Bulawayo, Mat’land councils fail financial reporting test

BULAWAYO City Council is among the few local authorities yet to submit ”transitional financial statements” to the Ministry of Local Government and Public Works, which limits the city’s chances to access various loan facilities for development.

Local authorities that failed to meet the May submission deadline cited various reasons for the delays including the shortage of staff and some key personnel falling sick.

Chief director for finance and administration in the ministry, Mr Emmanuel Ngwarati, yesterday told delegates at the ongoing Urban Development Corporation (udcorp) 2024 International Public Sector Accounting Standards (IPSAS) and Tax Matters workshop in Bulawayo that the city and several other local authorities in Matabeleland South had performed poorly. Nationwide, there was a 72 percent submission rate by the May 31 deadline.

Consequently, all local authorities have been granted an extension until July 31 to submit their outstanding financial statements.

“Government embarked on reforms on financial management and financial reporting and by 2025 all local authorities should be compliant with International Public Sector Accounting Standards,” said Mr Ngwarati.
“So far, we are impressed with the transitional financial statements, which are supposed to be submitted by the end of May this year.

“About 72 percent of local authorities complied and submitted on time and we have a small percentage, which has not submitted. We hope by end of July they will have submitted,” he said.

“Bulawayo unfortunately, our big city did not submit. In Matabeleland North, Nkayi RDC did not submit citing a vacant finance director post.
“Hwange Local Board did not submit as it had issues but we are glad that Victoria Falls, Lupane, Bubi, Mguza managed to submit.”

In Matabeleland South, Gwanda Municipality, Gwanda RDC, Matopo, Mangwe, Bulilima and Insiza also did not submit.
“Gwanda RDC said it is still re-evaluating assets and Bulilima said their finance director was not feeling well,” said Mr Ngwarati.
He said the ministry’s task was to review the statements together with the Ministry of Finance and the Auditor-

General and make sure that by the end of this year, all the transitional statements have been submitted.
“This is to make sure that by 2025 we are all compliant. This will increase transparency and accountability,” said Mr Ngwarati.

He said local authorities that would have not submit statements as required by the law, will face challenges in accessing various loans.
“Each local authority that requires a loan gets permission from the Government, so we need to know whether there have been financial audits and agreed that the books are in order before availing loans,” said Mr Ngwarati.

He said the ministry stands ready to capacitate local authorities on the financial reforms.
Udcorp chief executive officer, Mr Joey Shumbamhini, said they are assisting the Government in capacitating local authorities in the new accounting system. The directive is for all local authorities to adopt IPSAS and the transition needs us to capacitate local authorities.

“We have a team of audit experts that are ready to help local authorities in terms of technicalities of the new accounting standards.

“The new accounting standards will improve accountability for local authorities,” he said.
He noted that Udcorp is currently implementing a transformation strategy approved by the board last year in April. Udcorp is a parastatal under the Ministry of Local Government, Public Works and National Housing and is responsible for urban development.