Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697706042705.pdf (Zimbabwe)
REPORT of the Auditor-General for the FINANCIAL YEAR ENDED DECEMBER 31, 2019 ON LOCAL AUTHORITIES _________________________________________ Presented to Parliament of Zimbabwe: 2021 _________________________________________ the Auditor-General of Office Zimbabwe 5th Floor, Burroughs House 48 George Silundika Avenue Harare, Zimbabwe.

of The Hon.

Professor M. Ncube Minister of Finance and Economic Development New Government Complex Samora Machel Avenue Harare.
Dear Sir, I hereby submit my report on the audit of Local Authorities in terms of Section 309(2) of the Constitution of Zimbabwe read together with Section 10(1) of the Audit Office Act [Chapter 22:18], for the year ended December 31, 2019.

Yours faithfully, M. CHIRI (MRS), AUDITOR-GENERAL.

HARARE March 29, 2021.

OAG Vision To be the Center of Excellence in the provision of Auditing Services.
OAG Mission To examine, audit and report to Parliament on the management of public resources of Zimbabwe through committed, motivated, customer focused and well trained staff with the aim of improving accountability and good corporate governance.
TABLE OF CONTENTS LIST OF ACRONYMS .................................................................................................................. iii DEFINITION OF TERMS ............................................................................................................. iv PREAMBLE ..................................................................................................................................... v EXECUTIVE SUMMARY ........................................................................................................... vii CITY COUNCILS ........................................................................................................................... 1 GWERU CITY COUNCIL 2015 ....................................................................................................... 2 MASVINGO CITY COUNCIL 2016 ................................................................................................ 4 MASVINGO CITY COUNCIL 2017 AND 2018 ............................................................................. 6 MUTARE CITY COUNCIL 2015 .................................................................................................... 12 MUNICIPALITIES ........................................................................................................................ 18 BINDURA MUNICIPALITY 2019 .................................................................................................. 19 CHEGUTU MUNICIPALITY 2017 ................................................................................................. 24 CHINHOYI MUNICIPALITY 2018 ................................................................................................ 26 CHINHOYI MUNICIPALITY 2019 ................................................................................................ 31 CHITUNGWIZA MUNICIPALITY 2016 ....................................................................................... 34 MARONDERA MUNICIPALITY 2016 .......................................................................................... 39 TOWN COUNCILS ........................................................................................................................ 42 CHIREDZI TOWN COUNCIL 2016 ............................................................................................... 43 SHURUGWI TOWN COUNCIL 2015 AND 2016 .......................................................................... 48 ZVISHAVANE TOWN DISTRICT COUNCIL 2017 ..................................................................... 51 LOCAL BOARDS ........................................................................................................................... 53 RUWA LOCAL BOARD 2018 ........................................................................................................ 54 RURAL DISTRICT COUNCILS .................................................................................................. 56 BINDURA RURAL DISTRICT COUNCIL 2018 ........................................................................... 57 BINGA RURAL DISTRICT COUNCIL 2019 ................................................................................. 58 BUBI RURAL DISTRICT COUNCIL 2016 .................................................................................... 60 CHIRUMANZU RURAL DISTRICT COUNCIL 2018 .................................................................. 63 HURUNGWE RURAL DISTRICT COUNCIL 2019 ...................................................................... 66 MANGWE RURAL DISTRICT COUNCIL 2017 ........................................................................... 67 MATOBO RURAL DISTRICT COUNCIL 2017 ............................................................................ 69 MUZARABANI RURAL DISTRICT COUNCIL 2018 .................................................................. 70 PFURA RURAL DISTRICT COUNCIL 2018 ................................................................................ 71 i TONGOGARA RURAL DISTRICT COUNCIL 2018 .................................................................... 73 ZAKA RURAL DISTRICT COUNCIL 2017 .................................................................................. 75 APPENDIX A .................................................................................................................................. 76 APPENDIX B .................................................................................................................................. 78 ii LIST OF ACRONYMS 1.
BIQ – Business Intelligence Quotient 2.

CEO- Chief Executive Officer 3.

CSC – Cold Storage Commission 4.

EIA – Environmental Impact Assessment 5.

EMA- Environmental Management Agency 6.

IPSAS- International Public Sector Accounting Standards 7.

LAPF- Local Authorities Pension Fund 8.

ML – Mega litres 9.

NEC- National Employment Council 10.

NSSA- National Social Security Authority 11.

OAG- Office of the Auditor-General 12.

PAYE- Pay As You Earn 13.

PFMA – Public Finance Management Act 14.


PSIP- Public Sector Investment Programme 15.

SDL- Standards Development Levy 16.

SLB- Service Level Benchmarking 17.

SPB- State Procurement Board 18.

UCPF- Urban Councils Pension Fund 19.

UNICEF- United Nations Children Education Fund 20.

VAT- Value Added Tax 21.

ZIMDEF- Zimbabwe Manpower Development Fund 22.

ZIMRA- Zimbabwe Revenue Authority 23.

ZINARA- Zimbabwe National Roads Agency 24.

ZINWA- Zimbabwe National Water Authority 25.


ZRDCWU- Zimbabwe Rural District Council Workers’ Union 26.

ZUCWU – Zimbabwe Urban Councils Workers Union 27.

UDCORP- Urban Development Corporation iii DEFINITION OF TERMS “Local Authority” means a municipal council, town council and local board established in terms of the Urban Councils Act [Chapter 29:15] or Rural District Council established in terms of the Rural District Councils Act [Chapter 29:13].
Local Authorities are established with the overall mandate of governing respective Council areas.

Local authorities are categorised into two groups which are: A) The Rural District Councils and B) Urban Councils, in which a Local Authority can either be classified as a: i) City Council, ii) Municipality, iii) Town Council and iv) Local Board.

iv PREAMBLE Introduction Following the end of the 2019 financial year for public entities, I take the opportunity to report my audit findings.
The primary purpose of financial statements is to provide relevant and reliable information to users about a reporting entity’s financial position.

In the public sector, the users of financial statements include ministers, parliament, development partners and the public at large.
The objectives of a financial statements audit in the public sector are often broader than expressing an opinion whether the financial statements have been prepared, in all material respects, in accordance with the applicable financial reporting framework but also address service delivery issues.

Mandate My Office is mandated by the Constitution of Zimbabwe as amplified in the Audit Office Act [Chapter 22:18] to report to Parliament my findings on the examination of accounts of all public entities.
In fulfilling this mandate, I do contract from time to time, some of the audits to registered public auditors in terms of the Public Accountants and Auditors Act [Chapter 27:12] as stated in Section 9 of the Audit Office Act [Chapter 22:18].

Accordingly, I have included audit findings from such auditors in this report.

Audit approach I conducted my audits in accordance with the International Standards on Supreme Audit Institutions (ISSAIs) and the International Standards on Auditing (ISAs).
These Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

My audit approach was designed to enable me to express an opinion on the public entities’ financial statements.

All aspects of the entities’ activities and procedures may not have been examined.

I consider maintenance of adequate internal controls to be the responsibility of management.
My work cannot therefore, be expected to identify all weaknesses in the systems and procedures, which a special investigation directed at those areas might reveal.

As to the possibility of fraud, I plan my audits to have a reasonable expectation of its disclosure if the potential effects of the fraud would be material in the financial statements.
However, there are many kinds of fraudulent activities, particularly those involving defalcation, forgery, collusion and management override of controls, which would be unreasonable to expect the normal audit to uncover.

The principal objective of my audit procedures is to enable me to express an opinion on the truth and fairness of the financial statements as a whole.

An audit opinion is based on the concept of reasonable assurance.
It is not a guarantee that the financial statements are free of misstatements.

v Financial reporting framework in Zimbabwe prescribed The Public Accountants and Auditors Board (PAAB), the regulator of the Accountancy International Public Sector Accounting Profession Standards(IPSAS) for use in Zimbabwe on the 1st of March 2019 through Statutory Instrument 41 of 2019.
IPSAS have been adopted by the Government of Zimbabwe as the financial reporting framework for Local Authorities and all should have fully implemented the standards by the end of the transitionary period on December 31, 2025. the Report Structure The report outlines material audit findings noted during the audits of the financial statements of Local Authorities.
Also included under each audited client are possible risks / implications associated with the audit findings, audit recommendations, management responses in respect of the findings, audit comments to management responses where necessary.

Although some of the issues identified are common within the audited entities, the majority of the findings are not the same due to the nature, uniqueness and varying mandates of the entities.
vi EXECUTIVE SUMMARY The 2020 audit period is a unique year because of the unprecedented COVID-19 pandemic.

The COVID-19 is not only a global pandemic and public health crisis but has also severely affected national economies and financial markets.

Significant reductions in income, a rise in unemployment, and disruptions in the transportation, service delivery and manufacturing industries are among the consequences of the disease, of which Zimbabwe was not spared.
The consequences of the Covid-19 pandemic on financial reporting and audit engagements are complex and have resulted in challenges for management, those charged with governance and auditors.

There is an unprecedented level of uncertainty about the economy, future earnings and many other inputs that represent fundamental elements of financial reporting.
Both preparers and auditors were affected by restrictions on travel and requirements to stay at home, which presented practical challenges to the audit engagements and the ability to meet the June 30 reporting deadline.

Many public entities are faced with demand and operational uncertainties, as such completion of procedures necessary to issue historical financial statements may have been a low priority as observed by the number of audits performed to completion during this period.
The effects are likely to be a big dent in the spectra of accountability and transparency as COVID-19 is likely to regress the progress that had been made over the years in bringing most public entities up to date in their financial reporting.

At the time of producing this report, in relation to the 2019 financial year, forty-three (43) audits were in progress and thirty-eight (38) local authorities had not yet submitted financial statements for audit.
Highlights of findings Governance and service delivery issues have continued to dominate my report for Local Authorities.

