Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697818864378.pdf (Fiji)
ACCOUNTABILITY IN THE PUBLIC SECTOR THROUGH QUALITY AUDIT SERVICES REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS Volume 3 Audit Report on Government Ministries and Departments - 2008 PARLIAMENTARY PAPER NO 12 OF 2014 ACCOUNTABILITY IN THE PUBLIC SECTOR THROUGH QUALITY AUDIT SERVICES REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS VOLUME 3 AUDIT REPORT ON GOVERNMENT MINISTRIES AND DEPARTMENTS - 2008 File: 102 30 September 2009 Commodore Josaia V. Bainimarama Prime Minister & Minister for Finance Office of the Prime Minister Government Buildings SUVA Dear Commodore Bainimarama AUDIT REPORT FOR THE YEAR ENDED 31 DECEMBER 2008 – VOLUME 3 In accordance with section 7 (7) of the State Services Decree 2009, I am pleased to transmit to you my audit report on the Government of the Republic of Fiji Islands for the year ended 31 December 2008.
Tevita Bolanavanua AUDITOR-GENERAL VOLUME 3 13.

Office of the Director of Public Prosecutions 14.

Ministry of Justice 15.

Department of Information 16.

Fiji Military Forces 17.

Fiji Police Force 18.

Ministry of Education 19.


Ministry of Health, Women and Social Welfare REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 13 Office Prosecutions of the Director of Public Role and Responsibilities The Office of the Director of Public Prosecutions is responsible for prosecuting appeals before the Fiji Court of Appeal and the Supreme Court.
In addition, all High Court trials are prosecuted by State Counsels who also handle appeals to the High Courts at Suva, Lautoka and Labasa.

Cases of special difficulty or of public interest in the Magistrates Court are handled by the Director of Public Prosecutions Office.
Other significant works of the department includes the determination of complaints against police and prison officers, the provision of written advice to the Commissioner of Police, the Director C.I.D and to other government departments and statutory organisations.

The Director also considers written representations concerning criminal cases from aggrieved persons, defendants or from their counsels.
Table of Contents 13.1 13.2 13.3 13.4 13.5 13.6 FINANCIAL STATEMENT ........................................................................................................................ 1 Audit Opinion .................................................................................................................. 1 Statement of Receipts and Expenditure ........................................................................ 2 Statement of Output Costs ............................................................................................. 2 Appropriation Statement ................................................................................................ 3 Statement of Losses ...................................................................................................... 4 Trust Account Statement of Receipts and Payments .................................................... 4 AUDIT FINDINGS .................................................................................................................................... 4 Agency Financial Statements ........................................................................................ 4 13.7 FNPF Reconciliation ...................................................................................................... 5 13.8 13.9 VAT Reconciliation ......................................................................................................... 6 Appendix 13.1: Statement of Output Cost for 2008 ................................................................... 7 Appendix 13.2: FNPF Reconciliation .......................................................................................... 8 Appendix 13.3: VAT Reconciliation ............................................................................................ 8 FINANCIAL STATEMENT 13.1 Audit Opinion The audit of the 2008 accounts of the Office of Director of Public Prosecutions resulted in the issue of a qualified audit report.
The accounts were qualified as the amounts reflected in the Statements of Output Costs have been estimated since the facility to allow the measurement and accounting of these costs has yet to be Office of the Director of Public Prosecutions Section 13: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ integrated in the Financial Management Information System of government.
It is not possible therefore to determine the accuracy of the expenditures incurred by the Office under each output.

13.2 Statement of Receipts and Expenditure The Office incurred a total expenditure of $4,070,240 in 2008 compared to $3,721,728 in 2007.
Table 13.1: Statement of Receipts and Expenditure for 2008 Description RECEIPTS State Revenue Agency Revenue 2008 $ 2007 $ 8,323 0 7,823 3,061 TOTAL REVENUE 8,323 10,884 EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure 2,942,820 2,456,368 49,967 188,021 154,694 257,189 87,355 3,785,949 3,193,594 66,437 193,320 209,849 282,036 91,487 - 161,788 - 161,788 - 94,852 - 94,852 Value Added Tax 122,503 433,282 TOTAL EXPENDITURES 4,070,240 3,721,728 Revenue declined by $2,561 or 24% due to the decline in the stale cheques written back to revenue.
There was a net increase in expenditure in 2008 by $348,512 or 9% when compared to 2007 as a result of increases in established staff cost by 20%, maintenance and operation by 36%, purchase of goods and services by 10% and capital purchases by 71%.

13.3 Statement of Output Costs The Office has 2 outputs, as prescribed in the Budget Estimates 2008.

These are detailed in Appendix 13.1.


Office of the Director of Public Prosecutions Section 13: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 13.4 Appropriation Statement The Office incurred expenditures totalling $4,070,240 in 2008 against the budget of $4,641,800 resulting in a savings of $571,560 or 13%.

Details of expenditures against the budget estimates are provided in Table 13.2.
Table 13.2: Appropriation Statement for 2008 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Purchases Capital Grants & Transfers Total Capital Expenditure 13 Value Added Tax Budget Estimate $ 3,400,400 50,400 220,000 198,000 318,700 0 190,000 4,377,500 0 132,000 0 132,000 132,300 TOTAL EXPENDITURE 4,641,800 Changes $ 0 22,000 (17,900) 46,400 (17,500) (90,900) (57,900) 57,900 57,900 0 0 Revised Estimate $ Actual Expenditure $ Carry – Over $ Lapsed Appropriation $ 457,580 5,963 8,780 34,551 19,164 0 7,613 533,651 0 28,112 0 28,112 9,797 571,560 The Ministry of Finance approved the following transfer of funds during the year: a) $32,500 from SEG 7 Special Expenditure to SEG 9 Capital Purchases.
b) $38,000 from SEG 7 Special Expenditure to SEG 4 Maintenance & Operations.

c) $22,000 from SEG 7 Special Expenditure to SEG 2 Unestablished Staff.

d) $20,000 from SEG 5 Purchase of Goods and Services to SEG 9 Capital Purchases.

e) $12,000 from SEG 4 Maintenance & Operations to SEG 9 Capital Purchases.

f) $3,400 from SEG 3 Travel & Communication to SEG 9 Capital Purchases.

g) $2,500 from SEG 3 Travel & Communication to SEG 5 Purchase of Goods and Services.
h) $1,600 from SEG 4 Maintenance & Operations to SEG 7 Special Expenditure.

However the transfers were not necessary as the original budgets under the two allocations were sufficient to cover all expenses.

Office of the Director of Public Prosecutions Section 13: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 13.5 Statement of Losses The Office did not record any loss of fixed assets or money during the year.
Stock take of assets was carried out in August 2007 for all stations of the Office of the Director of Public Prosecutions.

The Office has yet to receive any response from the Ministry of Finance for request of write-offs of unserviceable assets.

13.6 Trust Account Statement of Receipts and Payments The Office receipted $125,453 from the sale of exhibits of a vessel (forfeited assets) where government is a beneficiary.

The details of the forfeited assets are provided in Table 13.3.
Table 13.3: Statement of Receipts and Payments – Forfeited Assets Description Opening Balance Receipts Sale of Fishing Vessel Court charge Exhibit Fisheries Dept Prosecution Courses Total Receipts Payments 2008 $ 1,041 51,000 2,000 49,790 22,663 125,453 - Closing Balance 126,494 AUDIT FINDINGS 13.7 Agency Financial Statements Commencing 2006 financial year, each annual report must include financial statements which have been prepared and signed in accordance with these Instructions, audited by the Auditor General, and accompanied by an audit opinion prepared by the Auditor General.1 The draft financial statements must be submitted to the Auditor General by 31 March in the following year, or within such other time as agreed to with the Auditor General.2 The Office of the Director of Public Prosecutions submitted its Agency Financial Statements for audit on 03/04/09.
Audit noted that the Agency Financial Statements were not prepared in accordance with the requirements of Section 82 and Schedule 1 of the Finance Instructions 2005.
1 Finance Instructions 2005 – 81 (2) 2 Finance Instructions 2005 – 81 (3) Office of the Director of Public Prosecutions Section 13: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The following discrepancies were noted:  The Office failed to prepare and submit as part of the Agency Financial Statements the Statement of Losses, Statement of Assets and Liabilities and Notes to the Statement of Assets and Liabilities.
 The amounts reflected in the Statement of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs is yet to be integrated in the Financial Management Information System of government.

The Statement of Output Cost balances are derived by feeding the revised budgeted figures into a template, which will automatically apportion the figures amongst the Office’s Output Cost Centres.
Non compliance with Finance Instructions in the preparation of the financial statements has restricted the scope of the audit and will be included in the audit report as qualifications.

Recommendation The Office should ensure that the requirements of the Finance Instructions 2005 section 82 are strictly complied with regards to the preparation of the Agency Financial Statements.
Management Comments The Office of Director Public Prosecutions respects the provisions stipulated in the Financial Instructions 2005 section 82 and will adhered to the requirements as stated.

We cannot ascertain a Statement of Losses and Statement of Assets and Liabilities in view of the fact that Board of Survey for 2008 was not carried out and we cannot determine to provide true figures on the Statement of Losses and Assets and Liabilities.
The amount reflected in the Statement of Output Costs was derived from the expenditure incurred as at December 2008 and was inserted in the template designed by Ministry of Finance - Budget Division and this reflects the Output Costs 1 and 2.
13.8 FNPF Reconciliation Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee is employed by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.3 The current rate of contribution (effective 1st July, 1999) is 16 cents on each dollar earned, with the employer and employee each contributing 8 cents each.
Contributions that are paid after the due date carry a surcharge at a rate of 2%.

Failure to pay contributions on the due date is a serious and is a punishable offence.

4 A reconciliation of FNPF contributions against salaries and wages reported in the Financial Statements revealed a variance $533,568.

Refer to Appendix 13.2 for details.

The above variance implied that the Office underpaid FNPF contributions of its employees.
Recommendations The Office should review its FNPF records and reconciliations and provide explanations for the variance.
3 Chapter 219 – Fiji National Provident Fund – Section 13 (1) 4 www.fnpf.com.fj –official web site address Fiji National Provident Fund Office of the Director of Public Prosecutions Section 13: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Management Comments The Office of Director Public Prosecutions respects the findings and recommendations.

Grateful if the following could be noted.


 Monthly amount paid to FNPF contributions was derived from the CS Report from Ministry of Finance - Salaries Section, which has details of employees’ fortnightly contributions.

This was properly reconciled against the Departments Payroll before payment is done.

Any manual payment contribution could be derived from the FMIS – (AP711) which uphold all payments that are due to be paid.
13.9 VAT Reconciliation Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of twelve and a half percent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.5 A review of the VAT returns and supporting documents and VAT reconciliations carried out during the audit revealed an un-reconciled balance of $229,232 between the taxable supplies as per VAT Return and total income/expenditure as per the Statement of Receipts and Expenditure.
Refer to Appendix 13.3 for details.

In addition, VAT input as per VAT returns totalled $129,359, whereas the general ledger recorded VAT input of $122,503 resulting in a difference of $6,856.

Recommendations  The Office should review its VAT records and reconciliations and provide explanations for the variances.

 Supervisory checks on the preparation of VAT Returns should be improved to ensure that balances reflected in the VAT Returns reconcile with the GL.
Management Comments The recommendations as set out are noted.

However, we would be grateful if the following could be noted:  Preparation of Vat Return was done monthly from the figures derived from the GL Report from the Ministry of Finance – FMIS.
5 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – section 15 (1) Office of the Director of Public Prosecutions Section 13: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 13.1: Statement of Output Cost for 2008 Portfolio Leadership, Policy Advice and Secretariat Support Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Costs Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 29,429 664 1,934 2,098 2,820 - 916 37,860 - 1,618 - 1,618 24,569 500 1,881 1,538 2,572 - 874 31,930 - 949 - 949 1,225 4,332 40,703 37,211 Prosecution of Suspected Offenders Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Costs Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Costs 2008 $ 2007 $ 2,913,391 65,775 191,384 207,752 279,216 - 90,572 3,748,090 2,431,354 49,468 186,139 152,109 254,617 - 86,482 3,161,170 - 160,169 - 160,169 - 93,903 - 93,903 Value Added Tax 121,278 428,838 TOTAL EXPENDITURE 4,029,537 3,683,911 Office of the Director of Public Prosecutions Section 13: Page 7 REPORT OF
 THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 13.2: FNPF Reconciliation (a) Total FNPF against salaries and wages for 2008 FNPF as per financial statement Less: FNPF for December 2007 Add: FNPF for December 2008 Gross pay subject to FNPF ($176,307.16 divided by 0.08) (b) Salaries and wages for 2008 subject to FNPF: Salaries, wages and allowances as per financial Statement Less: Salaries, wages and allowances not subject to FNPF Salaries, Wages &
 Allowances for 2008 Subject to FNPF Variance Appendix 13.3: VAT Reconciliation $ 177,726 36,071 141,655 34,652 176,307 2,203,838 3,009,257 271,851 2,737,406 $(533,568) Variance between the taxable supplies as per VAT Return and the total income/expenditure as per the Statement of Receipts and Expenditure: Description Total Income/Expenditure as per Expenditure Statement Less: Expenditure not subject to VAT SEG 1 Established Staff SEG 2 Government Wage Earners 2,942,820 66,437 Less: Total Taxable supplies as per VAT return Difference $ 4,070,240 3,009,257 1,060,983 1,290,215 (229,232) Variance between the actual VAT payments for 2008 and the balances disclosed in the general ledger (FMIS): Description VAT payment (VAT payment to FIRCA and VAT input) as per Statement of Financial Operation VAT payment (VAT payment to FIRCA and VAT input) as per VAT returns for the year Difference $ 122,503 129,359 (6,856) Office of the Director of Public Prosecutions Section 13: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 14 Ministry of Justice Role and Responsibilities The Department of Justice is responsible for the efficient and effective delivery of services relating to all the Registries.
Justice Department will be the point of contact for all those requiring registration of properties, stamp duty, and company registration.

The Fiji Prisons Service is responsible for the safe, secure and humane treatment of persons in custody by providing opportunities to correct offending behaviour, develop work and life skills and perform community service.
Under the framework of the Fiji Prisons Act and Public Service Administrative Guidelines, the Fiji Prisons Service works towards enhancing the quality of custodial responsibilities, improve inmate rehabilitation programmes, developing human recourses, effective use of resources and modernizing the service.
Table of Contents 14.1 14.2 14.3 14.4 14.5 CONSOLIDATED FINANCIAL STATEMENT .......................................................................................... 2 Audit Opinion .................................................................................................................. 2 Statement of Receipts and Expenditure ........................................................................ 2 Statement of Output Costs ............................................................................................. 3 Appropriation Statement ................................................................................................ 3 Statement of Losses ...................................................................................................... 4 AUDIT FINDINGS .................................................................................................................................... 4 Financial Statements...................................................................................................... 4 14.6 VAT Reconciliation ......................................................................................................... 5 14.7 14.8 FNPF Reconciliation ...................................................................................................... 5 Revolving Fund Account ............................................................................................... 6 14.9 DEPARTMENT OF JUSTICE
 .................................................................................................................. 7 14.10 Non-Accounting for Value Added Tax – Official Receiver ............................................. 7 14.11 Liquidation of Companies– Non Compliance to Procedures ......................................... 8 14.12 Discharged/Cancelled Liquidation and Bankruptcy Cases .......................................... 11 14.13 Follow Up – Issues from Previous Years’ Audits - 2007 .............................................. 11 14.13.1 Bank Reconciliation – Office of the Official Receiver ................................................ 12 DEPARTMENT OF PRISONS AND CORRECTIONS ........................................................................... 12 14.14 Procurement of Good and services ............................................................................. 12 14.15 Comparative Cost Analysis .......................................................................................... 13 Appendix 14.1: Statement of Output Costs for 2008 ............................................................... 15 Appendix 14.2: Vat Reconciliations ......................................................................................... 18 Appendix 14.3: FNPF Reconciliation ....................................................................................... 19 Appendix 14.4: Cancelled Liquidation and Discharged Bankruptcy Cases ............................. 20 Appendix
 14.5: Receipts not credited by Bank ........................................................................ 21 Appendix 14.6: Comparative Analysis ..................................................................................... 23 Ministry of Justice Section 14: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ CONSOLIDATED FINANCIAL STATEMENT 14.1 Audit Opinion The audit of 2008 accounts of the Department of Justice and the Prisons and Correction Department resulted in the issue of a qualified audit report.
The qualifications are as follows.

1.

The amounts reflected in the Statement of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.

It is not possible therefore to determine the accuracy of the expenditures incurred by the Ministry under each output.

2.
2.

The Financial Statements were incomplete as the Statement of Losses was not submitted for audit, contrary to Finance Instructions 82.

3.

There were significant variances in the FNPF Reconciliations, $17,678 for Department of Justice while the VAT and FNPF variances for Prisons and Corrections Department amounted to $201,826 and $2,783,445 respectively.
14.2 Statement of Receipts and Expenditure The Department of Justice and the Prisons and Correction Department collected revenue totalling $19,128,773 and incurred a total expenditure of $14,927,819 in 2008.

Refer Table 14.1 for details.
Table 14.1: Statement of Receipts and Expenditures for 2008 Description RECEIPTS State Revenue Stamp Duty Miscellaneous Fees VAT Registration Money Lenders Licence Surplus Burial Fees Prisons Industries Total State Revenue Agency Revenue OPR – Previous Years Commission Total Agency Revenue 2008 $ 2007 $ 17,502,551 1,049,605 146,715 317,840 26,745 149 42,825 39,710 19,126,140 14,019,394 709,681 137,999 339,688 27,812 140 36,836 80,577 15,352,127 2,077 556 2,633 4,985 160 5,145 TOTAL REVENUE 19,128,773 15,357,272 EXPENDITURE Operating Ministry of Justice Section 14: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Description Established Staff Unestablished Staff Travel and Communication Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure 2008 $ 9,769,405 344,020 413,197 1,170,420 1,572,870 20,143 333,399 13,623,454 2007 $ 9,913,740 355,331 405,228 833,868 1,477,626 28,921 154,364 13,169,078 740,412 32,084 772,496 947,016 67,600 1,014,616 Value Added Tax 531,869 1,502,624 TOTAL EXPENDITURE 14,927,819 15,686,318 There was an increase of revenue by $3,771,501 or 25% in 2008 when compared to 2007.
This was mainly due to the increase in the stamping of documents and also increase in demand for search and photocopies of documents.

There was a net decrease in expenditure in 2008 by $758,499 or 5% when compared to 2007.

This was mainly due to decline in Established Staff by $144,335 or 2%, Maintenance & Operations by $336,552 or 40% and Capital Constructions by $206,604 or 22%.
14.3 Statement of Output Costs The Statement of Output Costs consolidates the 6 outputs as prescribed in the Budget Estimates, contrary to the requirements of Finance Instructions.

These are detailed in Appendix 14.1.

14.4 Appropriation Statement The Ministry incurred expenditures totaling $14,927,819 in 2008 against the budget of $15,773,200 resulting in a savings of $845,381.

Details of expenditures against the budget estimates are provided in Table 14.2.
Table 14.2: Appropriation Statement for 2008 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfer Special Expenditure Ministry of Justice Budget Estimate $ 9,875,400 348,900 382,900 919,000 1,730,300 18,400 180,000 Changes (Note 4) $ - - 28,821 256,097 (105,812) 4,000 155,894 Revised Estimate $ 9,857,400 348,900 411,721 1,175,097 1,624,488 22,400 335,894 Actual Expenditure $ 9,769,405 344,020 413,197 1,170,420 1,572,870 20,143 333,399 Carry– Over $ Lapsed Appropriation $ 0 0 0 0 0 0 0 87,995 4,880 (1,476) 4,677 51,618 2,257 2,495 Section 14: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ SEG Item Total Operating Costs 8 9 Capital Expenditure Construction Purchases Total Capital Expenditure Budget Estimate $ 13,436,900 Changes (Note 4) $ 339,000 Revised Estimate $ 13,775,446 Actual Expenditure $ 13,623,454 1,549,800 170,000 1,719,800 (205,000) (134,000) (339,000) 1,344,800 36,000 1,380,800 740,412 32,084 772,496 13 Value Added Tax 616,500 TOTAL EXPENDITURE 15,773,200 - - 616,500 531,869 15,773,200 14,927,819 Carry– Over $ 0 0 0 0 0 Lapsed Appropriation $ 152,446 604,388 3,916 608,304 84,631 845,381 The Ministry of Finance approved the transfer of $339,000 between the SEGs of the Ministry’s appropriation head during the year: 14.5 Statement of Losses The Ministry did not provide a Statement of Losses for audit.
AUDIT FINDINGS 14.6 Financial Statements Commencing 2006 financial year, each annual report must include financial statements which have been prepared and signed in accordance with these Instructions, audited by the Auditor General, and accompanied by an audit opinion prepared by the Auditor General.1 The draft financial statements must be submitted to the Auditor General by 31 March in the following year, or within such other time as agreed to with the Auditor General.2 The Ministry submitted its Consolidated Agency Financial Statements for audit on 31/03/09.
Audit noted that the financial statements were not prepared in accordance with the requirements of Section 82 and Schedule 1 of the Finance Instructions 2005.
The following discrepancies were noted;  The Ministry failed to prepare and submit the Statement of Losses and Statement of Assets and Liabilities;  The amounts in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.
It is not possible therefore to express an opinion on the accuracy of the expenditures incurred by the Department under the output.

