MINISTRY OF BASIC EDUCATION_ SPORT AND CULTURE

Document Sample
MINISTRY OF BASIC EDUCATION_ SPORT AND CULTURE Powered By Docstoc
					         Republic of Namibia




AUDIT REPORT ON THE ACCOUNTS OF THE

MINISTRY OF BASIC EDUCATION,
SPORT AND CULTURE
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2004




                                                  2004


                    Published by authority

                 Price (VAT excluded): N$ 21.30
                         Report no: 350




                         -
    Office of the Auditor-General
                                    REPUBLIC OF NAMIBIA




               TO THE HONOURABLE SPEAKER OF THE NATIONAL ASSEMBLY



I have the honour to submit herewith my report on the accounts of the Ministry of Basic Education, Sport
and Culture for the financial year ended 31 March 2004 in terms of Article 127(2) of the Namibian
Constitution. The report is transmitted to the Honourable Minister of Finance in terms of Section 27(1) of the
State Finance Act, 1991, (Act 31 of 1991) to be laid upon the Table of the National Assembly in terms of
Section 27(4) of the Act.




                                                                         JUNIAS ETUNA KANDJEKE
WINDHOEK, November 2005                                                  AUDITOR-GENERAL
                                                    1




                         REPORT OF THE AUDITOR-GENERAL
                               ON THE ACCOUNTS OF THE
                   MINISTRY OF BASIC EDUCATION, SPORT AND CULTURE
                            FOR THE FINANCIAL YEAR ENDED
                                    31 MARCH 2004


1.     INTRODUCTION

1.1    Report

This report on the accounts of the Ministry of Basic Education, Sport and Culture for the financial year
ended 31 March 2004 is presented to the National Assembly in accordance with the terms of Article 127(2)
of the Constitution of the Republic of Namibia and Section 27(1) of the State Finance Act, 1991 (Act 31 of
1991), as amended.

1.2    Delay of audit report

In the past a single report has been prepared on the accounts of the Government of Namibia, covering all
Offices/Agencies/Ministries. This meant that if a single entity was late, it delayed the whole report. The
revised approach is now that as and when the report on an Office, Agency or a Ministry has been completed,
such report will be produced on an individual basis and sent to the Minister of Finance for tabling.

1.3    Powers and duties

Section 25(1)(c) of the State Finance Act, 1991, provides that the Auditor-General should satisfy himself
that:

(a)    all reasonable precautions have been taken to ensure that all monies due to the State are collected,
       and that the laws relating to the collection of such monies have been complied with;

(b)    all reasonable precautions have been taken to safeguard the receipt, custody and issue of and
       accounting for, the State’s assets, such as stores, equipment, securities and movable goods;

(c)    the expenditure has taken place under proper authority and is supported by adequate vouchers or
       other proof.

In addition, Section 26(1)(b)(iv) of the State Finance Act, 1991, empowers the Auditor-General to
investigate and report on the economy, efficiency and effectiveness of the use of the State’s resources.

2.     FINANCIAL STATEMENTS

The appropriation accounts were submitted to the Auditor-General in terms of Section 13 of the State
Finance Act, 1991.

The financial statements, notes to the financial statements and general information supplied by the
Accounting Officer are attached as annexure A to this report.
                                                       2


3.      SCOPE OF THE AUDIT

3.1     The Accounting Officer of the Ministry in co-operation with the Permanent Secretary of the Ministry
        of Finance is responsible for the preparation of the financial statements and for ensuring the
        regularity of the financial transactions therein. It is the responsibility of the Auditor-General to form
        an independent opinion, based on the audit, on those statements and on the regularity of the financial
        transactions included in them and to report his opinion to the National Assembly. The audit
        included:

        (a)     examination on a test basis of evidence relevant to the amounts, disclosure and regularity of
                financial transactions included in the financial statements; and

        (b)     evaluation of the overall adequacy of the presentation of information in the financial
                statements.