Out of fifty-nine (59) issues I am reporting; thirty-four (34) relate to the area of governance while (25) twenty-five relate to revenue collection, employment costs, procurement and service delivery.
Governance issues reported in the current year are in respect of Councils operating without key policy documents, failure to review and approve payroll prior to processing, absence of control over contracted out services, improper management of Council assets, development of and without approval of the responsible Minister and other issues on ineffective internal control systems.
Highlights of reportable issues are detailed below: Some Gweru City Councillors were yet to pay for the stands they had been allocated / acquired at concessionary rates with a condition to pay in full within their term of office.

However, I noted that their term of office had expired.

Gweru City Council did not have supporting documents as a record of stands sold.
vii Masvingo City Council was producing 30 mega litres of treated water per day and the current demand for the Council was 48 mega litres per day.

In addition, there were instances of sewer spillages in areas like Old Mucheke suburbs and this flowed into the near-by river streams, which feed into the Council’s main source of water (Lake Mutirikwi).

Mutare City Council did not bank intact all cash collected.
In addition, the City Council was unable to provide a breakdown of $1.1 million written off as part of a discount promotion.

Mutare City Council had one ambulance servicing the whole city.

Bindura Municipality’s suburbs such as Brockdale, Woodbrooke, Greenhill, Cleverhill and Chiwaridzo 3 (Garikayi) have not been accessing tap water since their establishment.

The Council was also using a decommissioned mine as a dumpsite.
Bindura Municipality paid US$90 850 towards the acquisition of a front-end-loader in December 2018 but the piece of equipment had not been delivered at the time of audit in October 2020.

The Municipality also had billed accounts with no valid names, some of which had been created by unknown system users.

In addition, the Municipality had no functioning fire tenders.

Chegutu City Council and Chiredzi town Council had 80% and over 50% respectively of its residents with non-functional water meters.
Chinhoyi Municipality lost 62.5% of its processed water, on the other hand, Shackleton and Alaska areas had 1 694 households without access to portable water whilst Rujeko suburb had 365 out of its 380 households without water accounts.

In addition, the Municipality’s traffic management system agent was not consistently remitting monthly dues despite collecting cash on a daily basis.

Marondera Municipality was only able to provide 13.5 mega litres against a daily demand of 27 mega litres.
Marondera Municipality did not have a list of leased/rented properties.

Some Councils such as Gweru, Chinhoyi and Chitungwiza did not have risk management policies.

Ruwa local board acquired five (5) tablet phones in 2018 but were yet to be delivered as at the time of audit in December 2020.

Conclusion The audit findings warrant the attention of management and those charged with governance.

The audit revealed that most weaknesses related to governance and service delivery issues.
There is need for continuous improvement in accountability and transparency aspects in Local Authorities.

Acknowledgement My special tribute goes to the audit firms, UDCORP and our valued clients who made it possible for me to submit my report for the year under review.

I also extend my appreciation to our development partners for their unwavering financial and technical support and to our printers for viii printing the report.
Finally, I wish to extend my sincere appreciation to my management and staff for their continued commitment and dedication to duty.

ix CITY COUNCILS 1 GWERU CITY COUNCIL 2015 I have audited the financial statements of Gweru City Council for the year ended December 31, 2015.

The following are material issues that were noted during the audit.
1.0 GOVERNANCE ISSUES 1.1 Fundamental policies Finding The Council was operating without some key policies such as; the risk management policy, recruitment and selection policy, housing policy and procedure manual for central stores.

Risk/ Implication Inconsistences in the handling of operational issues.

Absence of guidelines for managing Council operations.

Recommendation Council should draft and implement procedure manuals and policies.
Management response Council is working flat out to have these policies in place.

Quotations are being sought to rope in an expert to walk through Council in establishing a risk policy and help in the study of Council risk.

2.0 REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 2.1 Stand sales Finding I was not availed with supporting documents to show that the Council has a record of all stands sold, their purchase price, the beneficiary, amounts paid to date and outstanding balance on each stand.
During the current year the listing provided to audit showed that stands worth $1 714 784 were sold; however, the amount could not be traced to the financial statements.

I noted that the parent Ministry issued a directive through Circular No.1/2011, which prohibited the Council from selling commercial and industrial stands at concessionary rates to Councillors.

The circular further instructed that all sales of commercial and industrial stands made to councillors from 2009 be reversed.
However, from 2011 to 2015 the 2 Council offered and sold commercial stands at 40% discount.

Furthermore, some Councillors did not fill in stop order forms or made any payment arrangements towards the purchase price of the stands allocated to them.

Some councillors paid varying amounts while others did not pay anything by the expiry of their terms of office.

Risk/ Implication Irregular sale of stands due to weak internal controls.

Noncompliance with the ministerial directive number 1/2011.
Recommendation Land sales records should be appropriately maintained and be reconciled to the financial statements.

The Council should comply with ministerial directives.

Management response Measures are being put in place to ensure that PROMUN is properly set up to do most of the identified issues that are not currently happening in the PROMUN.

3 MASVINGO CITY COUNCIL 2016 I have audited the financial statements of Masvingo City Council for the year ended December 31, 2016.
The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Internal controls on Information Technology Finding The IT Administrator was performing accounting functions, which included data capturing and passing journals in the system.

A review of the system also revealed that ledger clerks had amending privileges within the PROMUN system.
This created a loophole in the system as almost everyone had administrative privileges and could manipulate daily receipts in the receipting menu.

As a result, the Council lost at least $78 000 due to fraud perpetuated by two (2) clerks.

Risk/ Implication Financial loss due to increased exposure resulting from manipulation of system by employees.

Recommendation Council should improve controls over user rights to reduce risk of system manipulation.
Management response Please note segregation of duties is prerogative of every organization and also concentrating all the privileges on one person is equally risky.

It is therefore not appropriate to remove the user rights since it is part of their job.

A similar scenario on the aforesaid observation would be to bar a Cashier from receiving cash.

Professional ethics should just guide our staff operation.
2.0 SERVICE DELIVERY 2.1 Refuse Finding The Victoria Range landfill was no longer suitable for use as the site was too close to the residential location.

Litter was not covered and compacted posing a serious health hazard to the residents nearby.

There was also a shortage of refuse compactors.

4 Risk / Implication Residents are exposed to health and safety hazards.

Financial loss as a result of penalties by Environmental and Management Agency.
Recommendation Council should develop an alternative dumping site and improve its waste management system.

Management response Observation noted, this disposal site is now interlocked in housing development.

A new site is being processed in Victoria C.S.C Farm.

Number of refuse compactors is too small to be effective in collecting wastes.

In 2018 Council budgeted two more refuse compactors to ameliorate the situation.
5 MASVINGO CITY COUNCIL 2017 AND 2018 I have audited the financial statements of Masvingo City Council for the years ended December 31, 2017 and 2018.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Fuel management Finding The Council did not maintain a comprehensive record of fuel usage during the year under review.

The fuel register availed did not indicate the name of the person drawing down fuel from stores and purpose for which the fuel was required.
Risk/ Implication Absence of a comprehensive record may create opportunity for fuel misappropriation.

Recommendation The fuel register should indicate essential details like purpose of fuel allocated and name of drawee.

Management response Noted, we are going to improve controls safeguarding our fuels and ensure allocations are traceable beginning 2020.
1.2 Motor vehicles ownership Finding I noted that there were a number of motor vehicles with registration books on file that could not be physically verified.

In addition, there were some motor vehicles, which were not recorded in the fixed assets register.

On inquiry, Council management did not provide satisfactory explanations on the existence of these motor vehicles and completeness of the asset register thereof.

Examples of such motor vehicles are shown below.
6 Table of vehicles not recorded in the register Description Registration number Mazda 323 Honda C70 Suzuki FR80Z Mazda B2200 Mazda B2200 472065 N 229936 E 412593 V 477295 Y 562849 R Table of assets not physically verified Asset Net Book Value $ 1 129 1 174 2 760 1 043 20 000 60 000 42 000 55 142 146 675 86 475 $416 398 Laptop Acer Laptop HP Envy 15 Laptop HP Proone Desktop HP 280 New Holland Tractor Mitsubish Pajero Sport 3.2 D Volvo Fire Engine Tipper UD 85c Grader Front End Loader Total Risk/ Implication Misappropriation of assets may occur.
Recommendation The Council should improve controls related to the recording and custody of motor vehicles.

In addition, Council should investigate on the assets not physically verified and update its records.

7 Management response The vehicles referred above relates to the old fleet of Council vehicles with old number plates and are no longer in existence.

The Council recently compiled a list of all assets worth disposal and in the first quarter of year 2020 these assets would have been disposed.
Noted, we are considering to carry out an exercise of evaluating our assets and during the process all our assets would be numbered.

The evaluation exercise will be complete in 2020.

2.0 REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 2.1 Parking Fees not deposited with the Council’s bank Finding A review of parking fees for 2018 revealed that fees receipted in foreign currency (South African Rands) amounting to ZAR1 308 were not deposited into the Council bank account.
As such, the total amount was not accounted for.

Risk/ Implication There is risk that the cash collected might have been fraudulently used for personal gain.

Recommendation I recommend that the Council investigates the cash collected but not deposited/ banked and ensure that necessary measures are put in place so that cash collected in foreign currency is banked intact.
Management response Noted, we have started investigating the issue once done with the investigations we are going to ensure Council funds are recovered.

We hope to recover Council funds in 2020.

2.2 Lease rentals Finding The City Council did not have a lease register in place, which shows details of all the leased properties, names of tenants and duration of the leases.
A list of all leased properties compiled during the audit fieldwork was incomplete, as it did not include some of the properties being rented out.

Consequently, there was a variance of $520 653 between the 8 recomputed lease rental balance ($167 190) and the ledger balance ($687 843) which Council management could not resolve.

Risk/ Implication Possible misappropriation of Council funds.

Recommendation The Council should create a database of all its leased properties within Masvingo City Council.
Management response Noted, were are going to improve on the maintenance of the leased properties database 2020 going forward and separate revenues from hall, stadium hiring and other related revenues from this vote.

