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LIST OF WITNESSES WRITTEN EVIDENCE Consolidated Ministries and Departments Responses – Audit Report on Follow- Up of High Risk Ministries/Departments (PP No.

271 of 2020) No.

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Ministry/Department Republic of Fiji Military Forces Fiji Police Force Ministry of Agriculture Ministry of Education, Heritage and Arts Ministry of Health and Medical Services Ministry of Infrastructure and Transport Ministry of Women, Children & Poverty Alleviation Ministry of Rural and Maritime Development and National Disaster Management Page No.
2 8 10 14 16 17 21 28 MINISTRY OF EDUCATION EDUCATING THE CHILD HOLISTICALLY FOR A PEACEFUL AND PROSPEROUS FIJI Marela House, 19 Thurston Street, Suva, Fiji Islands Private Mail Bag, Government Buildings, Suva Ph: (679) 3314477 Fax: (679) 3303511 File: FIN 04/21 09 April 2021 The Honourable Alvick Maharaj Chairman of the Public Accounts Committee Parliament Complex Gladstone Road Suva Dear Sir PARLIAMENT PAPER NUMBER 271 OF 2020 Reference is made to report of the Office of the Auditor General of the Republic of Fiji: Audit report on follow up of high risk ministries/departments Recommendations are noted as outlined in section 2.3 which states, the Permanent Secretary as Chief Accounting Officer must ensure that: (i) there is a monitoring mechanism within their respective entity/agency to be able to monitor and assess how well Accounting Heads has implemented the recommendations made; (ii) monthly updates on audit recommendations are submitted by Accounting Heads as required by Finance Instructions 60(1); (iii) relevant processes are put into place to ensure audit recommendations are implemented on a timely basis; (iv) controls are continuously implemented to avoid repeated audit findings (v) performance indicators of Accounting Heads and other staff include timely implementation of audit recommendations; and (vi) establish Audit Committees to monitor the implementation of recommendations made in reports prepared by OAD and internal auditors.
The recommendations in report for MEHA 2017 are noted.

It is also noted the follow up on recommendations was done on 22/4/2020.

The update and planned action is as per table below; ALL COMMUNICATIONS TO BE ADDRESSED TO THE PERMANENT SECRETARY FOR EDUCATION, HERITAGE, AND ARTS - 2 - Recommendations in Report Status Planned Actions Under Utilization of Capital Expenditure Budget 1.

Should ensure that proper planning the capital out carried is implementation of projects for its 2.
Should ensure submissions that all capital project are done through Public Sector Investment Program process; and consider including the Minister’s initiatives allocations budget submission.

Building Grant their in 3.

Should only release building grants to fully schools which have complied with the Capital Grants for Non-Government Schools Policy Finalization Statements Financial of 4.
Should that ensure accurate financial statements are submitted by the due date and approved additional spending are regularized on a timely basis Partially Implemented Fully Implemented Fully implemented Not Implemented The Ministry will ensure timely implementation of capital projects.

Director Asset Monitoring Unit will provide monthly update to Head Corporate on implementation which is aligned to Annual Work Program and Quarterly Project Performance Reporting.
The Ministry has had discussions with Ministry of Economy to ensure all new requirements/guidelines and criteria’s from their end is communicated and confirmed before-hand.

This will prevent capital project submissions from floating back and forth the respective ministries and effectively negate any delays arising from these reasons.
The Ministry has set strict deadlines on all of its critical deliverables including the submission of financial statements, which is reflected in the IWPs for the Finance section, thus there should not be any further delays in the submission of the financial statements going forward.

AFS 2019-2020 has been submitted on 30th October 2020 as per deadline set in Closing of Accounts Circular 2019-2020.

Ministry of Economy and Office of Auditor General has received the despatch.
For clarifications, please contact Manager Finance on email dinesh.kumar@govnet.gov.fj or Head, Corporate Services on email edwin.kumar01@govnet.gov.fj Thank you.

Dr. Anjeela Jokhan Permanent Secretary Education, Heritage & Arts ALL COMMUNICATIONS TO BE ADDRESSED TO THE PERMANENT SECRETARY FOR EDUCATION, HERITAGE, AND ARTS Ministry of Health and Medical Services Public Accounts Committee Ministry of Infrastructure and Meteorological Services 1.
Have your Ministry put in monitoring mechanism to monitor and assess how recommendation been implemented?

- The ministry has set up an Audit committee in 2021 that reviews audit findings and collates the Ministry’s information in regard to the issues raised.

- There is also a monitoring and evaluation team set up under the new strategic planning unit which monitors progress of individual departments against the government targets in line with the approved processes.

(SOPs) 2.
(SOPs) 2.

What are the timelines to implement those recommendations not being implemented as yet?

Explain why the recommendations therein have not been implemented?

