>MoF witholding funds from GECOM

>Finance Minister Ashni Singh has been avoiding Dr. Steve Surujbally, chairman of the Guyana Elections Commission for the past week.

Sources say that the GECOM Chief has been trying to meet with the keeper of the purse to ascertain why the funds for the expansion of Continuous Registration have not been flowing.

This isn’t the job of the GECOM Chairman but is that of the the Chief Elections Office but is also the Chief Accountant of the Guyana Elections Commission.

We are told that Surujbally is so frustrated with the government’s move to shame him that he decided he will engage the Finance Minister himself.

We were told that monies that were suppose to see the rental of several offices have not been forthcoming from the Finance Ministry.

If there are more centres of the CR Process this will be major humbug.

Surujbally knows very well that this isn’t the first time that such has been as we believe that he very well knew what will happen this time around. the GECOM team was frustrated when they were preparing for local government elections till they had to call it off.

What the government aims to do by frustrating GECOM must be a state secret.

>A franchise on education

>Its been almost 8 years since this government has been dependent on Cuba to train young people on scholarships with very little expense on our coffers. Once trained, these doctors, agriculturists, agro-chemists and other return to serve Guyana for up to 5 years before they can decide their future.

All this is good a well, Cuba is known for doing its bit to help developing countries in educational and other pursuits.

But what is the focus on the PPP on education?

Undoubtedly, the PPP is on the record placing education as a priority in the social sector. Year after year education receives the largest budgetary allocation, almost $ 4 billion to build new structures and close to $1 billion for feeding, school uniform and other social services programmes.

Some how with all the education strategic plans with all the Ministers occupying the seat that over looks education they continue to fail to connect with what the real issues are affecting schools.

Few educators are in the school system, trained CPCE teachers who once filled the public schools, are trained for export. Dr. Henry Jeffrey once suggested that the government might explore training the teachers and exporting them for a fee to governments and recruiting agencies.

This way he suggested, earns the coffers a significant sum on each teachers that the government had spent close to US$2000 a term to train.

The retired teachers are opting for the outside markets also and while little or no attention is paid to addressing the age of retirement, who opt to returned make less money that an untrained teacher.

Remedial education is still a luxury to a few schools, and yet when the ‘educators’ are opening centres to start remedial classes, they are no sure what the child needs help with.

The 70:1 teacher ratio in a class room does not help the situation. Teachers are more inclined to work with a few ‘bright’ ones while leaving the others to fend for themselves.

Since not every child is academically inclined, there is no system to identify a child’s skills early on. If the Education ministry is to take a poll on basic writing skills and ages in the Public Sector is might surprise itself the number of students who studied under this administration.

School clubs, grounds and the promotion of sports in schools are almost non-existent. There isn’t 20 schools in the city with active clubs or useable grounds for sports.

As the new school term opens and new students apply to the University of Guyana, the government should note how many of the top students it has praised in the press for passing CSEC and CAPE.

Guyanese students continue to perform excellent topping the region almost every year for the past five years. They are awarded by the CXC body for their performances, while the Education Ministry’s award is a mere trophy.

Can they say whatever happen to the esteemed Guyana Scholarship?

Why cant a child who has performed exceedingly well, beating the odds be given as chance to excel further on its country’s soil?

As we move on to elections year, we wait and look.

Public Accounts part trios

We continue to analyze the report of the Public Accounts’ Committee.

OFFICE OF THE PRESIDENT FOR THE YEAR ENDED 31 DEC 2004.
The Public Accounts Committee said that it expressed dissatisfaction that the Guyana Office for Investment retained $0.522 Million which was not expended, IN VIOLATION OF THE LAW, from the amount $7.4 million allocated for the rehabilitation of office building and purchase of office equipment instead of returning same to the Office of the President for REPAYMENT to the Consolidated Fund.

FOR THE YEAR ENDED 31 DEC 2005
The Public Accounts Committee in its report noted the frequency in which the National Communications Network operated in violation of the laws in not following the Procurement Regulations and advised that the Accounting Officer of that Agency should employ greater supervisory control to ensure that there was adherence to Tender Board Procedures.

MINISTRY OF FINANCE
FOR THE YEAR ENDED 31 DEC 2004
The Committee in its report for that year expressed concern about the many unlicensed liquor operators. It was noted from the Auditor General’s report that amounts totaling $15.949 million were collected for liquor licenses. An examination of liquor licenses records for Regions 2, 3, 4 and 10 revealed a total of 1855 registered premises did not renew their licenses in 2004. In the absence of information of the status of these businesses, it could not be determined whether all were due for renewal. The PAC proposed that the Custom and Trade Administration investigate this matter.
 
FOR THE YEAR DEC 31 2005
The Committee continued to express concern that monies collected from the Lottery Fund
1.WERE NOT deposited into the Consol Fund as provided for in the Constitution and
2.Were spent without the consent of the National Assembly

FOR THE YEAR 31 DEC 2004
MINISTRY OF FOREIGN AFFAIRS
The Committee reports that an imprest bank account no.444 which became non operational in July 1996 reflected an overdraft of $51.635 million. The Committee proposed that the Ministry prepare a losses report and submit it to the Finance Ministry to resolve the issue.

