BIUST in credit cards scandal

Yvonne Mooka
Wednesday, 12 July 2017
BIUST in credit cards scandal

The Office of the Auditor General has found that Botswana International University of Science and Technology [BIUST] maintained two credit cards with First National Bank.

However, they could not ascertain when they should be used and who should authorise expenditure limits since they were not furnished with a policy on their usage.

In response Management stated that the credit card account was closed in November 2015, but did not furnish the auditors with written correspondence made to the bank. Further, the auditors observed that FNB Capital Call Account had a reconciling item amounting to P26 192 going back many years. BIUST management argued that it was an old reconciling item ‘which would be proposed for write-off as attempts to resolve it were not successful.’

 

Bank signatories

Auditors observed that four officers who had left the University still appeared as signatories to the bank accounts, thereby exposing the University to the risk of possible act of dishonesty. There were also issues of completeness of income where the University did not invoice students individually. Auditors realised that the income was not recorded in full and the receipting system was not integrated with the accounting package. Management in response agreed with the observation and stated that plans were underway to resolve the accounting challenges experienced by fully implementing the Oracle AR module during the current year. It was also discovered that BIUST had an insurance cover for only P468 million worth of assets against an asset base of P1 billion.

In the year under review, the University recorded a surplus of P100 151 million, compared to P95.3 million reported in the previous year. 

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