Annual general report of the controller and - Parliament of Tanzania

Outstanding Receipts as at 30 June 2008 Amount Shs
3 to 6 months 3,181,535
6 to 12 months 6,166,613
Over 12 months 4,736,540
Total 14,084,688
There is a possibility for misstatement of the cash balances
as some of these items could have been unpaid cheques
that have become stale. Also this is an avenue that can be
used to conceal misappropriation of funds. We noted that
adjustments were processed in the financial statements to
write-off these amounts and customer balance reinstated
but reasons for such delay was not provided.
5.8 Dormant Bank Accounts
Many Public Authorities and Other Bodies operate dormant
bank accounts sometimes holding substantial amounts of
money. Such dormant accounts tend to be forgotten and
neglected. It should be borne in mind that dormant
accounts carrying reasonable amount of cash are risky and
very prone to fraudlent activities which will normally
involve collusion between dishonest bank employees and
staff of the PA&OB who are aware of such dormant
accounts. PA&oB are therefore discouraged from
maintaining dormant bank accounts as much as possible.
Once the use of a bank account has been accomplished, it
is advisable for such account to be closed and transfer
whatever remaining cash balance to another active bank
account of the PA&oB.
5.9 Lack of Bank Reconciliations
Bank reconciliation is one of the best control and assurance
mechanism that your cash in bank is safe and all
transactions in the account are genuine. The operation of a
bank account is trusted to the Bank holding that account.
The bank transacts the operations of the bank account on
behalf of the bank account holder. It is of paramount
importance therefore that once in a while preferably on a
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Office of the Controller and Auditor General PA&oBs 2007/08 102