Strong financial position of the NaCC laudable
The latest report on the Namibian Competition Commission (NaCC) tabled by the Auditor-General in the National Assembly dates back to the financial year ended 31 March 2011. The Commission received a clean audit opinion for which the Commission deserves a compliment.
Nature of business and principal activities
The Commission is tasked with promoting competitive market conditions through investigations and prosecutions of anti-competitive activities, reviewing and approving mergers and exemption applications and disseminating information to businesses, consumers and other stakeholders.
The financial situation of the Commission is strong and stable as can be seen from the following figures:
The current assets exceed the current liabilities by N$ 17 250 248 which reflects a strong cash-flow position, which is further supported by a balance of cash and cash equivalents amounting to N$ 13 158 792.
Debtors amount to N$ 4 236 221 and creditors to N$ 144 765, whilst the accumulated surplus increased from N$ 13 165 683 in the previous year to N$ 18 414 360.
The Commission closed the financial year with a profit of N$ 5 105 719 compared with a profit of N$ 5 465 541 in the previous year.
The main reason for the profit is the contribution received from Government of N$ 7 600 000 compared with a contribution of N$ 5 450 000 in the previous year. Own revenue generated during the year amounted to N$ 3 517 544 and N$ 748 898 was received by of interest on investments.
Government is always looking for extra money when discussing the National Budget and cutting from ministries/offices/agencies which, as a result, exceed their budgets or cut their services. Why not take a serious look at how many subsidies are being paid to parastatals and are the sizes of the amounts really warranted? Why not only fund any shortfalls experienced by these bodies during or at the end of each financial year?
The balance sheet reflects the following assets and their values as at year-end:
Furniture and fixtures N$ 470 564
Motor vehicles N$ 122 360
IT equipment N$ 381 096
Other fixed assets N$ 28 752
Office equipment N$ 16 575
The total value of assets is N$ 1 019 347. The useful lives of these assets are set as three years for furniture and fixtures, IT equipment and other fixed assets. The useful life of the motor vehicles is estimated at five years. However, the residual value and useful life of each asset is reviewed at the end of each financial period.
Total depreciation which has been written off during the year under review amounted to N$ 228 999.
It is always advisable to have a sound depreciation policy, as is the case with the Commission, in place.
The Commission is one of the few Government entities which have adopted the International Financial Reporting Standards, which are very comprehensive and not always easy to comply with. Congratulations and thumbs up to the NaCC. As a former deputy auditor general, this means a lot and is good for development.
Feasibility Study of Meat exports to Angola and the DRC
The surplus in this account has grown from N$ 3 505 888 in the previous year to N$ 3 722 685, through interest received and a small expense of N$ 18 000.
This also makes one wonder whether the Fund is being used for the purpose it has been created for.
Northern Communal Area Levy Fund
The income of this Fund amounted to N$ 10 123 783 whereas the expenditure amounted to N$ 8 732 745, consisting mainly of the mentorship programme and Veterinary cordon fence expenses.
The accumulated surplus of the Fund increased from N$ 25 065 860 to N$ 26 456 898.