This report presents the findings of the audit of the Jubbaland State of Somalia financial statements for the year ended 31 December 2025, conducted by the Office of the Auditor General.

The financial statements report total revenues of USD 69,816,056 and total expenditures of USD 68,426,851. The Auditor General issued a modified (qualified) audit opinion (Aragti Cillad Leh) due to substantial documentation gaps in revenues, expenditures, debt management, and procurement processes.

The audit identified significant weaknesses in revenue management. Approximately USD 3.55 million in revenue lacked complete supporting documentation, while an additional USD 829,638 lacked any supporting documentation.

Expenditure controls remain inadequate. A total of USD 4.14 million in expenditures lacked proper third-party supporting documents. Additionally, security-related expenditures surged by 149% to USD 18,658,336 without supporting documentation or satisfactory management explanation.

Procurement practices were found to be non-compliant. Most procurement actions bypassed competitive thresholds and were instead processed via single sourcing without adequate justification or a functioning procurement committee. 

Institutional control systems remain weak. The ministry lacked a comprehensive fixed asset register, and the internal audit department suffered from a lack of an approved charter, risk-based work plans, an oversight committee, and reporting lines to the Auditor General.

Follow-up on prior audit recommendations remains severely limited, with 16 out of 17 recommendations from the previous year remaining unimplemented. Overall, these weaknesses undermine financial integrity and justify the modified audit opinion issued by the Auditor General.