With some 11 stale dated cheques valued at US$12,591.36, which were remitted though Diplomatic Bags and whose whereabouts have not yet been ascertained, the Foreign Affairs Ministry was advised to approach the Finance Ministry with a view of obtaining guidance in the clearing of the cheques.

The Committee said that in respect of the Foreign Missions, the Auditor General noted that some of the Mission lacked adequate segregation of duties in the Accounting Units.

FOR THE YEAR 31 DEC 2005
There was evidence to indicate that remittances to the various Missions were not received in a timely manner to allow for the smooth execution of the operations of these missions. The Report said that remittances to meet capital expenditure did not arrive at the Missions until after the close of the financial year, and the committee expressed serious concerns over the issue. In this regard the committee proposed that a routine system be adopted for remitting monies to missions, especially in relation to capital expenditure.

The Auditor General reported that the main bank account was affected by two outstanding advances totaling US$3,901.83 issued to the Ministry of Foreign Trade and International Cooperation to facilitate payment of hotel expenses for a Ministerial visit.

MINISTRY OF AGRICULTURE
FOR THE YEAR END 31 DEC 2004
The Committee advised the Ministry to present all the financial returns for the warrants issued for 2004 for Audit examinations.

FOR THE YEAR END 31 DEC 2005
Report said that the Committee noted with concern that the National Drainage and Irrigation Authority RECEIVED funds from the Agriculture Ministry through subsidies and Contribution to Local Organizations rather than subventions to conduct its operations. It was reported that in the AG report that the NDIA was formed by ACT in 2004. The Authority came into ACT during MAY 2005 and is a separate and legal entity and is required to maintain its OWN accounting records which are subject to separate reporting and audit.

MINISTRY OF TOURISM, INDUSTRY AND COMMERCE
FOR THE YEAR END 31 DEC 2004
Amounts totaling $1.099 million were expended to purchase computers, photocopier, workstation desks and filing cabinets for the Guyana Tourism Authority resulting in an excess expenditure of $598,544 which was deemed as UNAUTHORISED. The Committee in its report expressed concern that the Ministry has been expending sums that were not approved by the Finance Ministry.

MINISTRY OF EDUCATION
FOR THE YEAR END 31 DEC 2004
Amounts totaling $4.850 million expended to purchase 1000 of ‘What’s cooking in Guyana’. The books were received and taken to the Book Distribution Unit of the Ministry. The report said that a physical count revealed that 609 books were in stock where as the bin card and the stock ledger showed balances of 780 and 826 respectively. The Committee advised the Accounting Officer to consider a new mechanism for the distribution of school books.
Three years has elapsed since the Ministry filed a losses report on the misappropriation of funds totaling $136,637 and the matter had not received a response from the Finance Secretary. The Committee asked that the Accounting Officer take the matter up with the Finance Ministry.

THE GEORGETOWN PUBLIC HOSPITAL CORPORATION
FOR THE YEAR END 31 DEC 2004
The Georgetown Public Hospital Corporation which is now a separate entity from the Health Ministry continued to use the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 NOV 2005 for the purchase of drugs and medical supplies from specialized agencies, locally and overseas. The Procurement Act supersedes the Cabinet decision and as such the Committee advised the GPHC Accounting officer to adhere to the Procurement Act.

FOR THE YEAR END 31 DEC 2005
The Committee in its report noted that the Corporation was using a Cabinet approval as the basis of procuring drugs from the New Guyana Pharmaceutical Corporation rather than procuring such drugs through the Health Ministry. It was reported by the Auditor General that amounts totaling $443.203 Million were paid to the New Guyana Pharmaceuticals Corporation for the supply of drugs and medical supplies and during the year under review, the Corporation entered into 3 contracts using the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 Nov 2003 for the purchase of drugs and medical supplies of which amounts totaling $198.802 million were paid on these contracts.

MINISTRY OF HEALTH
FOR THE YEAR END 31 DEC 2004
The Auditor General Reported that amounts totaling $723.945 were expended on Materials, Equipment and Supplies. Included in this figure are sums totaling $675.816 million which related to the purchase of drugs of which $225.059 million represents purchases made from overseas suppliers. This was done via cabinet approval CP (2003):4: M of Dec 2003 which was utilized to purchase drugs and medical supplies from specialized agencies locally and overseas. Given the time period that would have elapsed, it would appear necessary for the present arrangements for the supply of drugs and medical supplies from overseas be reviewed.

FOR THE YEAR END 31 DEC 2005
The Committee expressed disappointment over the absence of a supervisory role by the Government and particularly the Health Ministry in the procurement process involving the GPC.

ONCE AGAIN THE COMMITTEE WARNED AN ACCOUNTING OFFICER OF THE PRACTICE OF PROCURING GOODS AND SERVICES WITHOUT TENDERING.