3.0 SERVICE DELIVERY ISSUES 3.1 Water provision Finding The Council was producing 30 mega litres of treated water per day and the current demand for the Council was 48 mega litres per day.
This implies that Council is failing to meet the demand per day as Council needs 18 mega litres more to meet the daily water demand for the city.

To ensure that all areas receive water, the Council closes outlet valves of the reservoir from 1600 hours to 0400 hours.

The high land areas are affected as they won’t have water from 1200 hours to 0400 hours.
The areas mostly affected are Four Brigade, Mucheke D and Mucheke F. There was an estimated water loss of 40% in the water reticulation system; this is mainly as a result of an old water reticulation system that has outlived its useful life.

Risk/ Implication There is risk of outbreak of water borne diseases in areas which are affected by the water rationing.

Unnecessary water losses are occurring leading to reduction of revenue.
Recommendation In order to cater for the current water demand and future expansion of the city, the Council needs to upgrade the water works.

9 Management response Observation noted.

Council is pursuing a water augmentation scheme, whose technical feasibility study has been completed and financial feasibility study is almost complete.
We intend to borrow for the duplication of our water supply infrastructure, from intake to the distribution reservoirs and we will require government support once the financial feasibility has been completed.

Council has made a provision of district meters in the 2019 budget to make an assessment of the water losses through leaks within the reticulation.
A survey of malfunctioning and stuck meters was also instituted and Council will incorporate replacement of these meters in the 2020 budget to reduce commercial losses.

3.2 Refuse Finding I noted that the Victoria Range landfill was no longer suitable for use as the site was now too close to the residential location.

The Council had only three (3) refuse compactors instead of six (6) compactors as required by refuse management standards to effectively service its consumers.
Risk/ Implication Residents are exposed to health and safety hazards due to proximity of the dumpsite.

Fines and penalties may be charged by regulatory authorities.

Recommendation Council should seek an alternative dumping site away from residential areas and the refuse department should be adequately resourced in terms of equipment.

Management response Observation noted.


However, it is important to note that housing developments in Victoria Ranch came up when the disposal site was already in place resulting in an unanticipated situation.

Council applied for land from the Central Government for relocation of the landfill.

However, before Council could move in to develop the landfill, we were advised that the land had been sold to another developer despite Council having done the EIA for the project.
We presented our case to the Minister of Local Government, Public Works and National Housing who has committed to 10 assist us to get suitable land.

We anticipate that in the 2020 financial year, we will be able to relocate to a new and proper landfill.

In 2019 Council budgeted to buy two refuse compactors and has already awarded a tender for the compactor, efforts are being made to acquire funding.
3.3 Sewerage Treatment Finding There were instances of sewer spillages in areas like Old Mucheke suburbs and the sewer was spilling into the near-by river stream which feeds into the Council’s main source of water (Lake Mutirikwi).

The Council acquired a loan of $2 100 000 from NSSA in 2014 for the construction of a sewer trunk pipeline.

However, the project was still to be completed due to lack of funding.

At the time of audit, the project was assessed to be 65% complete.
Risk/ Implication Sewer spillages pose a health and safety hazard to the residents and surrounding environment.

Penalties and fines may be levied by Environmental Management Agency (EMA).

Recommendation Council should pursue alternative sources of funding to ensure the project is completed.

Management response Council has been pursuing additional funding from National Social Security Authority to complete the project.
In addition, the 2019 and 2020 grant from Central Government under the constitutional provision has been earmarked for the completion of the project.

11 1.0 1.1 MUTARE CITY COUNCIL 2015 I have audited the financial statements of Mutare City Council for the year ended December 31, 2015.

The following are material issues that were noted during audit.
REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY Cash collection and banking Finding There were instances where cash collected was not banked intact as shown from the sample tested.

On enquiry, it was noted that the difference was attributed to cash advanced to certain employees.

However, there was no documentation attached as evidence of the authorization of the transaction.
Date 4/12/2015 4/12/2015 4/12/2015 Total Machine number Amount collected $ banked $ Difference $ Amount 29 25 31 8 392 8 364 12 673 7 297 7 712 10 865 1 095 652 1 808 $3555 Risk/ Implication Possible misappropriation of cash.

Recommendation Management should ensure cash collected is banked intact.

Management response The observation is noted and reconciliations are being done.
1.2 Receivables Finding An analysis of the receivables aging showed that most of the City Council debtors have been outstanding for long periods.

In particular, the Council paid a supplier US$330 000 in 2012 for the supply of water pipes which were yet to be delivered at the time of audit in December 2020.

12 Risk/ Implication Service delivery is compromised.

Recommendation Council should implement effective debt collection methods and make concerted efforts to recover amounts paid to suppliers.
Management response Mutare City has started employing several strategies to improve revenue collection and to recover all debts due to the City Council.

Revenues have started to improve for 2019 in which year new strategies were implemented.

The following are initiatives that are currently being implemented to improve collections: Council is strengthening its debt collection section and by May 2019, 5 more staff members had been seconded to this area.
A debt collection module has been implemented which is a software used to track debtors.

The rate of collection has greatly improved as a result.

Council is running several promotions to entice residents to pay up their debts.

The promotion is running up until 31 December 2019.

Council has also started City wide water disconnections as a measure of also enforcing payments.

Council is also inviting residents whose accounts cannot be paid off to register payment plans.
The payment plans are stretching up to 24 months during which debts should have been paid off.

1.3 Discount promotion write offs Finding I could not validate amounts written off amounting to $1 175 793 as the breakdown of the total figure was not availed.

Explanations proffered by management were that the write offs arose from the discount promotion that ran from March 2015 to June 2015 following a Council resolution.

Risk / Implication Fraud may be perpetrated through unsubstantiated write offs.
13 Recommendation Council should provide the detailed list of the discount promotion write-offs.

Management response Noted.

Compilation is in progress.

There has been failure of our system to pick these transactions from the database.

Our system vendor is helping us clean up the system in order to be able to fish out all required reports.
2.0 EMPLOYMENT COSTS 2.1 Payroll reconciliations Finding Council could not reconcile its ledger balance of US$14 376 227 to the payroll records total of US$13 129 367.

As a result, there was an unreconciled amount of US$1 246 860 which Council could not explain.

Risk/ Implication Financial statements may be materially misstated.

Fraud or error may go undetected.

Recommendation Management should consider maintaining monthly reconciliations between the payroll and the accounting system.
Council should also investigate the unreconciled amount.

Management response Noted.

Will retrain staff and payroll reconciliations to be done as recommended.

2.2 Management school fees benefits Finding The Council’s school fees benefit had no stipulated allocation per person and was also silent on what items constituted school fees.
As a result, school fees up to “A “level were pegged using Government approved rates, however management violated this resolution as their children were sent to group A (private schools) and Council was paying in full for tuition, boarding fees, desk fees, school magazines, camp fees and other school related 14 costs.

As for University level children, Council was also paying their accommodation, graduation fees and refunding medical expenses with no supporting medical bill.
Risk/ Implication Financial losses attributed to payment of excess school fees benefits.

Recommendation Management should adopt a clear and more defined policy concerning the school fees benefit.

Management response Noted and actioned accordingly.

2.3 Taxation of employee benefits Finding The managerial benefits were not being processed through the payroll for instance cell phone allowance, telephone, electricity and others for the period under review.

As a result, they were not subjected to tax.


The table below shows the amount that should have gone through payroll Employee benefit Cellphone allowance Telephone Electricity Rentals School fees Total Amount $ 34 297 5 058 12 960 52 800 83 195 $188 310 In addition, the deemed benefit arising from interest free staff loans was not subjected to PAYE.

Risk/ Implication Financial loss due to penalties and interests charged by the tax authority.
Recommendation Management should ensure that all benefits and allowances go through the payroll for the purposes of taxation.

15 Management response To process the benefits through payroll as recommended.

3.0 SERVICE DELIVERY 3.1 Refuse management Finding There was no approved dumpsite in compliance with environmental management legislation.

The one in use was situated near a river.

There was development of residential stands around the dumpsite making its location unsuitable for continued use.
The affected residential areas were Gateway City, Darlington and Clay hill residential properties.

Risk/ Implication Financial loss due to penalties and fines by EMA.

Proximity of the site to residential areas creates health and safety hazards.

Recommendation Council should identify a suitable dumping site, which complies with EMA requirements.

Management response Council has identified a new landfill at Gimboki.
Designs are underway after an Environmental Impact Assessment has budgeted $300 000.00 for the development of the landfill in 2019.

3.2 Ambulance services Finding The Council had one operational ambulance for the whole city which was also shared between the health and fire department.

Risk/ Implication Service delivery may be compromised.

Recommendation Council should acquire additional ambulances to improve service to the residents.

16 Management response Noted.


Two fully equipped ambulances will be procured in 2019.

17 MUNICIPALITIES 18 BINDURA MUNICIPALITY 2019 I have audited the financial statements of Bindura Municipality for the year ended December 31, 2019.

The following are material issues that were noted during the audit.
1.0 REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 1.1 Accounts receivables Finding The Municipality had one hundred and fifty-three (153) billed accounts whose total balance amounted to ZWL$307 565, which could not be identified by name.

These accounts had digits and characters of the form, ‘xxxxxxxx’ and ‘AAAA’ as account names.

On enquiry, management proffered that the said accounts either did not exist or would be a result of tests runs that had been conducted.
However, there was no evidence that data testing and verification was conducted post the said data cleaning exercise.

In addition, as at June 22, 2020 these accounts had increased to 218 with a total value ZWL$425 890.

The table below is a sample of such accounts.

Account Name Created by Bal as at 31 Dec 2019 2862 0/42862/00 0/50769/00 XXXX 0/20694/00 XXXXXXXXX 1/07480/00 XXXXXXX 0/28334/04 XXXXXXXXX 0/60825/00 XXXXXXX 0/20399/08 XXXXXX 0/20847/00 XXXXXXXXXX User I.
D 1 user not found user not found user not found 121 122 1 1 ZWL$ 2 181 3 645 3 833 5 664 6 182 7 324 15 106 210 835 An analysis of the I.T report showed that of the 218 accounts, 49 were created by unknown users, while the remainder was created by various users as shown by the table above.

