AG highlights Rehoboth's troubled finances

An accumulated deficit of nearly N$37 million and expenses exceeding assets. This is the grim picture painted by the auditor general (AG) of the Rehoboth town council&#039;s accounts, which remained firmly in the red for the period from 2017 to 2019.The financial statements were also submitted late and not as required by the Local Authorities Act, three months after the end of the financial year, according to the AG’s report. The council did not maintain an asset register, making it difficult to ensure the accuracy and completeness of recorded assets. An old valuation roll was also used to determine and collect rates and taxes, even though a new roll had been promulgated in 2015. These rates were detrimental to the council&#039;s finances.No inventory count and related valuation were included in the report for any of the three financial years. An inventory of water in reservoirs, as well as services and undeveloped land offered for sale, was also not recorded.Variances noted The report repeatedly refers to "unexplained variances" in the council&#039;s payroll, value-added tax, cash, and housing loans compared to revenues, each amounting to several million Namibian dollars.No reconciliations were performed on the council&#039;s bank accounts, leading to unexplained variances between the bank statement balances and the general ledger of nearly N$100 million for the three years. The same lack of reconciliation and supporting documents applies to the council&#039;s suspense accounts.The same pattern of a lack of reconciliation and supporting documents is noted in the report for housing and service loans, deposits, and expenses, including a lack of any approval documents.The revenue from the sale of plots in 2019 amounted to N$471 230 but was recorded on a cash basis and not as required when the property was transferred. No list or register of plots or properties sold was submitted to support the related income. Regarding rates for water, refuse removal and electricity, incorrect rates were applied in the respective financial years.Bulk purchases of electricity and water, as well as software expenses, were recorded on a cash basis rather than an accrual basis. Concerning the council&#039;s cash flow, the report once again refers to "unexplained accounting entries."The report underlines that "those charged with governance are responsible for overseeing the entity&#039;s financial reporting process."– henriette@republikein.com.na

AG highlights Rehoboth's troubled finances

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Namibian Sun 2025-05-08

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AG highlights Rehoboth's troubled finances

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Namibian Sun 2025-05-08

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