Government fell short of international standards, says Auditor General

SATURDAY, FEBRUARY 9: The Auditor General said Government financial statements for 2011/12 failed to meet international practice.

Heather A. Jacobs Matthews said the fact "significant adjustments" had to be made to the statements given by Government, and the subsequent delays in the issuing of the Independent Auditor’s Report, was "unacceptable".

Mrs Matthews gave a qualified opinion on the financial statements for a fourth successive year. Her latest audit opinion on the financial statements of the Consolidated Fund was for the year ended March 31, 2012.

Mrs Matthew said: “For the Government not to present complete and accurate financial statements for audit within six months after its year end is not in keeping with current international practice for good government accountability.

“This unacceptable delay resulted in Members of Parliament and the public not having timely access to important information."

Pointedly, she also urged Government to “take concerted action” to address the high level of net debt, which stood at $2.4 billion as at March 31, 2012, an increase of almost $350 million from the previous year.

Mrs Matthews’ qualified opinion was, she says, based on deficiencies in the statements that led her to question the appropriateness of certain transactions and the underlying value of assets as at March 31, 2009.

Without the benefit of an independent professional valuation which was to be undertaken by the Accountant General for the current year under audit, the Auditor General said she “still unable to determine whether adjustments might be necessary to tangible capital assets and the accumulated deficit as at March 31, 2012”.

The Auditor General also highlighted the section of her Independent Auditor’s Report entitled “Other matters”, which the report explained is used to report significant matters that in Mrs Matthews’ professional opinion should be brought to the attention of Parliament and to the public, as permitted by professional auditing standards and the Audit Act 1990.

As well as the high debt, she also drew attention to several incidences of non-compliance with the Government’s Financial Instructions, which form the standard for financial controls for the Government. Mrs. Jacobs Matthews explained that, “Although these incidences of non-compliance did not lead me to qualify my audit opinion for the current year, I felt it necessary to stress the importance of the Government adhering to its internal control framework”.