3.2     The audit was planned and performed so as to obtain all the information and explanations considered
        necessary to provide sufficient evidence to give reasonable assurance that:

        (a)     the financial statements are free from material misstatements, whether caused by error, fraud
                or other irregularity;

        (b)     in all material respects, the expenditure and income have been applied to the purposes
                intended by the legislature; and

        (c)     the financial transactions conform to the authorities that govern them.


4.      AUDIT OBSERVATIONS

4.1     MAIN ISSUES/FINDINGS IDENTIFIED BY THE AUDIT

4.1.1   Unauthorised expenditure

The under-mentioned unauthorised expenditure occurred during the financial year and is reported as such in
terms of Section 27 (6) (a) of the State Finance Act, 1991 (Act 31 of 1991).

One main division was exceeded by an amount of N$ 643 140.95 which is unauthorised in terms of Section 6
(a) (ii) of the Act.

The excess expenditure was due to a suspension which was erroneously suspended from main division 08
instead of main division 10. See also the explanation given at paragraph 1.4.1 for the underexpenditure on
main division 10.
                                                        3


4.1.2      Appropriation account

The Additional Appropriation Act, Act 17 of 2003 provides additional funds of N$ 188 340 000 to the
Ministry. The revised estimate document compiled by the Ministry of Finance shows the following
additional amounts and suspensions in relation to the appropriation account:

                                                                 Revised budget document         Appropriation
                          Main division                          Additional   Suspension            account
                                                                    N$             N$                 N$
      01 – Office of the Minister                                   238 000                -            238 000
      02 – Administration                                         3 489 000                -          3 489 000
      03 – Programme Implementation & Monitoring of Education
            Standards                                            13 941 000        2 000 000         11 941 000
      04 – Primary Education                                    125 833 000        1 250 000       124 583 000
      05 – Secondary Education                                   32 953 000        2 900 000         30 053 000
      06 – Namibia Library and Information Services               4 349 000                -          4 349 000
      07 – Adult Education                                        4 068 000                -          4 068 000
      08 – Arts and Culture                                       1 122 000        2 570 000        (1 448 000)
      09 – Planning, Research and Development                     8 706 000                -          8 706 000
      10 – Sport                                                    334 000                -            334 000
      11 – Hostels                                                8 027 000        6 000 000          2 027 000
                                                                203 061 000       14 720 000       188 340 000

The Ministry was authorised by Treasury to utilise suspensions, which were approved by Cabinet per
resolution 30th / 21.10.03 / 002, to cover additional needs elsewhere in the vote, hence there was no formal
virement approval in terms of Section 16(1)(a) of the State Finance Act, 1991, for the re-allocation of these
funds. The Ministry of Finance should revisit this procedure to ensure compliance with the State Finance
Act.

4.1.3      Internal controls

Subsistence and Travelling advances

(i)        Fifty nine (59) cases of subsistence and travelling advances were paid during the financial year.
           According to the list of subsistence and travelling advances submitted by the Ministry, an amount of
           N$ 193 250.14 was outstanding for the financial year under review. Unfortunately the dates when
           the advances were paid are not reflected on the list. In comparison with the 2002/03 outstanding
           balances which were N$ 227 178.61, there is a decrease of N$ 33 928.47 which is an improvement in
           collecting outstanding balances, but still officials have to account for advances as per Treasury
           instructions HB 0505and 0506, which state that “A claim for subsistence and other anticipated
           expenditure shall be submitted within 30 days after a person returned to his headquarters and
           monthly by a person who is elsewhere for a long period. Advances which are not standing advances
           shall be set off against claims for subsistence and other expenditure, immediately by the relevant
           person” and "where a person neglected to submit a claim for subsistence within 30 days after return
           to the headquarters, the outstanding amount on an advance against his/her claims shall be deducted
           monthly from his/her salary starting from the next month. The amount deducted from the salary
           shall not exceed 25% of his monthly salary.”