Risk/ Implication Accounts receivable balances may be fictitious.

Unknown accounts may be used to commit and conceal fraudulent transactions.
19 Recommendation Management should investigate why the above-mentioned accounts are still being billed and why they continue to constitute part of the Municipality’s billing records.

Management response Management response was not provided.

PROCUREMENT OF GOODS AND SERVICES Prepaid goods and services Finding 2.0 2.1 I noted that US$90 850 was paid towards acquisition of a front-end-loader in December 2018.

However, the front-end loader had not been delivered at the time of audit in October 2020.
Risk/ Implication Financial loss due to non-delivery of the front-end loader.

Recommendation Management should pursue the matter with both the supplier and RBZ.

Management response The Municipality paid $90 850 to Pelgin Consulting Services for the supply of a front end loader in 2018.

This is the period when all imports would be queued and prioritised by the Reserve Bank of Zimbabwe.

Constant communication with the supplier has yielded nothing as we are told that it has become an RBZ issue.
3.0 3.1 SERVICE DELIVERY ISSUES State of fire service vehicles Finding The Municipality had no functioning fire tenders.

Fire tenders play a crucial role in saving human lives and property.

The Municipality had three fire tenders, which had outlived their useful economic lives.

Two (2) of these vehicles had been off road for some years and the third one broke down in 2018.

20 Risk/ Implication The Municipality may not be in a position to render fire services.
Recommendation The Municipality should consider procuring fire tenders.

Management response It is correct that fire and rescue services are a key function of the Municipality.

For some time now Council has not had a functional fire tender and has to rely on Harare to provide cover.

Lately we have had to call upon Fredda Rebecca Gold Mine to provide cover in the event of fire.

The Municipality is still able to attend to other rescue operations unrelated to fire.
Funds permitting Council will procure own fire tender and maintain /service its firefighting equipment.

3.2 Water shortages Finding The Municipality was facing challenges in providing adequate portable water to consumers.

The Council currently had a capacity to supply 124.83 mega litres (ML) against a demand of 216.62 mega litres, resulting in a shortfall of 91.79 mega litres per month.
Management indicated that the adequate supply of water had been compromised by water leakages, water theft, and continuous electric power cuts being experienced in addition to chemical costs among others.

The Municipality had been implementing water rationing to the extent that reservoirs were being opened for four (4) hours in the morning and four hours in the afternoon per day.

Risk/ Implication Service delivery is compromised.


Recommendation The Municipality should plan for an expansion of the existing water reticulation network.

Management response Council has already procured two x 300hp high lift pumps whose installation was disturbed by COVID-19.

There is regular maintenance of the Municipality’s network but there has been increased pressure due to increased pumping capacity after the commissioning of one low lift pump which has resulted in more bursts.
Response time has of late been compromised due to shortage of fuel now being sold in United States dollars making it out of reach of Council which charges tariffs which are in ZWL$.

21 3.3 Treated water Finding The quality of raw water from the sources (Mazowe River) was compromised by pollutants emanating from mining activities upstream, which contaminated it.

As a result, the Municipality required more chemicals on water treatment translating to high costs.
Risk/ Implication Water consumers are exposed to health hazards.

Recommendation Management should engage other government law enforcing agencies and relevant ministries in an effort to find a lasting solution at national level.

Management response This has already been done, there is an interdepartmental team dealing with artisanal mining upstream of the take-off point.

The damage had already been done and will take some time for the riverbed to stabilise.
3.4 Access to tap water I noted that some suburbs have not been accessing tap water since their establishment.

Accessibility of water has been a challenge to residents of suburbs such as Brockdale, Woodbrooke, Greenhill, Cleverhill and Chiwaridzo 3 (Garikayi) with 3055 household units.

Residents have to resort to wells and nearby streams for daily water needs (drinking and washing).

Risk/ Implication Residents are exposed to health hazards from use of unsafe water sources.
Recommendation The Municipality should ensure that all suburbs are connected to the Council’s water network.

Management response Noted.

We will accommodate this in the next devolution disbursement.

It is however important to note that due to mining activities some may be dry holes while others may be contaminated.

22 3.5 Dumpsite Finding The Municipality had no standard engineered landfill but was using a decommissioned mine site.
As a result, the decommissioned mine dumpsite remained non-compliant with EMA requirements, as it was unregistered.

My enquiry with management revealed that it was difficult to establish a standard scientific engineered landfill due to funding challenges and unavailability of land.

Risk/ Implication Residents are exposed to health and safety hazards.

Penalties and fines may be levied by EMA.

Recommendation The Municipality should prioritise the establishment of a compliant engineered landfill.
Management response Council applied for land in Kingstone farm, which was found suitable for a landfill, but the application was not acceded to.

23 CHEGUTU MUNICIPALITY 2017 I have audited the financial statements of Chegutu Municipality, for the year ended December 31, 2017.

The following material issue was noted during the audit.

1.0 SERVICE DELIVERY 1.1 Water provision Finding I noted that most of the municipality’s households (80%) did not have functional water meters.
In addition, the water distribution system was too old and needed rehabilitation.

As a result, 50% of the water distributed from the water treatment plant was lost through leakages.

The table below is a breakdown of the areas with non-functional meters.
Number of Non- functional meters 470 143 1910 492 16 35 395 704 4165 Percentage of Non – functional (%) 86 78 77 92 84 85 67 87 80 AREA Total Meters Chegutu Durawall Kaguvi Pfupajena Messengers Camp Rifle Range Town ZMDC TOTAL Risk/ Implication 544 183 2473 531 19 41 582 806 5179 Financial loss due to wasted water.

Service delivery may be compromised.

Recommendation Council should ensure that all water meters are functional.

The Council should make plans to rehabilitate the water distribution system.
Management response In 2018 a contract to install 4000 post-paid domestic meters was awarded and only 226 meters were installed during that period due to the hyperinflationary 24 environment.

The contract was however carried forward to 2019.

This contract is to be implemented under PSIP funding.

A plan to replace the old water distribution system and the meters is already in place in the Investment Plan and this plan is being implemented in phases subject to the availability of financial resources.
25 CHINHOYI MUNICIPALITY 2018 I have audited the financial statements of Chinhoyi Municipal Council for the year ended December 31, 2018.

The following are material issues that were noted during audit.

1.0 GOVERNANCE ISSUES 1.1 Payroll processing Finding There was no evidence that the payroll was being reviewed and approved by the Human Resources Manager before being processed.
Changes that were being made in the system which included terminations, appointments and banking details were not being reviewed and approved.

As a result, the Council had an employee, a Registered General Nurse, who was stationed at Alaska Clinic who left employment but remained on the Council’s payroll for 12 months.

The total amount paid to this employee amounted to $15 946.

Risk/ Implication Fraud and errors may not be identified and corrected timely.

Financial losses due to fraud.


Recommendation The Council should ensure that the payroll is reviewed and approved before it is processed.

Management response This is noted and Council has instituted further investigation on this finding and corrective measures will be taken.

1.2 Recruitment Finding Council filled a middle management post in the year ending December 31, 2018 without advertising the post.
This was contrary to the Human Resources policies and procedure manual which stipulates that all positions which will be recruited from outside Council shall be advertised in the national press.

Risk/ Implication Non-compliance with the Human Resources policies and procedure manual.

26 Creates opportunity for corruption and nepotism.

Recommendation Council should adhere to the recruitment process stipulated in the Human Resources policies and procedure manual.

Management response Observation noted.


Council will ensure that it adheres to the recruitment process stipulated in the Human Resources policies and procedure manual as recommended by audit.
1.3 Council policies Finding I noted that Council was operating without an accounting procedure manual and additionally, the following policies: Policy Asset management policy Investment property policy Risk management policy Donations policy Risk / Implication Purpose Provides a uniform guidance on administration of assets.

Provides guidance on how to account for investment property.

Provides guidance on how to identify and mitigate risks affecting Council operations.
Provides guidance on accounting for donations.

Absence of guidelines for managing Council operations.

Recommendation Council should ensure that the policies and accounting procedure manuals are in place.

Management response Observation noted.

Council will ensure that it adheres to the audit recommendation.

27 1.4 Central stores Finding I noted that inventory was being issued without authorization by heads of departments.
The table below shows a sample of items issued during the year under review which were not approved by respective heads: Date of issue 13/12/18 17/12/18 27/12/18 31/08/18 04/09/18 11/09/18 19/09/18 27/09/18 04/10/18 04/10/18 SR No 2356 2360 2379 2203 2207 2215 2223 2230 2244 2246 Risk / Implication Quantity 6 20kgs 4 Description 50 kg cement Chlorine of lime 50kg cement Pick heads and shovels 4 each 50kg cement 50 kg cement Pick heads and shovels 21picks and 26 shovels Water meter 50kg cement Chloride of lime 130 6 50kgs 5 2 Unauthorized stock requisitions may lead to misappropriation of stock.
Recommendation All stock requisitions should be approved by head of departments.

Management response Observation noted.

Council will ensure that stores requisitions are approved by Heads of Departments.

We are now migrating to the Stores PROMUN Module in 2019.

2.0 REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 2.1 Water Finding Council produced 6 775 815 cubic meters of purified water and supplied 2 539 294 (38.5%) cubic meters to its residents resulting in a loss of 4 236 521 (62.5%) cubic meters.
The water losses were caused by residents accessing water directly from a main surface water pipe, unmetered public water taps in Rujeko residential area, Gadzema and Mupata rental properties.

28 In addition, 365 out of 380 households in Rujeko (Garikai) had no water accounts and therefore they were not billed for water despite them receiving water and having functional water meters.

Risk/ Implication Financial losses due to excessive non-revenue water.
Recommendation Council should take appropriate action to reduce non-revenue water to an acceptable level.

Management response Noted.

Council is implementing a water loss reduction programme aimed at reducing the extent of non-revenue water.

