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Audit Report Indicts MDAs

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Audit Report Indicts MDAs

By S. U. Thoronka…………………………
According to official explanation the audit of Ministries, Departments and Agencies (MDAs) are risk-based compliance audits, meaning priority is given to high risk areas. Where there is the likelihood of an undesirable event occurring and the potential impact that it would create should it happen, citing corrupt practices as an example.
From the Audit exercise conducted for the year ended 2013, it was discovered that monies allocated to some MDAs were not accounted for; payments without adequate supporting documents persists in almost all the MDAs; monthly bank reconciliations were not carried out in most MDAs and this according to the report is a fundamental failure of internal control over cash and banking procedures.
It was further noted that there were significant weaknesses in the management of revenue in most revenue generating entities where the transfer of funds to NRA is subject to unnecessary delays. Withholding taxes were not being deducted from suppliers or contractors payments, while several significant lapses were observed in procurement procedures resulting in incomplete transactions and unsatisfactory service delivery.
The report also highlighted that monies intended to be managed by imprest accounts were not properly closed out or accounted for with the result that control over accounts is weak and analyzing and posting expenditures accurately to ledger accounts was seriously hampered. The report further stated that fixed assets, stores and fuel records were not adequately recorded in applicable registers and other records.
Supporting documents for payments made by MDAs, totaled Le4, 203,467,082 were not presented for audit inspection during 2013, while disbursements totaled Le5,143,970,125 were also undertaken for which some supporting documents were submitted. But it was further stated that the nature of the supporting documents was insufficient to fully substantiate the payments concerned. The sum of Le3, 962,326,202 was used as imprest for activities undertaken by various institutions for which retirement details were not available for inspection.

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