29 September 2020
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Wednesday, 25 March 2020 13:29

All Councils have submitted financial statements

Written by  Tione Andsen

Lilongwe, March 25, 2020:National Local Government Finance Committee (NLGFC) has successfully ensured that preparation and submission of 2017-18 and 2018-19 financial statements for 35 Local Councils are submitted to National Audit Office (NAO) for audit.

The remarks were made Monday by Executive Director of NLGFC, Alifeyo Banda during the quarterly NLGFC staff review meeting held in Lilongwe.

He said the submission of the financial statements from all the 35 Councils were an exceptional achievement as it was the first time this had happened.

The Executive Director has since assured the Government, all Malawians and Development Partners that the NLGFC would ensure that all Local Councils in the country are audited regularly by the NAO.

Banda said Controlling Officers and other officers in Local Councils found to be on the wrong side of the financial laws would be held to account and taken to task for any deviance.

Director of Finance for the NLGFC, Kondwani Santhe said the submissions are in line with the financial legal framework provisions of the Public Finance Management Act, (2003), the Public Audit Act, (2003), and Local Government Act, (1998).

He said the financial legal framework provides that Councils are to keep proper accounting records, which discloses with reasonable accuracy at any time the financial position of the Council and ensures that the financial statements are prepared and submitted for audit at least within three months after end of the financial year.

The submissions come following increased focus by the NLGFC to enforce compliance by Councils to the expected legal mandate following years in the past where other councils had not prepared financial statements, accruing between 1-5 years.

NLGFC is mandated by the Constitution (Sec. 149) to facilitate fiscal decentralization, development, financial management and compliance through resource mobilization, allocation, disbursement and accounting in Local Councils.

The National Audit Office has confirmed receipt of the financial statements and had since commenced the audits of the Councils.