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OFFICE OF THE AUDITOR-GENERAL. WORKING TOGETHER TOWARDS CLEAN AUDIT Goms Menette ` Deputy Auditor-General. CONTENT. Vision Mission Strategic Plan Local Authorities Act Expectations Most common audit findings Other audit findings Audit opinion Conclusion. VISION.

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Office of the auditor general

OFFICE OF THE AUDITOR-GENERAL

WORKING TOGETHER TOWARDS CLEAN AUDIT

GomsMenette`

Deputy Auditor-General


Content

CONTENT

  • Vision

  • Mission

  • Strategic Plan

  • Local Authorities Act

  • Expectations

  • Most common audit findings

  • Other audit findings

  • Audit opinion

  • Conclusion


Vision

VISION

  • The vision of the Office of the Auditor-General is to be an independent, professional supreme audit institution that produces quality and timely reports resulting in the best use of public resources.


Mission

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.


Strategic plan

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.


Local authorities act 23 of 1992

Local Authorities act 23 of 1992

  • The Accounting Officer of the local council shall within three months or such longer period as the Auditor-General 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)


Local authorities act 23 of 1992 cont

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


Expectations

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.


Most common audit findings

MOST COMMON AUDIT FINDINGS

MUNICIPALITIES, TOWN COUNCILS, VILLAGE COUNCILS and REGIONAL COUNCILS


Most common findings

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


Most common findings1

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


Most common findings2

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


Most common findings3

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


Most common findings4

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)


Other audit findings

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


Audit opinion

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.


Audit opinion conclusion on the selected clients

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


Audit opinion conclusion on the selected clients cont

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


In conclusion

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


The end

The end

THANK YOU!


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