Kamanjab Village Council records N$6.4m loss
The Kamanjab Village Council has recorded a loss of N$6 488 438 during the financial year that ended in June 2017, the Auditor General indicated in his report.
The council failed to service its government loans and consequently, loans amounting to N$1 555 404 were due, auditor general, Junias Kandjeke stated.
He added that the loss incurred by the council was caused by the outstanding subsidy from the line ministry.
According to Kandjeke the basis of qualified audit opinion include depreciation amounting to N$3 458 718 was not disclosed in their profit and loss statements.
“Failure to disclose the closing balance in the current period resulted in the current assets to be understated. The chief executive officer should ensure that all outstanding stock is disclosed for fair presentation. The opening balance of water inventory sets off against the closing balance hence there is no impact on the reported cost of scales,” he stated.