           It is strongly recommended that the Accounting Officer should make use of the existing procedures
           and regulations as provided in Treasury instructions HB 0505 and 0506, to curb the problem of long
           outstanding advances.
                                                      4


4.1.4    Suspense accounts

The following were suspense accounts of the Ministry exceeding N$ 100 000 as at 31 March 2004:


               Details                      Code             Debit/(Credit)
                                                                  N$
 Rejection account                        400110000              1 567 731.98
 Subsistence advance suspense account     408010000                193 250.14
 Receipt suspense account                 470210000              1 011 092.85
 Bills payable                            600101000           (45 076 219.21)
 Vehicle reserve account                  600102000            (2 116 569.00)

 Total                                                        (44 420 713.24)

The suspense accounts of the Ministry have been thoroughly analysed and reconciled with the ledger
accounts. Efforts are constantly being made to clear all items in the suspense accounts.

It is recommended that the Accounting Officer should take the necessary steps to clear or largely reduce the
amount shown in the Rejection Account.


5.       ACKNOWLEDGEMENT

The assistance and co-operation of the management and staff of the Ministry during the audit is appreciated.

6.       AUDIT OPINION

I certify that I have audited the financial statements of the Ministry of Basic Education and Culture for the
year ended 31 March 2004 in accordance with the terms of Article 127(2) of the Namibian Constitution and
Section 25(1) of the State Finance Act, 1991 (Act 31 of 1991).

In my opinion the financial statements fairly represent the receipts and payments of Vote 10 for the year
ended 31 March 2004 and, in all material respects, the receipts and payments have been applied to the
purposes intended by the National Assembly and conform to the authorities which govern them.




JUNIAS ETUNA KANDJEKE                                     OFFICE OF THE AUDITOR-GENERAL
AUDITOR-GENERAL                                           Metropolitan Building, 5th floor
                                                          c/o Frans Indongo/Werner List Street
                                                          Private Bag 13299
                                                          WINDHOEK/ NAMIBIA
                                                               5


                                                                                                           ANNEXURE A
  1.                  FINANCIAL STATEMENTS

  1.1                 APPROPRIATION ACCOUNT

                                                 2003/2004                                                        2002/2003

                                                                                            Variations

                                                                                          Under-
                                               Authorised             Actual           expenditure/      Percen       Actual
            Service                            expenditure          expenditure          (Excess)         tage      expenditure

                                   N$              N$                    N$                N$              %             N$
01.     Office of the
        Minister:
        Original budget            2 009 000
        Additional budget           238 000
        Plus: Virement           100 000           2 347 000            2 343 102.02        3 897.98      0.2         1 809 072.03

02.     Administration:

        Original budget        61 242 000
        Additional budget       3 489 000
        Plus: Virement             11 000        64 742 000           64 664 808.52       77 191.48       0.1        60 262 381.41

03.     Programme
        Implementation &
        Monitoring of
        Education
        Standards:
        Original budget       134 577 000
        Additional budget      11 941 000
        Plus: Virement           284 000        146 802 000          146 793 081.57         8 918.43      0.0       125 402 941.88

04.     Primary Education:
        Original budget      1 205 742 000
        Additional budget     124 583 000
        Less: Virement         (1 951 000)     1 328 374 000       1 327 518 596.82      855 403.18       0.1     1 224 045 024.22

05.     Secondary
        Education:
        Original budget       447 474 000
        Additional budget      30 053 000
        Plus: Virement             50 050       477 577 050          476 578 046.51      999 003.49       0.2       467 595 818.47

06.     Namibia Library
        and Information
        Services:
        Original budget        20 953 000
        Additional budget       4 349 000
        Less: Virement            (25 000)       25 277 000           25 262 109.80       14 890.20       0.1        23 590 568.82
                                                            6


                                                                                          ANNEXURE A (continued)

