68 Furthermore, revenue and expenses for ZINARA were not being matched as revenue was being accounted for on a cash basis and while expenses were being accounted for on an accrual basis
69 The Road Administration disposed of three (3) motor vehicles to its managers and the benefit arising from disposal of vehicles was not subjected to income tax. This was in violation of the Income Tax Act [Chapter 23:06]. In addition, the vehicles disposed were still in the name of the Road Administration. According to the Vehicle Licensing and Registration Act [Chapter 13:14], when there is a change of ownership of vehicles, the new owner shall change ownership within 14 days from the date of purchase.
70 ZINARA Management was entering into business arrangement with third parties without entering into contracts.
71 ZINARA Management did not avail vouchers for audit.
72 The document filing and retrieval system for the safe keeping of the Administration’s documents were not adequately designed and operated.
73 The Administration was flouting approved policies and procedures in paying benefits and allowances.
74 There was no evidence of approval from the parent ministry for the representation allowances that were being paid to the board members whenever they attended workshops and other non-board/committee meetings.
Staff Over runs and staff expenses
75 Generally senior staff were overpaid resulting in massive overheads for ZINARA which were not consistent with fiscal prudential levels defined in the law.
76 Section 15 (d) of the Roads Act [Chapter 13: 18] states that the Administration shall use the Road Fund in meeting any salaries, allowances and other expenses of the Road Administration provided that expenditure of this purpose shall not exceed 2.5% of the revenue of the Road Fund in any financial year.
77 ZINARA’s average wage expenditures were 11% of total expenditure, being 8.5% over the statutory limit.
78 During the financial year 2013, seven senior managers received gym equipment worth USD $4 000 per person. A total amount of USD $27 000 was paid to OK Mart from ZINARA’s account.
79 The auditors noted there was no provision of gym equipment in the contracts of the individuals.
80 Furthermore, the auditors noted that the concerned employees already had a contractual paid benefit to any gym or sports club of their choice. The gym allowance was not processed through the payroll and the payment voucher was not acquitted.
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