Auditors query unrecorded K113bn
The National Audit Office (NAO) has queried lack of records in the Integrated Financial Management Information System (Ifmis) for K113.7 billion collected by Malawi Revenue Authority (MRA) for the year ending June 2020.
But the Ministry of Finance, which operates the government’s electronic payment platform, has dismissed the findings contained in the Auditor General’s report analysing financial transactions for government ministries, departments and agencies (MDAs) between 2018 and 2020.
The report categorises the non-recording among key “weaknesses on financial and other internal controls”.
It reads in part: “Section 4.4.6.6 of the desk instructions stipulates that on a monthly basis, a ministry or department or agency shall send a notification to Treasury giving the details on the revenue collected. Treasury shall then transfer funds from the ministry’s recurrent revenue bank account to Malawi Government bank Account Number One.
“Before transferring such funds, and to avoid transferring revenues that are not in the Ifmis, accounts office must make sure that all the revenue details have been entered in the Ifmis.
“A review of revenue reports from Ifimis, showed that revenue collected by the Malawi Revenue Authority amounting to K113 750 955 290.73 was not recorded in the Ifimis.”
But in a written response on Tuesday, Ministry of Finance spokesperson Taurai Banda insisted the funds were recorded. However, he could not commit when asked if Treasury has queried NAO on its findings.
He said: “To begin with, operationally, MRA by law retains three percent of their revenue collections for the institution’s operational use. These funds are captured within the Ifmis system and with cash controls and receipts present for auditing.
“Transparency and monitoring of the flow of funds will always be reflected in the Ifmis system. Therefore, the K113 billion was registered within the system.”
Acting Auditor General Thomas Makiwa said in an interview yesterday that following the Treasury query, they expect the Ministry of Finance and MRA to reconcile the figures.
He said: “It’s a work in progress. They are still reconciling the figures between the Accountant General, MRA and, of course, the figure that we got. These are moving figures.
“At the time of audit it could be a certain figure and by now the information has been captured in the system. It is just a matter of reconciliation between the three parties.”
Makiwa also said NAO officials met Ministry of Finance over the matter yesterday.
Meanwhile, Public Accounts Committee (PAC) vice-chairperson Ned Poya said in an interview he suspected something fishy behind the differences between the two sides.
He said: “An auditor does not bring something that is in his head. And the auditor foretells you that we are coming and we will need such documents and once you fail to furnish them that is where red flags are picked. There is no way an auditor can report things that are fabricated then that auditor is unprofessional.
In recent years, audits of MDAs have exposed flaws ranging from lack of supporting documents for payments to failure to reconcile and account for some resources.
