05 Nov 2021

The Annual Statement of Accounts (ASA) released by the Auditor General shows that the overall fiscal balance for the 2019/20 financial year was a deficit of P11.1 billion as the economy experienced a decline in total revenues and grants while spending performed as expected.

According to the statement released on Tuesday, total revenues and grants decreased by P6.41 billion or 10.56 per cent from a revised budget of P60.71 billion compared to the actual amount of P54.3 billion.

The auditor general, Ms Pulane Letebele stated that Customs and Excise, Value Added Tax (VAT) and Bank of Botswana revenue performed satisfactorily while mineral and non-mineral revenue underperformed against their respective budgets.

She said 90 per cent of the total expenditure was used while only 80 per cent of the P17.03 billion development funds was utilised.

The country experienced a budget deficit of P8.88 billion the previous financial year (2018/19).

The financial statement from the auditor general shows that most of the income was from tax revenue (P37.956 billion) with P16.295 billion coming from non-tax revenue and P47.33 bilion from grants.

Most of the tax revenue came from customs (P13.975 billion) and non-mineral tax (P10.8 billion).

Meanwhile, Ms Letebele expressed concern about government accounts as some were not reconciled and others contained information as far as 2005.

In one of the statements, the special funds showed a figure of P3 443 470 124, which she said was misstated.

This was because a payment of P900 566 097 to the liquidator of BCL from the special service funds purported to be a loan was included under the statement although there was no evidence for the investment.

She said the National Petroleum Fund (NPF) and Alcohol Levy accounts were not availed for audit.

Payments amounting to P2 111 451 304 in the bank statement and P2 185 933 025 in the general ledger have not been reconciled.

Ms Letebele also stated that the balances of cash held by treasury cashiers at the closure of business on March 31, 2020, as authenticated by the boards of survey accounts had shown significant discrepancies when reconciled with the general ledger balances. Furthermore, the bank reconciliation statements for call and current accounts maintained by the treasury cashiers were not availed for verification.

The reconciliation of the general ledger balances and the certified cash book balances submitted by various Botswana Diplomatic Missions revealed that some of the reconciling items were from previous years.

Ms Letebele said an account in the general ledger had a balance of P547 080 383, whereas a balance per bank statement stood at P480 117 291.

She said the difference of P66 963 292 was for unreconciled receipts and payments dating as far back as 2012. ENDS