By Eliaser Ndeyanale
THE Auditor General has revealed that Office of the President incurred irregular spending of N$1.5 million in the 2014/15 financial year.
This is unauthorised in terms of Section 6 of the State Finance Act.
In his report which was tabled by Deputy Minister of Finance Natangwe Ithete, Auditor- General Junias Kandjeke stated that, although treasury approvals were obtained to utilise certain amounts of excess expenditure through during the financial year, five operational subdivisions exceeded by an amount totalling N$1 557 302.60, which is contrary to State Finance Act.
Auditor-General recommended that the accounting officer should implement budgetary control measure to prevent unauthorised expenditure in future.
The report showed that the accounting officer reported an outstanding balance of N$250 838.36 on daily subsistence allowance whereas the suspense account indicated a balance of N$60 000 resulting in an unexplained difference of N$192 000.
“It is recommended that the difference of N$192 000 be explained by the accounting officer,” AG recommended.
Another institution cited by the Auditor General is Ondangwa town council which was said to have bad and doubtful debts of N$9.7 million.
“The councillor should attend to the arrears as a matter of urgency. Due to this state the auditors are of the opinion that the provision for bad debts is overstated with N$1.8 million.
“The income statement reflects an amount of N$20 576 659 for capital projects. The purchase according to the capital statements is N$10 778 346. The difference of N$9 798 314 could not be explained by the town council,” the AG said.
Long term liabilities were understated with N$821 249.
The AG further said that he could not find significant proof that all returns have timeously been submitted. “The VAT receivable of N$2 853 183 could not be verified by the auditors to their satisfaction.”
The Ministry of Information was cited for under spending the budget by N$38 million. It was recommended that the accounting officer should put measures in place to prevent under expenditure and ensure that planned projects are implemented.
It was further revealed that although the accounting officer reported a nil statement for unauthorised expenditure two operational sub-divisions were exceeded by N$1.8 as reflected in the main ledger.
“These excesses are contrary to Section 6 of the State Finance Act (Act 31 of 1991).
“It is recommended that the Accounting Officers should report all unauthorised expenditure as required by Circular D12/2010 of the Auditor-General. The accounting officer should also put measures in place to avoid unauthorised expenditure.”
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