Financial reporting in LGAs improves, Bunge told

DODOMA: TANZANIAN local government authorities have made significant strides in improving their financial reporting, as demonstrated by a substantial rise in unqualified audit opinions over the past three years.

This progress was highlighted by Deputy Minister of State in the President’s Office (Regional Administration and Local Government), Festo Dugange, in Parliament yesterday.

In the 2019/2020 financial year, 124 local government authorities, representing 67 per cent of all audits, received unqualified opinions.

These “clean” or “unmodified” opinions, signifying that an auditor has found the financial statements to be fairly presented and in compliance with generally accepted accounting principles (GAAP), reflect a commitment to financial transparency and accountability.

By the 2022/2023 financial year, the number of unqualified opinions had surged to 181, a remarkable 98.4 per cent of all audited reports, the Deputy Minister noted.

This impressive increase underscores the concerted efforts of local government authorities to strengthen their financial management practices and adhere to required accounting standards.

Conversely, qualified and adverse opinions, which indicate material misstatements in financial reporting, have plummeted.

From 61 such opinions (33 per cent) in 2019/2020, only three (1.6 per cent) were issued in 2022/2023.

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This dramatic decrease further illustrates the progress made in addressing financial discrepancies and improving the accuracy of local government reporting.

Addressing measures taken following the Controller and Auditor General’s (CAG) 2022/2023 audit reports, Minister Dugange stated that 294 employees, including directors and accountants, faced disciplinary action.

These measures included 20 dismissals, five jail sentences, 30 court arraignments, one demotion, 100 reprimands, 14 salary deductions, and 114 referrals to the Prevention and Combating of Corruption Bureau (PCCB) for investigation.

The Deputy Minister’s remarks came in response to CCM Special Seats legislator Subira Mgalu, who inquired about actions taken against accounting and revenue officers in local governments due to the prevalence of qualified, adverse, and disclaimer opinions in CAG-compiled audit reports.