Swakopmund: The Erongo Regional Council has received an unqualified audit opinion from the Office of the Auditor General for the financial year ending 31 March 2021. An unqualified opinion indicates that the financial statements are free from material misstatements and comply with the required financial reporting standards.
According to Namibia Press Agency, the audit report issued by Junias Kandjeke reveals that the council recorded a surplus of N.dollars 2.3 million during the period under review. This contributed to an increase in its net assets from approximately N.dollars 172 million in 2020 to about N.dollars 175 million in 2021. The report, released as Report No. 91 of 2025, outlines the council's financial performance and its compliance with public finance regulations during the reporting period.
The audit assessed whether the council's financial statements fairly represent its financial position and whether the institution complied with relevant legislation governing the management of public finances. The report indicates that several factors contributed to variances between budgeted and actual expenditure, including grant income received for capital and rural development projects, which were not fully reflected in the operational budget estimates.
Government transfers also influenced the council's financial performance during the year, with additional grants of N.dollars 2.6 million for capital projects and N.dollars 1.7 million for rural development initiatives recorded during the period. Operational expenditure was lower than anticipated in some areas, partly due to vacant positions that were not filled during the reporting period, resulting in savings on employee costs.
Meanwhile, the financial statements recorded non-cash expenses, including depreciation of about N.dollars 3.8 million and impairment losses of approximately N.dollars 11.6 million, which affected the council's overall financial performance. Interest income earned on short-term investments also contributed to revenue but was not included in the original operational budget projections.
In submitting the report to the National Assembly, Kandjeke stated that the audit was conducted in accordance with constitutional and statutory requirements to ensure transparency and accountability in the management of public funds. The audit forms part of the AG's mandate under Article 127(2) of the Namibian Constitution, which requires oversight of the accounts of all state institutions, including regional councils.