Council orders audit of city bank accounts
HARARE City Council has ordered a detailed audit of its bank accounts after discrepancies were discovered on listed bank accounts and those used by clearing officers to process electronic and other bill payments.
An internal Information Communication Technology Audit Review of electronic banking platforms also revealed that there was a mismatch between the City of Harare’s register of point of sale (POS) devices, the physical count and bank’s register of POS devices deployed.
“There were over 300 unauthorised users of the BIQ receipting module. The credit control Real Time Gross Settlement office does not maintain a record of authorisation vouchers issued for verified RTGS payments.
“There were numerous boxes of unfilled financial documents in the chief clerical officers’ open plan office in the cash control section at Rowan Martin building. The city’s point of sale devices were not integrated with the BIQ system,” read the recent Audit Committee minutes.
The committee inquired why council had many bank accounts and whether all the accounts were being reconciled.
“In response, the acting finance director (Mr Stanley Ndemera) reported that due to the e-banking system it was imperative that council should have many accounts. He further reported that there were two principal accounts which were held with CABS and BANC ABC, while the remaining accounts were meant for collection purposes only,” reads the minutes.
“The reconciliation of the principal accounts mentioned above was an ongoing process which was done throughout the year. However, due to manpower shortages to reconciliation of other accounts was being done at a slow rate. Measures were being put in place with a view to rectify issues raised in the report.”
Council resolved that Mr Ndemera urgently investigates and corrects the discrepancy between the POS device registers and their physical count.
It also resolved that he rationalises City of Harare bank accounts, making sure to assign POS devices to active bank accounts.
“Council resolved that town clerk (Eng Hosiah Chisango) ensures that a detailed audit of every single City of Harare bank account to be conducted.
“Acting finance director causes all permission, on the BIQ receipting module to be revoked for all staff that do not perform receipting or related duties.”
Council resolved that acting finance director holds cashiers and other authorised users accountable for any POS devices whose memory has been lost, including investigation into previous transactions these employees have processed.