Ministry of Works books in shambles

THE Ministry of Works’ control of its finances continues to deteriorate. Its revenue collection is in a shambles and staff take advances on subsistence and travel allowances that remain outstanding for years.

Auditor General Junias Etuna Kandjeke states in his latest two reports on the Ministry that the Central Government Stores failed to submit their financial statements, “as reported in numerous previous reports”, and that “problems mentioned in previous reports still exist”. “The same reason was given, namely that the Central Government Stores are currently installing a new integrated system which should be able to produce the necessary financial statements,” he said in the report for the financial year that ended on March 31 2004.Kandjeke said the Ministry overspent by over N$348 260, while an amount of N$252 594 given to 117 employees as an S&T advance was outstanding at the time the Auditor General’s report was finalised.”Sufficient, relevant and reliable information was not provided to prove that such advances were actually recovered,” the AG said in the reports submitted to Parliament last week.He said the Ministry’s Accounting Officer did not submit a departmental revenue statement for the financial year ending March 2004, nor any explanation of revenue deviations of more than N$100 000 from the approved budget.Twelve months earlier, in the report for the year ending March 31 2003, the AG said the “weaknesses in money-handling procedures at the revenue section give rise to concern”.”The Accounting Officer (Permanent Secretary) was unable to collect information on outstanding revenue from regions in the financial years 2000-2001, 2001-2002 and 2002-2003 respectively, therefore no financial statements were submitted for these financial years,” he said.In the 2003 report, which was also tabled in the National Assembly last week, the AG said the Ministry of Works had three different types of bank accounts but the Permanent Secretary had failed to submit monthly reconciliation statements to enable verification on a monthly basis.”Inconsistent information was submitted,” he said.He recommended that the Permanent Secretary carry out monthly reconciliations, draw up annual income and expenditure statements and that reconciliation working papers be made available to him during auditing.During 2001-2002, outstanding S&T advances to 22 staff members totalled N$42 455 and the amount increased to N$58 464 in the 2002-2003 financial year, with 25 employees owing the Ministry of Works money.”The same reason was given, namely that the Central Government Stores are currently installing a new integrated system which should be able to produce the necessary financial statements,” he said in the report for the financial year that ended on March 31 2004.Kandjeke said the Ministry overspent by over N$348 260, while an amount of N$252 594 given to 117 employees as an S&T advance was outstanding at the time the Auditor General’s report was finalised.”Sufficient, relevant and reliable information was not provided to prove that such advances were actually recovered,” the AG said in the reports submitted to Parliament last week.He said the Ministry’s Accounting Officer did not submit a departmental revenue statement for the financial year ending March 2004, nor any explanation of revenue deviations of more than N$100 000 from the approved budget.Twelve months earlier, in the report for the year ending March 31 2003, the AG said the “weaknesses in money-handling procedures at the revenue section give rise to concern”.”The Accounting Officer (Permanent Secretary) was unable to collect information on outstanding revenue from regions in the financial years 2000-2001, 2001-2002 and 2002-2003 respectively, therefore no financial statements were submitted for these financial years,” he said.In the 2003 report, which was also tabled in the National Assembly last week, the AG said the Ministry of Works had three different types of bank accounts but the Permanent Secretary had failed to submit monthly reconciliation statements to enable verification on a monthly basis.”Inconsistent information was submitted,” he said.He recommended that the Permanent Secretary carry out monthly reconciliations, draw up annual income and expenditure statements and that reconciliation working papers be made available to him during auditing.During 2001-2002, outstanding S&T advances to 22 staff members totalled N$42 455 and the amount increased to N$58 464 in the 2002-2003 financial year, with 25 employees owing the Ministry of Works money.