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Kingdom of Swaziland KINGDOM OF SWAZILAND REPORT OF THE AUDITOR GENERAL ON THE GOVERNMENT ACCOUNTS OF THE KINGDOM OF SWAZILAND FOR THE FINANCIAL YEAR ENDED 31st MARCH 2017 KINGDOM OF SWAZILAND Office of the Auditor General P.O. Box 98 MBABANE H100 Swaziland Honourable M. G. Dlamini Minister for Finance P.O. Box 443 Mbabane H100 Swaziland Your Honourable, In accordance with Section 207 (5) of the Constitution of Swaziland, I have pleasure and honour to submit my report on the Audit of the Accounts of the Government of Swaziland for the financial year ended 31st March, 2017. Yours faithfully M.E Dlamini Acting Auditor General Kingdom of Swaziland Cc: The Speaker House of Assembly in Parliament Table of Contents C E R T I F I CAT E ................................................................................................................. iii Audit Opinion on the Consolidated Financial Statements .................................................... iii Basis of Opinion .................................................................................................................... iii Unadjusted Financial Statements ............................................................................................ 1 EXECUTIVE SUMMARY ....................................................................................................... 36 PART A: GENERAL MATTERS ............................................................................................ 38 1. Submission of Treasury Annual Accounts .................................................................... 39 2. Accounting Policies ....................................................................................................... 39 3. Mandate of the Auditor General .................................................................................... 39 4. Other Audit Services ...................................................................................................... 40 5. Scope of Audit ............................................................................................................... 40 6. Reporting........................................................................................................................ 41 7. Public Finance Management Reforms ........................................................................... 41 8. Public Debt Management ............................................................................................... 43 9. Management of School Funds ....................................................................................... 43 10. Irregular Cancellation of Community Poverty Reduction Fund Debts ...................... 44 11. Operation of the Workmen’s Compensation Claims Unit ......................................... 44 PART B: OFFICE OF THE AUDITOR GENERAL ............................................................... 46 12. Introduction ................................................................................................................ 47 12.1. Vision...................................................................................................................... 47 12.2. Mission ................................................................................................................... 47 12.3. Core Values and Ethical Codes .............................................................................. 47 12.4. International Audit Assignments ............................................................................ 47 13. Budget of the Office of Auditor General ................................................................... 48 14. Office Accommodation .............................................................................................. 49 15. Staff at the Office of Auditor General ........................................................................ 50 16. Training and Career Development ............................................................................. 50 17. Independence of the Office of Auditor General ......................................................... 52 18. Technical Support ...................................................................................................... 53 PART C: PUBLIC ACCOUNTS COMMITTEE (PAC) .......................................................... 54 19. Oversight Role............................................................................................................ 55 PART D: PERFORMANCE OF MINISTRIES, DEPARTMENTS AND AGENCIES .......... 56 20. Introduction ................................................................................................................ 57 21. Recurrent Revenue Performance ................................................................................ 57 22. Recurrent Expenditure Performance .......................................................................... 59 i 23. Capital Budget Performance by Economic Sector ..................................................... 61 24. Peformance of Public Enterprises .............................................................................. 62 25. Reference Sheets Response Rate................................................................................ 65 26. Aknowledgements ...................................................................................................... 66 PART E: MINISTRIES AND DEPARTMENTS ..................................................................... 67 HEAD: 02 PARLIAMENT ................................................................................................... 68 HEAD: 03 PRIVATE AND CABINET OFFICES ............................................................... 69 HEAD: 04 TOURISM AND ENVIRONMENTAL AFFAIRS ............................................ 70 HEAD: 05 NATIONAL COMMISSIONER OF POLICE ................................................... 73 HEAD: 06 DEPUTY PRIME MINISTER’S OFFICE ......................................................... 74 HEAD: 08 DEFENCE .......................................................................................................... 88 HEAD: 09 TINKHUNDLA ADMINISTRATION AND DEVELOPMENT ...................... 91 HEAD: 10 NATURAL RESOURCES AND ENERGY .................................................... 108 HEAD: 20 AGRICULTURE .............................................................................................. 131 HEAD: 23 ECONOMIC PLANNING AND DEVELOPMENT ....................................... 134 HEAD: 24 HOUSING AND URBAN DEVELOPMENT ................................................. 135 HEAD: 29 COMMERCE, INDUSTRY AND TRADE ..................................................... 139 HEAD: 30 EDUCATION AND TRAINING ..................................................................... 148 HEAD: 34 FINANCE ......................................................................................................... 154 HEAD: 35 TREASURY AND STORES ............................................................................ 160 HEAD: 40 LABOUR AND SOCIAL SECURITY ............................................................ 191 HEAD: 41 PUBLIC SERVICE ........................................................................................... 192 HEAD: 43 INFORMATION, COMMUNICATION AND TECHNOLOGY .................... 193 HEAD: 44 ELECTIONS AND BOUNDARIES COMMISSION ...................................... 197 HEAD: 45 HEALTH .......................................................................................................... 201 HEAD: 46 JUSTICE AND CONSTITUTIONAL AFFAIRS ............................................ 202 HEAD: 47 ANTI-CORRUPTION COMMISSION ........................................................... 213 HEAD: 49 CORRECTIONAL SERVICES ........................................................................ 214 HEAD: 50 HOME AFFAIRS ............................................................................................. 218 HEAD: 53 PUBLIC WORKS AND TRANSPORT ........................................................... 244 HEAD: 56 SPORTS, CULTURE AND YOUTH AFFAIRS ............................................. 255 ii C E R T I F I CAT E Audit Opinion on the Consolidated Financial Statements Qualified Opinion I have audited the financial statements of the Government of Swaziland for the year ended 31st March 2017. These financial statements comprise the Consolidated Statement of Assets and Liabilities, Surplus and Deficit Account, Statement of Receipts and Payments, Statement of Public Debt, Statement of Contingent Liabilities, Statement of Write-Offs, Loss of Cash, Stamps, Stores and Abandoned Claims, and Losses Due to Accidents on Vehicles, and CTA Trading Account, for the year then ended, and a Summary of Significant Accounting Policies and other Explanatory Information. In my opinion, except for the effects of the matter(s) described in the Basis for Qualified Opinion section of my report, the accompanying financial statements present fairly, in all material respects the results of operations of the Government of Swaziland as at 31 March 2017, and of its financial performance and its cash flows for the year then ended in accordance with Generally Accepted financial reporting standards and the Finance Management and Audit Act, 1967, as amended in 1992. Basis of Opinion Basis for Qualified Opinion Assets and liabilities were significantly misstated in the Consolidated Statement of Assets and Liabilities due to wrong posting of debit and credit transactions to none corresponding entries, emanating from both system and human
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