Annual Audit Report 2018 (English Version)

The FY 2018 Annual Audit Report of the Southwest State of Somalia sets out the mandate, scope, and key findings of the audit work conducted by the Office of the Auditor General. The report presents the examination of the consolidated financial statements of the Southwest State Government for the fiscal year, undertaken in accordance with the International Public Sector Accounting Standards (IPSAS) cash basis and the Public Finance Management Act. The audit assessed compliance with applicable laws and regulations, the accuracy of financial reporting, and the effectiveness of revenue collection and expenditure controls.

The audit aimed to determine whether the State complied with relevant financial legislation, whether revenue recorded in the financial statements matched underlying documents, and whether expenditure had been properly approved and supported. In addition, the audit evaluated whether payments were substantiated by adequate vouchers and whether payroll and other controls were functioning effectively.

Findings from the audit highlighted persistent weaknesses in financial documentation, control processes, and compliance practices across government entities. These included gaps in supporting evidence for payments, inconsistencies in revenue reporting, and deficiencies in financial governance. The report also provides recommendations intended to strengthen internal controls, improve transparency, and enhance accountability within the public financial management system.

Overall, the FY 2018 audit underscores the need for more robust financial controls, improved institutional capacity, and stronger adherence to PFM procedures to ensure reliable financial reporting and effective stewardship of public resources.

The audit examines the preparation and presentation of financial statements, evaluates internal controls, and verifies the accuracy, completeness, and reliability of financial information submitted by ministries, departments, agencies, and publicly funded bodies. The report highlights instances of non-compliance, weaknesses in expenditure control, gaps in revenue management, and areas where financial records did not meet statutory requirements. These findings provide a factual basis for understanding the State’s fiscal performance and the level of adherence to public financial management rules.