Non compliance with Finance Instructions in the preparation of the financial statements has restricted the scope of the audit and will be included in the audit report as qualifications.
1 Finance Instructions 2005 – 81 (2) 2 Finance Instructions 2005 – 81 (3) Ministry of Justice Section 14: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendation The Ministry should ensure that the requirements of the Finance Instructions are complied with regards to the preparation of the Agency Financial Statements.
Management Comments Audit recommendation is noted and we will ensure that we comply with Financial Instruction 82 of 2005 when compiling the 2009 Financial Statement.
14.7 VAT Reconciliation Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of twelve and a half percent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.3  Department of Prisons A review of the VAT returns reconciliations revealed significant un-reconciled variances between the taxable actual VAT payments and the total expenditure in the Statement of Receipts and Expenditure.
Audit also noted variance between the actual VAT payments for 2008 and the balances disclosed in the general ledger (FMIS) for Department.

Refer Appendix 14.2 for details.

The failure to prepare regular VAT reconciliation has resulted in the unexplained differences.

Recommendations  The Department should review its VAT records and reconciliations and provide explanations for the variances.
 Supervisory checks on the preparation of VAT Returns should be improved to ensure that balances reflected in the VAT Returns reconcile with the general ledger.

Management Comments The Dept will ensure the preparation of VAT returns compiled by the desk officer reconciles with the GL and that supervisory check is improved.
14.8 FNPF Reconciliation Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee is employed by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.4 3 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – section 15 (1) 4 Chapter 219 – Fiji National Provident Fund – Section 13 (1) Ministry of Justice Section 14: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  Department of Justice and Prisons & Corrections Department A reconciliation of FNPF contributions against salaries and wages reported in the financial statements revealed significant variances.
Refer to appendix 14.3 for details.

The variances implied that the Department has overpaid FNPF.

Recommendation  The Departments should review its FNPF records and reconciliations and provide explanations for the variances.

 The Departments should improve the maintenance of records and ensure that they are easily made available for audit purposes.

Management Comments Justice Department The variance was the result of an FNPF officer and a Housing Authority officer being part of our weekly payroll.
However, their salaries and FNPF payments were not part of our financial statement because they are funded by their respective companies.

The salaries and FNPF contribution of these two officers were recorded in trust allocation of the general ledger.

Prison Department The FMIS was off-line towards the end of the year 2008 thus the cheque was raised manually resulting in the variance.

14.9 Revolving Fund Account A ledger shall be maintained for advances and revolving fund accounts5.
With 3 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Supervisor shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.6  Prisons and Corrections Department The Department did not include the prepaid expense and the advance account balances in the revolving fund – miscellaneous reconciliations.

This has resulted in the variance of $3,042 between the department’s figure and that of the FMIS.
Refer table 14.3 for details: Table 14.3: Prepaid Expenses and Advances Accounts Number Accounts Description Dept’s Amount ($) FMIS Amount ($) Variance ($) 11520199011560203 Accounts Receivable 11520171999570101 Prepaid Expenses 11520171999570301 Total Advances 5 Finance Manual 2005 16.3.1 6 Finance Manual 2005 16.3.3 Ministry of Justice No Reconciliation No Reconciliation - - - 73 2,969 3,042 - 73 2,969 3,042 Section 14: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Furthermore, public funds are unnecessarily held when accountable advance are not cleared within the specified time.
It also indicates the laxity of the accounts section in minimizing the error.

Recommendations  The Department should ensure that in future the accountable advance is cleared within 7 days on returning to the station and charge interest for those that failed to retire the advances within the stipulated timeframe.

Prepaid expense and the advance account balances should be included in the revolving fund – miscellaneous account monthly reconciliation.
 Management Comments All advances were cleared by the end of 2008 and loaded into the system but the desk officer responsible was not familiar with the process on-line.

The FMIS team visited the office early in 2009 and trained the officer responsible on how to clear advances on-line.
DEPARTMENT OF JUSTICE 14.10 Non-Accounting for Value Added Tax – Official Receiver In any case where a return under Part VII (returns and payment of tax) of the VAT Decree is furnished which understates output tax or overstates input tax, that person shall subject to subsection (2) of this section and Section 70(1) of this Decree be liable to a penalty not exceeding the full amount of the deficient tax.7 From our review we noted that the Department did not account for the receipts and expenditure for the Office of the Official Receiver when preparing VAT Returns even though VAT was charged to clients for petition fees.
Revenue received from petition fees is held in trust with the Office of the Official Receiver.

The Department made incorrect payments of VAT to Fiji Islands Revenue & Customs Authority and could be charged additional penalty for the error.

Recommendations  The Department should account for transactions under the Office of the Official Receiver that are subject to VAT, while preparing the VAT Returns.

 The Department lodge the amended VAT Returns to avoid paying penalties.
Management Comments Our Accounts Section is liaising with Fiji Islands Revenue & Customs Authority for a separate VAT ID for Official Receiver’s office.
7 VAT Decree 1991,Section 76A, (1) (a) Ministry of Justice Section 14: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 14.11 Liquidation of Companies– Non Compliance to Procedures The Court may appoint the official receiver to be the liquidator provisionally at any time after the presentation of a winding up petition and before the making up of a winding order.8 In case where a liquidator is not appointed by the Court, the Official Receiver shall be the liquidator of the company.9 The liquidator in a winding up by the Court shall have power –  To sell the real and personal property and things in action of the company by public auction or private contract.
 To do all acts and execute, on the name and on behalf of the company all deeds, receipts and other documents and for that purpose to use when necessary the company’s seal.

 To prove, rank and claim in the bankruptcy, insolvency or sequestration of any contributory for any balance against his estate and to receive dividends in bankruptcy, insolvency or sequestration in respect of that balance as a separate debt due from the bankrupt or insolvent and rateably with the other separate creditors.
 To draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company with the same effect with respect to the liability of the company as if the bill or note had been drawn accepted made or endorsed by on behalf of the company in the course of its business.

 To raise on the security of the assets of the company any money requisite.

 To appoint an agent to do any business which the liquidator is unable to do himself.
 To do all such other things as may be necessary for winding up the affairs of the company and distributing its assets.
Trustee may deal with any property to which the bankrupt is beneficially entitled in the same manner as the bankrupt might have dealt with it.10 The sale of assets must be carried out in a transparent and competitive way to ensure that maximum value for money was obtained.11 The Official Receiver is to advertise the receiving order, the date of creditor’s first meeting and of the debtor’s public examination, and such other matters as it may be necessary to advertise.12 Although the guidelines are specifically stated in the Bankruptcy Act, audit noted discrepancies in the liquidation of several companies.
Refer to the following examples: Case 1: Golden West Enterprises Ltd Liquidation No.

13/2003 According to the information contained in the respective company file, the company wound up in April 2003 and the only petitioning creditor was a Gyaneshwar Sanehi Rup, who was owed $7,162.

The assets of the company were valued by S.T & Sons Ltd at $40,790; however the actual sales of the company’s assets amounted to $57,243 (sales of $28,778 on 24/06/05 and $28,465 on 24/05/08).
The sale of the company’s assets was done although a court order dated 12/02/08 allowing an appeal and rehearing of the case and that during that period, the Official Receiver was forbidden to engage herself in any sale of the company’s assets.

8 Companies Act 1978, Section 236 (1) 9 Companies Act 1978, Section 237 (d) 10 Bankruptcy Act 1978, Section 56 (e) 11 Finance Instructions (2005), Section 59 (3).
12 Bankruptcy Act 1978, Section 74 (e) Ministry of Justice Section 14: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Correspondences by the appellant’s lawyer revealed that the Official Receiver was reminded on several occasions not to deal with the assets of the company until the appeal process was exhausted.

However, the Official Receiver continued with the winding up process.

Case 2: Khan’s Shipping Liquidation No.


09/2005 According to the information contained in the respective company file, the company wound up on 23/09/05 and the only petitioning creditor was BP South Pacific Ltd, which was owed $57,823.90.

While this case was handled by the Official Receiver, the following anomalies were highlighted:  The Official Receiver invited tenders for Khan’s shipping motor vessel “Neha” prior to any valuation of the vessel.
 Khan Shipping applied to the Court to have the Order which vested “Neha” in the Official Receiver’s custody, be set aside.

Despite being on notice regarding the company’s application to the Court, the Official Receiver sold the vessel for $20,000.

The cost price of the vessel was $285,000.

As a result, the company incurred substantial losses as the market value of vessel could be much higher than the selling price of $20,000.
The company lost the sole temporary franchise for the route around Lomaiviti and lower Southern Lau.

In addition, the company lost the contract with the Fiji Shipping Corporation Ltd to cover the two routes on a permanent basis for a period of three years for $720,000.

The company suffered loss of daily cargo charges and passenger fares when it was providing its service on the temporary franchise.

Case 3: DG Garments Liquidation No.


59/2001 According to the information contained in the respective company file, the company wound up on 29/06/01 and the only petitioning creditor was ANZ Bank which was owed $64,877.59.

On 31/01/02, S.T.

& Son Ltd made an assessment on the value of the company’s assets comprising of office furniture, fittings and ready made garments for the purpose of sale by auction.

Audit noted that the valuation report did not state the quantity of these ready made garments.
On 15/08/03, the garments were sold by the Official Receiver to Harbour Centre Price Fighter for $3,500.

Documents to support the quantity of garments were not made available for audit purposes.

Hence, audit could not substantiate how many garments were sold and whether it was sold near market value.

Case 4: Woodpac (Fiji) Ltd Liquidation No.

110/2001 According to the information contained in the respective company file, the company wound up on 15/04/03 and the only petitioning creditor was Rolf Laxa.
A proof of debt of $68,006.25 was filed by Island Customs Agencies Ltd (ICAL).

Audit noted that the Official Receiver, on 17/09/03, paid ICAL the sum of $73,827.61.

Audit could not obtain a valid reason for the payment of an additional sum of $5,821.36 to ICAL.

Case 5: Om Chand Receivership No.


58/1987 According to the information contained in the respective file, Mr. Om Chand (f/n Charlie Misri) went into receivership on 29/02/98 and the only petitioning creditor was the Suva City Council that was owed $48,162.04 for rates.
The following anomalies were noted: Ministry of Justice Section 14: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  No meeting was summoned by the Official Receiver to verify the creditors claim.

 The Official Receiver, who was the trustee in bankruptcy, transferred Mr. Om Chand’s property situated at 350 Waimanu Road to Icon Investments Ltd on 23/11/06 without the consent or resolution of the owner.
 Speedy Valuation Ltd was engaged to undertake the property’s valuation that amounted to $250,000 as at 23/07/04.
Contrary to this, the property was sold at $200,000 to Icon Investments Ltd. Other valuations obtained include the following: Valuation Date 21/10/06 26/06/97 Registered Valuer Market Value ($) Apac Valuation Vidya Narayan Valuation 520,000 345,900  Audit obtained second opinion from Principal Valuer Apolosi Vinau of the Lands & Survey Department on 02/02/09 who confirmed that the highest bid of $200,000 from Icon Investments Ltd was questionable as the market for real estate was at its peak during 2004.
Hence, he agreed that it really did not make any sense why the tender price was less unless the buyer was pre- determined.

 A conflict of interest aroused as Mr. Mohammed Anwar Khan carried out his services as a lawyer to both the buyer of the property (Icon Investment Ltd) and the Official Receiver.

Mr. Khan was also a councillor of Suva City Council who dealt with Om Chand’s case during the Council’s meeting.
 The Official Receiver also failed to properly follow the procedures of the tender by accepting the tender of Icon Investments Ltd because of the following reasons: o Mr. Chand remained solvent as he had arranged a loan with the Colonial National Bank through his lawyers Maharaj Chandra & Associates on 03/04/06 of which the Official Receiver was aware of and despite this the property was transferred to Icon Investments Ltd on the same day (03/04/06) at 3pm.
o The Official Receiver failed to re-advertise the tender as the highest bid was below the market value of $250,000.

The Official Receiver had more than a fiduciary duty towards the debtors and has failed to perform her duties diligently as exemplified in the above cases, which resulted in substantial losses by the debtors.

Recommendations  The Department should implement stringent controls at the Official Receiver’s Office to avoid abuse of trust and minimize favoritism and personal gain.
 An internal investigation should be carried out and the Official Receiver should be disciplined accordingly.

Management Comments 1.

Upon checking the above files, we agree with the comments by the Audit Report.

2.

At the time before the 2008 Audit, there was no proper channel in regards to verifications of documents or signing of cheques for payment.

The Official Receiver had the last say on all payments that is needed to be done.

3.
3.

There was no Tender Committee to overseer the sales and purchase of seized items.

4.

It is therefore concluded that the discrepancies found are true and therefore on recommendation is to pursue further investigations by police or by other means “IF” needed be for the sake of the office transparency and accountability.
Ministry of Justice Section 14: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Implemented Procedures 1) A Tender Committee had been appointed for the sale of all seized assets.

2) The signing of cheque is solely done by the Justice Accounts Section, upon checking and verifying with the Deputy Official Receiver and Acting Administrator General.
3) The office is engaging Attorney General’s chambers legal officers to act on behalf of the office rather than appointing private law firms.
14.12 Discharged/Cancelled Liquidation and Bankruptcy Cases In the case of any company whether limited or unlimited, when all the creditors are paid in full, any money due on any account whatever to a contributory from the company may be allowed to him by way of set off against any subsequent call.13 Certain liquidation and bankruptcy cases have been cancelled but the accounts were still open with balances either to be refunded to the respective Company Directors or journalised to the official receivers fees account.
The issue was also reported and discussed in previous years audit but the department failed to take corrective actions.

Refer to Appendix 14.4 for examples.

Fraud and mismanagement of funds increases if funds are unnecessarily maintained in the trust fund accounts.

Recommendation The Official Receiver should ensure that funds are paid out or cleared to avoid accumulation of funds in the trust accounts.
The risk of fraud or misappropriation of funds is also reduced when minimal funds are held trust by the Office.

Management Comments After a thorough inspection of individual files of these discharged liquidated cases and bankruptcies cases, the leftover monies have been identified to be either kept to the following accounts:  Balance of petition fees that were paid by the petitioning creditors  Balance of over payment by liquidated companies and bankruptcies clients.
Implemented Procedure 1) Advertisement is to be made in the dailies or by all other means possible for a contributors meeting to inform the directors about surplus funds.

If it’s impossible by all means to achieve (1) above, the balance is to be treated as Government Revenue.

2) 3) To facilitate the balance of petition fees for Government Revenue.

14.13 Follow Up – Issues from Previous Years’ Audits - 2007 We followed up on the issues that have been continuously highlighted in the previous years’ audits.
Some of the issues have yet to be resolved by the Department.
Refer to the following: 13 Companies Act, section 255(3) Ministry of Justice Section 14: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 14.13.1 Bank Reconciliation – Office of the Official Receiver A bank account for public money, other money or trust money must only be established with the approval of the Chief Accountant who shall inform the bank of the agency officers authorized to operate on it.

All bank accounts shall be reconciled monthly.


The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by the responsible officer.14 We noted from our review of the Bank Reconciliation Statement for December 2008 that some deposits from as far as nine years back are still reflected in the Bank Reconciliation as receipts not credited by the bank.

Refer to Appendix 14.5 for details.


The bank balances were therefore misstated and the risk of fraud is high as monies receipted were not banked.

Recommendation All outstanding lodgements should be followed up and cleared as soon as possible.

Management Comments Reconciliation Reconciliation of our records and the bank are done monthly.

Clearance of Charges With the Accounts Section involvement in September 2008, some pending charges were cleared from the bank reconciliation statement.
We were not able to clear pending items for 1990 to 2001 because relevant documents were not readily available for viewing and identification of charges.

Once we view the relevant documents and identify the charges then we can take appropriate steps to clear them.

We are putting in extra effort to locate the documents.

The Bank Balance We take note of Audit recommendation but we can only provide a true position once we have the records on hand.
Note Please note that officers that were in office from 1990 to 2002 are no longer in the Department or the Civil Service.

However, we are putting extra effort to clear them.

DEPARTMENT OF PRISONS AND CORRECTIONS 14.14 Procurement of Good and services The Accountant must obtain at least 3 written competitive quotes for any procurement of goods, services or works that cost more than $100 but less than $20,00015.
14 Finance Instructions 2005 – Part 6 – Assets -39(1) & (5) 15 Finance Instructions 12 (1) Ministry of Justice Section 14: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Public tenders must be called for any procurement of goods, services or works valued at $20,000 or more, unless a tender board has approved an exemption.16 Audit noted that no tender was called for the purchase of caps, tee shirts and shirts bought from Xoolu Enterprises Limited.
Refer table 14.4 for details: Table 14.4: Tender Not Called For Procurement valued above 20,000 Date 10/07/2008 Invoice No.

00000965 TOTAL Description - 3000 Embroidered Caps - 3000 Printed round neck tees - 80 Bula shirts with printed logo Amount ($) 18,000 25,500 1,760 45,260 In addition, the Department failed to obtain competitive quotations for items that cost more than $100 but less than $20,000.
Refer table 14.5 for examples: Table 14.5: Lack of quotations Date 13/03/08 16/05/08 04/07/08 08/08/08 02/12/08 12/12/08 Voucher No.

Vendor 16813 19150 20924 21816 25908 25253 Goodman Fielder Carpenters Mobil Station Glitz Lighting Glitz Lighting Carpenters Hardware Rotomould (Fiji) Ltd Amount ($) 5,118.80 1,201.02 7,010.00 2,935.13 1,995.00 2,300.00 As a result the Department was in breach of the procurement requirements as stated in the Fiji Prison Service’s Finance Manual.
Recommendations  The Department should adhere to the requirements of the tender process as per the Finance Manual.

 The Officers responsible should be cautioned for not adhering to the tender requirements.

Management Comments The Department will ensure that the tender process stipulated in the Fiji Prison Services Agency Manual will be complied with in future and those responsible for defying the regulations will be dealt with severely.
14.15 Comparative Cost Analysis The Accountant must obtain at least 3 written competitive quotes for any procurement of goods, services or works that cost more than $100 but less than $20,00017.
Audit noted that although quotations were obtained for the purchase of capital items for renovations of institutional quarters and piggery shed, the Department failed to do a cost analysis to determine cost of 16 Prisons and Corrections Department Finance Manual 2.3.1 17 Finance Instructions 12 (1) Ministry of Justice Section 14: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ each items from the suppliers.
As a result, the Department had spent more funds than necessary.

Refer to Appendix 14.6 for examples of comparative analysis.

The Department incurred extra costs for the purchase of capital items which could have been obtained at a cheaper rate.

Competitive quotations are required for a purpose and that is to ensure that goods and services are purchased from the most economical source.

If a comparative cost analysis is not carried out, the Department may incur costs which could have been avoided.
Recommendation For bulk purchases, it is recommended that the Department carry out comparative cost analysis of quotations obtained to ensure that items are purchased at the most economical prices.