Activities being implemented include meter replacement, leak detection, water survey among others.

Council will create water accounts for all properties connected to the service.
3.0 SERVICE DELIVERY 3.1 Water provision Finding The Council was not supplying water to high density suburbs of Shackleton and Alaska due to a dysfunctional water reticulation system.

A total number of 1 694 households had no access to Council water and were using boreholes.

Table below refers: Location Alaska Shackleton Total Number households 854 840 1 694 Risk/ Implication of Period Reason without water 6 years 15 years Water pipes worn out.

Water pipes worn out.


Residents may be exposed to outbreaks of waterborne diseases.

Financial loss due to failure to generate revenue.

Recommendation The Council should urgently repair the water reticulation system in Alaska and Shackleton.

29 Management response Observation noted.

Council will mobilize resources to rehabilitate the water reticulation system in Alaska and Shackleton.
30 CHINHOYI MUNICIPALITY 2019 I have audited the financial statements of Chinhoyi Municipality for the year ended December 31, 2019.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE 1.1 Traffic management system Finding The Council subcontracted traffic management system services which included collection of parking and bus terminus fees.

This was a five-year contract where the Council would be paid 50 % of the net collections on a monthly basis.
I however noted the following anomalies; There was no control or cap on the expenditure incurred by service provider used in the computation of the net income, Further, for the past three years no audited accounts were submitted to substantiate both cash collections and expenditure incurred by the service provider.

For the nine months to September 2019, Council was being paid on average ZWL $ 5 078 per month.
The agent was collecting cash on a daily basis but was not consistently remitting monthly Council dues.

In addition, the agent was collecting some fees in USD but would only remit ZWL $ to the Council.

Risk/ Implication Financial loss and possible fraud emanating from irregular contract management.

Service delivery may be compromised.

Recommendation Council should put in place measures to ensure effective contract management.
Management response The agent used to present an income and expenditure report and as partners we used to have regular meetings where we could raise any clarification issues on revenue and expenditure.

The challenges arose when they failed to remit their monthly remittances as well as non-submission of income and expenditure reports.

Initially Council had access to Traffic Management system until when the agent said they were 31 installing a new system.
Council then had no access to the new system that is why Council has requested an audit of the agreement.

In terms of non-remittances, Council has engaged the agent and is taking further steps to review the contract.

Council is following the due process to terminate the contract in terms of the agreement.

2.0 REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 2.1 Receipt books Finding I noted that five (5) receipt books were missing.
Three (3) receipt books were signed for by messenger employee number 995 and the other two (2) by employee number 269.

Further, I noted that the receipting officer employee number 269 had resigned on allegations of fraud.

Alternative procedures on tracing whether the amounts receipted were banked could not be performed because the capturing of receipts in the system cashbook does not make reference to the manual receipt numbers.
The table below refers: Receipt book Date Issued 409801-410000 410201-410400 411601-411800 412201-412400 456800-457000 22/09/17 22/09/17 04/10/17 13/10/17 28/01/19 Employee which receipt were issued.

to the books 269 269 995 995 995 Status Missing Missing Missing Missing Missing As of the time of audit in December 2020, a press statement had not been issued informing stakeholders of the missing receipt books.

Risk/ Implication Fraudulent activities may be perpetrated.
Recommendation The Council should improve controls surrounding controls over security items.

Management responses Verification of the missing receipt books was done.

Council shall ensure that receipt books are no longer issued to messengers but to the relevant receipting officer.

Council has designed a new system to ensure that receipt books are returned within 32 a specified period, within the same period.

Council shall issue a Press Statement so that they are not fraudulently used.
3.0 EMPLOYMENT COSTS 3.1 School fees allowance Finding I noted that school fees allowance for junior payroll amounting to $96 072 was not taxed.

The Income Tax Act requires school fees allowance to be taxed.

Risk/ Implication Council may suffer financial losses from penalties and interests by ZIMRA.

Recommendation Council should pay taxes on the allowances.

Management response Relevant communication will be done to all beneficiaries.

Council shall tax all non- taxed school fees allowances.
33 CHITUNGWIZA MUNICIPALITY 2016 I have audited the financial statements for Chitungwiza Municipality for the year ended December 31, 2016.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Risk management policy Finding The Council did not have a risk management policy.
A risk management policy provides guidance regarding the identification, assessment and management of risks to support the achievement of the Council’s objectives, protection of staff and business assets.

Risk/ Implication There is no guidance regarding the identification, assessment and management of risks to support the achievement of the Council’s objectives, protection of staff and business assets.

Recommendation The Council should consider putting in place a risk management policy.
Management response The observation has been noted.

Council is in the process of coming up with the risk policy.

1.2 New settlements Finding I noted that new settlements had emerged where houses were built before land servicing was done.

As a result, these settlements did not have basic and essential services as detailed below: Zengeza 4 Mabamba There were no roads, sewer and water.
Zengeza 4 Pagomba There were earth roads which need to be graded Unit J (Illegal stands near Zengeza 4) There were no roads, sewer and water.

34 Unit J There was no sewer and the earth roads need to be graded.

Unit K near Surface There were illegal stands and there were no roads, sewer and water.
Unit K opposite Surface There was no sewer system and earth roads need to be graded Unit L near Seke 3 There were no roads and sewer system Unit L between Duri River and Old Unit L There were no roads, no sewer system and no water.

Garikai There were no roads, no sewer and water Unit M There were earth roads which needed to be gravelled and there was no sewer connection.

Unit M Jambanja There were earth roads which needed to be graded and there was no sewer system.
Illegal stands behind Zaoga There were no roads and sewer system.

Unit C opposite Zaoga There were earth roads which need to be graded and gravelled.

In addition, there was no sewer system.

NOP near Try Again Shops There were no roads, sewer and water systems.

Unit P opposite NOP There were illegal stands which were sited along power lines.

In addition, there were no roads, water and sewer systems.

Unit O Mabamba School There are no roads, no sewerage system and no water.
Unit G Opposite Seke Teachers College There were earth roads which need to be graded and gravelled and in addition, there were no sewer and water systems.

35 Unit O behind Seke 5 There were illegal stands, no roads, no sewer system and no water supply.

Unit O near Taita Shopping Centre There were no roads, no water and sewer systems.

Unit O near Hwedza Roads There were no roads, no water and sewer systems.

Unit G opposite Seke Teachers College There were illegal stands and no water and sewer systems.
There were earth roads which need to be graded and gravelled.

Commercial stands behind VID There were no roads, no sewer system and no water connected.

Seke Unit A near Chibuku Stadium There were no roads.

There was no sewer system in place.

In addition, there were illegal stands behind Chibuku stadium which had no roads, water and sewer systems.

Unit E There were illegal stands opposite Unit E and had no sewer and water systems.

Unit J opposite Tafa Shopping Centre There were illegal stands.
Seke Unit A opposite Unit D There are illegal stands.

Unit K along the River (Near Seke 8) There are illegal stands.

Zengeza 4 behind City Med Clinic There were no roads.

There were no sewer and water systems.

St Mary’s near complex There were no water and sewer systems.

Zengeza 5 behind Zengeza 2 High School There were no sewer and water systems.

Zengeza 5 Tangenhamo There were no sewer and water systems.
36 St Mary’s near Zengeza Main School There were earth roads which needed to be graded and gravelled.

There were no sewer and water systems.

St Mary’s Along Chiratidzo Road There were no roads.

There were no sewer and water systems.

St Mary’s Aviation Artena There were no roads.

There was no sewerage system.

St Marys near Sewerage Pump 1 There were no roads.

There is no sewerage system.

St Marys from 9568 down to River Hunyani There were no earth roads which needed to be graded and gravelled.
There was no sewerage system.

Stands behind St Mary’s Police Station There were earth roads which needed to be graded and gravelled.

There were no water and sewer systems.

Risk/ Implication Service delivery is compromised.

There may be potential public health and safety hazards.

Recommendation The Council should initiate the process of regularising or issue prohibition orders on these settlements.
Management response Council is in the process of regularising stands and has issued prohibition orders for those developing on unsanctioned land.

37 2.0 SERVICE DELIVERY 2.1 Waste management Finding The Council had one refuse compactor whilst the garbage trucks were now too old.

As a result, they were now prone to frequent breakdown resulting in the Council failing to collect refuse.
There was no weighbridge to measure waste on entry into the dump site to enable the Council to measure the quantity of waste sent to the dumpsite.

Risk/ Implication Service delivery may be compromised.

Recommendation The Council should make plans to procure refuse collection trucks, dozers and landfill compactors.

Management response The Council is in the process of procuring the refuse equipment using a phased approach.
38 MARONDERA MUNICIPALITY 2016 I have audited the financial statements of Marondera Municipality for the year ended December 31, 2016.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Risk management policy Finding The Council did not have a risk management policy.

A risk management policy provides guidance regarding the identification and management of risks to support the achievement of the Council’s objectives, protection of staff and business assets.
Risk/ Implication There is no guidance regarding the identification and management of risks to support the achievement of the Council’s objectives, protection of staff and business assets.

Recommendation The Council should consider putting in place a risk management policy.

Management response Recommendations noted.

Council will put in place a risk management policy and a risk register.
2.0 REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 2.1 Rental Income Finding The Council did not provide a detailed list of rented properties as well as lease agreements.

I was therefore unable to substantiate rental income disclosed in the financial statements amounting to $200 264.

Risk/ Implication Financial statements may be misstated.

Financial loss as some properties may not be billed.

39 Recommendation Council should have a filing management system in place.
Council should ensure that property listings are available.

Management response Council could not provide the required property listing due to poor filing and record management systems, however Council is in the process of improving its filing systems and documentation.

It shall provide a full listing of rented properties in the next financial year audit as it would have migrated to the use of PROMUN which provides an audit trail.
3.0 SERVICE DELIVERY 3.1 Water provision Finding The Council water pump in use had the capacity to produce 13.5 mega litres of treated water per day.

However, this was inadequate to cater for the current population which required approximately 27 mega litres of treated water per day.