LABOUR, HUMAN SERVICES AND SOCIAL SECURITY
FOR THE YEAR END 31 DEC 2004
The Public Assistance imprest bank account no.092 which ceased to be operational several years ago was overdrawn by $270.586 as at 31 Dec 2004. This was due mainly to inadequate provisions made over the years in the National Estimates to facilitate the payment of Old Age pensions and public assistance.

LOCAL GOVERNMENT AND REGIONAL DEVELOPMENT
FOR THE YEAR END 31 DEC 2005
The Committee expressed serious concerns over the failure of the Heads of Municipalities and District Councils to submit financial statements on an annual basis as required by the law despite the legal requirement to produce financial statements in a timely manner as well as the penalties involved for the failure to do so. It was noted in the PAC report by the AG that two of the municipal councils and majority of the district councils have been violating the provisions of the Law.

MINISTRY OF CULTURE,YOUTH AND SPORTS
FOR THE YEAR END 31 DEC 2005
The Committee in its report said that with regard to the Auditor General’s comments that the Ministry operated a current account no. 410004235 held at the then National Bank of Industry and Commerce for the operations of the National Cultural Centre and did not pay over the proceeds to the Consolidated Fund and have the related expenditure met out of the appropriations.
The Committee advised the Accounting Officer to regularize the operations of the National Cultural Centre and reminded that all revenue collected should be paid into the Consolidated Fund and related expenditures be met from appropriations.

MINISTRY OF HOUSING AND WATER
FOR THE YEAR END 31 DEC 2005
It was reported by the Auditor General that unspent monies totaling $23.796 was not refunded to the consolidated Fung BUT KEPT IN A SEPARTE ACCOUNT. The Committee in its report reminded that Accounting Officer that all unspent amounts should be refunded to the Consolidate Fund and expenditures should be met from the appropriated sum.

MINISTRY OF HOME AFFAIRS
FOR THE YEAR END 31 DEC 2005
The PAC in its report said that with regard to the Auditor General’s findings that there were:
1. 41 instances where breaches of Tender Board Procedures were observed
2. 5 payments amounting to $2.720 million for which Ministerial Tender Board approvals were not seen
3. 28 payments valued at $2.245 million subdivided to avoid adjudication to the Departmental Tender Board
4. 8 payments totaling $703,050, which exceeded the limit of $600,000 and should have had the approval of the National Procurement and Tender Administration Board
5. And 9 payment vouchers valued at $7.074 million which had no supporting documents attached to verify accuracy and validity of the transactions.

MORE TO COME: Fuel for Regional administration’s generators’ provided electricity to private homes for a fee, Contractors paid without physical examination done, resulting in overpayment, 300 meters purchased for Hinterland area still in store and Magistrates used $700000 in taxis for out of town duties.

>Public Accounts part trios

>We continue to analyze the report of the Public Accounts’ Committee.

OFFICE OF THE PRESIDENT FOR THE YEAR ENDED 31 DEC 2004.
The Public Accounts Committee said that it expressed dissatisfaction that the Guyana Office for Investment retained $0.522 Million which was not expended, IN VIOLATION OF THE LAW, from the amount $7.4 million allocated for the rehabilitation of office building and purchase of office equipment instead of returning same to the Office of the President for REPAYMENT to the Consolidated Fund.

FOR THE YEAR ENDED 31 DEC 2005
The Public Accounts Committee in its report noted the frequency in which the National Communications Network operated in violation of the laws in not following the Procurement Regulations and advised that the Accounting Officer of that Agency should employ greater supervisory control to ensure that there was adherence to Tender Board Procedures.

MINISTRY OF FINANCE
FOR THE YEAR ENDED 31 DEC 2004
The Committee in its report for that year expressed concern about the many unlicensed liquor operators. It was noted from the Auditor General’s report that amounts totaling $15.949 million were collected for liquor licenses. An examination of liquor licenses records for Regions 2, 3, 4 and 10 revealed a total of 1855 registered premises did not renew their licenses in 2004. In the absence of information of the status of these businesses, it could not be determined whether all were due for renewal. The PAC proposed that the Custom and Trade Administration investigate this matter.
 
FOR THE YEAR DEC 31 2005
The Committee continued to express concern that monies collected from the Lottery Fund
1.WERE NOT deposited into the Consol Fund as provided for in the Constitution and
2.Were spent without the consent of the National Assembly

FOR THE YEAR 31 DEC 2004
MINISTRY OF FOREIGN AFFAIRS
The Committee reports that an imprest bank account no.444 which became non operational in July 1996 reflected an overdraft of $51.635 million. The Committee proposed that the Ministry prepare a losses report and submit it to the Finance Ministry to resolve the issue.

With some 11 stale dated cheques valued at US$12,591.36, which were remitted though Diplomatic Bags and whose whereabouts have not yet been ascertained, the Foreign Affairs Ministry was advised to approach the Finance Ministry with a view of obtaining guidance in the clearing of the cheques.

