[Zimbabwe] Auditor-General flags missing payroll records for Harare City Council’s $2 billion wage bill

In Zimbabwe, Harare City Council has failed to provide payroll records supporting its ZWL53.48 billion (US$2.06 billion) wage bill, making it impossible for the Auditor-General to verify one of the local authority’s biggest areas of expenditure, iHarare reports.

The Auditor-General’s latest report highlights the issue and raises concerns over the reliability of the council’s 2022 financial statements.

The report, seen by The Herald, states that the council recorded employee costs amounting to ZWL53.48 billion in its financial statements but did not produce the payroll records required to support the expenditure during the audit.

In the absence of the underlying documentation, the Auditor-General reportedly said there was insufficient evidence to determine whether the reported salary expenses and employee-related obligations were accurate and complete.

According to the report, the lack of payroll records prevented auditors from confirming whether the figures presented in the financial statements fairly reflected the council’s actual employee costs. The missing records have left auditors unable to verify the accuracy of billions of dollars allocated to staff costs.

The Auditor-General noted that the absence of supporting documentation limited the audit process and made it impossible to express assurance on the reported employment expenses. Its findings reportedly follow persistent concerns about Harare City Council’s growing wage bill, which the Government and previous audit reports have criticised.

The local authority has for some years faced accusations of maintaining an oversized workforce, with salaries consuming a significant share of municipal revenue.

Critics have stated that the high wage bill leaves the council with fewer resources to improve essential services, repair ageing infrastructure and invest in development projects, compounding ongoing service delivery challenges across the capital.

Source: iHarare

(Link via original reporting) 

In Zimbabwe, Harare City Council has failed to provide payroll records supporting its ZWL53.48 billion (US$2.06 billion) wage bill, making it impossible for the Auditor-General to verify one of the local authority’s biggest areas of expenditure, iHarare reports.

The Auditor-General’s latest report highlights the issue and raises concerns over the reliability of the council’s 2022 financial statements.

The report, seen by The Herald, states that the council recorded employee costs amounting to ZWL53.48 billion in its financial statements but did not produce the payroll records required to support the expenditure during the audit.

In the absence of the underlying documentation, the Auditor-General reportedly said there was insufficient evidence to determine whether the reported salary expenses and employee-related obligations were accurate and complete.

According to the report, the lack of payroll records prevented auditors from confirming whether the figures presented in the financial statements fairly reflected the council’s actual employee costs. The missing records have left auditors unable to verify the accuracy of billions of dollars allocated to staff costs.

The Auditor-General noted that the absence of supporting documentation limited the audit process and made it impossible to express assurance on the reported employment expenses. Its findings reportedly follow persistent concerns about Harare City Council’s growing wage bill, which the Government and previous audit reports have criticised.

The local authority has for some years faced accusations of maintaining an oversized workforce, with salaries consuming a significant share of municipal revenue.

Critics have stated that the high wage bill leaves the council with fewer resources to improve essential services, repair ageing infrastructure and invest in development projects, compounding ongoing service delivery challenges across the capital.

Source: iHarare

(Link via original reporting)