The Addis Ababa City Administration Auditor General (AACAAG) has reported that it has found unaccounted payments of close to a quarter of a billion Birr in the Addis Ababa City Roads Authority (AACRA).
AACAAG did both performance and financial audits that lasted for six months on AACRA. The audit report discovered that some construction materials were missing on some sites, according to Tsigewoyn Kassa, City’s Auditor General.
“The gap was caused by lack of follow-up on unsettled finance,” she said.
This is according to the Office’s report of the just ended fiscal year to the cabinet of the city administration on July 11, 2017.
The Auditor General listed nine institutions with similar cases for unaccounted payments. The main unaccounted payments are found at AACRA accounting for 245.8 million Br, Addis Ababa City Administration Sanitation Administration Agency with 5.2 million Br and Addis Ababa City Administration Construction & Housing Development Bureau with 1.5 million Br.
Shiferaw Bekele, director of the Finance Administration Directorate at AACRA, linked the unaccounted payments with less attention of payment offices.
“There was a problem in coding transactions, registration, posting, and reconciliation, which resulted in most of the errors,” Shiferaw said. “The fact that the payment offices had no team that would lead them was another problem.”
AACRA has now assigned four personnel who are working to clear these problems on documents dating back to 2004, led by the Financial Reporting Team.
The clearing work has reduced the unaccounted payments to 28 million Br since the City’s Auditor General Office did the audit and 10 million Br was paid to the Revenues Office, he added.
AACRA is expected to submit its response to the audit gaps to the Office by September 5, 2017.
“Financial gaps have improved compared to previous years’ audits. But concerning purchases, there has not been any improvement,” Tsigewoyn said.
In addition to AACRA, in eight institutions, 589.5 million Br in unsettled money was also found, of which 420.6 million Br is from the Addis Ababa City Administration Housing Development Project Office.
Also, 15 institutions spent a total amount of 154.8 million Br on purchases that did not follow purchasing rules and regulations.
Some of the rules and regulations that were not followed by the institutions include purchases made from organisations which did not win procurement bids, and purchases carried out without entering a contractual agreement and bid, according to the report.
There was also an Exit Conference on the audit report, and corrective suggestions were given to the workers and heads of the audited institutions, the Auditor General reported.
Although the audit report revealed that 1.2 billion Br of gaps were found, the City Administration has increased the budget that was 35 billion Br last year to 40.5 billion Br for the current budget year.
The gap was also seen at the national level. The Federal Auditor General reported that institutions with serious audit gaps have increased from 37 to 53 in 2015/16.
In its report to the Parliament on May 30, 2017, Gemechu Dubiso, the Federal Auditor General, asked the Parliament to mete out severe measures against institutions that violate government regulations and waste public funds.
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