NAC owes a total amount of K23.6 to ZRA and NAPSA- AG

The Auditor General’s report on the accounts of Parastatal Bodies and other Statutory Institutions from 2013 to 2016 has reviewed that the National HIV/AIDS/STI/TB Council (NAC) owed a total amount of K23, 647, 797 in statutory obligations and penalties to the Zambia Revenue Authority (ZRA) and NAPSA.

A review of correspondence revealed that the global funding disbursed K8, 221, 851 to the council through the Ministry of Finance for payments of salaries to district Aid coordinating Advisors and payments of statutory debts in 2014.

Despite NAC management having engaged the Ministry of Finance, the funds had not been received as at 31^st August 2017.

During the period under review, seven payments in amounts totaling K197, 591 made were not supported with documents such as receipts, good received noted contracts service level agreements and distribution lists contrary to Financial Regulations No 45 and 52 of 2006.

In the same period, amounts totaling K118, 440 were paid to four officers for them to undertake various activities however, as at 31^st August 2017, no activity reports were availed for audit.

In the estimate of revenue and expenditure for financial years ended 31^st December 2014, 2015 and 2016 provisions totaling K177, 102, 505 were made to cater for activities at the council against which amounts totaling K67, 951, 095 were released resulting in an defunding of K109, 151, 410.

In addition, the council received amounts totaling K81, 592 in 2016, K16, 628 in 2015 and K47, 281 in 2014 as other income.

The council did not submit annual reports to the minister for the financial year ended 31^st December 2014, 2015 and 2016 contrary to the national HIV/AIDS/STIs/TB/ Council Act No 10 of 2002.

Part 7 Section 18 of NAC Act stipulates that as soon as it is practicable, but not later than six months after the expiry of each financial year, the council shall submit to the minister a report concerning its activities during such financial year.

A review of the work plans for the period under review revealed that out of the 88 planned activities not achieved as of may 2017 due to inadequate funding.

In this regard some key activities meant to mitigate the spread of HIV/AIDS/STI/TB could not be undertaken.

It was observed that the council operated with a deficit of K2, 620, 133 and K8, 906, 084 in 2014 and 2015 respectively.

However a surplus of K498, 257 was recorded in 2016.

This was mainly attributed to the reduction in administrative costs from K26, 542, 733 in 2015 to K13, 039, 103 in 2016.