Annual general report of the controller and - Parliament of Tanzania

moneys shall be paid into the bank on the same day or if
this is not possible, at earliest possible opportunity. A
review of cash collections and banking procedures in Public
Authorities revealed circumstances where cash collections
are not timely deposited into bank for un-explained reasons
as illustrated here under:
(i) Tanzania Broadcasting Corporation
Audit conducted to the cashier’s office observed that Cash
collection is not deposited within stipulated time in the
Corporation’s financial regulation. The manual requires all
receipts to be banked intact preferably the same working
day or the next working day. However, audit noted
instances whereby the cashier remained with cash
collections for about 45 days without being deposited. In
such situations cash collections are exposed to high risk of
theft or loss.
(ii) Tanzania Civil Aviation Authority
The audit of financial statements of Tanzania Civil Aviation
Authority (TCAA) and especially at up-country stations we
noted that cash is received at different stations by a
clerk/accountant who is also responsible for recording the
cash received. The same person prepares daily cash report
which could not be ascertained if they are not reviewed by
independent personnel to ensure completeness and
correctness. Further review noted that cash collections in
some of the stations are held in hand for unreasonable
period of up to one month before being deposited. This is
against the Authority’s policy which requires the Civil
Aviation managers to deposit the respective collections
immediately when received. Lack of a proper cash
management system can lead to fraud in relation to the
cash held at the premises and less optimal cash
management results.
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Office of the Controller and Auditor General PA&oBs 2007/08 86