HomeBusiness DigestNssa's books in shambles

Nssa’s books in shambles

Godfrey Marawanyika

COMPTROLLER and Auditor General Eric Harid says the books of the National Social Security Association (Nssa) are not in order.



ca, sans-serif”>Harid has expressed concern over the financial status of Nssa, where he has said record keeping and controls over investment are inadequate.

So serious is the lack of proper record keeping that Harid has in places declined to comment on the status of the organisation’s books.


In his latest report for the audited 2001 period, the most recent to be examined, to the Minister of the Public Service and Social Welfare July Moyo, Harid said contribution income was appointed on an arbitrary basis of 80% for the pension and other benefits scheme and 20% for the workers’ compensation insurance fund.


He said this violates Section 28 of the Nssa Act.

The Act stipulates that contributions should be paid to each scheme separately.


“Premium income is brought to account on a receipt basis,” Harid said in his report. “This policy has resulted in the scheme not accounting for contribution debtors as it only recognises contributions received. Claims costs recognised in the financial statements are only those actually incurred.


“This policy distorts the claims amount as claims incurred but not reported are not taken cognisance of by way of, for example, setting up a provision for claims incurred but not reported based on the schemes experience of the levels of such claims.”


He said it was further observed that record keeping and controls over investments were inadequate.


“Typically, I noted that some adjustments made in the several general ledger were not supported by some documents and some entries in the investment ledger were not posted to the general ledger,” Harid said.

“Because of the significance of the matters discussed above, I do not express an opinion on the financial statements.”


Although Nssa was enacted in 1994 with the main aim of providing basic comprehensive protection and coverage to all Zimbabweans in the employable market, worker’s intended benefits are greatly compromised because of poor record keeping, the report said.


On the status of the Workers Compensation Insurance Fund, Harid said claims costs recognised in the financial statements were only those actually incurred, adding that this policy distorted claims amounts as claims incurred but not reported were not taken cognisance of.


“It was further observed that the record keeping and controls over investments are inadequate,” he said. “Typically, I noted that some adjustments made in the general ledger were not supported by source documents and some entries in the investment ledger were not posted to the general ledger.


“I observed that there was no system of control over premium debtors on which I could rely for the purpose of my audit. I was thus unable to satisfy myself that all premium income and premium debtors had been brought to account.”


Nssa chairman, pro-minent businessman and lawyer Edwin Manikai, in the same report admitted that arbitrary apportionment of 80% to the pension and other benefits, and 20% to the Workers Compensation Fund would continue to be a qualification until new information technology system was put in place that would be able to allocate money between schemes as provided by law.


He said he was expecting the system to be in place by the end of this year. Turning to investment income, Manikai said the inadequate record keeping and controls surfaced as a result of a forensic audit.


He said the board had commissioned this, adding that recommendations by the auditors were however implemented.

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