The Committee said that in respect of the Foreign Missions, the Auditor General noted that some of the Mission lacked adequate segregation of duties in the Accounting Units.

FOR THE YEAR 31 DEC 2005
There was evidence to indicate that remittances to the various Missions were not received in a timely manner to allow for the smooth execution of the operations of these missions. The Report said that remittances to meet capital expenditure did not arrive at the Missions until after the close of the financial year, and the committee expressed serious concerns over the issue. In this regard the committee proposed that a routine system be adopted for remitting monies to missions, especially in relation to capital expenditure.

The Auditor General reported that the main bank account was affected by two outstanding advances totaling US$3,901.83 issued to the Ministry of Foreign Trade and International Cooperation to facilitate payment of hotel expenses for a Ministerial visit.

MINISTRY OF AGRICULTURE
FOR THE YEAR END 31 DEC 2004
The Committee advised the Ministry to present all the financial returns for the warrants issued for 2004 for Audit examinations.

FOR THE YEAR END 31 DEC 2005
Report said that the Committee noted with concern that the National Drainage and Irrigation Authority RECEIVED funds from the Agriculture Ministry through subsidies and Contribution to Local Organizations rather than subventions to conduct its operations. It was reported that in the AG report that the NDIA was formed by ACT in 2004. The Authority came into ACT during MAY 2005 and is a separate and legal entity and is required to maintain its OWN accounting records which are subject to separate reporting and audit.

MINISTRY OF TOURISM, INDUSTRY AND COMMERCE
FOR THE YEAR END 31 DEC 2004
Amounts totaling $1.099 million were expended to purchase computers, photocopier, workstation desks and filing cabinets for the Guyana Tourism Authority resulting in an excess expenditure of $598,544 which was deemed as UNAUTHORISED. The Committee in its report expressed concern that the Ministry has been expending sums that were not approved by the Finance Ministry.

MINISTRY OF EDUCATION
FOR THE YEAR END 31 DEC 2004
Amounts totaling $4.850 million expended to purchase 1000 of ‘What’s cooking in Guyana’. The books were received and taken to the Book Distribution Unit of the Ministry. The report said that a physical count revealed that 609 books were in stock where as the bin card and the stock ledger showed balances of 780 and 826 respectively. The Committee advised the Accounting Officer to consider a new mechanism for the distribution of school books.
Three years has elapsed since the Ministry filed a losses report on the misappropriation of funds totaling $136,637 and the matter had not received a response from the Finance Secretary. The Committee asked that the Accounting Officer take the matter up with the Finance Ministry.

THE GEORGETOWN PUBLIC HOSPITAL CORPORATION
FOR THE YEAR END 31 DEC 2004
The Georgetown Public Hospital Corporation which is now a separate entity from the Health Ministry continued to use the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 NOV 2005 for the purchase of drugs and medical supplies from specialized agencies, locally and overseas. The Procurement Act supersedes the Cabinet decision and as such the Committee advised the GPHC Accounting officer to adhere to the Procurement Act.

FOR THE YEAR END 31 DEC 2005
The Committee in its report noted that the Corporation was using a Cabinet approval as the basis of procuring drugs from the New Guyana Pharmaceutical Corporation rather than procuring such drugs through the Health Ministry. It was reported by the Auditor General that amounts totaling $443.203 Million were paid to the New Guyana Pharmaceuticals Corporation for the supply of drugs and medical supplies and during the year under review, the Corporation entered into 3 contracts using the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 Nov 2003 for the purchase of drugs and medical supplies of which amounts totaling $198.802 million were paid on these contracts.

MINISTRY OF HEALTH
FOR THE YEAR END 31 DEC 2004
The Auditor General Reported that amounts totaling $723.945 were expended on Materials, Equipment and Supplies. Included in this figure are sums totaling $675.816 million which related to the purchase of drugs of which $225.059 million represents purchases made from overseas suppliers. This was done via cabinet approval CP (2003):4: M of Dec 2003 which was utilized to purchase drugs and medical supplies from specialized agencies locally and overseas. Given the time period that would have elapsed, it would appear necessary for the present arrangements for the supply of drugs and medical supplies from overseas be reviewed.

FOR THE YEAR END 31 DEC 2005
The Committee expressed disappointment over the absence of a supervisory role by the Government and particularly the Health Ministry in the procurement process involving the GPC.

ONCE AGAIN THE COMMITTEE WARNED AN ACCOUNTING OFFICER OF THE PRACTICE OF PROCURING GOODS AND SERVICES WITHOUT TENDERING.

LABOUR, HUMAN SERVICES AND SOCIAL SECURITY
FOR THE YEAR END 31 DEC 2004
The Public Assistance imprest bank account no.092 which ceased to be operational several years ago was overdrawn by $270.586 as at 31 Dec 2004. This was due mainly to inadequate provisions made over the years in the National Estimates to facilitate the payment of Old Age pensions and public assistance.

