OFFICE OF THE
AUDITOR-GENERAL
WORKING TOGETHER
TOWARDS CLEAN AUDIT
Goms Menette`
Deputy Auditor-General
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CONTENT
Vision
Mission
Strategic Plan
Local Authorities Act
Expectations
Most common audit findings
Other audit findings
Audit opinion
Conclusion
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VISION
The vision of the Office of the AuditorGeneral is to be an independent,
professional supreme audit institution that
produces quality and timely reports
resulting in the best use of public
resources.
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MISSION
The SAI of Namibia is committed to
provide independent and credible audit
services for legally assigned public and
other institutions based on international
standards of auditing through quality
reporting to the National Assembly and
general public resulting in increased
accountability and transparency.
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STRATEGIC PLAN
The Office of the Auditor-General performs
important constitutional functions as per article
127 (2) of the Namibian Constitution.
During the 2011 to 2012 financial year, the
Office of the Auditor General intend to carry out
one hundred and twenty (120) asset inspections
through out the country per annum, to ensure
that states assets are properly accounted for.
The office intends to finalize one hundred and
forty seven (147) financial audits of which 125 is
current and 22 on an anticipated backlog during
2011/12.
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Local Authorities act 23 of 1992
The Accounting Officer of the local council shall within
three months or such longer period as the AuditorGeneral may approve, after the end of a financial year of
the local authority council make out financial statements
in respect of that financial year and submit such financial
statements to the Auditor General. The financial
statement referred are:
Balance sheet showing the assets and liabilities of the
local authority
A statement of income and expenditure of the local
authority
And such other statement as may from time to time be
required by the Auditor-General. (Cash Flow statement)
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Local Authorities act 23 of 1992
(cont)
Shall keep accounting records as are
necessary to reflect the transactions and
financial state of affairs of the local
authority
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EXPECTATIONS
The Auditor General requested Ministry of Finance in
terms of section 16 (1) (c) (v) of the state finance Act,
1991 (Act 31 of 1991), to write-off the amount of N$ 1
034 500.11 and 16% interest thereon owed by various
local authorities. The reason for such a move was as
follows:
To give institutions an opportunities to use the saving for
the purpose of training of staff to enable them to compile
relevant financial statements themselves.
To allow clean start for many institutions that were
struggling to settle the outstanding debts as was
indicated by the Government Attorneys.
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MOST COMMON AUDIT
FINDINGS
MUNICIPALITIES, TOWN COUNCILS,
VILLAGE COUNCILS and REGIONAL
COUNCILS
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MOST COMMON FINDINGS
Client availability
Fixed asset register
– Not properly maintained
– Not updated
– Depreciation not calculated
Provisions (bad debts, leave, etc)
– Not sufficient
– Over-/under stated
PAYE/VAT returns
– Not submitted;
– Interest not charged
– Penalties not implemented
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MOST COMMON FINDINGS
Investments
–
–
–
–
Investment listings not maintained
Bank statements not available
Bank accounts not reflected on records
Approval from Minister not available (The Regional
Councils Act, 1992 (section 33 (1) (d) and (3)
– Not in minutes of meetings
Loans (for Build Together Fund)
– Listings not maintained
– Contracts not signed
– No contracts
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MOST COMMON FINDINGS
Debtors
– Debtors listing not maintained
– Outstanding debts are not recovered
– Liabilities not reconciled
Cash & Bank
– Bank reconciliations not performed
Inventory
– Not disclosed in the financial statements
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MOST COMMON FINDINGS
Consumer deposits
– Consumers are in arrears
– No consumer listing
– No supporting documents
External loans
– Loans are not paid back/in arrears;
– No interest are charged;
– Loans lists are not kept
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MOST COMMON FINDINGS
Outstanding financial statements
Analysis of financial statements
– Differences between trial balance and income
statement
– Differences between trial balance and balance sheet
– Opening balances not carried forward correctly
– Unexplained adjustments
5 % Assessments rates
– Not received by the Regional Council
– Municipalities not sending confirmation letters
(indicating the period paid)
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OTHER AUDIT FINDINGS
Information Technology continues to be a challenge ;
Local Authorities use different computer application
system for financial accounting purposes ;
Personnel at most Local Authority are not adequately
trained to use this systems;
Make use of consultants to overcome a lack of technical
expertise
Internal controls – poor/non existing
Lack of proper record keeping
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AUDIT OPINION
QUALIFIED AUDIT OPINION – Indicates
concerns where the accounts, though fairly
presented, do not comply with generally
accepted principles.
UNQUALIFIEED AUDIT OPINION – Indicates a
clean set of account.
DISCLAIMER AUDIT OPINION - Which is worst
of all, means the auditor has been unable to
express an opinion
ADVERSE AUDIT OPINION – Means the
accounts have been materially misstated.
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AUDIT OPINION
(CONCLUSION ON THE SELECTED CLIENTS)
MUNICIPALITIES
– 4/16 received - Disclaimed opinion
– 10/16 received - Qualified audit opinion
– 2/16 received - Unqualified audit opinion
(clean reports)
TOWN COUNCILS
– 7/17 received - Qualified audit opinion
– 7/17 received - Disclaimed audit opinion
– 3/17 Backlog
– No Clean report
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AUDIT OPINION
(CONCLUSION ON THE SELECTED CLIENTS)
(Cont)
VILLAGE COUNCILS
–
–
–
–
5/18 received - Disclaimed audit opinion
3/18 received - Qualified audit opinion
10/18 Backlog
No clean report
REGIONAL COUNCILS
–
–
–
–
4/13 received – Qualified audit opinion
2/13 received - Disclaimed audit opinion
7/13 Backlog
No clean report
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In Conclusion
We have the responsibility to manage the
public purse with caution, respect and use
it effectively to ensure accountability.
Each Local Authority should develop its
own audit turn around plan.
CLEAN AUDIT REPORT
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The end
THANK YOU!
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