The Sunday News
Leonard Ncube, Victoria Falls Reporter
LOCAL authorities that fail to submit audited reports to the Auditor General risk having their annual budgets turned down by Government, it has been established.
Urban and rural district councils start the process of formulating their annual budgets every third quarter with end of November set as the deadline for submission. Government is also concerned that most of the local authorities fail to meet the deadline as only 31 out of 92 submitted the financial plan before closing date last year.
Of grave concern is the fact at the end of 2020, only 46 local authorities were up to date with regards to audited accounts.
A majority have outstanding submissions dating back to 2017, raising concern about opening up councils to corruption and abuse of finances as well as overcharging of ratepayers as budgets are not based on actual performance of financial plans on the ground.
According to data at seen by Sunday News from the Ministry of Local Government and Public Works, 20 local authorities had not submitted audited accounts for 2018 while seven were still to submit the 2017 statements.
Hwange Local Board, Kusile Rural District Council in Lupane, Nyaminyami Rural District Council in Kariba reportedly had a backlog dating back to 2015.
However, the same councils were formulating annual budgets and collecting bills and rates despite not accounting to Government, which the Ministry of Local Government and Public Works has said it is improper.
Besides failing to submit audited reports, most local authorities have over the years been at loggerheads with ratepayers over budgets.
Most would submit substandard budget statements showing deficit and no clear billing system and Government would turn them down.
The Victoria Falls City Council budget for 2020 was approved in June 2021 after the Minister of Local Government and Public Works Cde July Moyo initially turned it down because it had a deficit.
The local authority’s supplementary budget which was crafted following complaints by residents that their submissions were ignored is yet to be approved at a time when the process of crafting the 2022 budget is supposed to start.
To capacitate local authorities to be able to craft proper budgets and to meet requirements, the Government came up with a deliberate programme to train councils on the budget formulation process.
A team from the ministry was in Victoria Falls recently for a two-day training workshop which was attended by council management, councillors and stakeholders.
The Ministry’s financial advisor Mr Tatenda Mandeya said failure by local authorities to provide quarterly reports is a major challenge.
“The Minister has said we should go out and find the root cause for not submitting audited reports. We have gone to some and those we have visited have improved. No local authority is going to have a budget approved if they don’t have an updated audited results statement,” said Mr Mandeya.
This will mean loss of revenue for local authorities because without a budget, a local authority is not allowed to bill ratepayers and collect rates.
Bills are the biggest cash cow for local authorities contributing about 38 percent, followed by rates that make up to 30 percent, fees and licences 15 percent and grants giving 12 percent.
The Ministry’s principal administration officer Ms Anna Takaindisa said councils are required to have quarterly budget review statements regardless of whether the budget is performing well or not.
This is meant to update ratepayers on the progress being made in the council as continued engagement of residents is a prerequisite for local authorities, she said. -@ncubeleon
