennium.The Office of the AG was also surprised to find one bank account with a balance of N$8,1 million in the name of the Ministry.