Lusaka, 11th December 2024 – The acting Auditor General, Dr. Ron Mwambwa, has released the Report of the Auditor General on the Audit of Accounts of Local Authorities for the financial year ended 31st December 2023. The report, tabled before the National Assembly on Monday, 10th December 2023, covers all 116 local authorities across the country and highlights minimal improvements alongside significant internal control and operational weaknesses specific to certain councils.
In his statement, Dr. Mwambwa, released by the Head of Public Relations in the Office of the Auditor General, emphasized that while there were notable improvements in audit opinions, various challenges still persisted. The report provides detailed audit opinions issued on the accounts of each local authority for the period under review, along with a comparative analysis of the opinions issued for the 2022 financial statements.
Key Findings and Implications:
- Audit Opinions
The report showed a significant improvement in the number of local authorities receiving unmodified audit opinions on their financial statements. In 2023, 113 out of 116 local authorities received unqualified audit opinions, up from 77 in 2022. This indicates that 97% of the local authorities had financial statements free from material misstatements or omissions.
- Failure to Settle Statutory and Other Obligations
Despite the improvements in audit opinions, the report highlighted that 109 councils owed various institutions a total of K3,522,262,654 in respect of tax, pension, insurance contributions, and supply of goods and services. Some of these obligations have been outstanding since 2013, potentially disadvantaging employees of their benefits upon leaving service.
- Failure to Collect Revenue
The report disclosed that 19 councils failed to collect revenue amounting to K1,447,216,249 from property rates, billboards, site rent, and personal levy during the period under review. By 31st October 2024, only K315,413,959 (22%) had been collected, leaving a balance of K1.131,802,290. This shortfall deprives the government and respective institutions of much-needed revenue for social services and improved service delivery.
- Overemployment of Staff
An examination of Establishment Registers at 33 councils revealed overstaffing, with excess salaries paid to 232 staff amounting to K16,502,053.
- Employees Without Requisite Qualifications
The report found that 237 staff members at 42 councils did not meet the necessary educational and professional qualifications for their positions.
- Annual Performance – Failure to Meet Targets
During 2023, all 116 councils aimed to implement programs supporting the Decentralization Policy and the 8th National Development Plan targets. However, by the end of the year, only six councils achieved their set targets, while 110 councils partially or completely failed to meet them.
Other notable findings included failure to prepare valuation rolls, control markets, develop integrated development plans, manage solid waste, fill vacant positions, and maintain council properties, among others.
Dr. Mwambwa expressed concern over the continued poor governance in managing public resources by local authorities. He recommended timely achievement of annual targets, economic utilization of project funds, and effective revenue and expenditure management. He urged responsible officials to address the issues raised urgently to ensure quality service delivery and development in their communities.
The full report is available for the public and can be accessed at the Office of the Auditor General in Long Acres or on their website at www.ago.gov.zm.
