Auditor General Junias Kandjeke gave the Oranjemund Town Council an adverse audit opinion for the 2020/21 financial year for its failure to provide financial statements on the true reflection of the institution’s financial standing.
An adverse audit opinion is a professional opinion made by an auditor indicating that a given organisation’s financial statements are misrepresented, misstated and do not accurately reflect its financial soundness.
This revelation is contained in the Oranjemund Town’s audit report for the 2020/21 financial year, availed to Nampa on Tuesday.
“In my opinion, because of the significance of the matters discussed in the basis for adverse audit opinion paragraph, the financial statements do not present fairly, in all material respects, the financial position of the Oranjemund Town Council and its financial performance and cash flows for the years then ended in accordance with the International Public Sector Accounting Standards,” said Kandjeke.
He premised his opinion on six key financial discrepancies that were uncovered when the audit was conducted which included an inventory amounting to N.dollars 2 million which could not be confirmed as the inventory report was not provided for audit purposes, nor invitation for external auditors to attend stocktaking.
The auditors also were unable to establish the accuracy and completeness of additions to infrastructure amounting to N.dollars 11 million of the property, plant, and equipment as records in the Fixed asset register were incomplete.
Further, the auditors were unable to verify accounts receivables of N.dollars 14 million for the year 2020 because the town council failed to provide the customer detailed ledger for audit purposes while the notes could not agree to the financial statements.
Kandjeke found a difference of N.dollars 10 million between the financial statement opening balance and reconciliation of property, plant and equipment closing balance during the financial year under review.
Source: NAMPA