Public Accounts Committee concerned with lack of documentation in ministries in 2016

Lack of documentation has been identified as a major concern by the Parliamentary Public Accounts Committee in its examination of audit reports of government ministries and departments for the year ended 31st July 2016.

Committee Chairpeson, Alvick Maharaj says it is important to note that the audit of financial statements for the whole of government for the period ending 31st July 2016 includes unqualified audit reports.

He says the committee noted that a total of 36 agencies financial statements were audited and out of these, 23 financial statements were issued with an unqualified audit opinion.

Maharaj adds 13 financial statements were issued with a qualified audit opinion.

He revealed that closing account balances were not always properly reconciled or not reconciled at all resulting in unexplained variances which were significant in some cases.

Maharaj further highlighted that financial transactions were not always properly supported or not supported at all by the relevant supporting documents.

He says the committee also noted that large amounts of funds are held in trust fund accounts and transactions of significant value were made from these accounts.

Maharaj says proper book of records were not maintained for some accounts while others were operated without documentation and approved standard operating procedures.

He adds as a result there was high risk of funds held in the trust being utilised for purposes it was not intended.

Maharaj adds concerns were raised with respect to the trust fund account balance amounting to more than $26.7 million not being supported with detailed listing of claimants of money held in the trust.

He says some trading and manufacturing accounts seem to have over lived their purpose.

Maharaj further says the committee noted that reconciliation was not always prepared for trust fund and trading and manufacturing accounts administered by ministries and departments.

He says variances were noted between ledger, general ledger and cash at bank balances for these accounts.

Maharaj says the committee also observed that the ministries and departments did not always provide relevant supporting documents such as payment vouchers, acquittals and agreements to support the expenditure incurred.

He adds generally, it is pleasing to note that these ministries and departments have taken the committee’s recommendations positively and are working towards resolving the issues and gaps identified during the audit.