IMELDA AMBONDO
The Auditor General Junias Kandjeke has flagged bad financial management at the National Road Safety Council (NRSC) including failure to record a government subsidy of about N$11 million.
According to the latest report from the Auditor General’s office, NRSC incorrectly recorded a government subsidy of N$ 11 223 285 in the revenue disclosed in the statement of surplus or deficit and other comprehensive income.
Kandjoeke said this was inappropriate as the government made these contributions in their capacity as the shareholder.
The financials cover the financial year ending 31 March 2024.
“In my opinion the financial position of the National Road Safety Council as at 31 March 2024 and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards (IFRS),” he said.
The auditors also flagged a significant delay in the development of the new Road Safety Management Bill.
Kandjeke said the governance structure of the Council is unenforceable.
He said the auditors could not determine the accounting policies used to recognize revenue, because the relevant accounting standards could not be applied to the transactions.
Other transgressions also show that NRSC expenditure vouchers amounting to N$ 4 500 000 were not provided for audit purposes.
“ Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis o f these financial statements.” Kandjeke said.
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