EnviroPress Reporter

The latest Auditor General’s Report on local authorities has cast a critical spotlight on the financial management and adherence to auditing standards by local authorities in the Midlands province.

The report reveals a pervasive pattern of non-compliance with International Public Sector Accounting Standards (IPSAS) and other critical financial regulations, leading to modified audit opinions for nearly all audited entities in the province.

Gweru City Council received an adverse opinion for three consecutive years (2021, 2022, and 2023), indicating significant issues with its financial statements. The council was flagged for failing to comply with key IPSAS standards related to hyperinflationary economies, consolidated financial statements, and property, plant, and equipment. The report highlighted a staggering ZWL883 million unsupported expenditure in 2023, ZWL155 million in 2021, underscoring severe lapses in procurement documentation.

Read more: Masvingo City Council, Masvingo RDC fail latest Auditor General test

Instances of goods paid for but not delivered were noted, such as an ambulance for Kwekwe City Council and a generator for Shurugwi Town Council, some outstanding for years.

Rural district councils also faced substantial criticism, with Chirumanzu Rural District Council receiving qualified opinions for 2021 and 2022 due to non-compliance with accounting standards and significant variances in receivables and payroll payables. The council also reported an unsubstantiated suspense account balance of ZWL$1.64 billion.

Several councils, including Gokwe South and Zibagwe, faced difficulties in remitting statutory payments on time, leading to accruing penalties.

Gokwe North Rural District Council’s 2023 audit resulted in a qualified opinion, citing issues with IPSAS 17 (Property, Plant and Equipment) and IPSAS 47 (Revenue). The council was noted for failing to bill mining operators for development levies and for not maintaining a comprehensive database of businesses, leading to inaccurate revenue recognition. Compounding its woes, Gokwe North operated with a manual system and was understaffed, resulting in inadequate cash management practices and a lack of proper bank reconciliations.

Similarly, Gokwe South Rural District Council, struggling with IPSAS compliance and facing challenges in remitting statutory obligations like PAYE and NSSA on time due to cash flow constraints, received a qualified opinion for 2023.

The report pointed to a concerning environmental hazard, with the Murereka Township open dumpsite located unsafely near a primary school and homestead, lacking proper fencing.

Other local authorities in the province, including Mberengwa, Runde, Vungu, and Zibagwe Rural District Councils, consistently received qualified opinions over multiple years. Common issues across these entities included failure to adhere to standards related to property, plant, and equipment, revenue, financial instruments, and the presentation of financial statements.

Councils, like Zibagwe Rural District Council were identified for lacking essential documents such as asset registers, hindering proper accountability of fixed assets.

Cases of inconsistencies in billing and significant variances between financial statements and supporting documentation were prevalent across all councils.