APPROPRIATION ACCOUNT

                                               2003/2004                                                             2002/2003

                                                                                          Variations
                                                                                    Under-
                                           Authorised             Actual         expenditure/      Percent-            Actual
         Service                           expenditure          expenditure        (Excess)          age             expenditure

                               N$              N$                   N$               N$                %                 N$
07.   Adult Education:
      Original budget       65 921 000
      Additional budget      4 068 000
      Plus: Virement            96 000       70 085 000          69 899 328.85     185 671.15          0.3            71 901 803.08


08.   Arts and Culture:
      Original budget       37 587 000

      Additional budget      (1 448 000)
      Plus: Virement         1 669 950       37 808 950         38 452 090.95     (643 140.95)         1.7           30 072 910.23


09.   Planning ,
      Research and
      Development
      Original budget       19 366 000
      Additional budget      8 706 000       28 072 000         28 056 891.10       15 108.90          0.1           25 797 914.89


10.   Sport:
      Original budget       31 436 000
      Additional budget        334 000       31 770 000         30 398 052.05    1 371 947.95          4.3          27 207 225.18


11.   Hostels:
      Original budget      220 208 000
      Additional budget      2 027 000
      Less: Virement          (235 000)     222 000 000         221 973 816.71      26 183.29                0.0    204 030 916.43


      Total:
      Original budget     2 246 515 000
      Additional budget    188 340 000     2 434 855 0000   2 431 939 924.90     2 915 075.10                0.1   2 261 716 576.64
                                                                  7


                                                                                             ANNEXURE A (continued)
1.2          STANDARD SUBDIVISIONS

                                                                          2003/2004                          2002/2003
                                 −                                                              Under-
                                 −                    Authorised            Actual           expenditure/        Actual
                           −   Subdivision            expenditure         expenditure          (Excess)        expenditure
                                                          N$                  N$                 N$                N$
Operational
Current expenditure: Personnel
001.       Remuneration                               1 642 805 000     1 642 788 566.62         16 433.38   1 524 967 496.71
002.       Employer’s contribution to staff’s          225 437 000       225 411 536.03          25 463.97     201 468 600.45
           pension fund
003.       Other conditions of service                  20 500 000        20 489 265.23          10 734.77      16 676 897.45
005.       Employer’s contribution to political
           office bearers’ pension fund                   -                         -                  -           119 344.45
Total                                                 1 888 742 000     1 888 689 367.88         52 632.12   1 743 232 339.06


Current expenditure: Goods and other
services
021.       Travel and subsistence expenses               14 982 311       14 893 533.04          88 777.96      14 100 898.77
022.       Materials and supplies                        67 934 310       67 930 262.75           4 047.25      60 983 338.25
023.       Transport                                     17 558 000       17 541 631.96          16 368.04      15 756 955.33
024.       Utilities                                     50 381 000       50 368 505.26          12 494.74      56 483 924.24
025.       Maintenance                                    3 815 850         3 737 028.17         78 821.83       3 162 897.69
026.       Property rental and related charges                386 000        300 329.69          85 670.31         183 610.63
027.       Other services and expenses                  166 340 749      166 336 321.36           4 427.64     155 520 392.00
Total                                                   321 398 220      321 107 612.23         290 607.77     306 192 016.91


Current expenditure: Membership fees and
subscriptions
041.       International                                      402 000          370 904.58        31 095.42         202 881.19
042.       Domestic                                            10 000               687.49        9 312.51           5 728.19
Total                                                         412 000          371 592.07        40 407.93         208 609.38


Current expenditure: Subsidies, grants
and other transfers
043.       Government organisations                      30 579 000       30 578 735.00             265.00      27 798 309.34
044.       Individuals and non-profit organisations      13 666 000       13 666 000.00                -         9 079 790.58
045.       Public and departmental enterprises and
           private industries                            54 841 000       54 840 892.30             107.70      46 894 028.56
Total                                                    99 086 000       99 085 627.30             372.70      83 772 128.48
Total: Current expenditure                            2 309 638 220     2309 254 199.48         384 020.52   2 133 405 093.83
                                                               8


