‘NBC not maintaining fixed register of assets’

The National Broadcasting Commission failed to maintain a fixed register of assets worth more than K111 million for several years, according to the Report of the Auditor-General for 2016.
Auditor-General Philip Nauga said that the 2014 audit – which was done in 2016 – found that NBC had failed to properly record, account and control movement of assets including land and buildings, plant and equipment, furniture and fittings and motor vehicles.
“Accordingly, the cost of assets totalling K111,978,884 and accumulated depreciation balance totalling K75,528,522 were carried over in the general ledger since 2012 without any movements,” the report said.
“The issues were noted in my reports including disclaimer of opinion within those years.
“Given the lack of a fixed assets register (FAR), the assets additions, disposals, transfer of assets between stations and depreciation of the assets were not properly accounted for.
“Consequently, in the current year’s audit, I was unable to determine the completeness, existence, accuracy and valuation of fixed assets at year’s end.
“The balances of the different categories of fixed assets in the trial balance were not supported by a fixed assets register.
“Therefore, I was unable to satisfy myself on the completeness, existence, accuracy and valuation of fixed assets balances at year end.
“In addition, failure to maintain a fixed assets register created a weak internal control environment which may result in assets being abused or stolen without being detected.”