Marine fund gets disclaimer audit opinion

The Marine Resources Fund (MRF) has received a disclaimer audit opinion for the 2022/23 financial year after failing to submit critical supporting documents of the Marine Resources Advisory Council.

A disclaimer audit indicates that the auditor cannot say whether the financial statements are accurate or not, because the information provided is insufficient or unreliable.

The documents include approved journal entries, landing reports, supplier invoices, expenditure records and minutes.

According to a report issued by auditor general Junias Kandjeke, the missing documentation prevented auditors from verifying major balances and transactions, such as approved journal entries worth N$39.9 million and N$99.3 million for trade debtors in 2022, and N$35.3 million in current liabilities for the same year.

Landing reports covering N$115.5 million (2022) and N$112.3 million (2023) were also not provided, while supporting expenditure records amounting to N$3.07 million (2022) and N$4.5 million (2023) could not be verified.

Additional unsupported items included supplier invoices of N$6.5 million (2022) and N$3.6 million (2023).

The auditor general further found that the fund did not present a basis summary of accounting policies in its notes to the financial statements, contrary to international accounting standards.

Inconsistencies were also identified in property, plant and equipment, where assets valued at N$1.8 million (2023) and N$7.5 million (2022) could not be confirmed as belonging to the fund, since invoices were issued to the then Ministry of Fisheries and Marine Resources instead.

The audit also notes that suppliers’ invoices amounting to N$55.7 million (2022) and N$68.2 million (2023) were issued to the Ministry of Fisheries and Marine Resources, even though the fund processed the payments.

This, Kandjeke warns, created confusion in distinguishing transactions between the ministry and the fund.

The MRF, established under the Marine Resources Act, 2000, is mandated to support research, development, training and education in Namibia’s marine resources sector. It is financed through levies on marine resource harvesting, parliamentary appropriations, investment income and other approved sources.

Despite the financial statements being submitted in line with the Marine Resources Act of 2007 and the State Finance Act of 1991, the auditor general has concluded that insufficient evidence was available to express an audit opinion.

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