Auditor-General cites financial weaknesses at State entities

Jerome Reynolds, Gleaner Writer

The Auditor General's Department has found several breaches of the government's financial and accounting rules by ministries, departments and agencies which have resulted in millions of dollars in improper payments, unapproved spending and overpayments.

The discrepancies were uncovered following audits of the accounts and financial records of the entities for the financial year 2011-2012.

In its annual report, the department identified five entities where payments amounting to $836,928 and US$122,261 were made in breach of the stipulated rules and guidelines or without the requisite approval.

It further said the audits also identified 15 entities with unapproved expenditure totaling $194.3 million, £1.1 million and US$1.7.

And there were overpayments amounting to approximately $31 million.

The ADG noted that during the year of the review the entities recovered a total of $3.78 million.

However, it said an analysis of the past four years revealed that the Government has failed to recover a total of $130.5 million owed to it in overpayments.

The AGD stressed that the failure by several entities to comply with the Government’s financial rules continues to result in inadequate control over stores, furniture and equipment, the custody of blank cheques, the preparation and payment of salaries and the purchase of petrol, thus undermining the objective of safeguarding Government’s resources.

Meanwhile, the AGD said its audits found that Government entities made advances to staff amounting to millions without proper accounting.

The department said the failure to account for advances within the stipulated time frame will misrepresent actual expenditure for that period and create uncertainty as to whether funds were used for the intended purposes.

It was pointed out that as at March 31, 2012, the government failed to recover a total of approximately $3 billion in advance payments to civil servants.

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