After obtaining N$8 billion for the 2021/2022 fiscal year, the Ministry of Health and Social Services spent N$462,1 million extra.
Auditor General Junias Kandjeke presented a health ministry audit report to the National Assembly this week.
Kandjeke said that section 6(a)(i) of the State Budget Act of 1991 prohibits this sum.
He stated treasury permission was obtained to use estimated savings for expenditures.
17 subdivisions surpassed N$608,3 million in virements.
Kandjeke advised Ben Nangombe, the accounting officer, to prevent overspending and perform scheduled activities within budget.
He advised transferring monies from activities likely to save to those predicted to overspend.
Health Minister Kalumbi Shangula said he hadn’t seen the report, but the executive director is a better accounting officer.
Nangombe assured Kandjeke the ministry would reinforce the process based on his suggestions.
Kandjeke reported 51 duplicate supplier payments totalling N$768 130.
Management noted that the Integrated Financial Management System (IMFS) had various supplier codes for a single provider, increasing the possibility of repeat payments.
Kandjeke stated duplicate payments were credited against the following month’s amounts.
Nangombe informed Kandjeke the government was constantly retrieving the money.
Kandjeke also determined that the ministry’s suspense account’s bills payable had a negative balance of N$3.2 million.
Kandjeke suggested the accounting officer equalise the balance.
Nangombe said the ministry is reconciling and verifying.
The audit also discovered that one staff member initiated and authorised 51 transactions totalling N$7,6 million, which Kandjeke claimed violated the division of tasks.
Strengthen controls to separate payment obligations. User privileges are allocated to prevent intimidation and transaction approval by the same staff person. He added the finance ministry is helping the ministry divide users’ tasks.
Bursaries/study aid
Nangombe reported N$86,2 million in government bursaries and study help.
The ministry reported two occurrences of burglary causing N$20 798 in damage to government property and 86 cases of damages totalling N$904 762. As of 31 March 2022, the government owes N$2.8 million.
MINISTRY CAPITAL
The audit concluded that 10 major projects surpassed their budget by 31 March 2022. They were for the upgrading and refurbishment of Katutura Intermediate, Windhoek Central, Oshakati Intermediate, Onandjokwe, Keetmanshoop, Rundu, Okahandja, and primary healthcare clinics nationally, Katima Mulilo hospital, and health infrastructure maintenance and repairs.
All projects are due by 31 March 2025.
The ministry spent N$281,1 million renovating and improving Katutura Hospital, despite the allowed budget of N$190 million.
The ministry spent N$228,9 million on Windhoek Central Hospital’s N$177 million budget.
National basic healthcare clinic upgrades cost N$1 billion, despite a N$740 million budget.
“The accounting officer should guarantee that project budgets are not exceeded without finance ministry clearance.”
Nangombe said that the ministry submits new capital project budget proposals to the National Planning Commission yearly using Project Identification Forms (PIFs).
“Annually, PIFs report project progress, budget, and scope. The ceiling-approved development budget is subsequently executed “Nangombe remarked.
