AG red-flags Game Products Trust Fund financials
Spotlight on ‘misrepresented, misstated’ statements
Reasons for the adverse audit opinion included incorrectly-dated trophy hunting invoices, amounting to N$4.2 million.
Auditor-General Junias Kandjeke has expressed serious concern over the financial reporting of the Game Products Trust Fund (GPTF), which houses millions of dollars obtained from the sale of wildlife products.
These funds are subsequently channelled towards wildlife and community conservation as well as development programmes aimed at harmonising the co-existence of people and wildlife.
For the financial year which ended on 31 March 2021, the auditor-general issued an adverse opinion which shed light on the fund’s misrepresented and misstated financials.
In a report, Kandjeke said the fund’s financial statements did not give a true and fair view of its financial position as at 31 March 2021, its financial performance and its cash flow for the year, in accordance with international reporting standards.
Reasons for the adverse audit opinion included the fact that invoices amounting to N$4.2 million for trophy hunting had dates falling outside the period under review, which resulted in an overstatement of revenue.
Kandjeke added that the GPTF incorrectly accumulated a revaluation gain amounting to N$565 500 under retained earnings instead of accumulating it in equity surplus.
“Furthermore, it incorrectly recognised revenue from the sale of buffalos amounting to N$5 million on the payment date of October 2020, while the performance obligation was only satisfied from June 2021 when the buffalos were shipped to their intended destination.”
Microsoft Excel
Kandjeke noted that GPTF did not provide the audit with supporting documents containing details of a deal between the environment ministry and a hunter for the trophy hunting of two lions with a recognised revenue of N$3.26 million.
“This resulted in auditors not being able to confirm the completeness of the amount received.”
Meanwhile, the fund did not have an accounting system for recording and processing its transactions, he said.
“The fund makes use of Microsoft Excel to record its transactions. It is recommended that it ensure that it makes use of an accounting system for capturing and processing transactions,” the report read.
These funds are subsequently channelled towards wildlife and community conservation as well as development programmes aimed at harmonising the co-existence of people and wildlife.
For the financial year which ended on 31 March 2021, the auditor-general issued an adverse opinion which shed light on the fund’s misrepresented and misstated financials.
In a report, Kandjeke said the fund’s financial statements did not give a true and fair view of its financial position as at 31 March 2021, its financial performance and its cash flow for the year, in accordance with international reporting standards.
Reasons for the adverse audit opinion included the fact that invoices amounting to N$4.2 million for trophy hunting had dates falling outside the period under review, which resulted in an overstatement of revenue.
Kandjeke added that the GPTF incorrectly accumulated a revaluation gain amounting to N$565 500 under retained earnings instead of accumulating it in equity surplus.
“Furthermore, it incorrectly recognised revenue from the sale of buffalos amounting to N$5 million on the payment date of October 2020, while the performance obligation was only satisfied from June 2021 when the buffalos were shipped to their intended destination.”
Microsoft Excel
Kandjeke noted that GPTF did not provide the audit with supporting documents containing details of a deal between the environment ministry and a hunter for the trophy hunting of two lions with a recognised revenue of N$3.26 million.
“This resulted in auditors not being able to confirm the completeness of the amount received.”
Meanwhile, the fund did not have an accounting system for recording and processing its transactions, he said.
“The fund makes use of Microsoft Excel to record its transactions. It is recommended that it ensure that it makes use of an accounting system for capturing and processing transactions,” the report read.
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