Local Government Audit
The Auditor General is also responsible for auditing Botswana’s 28 Local Authorities consisting of 16 Councils and 12 Land Boards, in accordance with the Tribal Land Regulations Act [section 32 (5)], District Councils Act [Section 48(5) cap 40(01)]and the Town Councils Act [Section 104 (5) [cap 40(02)].
CITY & TOWN COUNCILS*
- Gaborone City 1. Central 1. Kgalagadi
- The City of Francistown 2. Northwest 2. Ghanzi
- Jwaneng 3. Chobe 3. Ngwaketsi
- Lobatse 4. North East 4. Rolong
- Selibi-Phikwe 5. Ghanzi 5. Malete
- Sowa Township Authority 6. Kgalagadi 6. Tlokweng
- Southern 7. Kweneng
- Kweneng 8. Kgatleng
- South East 9. Ngwato
- Kgatleng 10. Tati
* Includes Township Authorities
The Authorities are established under the three Acts of legislation outlined below, with the Ministry of Local Government responsible for Town/City Councils and District Councils and the Ministry of Lands and Housing responsible for the Land Boards. The Acts of legislation are:
- Town Councils Regulations Cap. 40:02 [section 104(1&2] – governs the Town/City Councils (including Township Authorities);
- Local Government (District Councils) Act Cap. 40:01 [section 48(1&2)] – governs District Councils; and
- Tribal Land Regulations Cap. 32:02 [section 32(1&2)] – governs Land Boards.
The above mentioned Acts require the management body of the respective Local Authorities to keep proper books of accounts and to prepare the Annual Financial Statements to account for how they utilized the funds allocated to them for the provision of services within their mandates.
Town/City Councils and District Councils are generally responsible for providing the following services in towns and districts:
- primary and secondary education;
- Sanitation facilities;
- water; and
- construction and maintenance of roads.
Land Boards on the other hand are responsible for providing the following services in the districts:
- allocating residential and business plots;
- allocation of farms and ranches; and
- issuance of business licenses.
It is the Local Authorities Audit Division’s responsibility under the Finance and Audit Act [Sections 29 and 38] to conduct the audit and to satisfy themselves that the Local Authorities have acted in accordance with the requirements of the law. The Division may also exercise powers conferred on the Auditor General by Section 124(2) of the Constitution as well as amplified by Sections 32 and 38 of the Finance and Audit Act, relating amongst other things to the Auditor General’s accessibility to information, documents, offices and other premises subject to his audit.
Sub-Sections 3 and 4 of the Acts requiring the Local Authorities to prepare and submit the Annual Financial Statements for audit also require the Auditor General to audit the said accounts within twelve months of their submission to him. Upon receipt of the accounts, the Local Authorities’ Audit Division communicates with the Local Authorities to propose the dates of audit and engagement letters are sent to confirm the agreed period of audit. Planning Memoranda and programmes are also prepared during this time.
Execution of the audit is carried out by following the planning memos, audit programmes and in accordance with the International Auditing Standards. We conduct a three tier review of the working papers by the Team Leader and the Coordinator in the field and the Assistant Auditor General in the office.
Draft audit reports are sent to the Local Authorities for review before their discussion with the Auditors. The final audit reports incorporate the responses from the Local Authorities on the draft audit reports and are then sent to the Local Authorities where the Chief Executive Officers table them before the Full Council or Board meetings.
[Audit process in diagrammatic form]
Local Authorities Public Accounts Committee (LAPAC)
Subject to the laws governing the public service, the Minister of Local Government may and has established the Local Authorities Public Accounts Committee (LAPAC). This Committee is not a parliamentary body and members of LAPAC are selected based on a recommendation from the Local Authorities Finance Unit (within the Ministry of Local Government) to the Minister of Local Government. This Committee was established by Act No. 10 of 1999. Its functions include:
- the examination of accounts of the Local Authorities;
- the examination of the Auditor General’s reports and audited Financial Statements one month after they have been presented before the Full Council or the Board; and
- Reporting results of their examinations to the Minister of Local Government.