ONGWEDIVA – Auditor General (AG) Junias Kandjeke has issued an adverse audit opinion to the Okahao Town Council over material misstatements, unsupported adjustments and non-compliance with accounting and statutory requirements. The information is contained in the council’s audit report for the year ended 30 June 2024. Kandjeke said that the financial statements did not fairly... The post Okahao fails AG’s litmus test appeared first on New Era .
ONGWEDIVA – Auditor General (AG) Junias Kandjeke has issued an adverse audit opinion to the Okahao Town Council over material misstatements, unsupported adjustments and non-compliance with accounting and statutory requirements.
The information is contained in the council’s audit report for the year ended 30 June 2024.
Kandjeke said that the financial statements did not fairly present the council’s financial position, financial performance and cash flows in accordance with International Public Sector Accounting Standards (IPSAS).
A major concern was a N$10.3 million difference between the closing balances in the 2023 audit report and the opening balances reflected in the 2023 annual financial statements.
The audit also raised concerns over the council’s treatment of its landfill. The council failed to recognise the landfill or dumpsite as a tangible asset in line with its approved accounting policy and instead used a market value, despite the absence of an established market for such specialised assets. Another significant finding involved homestead compensation.
The council recognised only N$7.3 million of a total present obligation of N$39 million, resulting in an understatement of N$31.6 million in the annual financial statements. The AG further found that N$1 million in homestead provision transactions was recorded as an expense in 2024, although the underlying transactions did not occur during that financial period.
While the council provided supporting information for the N$7.3 million closing balance, it could not identify which transactions related to the N$1 million expense. Concerns were also raised about a N$2.9 million adjustment to income from the sale of erven.
The council also failed to provide supporting evidence for the journal entry, leaving auditors unable to determine whether the correction was accurate and complete. The council’s Build Together programme also came under scrutiny.
It did not maintain loan amortisation schedules for beneficiaries, preventing auditors from verifying current and long-term loan balances of N$562 448 and N$6.4 million, respectively. The audit further found that the council failed to disclose required information relating to Build Together concessionary loans and did not present its Housing Revolving Fund as equity. In addition, the council continued using its travelling and subsistence allowance policy despite a ministerial directive advising against its implementation.
A total of N$1.17 million was paid in travelling expenses during the year under review. The council also failed to meet the statutory deadline for submitting its financial statements. Although required to submit them within three months after the financial year-end, the statements were only submitted on 7 March 2025 and were subsequently recalled and resubmitted several times.
Performance reporting was similarly deficient. The council had no strategic plan covering 2024 and relied on its 2017/18-2021/22 strategic plan.
Of 62 key performance indicators assessed, 28, or 47%, could not be verified due to missing information. The council also failed to submit signed 2024 performance agreements for its chief executive officer and LED and tourism officer.
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The post Okahao fails AG’s litmus test appeared first on New Era.
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