Management Comments In future cost benefit analysis will be carried out to ensure that future procuring of goods and services are purchased from the most economical source.
Ministry of Justice Section 14: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 14.1: Statement of Output Costs for 2008 Department of Justice General Administration Description EXPENDITURE Operating Costs Established staff Government Wage Earners Travel and communications Maintenance & operations Purchase of goods and services Operating grants and transfers Special Expenditures 2008 $ 2007 $ 556,759 426,541 29,416 15,422 84,037 1,474 5,000 - 5,315 34,661 63,558 1,243 5,000 - Total Operating Costs 692,108 536,318 Value Added Tax 4,322 39,893 TOTAL COSTS 696,430 576,211 Registries Description EXPENDITURE Operating Costs Established staff Government Wage Earners Travel and communications Maintenance & operations Purchase of goods and services Operating grants and transfers Special Expenditures 2008 $ 2007 $ 828,249 1,012,574 34,683 78,110 48,749 153,329 20,776 - 56,836 45,167 149,770 11,185 - 50,347 Total Operating Costs 1,142,622 1,347,153 Value Added Tax 40,121 173,514 TOTAL COSTS 1,182,743 1,520,667 Ministry of Justice Section 14: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Department of Prisons Portfolio Leadership, Policy and Secretarial Support Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital
 Expenditure Capital Construction Capital Purchase Capital Grants & Transfers Total Capital Expenditure 2008 $ 2007 $ 1,708,397 - 63535 715,604 41,524 1,000 2,682,548 1,577,206 - 33,863 465,135 22,461 - - 2,098,665 - - - - 947,016 - - 947,016 Value Added Tax 121,926 372,792 TOTAL EXPENDITURE 2,804,474 3,418,473 Detention Services Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase Services Operating Grants & Transfers Special
 Expenditure Total Operating Costs of Goods & Capital Costs Construction Purchases Total Capital Costs 2008 $ 2007 $ 3,977,162 186,614 189,828 170,836 1,447,610 - 4,966 5,977,016 6,897,417 271,907 291,536 155,407 1,442,738 23,921 104,017 9,186,943 512,695 32,084 544,779 - 67,600 67,600 Value Added Tax 294,909 916,426 TOTAL EXPENDITURE 6,816,704 10,170,969 Ministry of Justice Section 14: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Detention Services - Welfare Description 2008 $ 2007 $ EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase Services Operating Grants & Transfers Special Expenditure Total Operating Costs of Goods & Capital Costs Construction Purchases Total Capital Costs Value Added Tax 1,799,052 93,307 44,500 31,074 5,863 14,143 - 1,987,939 227,716 - 227,716 40,412 TOTAL EXPENDITURE 2,256,067 - - - - - - - - - - - - - Education & Training – Detainees rehabilitation and Skills Development Description 2008 $ 2007 $ EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase Services Operating Grants & Transfers Special Expenditure Total Operating Costs of Goods & Capital Costs Construction Purchases Total Capital Costs 899,787 - 51,164 15,537 55,624 - 119,109 1,141,221 - - - Value Added Tax 30,179 TOTAL EXPENDITURE 1,171,400 - - - - - - - - - - - - - Ministry of
 Justice Section 14: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 14.2: Vat Reconciliations Department of Prisons Details Total Income/Expenditure as per Expenditure Statement Less: Expenditure not subject to VAT SEG 1 SEG 2 SEG 6 SEG 10 Less: Total taxable supplies as per VAT return Difference Details Actual VAT payments $ $ 13,048,646 8,384,399 279,921 15,143 - 8,679,463 4,369,183 4,167,357 201,826 $ $ VAT payments (VAT payment to FIRCA
 and VAT input) as per Statement of Financial Operation 487,426 VAT payments (VAT payment to FIRCA and VAT input) as per VAT returns for the year 569,941 Difference (82,515) Ministry of Justice Section 14: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 14.3: FNPF Reconciliation Department of Justice Details (a) Total FNPF against salaries and wages for 2008 FNPF as per financial statement Add: FNPF for December 2008 Payment made not entered into FMIS for 2008 Less: FNPF for December 2007 Gross pay subject to FNPF (108,540 divided by 0.08) (b) Salaries and wages for 2008 subject to FNPF: Salaries, wages and allowances as per financial Statement Less: Salaries and wages not subject to FNPF Salaries, wages and allowance for 2008 subject to FNPF Variance Department of Prisons Details Total FNPF against salaries and wages for 2008 FNPF as per Financial Statement Less: December 2007 FNPF Add: December 2008 FNPF FNPF for 2008 Gross Pay subject to FNPF (470,470/0.08) Salaries and Wages for 2008 subject to FNPF Salaries, wages and allowance as per financial statement Salaries, wages and allowance for 2008 subject to FNPF Variance $ 110,019 9,147 119,166 10,626 108,540 1,356,750 1,339,085 - 1,339,085 17,665 $ 454,915 104,682 120,237 470,470 5,880,875 8,664,320 8,664,320 (2,783,445) Ministry of Justice Section 14: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009
 ________________ Appendix 14.4: Cancelled Liquidation and Discharged Bankruptcy Cases Cancelled Liquidation Cases Company Name Bekana Garden Island Resort Limited Rex Investments Limited Pacific Pools & Construction Company Limited Channel 2(Fiji) Limited Enesi Yavala Taiwan Timber Company (Fiji) Limited Radar Pacific Pty Ltd Han Bae Enterprises (Fiji)Ltd Jafar Construction Discharged Bankruptcy Cases Company Name Abdul Aziz Akosita Toga Ratumaimuri Alfred Dewa Bimla Wati Jone Lutu Don Bruce Filimoni Rolagavau
 Arun Kumar Feroz Khan Gajen Nand Account No.
3506 311 Balance ($) 4,431.28 3,083.77 3297 3513 7194 2647 2445 2773 2556 Account Number 219 5490 279 470 7432 5644 4954 261 858 963 15.81 51.73 6,074.52 65.54 9,448.21 160.94 49.30 Balance ($) 213.07 83.00 174.06 25.32 771.64 504.62 171.85 170.46 127.50 63.48 Ministry of Justice Section 14: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 14.5: Receipts not credited by Bank Bankruptcy Deposits not credited: Date 26/11/1990 01/12/1990 06/12/1990 07/02/1991 19/04/1991 10/06/1992 10/06/1992 26/06/1992 02/07/1992 07/07/1992 29/07/1992 31/08/1992 31/08/1992 01/09/1992 01/09/1992 07/01/1993 08/01/1993 08/01/1993 27/04/1994 04/05/1995 16/02/1996 01/12/1997 01/12/1997 01/12/1997 09/08/2004 06/09/2004 07/09/2004 20/09/2004 22/10/2004 31/05/2005 15/12/2006 11/09/2007 15/05/2008 18/07/2008 22/07/2008 15/08/2008 Total Receipt No.
6564 6571 6572 240 - 1307 825 826 864 976 882 896 895 897 898 1304 1305 1306 978 3274 5609 2701 10237 10240 - - - - - - 24042 27792 29531 27917 29969 30050 Amount ($) Ministry of Justice Section 14: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Liquidation deposits not credited: Date 3/02/1989 3/02/1989 7/02/1989 20/11/1993 29/04/1989 7/04/1989 26/02/1989 - - - 6/03/1996 26/07/1996 30/09/1996 - - Total Receipt No.
- - - - - - 779 1962 1969 2092 2197 2476 9033 & 9034 10175 2351 Amount ($) 100 1,700.00 100 100 100 200 100 110 2,300 50 110 110 220 200 110 5,610 Ministry of Justice Section 14: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 14.6: Comparative Analysis Purchase of items from Suncourt Hardware for renovating quarters: Suncourt Hardware ($) R.C.
Manubhai ($) Vinod Patel ($) Variance ($) Item No Description Married Quarters 1 1 2 7 17 Sealer Paint Broken white 8 Blade Louvre Frame Turpentine Married Quarters 2 2 6 13 14 19 20 21 4mm Interior Plyboard Brown Stain 300*300mm QuaryTiles CTF Glue 20k Turpentine Sealer Paint Broken White Married Quarters 3 1 4130mm Roofing Iron Married Quarters 4 1 G24 Roofing Iron 4130mm Married Quarters 5 1 4130mm *G24 Roofing Iron Married Quarters 7 2 4130mm *G24 Roofing Iron Married Quarters 4130mm *G24 Roofing Iron 1,533.26 1,414.75 Married Quarters 11 1 4240mm Roofing Iron 882.00 813.40 Total Overspent Purchase of items from Carpenters Hardware for the piggery shed: Item No.
Item Description Carpenters Hardware($) Suncourt Hardware($) Vinod Patel($) Variance ($) 1 4 5 7 8 12 13 26 50 kg Bag Cement 2m * 700mm Mesh Wire 855 * 795mm Mesh 100*50mm Timber 100*75mm Timber 5m 75*50mm Timber 5m 24g Galv Roofing Iron 1.2m 10mm Deformed Bar 6m 12mm Deformed Bar 6m Fine Sand Portland Cement 50kg 2m * 700mm Mesh Wire 20mm Galv Pipe 6m 40mm Galv Pipe 6m 150 *75mm Timber 6m 150 * 50mm Timber 6m 151 * 50mm Timber 5m Ministry of Justice Section 14: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Item No.
Item Description Carpenters Hardware($) Suncourt Hardware($) Vinod Patel($) Variance ($) 27 28 29 30 31 32 33 34 35 36 38 39 75 *50mm Purlin 5m 24g Galv Roofing Iron 4.4m Galv Strap Flushing Galv 1.8m Ridge Cap 1.8m 200*25mm Fascia Board 5m Galv Nail 100mm Galv Nail 75mm Galv Nail 50mm 30mm Clout Nail Neuprene Washer Pink Primer Paint Ministry of Justice Section 14: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 15 Department of Information Role and Responsibilities The Department is responsible for disseminating information in Fiji and the government’s plans, policies and progress to promote development through a well informed and enlightened society.
Through its programme, it aims to create positive attitudes to community and national development, stimulate and mobilize support for government policies and programmes.

It aims to increase public awareness of their social, economic and political environment and to better inform them about major national development issues.

As government’s information agency, the Department also provides the link between Government and media and through the latter with people.
The Department will be responsible for developing and introducing new media legislation to develop a more vibrant media industry.

It will seek to promote and encourage industry initiatives in areas such as human resource development and training, professional development and networking in the media.

Its development policies on the mass media signify the critical role of this sector in the national development by placing special considerations on the people’s needs and aspirations.
National Archives The National Archives of Fiji is responsible for the appraisal, acquisition, safe custody, and the proper conservation and maintenance of the permanent records of the government.

This includes control of access of these records, the provisions of reference and information service to Ministries and Departments, students and members of the public, as well as the promotion of the scholarly research among the records held by it.
The Ministry also advises and assists Government Offices in their record management.

Further improvements are essential for the existing facilities to ensure the safety and proper preservation of public records.

Emphasis will be given to repairing damaged records and the restoration of micro filming of old and fragile documents.

The Reference Library and Research Section will continue to encourage compliance on the Fiji “legal deposit” requirements.
Table of Contents 15.1 15.2 15.3 15.4 15.5 FINANCIAL STATEMENT ........................................................................................................................ 2 Audit Opinion .................................................................................................................. 2 Statement of Receipts and Expenditure ........................................................................ 2 Statement of Output Costs ............................................................................................. 3 Appropriation Statement ................................................................................................ 3 Statement of Losses ...................................................................................................... 4 AUDIT FINDINGS .................................................................................................................................... 4 15.6 Agency Financial Statements ........................................................................................ 4 15.7 Operating Trust Fund Account ....................................................................................... 5 15.8 Unserved Bond by Susan Grey ..................................................................................... 5 15.9 Expendable Items Register ............................................................................................ 7 Appendix 15.1: Statement of Output Costs................................................................................ 9 Appendix 15.2: FNPF Reconciliation ....................................................................................... 10 Department of Information Section 15: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ FINANCIAL STATEMENT 15.1 Audit Opinion The audit of the 2008 accounts of the Department of Information has resulted in the issue of a qualified audit report.
The qualifications are as follows:  The amounts in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.

It is not possible therefore to determine the accuracy of the expenditures incurred by the Department under each output.
 The Department has not provided for audit a Trust Account Statement of Receipts and Payments, contrary to Finance Instructions 82(1).

The Financial Management Information System (FMIS) shows that the Department as at 31/12/08 had an overdrawn trust funds account balance amounting to $137,900.

 There is significant variance in the VAT and FNPF reconciliation totalling $366,635 and $11,152 respectively when compared to the accounts as at 31/12/08.
15.2 Statement of Receipts and Expenditure The Department collected revenue totalling $37,664 and incurred a total expenditure of $4,398,793 in 2008.
Table 15.1: Statement of Receipts and Expenditure for 2008 Description RECEIPTS State Revenue License Fees - Telecom & TV Other State Revenue Total State Revenue 2008 $ 2007 $ 11,368 0 11,368 1,114,000 141,020 1,255,020 Agency Revenue Revenue from Sale of Production Film Miscellaneous Sale of Photographs Other Agency Revenue Total Agency Revenue TOTAL REVENUE 9,487 16,809 0 0 26,296 37,664 18,143 12,458 0 0 30,601 1,285,621 EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Department of Information 1,030,919 161,770 135,098 153,983 1,290,089 144,533 128,872 211,517 Section 15: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Description Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchase Total Capital Expenditure 2008 $ 290,568 1,427,619 197,875 3,397,832 2007 $ 225,257 1,018,558 407,311 3,426,137 776,071 19,070 795,141 1,688,406 - 1,688,406 Value Added Tax 205,820 411,584 TOTAL EXPENDITURE 4,398,793 5,526,127 The decline in total revenue by $1,247,957 (97%) was due to the shift of the Department of Communication to the Ministry of Trade and Commerce in 2008.
Total expenditure declined by $1,127,334 (20%) due to decreases in capital expenditure by $893,265 (53%) and VAT by $205,764 (50%).

15.3 Statement of Output Costs The Statements of Output Costs are detailed in Appendix 14.1.

15.4 Appropriation Statement The Department incurred expenditures totalling $4,398,793 in 2008 against the budget of $4,422,700 resulting in a savings of $23,907 or 0.6%.

Details of expenditures against the budget estimates are provided in Table 15.2.
Table 15.2: Appropriation Statement for 2008 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Construction Capital Purchase Capital Grants and Transfers Total Capital Expenditure Budget Estimate $ 1,225,000 121,800 153,600 171,700 307,600 1,179,200 253,000 3,411,900 Changes $ (221,200) 34,720 (5000) (9,570) (10,950) 249,400 (61,400) (24,000) 800,000 0 0 800,000 0 24,000 0 24,000 Revised Estimate $ Actual Expenditure $ Carry – Over $ Lapsed Appropriation $ (27,119) (5,250) 13,502 8,147 6,082 981 (6,275) (9,932) 23,929 4,930 0 28,859 Department of Information Section 15: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ SEG Item Budget Estimate $ Changes $ Revised Estimate $ Actual Expenditure $ Carry – Over $ Lapsed Appropriation $ 13 Value Added Tax 210,800 Total Expenditure 4,422,700 0 0 210,800 205,820 0 4,422,700 4,398,793 0 4,980 23,907 15.5 Statement of Losses There was no loss of money recorded for the year 2008.
AUDIT FINDINGS 15.6 Agency Financial Statements Commencing 2006 financial year, each annual report must include financial statements which are prepared and signed in accordance with these Instructions, audited by the Auditor General, and accompanied by an audit opinion prepared by the Auditor General.1 The draft financial statements must be submitted to the Auditor General by 31 March in the following year, or within such other time as agreed to with the Auditor General.2 The Department of Information submitted its agency financial statements for audit on 14/04/09.
Audit noted that the financial statements submitted were not prepared in accordance with the requirements of Section 82 and Schedule 1 of the Finance Instructions 2005.

The following discrepancies were noted:  The department failed to prepare a trust fund account statement of receipts and payments.

 The 2008 budget prescribed eight outputs; however, the department only submitted four statements of output costs which were prepared according to the budget activities.
In addition, audit could not substantiate the balances reflected in the statements of output costs as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.

Recommendation The Department should ensure that the requirements of the Finance Instructions 82 are strictly followed in the preparation of the Department’s financial statements.
Management Comment The findings of the Audit team is noted and acknowledged.

First of all the trust account stated in the Finance Instruction refers to trust accounts for which separate bank accounts are maintained.

The Ministry of Information does not hold such trust account.
In terms of the operating trust accounts, these can not form part of 1 Finance Instructions 2005 – 81 (2) 2 Finance Instructions 2005 – 81 (3) Department of Information Section 15: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ the financial statement as these funds are deductions made from officers salaries and wages which are payable to institutions nominated by them such as insurance companies and those required by law such as FNPF.
The second part of the issue relates to output costing.

As far as the department is concerned, the budget is not set up to generate the output costs as required nor was any formula provided to be used by the Ministry to isolate the costs to each output.

However, the outputs of the ministry basically fit into the four activities.

This question should be directed to the Ministry of Finance who are responsible for the FMIS system.
15.7 Operating Trust Fund Account The audit noted from FMIS an overdrawn balance of $137,900.20 under the following Trust Fund Account.
Refer to Table 15.3 for details: Table 15.3: Details of the Operating Trust Fund Account Details Account No 341 Pd Maint-Suva Yyy Pd Alexander Stenhouse 388 Pd Psc Scholarship Loan 202 Pd Opr Current Year 384 Pd Opr Previous Year Xxx Pd Others 201 Pd Tax Arrears / Paye 204 Pd Depst A/C Recoverable 501 P D Employees Fnpf 11610116999861601 11610116699861211 11610116999861309 11610116999861101 11610116999861102 11610116999861299 11610116101861901 11610116101861902 11610116999861920 Total Recommendation Balances $ 12.00 21.78 35.87 40.00 100.00 378.84 5,648.77 16,367.68 115,295.26 137,900.20 The department should investigate the overdrawn (debit) balance and adjust accordingly.
Management Comment Again the comment of the Audit team is acknowledged as correct.

The current Chart of Accounts contributes to this factor.

It allows more than one account number to be able to exist for a single item.

For example, for 501 PD Employees FNPF we have the account number 1-16101-16999-861920 and 1-16101-16101-861920.

Both accounts are valid and one account records the debits.

The audit team noted that account no.

1-16101-16999-861920 had a balance of $115,295.26 debit.
The reconciliation statement provided to the audit team showed the combined balance of the two accounts which combines the debits and the credits and the total combined balance of the two accounts was $11,814.44 credit and represents the December FNPF deducted and payable in January of 2009.

The other debit balances are the result of misallocation during posting of data.
Some of these have already been adjusted in 2009 as the senior accountant is now working on the reconciliation of all trust account to make sure that charges are adjusted to their proper allocations.

the other records the credits while 15.8 Unserved Bond by Susan Grey The period of bond shall be equivalent to the length of training except that no period of bond shall exceed six years or less than one year.3 The amount of Bond is the actual amount spent on the officers training by the Government.
4 3 General Order 901 (b)(ii) Department of Information Section 15: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Officers who have been confirmed to the permanent establishment must, if they wish to resign give not less than 30 consecutive days of their intention, in order that other arrangements may be made for the filling of their posts.
The period of notice of resignation should exclude any annual and long service leave due to an officer before resignation.

Unless approved by the Commission, an officer who resigns without giving 30 consecutive days notice may be required to pay 30 days salary in lieu of notice.5 Ms Susan Naisara Grey (EDP No.49979), a former Director proceeded on study leave in 2006 to pursue a Master of Arts in Governance programme at the University of the South Pacific.
The officer’s approval to study with full pay was approved by PSC as she was earmarked to contribute to the leadership and executive role in providing advice to the Head of the Department.

The Officer was bonded for one year amounting to $41,367.

The audit noted that after completion of her studies the officer had served only eight months before tending her resignation.

The officer tendered her resignation on the 15/09/07 and vacated the office without giving the 30 days notice.
Audit confirmed through an email6 that she started work at the American Embassy on the 4th of October 2007.

Furthermore the officer had outstanding annual leave amounting $3,125.98 and a sum of $1,651.46 in overpaid salary after the officer had resigned thus, not complying with GO 222.

The unserved bond for four months amounted to $14,312.67.
Refer to Table 15.4 for details; Table 15.4: Susan Greys Outstanding Liabilities Summary Particulars Liability Failure to Fulfil Bond obligation Deemed to not have given 30 days notice 30 days less 3.5 days unutilized leave 4 months with balance of 26.5 days Value ($) 14,312.67 3,125.98 Overpayment of Salary pay 5/11/07 – 18/11/01 Total Liability owed by officer to Government 1,651.46 19,090.11 1,651.46 Recovery of the bond amount and salary overpayments was not enforced on the officer or her guarantors.
Recommendations  The Department should write to the officer’s current employers in order to recover the outstanding sum of $19,090.11.

If necessary Department should consider taking legal action against the officer.
 Management Comments This issue was raised in the audit of the 2007 accounts and the Ministry pursued the following strategies to recover the overpayment:  We spoke with Susan Grey and she agreed to make fortnightly payments of $100.00 to the ministry towards the recovery of this overpayment.

 The officer started this commitment by payment of cash to the Ministry’s Accounts Section.

She paid a total of $500.00.


4 General Order 901 (c)(ii) 5 Section 222 (a) of the General Orders 6 Email dated 4/10/07 Department of Information Section 15: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ This issue has again been included in the 2008 Audit report because the officer discontinued her payment.

We found out later that the officer had left the country to pursue her career with AUSAID and is based in Papua New Guinea.
The Ministry intends to pursue this by taking the following actions:  Contact the guarantor of her bond and seek redress from him.

 Inform the Department of Immigration to put a flag on her name so that we can issue a ‘stop order’ if and when she comes into the country so that a settlement plan can be agreed to before further travel is allowed.
This has been a learning experience for the Ministry for both the Finance and the Administration sections and we undertake to ensure that similar situation does not occur in the future.

15.9 Expendable Items Register Inventories which are material in value should be recorded in an inventory system.
7 The Clerical Officer (Admin) shall record items in an expendable items register.8The clerical officer (Admin) must ensure that the register is kept updated.9 All assets acquired with a cost in excess of $2,000, shall be recorded in a fixed assets register.10 The Clerical Officer shall record items valued at less than $2000 but more than $200, in an expendable items register.11 Physical assets provide a vital resource base that supports the delivery of outputs by the department therefore, it is important to ensure that all the assets are safeguarded and properly maintained.
The audit noted that some items were not taken on charge in the inventory register in 2008.

