REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF ACCOUNTS OF LOCAL AUTHORITIES FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER 2018 AND 2019 REPUBLIC OF ZAMBIA REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF ACCOUNTS OF LOCAL AUTHORITIES FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER 2018 AND 2019 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 PREFACE It is my honour and privilege to submit the Report of the Auditor General on the Audit of Accounts of Local Authorities (Councils) for the financial years ended 31st December 2018 and 2019 in accordance with the Provisions of Article 250 of the Constitution of Zambia (Amendment) Act No. 2 of 2016, the Local Government (Amendment) Act No. No. 12 of 2014, the Local Government Act No. 2 of 2019, the Constituency Development Fund Act No. 11 of 2018 and the Public Finance Management Act No.1 of 2018. The main function of my Office is to audit the accounts of State organs, State institutions, Provincial Administration, Local Authorities and institutions financed from public funds. In this regard, this report covers selected audited local authorities. I conducted audits on the local authorities to examine whether the funds appropriated by Parliament and internally generated had been accounted for. 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. The audit findings mentioned in this Report are those which were not resolved during the audit process and those which were highlighted in the previous reports but had not been addressed at the time of producing this report. Dr. Dick Chellah Sichembe AUDITOR GENERAL Table of Contents Executive Summary ................................................................................................................................. i PART I PREAMBLE ..................................................................................................................... 1-5 PART II PARAGRAPHS .......................................................................................................... 6 - 316 1 Chama Town Council ..................................................................................................................... 6 2 Chembe Town Council ................................................................................................................. 12 3 Chienge Town Council ................................................................................................................. 14 4 Chilanga Town Council ................................................................................................................ 19 5 Chililabombwe Municipal Council ............................................................................................... 23 6 Chingola Municipal Council ......................................................................................................... 26 7 Chinsali Municipal Council .......................................................................................................... 29 8 Chipata City Council..................................................................................................................... 35 9 Chirundu Town Council ............................................................................................................... 39 10 Chitambo Town Council ............................................................................................................... 42 11 Choma Municipal Council ............................................................................................................ 45 12 Chongwe Municipal Council ........................................................................................................ 48 13 Isoka Town Council ...................................................................................................................... 57 14 Kabompo Town Council ............................................................................................................... 62 15 Kabwe Municipal Council ............................................................................................................ 66 16 Kalomo Town Council .................................................................................................................. 73 17 Kalumbila Town Council .............................................................................................................. 82 18 Kanchibiya Town Council ............................................................................................................ 84 19 Kapiri Mposhi Town Council ....................................................................................................... 86 20 Kasama Municipal Council ........................................................................................................... 89 21 Katete Town Council .................................................................................................................... 94 22 Kawambwa Town Council ......................................................................................................... 100 23 Kitwe City Council ..................................................................................................................... 104 24 Livingstone City Council ............................................................................................................ 112 25 Luampa Town Council ............................................................................................................... 115 26 Luano Town Council .................................................................................................................. 117 27 Luanshya Municipal Council ...................................................................................................... 122 28 Lusaka City Council ................................................................................................................... 133 29 Luwingu Town Council .............................................................................................................. 145 30 Mafinga Town Council ............................................................................................................... 150 31 Mambwe Town Council ............................................................................................................. 156 32 Mansa Municipal Council ........................................................................................................... 163 33 Manyinga Town Council ............................................................................................................ 168 34 Masaiti Town Council................................................................................................................. 173 35 Mazabuka Municipal Council ..................................................................................................... 179 36 Mbala Municipal Council ........................................................................................................... 182 37 Milenge Town Council ............................................................................................................... 187 38 Mongu Municipal Council .......................................................................................................... 191 39 Monze Town Council ................................................................................................................. 200 40 Mpika Town Council .................................................................................................................. 207 41 Mpongwe Town Council ............................................................................................................ 214 42 Mporokoso Town Council .......................................................................................................... 217 43 Mpulungu Town Council ............................................................................................................ 221 44 Mufumbwe Town Council .......................................................................................................... 228 45 Mumbwa Town Council ............................................................................................................. 233 46 Mungwi Town Council ............................................................................................................... 237 47 Mwinilunga Town Council ......................................................................................................... 242 48 Nakonde Town Council .............................................................................................................. 247 49 Nchelenge Town Council ........................................................................................................... 251 50 Ndola City Council ..................................................................................................................... 256 51 Petauke Town Council ...............................................................................................................