The National Local Government Finance Committee (NLGFC) has successfully ensured preparation and submission of 2017-18 and 2018-19 for all the 35 Local Councils Financial Statements to National Audit Office for audit.
The remarks were made by the Executive Director of NLGFC, Mr Alifeyo Banda during the quarterly NLGFC staff review meeting held on Monday, 16th March 2020 in Lilongwe.
Alifeyo Banda said the submission of the Financial Statements from all the thirty-five councils were an exceptional achievement as it was the first time this had happened.
In his remarks, Director of Finance for the NLGFC Kondwani Santhe said the ‘submissions are in line with the financial legal framework provisions of the Public Finance Management Act, (2003), the Public Audit Act, (2003), and Local Government Act, (1998)’. He said the financial legal framework provides that councils are to keep proper accounting records, which discloses with reasonable accuracy at any time the financial position of the Council and ensures that the financial statements are prepared and submitted for audit at least within three months after end of the financial year.
The submissions come following increased focus by the NLGFC to enforce compliance by councils to the expected legal mandate following years in the past where other councils had not prepared financial statements, accruing between 1-5 years.
The Executive Director has since assured the Government, all Malawians and Development Partners that the NLGFC will ensure that all local councils in Malawi are audited regularly by the National Audit Office and that Controlling Officers and other officers in local councils found to be on the wrong side of the financial laws will be held to account and taken to task for any deviance.
The National Local Government Financial Committee is mandated by the Constitution (Sec. 149) to facilitate fiscal decentralisation, development, financial management and compliance through resource mobilisation, allocation, disbursement and accounting in Local Councils.
The National Audit Office confirmed in a separate interview receipt of the financial statements and had since commenced audits in the councils.
