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Auditor Generals Main Report for 2018

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Auditor Generals Main Report for 2018 REPUBLIC OF ZAMBIA REPORT of the AUDITOR GENERAL ON THE ACCOUNTS OF THE REPUBLIC for the Financial Year Ended 31st December 2018 OFFICE OF THE AUDITOR GENERAL VISION: A dynamic audit institution that promotes transparency, accountability and prudent management of public resources. MISSION: To independently and objectively provide quality auditing services in order to assure our stakeholders that public resources are being used for national development and wellbeing of citizens. CORE VALUES: Integrity Professionalism Objectivity Teamwork Confidentiality Excellence Innovation Respect i Contents Preface ....................................................................................................................................... iii Executive Summary ........................................................................................................................................ iv Programme: 2011 Tax Revenue – Zambia Revenue Authority ................................................................ 12 Programme: 2021 Non-Tax Revenue – Road Transport and Safety Agency ........................................... 23 Programmes: 121 Fines - The Judiciary ................................................................................................... 31 Programme: 122 Licences - Ministry of Agriculture ............................................................................. 34 Programmes: 123 Fees - Ministry of Lands and Natural Resources......................................................... 36 Programme: 123 Fees - Ministry of Commerce, Trade and Industry ..................................................... 38 Programmes: 123 Fees - Ministry of Labour and Social Security ............................................................ 40 Activities: 122071 Zambia Environmental Management Agency (ZEMA) Collections ........................... 41 Programmes: 122 Licences - Ministry of Energy ..................................................................................... 44 Programme: 129 Other Revenue - Ministry of Works and Supply ...................................................... 46 Programmes: 122 Licences - Ministry of Tourism and Arts ..................................................................... 48 Programmes: 123 Fees – Passport Office .................................................................................................. 51 Programme: 2021 Non-Tax Revenues – Department of Immigration ....................................................... 53 Programmes: 121 Fines - Zambia Police Service ...................................................................................... 54 Head: 15 Ministry of Home Affairs ............................................................................................. 57 Head: 15/02 Ministry of Home Affairs – Zambia Correctional Service ............................................ 58 Head: 20 Ministry of Local Government ..................................................................................... 62 Head: 31 Ministry of Justice......................................................................................................... 65 Head: 45 Ministry of Community Development and Social Services .......................................... 68 Head: 45/03 Ministry of Community Development and Social Services – Community Development Department .............................................................................................. 68 Head: 46/01 Ministry of Health – Headquarters ................................................................................ 71 Head: 46 Ministry of Health ......................................................................................................... 72 Head: 46 Ministry of Health ......................................................................................................... 75 Head: 65 Ministry of Youth, Sport and Child Development ........................................................ 84 Head: 77/01 Ministry of Defence Headquarters ................................................................................ 87 Head: 80 Ministry of General Education ...................................................................................... 94 Head: 80 Ministry of General Education .................................................................................... 104 Head: 80 Ministry of General Education .................................................................................... 120 Head: 80 Ministry of General Education – National Implementation Framework (NIF III) ...... 128 Head: 85 Ministry of Lands and Natural Resources ................................................................... 130 Head: 89 Ministry of Agriculture ............................................................................................... 132 Head: 89/34 Ministry of Agriculture – Agricultural Training Institutions Zambia College of Agriculture (Monze) – Southern Province .................................................................. 138 Head: 90/01 Office of The President – Lusaka Province ................................................................ 140 Head: 91/01 Office of the President - Copperbelt Province ............................................................ 146 Head: 91/01 Office of the President – Copperbelt Province ........................................................... 149 Head: 92 Office of the President – Central Province ................................................................. 152 Head: 94 Office of the President – Western Province ................................................................ 155 Head: 95 Office of the President-Eastern Province .................................................................... 158 Head: 96 Office of the President - Luapula Province ................................................................. 159 Head: 96 Office of the President - Luapula Province ................................................................. 160 Head: 98 Office of the President - Southern Province................................................................ 164 Head: 98 Office of the President - Southern Province................................................................ 167 Recommendations ..................................................................................................................................... 169 Acknowledgements ..................................................................................................................................... 171 Recommendations of the Public Accounts Committee either not Implemented or partially Implemented ... 171 Appendix 1 – Summary or the Status of the Unresolved Issues as at 31st December 2018 ........................... 172 Appendix 2 - Glossary of Terms .................................................................................................................... 234 ii Preface The Republican Constitution gives the Auditor General the mandate to audit all public finances. It is now my honour and privilege to submit the Report of the Auditor General on the Accounts of the Republic of Zambia for the financial year ended 31st December 2018 in accordance with Article 212 of the Constitution. The results of my audit which covered areas that cut across all the five (5) Developmental Strategic Areas of the Seventh National Development Plan are highlighted in this Report and include failure to follow legislation, Government regulations and instructions, weaknesses in internal controls resulting in failure to collect or bank revenues on time, failure to account for funds and delays in implementing projects among others. The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs) which are the standards relevant for the audit of Public Sector entities. My Office has issued an opinion on the Consolidated Financial Statement of Government in line with Article 211 of the Constitution of Zambia (Amendment) No. 2 of 2016. The issues mentioned in this Report are those which could not be resolved during the audit process and those which were highlighted in the previous reports but had not been rectified at the time of producing this report. Davison K. Mendamenda ACTING AUDITOR GENERAL iii Executive Summary This Report has been produced in accordance with Article 250 of the Constitution (Amendment) Act No. 2 of 2016 of the Republic of Zambia, the Public Finance Management Act No. 1 of 2018 and Public Audit Act No. 13 of 1994. During the audit process, there were various levels at which the Office interacted and communicated with Controlling Officers whose accounts were audited. The purpose of this interaction was to provide an opportunity for the Controlling Officers to clarify and take corrective action on the findings of the audits. The Report contains fifty-four (54) paragraphs consisting of forty-one (41) paragraphs on audit matters and thirteen (13) paragraphs on other matters. The forty-one (41) paragraphs on audit matters reflect issues that could not be resolved during the audit process and whose corrective actions were not undertaken as at 20th September 2019. In addition, the Report contains audit recommendations which are aimed at addressing various issues of concern observed during the audit process. The table below shows a comparative summary of some of the issues contained in the report. 2018 2017 2016 2015 Details K K K K Unaccounted for Revenue 143,179 873,649 3,700,509 558,449 Unaccounted for
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