Issues to be Addressed 1 Anomalies in reporting of TMAs Should ensure that adequate disclosures are made in the financial statements for the users of the financial statements to make informed decisions 2 FEA grid and house wiring refunds in the Timelines to implement; Why not yet implemented?
- Recommendation duly noted - 2021 - All adequate disclosures have been made Energy Trust Account Should ensure that necessary action is taken to substantiate the closing balance held in the trust account - All deposits for housewiring and SHS have been refunded in 2017.
- The closing balance in the 3 P2P listing not regularly updated and reconciled with general ledger Should ensure that P2P is regularly updated and reconciled with general ledger 4 Delay in filling of vacant positions Should identify positions which needs to be filled and prioritize filling these positions Trust Account is funds from the SHS revenue and performance bonds from current contracts.
- 2020 - P2P is regularly updated and reconciled with general ledger (all is up to date) - 2020 - This process is in progress.
86% of all vacancies have been filled, the 14% is evaluated for filling and also for reprioritization for new positions (subject to final approval from MCS and reprioritization process from MOE based on government directives) 5 Internal control deficiency in inventory management – GSS Should consider appointing an experienced storeman who should be given responsibility of maintaining and updating inventory and related records 6 Projects on hold due to land consent should ensure that proper due diligence is exercised prior to awarding of contracts 7 Main trust fund receipts not used for solar home systems Should liaise with Ministry of Economy and find a solution for better utilization of funds held in the energy trust fund account - 2021 - A storeman has been engaged with GSS to undertake the duties noted.
For details, refer to MCTTT (GSS transferred) - The project referred was completed in 2020.

- Ministry will liaise with MOE for utilization of funds for Rural Electrification Projects.

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For those recommendations categorized as partially implemented that has been indicated by the Auditor General, are they now fully implemented?

If not, why not?

8 Variance between TMA building cash book with its bank reconciliation 1.
Should ensure that; - Review functions around bank reconciliations are strengthened - Cash book is properly reconciled to bank reconciliation statements and to general ledger - Signed copies of the monthly bank reconciliation are filled and securely kept at the division as well as at the headquarters - Variance of $27,221 to be rectified - Staff have been rotated, to improve understanding and ability to carry out reconciliations - Copies of reconciliations are kept with the divisions and HQ (2020) - The process of rectification of the $27,221 is awaiting Court clearance.
9 Anomalies in Joinery and Plumber shop sales Should ensure that; - Proper and updated records are kept for all sales such as quotations, invoicing, receiving of funds, issuing for JRS, status of work All records have been updated and kept by the Accounts section in the division and can be sighted when needed.

This has become part of the Ministry’s SOP, and we ensure that it is complied with.
The HQ Accounts team makes annual reviews of the Department financial operations - Job record sheets(JRS) are issued for all work carried out, supported with a sales invoice and receipt for payment received - Monthly sales reconciliations are carried out and any discrepancies noted is rectified and Journal adjustments are adequately supported 10 Adjustment for VAT not supported - Should - Provide supporting documents to support the adjustment of $322,428 in the financial statements and - Also ensure that monthly The supporting documents were stored separately due to the thick volume, they were later dispatched to OAG for review.
reconciliations of VAT are carried out and any variances noted are investigated and rectified Monthly reconciliation of VAT has been undertaken, if there are any variances, these are addressed within the following month.

11 Anomalies in revenue collection or cartage of freight allocation Should ensure that; - Fare on the new routes are authorized by the FCCC prior to it being charged and The dept.

has approval from FCCC, Ministry of Economy and GSS for all the rates.
- Details such as number of passengers travelling, cargo details, and rates applied are recorded in the receipts Details of passengers, cargo and related rates are noted in the Bill of Lading 12 Main trust fund reconciliation not performed monthly Should ensure that; - Monthly reconciliations are prepared between the trust account and the FMIS general ledger and any variances arising are properly investigated and resolved - Supervisory and review functions are strengthened in order to comply with the finance manual at all times The Ministry has addressed this issue, and continually updating as needed.
The Finance Manual has been reviewed and the submissions to MOE are submitted on the 15th of each month.

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What is your view on Audit Committees and the plan to establish and their role to monitor the implementation of recommendations from external or internal auditors?

The Ministry has set up an Audit committee to review and address any/all findings received from external/internal auditors.
This is to strengthen the Ministry’s response and action to address recommendations as well as capture all our varied services 5.

Implementation status as in Table 1.1 (Page 11) outlines the percentage of implementations by entity.

Recommendation below 50% of total recommendation yet to be implemented is an issue.

How does the entity plan try to address these recommendations and its timelines?

‘Who is taking responsibility to implement?


Overall, the Ministry has addressed all of the recommendations made, which brings a total of 20/20 (100%) recommendations addressed.

MINISTRY OF WOMEN, CHILDREN AND POVERTY ALLEVIATION File Reference: SWD 5/1 Date: 21 April 2021 The Chairperson, Standing Committee on Public Accounts, Parliament of Fiji.

Dear Chair, Re: Clarification of Issues – Audit Report on Follow Up of High of risk Ministries/Departments (PP No.

271 of 2020) 1.
271 of 2020) 1.

