Auditor General’s Report reveals Rakiraki Town Council did not have proper accounting system

The Auditor General’s Report on Municipal Councils for 2013 has revealed that the Rakiraki Town Council did not have proper accounting system.

The report says that separate general ledger accounts were not maintained for a number of accounts disclosed in the financial statements including all balance sheet accounts.

This led to lack of an audit trail for most of the amounts reflected in the 2013 financial statements.

The council had then advised that it has commenced with appropriate general ledger system from the 2015 financial year.

Significant anomalies were also noted in the internal control system for cash at bank and this includes, incorrect preparation of bank reconciliation, absence of review on the bank

reconciliation and non‑preparation of banking summaries.

According to the Auditor General’s 2013 Report, the Rakiraki Town Council did not maintain a list of all the businesses that were operating within the municipality and as a result, they could not establish whether all the traders were paying

their annual business license fees.

The council indicated that it has improved the maintenance of business license records from 2015 whereby a folder is maintained for each business.

The report also highlighted that the Council recorded rates, garbage fees and business license fees on cash basis and  consequently, it has not captured all the revenue it has earned during the year.

Meanwhile, Minister for Local Government Premila Kumar says she knows about major problems at Municipal Councils and whatever was identified in the 2013 Auditor General’s Report was correct.

Kumar says good governance, accountability and transparency are few things that need to be taken care of.