Discussion held with the officer in-charge revealed that the inventory register was only updated when vouchers are received from the accounts section.
Refer to Table 15.5 for examples of unrecorded items: Table 15.5: Expendable Items Register Date Payee Voucher Number 31/03/08 26/09/08 Copyer Marketing Ltd Office Products 4336 6108 13/10/08 Transcomm 02/12/08 04/12/08 Golden Dragon Music Shop University Book Centre 6326 6993 7014 09/12/08 Transcomm 7088 15/12/08 16/12/08 Compac Awa Office Product 7106 7171/7183 7 Finance Instruction Division 2 (44) 8 Finance Manual 2005 11.2.5 9 Finance Manual 2005 11.2.6.
10 Finance Manual 2005 11.1.2 11 Finance Manual 2005 11.2.5 Department of Information Details To replace drum unit to Samsung CLPSSON.

DELL Optiplex 740DT computer for 1676.19 and purchase a fax machine – HP office Jet 4255 for $398.82.

Payment for supplying & installing a Tele- conferencing unit.

Payment for providing a SM63LB microphone.

Being payments of books e.g.

A Fijian princess, Asia in the Pacific Islands covenant makers, Secondary Education in Fiji.
Payment for purchasing a Tatung GSM unit for the department.

Payment for supplying a digital Multimeter Fluke 179.

Purchase of full height Glass Sliding door cupboard Jastek A3 Laminator.
Amount ($) 495.00 2,075.00 1,972.04 540.00 550.95 800.00 480.00 715.00 Section 15: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Payee 19/12/08 19/12/08 Homleco Ltd Morris Hedstrom Limited Voucher Number 7211 7212 Details Supplying a Phillips digital voice recorder.

Payment for supply of 3 Simmons 2 door fridges and 3 Akita 17lt microwave oven.
Amount ($) 490.00 2,994.00 The officer responsible for maintaining inventory records was not provided with all the relevant documents from the accounts staffs.

As a result the department could face difficulty in identifying its assets should it be stolen, damaged or misplaced.

Recommendations  The officer responsible should record assets in the expendable items register as soon as soon they are received.
 The accountant should ensure that all relevant information is provided to the officer responsible for updating the inventory register.

Management Comments Inventory As already explained to the auditor on the day of audit and as mentioned in the audit query the inventories register is only updated upon production of documents in the form of invoices or copy of POs stating that the item/asset has been purchased and taken on board by relevant officer.
I as responsible officer for the inventories cannot go ahead with updating the register without sighting the relevant documents.

It was noted that those assets that were taken on board and taken on charge were the only ones that was provided to the inventories officer either by accounts or directly by the person doing the purchase.

Those that missed out were the ones which copies of invoices not reaching the inventories officer, thus the delay in updating the register.
Solution: Now the SCO-Admin will have to work with accounts to dig out all purchases for 2008 and update the register to take the assets on charge.

All purchasing officers in future should be advised to bring a copy of the invoice to the inventories officer to avoid this delay.
* Also an arrangement could be made if the inventories register be handled by accounts section as done in many ministries and Departments as they are the ones doing the most purchases and they are aware of the purchases done at any instance and they can straight away enter into the inventories register as soon as they receive the purchased invoice/receipt.
Department of Information Section 15: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 15.1: Statement of Output Costs Policy and Administration 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL EXPENDITURE Film and Television Unit 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Total Operating Costs Value Added Tax TOTAL EXPENDITURE News and Publications 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Costs Value Added Tax TOTAL EXPENDITURE 2008 $ 2007 $ 231,506 96,551 68,797 87,279 31,553 1,426,939 195,105 2,137,730 56,336 2,194,066 252,049 67,201 67,543 123,044 46,400 1,017,858 121,710 1,695,805 82,923 1,778,728 2008 $ 2007 $ 203,942 45,336 20,216 31,950 106,294 407,738 19,500 427,238 235,937 36,206 17,072 16,553 40,387 346,155 24,277 370,432 2008 $ 2007 $ 384,036 0 40,528 4,913 119,401 2,770 551,648 23,717 575,365 370,414 0 25,033 5,092 72,873 587 473,999 27,362 501,361 Department of Information Section 15: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS –
 SEPTEMBER 2009 ________________ National Archives 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Total Operating Costs Capital Expenditure Capital Construction Capital Purchase Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2008 $ 2007 $ 211,435 19,884 5,558 29,841 33,319 680 300,717 776,071 19,070 795,141 106,266 1,202,124 232,467 17,752 4,634 44,377 36,522 700 336,452 1,688,406 0 1,688,406 238,217 2,263,075 Appendix 15.2: FNPF Reconciliation (a) Total FNPF against salaries and wages for 2008 FNPF as per the financial statement Add: December 2008 FNPF paid in January 2009 Less: December 2007 FNPF paid in January 2008 FNPF Payments for 2008 Gross pay subject to FNPF ($97,885 divide by 0.08) (b) Salaries and wages for 2008 subject to FNPF: Salaries, wages and allowance as per financial statement Less: Salaries, allowance and wages not subject to FNPF.
Variance $ 96,658 10,428 107,086 9,201 97,885 1,223,563 1,215,253 2,842 1,212,411 11,152 Department of Information Section 15: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 16 Fiji Military Forces Role and Responsibilities Under Republic of Fiji Military Forces Act CAP 81, the RFMF is charged with, and responsible for the defence and state security of Fiji in the maintenance of Law and Order in land and sea, in support of the Police, Maritime Surveillance of Fiji’s Maritime Zone and relevant departments.
It also provides forces to international peacekeeping operations in line with Government foreign policy on world peace, troops with engineering expertise for nation building, in the area of rural infrastructure development and youth training for life skills.

In relation to these tasks, the following deliverables or responsibilities are undertaken in the following budgeted activities: Infantry Battalion Converts Policy & Administration  Strategic Analysis and Policy Advice to Commander RFMF.
 Strengthen defence co-operation with other forces.

Logistic Support Unit  Purchase of Stores & Supplies  Provide medical and maintenance services 3 FIR  Regular Infantry training and exercise  Assistance to Police Team  Security Role  Disaster Response FMF Engineers  RFMF Youth Trade Training  FMF Naval Division  Law Enforcement at Sea  Search and Rescue Service  Underwater Explosive Ordinance Disposal.
Territorial Forces  Support Service to Infantry Battalion & Peacekeeping Operations Overseas.

Iraq Mission  Deployment of troops to the United Nations Assistance Mission Iraq.
Peacekeeping Force, Sinai  Provision of Peacekeeping troops to MFO Force Training Group   Promotions Training  Overseas deployment training Land Force Command  General Administration and Operation of Land Forces Training of New Recruits Table of Contents 16.1 16.2 16.3 16.4 16.5 16.6 FINANCIAL STATEMENT ........................................................................................................................ 2 Audit Opinion .................................................................................................................. 2 Statement of Receipts and Expenditures....................................................................... 2 Statement of Output Costs ............................................................................................. 3 Appropriation Statement ................................................................................................ 3 Statement of Losses ...................................................................................................... 4 Trading and Manufacturing Activity – Profit and Loss Statement .................................. 4 AUDIT FINDINGS .................................................................................................................................... 5 Agency Financial Statements ........................................................................................ 5 Section 16: Page 1 Fiji Military Forces 16.7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS –
 SEPTEMBER 2009 ________________ 16.8 Operating Trust Fund Account ....................................................................................... 6 16.9 Drawings Account .......................................................................................................... 6 16.10 RFA - Miscellaneous ...................................................................................................... 7 16.11 FNPF Reconciliations..................................................................................................... 8 16.12 VAT Reconciliation ......................................................................................................... 9 16.13 Excessive Over-Expenditure ........................................................................................ 10 16.14 Trading and Manufacturing Account ............................................................................ 11 16.15 Salary Overpayment .................................................................................................... 12 16.7 Manual Payments ........................................................................................................ 13 16.8 Tenders Not Called for Supply of Goods and Services ............................................... 14 16.9 Non Issuance of Local Purchase Order ....................................................................... 15 16.10 Local Purchase Orders Approved In Excess of Delegated Authority
 .......................... 17 APPENDIX 16.1: Statement of Output Costs .......................................................................... 20 APPENDIX 16.2: FNPF Reconciliation .................................................................................... 24 APPENDIX 16.3: VAT Reconciliation ...................................................................................... 25 FINANCIAL STATEMENT 16.1 Audit Opinion The audit of the 2008 accounts of the Fiji Military Force resulted in the issue of a qualified audit report.
The qualifications are as follows: 1) 2) 3) 4) The amounts in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.

It is not possible therefore to determine the accuracy of the expenditures incurred by the Force under each output.

The Force incurred an over-expenditure of $2,691,923 in 2008.
The Force has not provided a Trust Fund Account Statement of Receipts and Payments contrary to Finance Instructions 82 (1).The Financial Management Information System shows that the Force as at 31/12/08 had operating trust funds totalling $225,838.

There is significant variance in the VAT and FNPF reconciliations when compared to the accounts as at 31/12/08.
16.2 Statement of Receipts and Expenditures The Fiji Military Forces collected revenue totalling $606,794 and incurred a total expenditure of $84,044,973 in 2008.

Refer to Table 16.1 for details.
Fiji Military Forces Section 16: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Table 16.1: Statement of Receipts and Expenditures for 2008 Description RECEIPTS State Revenue Agency Revenue 2008 $ 2007 $ 91,267 515,527 101,207 781,587 TOTAL REVENUE 606,794 882,794 EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Construction Purchases Grants & Operations Total Capital Expenditure 73,813,841 260,018 647,280 2,810,887 4,279,676 0 719,116 82,623,677 252,666 1,634,152 3,744,285 29,943,740 0 113,778 82,530,818 118,312,298 167,997 373,676 0 541,673 0 110,291 0 110,291 Value Added Tax 972,482 7,862,525 TOTAL EXPENDITURE 84,044,973 126,285,114 Revenue decreased by $276,000 or 31% due to decline in the miscellaneous revenue (recoveries from previous years).
The decrease in overall expenditure by $42,240,141 or 34% was due to the decrease in established staff by $8,809,836 or 11%, purchase of goods and services by $25,664,064 or 86% and VAT by $6,890,043 or 88%.

16.3 Statement of Output Costs The Statement of Output Costs consolidates the 6 outputs prescribed in the Budget Estimates.

These are detailed in Appendix 16.1.


16.4 Appropriation Statement The Fiji Military Force incurred expenditures totalling $84,044,973 in 2008 against the budget of $81,353,050 resulting in an over-expenditure of $2,691,923 or 3%.

Details of expenditure against the budget estimates are provided in Table 16.2.
Fiji Military Forces Section 16: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Table 16.2: Appropriation Statement for 2008 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Costs Capital Expenditure Construction Purchases Grants & Transfers Total Capital Expenditure Budget Estimate ($) 69,999,200 196,300 553,100 2,745,600 4,464,700 716,500 78,675,400 Changes ($) 0 0 170,000 193,000 (63,000) 0 300,000 Revised Estimate ($) 69,999,200 196,300 723,100 2,938,600 4,401,700 716,500 78,975,400 Actual Expenditure ($) 73,813,841 260,018 647,280 2,810,887 4,279,676 719,116 82,530,818 950,000 638,000 0 1,588,000 (450,000) 0 0 (450,000) 500,000 638,000 0 1,138,000 167,997 373,676 0 541,673 13 Value Added Tax 1,258,400 (18,750) 1,239,650 972,482 TOTAL EXPENDITURE 81,521,800 (168,750) 81,353,050 84,044,973 Carry– Over ($) Lapsed Appropriation ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 (3,814,641) (63,718) 75,820 127,713 122,024 (2,616) (3,555,418) 332,003 264,324 0 596,327 267,168 (2,691,923) 16.5 Statement of Losses The RFMF did not report any loss of money or fixed assets during the financial year ended 31/12/08.
16.6 Trading and Manufacturing Activity – Profit and Loss Statement A loss of $8,323 was recorded in the Trading & Manufacturing account for 2008.

Details are provided in Table 16.3.
Table 16.3: Profit and Loss Statement for 2008 Description INCOME Sales Cash Total Income EXPENSES Fuel & Oil Repairs & Maintenance of Fixed Assets Special Fees & Charges VAT Total Expenses 2008 ($) 2007 ($) 38,068 158,055 38,068 158,055 18,539 20,856 370 6,626 21,480 123,316 220 9,183 46,391 154,199 NET (LOSS)/PROFIT (8,323) 3,856 Fiji Military Forces Section 16: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ AUDIT FINDINGS 16.7 Agency Financial Statements Commencing 2006 financial year, each annual report must include financial statements which have been prepared and signed in accordance with these Instructions, audited by the Auditor General, and accompanied by an audit opinion prepared by the Auditor General.1 The draft financial statements must be submitted to the Auditor General by 31 March in the following year, or within such other time as agreed to with the Auditor General.2 The Fiji Military Forces submitted its Agency Financial Statement for audit on 29/04/09.
Audit noted that the Agency Financial Statement submitted by the Force was not prepared in accordance with the requirements of section 82 and Schedule 1 of the Finance Instructions 2005.

The following anomaly was noted:  The 2008 Budget prescribed six outputs; however, the Force submitted for audit ten Statements of Output Costs which were prepared according to the budget activities.
In addition, audit could not substantiate the balances reflected in the Statements of Output Costs as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.

Non compliance with Finance Instructions in the preparation of the financial statements has restricted the scope of the audit and will be included in the audit report as qualifications.
Recommendation The Force should ensure that the requirements of the Finance Instructions are strictly followed in the preparation of the Agency Financial Statements.

Management Comments  Recommendations made by the OAG are duly noted.

 The existence of 10 activities / cost centres is based on the functional roles of the cost centres which greatly facilitates the coordination and administration of the six outputs.
The functional roles are based on doctrinal a concept that guides national defence capabilities, institutional capacity building, operational tasking, career development and procurement of goods and services.
 The issue reducing the 10 activities / cost centres to mirror the six outputs will need extensive consultation between the Ministry of Finance and National Planning, the Ministry of Defence, national Security and Immigrations and the Republic of Fiji Military Forces prior to any resolution being reflected in a Defence White Paper.
1 Finance Instructions 2005 – 81 (2) 2 Finance Instructions 2005 – 81 (3) Fiji Military Forces Section 16: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 16.8 Operating Trust Fund Account When invoices or claims for payments are received, the payables officer shall record details in an accounts payable ledger.
The accounts payable ledger shall record all claims for payment except for procurement of invoices, which shall be recorded in the commitment ledger.3 Within 3 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Officer shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.
Any errors or misallocations must be immediately adjusted by way of journal vouchers.4 The Trust Fund Account should not be overdrawn.5 According to Appendix 23B of the Accounts and Finances, the balance of the operating trust fund account as at 31/12/08 was $225,837.83 in comparison to the Force’s record of $625,804.67 and had a variance of $399,966.84.
In addition, audit also noted that Employee FNPF Trust Fund account (1-19101-19999-861920) had debit closing balances of $980,151.89 which indicate that the account was overdrawn.

Failure to reconcile the force reconciliations with the general ledger is a breach of the Finance Instructions.

Recommendations  The Accounts Officer should ensure that the Force Trust Fund balances are checked against general ledger balances on a monthly basis to rectify the differences.
 Supervisory checks on monthly reconciliations should be improved.

Management Comments  The recommendation has been noted.

The final report on the trust fund account as at 31/12/08 was $625,804.67 as credit balance.

We have submitted a request to Ministry of Finance – FMIS Unit to provide RFMF with another report which has a balance of $225,837.83 only then we can prepare another balanced report on the trust fund and submit to the AG’s office.
 The debit balance on FNPF Trust fund has been an on going issue.

A BOI was conducted on the officers involved and also the FNPF has also indicated that some officers have FNPF balances which have been overpaid over the years.
Once the overpayment is refunded to RFMF this will then reduce the debit balance on FNPF trust account 16.9 Drawings Account The Accounting Head must make all attempts to issue stop notices for all cheques that have remained unpresented for more than 6 months.6 Stale cheques shall be reviewed each month to determine the need for a replacement cheque.

Where a replacement cheque is not required, actions should be taken to clear it.7 3 Finance Manual-Fiji Military Forces 2005.
Section 13.1.1 4 Finance Manual-Fiji Military Forces 2005.

Section 16.3.3 – 16.3.4 5 Office of the Auditor General Trust Fund Guide (5) 6 Finance Instructions 2005 40 (2) 7 Finance Instructions 2005 40 (3) Fiji Military Forces Section 16: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Scrutiny of the drawing account reconciliation revealed that numerous cheques issued from January to June 2008, remained outstanding for more than six months.
Replacement cheques and stop payment notices to the bank, where payees were untraceable, were not issued.

Unpresented cheques as at 31 December 2008 totalled $4,519,393.02, of which $1,067.90 were stale cheques.

Refer to the Table 16.4 for examples.

Table 16.4: Stale Cheques Date Cheque No.


21/05/08 28/05/08 05/06/08 09/06/08 19/06/08 19/06/08 19/06/08 Total 15782 15959 16099 16248 16357 16393 16414 Amount ($) 150.00 36.00 71.50 378.00 14.42 267.98 150.00 1,067.90 The Force Accountant has not made any effort to regularise the stale cheque balances.

Recommendation The Force should take necessary actions to regularize unpresented and stale cheques as outlined in Finance Instruction 40.
Management Comments   The recommendation from the OAG has been noted.

Measures have been instituted by HQ RFMF in 2009 to minimise the occurrence of unpresented cheques.

These include the conduct of regular review of commitments, lump sum payments of accumulated outstanding commitments, submission of weekly financial transactions and training of key logistics, purchasing and accounting staff.

16.10 RFA - Miscellaneous A ledger shall be maintained for advances and revolving fund accounts8.
With 3 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Supervisor shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.9 There were variances between the reconciliation and general ledger figures for the revolving fund account (RFA) miscellaneous account as at 31/12/08.

Refer to the Table 16.5 for details.
Table 16.5: Variances between Force Records and General Ledger Accounts Number Accounts Description 1-19101-19999-560203 1-19101-19999-569902 Malaya Pension AR Individuals Force Record ($) FMIS Records ($) Variance ($) 189,933.42 468,474.40 189,933.42 468,474.40 - - 8 Finance Manual 2005 16.3.1 9 Finance Manual 2005 16.3.3 Fiji Military Forces Section 16: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Accounts Number Accounts Description Force Record ($) FMIS Records ($) Variance ($) Advances 1-19109-19999-569902 Malaya Pension 1-19101-19999-569903 Malaya Widow Pension 1-19101-19999-570301 1-19101-19999-570302 Dishonoured Cheques 1-19101-19999-840602 Withholding Tax 1-19101-19999-850202 GL Deferred Income Open Item 1-19104-19999-850202 GL Deferred Income Open Item 1-19105-19999-850202 GL Deferred Income Open Item 1-19101-19999-850203 GL Deferred Income Open Item 4-19151-19999-560101 Total AR Govt Depts & Agency - 120,352.04 (381,859.55) - - 396,900.31 39.98 120,352.04 (381,859.55) 1,174.06 (4,057.00) 1,806,852.41 (232,234.79) (55,531.37) (6,290.00) 289.34 1,907,142.94 (39.98) - - (1,174.06) 4,057.00 (1,806,852.41) 232,234.79 55,531.37 6,290.00 (289.34) 1,510,242.63 The above anomalies imply that the monthly revolving fund reconciliations may not have been thoroughly scrutinised and checked.
Also failure to reconcile Force reconciliations with the general ledger is a breach of the Finance Instructions.

Recommendations  The Accounts Officer should ensure that the trust fund reconciliations are checked against general ledger balances on a monthly basis to avoid variances between the two ending balances.

 Supervisory checks on monthly reconciliations should be improved.
 The Force should ensure that in future the accountable advance is cleared within the stipulated timeframe of seven days to avoid accumulation of outstanding advances.

Management Comments  The recommendation has been noted.

 The trust fund reconciliations are always checked against the GL report that we received from Finance every month.
In this case the variances were due to the adjustments and postings that were done after closing of accounts for 2008 however the variance has been captured in our 2009 reconciliation.

 The RFMF will ensure to improve on its internal control measures in order to minimise unnecessary queries.
16.11 FNPF Reconciliations Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.10 Where charges are for payments to organisations through salary deductions, the relevant creditor account shall be credited.
When actual payment is made to the organisation, the creditor account shall be debited.11 A reconciliation of FNPF contributions against salaries and wages reported in the Financial Statements revealed variances.

Refer to Appendix 16.2 for details.


10 Chapter 219 – Fiji National Provident Fund – Section 13 (1) 11 Finance Manual 2005 – RFMF Section 4.7.3 Fiji Military Forces Section 16: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Discussion with the accounts officer established that the Force has been making FNPF contributions payments in advance since the 1990s.

However the actual amount of overpayment is yet to be determined.
The Force and the FNPF are working to determine the actual amount of overpayment which would be refunded to the Force.

Recommendations  The Force should review its payroll and FNPF records and reconciliations and provide explanations for the variances.

 Supervisory checks on records pertaining to payroll should be improved and to ensure that the difference is rectified.