Thank you for the opportunity to respond to the questions from the Public Accounts Committee regarding the audit queries in relation to the Ministry of Women, Children and Poverty Alleviation as per your Memorandum, (Parl 6/15-7/12) dated 6 April 2021.

2.

We acknowledge the authority of the Standing Committee of Public Accounts under standing orders 112 (1) (b) of the parliament of Fiji.

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3.

Please find attached the response from the MWCPA in the two attachments (A) Guide to Questions (B) Table 1 Appendix 1 - Responses 4.

If you have any further queries, please do not hesitate to contact the Permanent Secretary, Ministry of Women, Children and Poverty Alleviation on jennifer.poole@govnet.gov.fj or Tel.

9991184.

Respectfully submitted.


Yours Sincerely Jennifer Poole (Ms) Permanent Secretary for Women, Children and Poverty Alleviation All correspondence to be addressed to Permanent Secretary for Women, Children and Poverty Alleviation 5th Floor Civic Towers, Victoria Parade, PO Box 14068, Suva, Fiji Island Tel: (679)3312 199 Fax: (679) 3303829 Website: www.welfare-women.gov.fj Appendix 1 Section A 1.0 Itemized below are the Ministry’s responses to the questions raised.
2.0 Have your Ministry put in monitoring mechanism to monitor and assess how recommendations have been implemented?

2.1 The Ministry has included this in its 2021-2022 Costed Operation Plan to be the responsibility of the Executive Support Unit.

3.0 What are the timeliness to implement those recommendations not being implemented as yet?

Explain why the recommendations therein have not been implemented?
4.1 Please refer to Table 1 in Appendix I 4.0 For those recommendations categorized as partially implemented that has been indicated by the Auditor-General, are they now fully implemented?

If not, why not?

5.1 Please refer to Table 1 in Appendix I 5.0 What is your view on Audit Committees and the plan to establish and their role to monitor the implementation of recommendations from external or internal auditors?
6.1 This is fully supported as audit highlights anomalies which must be corrected giving the opportunity for Management’s comments on what is workable as well as following up on the implementation plan.

6.0 Implementation status as in Table 1.1 (Page 11) outlines the percentage of implementations by entity.

Recommendation below 50% of total recommendation yet to be implemented is an issue.

How does the entity plan try to address these recommendations and its timeline?
Who is take responsibility to implement?
7.1 Please refer to Table 1 in Appendix 1 All correspondence to be addressed to Permanent Secretary for Women, Children and Poverty Alleviation 5th Floor Civic Towers, Victoria Parade, PO Box 14068, Suva, Fiji Island Tel: (679)3312 199 Fax: (679) 3303829 Website: www.welfare-women.gov.fj TABLE 1 SECTION B APPENDIX I Remarks  Timeline – Fixed Asset Register currently compiled which will be followed by BOS and is expected to be completed by 1st quarter of new financial year , 31/10/2021  Explanation – shortage of staff.
A new Head of Administration and Finance was Recruited for high level supervision.

 Responsible Officer - PAS  Timeline – 31/10/2021  Financial Manual (FM) will be finalized by 31/7/2021; some internal circulars issued  Responsible Officer - PAO Page 1 of 5 SECTION B APPENDIX I  Timeline – filing system was not in order during the time of the audit, documents could not be located  Proper system now in place but the challenge is the lack of storage space for finance files.
 Responsible Officer - PAO  Timeline – Fixed Asset Register currently compiled which will be followed by BOS and is expected to be completed by 1st quarter of new financial year , 31/10/2021  Explanation – shortage of staff  Responsible Officer - PAS Page 2 of 5 SECTION B APPENDIX I  Social Welfare Reform (SWR) currently in process to design MIS and review and address SOP’s Recruitment is underway for the National Coordinator Reform & Technical Advisors for SOPs etc.
 Training is included in the TA  Funding resources provided in Ministry annual allocation for reform.
 Responsible Officer – ADFS/SSA  Reform oversight/DSW/PS  Timeline cannot be standardized as processing time depends on the type of case/application received and response time from the recipient  Challenge will be considered during the finalization of the SWR on how to classify these applications Page 3 of 5 SECTION B APPENDIX I  Depends on the type of program concerned  Responsible Officer – ADFS/SSA  Timeline: on- going submission of monthly reconciliation done  Now fully implemented  Responsible Officer - PAO  WOG training attended by MWCPA Accounts Staff  Recovery procedures  done Internal circular issued on Management of Accountable Advance  Recommendation currently implemented & FM  Responsible Officer - PAO  Yet to be cleared due to the challenge of having to review past years’ records Page 4 of 5 SECTION B APPENDIX I  Current process of verifying will be completed by 31/10/2021  Responsible Officer - PAO  Risk Management Matrix is reflected in the COP 2020-2021  Policy is currently being developed and will be ready by 31/10/2021  Responsible Officer - DCS  Fully implemented  SOP with timelines will be finalized by 31/7/2021  Responsible Officer - PAO Page 5 of 5