E1.3bn found in abolished govt department’s account
MBABANE – An amount of ( .3 billion has been dis covered in the revenue ac count of the abolished Income Tax 'epartment.
This money, which is ( 300
. , was collected in respect of graded tax deductions, pay as you earn (3A<() source deductions and tax on benefits.
Auditor General (AG) Timothy Matsebula said it could not be ascer tained how long these accounts have been in this revenue account because they were still reflected in the year ended March 3 , 2022.
“These were also not transferred to the revenue account and hence it was understated,´ he said.
The AG said Section 203(x) of the Financial and Accounting Instruc tion of 0 states that the account ing officer should see to it that all books of accounts were posted and kept up to date.
He said he warned the controlling officer that this could result in mis representation of revenue through a non existent account.
“The ministry should investigate and rectify this anomaly,´ Matseb ula said.
He said there was no response from the controlling officer and the matter remained unresolved and reportable.
This is not the first time that this abolished department catches the eye of the AG in the previous audit it was listed among those non ex istent entities that continued to be allocated money by government and also received payments from other related bodies.
The abolished 'epartment of Income Tax, was found to have been allocated an amount of (2 .2 million, of which ( 30 was released and an actual expenditure amounting to (20 .20 on &TA 9ehicle &harges was incurred.
UNAUTHORISED ALLOCATION
“Further, I reported that there was an unauthorised budget allocation on personnel costs amounting to (2 3. 0, where the budget released amounting to ( 2 .00 was also charged under the abolished Income Tax 'epartment,´ Matsebula said.
The AG said he also noted that the abolished departments had assets and liabilities balances not cleared and/or reconciled to nil balances at the year of closure.
“%oth Income Tax 'epartment and &ustoms and (xcise 'epartment had assets balances amounting to (4 03. and liabilities balances amounting to (2 03 0 .24 as at 3 March 202 ,´ he said.
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He expressed concern that the fi nancial position of the consolidated statement of assets and liabilities may be distorted and funds could remain unaccounted for and un remitted to the (swatini 5evenue Service ((5S).
Matsebula said he advised the controlling officer to reconcile the suspense accounts and requested that supporting documentation for the assets and liabilities should be provided to the AG’s Office
“The controlling officer stated that as a ministry they will request the assistance from the Treasury 'epartment on the matter, since that department has their own ac counting functions away from the ministry. I noted the response, but the matter has not been resolved, hence it remains reportable,´ he said.
The AG cited financial and ac counting instructions to highlight the seriousness of what was happening.
One of these was Financial and Accounting Instruction number
0 , to stress that was essential that expenditure estimates should be as accurate and realistic as possible and should cover all foreseeable expenditure.
He said this instruction further provided guidance that submission of requests for expenditure estimat ed to the Ministry of Finance was the responsibility of the controlling officer.
DISCONTINUED
“However, I am not aware whether the budget for the discontinued op erations was part of the controlling officer’s submission to the Ministry of Finance,´ he said.
Also, he said according to the Financial Management and Ac counting 3rocedures Manual ( 3) Section ( .4), applications for the creation of new below the line account items must be submitted to the accountant general, together with any supporting documents on the background and need for new account.
“I requested the controlling officer to provide the instrument establish ing this special fund account, the purpose programme/project, cash book, financial records and support ing documents, and bank statements. At the time of writing this report, this information had not been provided,´ Matsebula said.