GWERU City Council reportedly failed to confirm receipt of a ZWL226,9 million 2021 government grant, the Auditor-General (AG)’s latest report reveals.
The AG’s 2024 report recently tabled in Parliament highlighting Gweru City Council revenue collection and debt recovery noted that grants received by council from the Local Government ministry were deposited directly into council’s rates account without proof of payment to distinguish whether the amounts received were for bills or grants.
“As a result, council did not avail confirmation or proof of receipt for the government grant income received amounting to ZWL$226,9 million (ZWL$95,1 million: 2021),” the AG’s report read.
“This was contrary to the Urban Council Act [Chapter 29:15] section 286(1), which requires council to keep such books of account as may be necessary to maintain a true and proper record of all matters relating to its financial transactions.”
The report stated that the council management indicated that the non-submission of proof of payment of a grant received from the Local Government ministry was because “the ministry just deposits devolution disbursements into our account without any written documentation”.
“We have to call accounts officers to confirm whether the disbursement is a grant or payment of municipal bills. Management will ensure proper documentation for all future government grants,” council management noted, according to the AG’s report.
“Due to the government payment system, where each entity has to register a vendor number, we only have one vendor number linked to our rates account. The money is deposited into our rates account and then we transfer it to the dedicated account for devolution receipts.”
On procurement of goods and services, the AG noted that council contracted a supplier for a backhoe loader valued at US$82 330.
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“However, records revealed that council paid US$102 048, thus an overpayment of US$19 000 and no explanation was given on the excess,” AG noted.
“The council should prepare supplier reconciliations to ensure that such instances do not recur.”
The report states that management indicated that the backhoe loader was purchased using forex that was bought from the auction using the full value of the invoice from the supplier and was remitted directly to the supplier.
It further indicated that, however, a deposit had already been paid to the supplier.
An investigation will be conducted and recovery measures will be implemented where applicable.
On expenditure, the AG indicated that council’s record keeping was not adequate.
“As a result, council did not avail supporting documentation such as invoices and requisitions for expenditure amounting to ZWL$883 million (ZWL$155 million: 2021). This was contrary to Statutory Instrument 144 of 2019 section 71(1), which requires expenditure to be supported,” the report read.
“Management response was that this was due to poor record-keeping and lack of compliance. Use of proforma invoices for payments, unsupported transactions will be investigated, and missing documentation will be traced or resolved appropriately.
“Water treatment chemicals were delivered directly to the site and the stations should have records of receipt of the same.”
The AG noted “weak controls in ensuring documentation is maintained, use of a manual system for goods received” and stated that vouchers will be cross-checked and any missing information retrieved to ensure all purchases are accounted for.
The AG further noted that council did not make progress in addressing findings that were raised in the 2023 annual report.