Management Comments  The recommendation has been noted.
 The RFMF is currently in the process of rectifying the overpayment with FNPF.
This explains the variance which has been highlighted in this report and the RFMF will ensure to reconcile the records once the overpayment has been settled 16.12 VAT Reconciliation Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of twelve and a half percent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.12 Output VAT is payable to the Commissioner of Inland Revenue for the supply of all goods and services with the exception of zero rated and exempted supplies.
Payments effected by government departments for goods and services are thus subjected to VAT.13 Audit noted an un-reconciled balance of $308,007 between the taxable supplies in the VAT Return and the total income/expenditure in the Statement of Receipts and Expenditure.
Refer to Appendix 16.3 for details: Recommendations  The Accounts Officer should identify the errors and make necessary adjustments to reconcile the records  For any refund the Force must ensure that it is either recovered from FIRCA or offset against any dues.

 Supervisory checks should be carried out on the preparation of VAT Returns to ensure the records are correct.

Management Comments  The recommendation has been noted.
 The RFMF will ensure to identify the errors and make the necessary adjustments and we are also requesting the assistance from the AG’s office to confirm their figures before we reconcile our VAT records.
12 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – section 15 (1) 13 Finance Circular No 9/95 Fiji Military Forces Section 16: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 16.13 Excessive Over-Expenditure No officer may incur expenditure which results in the agency’s appropriation being exceeded without the proper authorisation of the Ministry of Finance, pending approval by Parliament.14 Audit analysis of the Expenditure Statement for the year ended 2008 revealed that the RFMF had excessively over spent its annual budget allocations for established staff, government wage earners and special expenditures.
The total over-expenditure for the Force amounted to $2,691,923.

Discussion held with the Force accountant revealed that the SEG’s 1- established staff and SEG 2 – government wage earners vote was overspent due to leave compensation payments and overpaid salary to some officers.
Refer to the Table 16.6 for details: Table 16.6: Overspent Expenditure Votes SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Costs Capital Expenditure Construction Purchases Grants & Transfers Total Capital Expenditure Revised Estimate ($) Actual Expenditure ($) 69,999,200 196,300 723,100 2,938,600 4,401,700 716,500 78,975,400 500,000 638,000 0 1,138,000 73,813,841 260,018 647,280 2,810,887 4,279,676 719,116 82,530,818 167,997 373,676 0 541,673 (Over) / under expenditure ($) (3,814,641) (63,718) 75,820 127,713 122,024 (2,616) (3,555,418) 332,003 264,324 0 596,327 13 Value Added Tax 1,239,650 972,482 267,167 TOTAL EXPENDITURE 81,353,050 84,044,973 (2,691,923) Excessive over-expenditures are indication of non adherence and ignorance to standing financial instructions which have been established to control over-expenditures.
Recommendations  The senior officers of the RFMF should take active roles in ensuring that the Force operates within its approved budget.

 Expenditures should be reviewed against the budget allocation on a monthly basis and reported to management for effective and efficient decision-making.

 Control should be put in place to curtail over expenditures.

Management Comments  Recommendations have been noted, and control measures have been enforced with additional checks being instituted.
14 Finance Instructions 2005 – Section 8 Fiji Military Forces Section 16: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  The RFMF 2008 approved established post is 3157 which is not fully reflected in the approved budget for 2008 although submissions have been forwarded to the Budget Division of the Ministry of Finance.
 The situation has been remedied in 2009, with increased provision of $15m for SEG 1 and by the  regularisation of and an increase in SEG 2 allocation.

Special Expenditure in SEG 7 included the expenditures related to military funerals which are mandated for the 22 service personnel who died while on active duty.

This activity has now been catered for under the allocation of $80,000 within SEG 4 for Activity 1(HQ LFC) in 2009.
In 2010 military funerals and related activities will be catered for under a specific allocation.

16.14 Trading and Manufacturing Account 16.14.1 Limited Account Each agency must include a statement of assets and liabilities in its annual financial statements.15 The entity should exercise proper economy in its commercial activity which results in a profit.

The Force incurred a loss of $8,323 from the Trading and Manufacturing Account (TMA) for the year ended 31 December 2008.
Refer to the Table 16.7 below.

Table 16.7: Loss from TMA Operations Item Income Expenses Net Loss Amount ($) 38,068 46,391 (8,323) Scrutiny of the Trading and Manufacturing Account revealed that the Force did not provide comparative figures of the items contained in the Profit and Loss Statement and the Balance Sheet.

In the absence of the comparative figures it will be difficult to compare the performance of the TMA operations from previous year.
Moreover the deviating ending balances were reflected in the balance sheet for the Trading and Manufacturing Account.

Refer to Table 16.8 for details: Table 16.8: Deviating Balance Sheet Figures Item Total Assets Total Liabilities Variance Amount ($) (54.15) 54.15 (108.30) Unbalanced accounts imply that the Force accountant may lack competency in preparing balance sheet.
15 Finance Instructions 2005 – Section 82 (1) Fiji Military Forces Section 16: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendations   The Force should investigate the cause of the loss from TMA operations.

The Force should include comparative figures in the Profit and Loss statement & Balance Sheet for the Trading and Manufacturing Account.
Management Comments  RFMF acknowledges the comments made in relation to the conduct of an investigation into the loss from TMA operations.

The balance of accounts of the TMA account actually reflects $50,000 in savings.

 The RFMF in its response to Internal Auditors from the MOF requested assistance from the Ministry to facilitate the training of TMA accounts staff and in the reconciliation at the end of the fiscal year.
 However it must be noted that the Training &Manufacturing activities generated by the Plant Pool is non- profit activity and to a great extent dictated by nation building initiatives directed by the Office of the Prime Minister.
16.15 Salary Overpayment The salary reconciliation must reconcile the difference between the previous fortnight payroll report and the current report, and must be prepared prior to each pay date.16 The audit noted that the Established and the Unestablished staff allocations were over spent by $3,878,359.

This implies that proper controls were not in place which resulted in over expenditure in SEGs 1 and 2 for the year 2008.

Refer to Table 16.9 details of over expenditure.


Table 16.9: Over Expenditure in SEGS 1 and 2 SEG Item Revised Estimate ($) Actual Expenditure ($) 1 2 Established Staff Unestablished Staff Total 69,999,200 196,300 70,195,500 73,813,841 260,018 74,073,859 (Over) / under expenditure ($) Percentage (%) (3,814,641) (63,718) 3,878,359 5 32 6 Over expenditure in salaries and wages has led to exhaustion of funds which could have been controlled and better utilized for urgent and needy causes.
Recommendation The Force should implement controls to avoid over expenditure in SEGs 1 and 2.

Management Comments  The 2% restoration in Pay 12/08 and 1% in Pay 26/08 together with pay level increments during the reporting period was not factored in the above calculations by the OAG.

 Additional payments were made in respect of leave due for officers who have retired, were seconded to the Civil Service or discharged from the force.
This enabled the discharge of outstanding leave liabilities in a timely manner.

 P&E has been under provided over the past years, however this has been addressed in the 2009 budget.

 There was no backdating of arrears to justify full payment of basic rate.
16 Finance Manual 2005 – Section 4.6.4 Fiji Military Forces Section 16: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 16.16 Manual Payments No manual payment of salary is permitted except on first appointment or upon written approval from the Accounting Head17.
Subject to the other provisions of the income tax act there shall be assessed, levied and paid a tax to be known as normal tax for each of assessment on ever dollar of chargeable income of (a) an individual whose total income, in the case, exceeds [$15,001], or any other person, other than a company, in respect of his chargeable income for the year of assessment [but a resident individual shall be exempt from normal tax to the extent that such normal tax, together with [basic tax] would reduce the balance of his total income to [$15,001] or less in any year]18.
The audit noted that salaries were paid manually without the prior approval of the Accounting Head and incorrect income tax rates were calculated resulting in less tax deductions and payments to FIRCA.

Refer to Table 16.10 for examples.

Table 16.10: Manual Payments and Incorrect Tax Formulae Pay Period Reg.
Number Officer Gross Pay PAYE ($) Tax Rate Applied (%) PAYE ($) Correct Tax Rate (%) 21504 Penjueli S.Sikuri 10,388.25 15 1,558.24 31 3,220.36 Amount Short Deducted ($) (1,662.12) 15/07/08 – 28/07/08 16/12/08/- 31/12/08 16/12/08/- 31/12/08 16/12/08 – 31/12/08 16/12/08 – 31/12/08 16/12/08 – 31/12/08 16/12/08 – 31/12/08 16/12/08 – 31/12/08 29193 Aisake Rabuku 4,601.80 30881 23865 Akosita Waqairawai Semi Rogoyawa 1,738.86 3,564.96 21674 Josefa Drugu 2,079.56 22669 Laisiasa Vunicagi 1,810.76 29186 25650 Tomasi Korovakaturaga Patrick Kaminieli Sloan 1,749.11 8 14 15 6.4 7.5 9.4 368.14 31 1,426.56 (1,058.42) 260.82 31 539.05 (278.23) 534.60 31 1,105.14 (570.54) 133.68 31 644.66 (510.98) 135.80 31 561.34 (425.54) 163.74 31 542.22 (378.48) 3,550.86 25.49 905.03 31 1,100.77 (195.74) Manual salary payments increase the risk of miscalculations when compared to computerized payments.
The improper tax deduction from salaries indicate the non compliance with the provisions of Income Tax Act and the under payment of tax to FIRCA.

Recommendation The Force Paymaster should ensure that correct tax rates are applied to all salaries and wages in compliance with the Income Tax Act.
17 Finance Manual 2005 section 4.5.14 18 Income Tax Act Cap 201 (Revised to 30 June 2006) Fiji Military Forces Section 16: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Management Comments  Manual payments highlighted were authorized by HQ RFMF.

Cases referred to above were for leave due and not taken prior to retirement or discharge from the force.

Other cases were for underpayments of promotion arrears.
 The tax computations were taken from the FIRCA tax table.

Variance for tax during the year is recovered from the individuals at the end of the financial year.

Be assured that tax calculated and deducted from pay is in no way tailored to benefit the individuals as the report seemed to imply.

 Recommendations for compliance with the Tax Act were noted.
16.17 Tenders Not Called for Supply of Goods and Services The Permanent Secretary must obtain at least three written competitive quotes for any procurement of goods, services or works that cost more than $100 but less than $20,000.19 Tenders must be called for procurement of goods, services or works that cost over $20,000.20 The Force purchased goods and services from suppliers that did not go through the normal tender process and without competitive quotations obtained.

Refer to Table 16.11 for details.
Table 16.11: Purchases In Excess Of $20,000 without Tender Supplier Goods /services Obtained Amount ($) Communication Technologies Masi Enterprise Singh’s Shopping Limited Wing Sang Limited Mahesh Syndicate Auto One Exporters East Tailors Crown Imports Omega Computers Viti Air-conditioning Limited Importers and Kelsten Engineering Limited Kasabias Brothers Jans Rental Cars Fiji Limited Office 2000 Limited Payment for equipment Payment for hire of buses Payment for general items Payment for food items Payment for general items Payment for supply of spare payments and servicing vehicles Payment for supply of garment Payment for supply of garments Payment for servicing computers Payment for supply, installation and servicing of air conditioners Payment for supply of heavy equipment.
Payment for supply of building materials Payment for hire of vehicles Payment for Stationery 52,843.50 156,538.13 66,736.62 563,675.44 627,423.49 148,836.09 72,686.44 639,476.32 60,877.37 222,191.26 54,300.00 50,954.83 24,915.00 36,001.69 Proper procurement procedures should be followed when goods and services are ordered.

Failure to do so could result in unauthorized and uneconomical payments.
Recommendation The Force should comply with provisions on procurement of goods and services as stated in the Finance Manual 2005 and Finance Instructions.

19 Finance Instructions 2005 12 (1) 20 Finance Instructions 2005 12 (4) Fiji Military Forces Section 16: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Management Comments  The RFMF acknowledges comments made in relation to the Tender Process.
 However, payments indicated were made in lump sum to clear long outstanding commitments.

This was a result of FMIS guidelines on the expenditure of a maximum of $30,000.00 a day to meet the cost of goods and services.

 There was no bulk buying done at Wing Sang to the limit as shown above, however cheque payment was done also include other payment from the different Purchase  Orders raised to the company with different invoices which has totaled to that sum.
 However the reason that there was no Purchase Orders raised for orders stated above was due mainly to the fact that the Purchasing Office was advised by our Accounts, to raise Payment Voucher only for all the services done as the FMIS system was not able to generate any Purchase Orders at the time, therefore all existing PO’s and Batching already in-putted into the system were to be cancelled and then manual payments was made to that effect to settle for the vouchers raised as it was the last payment for the year 2008.
Invoices provided by the respective company’s to RFMF did not exceed the $20,000.00 limit as suggested in the Audit report however; the accumulation of unpaid invoices has resulted in the figures as highlighted in the report.

  The RFMF has sought the assistance of the Ministry of Finance to resolve this issue and is seeking to prevent a similar exercise in the third quarter of 2009.
16.18 Non Issuance of Local Purchase Order A local purchase order or departmental warrant should be issued when procuring any goods, services or works from an organization within Fiji, unless a contract or agreement has been entered into.21 A local purchase order should be issued when procuring any goods, services or works from an organization within Fiji, unless a contract or agreement has been entered into.22 The audit noted that goods and services were purchased without issuing Local Purchase Orders.
Refer to Table 16.12 for examples: Table 16.12: Local Purchases Order Not Issued Date Voucher Number Payee Particulars 09/11/08 04/12/08 57897 57846 Eta Cegaivuna Masi Enterprise Mini Bus Services 04/12/08 57857 Total (Fiji) Limited 05/12/08 05/12/08 57885 57846 05/12/08 57892 05/12/08 57891 Air Pacific Limited Naividra Farm Dee Cees Limited Dee Cees Limited 05/12/08 57898 Franklin design from QEB Payment for waka 40 kg @ $50.00 Payment for transporting senior military officers to Nadi Airport leaving for Unami Iraq.
Payment for diesel for duty ship RFNS kula.

32,400 liters @ $1.6211 Payment for air ticket Payment for water melons.

2,423 kg @ $2.00 Payment for carrying soldiers along Suva Navua Corridor.
Payment for carrying soldiers along Suva Navua Corridor Payment for Viti magazine Amount ($) 2,000.00 562.50 52,523.64 102.00 4,846.00 150.00 500.00 900.00 21 Finance Manual 2005 section 2.5.1 22 Finance Manual 2005 Section 2..5.1 Fiji Military Forces Section 16: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Voucher Number Payee Particulars 18/12/08 58432 18/12/08 18/12/08 18/12/08 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 20383 20384 20385 20386 20387 58427,58428 61156 – 61159, 61161,61163 61165, 61167-61169 61304,61305,61307,61309,6 1311,61314-61317 61319-61321,61324,61326,- 61328,61330,61332,61334,6 1336 61452,61454,61457,61458,6 1460,61462,61464,61466,61 468,61470 61098,61127,61131,61132,6 1135,61137 61098,61127,61131,61132,6 1135,61137 61748, 61749 31/12/08 58614 31/12/08 31/12/08 61675 to 61681 61682 to 61689 Kelsten Engineering Ltd Intouch technology Viti Air Conditioning works Net Payment for 1 x 4 QP402 Robin Pump Payment for 3 x Acer veriton S460 small factor computers.3 x $1,850.00 Payment for services rendered.
Office 2000 Limited Joe’s farm Payment for hire of Toshiba copiers.
Payment for food items Joe’s farm Payment for food items Joe’s farm Payment for food items Amount ($) 4,500.00 5,550.00 3,830.00 2,300.00 6,780.00 6,440.00 6,880.00 1,120.08 3,807.04 6,356.86 6,017.62 Joe’s farm Payment for food items 8,117.19 Wing Sang Company Limited Wing Sang Company Limited Joe’s Farm Payment for food items Payment for food items Payment for food items Joe’s Farm Produce Payment for food items 9,202.56 9,617.47 14,860.00 14,860.00 Vuniyayama’s crop supplies Vuniyayama’s crop supplies Tebara Meats Tebara Meats Root Payment for cassava for Nadi camp.
400.00 Root Payment for cassava for Nadi camp.

1,200.00 Payment for dry goods (meat).

Payment for dry goods (meat).

8,285.54 3,121.19 Moreover audit noted that the Force issued Local Purchase Orders after services were rendered and invoices received.

Refer to the Table 16.13 for examples.


Table 16.13: Local Purchase Order Issued After Receipt of Invoices Date 03/11/08 Voucher Number 50034 Payee Budget Rental Invoice Date 09/06/08 Purchase Order Date 30/09/08 Particulars Payment for renting vehicle from 09/06/08 to 30/06/08.
Amount ($) 3,082.50 27/10/08 51678 31/12/08 59912 31/12/08 58400 Fiji Military Forces Singh Shopping Limited Motor Parts Traders Jans Rental (Fiji) Cars 01/04/08 12/09/08 Payment for various items 285.00 28/11/08 05/12/08 30/06/08 10/12/08 Payment for repair of vehicle registration number GL865.Details of repair work done was not attached.
Payment for rental of M2 Tribute LR1804 from 31/05/08 to 30/06/08 4,860.00 2,850.00 Section 16: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Voucher Number Payee Limited Invoice Date 31/05/08 Purchase Order Date 10/12/08 30/04/08 10/12/08 28/02/08 10/12/08 05/12/08 57893 57894 57895 Dee Cees Limited 6321 6318 6310 22/10/08 Particulars Payment for rental 4 x tribute LR1804 from 01/05/08 to 31/05/08 Payment for rental of T/C B2500 LR887 from 26/03/08 to 20/04/08 Payment for rental of T/C B2500 LR887 from 25/01/08 to 25/02/08 Payment for transporting officers.
Amount ($) 2,850.00 2,745.00 2,745.00 1,850.00 The Force Accountant has failed to exercise due care in making the above purchases by not adhering to the laid down procedures.

The issue was reported previously, however, no corrective measure was undertaken by the Force to improve on the situation.

Purchases done without local purchase orders may result in unauthorized expenditure incurring additional cost to the Force.
Recommendation The Force should ensure that Local Purchase Orders are issued prior to procuring goods and services by complying with Finance manual 2005.
Management Comments  The RFMF acknowledges the recommendations made above and respective purchasing officers have been advised to ensure that such practice is not repeated, however the RFMF was left with no other option during the last quarter of 2008 as the FMIS system was not able generate any Purchasing Order and all purchase was generated manually through the use of invoices and payment vouchers.

In addition, the VAT allocation for RFMF in that financial year had been exhausted.
A DW of $1.3 m was only received in December 2008 and that enabled the regularization of the purchasing process as mentioned above.

 16.19 Local Purchase Orders Approved In Excess of Delegated Authority An LPO must be signed by two officers; the officer preparing it and an officer with the necessary procurement authority.23 The following officers are delegated authority to procure goods, services and works up to the following limits specified.
Officer Commander Chief of Staff HQ RFMF Directors, CSO Fin Cost Centre Managers Deputy Cost Centre Managers Amount ($) 20,000 15,000 10,000 3,000 1,00024 The officer authorizing a purchase order must ensure that a purchase is not artificially split to bring it within the limits above.25 23 Finance Manual 2005 – Section 2.5.9 24 Finance Manual 2005 Section 2.2.1 25 Finance Manual 2005 – Section 2.2.2 Fiji Military Forces Section 16: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Audit noted that the Force’s Director Finance approved an LPO in excess of his delegated authority.
Also the Force Accountant issued LPO’s which she was not entitled to do so.
Refer to the Table 16.14 for details: Table 16.14: LPO’s approved In Excess of Delegated Authority Signatory Rank Head-Prog-Act- LPO Number Approved Limit ($) Amount Approved($) Excess of Authorized Limit ($) Serevi Vananalagi Director Finance 19-1-05-001775 10,000.00 99,820.00 89,820.00 Unauthorized Officers signing LPO’s by A/PAO K.Senimoli K.Senimoli K.Senimoli Acting Principal Accounts Officer Acting Principal Accounts Officer Acting Principal Accounts Officer 19-1-05-000764 19-1-04-000263 19-1-04-000478 0 0 0 3,675.38 6,215.64 2,638.13 (3,675.68) (6,215.64) (2,638.13) Moreover, the Force Accountant issued more than one local purchase at one time in order to purchase goods and services from the same suppliers.
The orders were split to accommodate payments.
Refer to the Table 16.15 below for examples: Table 16.15: Splitting of Local Purchases Order Date Voucher Number 22/08/08 13/06/08 25/06/08 44862 44860 44865 36062 36063 36064 36065 32930 32929 Purchase Order Date 14/05/08 14/05/08 06/05/08 23/05/08 23/05/08 23/05/08 23/05/08 21/06/08 21/06/08 Payee Tebara Meats Purchase Order Number 19102-003652 19102-003661 19102-003560 19102-003759 Wing Sang 19102-003760 Company 19102-003761 Limited 19102-003763 19108-000296 Albrecht 19108-000295 A Stuetzle Particulars Payment for dry goods Payment for food items Payment for refurbishment of sword/bayonet/pistol/cell/plaque Amount ($) 419.30 824.75 1,047.70 1,349.19 1,874.81 1,848.15 758.39 1,541.25 1,395.00 Total Amount ($) 2,291.75 5,680.63 2,936.25 Levels of authority on local purchase orders exist to ensure adequate controls are exercised over purchases.
Failure to comply with the delegated authority has led to the orders being authorized by the officer(s) in excess of the approved procurement limits.