LOCAL GOVERNMENT AND REGIONAL DEVELOPMENT
FOR THE YEAR END 31 DEC 2005
The Committee expressed serious concerns over the failure of the Heads of Municipalities and District Councils to submit financial statements on an annual basis as required by the law despite the legal requirement to produce financial statements in a timely manner as well as the penalties involved for the failure to do so. It was noted in the PAC report by the AG that two of the municipal councils and majority of the district councils have been violating the provisions of the Law.

MINISTRY OF CULTURE,YOUTH AND SPORTS
FOR THE YEAR END 31 DEC 2005
The Committee in its report said that with regard to the Auditor General’s comments that the Ministry operated a current account no. 410004235 held at the then National Bank of Industry and Commerce for the operations of the National Cultural Centre and did not pay over the proceeds to the Consolidated Fund and have the related expenditure met out of the appropriations.
The Committee advised the Accounting Officer to regularize the operations of the National Cultural Centre and reminded that all revenue collected should be paid into the Consolidated Fund and related expenditures be met from appropriations.

MINISTRY OF HOUSING AND WATER
FOR THE YEAR END 31 DEC 2005
It was reported by the Auditor General that unspent monies totaling $23.796 was not refunded to the consolidated Fung BUT KEPT IN A SEPARTE ACCOUNT. The Committee in its report reminded that Accounting Officer that all unspent amounts should be refunded to the Consolidate Fund and expenditures should be met from the appropriated sum.

MINISTRY OF HOME AFFAIRS
FOR THE YEAR END 31 DEC 2005
The PAC in its report said that with regard to the Auditor General’s findings that there were:
1. 41 instances where breaches of Tender Board Procedures were observed
2. 5 payments amounting to $2.720 million for which Ministerial Tender Board approvals were not seen
3. 28 payments valued at $2.245 million subdivided to avoid adjudication to the Departmental Tender Board
4. 8 payments totaling $703,050, which exceeded the limit of $600,000 and should have had the approval of the National Procurement and Tender Administration Board
5. And 9 payment vouchers valued at $7.074 million which had no supporting documents attached to verify accuracy and validity of the transactions.

MORE TO COME: Fuel for Regional administration’s generators’ provided electricity to private homes for a fee, Contractors paid without physical examination done, resulting in overpayment, 300 meters purchased for Hinterland area still in store and Magistrates used $700000 in taxis for out of town duties.

Public accounts part deux

PUBLIC ACCOUNTS SCRUTINY CONTINUES:

THE FOLLOWING IS NOT A FIGMENT OF SOMEONE’S IMAGINATION BUT TAKEN FROM THE REPORT OF THE PUBLIC ACCOUNTS COMMITTEE FOR THE YEARS 2004 AND 2005.
CONSOLIDATED FUND

The Public Accounts Committee said that it noticed that even though the Consolidated Fund was opened there was still an UNRECONCILED balance in the account the findings reported that there were difference between the bank account balances reported in the Statement of the Current Assets and Liabilities of the Government and that in the records of the Bank of Guyana. According to the records of the Bank, the new Consolidated Fund account reflected a positive balance of $6.459 billion as at 31 December 2004, compared to a negative balance of $6.153 billion noted by the bank.

In addition, the total bank account balances of other ministries and departments amounted to a negative balance of $8.446 billion, compared to a positive balance of $10.907 billion as reported on the statement.

The Committee reports that according to Section 73(2) of the FMA Act, the Finance Minster is required to prepare a Statement of Contingent Liabilities which forms a component of the annual consolidated financial statements. The Act also defines a contingent liability as “a future commitment, usually to spend public monies which is dependent upon the happening of a specified event or the materialization of a specified circumstance”.

The Committee in its report said that DESPITE previous recommendations that liabilities for entities that are no longer in existence be transferred to the Public Debt, IT IS DISAPPOINTING to note that at the time of reporting in March 2006, NO ACTION was taken on the matter. The report said too that it should be noted that the statement submitted was not prepared in accordance to the ACT.

The PAC said too that according to the Statement of Receipts and Payments of the Contingencies Fund for the year end 31 December 2005, total payments of the Fund amounted to $5.865 billion, compared with $2.647 billion in 2004, an increase of $3.218 billion. Total Receipts from the Consolidated Fund amount to $5.856 billion as against $1.188 billion in 2004 an increase of $4.668 billion. This gives an excess of payments over receipts of $9 million.

Of the payments made from the Contingencies Fund for the period under review, 25 totaling $1.468 billion remained outstanding as at 31 December 2005.

The Report also noted that 19 ADVANCES totaling $37.634 million granted during the period 1986 to 1996 were still outstanding as of the 31 December 2005. At the time when the matter was reported to the Public Accounts Committee, the nature of the 19 advances could not be determined.
The Report said that during the time period involved and that fact that there was no financial reporting during the period 1986-1991, it was not possible to ascertain how the amounts were expended for the purpose of replenishing the Fund.

