RESIDENTS of Eenhana owed the town council N$1,9 million for municipal services in the financial year that ended in June 2005.
This was N$200 000 more than the previous year, according to the council’s latest audit report, which was tabled in Parliament last week. Eenhana has also failed to pay Value Added Tax (VAT) to the Receiver of Revenue since 2001.The debt age analysis revealed that 59 per cent of all customers took about four months to pay their municipal bills.”This is considerably high and it does not seem that the Eenhana Town Council is improving on the debtors collections,” Auditor General Junias Kandjeke pointed out in his report.”Irrecoverable debts are a matter of great concern as this might threaten the future cash flow for the financing of the Council’s operations.”Plots to the value of N$813 508 were sold in 2005, but only N$498 724 of that sum was registered as income.Some of the new owners still have to pay the remaining N$314 784.”Management of the Council is strongly advised to account for debtors on sales of properties as this would ensure completeness of debtors and income from these,” the audit report states.Despite the large amounts owed by Eenhana residents, the small municipality managed a net surplus of N$3,2 million for the financial year ending June 2005.Eenhana has also failed to pay Value Added Tax (VAT) to the Receiver of Revenue since 2001.The debt age analysis revealed that 59 per cent of all customers took about four months to pay their municipal bills.”This is considerably high and it does not seem that the Eenhana Town Council is improving on the debtors collections,” Auditor General Junias Kandjeke pointed out in his report.”Irrecoverable debts are a matter of great concern as this might threaten the future cash flow for the financing of the Council’s operations.”Plots to the value of N$813 508 were sold in 2005, but only N$498 724 of that sum was registered as income.Some of the new owners still have to pay the remaining N$314 784.”Management of the Council is strongly advised to account for debtors on sales of properties as this would ensure completeness of debtors and income from these,” the audit report states.Despite the large amounts owed by Eenhana residents, the small municipality managed a net surplus of N$3,2 million for the financial year ending June 2005.
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