The evaluation on the trend of existence of unauthorized expenditures in central government of Namibia
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Date
2020
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University of Namibia
Abstract
Unauthorised expenditures have been a common dilemma occurring in the central
government ofNamibia and other countries. The objective of this study was to examine
the trends of unauthorised expenditure, determine the root causes, and propose strategies
to reduce this unauthorised expenditure. Unauthorised expenditure patterns by 0 /M/ As
were evaluated using descriptive statistics in the form of charts and tables. Trend analysis
was based on Auditor-General reports for the period of 2004-2014. Qualitative content
analysis included establishment of causes of unauthorized expenditure; controlling and
monitoring mechanisms; awareness of policies and regulations and current fmancial
systems in use.
The study revealed that the unauthorised expenditures were occurring because of non compliance with existing and used acts, policies, laws, rules and regulations. Unauthorised
expenditures were caused by dishonesty and disrespectfulness towards the usage of these
acts, policies, laws, rules and regulations. Existing acts, policies, laws, rules and
regulations should be renewed, amended or else the government introduces other
regulations. This could be done through migrating from the existing fmancial framework
which is the State Finance Act, 1991 (Act 31 of 1991) with its regulations.
Honesty, transparency and accountability should be practiced and promoted in the
development and disclosure of financials to make them easier and user friendly. In
addition the internal controls already in existence surrounding these unauthorised
expenditures need to be adhered to, namely: Virementation, whereby underspending
(savings) should be utilised fully to diminish overspending (unauthorised expenditures) in
support of proper planning and financial management. It further recommends each 0 /M/ A
to develop a monitoring and evaluation policy framework and regularly carry out
monitoring and evaluation on financial systems and books.
Description
A thesis submitted in partial fulfilment of the requirements of the Master of Business Administration in Finance
Keywords
Unauthorised expenditure, Central government of Namibia, Namibia, University of Namibia