Recommendations  Standing Government procedures for procurement of goods and services should be strictly complied with to ensure proper management of public funds and prevent abuse.

 The Force should ensure that LPO(s) are approved within the respective Officer’s authorized limit.
 The Force should amend its Finance Manual to allow the Staff Officer Finance to sign the LPO’s.

 Goods and Services over $20,000 should be purchased with the authority of the Major Tender Board.
Fiji Military Forces Section 16: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Management Comments  The recommendation has been noted and the RFMF has put into practise control measures such as verification of LPRs and LPOs prior to approval by Authorising Officer, and the centralisation of all purchasing at HQ RFMF in October 2009.
 The RFMF officers who are authorised to approve PO cannot authorise a PO in excess of his / her authority unless they have received prior approval from the Ministry of Finance – FMIS Unit e.g.

Black Rock Project.

 Any amendment to PO approvers is only approved by the FMIS Unit.
Fiji Military Forces Section 16: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ APPENDIX 16.1: Statement of Output Costs Statement of Output Costs for 2008 – Policy and Administration Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Costs Construction Purchases Grants & Transfers Total Capital Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 7,063,636 0 79,589 117,465 85,451 0 81,952 7,428,093 167,997 244,264 0 412,261 7,060,446 0 328,862 225,426 77,112 0 75,103 7,766,949 0 80,749 0 80,749 107,113 858,192 7,947,467 8,705,890 Statement of Output Costs For 2008 – Logistic Support Unit Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 5,950,056 0 0 562,785 2,714,816 0 0 9,227,657 5,742,305 0 0 1,102,360 27,617,056 0 0 34,461,721 357,976 2,379,371 9,585,633 36,841,092 Fiji Military Forces Section 16: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Statement of Output Costs for 2008 – 3 Fir Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance
 & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Costs Construction Purchases Grants & Transfers Total Capital Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 7,552,265 0 12,270 2,048 105,018 0 0 7,671,601 0 64,496 0 64,496 11,621,031 0 6,616 0 211,438 0 0 11,839,085 0 24,746 0 24,746 10,571 252,770 7,746,668 12,116,601 Statement of Output Costs for 2008 – FMF Engineers Description EXPENDITURE Operating Costs Established Staff
 Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 6,543,673 0 13,341 391,108 116,392 0 0 7,064,514 7,053,756 0 16,293 386,300 127,365 0 0 7,583,714 44,914 705,448 7,109,428 8,289,162 Fiji Military Forces Section 16: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Statement of Output Costs for 2008 – FMF Naval Division Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Costs Construction Purchases Grants & Transfers Total Capital Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 5,008,085 0 70,059 1,141,104 529,808 0 0 6,749,056 0 64,915 0 64,915 4,955,237 0 185,243 1,197,905 599,815 0 0 6,938,200 0 4,796 0 4,796 224,897 814,575 7,038,868 7,757,571 Statement of Output Costs for 2008 – Territorial Forces Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 4,483,342 0 7,239 9,382 19,971 0 569,104 5,089,038 11,689,463 0 9,434 10,276 700,796 0 38,674 12,448,643
 65,140 800,705 5,154,178 13,249,348 Fiji Military Forces Section 16: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Statement of Output Costs for 2008 – Iraq Mission Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 16,998,186 0 31,553
 37,698 351,342 0 0 17,418,779 14,241,838 0 0 0 0 0 0 14,241,838 31,775 627,976 17,450,554 14,869,814 Statement of Output Costs for 2008 – Peace Keeping Force, Sinai Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 17,102,981 0 34,190 35,227 223,503 0 68,059 17,463,960 14,139,829 0 38,797 32,289 392,699 0 0 14,603,614 40,620 770,109 17,504,580 15,373,723 Fiji Military Forces Section 16: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Statement of Output Costs for 2008 – Force Training Group Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008 $ 2007 $ 2,152,992 0 44,620 88,097 54,914 0 0 2,340,623 1,882,319 0 140,008 131,380 70,087 0 0 2,223,794 7,398 176,692 2,348,021 2,400,486 Statement of Output Costs for 2008 – Land Force Command Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL COSTS 2008
 $ 2007 $ 958,625 260,018 354,420 425,973 78,461 0 0 2,077,497 4,237,454 252,666 908,901 658,351 147,378 0 0 6,204,750 82,079 476,687 2,159,576 6,681,437 APPENDIX 16.2: FNPF Reconciliation Details FNPF as per financial statement Less: FNPF for December 2007 paid in 2008 Add: FNPF for December 2008 paid in 2009 Gross Pay subject to FNPF (4,334,122 divided by 0.08) (b) Salaries and wages for 2008 subject to FNPF Salaries, wages and allowances as per financial statement Less: Salaries and wages not subject to
 FNPF Fiji Military Forces ($) 4,334,122 - 4,334,122 - 4,334,122 54,176,525 69,729,737 3,281,056 Section 16: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Details Un-reconciled Variance APPENDIX 16.3: VAT Reconciliation Details Total Income/expenditure as per Expenditure Statement Less Expenditure not subject to VAT - Total SEG 1 & 2 Total Taxable Supplies as per VAT returns Less 2007 December VAT Add 2008 December VAT Difference Audit also noted variances between the actual VAT payments for 2008 and the balances disclosed in the general ledger (FMIS) as follows: Refer to Table 16.7 for details.
VAT payments (VAT payments to FIRCA and VAT input) as per Statement of Financial Operation VAT payments (VAT payments to FIRCA and VAT input) as per VAT returns for the year 2008 Less: 2007 December Vat Add : 2008 December Vat Difference ($) 66,448,681 12,272,156 ($) 84,044,973 74,073,859 9,971,114 26,466,622 17,867,856 8,598,766 1,064,341 9,663,107 308,007 972,482 2,940,736 (1,985,317) 118,260 1,073,679 (101,197) Fiji Military Forces Section 16: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 17 Fiji Police Force Role and Responsibilities In accordance with the statutory obligations and the community expectations, the Fiji Police Force is to be employed in and throughout Fiji for the maintenance of law and order, the preservation of peace, the protection of life and property and the detection of crime and the enforcement of all laws and regulations with which it is directly charged.
The Fiji Police Force is divided into six branches and these are the Special Branch, Criminal Investigation, Traffic & Transport, Training, General Uniform and Office of the Commissioner and Headquarters which manage and perform functions relative to the nature.
Table of Contents 17.1 17.2 17.3 17.4 17.5 FINANCIAL STATEMENT ........................................................................................................................ 2 Audit Opinion .................................................................................................................. 2 Statement of Receipts and Expenditure ........................................................................ 2 Statement of Output Costs ............................................................................................. 3 Appropriation Statement ................................................................................................ 3 Statement of Losses ...................................................................................................... 4 AUDIT FINDINGS .................................................................................................................................... 4 Agency Financial Statements ........................................................................................ 4 17.6 17.7 Revenue Reconciliations ............................................................................................... 5 Expenditure Anomalies .................................................................................................. 6 17.8 Arrears of Revenue ........................................................................................................ 7 17.9 17.10 Operating Trust Fund Account
 ....................................................................................... 7 17.11 Revolving Fund Account - Miscellaneous ...................................................................... 9 17.12 Drawings Account ........................................................................................................ 10 17.13 FNPF Reconciliations................................................................................................... 11 17.14 VAT Reconciliations ..................................................................................................... 11 17.15 Overpayment of Salaries - Resignation ....................................................................... 12 17.16 Unrecoverable Salary................................................................................................... 14 17.17 Major Tender Boards Approval .................................................................................... 14 17.18 Improper use of Public Funds ...................................................................................... 16 17.19 Follow up – Negligence Payments ............................................................................... 18 17.20 Extravagant Spending .................................................................................................. 18 17.21 Excessive Engagement of Private Printing Companies............................................... 19 17.22 Manual Payments
 ........................................................................................................ 20 17.23 Custody of Exhibits ...................................................................................................... 20 17.24 Police Footwear at Government Supplies ................................................................... 21 17.25 Excessive Procurements from Lotus Garments (MFG) Ltd ......................................... 22 17.26 Lawsuit Filed Against – Major Tenders Board ............................................................. 23 17.27 Motor Vehicle Accidents .............................................................................................. 24 Fiji Police Force Section 17: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 17.28 Negligent Drivers .......................................................................................................... 25 17.29 Hiring of Rentals ........................................................................................................... 26 Appendix 17.1: Statement of Output Costs for 2008 ............................................................... 27 Appendix 17.2: FNPF Variance Details ................................................................................... 29 Appendix 17.3: Exorbitant Expenses ........................................................................................ 30 Appendix 17.4: Manual Payments
 ........................................................................................... 31 Appendix 17.5: Details on the Accident to Police Vehicles....................................................... 34 FINANCIAL STATEMENT 17.1 Audit Opinion The audit of the 2008 accounts of the Fiji Police Force resulted in the issue of a qualified audit report.
The qualifications are as follows.

 The amounts in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.

 The Force has not provided the following contrary to Finance Instructions 82 (1)  Statement of Losses and  Trust Account Statement of Receipts and Payments.
The Financial Management Information System shows that the Force as at 31/12/08 has operating trust funds totalling $2,330,079.

 The payments of FNPF contributions and VAT could not be reconciled to the accounts.

 The Fiji Police Force had a manual payment of $739,977 which was not updated in the FMIS for 2008.

 The Force incurred an over expenditure of $7,956,405 in 2008.
17.2 Statement of Receipts and Expenditure The Force collected revenue totalling $2,402,680 and incurred total expenditures of $80,772,472 in 2008.
Table 17.1: Statement of Receipts and Expenditure for 2008 Description RECEIPTS Police Clearance Fees Licenses Fees Other State Revenue Fiji Police Force 2008 $ 2007 $ 646,668 43,575 (131,591) 576,047 34,484 76,389 Section 17: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Description Other Agency Revenue 2008 $ 1,844,028 2007 $ 18,849 TOTAL REVENUE 2,402,680 705,769 EXPENDITURE Operating Expenditure Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Total Capital Expenditure 62,367,530 683,447 3,559,246 6,177,814 2,064,126 19,999 827,603 75,699,765 57,333,697 903,893 3,660,283 3,657,981 1,800,405 19,957 504,383 67,880,599 804,008 2,368,637 3,172,645 188,437 119,802 308,239 Value Added Tax 1,900,062 5,400,956 TOTAL EXPENDITURE 80,772,472 73,589,794 The revenue collection increased by $1,696,911 or 240% in 2008 due to increase in miscellaneous revenue (recoveries from previous year).
The expenditure also increased by $7,182,678 or 10% from $73,589,794 to $80,772,472 in 2008 as a result of increase in established staff by $5,033,833 or 9%, maintenance and operations by $2,519,833 or 69%, purchase of goods and services by $263,721 or 15% and capital expenditure by $2,864,406 or 929%.

17.3 Statement of Output Costs The Statement of Output Costs consolidates the 6 outputs prescribed in the Budget Estimates, contrary to the requirements of the Finance Instructions.
These are detailed in Appendix 17.1 17.4 Appropriation Statement The Force incurred expenditures totalling $80,772,472 in 2008 against the budget of $72,816,067 resulting in an over-expenditure of $7,956,405 or 11%.

Details of expenditures against the budget estimates are provided in Table 17.2.
Fiji Police Force Section 17: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Table 17.2: Appropriation Statement for 2008 SEG Item Budget Estimate $ Changes (Note 4) $ Revised Estimate $ Actual Expenditure $ Carry – Over $ Lapsed Appropriation $ Operating Expenditure Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Total Capital Expenditure 53,655,400 899,500 3,607,600 4,344,000 2,119,100 20,000 760,000 65,405,600 0 0 0 1,964,220 (20,000) 0 87,395 2,031,615 53,655,400 899,500 3,607,600 6,308,220 2,099,100 20,000 847,395 67,437,215 62,367,530 683,447 3,559,246 6,177,814 2,064,126 19,999 827,603 75,699,765 1,000,000 2,352,000 3,352,000 (71,684) 71,684 0 928,316 2,423,684 3,352,000 804,008 2,368,637 3,172,645 13 Value Added Tax 1,772,900 253,952 2,026,852 1,900,062 TOTAL EXPENDITURE 70,530,500 2,285,567 72,816,067 80,772,472 0 0 0 0 0 0 0 0 0 0 0 0 (8,712,130) 216,053 48,354 130,406 34,974 1 19,792 (8,262,550) 124,308 55,047 179,355 126,790 (7,956,405) The Ministry of Finance approved the transfer of funds totalling $91,684 during the year.
Also in accordance to the Cabinet Decision 414/2008 an additional sum of $2,285,567 was redeployed into Fiji Police Force budget.

17.5 Statement of Losses The Force did not report any loss of inventories, fixed assets or money during the year.
AUDIT FINDINGS 17.6 Agency Financial Statements Commencing 2006 financial year, each annual report must include financial statements which are prepared and signed in accordance with these Instructions, audited by the Auditor General, and accompanied by an audit opinion prepared by the Auditor General.1 The Fiji Police Force submitted its Agency Financial Statements for audit on 15/05/09.
Financial statements submitted by the Force were not prepared in accordance with the requirements of Section 82 and Schedule 1 of the Finance Instructions 2005.The following anomalies were noted:  The 2008 Budget prescribed eight outputs; however, the Force only submitted Six Statements which were prepared according to the budget activities.
The balances reflected in the Statements of Output Costs could not be substantiated as the facility to allow the measurement and accounting of these 1 Finance Instructions 2005 – 81(2) Fiji Police Force Section 17: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ costs has yet to be integrated in the Financial Management Information System (FMIS) of government.
 The Force failed to prepare and submit the Statement of Losses and Trust Fund Statement of Receipts and Payments.

The Financial Management Information System shows that the Force as at 31/12/08 has trust funds totalling $2,330,079.

Non–compliance with Finance Instructions in the preparation of the financial statements has restricted the scope of the audit.
Recommendation The Force should ensure that the requirements of the Finance Instructions 81 are strictly followed in the preparation of the Agency Financial Statements.

Management Comments Comments not received.

17.7 Revenue Reconciliations Within five working days of the Ministry of Finance issuing the monthly General Ledger Reports, the Assistant Accounts Officer Ledgers shall reconcile the revenue figures in the report to the Revenue Statement.
Where errors or discrepancies occur, the Force Accountant shall inform the Chief Accountant in writing within seven days of receiving the general ledger reports.2 If a replacement cheque is not required, the Force Accountant shall clear the stale cheque using the following adjusting entries: DR Drawings Account (or Bank ledger account) CR Expenditure Account (To clear cheques issued in the current year that have become stale)3 The revenue figures in the financial statements were derived from the FMIS records.
The verification of the Force records with the FMIS system revealed a variance of $1,611,497.

Refer to the table below for details: Table 17.3: Unreconciled Revenue General Ledger FMIS ($) Force Register ($) Variance ($) 2,402,680 791,183 1,611,497 In addition audit noted misposting amounting to $217,976 in the FMIS system and it remained unadjusted despite audit reminders.
4 2 Fiji Police Force -Finance Manual 2005 -Section 5.5.12 & 5.5.14 3 Fiji Police Force- Finance Manual 2005-Section 7.5.2 & 7.5.3 4 20/07/09 Fiji Police Force Section 17: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Table 17.4: Details of Mispostings Revenue Description Income tax provisional Income tax PAYE Total Amount ($) 38,704.83 179,271.72 217,976.55 Further more the stale cheques for the months of February to April 2008 amounting to $1,427,454 were wrongfully accounted as revenue by the Force.
The Force was reminded during the audit to take necessary steps to adjust and rectify the situation but to no avail.5 The failure of the Force to correct the misposting of revenue will affect its revenue position as at 31/12/08.

The Force failed to provide explanation on the variances noted from the Force records against balances provided in the general ledger (FMIS).

The above anomalies indicate that the checks carried out by the Force are inadequate and ineffective.
Recommendations  The monthly revenue reconciliations should reconcile with the FMIS-General Ledger.

 All the revenue reconciliations should be checked by the Supervising Officer.

Management Comments Comments not received.

17.8 Expenditure Anomalies Each year, the Appropriation Act and Budget Estimates set out details of the appropriations that Parliament approves for spending by each agency.
No officer may incur expenditure, which results in the agency’s appropriation being exceeded without the authorisation of the Ministry of Finance, pending approval by Parliament.6 Audit analysis of the expenditures for 2008 indicated that the Force had incurred over-expenditures under SEG1 Established Staffs allocation by $8,712,130 and failed to seek necessary approval from Ministry of Finance to regularise the over expenditure.
In addition, negative expenditure amounting to ($1,188) in Maintenance and Operations allocation (Criminal Investigations) remained unadjusted despite several audit reminders.

The failure to abide to the instructions laid down in the Finance Manual could result into uneconomical use of the public funds.

Excessive expenditures are a clear indication of inadequate supervisory checks and ignorance of standing financial instructions.
5 03/05/09 6 Fiji Police Force- Finance Manual 2005-Section 2.1.2 Fiji Police Force Section 17: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendations  It is recommended that the Force take active roles in ensuring that they operate within the approved budget.

 Expenditures should be reviewed against the budget allocation on a monthly basis and reported to management for effective and efficient decision-making.
 The Force should seek Ministry of Finance approvals if additional funds are required.

Management Comments Comments not received.

17.9 Arrears of Revenue Accounts which are over due must be promptly followed in accordance with the debt recovery procedures in the Finance Manual7.

The Force Accountant must promptly follow up accounts that fall due.
If recovery is unsuccessful after one month, the following actions shall be taken i) a demand notice for payment shall be sent to the debtor after his/her debt has been overdue for more than one month; ii) If the account still remains unpaid after the first demand notice was issued, a final notice shall be issued demanding payment within fourteen days.8 The arrears position of the Force when compared to 2007 has increased by 154% from $8,137 to $20,633 in 2008.
Delays in collection of revenue increase the likelihood of write-offs thus depriving the government of potential revenue.

Recommendation The Force should strongly adhere to standing procedures pertaining to collection of fees.

Management Comments Comments not received.


17.10 Operating Trust Fund Account Within five days after the end of each month, the Assistant Accounts Officer Ledgers shall prepare a trust reconciliation to reconcile trust account balances to the ledger total and the trust bank account.9 The Trust Fund should not be overdrawn.10 The Operating Trust Fund Account closing balance as at 31/12/08 in the Force records did not reconcile with the Financial Management Information System.
A difference of $34,021 was noted between the two records.
Refer to the table below for details: 7 Finance Instruction Section 48 8 Fiji Police Force- Finance Manual 2005 - Section 9.2.1 9 Finance Manual – Fiji Police Force 2005 – Section 15.4.1 10 Office of the Auditor General Trust Fund Guide Section (5) Fiji Police Force Section 17: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Table 17.5: Unreconciled Trust Fund Account Details Appendix Force Variance Balances as at 31/12/08 $ 2,330,079.33 2,296,058.22 34,021.11 In addition audit noted an unexplained debit (overdrawn) balances as at 31/12/08 amounting to $97,411.
The details are as follows: Table 17.6: Details of Overdrawn Trust Account Balance Account ID Description 12010120101899988 Miscellaneous Fund Amount $ 97,411.39 Furthermore the Force was holding onto a significant amount of the funds in Trust Fund Account as at 31/12/08.
The details are as follows: Table 17.7: Details of Significant Trust Account Balance Details Account No 501 P D Employees FNPF 1-20101-20101-861920 Balances $ 1,921,639.40 Remarks  The fund balance has increased from in to $1,921,639.40 $1,293,525.79 2008 or by 49%.

 The Breakdown details were not provided for audit verification.
 The majority of the fund balance has been carried over from 2005 201 Pd Tax Arrears / PAYE 1-20101-20999-861901 112,497.55  The Breakdown details were not 307 Pd Police Service Credit Union 1-20101-20101-861517 697,241.38  The Breakdown details were not provided for audit verification.

 The balance has been carried over since 2007. provided for audit verification.

 The fund balance has increased from $547,729 to $697,241 in 2008 or by 27%.
In the absence of the proper records it is difficult to authenticate the accuracy of the balances of the Trust Account as stated in FMIS.

Recommendations  The Force should ensure that monthly reconciliations are carried out properly and accurately.

 Supervisory checks in the Accounts Sections should be strengthened and improved.
Fiji Police Force Section 17: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Management Comments Comments not received.

17.11 Revolving Fund Account - Miscellaneous A ledger shall be maintained for advances and revolving fund accounts11.
Within 3 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Supervisor shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.12 The Revolving Fund Account –Miscellaneous closing balance as at 31/12/08 in the Force records did not reconcile with the Financial Management Information System records.

A difference of $23,757 was noted between the two records due to lack of proper monthly reconciliation.
Refer to the table below for details: Table 17.8: Unreconciled Revolving Fund Account Details Appendix Force Variance Balance as at 31/12/08 $ 501,506.13 525,263.46 (23,757.33) In addition we noted an unexplained credit (overdrawn) balances as at 31/12/08 amounting to $53,848.
The details are as follows: Table 17.9: Details of Overdrawn Revolving Fund Account Code Accounts Description 12010120999570301 Accountable Amount $ 53,847.99 Remarks  The balance has been carried forward from 2006  The breakdown details were not provided.

