The non-submission of documents for audit inspection by ministries, departments and agencies (MDAs) has been a recurring problem as highlighted by the Auditor General, Lara Taylor-Pearce in her Annual Reports. As a result she has called on the Public Accounts Committee (PAC) to discourage these institutions from producing documents at their hearings, “this practice should be discouraged if we are to fulfil the accountability and transparency drive,” she said. This habitual non-production of requested documents during the audit process by auditees continues to obstruct her output as these documents are eventually produced at PAC hearings. The important documents should have been presented earlier or when first requested. She said that they reviewed 232 recommendations derived from analysis of 2016 audit recommendations for 13 audit entities and their status is as follows:- 79 have been implemented, 139 have not been implemented and 14 remain in progress. “The implementation rate of 34% is not encouraging. Overall, 4 of the 13 entities have an implementation rate of less than 25%. We encourage the PAC to regularly request status reports of these recommendations that are ‘not implemented’ and those that ‘remain in progress’” she said. This year, AG Taylor-Pearce said that she issued an unqualified opinion on the financial statements of the Consolidated Revenue Fund (CRF) Account, which signifies consistency from last year 2016 when she also issued an unqualified opinion. “The 2017 report,” she noted, “seems to be consistent with last year as I continue to see improvement on a number of control issues including the preparation of regular and complete financial and performance reports and review and monitoring of compliance with legislation.” In addition, better records management system and better controls over daily and monthly processing and cash management practices resulting in an increase in domestic revenue collection by 8% in 2017. “This increase was as a result of the increase in the payment of non-tax and other revenue collected and paid into the CRF Account, reduction of tax irregularities and unauthorised payments, as well as the provision of adequate records on revenue collection.” However, more work needs to be done on reconciliation of transactions in respect of tax and non-tax revenue between the relevant institutions. Such basic controls and disciplines if sustained will continue to ensure that errors, omissions and non-compliance are prevented, detected and corrected in a timely manner. AG Taylor-Pearce said that over the years she has seen a moderate improvement in audit outcomes but she continues to report the root causes of poor audit outcomes in governance. Among the causes of poor audit reports are the slow responses by those charged with governance, lack of consequences for poor performance and transgressions in general governance. MDAs are not taking effective action to address the basic problems of lack of monitoring and supervision, and non-adherence to legislation due to the outright disregard for established laws and regulations in the conduct of public financial business. The intervention of the PAC in following up on the implementation of the audit recommendations will ensure that MDAs adhere to the constitutional and statutory provisions aimed at effective public financial management, enhanced transparency, accountability and good governance. She however hoped that in 2019, all institutions, particularly public enterprises, will submit financial statements for audit at the earliest possible date; otherwise the normal approach of bringing to the attention of the public to those institutions considered to be deliberately flouting legitimate rules and regulations for the submission of financial statement will proceed.
ZJ/22/1/19
By Zainab Iyamide Joaque
Wednesday January 23, 2019.