//Kharas Regional Council receives qualified audit for 2016/17

WINDHOEK, 16 OCT  – The //Kharas Regional Council received a qualified audit for the 2016/17 financial year due to understatement of fixed assets, value added tax (VAT) and debtors and non-disclosure of bank accounts.
This was revealed in the latest audit report of the Auditor-General (AG) tabled in the National Assembly last week by Minister of Finance, Calle Schlettwein.
According to the report’s key audit findings, a difference of N$7.4 million was observed between the financial statements and the fixed assets register, resulting in an understatement of the fixed assets.
The council also understated debtors of N$4.7 million due to credit balances and further failed to disclose bank accounts of N$2.8 million in the annual financial statements.
“It is recommended that the council should ensure that all assets are recorded in the assets register and reconcile the record with the financial statements to avoid misstatements,” the report said.
It further recommended that the council should perform regular reconciliation of debtors and ensure that balances are correctly classified and to disclose all bank balances in the financial statements.
The report further revealed that a difference of N$2.7 million was observed between the returns and the financial statements, resulting in an understatement of the financial reports.
In addition, a difference of N$2.7 million was noted between the financial statements and the supplier age analysis.
The AG recommended that the council ensure management checks and balances are performed on a regular basis to avoid misstatement of the financial statement and should perform reconciliation of its VAT control account.
(NAMPA)