Risk/ Implication Service delivery is compromised.

Recommendation Council should improve its water pumping capacity.
Management response Council introduced a water demand management system sometime in 2013 due to the fact that the demand of water far outstripped supply.

For the record, the plant was designed in 1970 to cater for a population of 20000.
The 2012 census put the population of Marondera at 62000 and with 5 % growth rate per annum, the existing water treatment plan and currently the African Development Bank is undertaking an Intergrated Urban Water Master Plan for Marondera Town at a cost of 2.3 million euros.

A substantial component of the amount for the project will be used to attend to immediate needs that will go some way in improved water supply to our residents.
It must be noted that the Municipality’s water demand as of 2012 stood at 27 ML per day and still continues to rise due to population growth and high standards of living.
Currently we still supply water from the 1972 water treatment plant with a design 40 capacity of 13.5 ML/day which has reduced to 8.5 ML per day average because of aged infrastructure with some of the losses in the treated water distribution network being as high as 62% as evidenced by the Service Level Benchmarking exercise currently in motion for all local authorities to measure performance.
Therefore, there is need to augment our water treatment, storage and distribution systems to meet the current and future supply demands requiring approximately 16 million USD.

Fortunately, the Municipality has managed to obtain a grant of 2.9 M Euros towards developing an integrated urban water management masterplan (IUWM) for Marondera.

This study is funded by African Development Bank (AfDB) through the Ministry of Water, Environment and Climate.
The project commenced in January 2017 and is still underway to date.

This entails the development of a water masterplan for Marondera, its surrounding catchments, identifying immediate needs requiring rehabilitation, addressing such non-revenue water, repairs to water treatment plant, wastewater and treated water supplies distribution network and storage units, amongst other project components.
This will definitely increase water quality and efficiencies in demand-to-supply available ratio and as well as wastewater treatment capability respectively at project completion.

41 TOWN COUNCILS 42 CHIREDZI TOWN COUNCIL 2016 I have audited the financial statements of Chiredzi Town Council for the year ended December 31, 2016.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES.


1.1 Vehicle Accident Finding A review of records revealed that the Chairman had been involved in an accident with a Council vehicle.

It was noted that the chairperson was not on Council business when this occurred.

The vehicle was supposed to be parked at the Council premises as directed by the Ministry in line with safe guarding assets.

The Council incurred a total cost of $2 595 in repairing the vehicle.
Risk/ Implication Financial loss as a result of possible override of controls by those charged with governance.

Recommendation Council should ensure adequate controls exist which also cover those charged with governance.

Management response Council will ensure that all manual procedures are eliminated.

Acquisition of fiscalised printers will assist in this area as all process shall be done through the system where at each stage a different person will authorize (segregation of duties).
Evaluation of management response Whilst I appreciate management comments, however the response does not address the issue I raised.

1.2 Cash and Bank Finding I noted that there were numerous outstanding reconciling items on the rates and administration bank reconciliation statement.

43 Risk/ Implication Fraud and errors may go undetected.

Recommendation Management should investigate and clear all outstanding reconciling items.
Management response Council investigations have already started and audit shall be informed and necessary adjustments shall be made.

Each account shall be linked to a point of sale machine to reduce inter-fund movements.

2.0 PROCUREMENT OF GOODS AND SERVICES 2.1 Expenditure acquittals Finding Council did not provide supporting documents to show how the ZINARA grant of $105 465 had been acquitted.
The Council had in the past received a warning letter from ZINARA in respect of funds that had been disbursed to the Local Authority.

Risk/ Implication The Council may fail to access grants from ZINARA.

Recommendation The Council should ensure that acquittal documents are in place and also lodged with ZINARA on time.

Management response ZINARA performs its own audit of the Grants we receive, and if we do not acquit the previous grant we will not be legible for another.
Council will make effort to avail the requested documents in the future.

44 3.0 SERVICE DELIVERY 3.1 Sewerage Finding It was noted that 682 housing units were not yet connected to the sewer system.

The sewer ponds which were being used were located close to residential areas however, the Council had not erected a security wall or fence as a perimeter barrier.

Additionally, sewer blockages and spillage were being experienced as a result of silting and solid objects accumulation.
Risk/ Implication Health and safety hazards as a result of the sewer system not yet connected.

Health and safety hazards expose the Council to possible litigation.

Recommendation Council should erect a perimeter wall at the ponds.

Sewer system should be expanded to accommodate the growing population.

Management response Noted, and Council is taking this audit recommendation seriously.
3.2 Water processing and billing Finding The Council pumped a total of 3 200 997 m3 processed water but only 1 274 605 m3 (40%) was subsequently billed to consumers.

The situation on the water processing and monitoring system was worsened by the fact that over 50% of water meters were non- functional and the Council had resorted to charging fixed amounts on monthly bills.

Risk/ Implication Under or over billing of consumers.

Inability of Council to monitor water usage.


45 Recommendation Council should replace nonfunctional water meters and investigate the significant processed water losses.

Management response This is taken care of by our 2019 budget.

3.3 Housing land development project Finding I was not availed with documentation to support the low-density housing development project arrangement between the Council and a private land developer.
As a result, I was unable to ascertain the level of implementation or status of performance delivery in as far as this arrangement is concerned.

Risk/ Implication Council may enter into arrangements that may not be beneficial to the Local Authority and respective residents.

Recommendation Council should ensure that respective documentation is available for all arrangements it engages in.

Management response Noted, Council is now in the process of servicing such residential stands.
3.4 Social Amenities Finding The Council’s social centers were in a dire state requiring renovations and rehabilitation.

The Council had tennis courts, a swimming pool and a library which were no longer functional.

A functional stadium was available and in use but required renovations.

Risk/ Implication Service delivery is compromised.

46 Recommendation Council should ensure that social amenities are well maintained and functional.

Management response Included in 2019 budget.


47 SHURUGWI TOWN COUNCIL 2015 AND 2016 I have audited the financial statements of Shurugwi Town Council for the years ended December 31, 2015 and 2016.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES.

1.1 Acquisition of vehicles Finding There was no documentary evidence provided by Council to support the expenditure incurred towards acquisition of two (2) Ford ranger vehicles valued at US$79 000.
Risk/ Implication Financial loss due to irregular procurement.

Recommendation All expenditure should be supported by adequate documentation.

Management response We note the missing documentation for US$79 000 relating to the two Ford Rangers.

Effort is being put to locate them although our bank statements indicate clearly, when the purchase was done and the amounts involved.

1.2 Business Licences Database Finding Council did not provide a database for business licences for the year under review.
I could not ascertain the completeness of revenue amounting to $97 843.

Risk/ Implication Loss of revenue.

Fraud and error may go undetected.

Recommendation Council should maintain a comprehensive and up to date database for businesses in its jurisdiction.

48 Management response The database is in place for the year under review and ready for inspection.

2.0 EMPLOYEE COSTS 2.1 Deemed benefits Finding The deemed benefits were not being accrued to employees’ payroll for taxation purposes.
The Town Secretary and the Treasurer had Council vehicles which attract a deemed benefit of $7 200 per annum.

However, these were not being taxed.

Risk/ Implication Noncompliance with tax authorities.

Recommendation Council should ensure that all income which accrue to the employee is taxed in full including deemed benefits in line with the relevant statutes as well as the Labour Act [Chapter 28:01] section 12 (a) (7).
Management response The issue of deemed benefits was purely an oversight on the part of the Salaries Officer.

We vow to rectify the issue as soon as possible.

3.0 SERVICE DELIVERY 3.1 Refuse, street lighting and sewer Finding Refuse was not being collected at Sebanga extension.

In addition, Council was not providing street lighting services to the residents.

Further, there was no sewerage provision for the housing units and residents in Mambowa and Sebanga Extension.
Risk/ Implication Residents are exposed to health and safety hazards.

49 Recommendation Council should open up roads and ensure refuse collection is done regularly and properly disposed of.

Sewerage connections should be prioritised to those suburbs yet to be connected.

Management response Street lighting has been provided in Town (main road to Zvishavane/Masvingo) at a cost of $16 500 and all areas are on our plans for lighting provision.
A position paper for sewer provision has been submitted to the Ministry of local Government for possible funding.

For Refuse, a road construction plan for access roads at Sebanga Extension has already been made.

Council intends completing the programme by end of year 2018.

3.2 Health Service Finding The Council clinics did not have adequate rooms to handle the traffic of patients and required more infrastructure for the provision of maternity services.
Risk/ Implication Failure to provide adequate health services may pose major risks in the event of outbreaks.

Recommendation Council should strive to provide adequate health services.

Management response Council is expecting to open another health facility Sebanga Park Poly Clinic in Sebanga 3 Extension which is expected to serve over 5 neighbourhoods easing pressure to the existing Makusha Clinic.
50 ZVISHAVANE TOWN DISTRICT COUNCIL 2017 I have audited the financial statements of Zvishavane Town Council for the year ended December 31, 2017.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Land Development Finding There was no evidence availed to support that Council sought ministerial approval for the development of Izayi Park phase 5, Makwasha as required by section 205 of the Urban Councils Act.
The Act states that before servicing, construction, selling or letting out of any land, Council shall submit the proposal to exercise such power and authority to the Minister for his approval.

In addition, there was no ministerial approval for a debt swap deal with ZINWA amounting to $128 000.

Council entered into a land-debt swap by allocating 32 high density stands at a concessionary rate to off-set ZINWA debt.
Risk/ Implication Financial loss as a result of unauthorized land development and debt swap arrangements by Council.

Demolition of improvements made by residents on allocated land without approval.

Recommendation Council should seek all necessary approvals before implementing land development projects.

Management response The observation is noted.


1.2 Councillors’ allowances Finding The Council could not explain a variance of $2 904 between the Councillors’ allowances summary which had $35 120 and the amount in the ledger of $38 024.

51 Risk/ Implication Fraud and errors may go undetected.

Recommendation The Council should investigate the variance.

Management response The observation is noted.


