By: Kebba AF Touray
The Public Enterprise Committee of the National Assembly (PEC) has recommended the Board and Management of the National Water and Electricity Company (NAWEC), to investigate the difference noted by the auditors, in the financial transactions of the company amounting to one hundred and ninety-nine million Dalasi (D199 million). PEC made this and other recommendations in its report on their engagement with the National Audit Office and institutions under their purview, tabled before the plenary by the Chairperson of the Committee Hon. Lamin J. Sanneh, the Member for Brikama South.
Tabling the report on Thursday, 7 March 2024, Hon. Sanneh explained that during the auditing process of NAWEC on revenue (electricity sales), they developed an expectation by obtaining the monthly sales from the billing system multiplied by the approved tariff. He said this is done by adding sales from cash power revenue and deducting NAWEC’s consumption, in order to arrive at their expectation. He said the auditors also encountered limitations in testing the completeness and accuracy of revenue as the meter logbook was not provided and supporting evidence or revenue recorded for the AGIB NAWEC service connection amounting to D10,651,986 was not provided for the review by the auditors. He said a difference of D199 million was noted between their (auditors) expectation and the amount recorded in the general ledger.
The committee recommended the board to ensure that the difference noted between expected revenue and the general ledger amounts, is investigated, reconciled and adjusted accordingly, and said PEC also recommended for the board to ensure a detailed investigation on the root causes of revenue understatement.
On cost of sales, he also reported that the auditors also noted an overstatement of D4.8 million for a transaction posted into the cost of sales account. He said the invoice recorded an amount of D534,000 (Five Hundred and Thirty-Four Thousand Dalasi) whilst D5,384,000 (Five Million, Three Hundred and Eighty-Four Thousand Dalasi) was posted into the general ledger.
“The auditors were not provided with supporting documents for some transactions totaling D29 million. From samples, the auditors further noted journal postings of D134.8 million in cost of sales in the general ledger was not supported,” he said.
He also reported that the committee noted with concern that an imprest amount of D960,000 relating to unretired imprest was written off in the incomes statement.
On overstatement on cost of sales, he said: “The committee recommended the reason for the overstatement of D4.8 million be investigated and details furnished to the Auditor General and the committee for confirmation.”
He said the committee recommended that management ensure a full refund of all un-retired imprest by holders.
