Otavi receives qualified audit report for 2016/17 financial year

WINDHOEK, 07 NOV  – The Otavi Town Council received a qualified audit report from the Auditor-General (AG) for the 2016/17 financial year.
This was revealed in the latest audit report of the AG tabled last week in the National Assembly by Minister of Finance, Calle Schlettwein.
A qualified audit report is a statement issued after an audit is completed, suggesting that the information provided is limited in scope and did not maintain the AG’s accounting principles.
According to the report, the council’s liabilities exceeded its assets by N$12 million, which indicates significant doubt about the ability of the council to continue operating as a going concern.
It also said payment vouchers of over N$1 million were paid while they were not certified correctly by the finance manager and chief executive officer.
It was recommended that the council implement appropriate measures to ensure that it generates enough funds to run its operations. The finance manager and chief executive officer should also certify all payment vouchers before it is paid to reduce the risk of fraud.
The report further revealed a difference of over N$280 000 between the auditor’s reconciliation and financial statements, and the AG also observed that debtors with credit balances of over N$208 000 were not raised as creditors at year-end.
Then there was an unexplained difference of over N$296 000 between the asset register and financial statement.
The AG recommended that council perform reconciliations on a monthly basis, that debtors with credit balances are reconciled and cleared, and that proper reconciliation is performed between the asset register and financial statement.
(NAMPA)