Furthermore, the Force was holding onto a significant amount of the funds in Revolving Fund Accounts as at 31/12/08.
The details are as follows: Table 17.10: Details of Outstanding Balance Details Account No Advances 1-20101-20999-570101 Balances $ 143,864.60 Remarks  The fund balance has increased from $40,343.95 to $143,864.60 in 2008 or by 257%.

 The breakdown details were not provided for audit verification.
Surcharges 1-20101-20101-570304 374,876.80  The majority of the fund balance has been carried over from 2004 and 2005  The breakdown details were not provided for audit 11 Finance Manual 2005 Section 16.3.1 12 Finance Manual 2005 Section 16.3.3 Fiji Police Force Section 17: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Details Account No Balances $ verification.
Remarks The above anomalies imply that the monthly revolving fund reconciliations may not have been thoroughly scrutinised and checked.

Recommendations  The Force should make concerted efforts to clear the long outstanding and overdrawn balances to avoid their accumulation.

 The Force should ensure that in future the accountable advance is cleared within the stipulated timeframe of seven days to avoid accumulation of outstanding advances.
 The Force should ensure that the monthly reconciliation is prepared in accordance with the requirement of the Finance Manual and any differences are adjusted accordingly.

Management Comments Comments not received.


17.12 Drawings Account The Assistant Accounts Officer (Ledgers) shall prepare bank reconciliation within 5 days of the end of month.13 Audit noted that the Drawings Account closing balance as at 31/12/08 as per Force record did not reconcile with the Financial Management Information System records.
Refer to the table below for details: Table 17.11: Unreconciled Drawings Details MOF Appendix Force Variance Balances As at 31/12/08 $ 8,477,570 (2,791,650) 11,269,220 In addition the Force drawings amount reflected in the General Ledger (FMIS) has a significant debit balance.

No satisfactory explanation was provided by the Force.

The above issue has been highlighted in previous years’ reports but the Force has failed to comply with the recommendations provided by the audit office.
The above imply lack of regular reconciliations and inadequate supervisory checks.

Recommendations  Reconciliation must be prepared on a timely basis and any errors detected adjusted immediately.
13 Finance Manual-Fiji Police Force - Section 7.4.7 Fiji Police Force Section 17: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  Supervisory checks on the reconciliations should be improved to ensure the accuracy of the balances in the reconciliation.

 Officers failing to carry out their responsibilities in ensuring that records are updated and accurate reconciliations prepared on time should be disciplined accordingly.
Management Comments Comments not received.
17.13 FNPF Reconciliations Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee is employed by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.14 A reconciliation of FNPF contributions against salaries and wages reported in the Financial Statements revealed variances.
Refer to Appendix 17.2 The actual expenditure subject to FNPF does not correspond with the expenditure on which FNPF has been paid and difference was noted.

There could be a possibility that the FNPF could have been under or overpaid.

In addition audit was not provided with details of the officers who are above the age of fifty five and who were non members of the FNPF.

The above anomalies could have been avoided had the Force been more vigilant and proper controls were in place.
Recommendation The Force should review its FNPF records and reconciliations and provide explanation for the variances.

Management Comments Comments not received.


17.14 VAT Reconciliations Every registered person who supplies in Fiji goods and services shall keep sufficient records in the English language to enable ready ascertainment by the Commissioner or any officer authorised by him, of that person’s liability to tax and shall retain all such records for a period of at least seven years after the end of the taxable period to which they relate.
Records include books of account (whether contained in manual, mechanical, electronic format, or microfilm) recording receipts or payments or income or expenditure, and also includes vouchers, bank statements, invoices, tax invoices, credit notes, debit notes, receipts and such other documents as are necessary to verify the entries in any such books of account.15 The scope of audit of the VAT records was limited as the Force did not maintain all the records of monthly VAT Returns.
14 Chapter 219 – Fiji National Provident Fund – Section 13 (1) 15 Value added Tax Decree 1991- Section 79 Pg 72 Fiji Police Force Section 17: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ As a result, audit could not substantiate the accuracy of VAT payments during the year.

Recommendation The Force should ensure that records pertaining to VAT are properly maintained for reconciliation and audit purposes.
Management Comments Comments not received.

17.15 Overpayment of Salaries - Resignation Salary advices must be submitted promptly to the Ministry of Finance where there is any change to personal emoluments or deductions dismissal, resignations and retirement.16 Some officers who had resigned from the service were still being paid.

Moreover no effort was made by the Force to recover these overpayments.

Refer to the following table for details: Table 17.12: Overpayment of Salaries upon Resignations.
Name of Officer Overpaid Salaries Remarks EDP No.

52301 Mosese Vakacegu 52473 Desley Khan 52906 Mithun Goundar as at 31/12/08 ($) 611 1,581 663 The officer resigned from the service with effect from 07/07/08 but paid until pay 15/08.

The officer resigned from the force with effect from 07/07/08 but paid until 11/08/08.

The officer resigned from the force with effect from 04/08/08 and paid until 25/08/08.

The officer also failed to clear an OPR of $117.


Further to this it was noted that officer who was dismissed continued to receive their salary.

Refer to table below for details: Table 17.13: Overpayment of Salaries on Dismissal EDP No.

51773 Akuila Tuinayau Name of Officer Overpaid Salaries Remarks as at 31/12/08 ($) 4,407 The officer was dismissed from the Force with effect from 12/06/08 but he continued to receive salary until pay 18/08.
It was also noted that few of the staffs were paid even though their cessation of the salary was published in the force routine orders.

Refer to the table below for examples: 16 2005 Finance Instructions Section 26 (1) Fiji Police Force Section 17: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Table 17.14: Overpayment of Salaries contrary to the Stoppage Instruction Name of Officer Overpaid Salaries Remarks EDP No.
76220 Pranesh Kant 52301 Mosese Vakacagu as at 31/12/08 ($) 10,229 3,469 The officer’s salary was stopped from 12/01/08 but he continued to receive salary until pay 22/08.

The officer’s salary was stopped with effect from 02/02/08 but he continued to receive 50% salary until pay 15/08.

The above is due to lack of communication between the administration and the salaries section and no or little follow up with all the force routine orders.

This has result in unwarranted use of public funds.
Recommendations Immediate recovery should be made from officers who are overpaid.

  Supervisory checks should be made in the Salaries section.

Management Comments a.

Resigned but still paid.

Name of Officer Overpaid Salaries as at EDP NO.

52301 Mosese Vakacegu 52473 Desley Khan 31/12/08 ($) 611.00 1,581.00 52906 Mithun Goundar 663.00 b.

Dismissed but still paid.

Action Taken Pay 15/08 was reversed from the bank whereby he owed the sum of $198.30.
The officer was transferred to National Prosecution Service under DPP’s Office.

Recovery should be made by DPP’s Office.

Officer has some pending leave which will be utilized to recover overpayment.

EDP NO.

Name of Officer Overpaid Salaries as at 31/12/08 Action Taken 51773 Akuila Tuinayau ($) 4,407.00 c. Stoppage but still paid.

Officer has some pending leave which will be utilized to recover overpayment.

EDP NO.
EDP NO.

Name of Officer Overpaid Salaries as at 31/12/08 Action Taken 76220 Pranesh Kant ($) 10,229.00 52301 Mosese Vakacegu 3,469.00 Officer has 59 days pending leave which will be utilized to recover overpayment.

The Officer has some pending leave which will be utilized to recover overpayment.
Fiji Police Force Section 17: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 17.16 Unrecoverable Salary The Commission may grant an Officer leave without salary not in the public interest, for a period not exceeding twelve months.17 An officer who, having been granted leave, fails to return to duty at the proper time is liable to disciplinary action including termination under Regulation 34(2) of the PSC (Constitution) Regulations, 1990.18 The audit noted a few cases where officers who had taken leave without pay were continued to be paid their full salaries and allowances resulting in an overpayment.
The overpayments of salaries were not recovered.

Refer to the table below for examples: Table 17.15: Officers Receiving Salaries while on Leave without Pay EDP No.
51604 53606 Name of Officer Overpaid Salaries as at 31/12/08 ($) 1,152 ASP Jaswant Lal Lisi Muaror 30,371 Remarks The officer went on leave without pay with effect from 07/07/08 but he continued to receive full salary until 28/07/08 The officer went on leave without pay with effect from 11/05/05 but she continued to receive her salary until 06/04/08.

This issue was raised in the Forces 2008 internal audit report and to date no person has been surcharged for the unwarranted blunder.
So far $6,310 has been recovered from the former employee’s sister who had been using the salary.

The overpayment of salary was due to the salaries section inefficiency and lack of communication and co-ordination with the administrative section which resulted in government funds being not utilised in a proper manner.

Recommendations  Since both the officers have left the Fiji Police Force, the salaries section should be liable for the overpayment.
 Staffs responsible for the cessation of the salary for the above officers should be surcharged.

 Supervisory controls should be put in place to avoid such future overpayments.

Management Comments EDP NO.

51604 53606 of Name Officer ASP Jaswant Lal Lisi Muaror Overpaid Salaries as at 31/12/08 ($) 1,152.00 30,371.00 Action Taken Officer currently employed at UN HQ.

Arrangement on going for the recovery.

Arrangement has been made for recovery of overpayment through our Police Legal Unit.
17.17 Major Tender Boards Approval Tenders must be called for the procurement of goods, services or works that cost over $20,00019.Effective from 19th of September 2008 the procurement limits of Permanent Secretaries are 17 General Order 718 (a) 18 General Order 304 (c) Fiji Police Force Section 17: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ restored to $20,000.
Any procurement above this limit must be approved by the Major Tenders Board.20 The Fiji Police Force failed to call tenders for a number of purchases which were above $ 20,000 particularly when procuring from Lotus Garments (MFG) Ltd and Deluxe Footwear Fashions Ltd.
Refer to the following table for examples: Table 17.16: Procurements made without the Tender Boards Approval Date Chq no Payee Amount($) Details 03/10/08 641163 Lotus Garments 636,000 Being purchases of Police uniform navy blue long straight/cargo trousers, silver grey long sleeve/short sleeve shirt and rain jackets.

No tender board’s approval was sighted.

No delivery docket was sighted and no LPO was issued.
19/11/08 643012 Deluxe footwear 35,420 Purchase of Boots, however no tenders 08/10/08 14/03/08 11/06/08 26/11/08 26/11/08 03/12/08 Lotus Garments 641367 Lotus Garments 633114 Lotus Garments 636647 643475 Lotus Garments 643473 Deluxe footwear 643906 Deluxe footwear 03/12/08 643906 Deluxe footwear called for.

798,000 Payment of account.

37,800 Payment of account.

120,000 Payment of account.

161,000 Payment of account.

189,400 Settlement of account.


132,580 Purchase of Boots, however no tenders were called.

132,580 Being purchase of 700 boots @ $189.90 each.

No tender approval was attached with the voucher.

Audit inspection of payment made raises suspicion as to why the Force continued to purchase from these two suppliers and even deliberately failing to adhere to the Financial Instructions 2005 and Finance Circular.
Since 2006 the Police Force had continued to purchase footwear from Deluxe Footwear Fashion Ltd and clothing from Lotus Garments (mfg) Ltd amounting to $1,113,444 and $10,085,872 respectively.
Refer to the table below for details of payments from 2006: Table 17.17: Payment Details to Lotus Garments and Deluxe Footwear Year 2006 2007 2008 2009 (as at 3/7/09) Total Paid to Deluxe Footwear $ 14,678 10,790 471,297 616,679 1,113,444 Paid to Lotus Garments $ 448,615 267,625 2,366,833 7,002,799 10,085,872 According to the storeman Mr. Sunil there was a contract between the Force and Deluxe Footwear Ltd Finance Instruction 2005 – Competitive Procurement – Section 12(4) 19 20 Finance Circular 14/2008 Section 2.1 Fiji Police Force Section 17: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ and Lotus Garments for the supply of footwear and uniforms, however despite several requests to sight the contract nothing was produced.
The Fiji Police Force failed to exercise proper economy over the purchase of boots and uniforms and proper value may not have been obtained for funds spent on the purchases as competitive bidding was surpassed.

Recommendations  The Fiji Police Force should call for tenders for procurement of goods, services or works that cost over $20,000.
 Officers who had breached the tender procedures specified in the Financial Instructions 2005 and the Finance Circular No.14/2008 should be disciplined and surcharged accordingly.

Management Comments Date 03/10/08 Chq No.


641163 Payee Lotus Garments 19/11/08 643012 Deluxe 8/10/08 641367 14/03/08 633114 11/06/08 636647 26/11/08 643475 footwear Lotus Garment Lotus Garment Lotus Garment Lotus Garment 03/12/08 643473 Deluxe footwear 03/12/08 643906 Deluxe footwear 03/12/08 643906 Deluxe footwear Further OAG comment Amount ($) Action Taken 636,000 COGS advice on contract prepared with supplier.

Contract signed, Solicitor General advice provided.
35,420 Continuous delay in Major Tender Board approval despite additional clarification.

Contract signed, Solicitor General advice provided.

798,000 COGS advice on contract prepared with supplier.

Contract singed, Solicitor General advice provided.

37,800 COGS advice on contract prepared with supplier.

Contract singed, Solicitor General advice provided.

120,000 COGS advice on contract prepared with supplier.

Contract singed, Solicitor General advice provided.
161,000 COGS advice on contract prepared with supplier.

Contract singed, Solicitor General advice provided.

189,400 Continuous delay in Major Tender Board approval despite additional clarification.

Contract signed, Solicitor General advice provided.

132,580 Continuous delay in Major Tender Board approval despite additional clarification.

Contract signed, Solicitor General advice provided.

132,580 Continuous delay in Major Tender Board approval despite additional clarification.
Contract signed, Solicitor General advice provided.

The contract agreement between Force and the Deluxe Footwear Fashions was not provided for audit verification.

All the necessary procurement procedures were not followed while engaging the above suppliers.
17.18 Improper use of Public Funds The affairs of any credit union shall be examined by or under the direction of the Registrar when ever he suspect’s fraud or other irregularities have occurred and the credit union shall produce all books, Fiji Police Force Section 17: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ documents and other papers required by the person conducting the examination.
The cost of the examination shall be borne by the credit union.21 Audit noted that the Police Credit Union was audited by KPMG in 2007 upon directive given by the then Acting Commissioner of Police, Mr. Jimi Koroi, a direct contrast to the requirements of the Credit Union Act which requires the Registrar to call for the examination of a credit union’s accounts.
Moreover, the audit fee of $87,396 was paid from the Police’s budgetary allocation in contrast to the Credit Union Act which had stated that the Credit union is supposed to pay for the audit fees.

Furthermore, a decision was handed over by the Office of the Solicitor General in a letter dated 17th September 2007 that Fiji Police Force was liable to pay the $87,396 since the provisions of the Credit union Act was not adhered to by the Police Department.
The details of the breakdown of the payment that was made to KPMG are tabulated below: Table 17.18: Payment Details Date Payment 21/04/08 04/11/08 Total of Cheque # 634552 642299 Amount ($) 20,000 67,396 87,396 Allocation Details of Allocation 1-20101-20101-071199 1-20101-20101-071206 MIS-Special Admin projects Community Rehab Asst.
Programme The directive for the Force to pay the audit fees in contrast to the requirements of the Credit Union Act is a blatant disregard to adherence to the Credit Union Act section 56 and abuse of position to gain advantage for the Credit Union.

Recommendations  The Force should ensure officers exercise proper economy in the use of public funds.

 The Force should liaise with the Police Credit Union to reimburse the audit fees paid by the Department.
Management Comments Date Payment 21/04/08 of Cheque # Amount ($) Allocation Details Allocation of Action Taken 634552 20,000 1-20101-20101-071199 MIS-Special Admin projects 04/11/08 642299 67,396 1-20101-20101-071206 Community Rehab Asst.

Programme The liability shift to organization the upon then CP’s instruction.

A special investigation initiated by Police its for criminal element.

21 Credit Unions Chapter 251 Section 56 (1) (b), 56 (2).
Fiji Police Force Section 17: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 17.19 Follow up – Negligence Payments The Office of the Solicitor General was responsible to meet all payment arising out of claims against the state for negligent practices by Civil Servants until the end of 1997.

Under the Civil Act, the Commissioner of Police is liable for the action of his men working for him.
Public funds totalling to $794,434.60 have been paid between 2004 and 2008 as litigation costs.

This money could have been used for other urgent purchases had the officers of the Force taken due care in their job.
Refer to the table below for details: Table 17.19: Litigation Cost Details Year 2004 2005 2006 2007 2008 Total Litigation costs (FMIS) $ 34,495.63 565,422.52 36,768.89 37,787.11 119,960.45 794,434.60 Litigation costs ( Department) $ Not provided by the Force Not provided by the Force Not provided by the Force 524,242.10 285,566.32 809,808.42 The legal officer of the Force has confirmed that the total cost for 2007 and 2008 alone was $809,808.42.
When complaints are not adequately addressed civil cases are filed against the State.

The Force therefore has to pay damages after the lawyers representing the injured party take the matter to court.

Recommendations  To safeguard public funds from waste and extravagance, the Force must urgently address the issue of unprofessional conduct of Police officers.

 Proper guidelines should be established to safeguard the image of the Force in the country.
Management Comments Fiji Police has embarked on a new strategy and the only strategy which is “Jesus”.

Instead of focusing on crime we are focusing on people.

Crusade is organized to foster friendly relationship to avoid complaints.

17.20 Extravagant Spending The proper management of expenditure is fundamental to ensuring value-for-money in delivering services to the community.
As well having cost effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditures and corruption do not occur.22 The audit noted that the Police Force had undertaken a new approach to combat crime which involved crusade work in the public.

The new approach to crime prevention has increased the expenses and is viewed as exorbitant to the Force.

Refer to Appendix 17.3 for examples of extravagant expenses.
22 Finance Manual 2005 Part 2 Expenditure Fiji Police Force Section 17: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Not all cost related to the Crusade could be identified as payment vouchers could not be located since there was very limited description of the payments available through the FMIS.

The anomaly indicates lack of control over the expenses by the Force incurring exorbitant expenses.
Recommendation The Force should avoid unnecessary payments for its crime prevention program and prioritize essential payments only.

Management Comments Priority strategic implementation to prevent crime.
17.21 Excessive Engagement of Private Printing Companies A quote from Government Printing is required for the printing of books, brochures, newspapers or other printed materials capable of being supplied by the Government Printing.23 Despite the requirements to engage the Government Printer, the Force engaged private printing companies without obtaining quotations.
Refer to the table below for details: Table 17.20: Details of Procurement made from Private Printers Company Name Period Digital Print Fiji Limited Kingdom Print Limited Makoi Instant Print Max Marketing & Publishing Ltd Pacific Printery Limited Quality print limited Walmarc Graphics Star Printery Print Centre Print & design Shop Oceania Printers Ltd Dynamic Printers Uprising Printery Total Recommendations March 2007 to September 2008 January 2007 to September 2008 September 2007 to September 2007 December 2007 to June 2009 December 2007 to March 2009 February 2007 to June 2009 July 2008 to November 2008 July 2008 to May 2009 May 2008 to January 2009 November 2008 to May 2009 December 2007 to December 2007 September 2007 to December 2008 February 2008 to June 2009 Amount $ 12,894.83 47,325.00 910.00 19,403.51 8,836.00 10,420.00 6,000.00 2,477.00 17,493.05 11,390.01 6,997.01 468.00 84,169.80 228,784.21  The Force should ensure that the Department of Government Printing and Stationery was considered when obtaining quotations for jobs.
 The Force should exercise proper control over the printing of documents to avoid wastage and reduce engagement of private printing companies.

23 Financial Instructions 2005 Section12 (2).

Fiji Police Force Section 17: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Management Comments We admit that not all printing of our documents involved Government Printing.
In future we’ll ensure to first obtain quotes from Government Printing then call other printing companies for quotations.

Other printing companies were involved due to the printed documents itself.

17.22 Manual Payments No manual payment of salary is permitted except on first appointment or upon written approval from the Commissioner of Police.24 Audit noted that the Fiji Police Force did not update a total of $739,976.56 of manual payments into the FMIS system.
Examples of some of the manual payments of substantial amounts are reflected in Appendix 17.4.

Not updating of manual payments into the system will not give a true reflection of the financial position of the Force thus understate the expenditure votes.

Recommendations  The Force should ensure that all manual payments are updated into the FMIS system.

 Officers who authorise such manual payments should be disciplined and reprimanded to avoid such actions.
Management Comments A control measures has been put in place where all manual payments are entered into the register and should be updated in the FMIS system once the GL is in place again.