                                                                                          ANNEXURE A (continued)
STANDARD SUBDIVISIONS (continued)

                                                                          2003/2004                            2002/2003
                                                                                             Under-
                                                      Authorised           Actual         expenditure/          Actual
                       Subdivision                    expenditure        expenditure        (Excess)          expenditure
                                                          N$                 N$               N$                  N$
Capital expenditure: Acquisition of assets
101.    Furniture and office equipment                   6 618 440         6 612 879.26        5 560.74         4 378 189.19
103.    Operational equipment, machinery &
        plant                                            2 084 340         2 080 132.58        4 207.42           409 490.72
Total: Capital expenditure                               8 702 780         8 693 011.84        9 768.16         4 787 679.91

Total: Operational expenditure                        2 318 341 000    2 317 947 211.32      393 788.68     2 138 192 773.74


Development
Capital expenditure: Acquisition of assets
111.    Furniture and office equipment                   8 605 000         7 932 078.88      672 921.12         8 097 490.41
113.    Operational equipment, machinery and
        plant                                               20 000                    -       20 000.00            -
115.    Feasibility studies, design and supervision      4 380 000         3 430 625.64      949 374.36         5 037 188.20
117.    Construction, renovation and
        improvements                                   103 509 000       102 630 009.06      878 990.94       110 389 124.29
Total: Development expenditure                         116 514 000       113 992 713.58    2 521 286.42       123 523 802.90

GRAND TOTAL                                           2 434 855 000    2 431 939 924.90    2 915 075.10     2 261 716 576.64



1.3            DEPARTMENT REVENUE

Revenue for the year is as follows:

                                                                             Actual       More/(Less)              Actual
                                                                            revenue            than               revenue
                      Revenue                             Estimate         2003/2004        estimated            2002/2003
                                                             N$                N$               N$                   N$
001. Class and examination fees                           12 702 000      15 727 767.34     3 025 767.34         11 432 992.71
002. Hostel fees                                          10 000 000      10 472 367.48       472 367.48          9 459 974.50
004. Lost equipment and stores                                53 000          38 948.60      (14 051.40)              5 371.82
005. Services rendered by archives and museums                60 000           6 577.73      (53 422.27)              6 414.25
006. Letting of housing                                      221 000         147 823.23      (73 176.77)            139 693.03
007. Library registration fees                                55 000          62 990.66          7 990.66            67 366.99
008. Private telephone calls                                 352 000         245 835.68     (106 164.32)            319 045.66
010. Unclaimed cheques                                     7 000 000       1 366 983.90   (5 633 016.10)          3 056 558.02
011. Miscellaneous                                         1 400 000       1 011 485.58     (388 514.42)          4 799 664.90
012. Sport stadiums                                          100 000          10 750.00      (89 250.00)              6 675.00
013. Lease: Independence Stadium                              30 000          22 800.00        (7 200.00)            27 550.00
Total                                                     31 973 000      29 114 330.20   (2 858 669.80)         29 321 306.88
                                                     9

                                                                               ANNEXURE A (continued)

1.4     NOTES TO THE FINANCIAL STATEMENTS

1.4.1   Appropriation account: Explanation of variations exceeding 2% between authorised and
        actual expenditure.

Underexpenditure

Main division 10: Sport

The underexpenditure of N$ 1 371 947.95 (4.3%) was due to the following:

During the preparation of the revised budget for the 2003/2004 financial year the Ministry was instructed in
terms of Cabinet decision No. 27th /22.10.02.002 to determine savings within the budget allocations of the
2003/2004 financial year. The Ministry of Finance was informed by means of the revised budget 2003/2004
that an amount of N$ 1 070 000.00 can be suspended on capital project No. 101075 – Outapi Special School
Construction.

