THE rift between Kwekwe City Council, management and councillors over the 2011 and 2012 external audit report which pointed to alleged financial mismanagement of close to $1 million appears to have ended.
BY BLESSED MHLANGA
This follows resolutions from an audit committee meeting which was attended by external auditors, city treasurer Rejoice Maweni and councillors, which resolved to bring finality to the issue.
“The outcome of this meeting brings finality to the 2011 and 2012 audit financial statements, although management should provide the bank reconciliations and supporting documents to external auditors to explain how the figure of $467 456 was reconciled for future reference,” part of the resolutions read.
According to the reports prepared by the Urban Development Corporation (UDCORP), $297 595 was unaccounted for in 2011, while $467 456 was lost in 2012.
“We were unable to confirm the accuracy and completeness of cash and cash equivalents disclosed in the financial statements since there was a significant number of reconciled items in the form of under-bankings and over-bankings. The total reconciled cash amounts to $467 456,” the auditors wrote.
Maweni, however, argued that the under- and over-bankings were caused by power outages resulting in failure to quickly reconcile their books.
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“In response, the director of finance said the under- and over-bankings came into existence because of electricity load-shedding which led to manual receipting making it difficult to allocate money receipted to different accounts like water and sanitation, housing and rate fund, among other funds by end of day report.
“She (Maweni) said on the day, the cashiers then estimated the amounts to be allocated to each fund, but these figures will be corrected through bank reconciliation checking fund by fund,” part of the minutes read.
Councillors then demanded that in order to close the rift, a new reconciliation should be handed over to the external auditors.
This was after an auditor, identified only as Mabhena in the minutes, said their report was compiled using the bank reconciliations which had been provided by management and, therefore, the argument did not hold water.
