ZVISHAVANE Town Council’s 2023 financial statements reveal unresolved variances totalling ZWL$4,28 billion amid concern over funds mismanagement.
The discrepancies were identified in accounts totalling ZWL$25,30 billion, raising the red flag over compliance and transparency, according to the 2024 Auditor-General report tabled in Parliament.
A ZWL$4,28 billion gap was found between reported receivables (ZWL$25,30 billion) and supporting documentation (ZWL$21,02 billion), casting doubt on the accuracy of financial records.
An unsubstantiated suspense account of ZWL$1,64 billion was included in total expenditures (ZWL$26,34 billion), further undermining the validity of expenses.
The local authority recorded licence fees, rentals and levies on a cash basis, violating accrual accounting rules.
Assets were last revalued in 2017 and donated assets were not recorded, distorting fair value representation.
“In my opinion, because of the significance of the matters discussed in the Basis for Adverse Opinion section of my report, the financial statements do not present fairly, the financial position of Zvishavane Town Council as at December 31, 2023 and its financial performance and its cash flows for the year then ended by International Public Sector Accounting Standards,” the report read.
Council failed to include its three schools in financial statements, omitting segment reporting for education services.
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A ZWL$477,72 million foreign exchange gain lacked documentation, while payroll payables showed a ZWL$1,62 bilion discrepancy.
“As a result, I could not satisfy myself as to the validity and accuracy of expenses disclosed in the financial statements,” the report read.
The Auditor-General issued an adverse opinion, stressing that the financial statements do not fairly reflect the council’s fiscal position.
Council acknowledged the findings, attributing delays to lack of expertise on the part of school bursars.