52 LOCAL BOARDS 53 RUWA LOCAL BOARD 2018 I have audited the financial statements of Ruwa Local Board for the year ended December 31, 2018.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Cellphones Finding The Council bought five (5) Titan tablets phones valued at $7 609 from a local supplier on November 09, 2018.

However, the tablets had not been delivered at the time of concluding the audit in February 2020.
Risk/ Implication Financial loss due to non-delivery.

Recommendation Council should make a concerted effort to recover either the tablets or funds paid.

Management response The matter was reported to the police to track down the supplier as he is no longer cooperating.

Council also wants to institute litigation to recover the tablets.

1.2 Fuel coupons Finding The Council could not account for fuel coupons amounting to 8 860 litres of diesel and 3 125 litres of petrol.
The Council resolved that the fuel coupons must be accounted for by the officers responsible for the custody and issuance of fuel.

In addition, the officer responsible for bulk fuel issuance was to be brought before a disciplinary hearing committee.

There was no evidence that management implemented the passed resolutions.

Risk/ Implication Financial loss to the Council.

Recommendation Council resolutions should be implemented.
54 Management response The Accountable Officer to pay or meet the cost of the unaccounted fuel coupons this being in compliance to the Council resolution.

2.0 PROCUREMENT OF GOODS AND SERVICES 2.1 Contract Performance Finding The Council engaged a local company to construct a water pipeline from Nora Dam to Ruwa Local Board.

However, I was not availed with the design diagram for the pipeline and the contract between the two parties.
On enquiry with management, I was informed that the Council had a disagreement with the contractor on contract performance and the matter was before the courts.

Risk/ Implication In the absence of a contract Council may face challenges in seeking legal redress.

Financial loss due to non-performance by the contractor.

Recommendation The Council should ensure that contractual documents are in place whenever they engage suppliers and service providers.
Management response Council has improved on the tendering and procurement and has recruited the services of the procurement manager and procurement clerk.

All the tender documents are now being filed as per section 69 of the public procurement and disposal of public assets Act [Chapter 22.23].

Procurement management unit is making sure that all contracts will be signed as a way of managing them.
55 RURAL DISTRICT COUNCILS 56 BINDURA RURAL DISTRICT COUNCIL 2018 I have audited the financial statements of Bindura Rural District Council, for the year ended December 31, 2018.

The following material issue was noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Motor vehicles Finding The Council had a motor vehicle, Mazda BT50 AAE7802, as part of its fleet.

I noted that the vehicle was registered in the name of the Council’s Administration Officer.
Risk/ Implication The Council may have challenges in proving ownership in case of dispute.

Recommendation The Council should ensure that its vehicles are registered in its name.

Management response This matter will be taken-up with Central Vehicle Registry (CVR).

57 BINGA RURAL DISTRICT COUNCIL 2019 I have audited the financial statements of Binga Rural District Council for the year ended December 31, 2019.

The following are material issues that were noted during the audit.
1.0 SERVICE DELIVERY ISSUES 1.1 Refuse collection Finding The Council did not have a refuse collection truck and relies on one tractor to service the entire jurisdiction.

In addition, the residents relied on communal bins in most areas as no plastic bins were given to residents.

Risk/ Implication Service delivery may be compromised.

Residents are exposed to health and safety hazards.

Recommendation The Council should invest in refuse collection equipment.
Management response Besides the tractor, Council also uses a 6-ton truck for refuse collection and is working on procuring a Compactor.

Council has already procured ten bins, which have been distributed within the Central Business District and is on the way of procuring thirty-five plastic bins.

Council will continue to procure more bins to suffice the need.

1.2 Council ambulance Finding The Council has one ambulance servicing four (4) clinics in the area.
Risk/ Implication Service delivery may be compromised and could lead to loss of life.

58 Recommendation Council should find ways to recapitalize and resource the Health Section.

Management response Council is working in conjunction with the Ministry of Health and Child Care as the principal authority in the transportation of patients.

We are however working on ways to fund the procurement of an ambulance.
59 BUBI RURAL DISTRICT COUNCIL 2016 I have audited the financial statements of Bubi Rural District Council, for the year ended December 31, 2016.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Policy documents Finding The Council was operating without key policy documents which include accounting policy and procedures manual, risk management policy, assets replacement policy and risk register.
Risk/ Implication Inconsistences in carrying out Council functions by staff.

Recommendation Management should ensure that key policy documents are in place.

Management response We fully appreciate the recommendation and the standardization that key policies will bring to our decision making.

Now that Councillors are in place and they have been inducted, we look forward to accelerating the development of the key policies mentioned above.
1.2 Cash purchases Finding I noted that the Council was acquiring some goods and services on cash basis.

However, employees were not remitting change from the purchase of goods and services.

An amount of $4 558 disclosed as staff debtors in the financial statements was in respect of non-remittances of change from cash purchases.

Risk/ Implication Misappropriation of cash.

60 Recommendation Management should put in place control mechanisms to ensure that all excess cash is reimbursed on time.
Management response We note the need to curb this habit of non-remittance of change.

We undertake to first validate the balance before recovering the monies through the offender’s salaries.

Our CBA provides for this remedy.

We also intend to look into the possibility of taking labour action against repeat offenders.

1.3 Value Added Tax (VAT) and Pay As You Earn (PAYE) returns Finding There was no evidence that the Council prepared and filed VAT and P.A.YE returns during the year under review.
Risk/ Implication Financial loss due to penalties and interest.

Recommendation The Council should ensure that tax returns are completed and filed within the statutory dead lines.

Management response We note this recommendation.

Zimra has gone on to an online platform for the submission of returns and we are still engaging them for the submission of backlog returns.

Compliance in this area is not optional as Zimra has multitudes of penalties for non-compliance.
2.0 SERVICE DELIVERY 2.1 Landfill Finding The Council had no landfill and as such it was fined USD10 000 by the Environmental Management Agency (EMA).

61 Risk/ Implication Health and safety hazards.

Financial loss due to fines and penalties.

Recommendation Council should put in place a landfill for proper waste management and to comply with laws and regulations.

Management response We note the recommendation and council understands the gravity of this matter.
We find ourselves in this predicament because of financial constraints.

We have identified and surveyed an area to construct a landfill and limited resources hindered us from progressing further.

An Engineered Landfill will cost a minimum of $1 000 000 and Council does not have those funds.

We have however included the landfill in our budget for 2019 in anticipation of 5% funding from the government to local authorities.
62 CHIRUMANZU RURAL DISTRICT COUNCIL 2018 I have audited the financial statement of Chirumhanzu Rural District Council for the year ended December 31, 2018.

The following material issue was noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Vacant posts Finding The post of Executive Officer Agriculture, Executive Officer Social Services, Admin Clerk, Driver and Lease clerk had been vacant for 8 years.

Risk/ Implication Service delivery may be compromised.
Recommendation Council should fill the vacant posts.

Management response We are in the process of filling the vacant posts but however economic hardships have been a major setback in filling the posts.

63 HURUNGWE RURAL DISTRICT COUNCIL 2018 I have audited the financial statements of Hurungwe Rural District Council for the year ended December 31, 2018.

The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1.


Segregation of duties Finding The Council’s workflow in some areas such as Finance lacked segregation of duties.

The cashier was responsible for receipting daily payments, counting the cash, performing daily reconciliations, making bank deposits and posting accounting transactions.

This was as a result of under staffing in the finance department.

Risk/ Implication Fraud and errors may go undetected.
Recommendation The Council should ensure that there is effective segregation of duties.

Management response The duties will be segregated to ensure accountability and proper controls are in place thereby ensuring checks and balances.

2.0 PROCUREMENT OF GOODS AND SERVICES 2.1 Purchase of Isuzu Trucks.

Finding The Council procured three (3) Isuzu single cab trucks without following formal tendering procedures.
In addition, the tender reference number used on the procurement of the Isuzu trucks was in fact related to the purchase of a different set of vehicles, a BIAC for the Council chairperson and a 6 sitter SUV for the CEO.

Risk/ Implication Potential financial loss due to fraud.

64 Noncompliance with tender/ procurement regulations.

Recommendation The Council should comply with procurement regulations.

Management response The case is under consideration by Council.
65 HURUNGWE RURAL DISTRICT COUNCIL 2019 I have audited the financial statements of Hurungwe Rural District Council for the year ended December 31, 2019.

The following material issue was noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Roads and Engineering – Roads construction and maintenance road tool kit Finding Council lacks a complete road tool kit to carry out its mandate.
An assessment of the Council’s equipment revealed that it had less than 20% capacity to undertake road maintenance and construction.
The assessment revealed the following: - currently not available at council - currently not available at council - 2 tractors available - currently not available at council - currently not available at council - currently not available at council - currently not available at council - 1 grader exists Lorry Refuse truck Tractor Pothole patch machine Hand rammer Compactor or iron roller Motorised water bowser Grader Risk/ Implication Service delivery is compromised.
Recommendation The Council should develop strategies to ensure that it is adequately resourced.

Management response Noted.

Council is working on a recapitalisation programme and we have since procured a borehole drilling rig and backhoe as part of our efforts to build capacity in terms of service delivery equipment.

66 MANGWE RURAL DISTRICT COUNCIL 2017 I have audited the financial statements of Mangwe Rural District Council for the year ended December 31, 2017.
The following material issue was noted during the audit.

1.0 SERVICE DELIVERY 1.1 Primary and secondary schools Finding I noted that 35% of primary school pupils walked on average 10km to school whilst 45% of the secondary school pupils walked on average 15km to school.

On enquiry, management revealed that available schools were few and dotted across the district.

Risk/ Implication Service delivery may be compromised.
Recommendation The Council should liaise with the Ministry of Primary and Secondary Education for establishment of more schools.

Management response The local authority has various schools under construction both primary and secondary and they are at various levels of completion.

Council has engaged development partners and diasporians in the construction of schools.
However, it should be appreciated that establishment of schools is also guided by the policies of the Ministry of Primary and Secondary Education.

