Report: Widespread misuse of public money in local govt
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com
The recently tabled auditor general’s report reveals the widespread misuse of government funds in the Local Government offices on various Family Islands. The report — which covers the period between July 1, 2008 to June 30, 2009 — details a lack of accountability or audit trails in the recurrent accounts in many of the local government offices.
According to the report, as it relates to revenue in the Central Andros District, “the practice of omitting the general receipt references for clinic fees, character references and gun licenses from the cashbook did not leave a good audit trail and impeded the process of verifying the actual amounts collected.”
The auditor general also found several inconsistencies as it relates to the recurrent expenditure account. “We noted that payments were made to repair the old school building at Blanket Sound,” said the report, which was tabled in the House of Assembly on Monday. “During our site inspection we could not verify where any work was done to the old building.”
Additionally, the report revealed that payments were made for plumbing, supplies, building materials, painting supplies and sundry items but no justification was given for the items purchased and the related projects were not indicated.
The report also revealed that money was spent out of the local government’s reserve account in that district without any evidence of approval from the minister responsible, as is the requirement.
In the Cat Island District, the report detailed that some payment vouchers were discovered but were not supported with bills or receipts. Similarly in North Eleuthera, the report indicates that the description of works given and supporting documentation was inadequate for payment vouches. “In other cases, the vouchers were not approved by the island administrator; neither was the account numbers to which the transactions were to be charged provided,” the report said.
In Harbour Island, the report noted that unspent budgetary funds were not returned to the Public Treasury at the end of fiscal years as mandated from 2004.
In Spanish Wells, the auditor general report indicated that monthly payments were made for the upkeep of public grounds, roads, harbor and dock, however evidence of competitive bidding was not provided and the agreements setting forth the conditions for works undertaken were not produced for audit review.
The same conclusion was made in Central Eleuthera.
The report states that during a scrutiny of payment vouchers and contract, the scope of work was not included and bids were not attached. In the Exuma District it was noted that adequate information and supporting documents were not attached or indicated on vouchers to justify the charges made against budget items. “We also noted that some checks were written to the administrator rather than suppliers,” the report said. “Some vouchers related to school repairs and to the district superintendent’s office were charged against line items that do not exist.”
A review of the Social Services Department in Mayaguana revealed that some people who were receiving food coupons were gainfully employed as was seen on a monthly National Insurance contribution schedule and monthly upkeep payments.
“In our view, the present system in place for the delivery of food assistance lacked transparency and accountability,” the report said.
“In our opinion, pubic funds were disbursed without regard for economy, efficiency, transparency and accountability. Internal controls need to be strengthened to ensure efficiency and effectiveness of the operation.”
The report calls for an overhaul of many of the practices of the local government offices.
It also seeks clarifications or accounting in cases where money was spent but no evidence of the work was acknowledged.
4/20/2011
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