THE NATIONAL TREASURY Audit Issues among RoRs in FY 2016/2017

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Presentation transcript:

THE NATIONAL TREASURY Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 Cash and bank balances issues Unsurrended revenue to the Exchequer as at 30 June 2017. Unsupported revenue Non collection of long outstanding arrears of revenue Unsupported prior year adjustments Unexplained variances between budget and actual amounts: Non maintenance of proper books of accounts Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 1. Cash and bank balances issues: The auditor identified various issues concerning cash and bank balances among RoRs: Cash and bank balances not supported by bank certificates, actual cashbooks and bank reconciliations. Bank balances presented in the financial statements also differed from the figure in the cashbook bank balances. Resolution: The RoR should ensure that the cash and bank balances are fully supported by the bank certificates, actual cashbooks and bank reconciliations. Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 2. Unsurrended Revenue to the Exchequer as at 30 June 2017 : Revenue collected by the receiver of revenue was not fully surrendered to the Exchequer as at 30 June 2017. Further the auditor noted that some receivers of revenue surrendered less revenue to the exchequer than what was collected and the difference was never explained or accounted for. There were also instances of lack of satisfactory explanation for failure to remit to the exchequer, balances brought forward from previous years. Resolution: All revenue collected by the Receiver should be surrendered to the Exchequer without delay. Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 3. Unsupported Revenue : Lack of documentary evidence availed to confirm receipt and accountability of some revenues. In some cases, receipt vouchers were missing hence not possible to confirm the actual revenue collected. Resolution: All revenue collected by the Receiver should be supported by source documents. Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 4. Non collection of long outstanding arrears of revenue : Lack of satisfactory explanation for failure to collect arrears of revenue that were still outstanding from previous years. Resolution: All arrears of revenue should be collected by the receivers and surrendered to the Exchequer without delay. Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 5. Unsupported prior year adjustments: Some RoRs had prior year adjustments which had not been supported. Resolution: Ensure prior year adjustments are properly accounted and disclosed in the financial statements. Notes to these adjustments should also be adequate in line with cash basis IPSAS standard, Section 1.5.3 Cash basis IPSAS Sections 1.5.3 - Errors in the preparation of the financial statements of one or more prior periods may be discovered in the current period. Errors may occur as a result of mathematical mistakes, mistakes in applying accounting policies, misinterpretation of facts, fraud or oversights. When an error is identified in respect of a previous period, the opening balance of cash is adjusted to correct the error and the financial statements, including the comparative information for prior periods, is presented as if the error had been corrected in the period in which it was made. An explanation of the error and its adjustment is included in the notes. Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 6. Unexplained variances between budget and actual amounts: The notes lacked satisfactory explanations for variances between budget and actual amounts contrary to the prescribed template issued by PSASB. Resolution: The RoR should endeavour to provide explanations for the variances that are either below 50% and/or above 100%. Audit Issues among RoRs in FY 2016/2017

Audit Issues among RoRs in FY 2016/2017 7. Non maintenance of proper books of accounts: Some RoRs did not maintain proper books of accounts i.e. cashbooks, ledgers or prepare trial balances to support the Revenue Statement. Resolution: Ensure proper maintenance of books of accounts to support the balance in the revenue statements. Audit Issues among RoRs in FY 2016/2017