Finance Secretary On Auditor’s Blocked Claim
Financial Secretary Mr. Donald Scott, upon returning yesterday evening from Government business overseas responded to the allegations from the Auditor General that her access to Government’s Financial Information Management System despite repeated requests over the past two weeks. Mr Scott said that “It was an egregious and terrible error to state that the Finance Ministry had blocked the Auditor-General from accessing Government’s financial information system”.
Mr Scott’s full statement follows below:
Nothing could be further from the truth, especially since the Auditor-General was given a full electronic file of Government’s 2009-2010 year-end financial information on 5th June 2010 for their audit work of the Consolidated Fund. The Consolidated Fund is established by the Constitution and is the main file for Government’s transactions relating to revenue, expenditure and borrowing.
Many will be aware that Government’s financial information and management system, known as FIMS, is in the process of being upgraded. Part of the foundation work for transition to the new system includes a detailed review of users on the system to ensure that authority to enter, change and approve entries and transactions on the system may not be exposed to abuse or inadvertent misuse. These reviews and changes in user profiles are being undertaken on a government-wide basis.
In the case of the Office of the Auditor General (OAG), it was found that the user profile for the Auditor-General had to be changed as it allowed the Auditor-General a capacity to approve all government transactions. This authority was wrong and had to be corrected if only because it compromised the integrity of the OAG with respect to the audit of the Consolidated Fund which operates on FIMS. User profiles for other staff in OAG also required alteration to improve internal controls in the OAG.
During the change to amend the incorrect level of approval authority for the Auditor-General, the Auditor-General’s ability to view the FIMS system across government and indeed to approve her own Department’s transactions was interrupted inadvertently. The functionality has been restored.
It should be noted that the user-profiles for three other staff in the OAG were corrected without incident.
Further, there was uninterrupted access to FIMS that allowed audit staff to continue their audit work during the short period that the Auditor-General had the difficulty. And I restate that the OAG was given a full electronic file of Government’s 2009-2010 year-end financial information on 5th June 2010 for their audit work of the Consolidated Fund. This file provided OAG with the information needed to run reports, test trial balances and perform other checks relating to the financial statements.
Ministry of Finance continues to review best practice in the area of access to government financial information systems by external auditors and has taken note of varying arrangements in other jurisdictions.
It is also important for the Legislature and the general public to be aware that the Department of Internal Audit (IA) is now established and functioning. As it performs the internal audit function, it has perpetual access to FIMS to check on internal control functions. IA also has a full programme of work that is designed to ensure that Heads of Department and Permanent Secretaries are properly discharging their responsibilities with respect to the care and safe custody of public assets.
For instance, IA conducts surprise cash counts and reviews of purchase order books, etc. Most recently, Ministry of Finance Headquarters was subject to a surprise visit from IA for review of purchase order books and petty cash balances.
Given the improvements that the Ministry of Finance has undertaken over the years to improve transparency in government financial affairs and the enhancements to controls, it is most regrettable that the statement issued by the OAG has allowed an important and non-partisan matter to become politicized. The work that is being undertaken is operational in nature and does not involve the Minister of Finance.
The Ministry of Finance has nothing to hide with respect to the conduct of the Government of Bermuda’s financial affairs and will continue to strive towards improvements in this crucial area such that public confidence, including the confidence of capital markets, is maintained at the highest level.
Ball is back in Auditor General’s court.
Why would it take two weeks to fix the security password for auditor general?
Pretty bog oversight to keep AG from accessing system for two weeks.
The game seems to be at “Deuce” at the moment!
Unfortunately this is no game – Now who would you believe – the Ministry of Finance who has consistently allowed for the overspending of the people’s money without any checks and balances or the lowly Auditor General who is just trying to get the word to the people that the Ministry is incompetent.
FS’s reply is largely technical nonsense. Who cares which system Governments uses or how and when it does its upgrades. Certainly few in Bermuda would even understand what he is going on about. The fact remains the AG (Auditor General)was denied access for 2 weeks. As mentioned above, this is in keeping with the Finance Ministry’s on-going approach to dealing with the independent office of the AG
When in trouble…. Obfuscate with extraneous information.
We all thought that Doc Hollywood had the gift of the gab !!!!!Paula runs circles around him !!!!! what the hell are we in for if she becomes the next leader ?
EB has the gift of gab ..almost….
Paula has the gift of waffle !
Like David Allen before her, when she closes her mouth neither you or her has any idea what she’s just said.
As for her at the helm …. heaven forbid.