Director of Municipalities and Area Council, Bakary Trawally who testified before the Commission of Inquiry on Thursday attested that the lack of preparation of financial statements by councils compelled the National Audit Office (NAO) to establish a unit to focus on area councils and municipalities.
Affirming to the Commission, Mr. Bakary Trawally emphasized that “lack of preparation of the financial statement compelled the audit office to establish a unit responsible for councils to focus on area councils.”
He stated that the lack of preparation of the financial statement could be a result of capacity and lack of proper oversight, “if it is in the law that they should prepare a financial statement at the end of every year and you are not doing it maybe there is no consequence for the action.
“Before Area Councils were not preparing financial statements even though it’s a requirement by law for us to express an opinion, the financial statement will show the balance sheet which will show the liabilities and assets, the income and the revenue and that is where the auditors will express an opinion. That is called the audit report, the management letter will detail the internal control, weaknesses, the performance issues. But whereas they are not been preparing the financial report that doesn’t prevent the National Audit Office from carrying out our audit exercise,” He gave a breakdown to the Commission.
He explained that even though councils are not preparing financial statement NAO goes there and look at the internal control weaknesses that are happening in the council, and report. He added that from around 2017 to 2018 they have not been preparing financial statements noting that they will still go and highlight those internal control issues and include them in their reports.
Mr. Trawally further highlighted that a “Financial statement shows the financial position and performance of any institution, which consists of the balance sheet which shows the assets and liabilities of an institution and income and expenditure, shows the revenue and expenditure and notes of the institution.”
He stated that out of all the councils, the Kanifing Municipal Council was the only council attempting the preparation of financial statements and was quick to add that from 2019 all councils prepared financial statements due to their constant follow-up.
“In the recent audit they are preparing financial statements whether they are credible or not that is something else that is why you see audit report and final management letter in 2017 to 2018 we audited the finances because they were making transactions, but the financial statement comes at the end of the year.
Meanwhile, the witness was shown his statement and he adopted it as part of his evidence and was tendered and admitted in evidence by Chairperson Jainaba Sambou Bah.
However, other final management letters and audit reports tendered by Counsel Yakarr Cox were admitted as evidence of the witness.
The audit report of the Kanifing Municipal Council of 1st April 2017 to 31st December 2019, dated 3rd December 2020 and the audit and final management letter KMC 31st December 2020, and 31st December 2021, dated 9th February 2023 were identified by the witness and admitted by Chairperson Jainaba Sambou Bah.
The audit report of Kuntuar Area Council for the period of 1st January to 31st December 2018, dated 11th March 2020, and the audit report for the period 31st December 2019 to 31st December 2020, dated 20th October 2022 was admitted in evidence by the chairperson Jainaba Sambou Bah.
Another audit report identified by the witness as the final management letter for the Brikama Area Council audit report for the period 1st October 2017 to 31st December 2019, dated 18th September 2019, the audit report for the period 31st 2019, dated 25th February 2021, the audit report and final management for the period 1st January 2020 to 31st December 2021, dated 26th October 2022 were admitted in evidence by chairperson Jainaba Sambou Bah.
Mansakonko Area Council management letter for the period 2017 and 2018, and the audit report for the period 1st January 2019 to 31st December 2019, dated 8th October 2021 were identified by the witness they were tendered by counsel and admitted in evidence by Chairperson Jainaba Bah Sambou.
Janjanbureh Area Council 1st January 2019 to 31st December financial year and audit report and final management letter 1st January 2019 to 31st December 2020 was also admitted in evidence by chairperson Jainaba Bah Sambou.
Banjul City Council’s final management letter and audit report for the year 31st December 2019 and 31st December 2020 are admitted in evidence.
Basse Area Council’s final management letter 31st December 2019 and audit report and final management letter for 2017 and 2018 were admitted in evidence.
Kerewan Area Council final management letter and audit report 2018 and 2019 and the audit report and final management letter 31st December 2020 and 31st December 2021.
The commission will continue hearing on Monday at 10 am with the same witness.
