An audit into the 19 Local Councils budgetary performance for 2017 during the mobilisation of their Own-Source Revenue (Tax &Non-Tax Revenue) was poor, according to the Auditor General Lara Taylor-Pearce. After a comparative analysis between the budgeted and actual own-source revenue generated, it showed that the actual revenue was less than the budgeted amounts by approximately 42% (Le16.7billion), this means the Councils were only able to collect 58% (Le23.5billion) of the own-source revenue that they budgeted to collect in 2017. Similarly, there was a 3% drop in own-source revenue generation in 2017 when compared to 2016 as revenue generated dropped from Le24.3billion in 2016 to Le23.5billion in 2017. It was however observed that even though there was an overall drop in revenue generation, 11 Councils increased their performance in the revenue mobilisation drive in 2017 when compared to 2016. The poor performance in revenue mobilisation, she said could have been attributed to over-ambitious budgeting, emanating from the use of unrealistic basis of budgeting or it could be that controls were not in place for the proper collection, banking and accounting of revenue. “The Councils should therefore embark upon a massive campaign regarding taxes and other sources of revenue and either, restructure its current workforce, or recruit the services of more collectors for greater revenue generation” she said. The Auditor General however noted that it is also important that the controls surrounding budgeting, collection, banking, and recording of own-source revenue are strengthened. This she added could be done by setting realistic targets using first hand data, cumulative experience and instituting proper segregation of duties, carrying out spot checks, doing regular reconciliation and supervision of the entire process. Furthermore during a review of personnel records, her audit team observed that two core staff of the Port Loko District Council, the Valuation Officer and Accountant had not received their salaries since they were transferred to the Council by the Local Government Service Commission (LGSC) in 2017. “It is apparent that the staff in question may be less motivated to effectively contribute to the revenue mobilisation process. Thus, there is the risk that Council’s revenue base may greatly dwindle and may not be able to garner enough resources to meet its planned commitments” she said. As the personnel in question are key to ensuring a sound and robust financial management system, she recommended that the Chief Administrator in collaboration with the LGSC ensure that steps are taken to regularise their emolument situation. The Chief Administrator in his response to their audit queries stated that the two core staff of the council, the Valuation Officer and the Accountant were not paid salaries because the Local Government Finance Department did not include their names in the salary payroll of the council. However, the Council was paying them out of their own-source revenue and other funding windows. Also, the Chief Administrator has taken up their non-payment of salary with the Local Government Finance Department which will surely be resolved. However, evidence to justify that council have been paying these staff from their own- source revenue and other funding windows was not made available for verification. Furthermore, correspondence to confirm that this issue has been communicated to the Local Government Finance Department was not made available for verification.
By Zainab Iyamide Joaque
Monday January 21, 2019.