67 MARONDERA RURAL DISTRICT COUNCIL 2018 I have audited the financial statements of Marondera Rural District Council for the year ended December 31, 2018.

The following material issue was noted during the audit.

1.0 SERVICE DELIVERY 1.1.


Dumpsite Finding The dumpsite at Mahusekwa Growth Point was not compliant with the provisions of section 97 of the Environmental Management Act [Chapter 20:27], which requires a full Environmental Impact Assessment to be done and a certificate to be acquired prior to operations.

Risk/ Implication Financial loss due to penalties and fines from the regulatory authority.

Recommendation The Council should comply with the Environmental Management Act [Chapter 20:27].
Management response Noted.

The Council had an undertaking and agreement with EMA regarding the landfill which culminated in EMA charging Council on an annual basis for the use of the landfill after meeting all the other requirements.

Currently the Council is working on the EIA report for the landfill for submission to EMA.

The Council has since started working on the EIA.


68 MATOBO RURAL DISTRICT COUNCIL 2017 I have audited the financial statements of Matobo Rural District Council for the year ended December 31, 2017.

The following material issue was noted during the audit.

1.0 REVENUE COLLECTION, MANAGEMENT AND DEBT MANAGEMENT 1.1 Mining claims register Finding The Council was operating without an up-to-date and comprehensive mining claims register which enables it to invoice and collect unit tax due to it.
Risk/ Implication Failure to collect all revenue due to the Council.

Recommendation Council should ensure that there is an up-to-date and comprehensive mining claims register.

Management response Council is already working on updating the list of mining claims within the district which we think shall be completed by end of July 2018, all things being equal.
69 MUZARABANI RURAL DISTRICT COUNCIL 2018 I have audited the financial statements of Muzarabani Rural District Council for the year ended December 31, 2018.

The following material issue was noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Bank reconciliation statements Finding The Council only prepared bank reconciliation statements for the month of December 2018.

Bank reconciliation statements for the other previous months were not prepared.

Risk/ Implication Errors made may go undetected.


Recommendation Bank reconciliation statements must be prepared every month.

Management response During 2018, there was a migration from Pastel Partner to Sage Evolution in accounting software which affected monthly data entries.

Management will make sure these are done promptly and monthly.

70 PFURA RURAL DISTRICT COUNCIL 2018 I have audited the financial statements of Pfura Rural District Council for the year ended December 31, 2018.
The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1.

Contracts of employment Finding I noted that twenty (20) members of staff did not have contracts of employment as required by Section 67 and 68 of the Rural District Councils Act [Chapter 29:13].

Risk/ Implication Council may have difficulties in seeking legal recourse in the event of disputes.

Irregular employment of staff.


Recommendation The Council should ensure that all staff members have contracts of employment.

Management response Employment contracts for the said employees to be signed.

2.0 SERVICE DELIVERY 2.1 Roads and Engineering – Roads construction and maintenance road tool kit Finding The Council did not have most of the equipment required for road construction and maintenance.
The list of roads tool kit for the Council is given below: Tool Kit Tipper Lorry Backhoe loader Refuse truck Tractor Pothole patch machine Status currently not available at council currently not available at council currently not available at council (funds being sourced) currently not available at council 2 impaired tractors available currently not available at council 71 Hand rammer Compactor or iron roller Motorised water bowser Grader currently not available at council currently not available at council currently not available at council 1 grader exists but impaired Risk/ Implication Service delivery is compromised due to lack of capacity.
Recommendation The Council should prioritise acquisitions of road construction and maintenance equipment.

Management response We concur with audit finding.

Plans are underway where at the moment a back hoe loader has been procured awaiting delivery.

These other pieces are part of Council’s procurement plan.

72 TONGOGARA RURAL DISTRICT COUNCIL 2018 I have audited the financial statements of Tongogara Rural District Council for the year ended December 31, 2018.
The following are material issues that were noted during the audit.

1.0 GOVERNANCE ISSUES 1.1 Raylands stands development Finding Council entered into an arrangement with a land developer for the development of 1322 residential stands at Raylands Estate.

As part of the agreement, the Council would pay the developer for the services with 50% of the developed stands (661).
However, I was unable to determine the basis or economic rationale under which this arrangement was made as no supporting documents were availed for my review.

These documents would have assisted to confirm that a due diligence exercise and a cost benefit analysis was done.

Risk/ Implication Financial loss and fraud emanating from irregular arrangements.

Recommendation Council should maintain and avail documentary evidence of the arrangement.
In addition, Council should ensure that due diligence exercises are conducted before entering into a contract.

Management response Council will in future strictly adhere to state procurement procedures and due diligence will be conducted before entering into contracts.

1.2 Asset register Finding The Council maintained its asset register on an excel spreadsheet which was not password protected.

Crucial information such as serial and asset numbers were missing.
Risk/ Implication Theft of assets through manipulation of information.

73 Recommendation Council should maintain a permanent asset register which cannot be easily manipulated.

Management response Serials will be captured and the registers will be input into the pastel system by year end.

74 ZAKA RURAL DISTRICT COUNCIL 2017 I have audited the financial statements of Zaka Rural District Council, for the year ended December 31, 2017.

The following material issue was noted during the audit.
1.0 EMPLOYMENT COSTS 1.1 Pension contribution Finding Pension deductions from employees were not being remitted to the relevant pension fund.

For the year ended 31 December 2017, the outstanding pension contributions balance was $459 894.

Risk/ Implication Nonpayment of pension benefits to retired employees.

Recommendation The Council should ensure that pension contributions are paid.

The Council should also consider to make payment plans with pension funds to ensure continuity in service provisions.
Management response Noted Council to engage UCPF and do a payment plan Major constraint is poor revenue inflows due to poor economy in the country but however Council will remit what is due to UCPF on monthly basis.

75 APPENDIX A AUDITS IN PROGRESS OR BEING FINALISED AS AT JANUARY 16, 2021 NAME OF LOCAL AUTHORITY CITY COUNCILS 1.

2.

3.

4.

5.

6.

Bulawayo City Council Gweru City Council Kadoma City Council Kwekwe City Council Masvingo City Council Mutare City Council MUNICIPAL COUNCILS 7.

8.

9.

10.
8.

9.

10.

11.

12.

13.

Chegutu Municipality Chitungwiza Municipality Gwanda Municipality Kariba Municipality Marondera Municipality Redcliff Municipality Victoria Falls Municipality TOWN COUNCILS 14.

15.

16.

17.

18.

19.

20.

Chipinge Town Council Chiredzi Town Council Karoi Town Council Norton Town Council Plumtree Town Council Shurugwi Town Council Zvishavane Town Council LOCAL BOARDS 21.

22.

23.

Hwange Local Board Lupane Local Board Ruwa Local Board RURAL DISTRICT COUNCILS 24.

25.

26.

27.
25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.
Beitbridge Rural District Council Buhera Rural District Council Bubi Rural District Council Bulilima Rural District Council Chaminuka Rural District Council Chirumanzu Rural District Council Chikomba Rural District Council Hwange Rural District Council Kusile Rural District Council Mangwe Rural District Council Mazowe Rural District Council Mhondoro-Ngezi Rural District Council 76 YEAR 2016-2017 2016 2015-2016 2018 2019 2016-2018 2019 2017 2017 2019 2017-2018 2015-2018 2019 2017 2017 2018 2019 2016 2017 2018 2015 2018 2019 2018 2017 2017 2017 2018 2018 2018 2016 2014 2018 2018 2017 NAME OF LOCAL AUTHORITY 36.
37.

38.

39.

40.

41.

42.

43.

Mutare Rural District Council Muzarabani Rural District Council Rushinga Rural District Council Tshlotshlo Rural District Council Vungu Rural District Council Zaka Rural District Council Zibagwe Rural District Council Zvimba Rural District Council YEAR 2017 2019 2018 2018 2018 2018 2017 2018 77 APPENDIX B ACCOUNTS NOT YET SUBMITTED FOR AUDIT AS AT JANUARY 16, 2021 NAME OF LOCAL AUTHORITY CITY COUNCILS 1.

2.

3.

4.

5.
2.

3.

4.

5.

Bulawayo City Council Gweru City Council Harare City Council Kadoma City Council Mutare City Council MUNICIPAL COUNCILS 6.

7.

8.

9.

Chitungwiza Municipality Gwanda Municipality Marondera Municipality Redcliff Municipality TOWN COUNCILS 10.

11.

12.

13.

14.

Beitbridge Town Council Chipinge Town Council Chiredzi Town Council Gokwe Town Council Shurugwi Town Council LOCAL BOARDS 15.

16.
16.

Epworth Local Board Hwange Local Board RURAL DISTRICT COUNCILS Bubi Rural District Council Buhera Rural District Council Bulilima Rural District Council Chimanimani Rural District Council Chipinge Rural District Council Chiredzi Rural District Council Chirumhanzi Rural District Council Guruve Rural District Council Gutu Rural District Council Hurungwe Rural District Council Hwange Rural District Council Insiza Rural District Council Kusile Rural District Council 17.

18.

19.

20.

21.

22.

23.

24.


25.

26.

27.

28.

29.

30.

Makonde Rural District Council 31.

Masvingo Rural District Council 32.

Matobo Rural District Council 33.


Mberengwa Rural District Council 78 YEAR 2018-2019 2017-2019 2018 & 2019 2017-2019 2019 2018 & 2019 2018 & 2019 2019 2019 2018 & 2019 2018 & 2019 2018 & 2019 2017 - 2019 2018 & 2019 2018 & 2019 2016-2018 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2018 & 2019 2016-2019 2018 & 2019 2015-2019 2016-2019 2018 & 2019 2018 & 2019 2018 & 2019 NAME OF LOCAL AUTHORITY 34.

Mbire Rural District Council 35.


Mhondoro-Ngezi Rural District Council 36.

Mutare Rural District Council 37.

Umguza Rural District Council 38.

Zibagwe Rural District Council YEAR 2018 & 2019 2017-2019 2018 & 2019 2017-2019 2016-2019 79