Auditor General’s 2010 Report Released
Auditor General Heather Jacobs Matthews today [June 22] released the 2010 Report of the Auditor General.
The report covers the audit work of the Office of the Auditor General for the two financial years ended March 31, 2009 and 2010 and the Accounts of the Government of Bermuda for the year ended March 31, 2009.
Commenting on the time taken to release the report, the Auditor General noted the absence of a properly constituted Audit Committee during 2011. The Audit Committee is a legislated committee established under Section 5 of the Audit Act 1990. Its members are appointed by the Governor acting in accordance with the advice of the Premier. The primary function of the Audit Committee is to review and discuss with the Auditor General drafts of her public reports.
The Audit Committee also communicates to Cabinet any matters in the draft reports which it feels should be brought to the attention of Cabinet. After a delay in 2011, a new committee was appointed, became fully operational in 2012 and reviewed this report.
The Report also includes the Accounts of the Government of Bermuda. Commenting on the reasons for the qualification of her Auditor’s Opinion on the 2009 Consolidated Fund financial statements, the Auditor General noted that the audit “revealed deficiencies in internal controls in the management of various major capital development projects. I was unable to determine whether the underlying value of the recorded assets was appropriate. As a result, I issued a qualified audit report on the Fund’s financial statements for the year ended March 31, 2009”.
The Auditor General again expressed concern about “the Government’s failure to prepare consolidated financial statements for Bermuda.” Consolidated financial statements would include the Consolidated Fund as well as other public funds and quangos.
Mrs. Jacobs Matthews noted that “until consolidated financial statements are produced, there is a risk that users of the financial statements of Bermuda’s Consolidated Fund may mistakenly view them as the consolidated financial statements of the Government”.
Also at issue in this Report is the lateness of financial reporting. The Auditor General said, “While there was a marked improvement in the quality and timeliness of information presented for the audit of the 2009 Consolidated Fund financial statements, these improvements did not extend to the financial statements of other Government‐controlled entities, funds, parish councils and aided schools.”
The Auditor General noted her concerns about the “unacceptable” state of accounting and reporting of the government’s pension funds. She strongly recommended that “the Permanent Secretaries responsible for the organizations concerned and the respective Boards should take all possible steps to bring financial statement preparation up to date as soon as possible”.
The Premier and Finance Minister Paula Cox commented on the release of the Report, saying “The Reports prepared by the Office of the Auditor-General provide Parliament with an independent review on the adequacy of accountability and resource management practices in Bermuda’s public sector.
“These Reports are also a valuable input for the Government to identify ways to enhance the delivery and efficiency of a range of services for all residents of Bermuda. It is important to note that audit reports are historical documents, in this case relating to financial years that occurred 2 and 3 years ago respectively.
“Accordingly the Auditor-General plays a significant role in the accountability process within Government. It is not the role of the Auditor-General to report on the very many things that are right in the financial affairs of the public sector. The Audit Act requires her reports to focus mainly on observed problems and deficiencies. Accordingly her reports identify deficiencies in accounting and accountability systems.”
The statement from the Finance Ministry also said, “The Government notes that the overall tenor of the current Report has been restrained when compared to previous years, and welcomes constructive criticism that will lead to improvements in the stewardship of the public purse.”
The Premier/ Finance Minister doth spew much…
If I didn’t do my job I’d get fired.
In Bermuda when the Finance Minister doesn’t do her job she gets promoted to Premier.
You can also be named the new Transport Minister.
there goes Transparency. Stand fast Ms. Matthews!!!
The Government requires a vast array of regulated industries in Bermuda to submit timely audited financial statements in order for them to continue operations and meet their licensing criteria. The Government also likes to state how modern our regulatory and legislative frameworks are and consistently points this out when promoting Bermuda abroad and in the local media.
Why can’t the same PLP Government lead by example and ensure they, at a minimum, meet or even exceed the standards of accountability and transparency set for the private sector? Why is there one set of rules for taxpayers and another for tax revenue abusers?
PLP – betraying Bermudians since 1998.
And lets not even mention the BIU and their delinquent accounts.
That too shall pass
kfc…..