HomeNewsCrisis Coalition audit rules out funds misuse

Crisis Coalition audit rules out funds misuse

-

AN audit report on the embattled Crisis in Zimbabwe Coalition (CiZC) has ruled out the misuse of funds within the organisation, but noted that there were inefficient financial systems that needed to be corrected.

EDGAR GWESHE
OWN CORRESPONDENT

The audit, which was carried out by Baker Tilly Gwatidzo Chartered Accountants, was recommended following the leadership wrangle rocking the organisation that saw board chairperson Dewa Mavhinga resigning.

CiZC director Macdonald Lewanika, who fought a bitter war with Mavhinga for the control of the organisation, is under fire for allegedly misappropriating $2 million which was meant for the Feya Feya campaign whose objective was to contribute towards the holding of free and fair elections last year.

There was commotion at the Quill Club on Wednesday last week when rowdy elements disrupted a Press club meeting on electronic voting that was being chaired by CiZC spokesperson Mfundo Mlilo.

The audit by Baker Tilly Gwatidzo revealed that the total income for CiZC for the year was $1 447 604, of which $161 000 was allocated to the Feya Feya campaign.

Of the $1 447 604 allocated to CiZC for the year 2013, the audit showed that total expenditure was $1 321 745 creating a budget surplus of $125 857.

In a management report attached to the audit, Baker Tilly Gwatidzo noted that CiZC failed to conduct a formal tendering process for a vehicle worth $44 167, while purchases worth over $30 000 were made without the requisite formal tendering process.

A management report also compiled by Baker Tilly Gwatidzo revealed inefficiencies. These included manual preparation of payroll, statutory payments not being made on time, non-compliance with donor requirements as well as failure to conduct a formal tendering process for purchase f a motor vehicle.

According to the management report, the manual preparation of the payroll was a medium risk, implying that it could be preventive or detective.

The audit report recommended a switch-over to a computerised payroll accounting package that limited errors.

CiZC management has acknowledged the audit findings and said in a statement: “Management acknowledges this finding. The institution had, however, put in place a computerised payroll system by the time of the audit.”

CiZC suffered a penalty of $22 346 due to late or non–payment of statutory requirements such as the National Social Security Association pension and Pay As You Earn payments. The audit recommended strict adherence to internal control policies and procedures.

Recent Posts

Stories you will enjoy

Recommended reading