The budgetary allocation for the mentioned capital project as per the main budget for the 2003/2004 financial
year was allocated under main division 10 – Sport. The suspension of the amount of N$ 1 070 000.00 was
however, according to the revised budget document compiled by the Ministry of Finance, suspended under
main division 08 – Arts and Culture.

The amount of N$ 1 070 000.00 was therefore reflected as budgeted, but not spent under main division 10 -
Sport.

1.4.2   Departmental revenue: Explanations of deviations of N$ 100 000.00 and above.

(i)     Over-estimated

008.    Private telephone calls

Strict measures in respect of private telephone calls were implemented.

(a)     Control registers were implemented whereby all private telephone calls were recorded.

(b)     Official and private telephone calls for staff members below the management cadre were made
        through the Ministry’s switchboard.

010.    Unclaimed cheques

It is very difficult to determine beforehand the amount of revenue to be received under the mentioned
revenue heading.

011.    Miscellaneous

At the end of July 2003 the Ministry of Finance implemented the Payroll Deduction Management System.
The administration of all insurance policy deductions was effected through the new system. For the period
April till June 2003 the Ministry received less commission on stop-orders from insurance companies than
was anticipated.
                                                      10


                                                                              ANNEXURE A (continued)

(ii)      Underestimated

001.      Class and examination fees

More students enrolled for the Higher International General Certificate of Senior Education (HIGCSE) and
the International General Certificate of Senior Education (IGCSE) examinations than anticipated.

002.      Hostel fees

The control over the collection of hostel fees was improved by implementing a hostel fee register at each
Government hostel.


2.        GENERAL INFORMATION

2.1       Revenue outstanding

The following revenue was outstanding as at 31 March 2004:

                                                                                     Cases
       Region/Division          Head of revenue            Amount involved         involved
                                                                 N$
Special Education           310310 002: Hostel fees               19 158.00              66
Oshikoto                    310310 002: Hostel fees                8 682.00              80
Ohangwena                   310310 002: Hostel fees               24 367.00             293
Oshana                      310310 002: Hostel fees                3 732.00              44
Omusati                     310310 002: Hostel fees                8 967.00             114
Kunene                      310310 002: Hostel fees                6 254.00              39
Erongo                      310310 002: Hostel fees                2 818.00               9
Khomas                      310310 002: Hostel fees            2 049 839.00           5 717
Karas                       310310 002: Hostel fees              107 198.05             502
Caprivi                     310310 002: Hostel fees                9 858.00              50
Total                                                          2 240 873.05           6 914

The outstanding amounts in respect of hostel fees can be ascribed to the financial inability of
parents/guardians in the communal areas and pensioners country wide, a situation which has been aggravated
by the increase of unemployment.
                                                              11



                                                                                            ANNEXURE A (continued)

  2.2       Revenue written off

  Treasury authorized the writing off of outstanding hostel fees and examination fees, amounting to
  N$ 449 171.00



         Regions/Directorate                   Head of revenue             Amount             Treasury Authorisation
                                                                              N$
   Special Education                   9 103 10 002: Hostel fees               14 395     20/8/1/1/10(DB 03) 39
   Hardap                              9 103 10 002: Hostel fees               10 439     20/15/1/1/10(DB 03) 295
   Omusati                             9 103 10 002: Hostel fees               53 306     Pending
   National Examinations               9 103 10 001: Examinations              87 321     20/5/1/1/10/92/806
   National Examinations               9 103 10 001: Examinations             101 141     Pending
   Keetmanshoop                        9 103 10 002: Hostel fees               39 363     20/8/1/1/10(DB 03) 42
   Oshana                              9 103 10 002: Hostel fees               47 346     Pending
   Erongo                              9 103 10 002: Hostel fees                  496     11/07/05/96/008
   Ohangwena                           9 103 10 002: Hostel fees               18 022     20/8/1/1/10(DB 03) 40
   Karas                               9 103 10 002: Hostel fees               58 849     20/8/1/1/10(DB 03) 41
   Oshikoto                            9 103 10 002: Hostel fees               18 493     20/8/1/1/10(DB 03) 38
   Total                                                                      449 171

  2.3       Bank accounts

  The Ministry had two separate accounts with the Commercial Bank of Namibia and one with the Standard
  Bank with a total closing positive balance of N$ 1 924 762.51 at the end of the year under review.