The Public Accounts Committee in its meetings over the 2004 and 2005 periods scrutinized the records of Ministries, Departments and Regional bodies.
In its Report the Committee noted that there were a number of bodies including ministries that still breached the Financial Regulations.

To be continued…

>Public accounts part deux

>
PUBLIC ACCOUNTS SCRUTINY CONTINUES:

THE FOLLOWING IS NOT A FIGMENT OF SOMEONE’S IMAGINATION BUT TAKEN FROM THE REPORT OF THE PUBLIC ACCOUNTS COMMITTEE FOR THE YEARS 2004 AND 2005.
CONSOLIDATED FUND

The Public Accounts Committee said that it noticed that even though the Consolidated Fund was opened there was still an UNRECONCILED balance in the account the findings reported that there were difference between the bank account balances reported in the Statement of the Current Assets and Liabilities of the Government and that in the records of the Bank of Guyana. According to the records of the Bank, the new Consolidated Fund account reflected a positive balance of $6.459 billion as at 31 December 2004, compared to a negative balance of $6.153 billion noted by the bank.

In addition, the total bank account balances of other ministries and departments amounted to a negative balance of $8.446 billion, compared to a positive balance of $10.907 billion as reported on the statement.

The Committee reports that according to Section 73(2) of the FMA Act, the Finance Minster is required to prepare a Statement of Contingent Liabilities which forms a component of the annual consolidated financial statements. The Act also defines a contingent liability as “a future commitment, usually to spend public monies which is dependent upon the happening of a specified event or the materialization of a specified circumstance”.

The Committee in its report said that DESPITE previous recommendations that liabilities for entities that are no longer in existence be transferred to the Public Debt, IT IS DISAPPOINTING to note that at the time of reporting in March 2006, NO ACTION was taken on the matter. The report said too that it should be noted that the statement submitted was not prepared in accordance to the ACT.

The PAC said too that according to the Statement of Receipts and Payments of the Contingencies Fund for the year end 31 December 2005, total payments of the Fund amounted to $5.865 billion, compared with $2.647 billion in 2004, an increase of $3.218 billion. Total Receipts from the Consolidated Fund amount to $5.856 billion as against $1.188 billion in 2004 an increase of $4.668 billion. This gives an excess of payments over receipts of $9 million.

Of the payments made from the Contingencies Fund for the period under review, 25 totaling $1.468 billion remained outstanding as at 31 December 2005.

The Report also noted that 19 ADVANCES totaling $37.634 million granted during the period 1986 to 1996 were still outstanding as of the 31 December 2005. At the time when the matter was reported to the Public Accounts Committee, the nature of the 19 advances could not be determined.
The Report said that during the time period involved and that fact that there was no financial reporting during the period 1986-1991, it was not possible to ascertain how the amounts were expended for the purpose of replenishing the Fund.

The Public Accounts Committee in its meetings over the 2004 and 2005 periods scrutinized the records of Ministries, Departments and Regional bodies.
In its Report the Committee noted that there were a number of bodies including ministries that still breached the Financial Regulations.

To be continued…

Report of the Public Accounts Committee

Report of the Public Accounts Committee on the Public Accounts for the years 2004 and 2005.

This report was recently submitted to the National Assembly. The Report started by listing some of the general problems it observed in the government’s financial management. The Committee said that during its deliberation of the 2004 and 2005 Auditor General’s reports, a number of general problems which adversely affected the financial management system were identified.

Those problems included:
1. OVERPAYMENT OF CONTRACTORS
2. BREACH OF TENDER BOARD PROCEDURES
3. LACK OF MAINTENANCE OF LOGBOOKS
4. NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
5. CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATIONS
6. WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
7. OUTSTANDING POLICE REPORTS
8. ABUSE OF EXTRA BUGETARY FUNDS
9. VARIATION ON CONTRACTS
10.HIGH COST OF MAINTAINING VEHICLES

OVERPAYMENT FOR CONTRACTORS
The report says that a number of ministries and regions continued to have make overpayments on contracts. The PAC in its report said that it has noted that some ministries and regions have made progress on this issue but some continued to be delinquent.
These included the Ministries of:
1. Agriculture
2. Public Works and Communications and
3. Health
And Regions 1-3, 6, 7, 9 and 10.

BREACH OF TENDER BOARD PROCEDURES
There were various levels of non-compliance with the existing Tender Board Regulations relating to the procurement of goods and services and the undertaking of works, both capital and current by a number of agencies for the years 2004 and 2005, particularly where it relates to compliance with Tender Limits. In view of the fact that the last increase in Tender Board Limits was in November 2004 via the Procurement Regulations, the Committee recommends that the Tender Board limits be increased in the light of current prices.

LACK OF MAINTENANCE OF LOG BOOKS
The PAC is in report said that it noted that during the two years the control and use of government vehicles continued to be very lax resulting in log books not being kept or not being satisfactorily maintained. These agencies were found to be delinquent:
The Ministries of:
1. Agriculture
2. Education
3. Labour, Human Services and Social Security and
4. Home Affairs
5. The Guyana Defence Force and
6. Regions 1-6 and 8

While the Committee recommended that Accounting Officers ensure that log books are maintained and closed at the end of the year, the agencies continued to ignore these.

NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
All ministries, departments and regions are required to clear cheque orders with 16 days from when they are issues but there was an inability to do so and this was prevalent in
The ministries of:
1. Agriculture
2. Public Works and Communications
3. Education
4. The Guyana Defence Force and
5. Regions 1, 2, 4, 6, 9 and 10.
I

CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATION
While all amounts budgeted are required to be expended in keeping with that which was approved by the National Assembly, the PAC noted that a in a number of instances where the Auditor General reported that Ministries, Departments and Regions were funding activities of a capital nature from amounts approved for the Current Expenditure.
This forced the Committee to recommend that they:
Collaborate with the Finance Ministry with the aim of determining or differentiating current from capital purchases/works and also adhere strictly to the regulations whenever a need exist to make capital purchases from current allocations.

WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
The PAC report says that the slow processing of pay change directives in several ministries and mainly in the Regions results in wrongful payment of salaries to employees after they had resigned and the consequential deductions being paid to various agencies without the necessary adjustments made to the payroll and the Ministries and Regions not being able to recover such sums or any at all expeditiously.
This was especially prevalent with respect to the employment of Teachers.
It was also noted by Auditor General that this state of affairs also resulted in these Ministries, Departments and Regions recording overstatements on their Appropriation Accounts as a result of the deductions being paid over to various agencies and the Ministries and Regions not being able to recover such sums.

In 2005 the PAC recommended that:
To strengthen the mechanism to expedite the flow of information from various schools/ministries so that the necessary adjustments could be made to the payroll in a timelier manner; that the Accountings officers should seek to discuss with the National Insurance Scheme and the Guyana Revenue Authority the possibility of crediting the amounts overpaid to the respective ministry, department or region’s account; and in instances where the Accounting Officers attempt to recover sums from the agencies proved futile they should seek to bring the matter to the attention of their subject minister.

OUTSTANDING POLICE REPORTS
The Committee in its report said that it is gravely concerned about the number of issues concerning the loss of public property which are currently with the police and have not been resolved or which were pending in the courts. It said that a number of issues are in relation to the Supreme/Magistrate Courts and are dated as far back as 1992 while others were during 2004 and 2005.

The PAC recommends that Accounting Officers: seek the advice of the Head of the Budget Agency, Home Affairs Ministry where matters were with the police and have long been outstanding; seek the advice of the Attorney General with a view of bringing closure to the court matters and where discrepancies and fraud were discovered actions should be taken and developed to avoid recurrences.

On January 1 2004, the Procurement Act 2003 became operational. This act provides for the regulation of the procurement of goods, services and the execution of works, to promote competition among suppliers and contractors and to promote fairness and transparency in the procurement process. Regulations for this Act were also made and came into operation on the 29 November 2004. However, although the Procurement Act to date has assisted in some instances in addressing the numerous concerns the Committee had over the years, it was noted at the time of the report: THE PUBLIC PROCUREMENT COMMISSION PROVIDED FOR BY THE ACT HAD STILL NOT BEEN ESTABLISHED AND THE PAC RECOMMENDED THAT THE ISSUE BE RESOLVED.
The PAC expressed concern of possible collusion between contractors and officials at certain agencies and recommended that:
1. Accounting officers should ensure that there are proper systems for the verification of works to be done and that ministries needed to ensure independent verification.
2. Not only contractors should be held accountable for sums overpaid but also the officer who certified the payment of such sums and
3. The Accounting officer should inform the National Procurement and Tender Administration Board of the names of the contractors and the amount overpaid with a view of preventing those contractors who were requested to repay overpaid amounts and failed to do so from obtaining future jobs or to assist in the recovery of over paid amounts from subsequent contracts.
4. Accounting officers should employ a mechanism within their building/engineering departments to improve the verification f projects to ensure accountability

MORE TO COME !!!

>Report of the Public Accounts Committee

>Report of the Public Accounts Committee on the Public Accounts for the years 2004 and 2005.

This report was recently submitted to the National Assembly. The Report started by listing some of the general problems it observed in the government’s financial management. The Committee said that during its deliberation of the 2004 and 2005 Auditor General’s reports, a number of general problems which adversely affected the financial management system were identified.

Those problems included:
1. OVERPAYMENT OF CONTRACTORS
2. BREACH OF TENDER BOARD PROCEDURES
3. LACK OF MAINTENANCE OF LOGBOOKS
4. NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
5. CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATIONS
6. WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
7. OUTSTANDING POLICE REPORTS
8. ABUSE OF EXTRA BUGETARY FUNDS
9. VARIATION ON CONTRACTS
10.HIGH COST OF MAINTAINING VEHICLES

OVERPAYMENT FOR CONTRACTORS
The report says that a number of ministries and regions continued to have make overpayments on contracts. The PAC in its report said that it has noted that some ministries and regions have made progress on this issue but some continued to be delinquent.
These included the Ministries of:
1. Agriculture
2. Public Works and Communications and
3. Health
And Regions 1-3, 6, 7, 9 and 10.

