Okahandja audit fails to verify 452 assets
Auditors have raised concerns over the Municipality of Okahandja’s asset records after a consultant was unable to physically verify 452 movable assets during the preparation of the municipality’s fixed asset register for the 2022/23 and 2023/24 financial years. According to the audit report, the unverified assets represented approximately one-third of the total movable assets recorded by the municipality.
The findings raise questions about the municipality’s ability to account for and verify its assets, as the audit also identified difficulties in confirming land records. Auditors reported that only a limited number of the 1,800 plots listed on the valuation roll could be verified because of challenges with deeds records. The report further noted that the municipality had not provided a reconciliation showing the total land under its jurisdiction and how it was allocated across different land-use categories. As a result, auditors were unable to verify the classification of land as property, plant and equipment, investment property or inventory.
The findings formed part of the wider audit concerns surrounding the municipality’s financial statements for the two financial years. The Auditor-General was unable to express an opinion on the financial statements because of insufficient appropriate audit evidence. The municipality’s ability to account for its assets remains an important issue in light of the verification challenges identified in the report.