  2.4       Development projects

  The following were development projects of the Ministry exceeding N$ 1 million during the year:

                                                       Total                                              Total
                                     Approved       expenditure       Adjusted        Actual           expenditure        Year
                                    total cost of       as at        expenditure    expenditure           up to            of
        Nature of project             project        2003/03/31       2003/2004      2003/2004          2004/03/31      completion
                                         N$              N$              N$             N$                 N$
Upgrading and improving of basic
education facilities                 289 150 000    410 931 804.18     73 597 000   *73 511 529.10     484 443 333.28      Ongoing
Mpungu secondary school               11 400 000      5 575 119.64      5 300 000     5 226 277.36      10 801 397.00    2006/2007
Tsandi Community Learning
Development Centre                     1 460 000       584 927.48       1 100 000       1 069 965.09     1 654 892.57    2005/2006
Multipurpose Art Media/Info.
construction                          19 000 000      1 296 527.75      1 800 000       1 746 214.63     3 042 742.38      Ongoing
Etalaleko senior secondary school
construction                           3 145 000         16 466.64      1 945 000       1 560 086.98     1 576 553.62    2007/2008
Rundu Millenium primary school
construction                             830 000       299 997.04       1 610 000       1 437 976.26     1 737 973.30    2005/2006
Replacing of asbestos roofing
Ponhofi SS & Eengedjo SS               2 300 000      3 439 703.61      2 200 000     1 890 769.39       5 330 473.00    2006/2007
Swakopmund sports complex              9 850 000      4 528 901.99      4 200 000     4 165 087.58       8 693 989.57    2006/2007
Renovation of schools                 92 318 000     89 227 852.70     19 000 000    18 941 812.35     108 169 665.05      Ongoing
Ongha senior secondary school
construction                           3 205 000        285 595.86      1 100 000     1 100 000.00       1 385 595.86    2005/2006
Total                                432 658 000    516 186 896.89    111 852 000   110 649 718.74     626 836 615.63
                                                                12


                                                                                            ANNEXURE A (continued)

         *NOTE

             An amount of N$ 27 897 000 in respect of a donation was allocated by the Ministry of Finance on
             the development budget of the Ministry during the revised budget (2003/2004 fiscal year). The
             amount is calculated as follows:

         N$ 13 106 000 (Balance of donated funds end of 2002/2003)
         N$ 14 791 000 (EU and Sida budgetary support)
         N$ 27 897 000

The donation is included in the actual expenditure of N$ 73 511 529.10 for upgrading and improving basic
education facilities.

2.5      Aid/pledges/gifts/donations/assistance/free services to the Government (foreign and local
         instances)

Received by the Government

During the financial year the following donations were received from various international and local
institutions with a total value of N$ 3 707 234.42.

                                                                                                    Financial
                            Purpose, objective and                                                 implication/       Treasury
       Name of donor        condition of donation         Nature of donation     Value of goods      nature         authorization
                                                                                      N$
      Government of       To be used by different         Computers                  925 000.00   Service and     20/11/1/10
      the Peoples         schools in all Education                                                maintenance     (2003/11 SC) dd
      Republic of         regions                                                                 cost            24/4/2003
      China               No conditions
      Westphalia          To develop the soccer           Second hand sport        1 000 000.00   Maintenance     20/11/1/10
      Football and        players in Namibia              equipment                               cost            (2003/426 SC) dd
      Athletic            No conditions                                                                           6/10/2003
      Association in
      Germany

