June 18, 2018
By Regina Pratt
The graphic summary of the 2016 Auditor General’s Report has revealed that government was losing considerable funds as a result of irregularities in payroll records.
According to the report, the irregularities were mainly in respect of consultants on open-ended contracts and staff receiving salaries twice within the same month from the Consolidated Revenue Fund’s Account.
The report further states that some fourteen (14) public enterprises and Commissions did not produce annual financial statements for 2016, with some more than one year behind.
The report also revealed that in almost all of the public enterprises, commissions and donor funded projects, significant matters identified during audit examinations, included no supporting documentation for transactions, missing supporting documentations, poor management of procurement transactions, mismanagement of assets mainly in the area of not updating them, registered cash and bank reconciliation ignored and failure to deduct withholding taxes.
The damning report noted that Local Councils deducted National Social Security and Insurance Trust (NASSIT) contributions from staff salaries totaling Le777.7million, but failed to pay to NASSIT.
In addition, the report identified a litany of fault lines in the operations of local councils across the country. They include the non-operationalisation of Chiefdom Committees, missing receipt books to the tune of Le147,200,000, disbursement without supporting documents and revenue collected not banked but put into immediate use.
Also, local councils failed to do monthly bank reconciliations, maintain asset registers and non-presentation of vital documents and withdrawal/disbursement of funds without supporting documents.