BREACH OF TENDER BOARD PROCEDURES
There were various levels of non-compliance with the existing Tender Board Regulations relating to the procurement of goods and services and the undertaking of works, both capital and current by a number of agencies for the years 2004 and 2005, particularly where it relates to compliance with Tender Limits. In view of the fact that the last increase in Tender Board Limits was in November 2004 via the Procurement Regulations, the Committee recommends that the Tender Board limits be increased in the light of current prices.

LACK OF MAINTENANCE OF LOG BOOKS
The PAC is in report said that it noted that during the two years the control and use of government vehicles continued to be very lax resulting in log books not being kept or not being satisfactorily maintained. These agencies were found to be delinquent:
The Ministries of:
1. Agriculture
2. Education
3. Labour, Human Services and Social Security and
4. Home Affairs
5. The Guyana Defence Force and
6. Regions 1-6 and 8

While the Committee recommended that Accounting Officers ensure that log books are maintained and closed at the end of the year, the agencies continued to ignore these.

NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
All ministries, departments and regions are required to clear cheque orders with 16 days from when they are issues but there was an inability to do so and this was prevalent in
The ministries of:
1. Agriculture
2. Public Works and Communications
3. Education
4. The Guyana Defence Force and
5. Regions 1, 2, 4, 6, 9 and 10.
I

CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATION
While all amounts budgeted are required to be expended in keeping with that which was approved by the National Assembly, the PAC noted that a in a number of instances where the Auditor General reported that Ministries, Departments and Regions were funding activities of a capital nature from amounts approved for the Current Expenditure.
This forced the Committee to recommend that they:
Collaborate with the Finance Ministry with the aim of determining or differentiating current from capital purchases/works and also adhere strictly to the regulations whenever a need exist to make capital purchases from current allocations.

WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
The PAC report says that the slow processing of pay change directives in several ministries and mainly in the Regions results in wrongful payment of salaries to employees after they had resigned and the consequential deductions being paid to various agencies without the necessary adjustments made to the payroll and the Ministries and Regions not being able to recover such sums or any at all expeditiously.
This was especially prevalent with respect to the employment of Teachers.
It was also noted by Auditor General that this state of affairs also resulted in these Ministries, Departments and Regions recording overstatements on their Appropriation Accounts as a result of the deductions being paid over to various agencies and the Ministries and Regions not being able to recover such sums.

In 2005 the PAC recommended that:
To strengthen the mechanism to expedite the flow of information from various schools/ministries so that the necessary adjustments could be made to the payroll in a timelier manner; that the Accountings officers should seek to discuss with the National Insurance Scheme and the Guyana Revenue Authority the possibility of crediting the amounts overpaid to the respective ministry, department or region’s account; and in instances where the Accounting Officers attempt to recover sums from the agencies proved futile they should seek to bring the matter to the attention of their subject minister.

OUTSTANDING POLICE REPORTS
The Committee in its report said that it is gravely concerned about the number of issues concerning the loss of public property which are currently with the police and have not been resolved or which were pending in the courts. It said that a number of issues are in relation to the Supreme/Magistrate Courts and are dated as far back as 1992 while others were during 2004 and 2005.

The PAC recommends that Accounting Officers: seek the advice of the Head of the Budget Agency, Home Affairs Ministry where matters were with the police and have long been outstanding; seek the advice of the Attorney General with a view of bringing closure to the court matters and where discrepancies and fraud were discovered actions should be taken and developed to avoid recurrences.

On January 1 2004, the Procurement Act 2003 became operational. This act provides for the regulation of the procurement of goods, services and the execution of works, to promote competition among suppliers and contractors and to promote fairness and transparency in the procurement process. Regulations for this Act were also made and came into operation on the 29 November 2004. However, although the Procurement Act to date has assisted in some instances in addressing the numerous concerns the Committee had over the years, it was noted at the time of the report: THE PUBLIC PROCUREMENT COMMISSION PROVIDED FOR BY THE ACT HAD STILL NOT BEEN ESTABLISHED AND THE PAC RECOMMENDED THAT THE ISSUE BE RESOLVED.
The PAC expressed concern of possible collusion between contractors and officials at certain agencies and recommended that:
1. Accounting officers should ensure that there are proper systems for the verification of works to be done and that ministries needed to ensure independent verification.
2. Not only contractors should be held accountable for sums overpaid but also the officer who certified the payment of such sums and
3. The Accounting officer should inform the National Procurement and Tender Administration Board of the names of the contractors and the amount overpaid with a view of preventing those contractors who were requested to repay overpaid amounts and failed to do so from obtaining future jobs or to assist in the recovery of over paid amounts from subsequent contracts.
4. Accounting officers should employ a mechanism within their building/engineering departments to improve the verification f projects to ensure accountability

MORE TO COME !!!