      IBIS                To be used by the               Photocopy machine           77 944.34   Maintenance     20/11/1/10
                          Ministry’s National Institute   and HP laser                            cost            (2003/450 SC) dd
                          Of Educational                  Jet printer                                             17/12/2003
                          Development
                          No conditions
      GTZ                 To be used by the office of     Printer                      4 589.08   Maintenance     20/11/1/10
                          the under secretary of                                                  cost            (2003/1025 SC) dd
                          formal education                                                                        31/3/2004
                          No conditions
      IBIS                To be used by Maria             Vehicles and                89 100.00   Maintenance     20/11/1/10
                          Mwengere culture and            office equipment                        cost            (2003/768 SC) dd
                          Environment Centre                                                                      2/3/2004
                          No conditions
      USAID               To be used by the               Vehicles                 1 597 337.00   Maintenance     20/11/1/10
                          Ministry’s HIV and AIDs                                                 cost            (2003/1052 SC) dd
                          unit (HAMU)                                                                             31/03/2004
                          No conditions

      American            To assist the learners of       Second hand school          13 264.00   None            20/11/1/10 dd
      community           Onangubu, Epundi and            supplies and clothes                                    25/11/2003
      school in England   Haikonda primary school.
                          No conditions
                          TOTAL                                                    3 707 234.42
                                                    13


                                                                                  ANNEXURE A (continued)

2.6      Assets

(i)     Equipment

The Ministry has conducted inspections at five hundred and eighteen (518) points throughout the Country.
The findings were as follows:

                                                     Value
                         Points                                                               Treasury
  Regional office      inspected      Surplus       Shortage         Losses                   approval
                                        N$            N$              N$
Okavango                   19         31 204.16       37 484.16               -    T.A. 12 Points, 4 points still
                                                                                   awaited T.A.
Oshikoto                  66                  -              -                -    Pending
Ohangwena                 95                  -              -                -    Pending
Kunene                    77                  -              -                -    T.A. 39 Points, 38 No T.A.
Khomas                    12             429.10         6 390.83              -    12 T.A.
Special Education          8                  -              -                -    T.A. 8 Points
Caprivi                  106         322 264.25       115 655.59              -    21 No T.A
                                                                                   85 points with T.A.
Otjozondjupa               31                 -       125 625.55              -    31 T.A.
Omaheke                    24                 -              -                -    24 T.A.
Karas                      80                 -              -                -    13 Points No T.A.
                                                                                   67 points with T.A.
TOTAL                    518         353 897.51       285 156.13              -



2.7. Contributions/ grants / financial aid by the Government.

During the year under review the Government contributed a total amount of N$ 83 990 627.30 to
various schools and organisations, with the necessary Treasury approvals.

2.8     Losses/Theft

2.8.1   Vehicles

A total of forty two (42) motor vehicle accidents were recorded during the financial year with an estimated
damage value of N$ 246 592.84. Twenty five (25) of these vehicles were repaired at a cost of
N$ 125 687.25. Fifteen (15) vehicles were still to be repaired. Two vehicles were damaged beyond
economical repair and were subsequently written off at a book value of N$ 112 071.50.

In comparison with the 2002/03 financial year, vehicle accidents decreased with 42%, whilst the damage cost
decreased with 72% respectively.

2.8.2   Losses through irregularities (persons employed inside and outside Government)

Burglaries/theft of Government property took place leading to losses totalling N$ 117 894.30 compared with
N$ 605 359.56 in the 2002/03 financial year. Losses thus decreased with N$ 487 465.26. Almost all the
cases involved are still pending.
                                                       14


                                                                                ANNEXURE A (continued)

2.8.3   Compensation payments (valid claims against the State)

In terms of Section 16 (1) (c) (viii), 17 (a) and (b), 21 (c) and 23 (1) (a - e) of the State Finance Act, 1991
Act 31 of 1991) Treasury granted authorization for the settlement of civil claims against the Ministry to the
total value of N$ 96 695.08




                                                                            L. KATOMA
WINDHOEK, 2004-12-30                                                        ACCOUNTING OFFICER