Some vouchers may have not been updated due to transfers of officer’s responsible to other departments and the urgency of payment due to the fact that Police Operation are situational to allow quick deployment of manpower.
17.23 Custody of Exhibits The investigating officer shall as far as possible, ensure that exhibits are preserved in their original state as at the time of possession and must not tamper or interfere with the exhibits.25 The Ba Police Station had in their possession exhibits in the form of two vans, a boat and a car parked in the Station compound for the past 9 years.
The audit was informed that initially when the exhibits were brought to the Ba Police Station in the year 2000 they were all in good working conditions.
Refer to the pictures below for details of the current statues of the exhibits: 24 Finance Manual Section 4.5.14 25 Procedures for seizure, management and disposal of exhibits Section 5.2.1.3 b Fiji Police Force Section 17: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ According to CID HQ the case started in 2000 and was completed in 2005, whereby the Judge gave her judgement for the exhibits to be forfeited to the State.
This was not done as a disposal procedure manual is yet to be implemented in Fiji.

The above indicates the lack of adherence to proper storage of exhibits by Officers at the Ba Police Station which has resulted in the exhibits deteriorating and in states of disrepair.

Recommendation The Force should ensure that the exhibits are preserved in the original state as at the time of possession.

Management Comments The case was handled by CID HQ.
Investigating Officers are working on the High Court documents for further instruction on disposal of exhibit.
17.24 Police Footwear at Government Supplies The supply of safety Boots and Safety shoes are to be procured from the Department of Government Supplies as per tender No.CTN31/07.26 The audit noted that the Police Force continued to purchase its footwear from Deluxe Footwear Fashions Limited, despite the clear instructions given in the Finance Circular that all purchases of safety Boots and Safety shoes were to be made through Government Supplies.
It was further noted that Black shoes and Tuff boots were purchased at a very high price of $185.00 and $156.00 a pair which was seen as exorbitant at a time when there are cost reduction measures were in place for all ministries and departments.

Further verifications revealed that Government Supplies had in stock black shoes and Tuff boots which had been lying in the bulk for the last years due to the Police Force procuring from Deluxe directly.
The Government Supplies Department is now in the process of auctioning the boots as they have remained unsold for some considerable time.

These boots were initially purchased for the Fiji Police Force.

The following pictures were taken at the Government Supplies of shoes and Tuff boots.

26 Finance Circular No.

16/2008 dated 06/11/00.


Fiji Police Force Section 17: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The above indicates Force’s disregard of Finance Circular No.16/2008 and the Financial Management Regulations 2005 in continuing to purchase at higher costs from Deluxe Footwear.

Recommendations  The Force should adhere to Finance Circular No.

16/2008 at all times.


 The Force should surcharge officers authorising the purchases of footwear from Deluxe in contravention to the Finance Circular instructions.

Management Comments Police Act 8 (1) on the Administration of the Force it states “The administration of the Force throughout Fiji shall be vested in the Commissioner”.
The organisation has been going through transformation, modernization and re-energisation to support its operation to effectively and efficiently Maintain Law and Order 17.25 Excessive Procurements from Lotus Garments (MFG) Ltd Inventory should be purchased in the most economical manner having regard to the expected level of usage27.

The Force has been excessively procuring from Lotus Garments without calling for public tenders.
Refer to the table below for details: Table 17.21: Examples of Procurement made without Calling for the Tenders Date Item 02/12/08 Raincoat Set (Qty) at date of additional procurement 2,685 Additional procurements (Qty) 1,315 315,600 Cost $ Remarks 23/06/09 Ripstock Trousers Navy 1,203 7,500 337,500 23/06/09 Long Sleeve Shirt Grey 18/06/09 Police Navy Fiji Trousers 23/06/09 Grey Shirt Short Sleeve 1,641 4,000 90,000 923 7,500 337,500 2,401 6,000 135,000 Additional procurements were made despite the high quantity of items on hand procurements Additional were made despite the high quantity of items on hand Additional procurements were made despite the high quantity of items on hand Additional procurements were made despite the high quantity of items on hand Additional procurements were made despite the high quantity of items on hand Furthermore, audit inspection of the stores at Nasese on 25/06/09 revealed that 1,000 sets of 31 piece dinner set with the Police Department’s logo printed on it was delivered by Lotus garments.
Audit requested to take photos of the dinner set unloaded but was refused by the stores personnel upon instruction from the headquarters.

The unnecessary purchases tied down funds as stock levels when additional purchases were made were seen to be sufficient.

The risk of dubious purchasing cannot be ruled out.

27 Financial Instructions 2005 Section 43(1) (a).


Fiji Police Force Section 17: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendations  The Force should avoid unnecessary payments to ensure that there was proper utilization of resources.

 The approval of Major Tender Board must be obtained for any purchases above $20,000.
 The Force should investigate whether such large scales of procurement are necessary and whether items purchased have been received and properly issued.

Management Comments Date 2/12/08 Item Raincoat set Cost $ 315,600 COGS advise on contracting prepared with supplier.

Contract signed, Action Taken Solicitor General advice provided.

23/06/09 Rip-stop Navy 337,500 COGS advise on contracting prepared with supplier.
Contract signed, 23/06/09 18/06/09 23/06/09 Grey sleeve Trousers Long shirt grey Fiji Police Navy Trousers Shirt 90,000 Solicitor General advice provided.

COGS advise on contracting prepared with supplier.

Contract signed, Solicitor General advice provided.

337,500 COGS advise on contracting prepared with supplier.

Contract signed, Solicitor General advice provided.

135,000 COGS advise on contracting prepared with supplier.

Contract signed, Short Sleeve Solicitor General advice provided.
17.26 Lawsuit Filed Against – Major Tenders Board Public tenders may be called for procurement of goods, services or works valued at $20,000 or more unless a Tender Board had approved an exemption in accordance with Finance Instruction 12(6).28 On 10/10/07 Major Tenders Board in its meeting No.

17/0729 decided to award the contract for supply of sky blue shirts to Tropical Garments and the Blue long trousers to be supplied by Lotus Garments.
The audit however noted that the Police Commissioner had rejected the decision of the Major Tenders Board and instead purchased the sky blue shirts from Lotus garments costing the government an extra $55,600.

The fabric to be used for the sky blue shirts was same from both Tropical garments and Lotus garments.

Refer to the table below for the tender evaluation for the sky blue shirts.
Table 17.22: Tender Evaluation Details Supplier Tropical Garments Fiji Ltd Lotus Garments South Austral Pty Ltd Item Shirt Sky Blue – Regular Officers Shirt Sky Blue – Regular Officers Shirt Sky Blue – Regular Officers Particulars 8,000 pieces @ $15.85 8,000 pieces @ $22.80 8,000 pieces @ $50.75 = $126,800 VIP = $182,400 VIP = $406,000 VIP Furthermore, audit noted that a letter was forwarded by Sherani & Co to Major Tenders Board instituting legal proceedings due to considerable loss and damages suffered by their client Tropical Garments amounting to $126,950.
The Force had continuously made substantial purchases from Lotus Garments despite high cost to the government.

With non adherence to Major Tender Board decisions the Force has allowed the government to be sued for defaulting on its decision.
28 Fiji Police Force Finance Manual 2005 Section 2.3.1 29 Major Tender Board, Tender CTN 17/07 Supply of Uniforms - Police Fiji Police Force Section 17: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendations  The decision of the Major Tenders Board should be stringently followed for any procurement above $20,000.
 Disciplinary and surcharge action should be instituted against all officers who had not adhered to the Major Tenders Board’s decision and instead incurring an extra $55,600 cost and the possible litigation cost of $126,950.
Management Comments Supplier Tropical Garments Fiji Ltd Lotus Garments Item Shirts Sky Blue - Regular officers Shirts Sky Blue – Regular Officers pieces Particulars 8000 $15.85=$126,800.00 VIP 8000 $22.80=$182,400.00 VIP pieces at @ South Austral Pty Ltd Shirt Sky Blue – Regular Officers 8000 pieces @ $50.75 =$406,000.000 VIP 17.27 Motor Vehicle Accidents Action Taken Award does not fully meet our uniform specs.

COGS advise on contracting supplier.


with prepared Contract Solicitor singed, General advice provided.

Award does not fully meet our uniform specs.
It is the responsibility of the Driver to study the Transport Rules and Instructions and the head of Department to ensure that the driver understands his responsibilities which could reduce unnecessary expenses, avoidance of negligent driving.30 A copy of the accident report shall be submitted to the Deputy Commissioner of Police who shall forward copies to the PS, Ministry of Finance and the Solicitor General.31 Audit noted that for 2008 alone there were 81cases of accidents involving Police Vehicles.
Out of this, 46 cases had the Police Officers at fault which included negligent drivers.

Audit noted that the drivers implicated had their cases pending with Ministry of Finance.

Refer to Appendix 17.5 for examples.

Accident on motor vehicles ties up unnecessary funds in terms of maintenance and repairs and most importantly hinders the Police Force from providing much needed urgent service to the public.

Recommendation Officers responsible for damaging government vehicles should be surcharged.
Management Comments Please refer to Appendix 17.5 for management comments.
31 Fiji Police Force – Finance Manual Section12.6.6 Fiji Police Force Section 17: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 17.28 Negligent Drivers A driver involved in an accident may be surcharged if the surcharging authority believes the driver was at fault.32The accident report, Police report, Solicitor Generals advice and Director Traffic’s recommendations will be taken into consideration by the surcharge authority before any surcharge is imposed.33 Audit noted on a number of occasions officers from the Force were involved in motor vehicle accidents due to their own negligence.
The following table provides some examples: Table 17.23: Examples of Accident caused due to Negligence Driving Date Reg # Place Accident of Driver Name Estimate Cost Of Repair ($) Fault Cause of Accident 16/01/2008 GN 163 T/Pool yard IP Juita Vucago 150.00 Police Driver 16/01/2008 GN 551 T/Pool yard PC Shan 30.00 Police Driver 25/01/2008 GN 256 & GN 472 Transport Pool SC 2538 Iosefo 70.00 Police Driver 01/03/2008 GN 474 QEB SC Imran Khan 200.00 Police Driver 18/03/2008 GN 096 & GN 035 18/03/2008 GM 305 01/05/2008 GN 654 Transport Pool Transport Pool Jaduran S SC 276 Epeli 180.00 Police Driver CPL Ilisoni 200.00 Police Driver SC 1909 Jowe Rabuka Not Stated Police Driver Vehicle GN551 reg.
reversed and bumped into GN 163 which was in motion.

While reversing bumped into GN 163.

While and reversed bumped vehicle reg.

GN 256.

While reversing bumped into the retaining wall.

Police vehicle reg.

GN 035 bumped into GN 096.

GM 305 bumped into GN 096.

While reversing bumped into the gate post.

Such incidents by the drivers depict a negative picture and imply that the Force has not provided adequate training to its drivers.
Recommendations  Officers found negligent during accidents whilst driving the Force’s vehicles should be surcharged.

 The Force should ensure that only qualified drivers are allowed to drive.

Management Comments All Police Drivers authorised to drive “must” posses a Defensive Driving Certificate.

Newly recruited drivers have to go through two weeks of orientation and basic training.
32 Fiji Police Force – Finance Manual Section 12.6.7 33 Fiji Police Force – Finance Manual Section 12.6.8 Fiji Police Force Section 17: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 17.29 Hiring of Rentals Officers responsible for the control over expenditure should ensure proper economy in the use of public funds and thereby ensure that proper value is obtained for all funds utilised.
Audit noted that the Force had been incurring substantial expenditure from the hiring of vehicles over the past 4 years.

Audit scrutiny of the payment vouchers and details obtained from FMIS revealed that the total expenditure on rentals amounted to $ 286,804.02 from 2006 to June 2009.
Refer to the table below for details: Table 17.24: Details of Hiring of Rental Vehicles Payee June 2009 Amount($) 2008 Amount($) 2007 Amount($) 2006 Amount($) Dove-Rent-A-Car Quality Rent A Car Avis Budget Rental Cars Carpenters Rentals Amazing Rentals Ltd Sharmas Rent A Car TOTAL Recommendation 5,500.00 53,713.56 4,061.75 8,956.00 2,170.00 - - 74,401.31 28,006.36 23,771.50 - - 1,550.00 630.00 - 53,957.86 17,119.99 56,804.20 6,515.96 22,345.20 - - 3,600.00 106,385.35 20,200.00 27,739.50 - - - - 4,120.00 52,059.50 Total 70,826.35 162,028.76 10,577.71 31,301.20 3,720.00 630.00 7,720.00 286,804.02 It is recommended that the hiring of vehicles be strictly monitored and that it should only be restricted for urgent purposes after all means of trying to obtain a vehicle within the force have been exhausted.
Management Comments A commitment urgently required on special operation.
Fiji Police Force Section 17: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 17.1: Statement of Output Costs for 2008 Portfolio Leadership and Secretariat Support Description EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Total Capital Expenditure 2008 $ 2007 $ 13,751,097 41,529 383,467 392,781 167,043 19,999 183,273 14,939,189 12,712,725 77,082 2,368,994 1,552,893 660,900 19,956 83,590 17,476,140 0 2,205,006 2,205,006 0 119,802 119,802 Value Added Tax 389,444 1,108,556 TOTAL EXPENDITURE 17,533,639 18,704,498 Community Policing Description EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure 2008 $ 2007 $ 2,002,071 0 0 0 0 49,151 2,051,222 893,342 0 62,773 87,016 13,403 166,399 1,222,933 Value Added Tax 5,357 60,866 TOTAL EXPENDITURE 2,056,579 1,283,799 Fiji Police Force Section 17: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Police Operations Description EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating
 Expenditure Capital Costs Capital Purchases Total Capital Costs 2008 $ 2007 $ 5,351,064 25 858,499 79,788 445,665 59,940 6,794,981 5,356,913 10,238 304,532 34,831 17,008 165,496 5,889,018 163,631 163,631 0 0 Value Added Tax 166,516 664,285 TOTAL EXPENDITURE 7,125,128 6,553,303 Criminal Investigation Description EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure Capital
 Expenditure Capital Construction Total Capital Expenditure 2008 $ 2007 $ 205,189 93,938 26,319 (1,188) 686,922 324,803 1,335,983 118,611 36,936 27,547 1,983,054 20,313 0 2,186,461 804,008 804,008 188,437 188,437 Value Added Tax 256,564 308,705 TOTAL EXPENDITURE 2,396,555 2,683,603 Fiji Police Force Section 17: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Fiji Police Intelligence Bureau Description EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure 2008 $ 2007 $ 76,245 7,839 100,808 71,866 22,465 139,999 419,222 229,794 91,190 36,351 - 194,678 37,787 589,800 Value Added Tax 25,806 49,151 TOTAL EXPENDITURE 445,028 638,951 Corporate Support Services Description EXPENDITURE Operating Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure 2008 $ 2007 $ 40,981,864 540,116 2,190,153 5,634,567 742,031 70,437 50,159,168 38,022,313 688,446 860,086 186 894,103 51,111 40,516,245 Value Added Tax 1,056,375 3,209,394 TOTAL EXPENDITURE 51,215,543 43,725,639 Appendix 17.2: FNPF Variance Details (a) Total FNPF against salaries and wages for 2008 FNPF as per financial statement Add: FNPF for December 2008 Payment made not entered into FMIS for 2008 418,231 11,379 Less: FNPF for
 December 2007 $ 4,601,085 429,610 5,030,695 442,072 4,588,623 Gross pay subject to FNPF (4,588,623 divided by 0.08) 57,357,788 (b) Salaries and wages for 2008 subject to FNPF: Fiji Police Force Section 17: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Salaries, wages and allowances as per financial Statement Less: Salaries and wages not subject to FNPF Salaries, wages and allowance for 2008 subject to FNPF Variance 58,449,893 - 58,449,893 1,092,105
 Appendix 17.3: Exorbitant Expenses Date Cheque # Amount ($) Payee 04/06/09 650442 500 Methodist Church in Fiji 05/12/08 644044 10,780 Emosi Baleinuku 05/12/08 644042 10,200 Josua Vodo 05/12/08 644043 7,300 Esekaia Daugunu 09/12/08 644165 3,800 Formscaff 09/12/08 644171 11,000 Sharma Music Centre 09/12/08 644185 3,000 Lei Production 10/12/08 644334 7,960 Mai Tv 10/12/08 644265 300 Nasinu Seventh Day 10/12/08 644272 Adventists 940 Solo Hire Services 11/12/08 644426 540 Lalas Bargain Centre 18/12/08 18/12/08 19/12/08 19/12/08 644072 644759 645810 645851 12,000 Dee Cees 4,180 Dee Cees 3,410 Dee Cees 800 Formscaff 29/12/08 644758 14,660 Dee Cees 26/06/09 651315 1,500 Pillay Garments Manufacturing Fiji Police Force Details Allocation refreshment, Hire of roofing iron for crusade.
Tea, biscuit, butter, rewa life, flour, soya bean oil, transport, sugar, decoration, banner, sound system Transport, stage, sound system, Ground, salusalu.

prizes, band, transport, trophies, t-shirts, electricity, gifts, sound refreshments, system Put up shed at the main venue for the Western Division at Nadovu Park, Lautoka Hire of Sound System – base guitar, base amp, rhythm guitar, keyboard and drum set.
Production of 10 banners for the national crusade week for western division Televised coverage of crusade by Mai TV Police Crusade week crime Training prevention Not in system Not in system Not in system Awareness others Awareness others Awareness maritime safety Other maintenance & operation Protection clothing Protection clothing gear gear & & gear & Hire of chairs for crusade week Bula material for crusade Protection for Hire of Bus for crusade Hire of buses for Eastern Division crusade Hire of Bus for crusade Morque crusade Hiring of buses during the national crusade week T-Shirts Ruggers Jesus-crusade Police for clothing Search and rescue Manual payment not updated in the system.
Telecommunication Telecommunication & W operation S Building Road Safety Awareness Program Section 17: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Cheque # Amount ($) Payee 18/03/09 647807 450 Frincos Hire Fiji Ltd 18/03/09 647807 450 Frincos Hire Fiji Ltd 20/11/08 643079 19,400 S S Music World Details Allocation Hire Temporary Stage for Nausori Crusade Hire stage family crusade for Police Commanders Conference R& M Building R&M Equipment Radio & Electronic Purchased:  Sound TEK Channel Mixer  Aclon D3000 Power Amplifier  Aclon D2000 Power Amplifier  MX-1515 B52 15 inches 18 S SUBWOOFER  MX  Snake cable For crusade work Appendix 17.4: Manual Payments Cheque # 632160 632161 633505 633514 633517 633518 633526 633534 633536 633546 633553 634544 634843 634973 636770 639001 639002 639004 639005 639006 640119 640121 640122 640130 640649 640789 Payee Sera Bernanrd Eroni Antonio Air Fiji Ltd Crime Officer Nadi Dir PMD Exceed Pasifika Ministry of Labour Savusavu Hotspring Shiv Autospares COP Ramesh Chand Vinod Patel Holy Family Primary FEA Sekove Maiesia Not stated Not stated Not stated Not stated Not stated Jad International Boulevad Cetral Anzar Begg Waqainabete E Uprising Printing Not stated Amount ($) Remarks 7,106.04 Search & Rescue 7,106.04 Search & Rescue 1,762.60 Travel Exp 1,449.00 Meal Claim 1,125.00 Meal Claim 2,205.00 Telecom 7,560.00 OHS 1,635.20 Subsistence 1,100.00 Spareparts 16,298.13 U/E Wages 2,000.00 Not stated 4,563.60 Stores
 1,370.00 6,188.69 Power Supply 1,609.73 Lodging All 74,521.00 Not stated 4,200.00 Not stated 43,652.00 Not stated 2,011.00 Advance 5,321.00 Advance Not stated 2,716.00 3,114.10 Not stated 5,184.44 Not stated 1,800.00 Travel Exp 4,500.00 Stationery 850.00 Not stated Not stated Fiji Police Force Section 17: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Cheque # 641249 641409 641411 641412 641413 641414 641415 641416 641419 641427 641428 641429
Payee Not stated Elenoa T Rup Investment Total Fiji Ltd Total Fiji Ltd Viliame Kaitani Dee Cees Bus Livai T COP Consort Shipping Taufa Lote COP Dir CID OC Strikeback Dir OPS OC Strikeback Lepanoni Settlement OC Dog Namaka SO Rakiraki COP Not stated Not stated Not stated Total Fiji Ltd Elenoa T Air Pacific Officers Mess Lotus Garment Salacieli Naivilawasa Viliame Soko Not stated Classic Buses Ltd Pacific Transport Akbar Buses Ltd Jone Ralulu Not stated Not stated Cathy Hotel Jale Dilio Kelemedi Naidiri Vinod Chand Lemeki Mawalu Sailendra Chandar Mosese Nailumu Vilikesa Vurewa Sumeshwar Prasad Ropate D T K Parker Dee Cees Bus Amount ($) Remarks 250.00 Not stated 3,000.00 Prisoners Meal 4,500.00 Stores 1,304.64 Fuel 11,115.56 Fuel 1,349.86 Re-Engagement 510.00 Travel Exp 2,213.50 Subsistence 1,100.04 Meal Claim 2,640.00 Travel Exp 5,385.30 P/E 1,503.00 Meal Claim 1,164.00 Meal Claim 1,188.00 Meal Claim 1,548.00 Meal Claim 2,187.00 Meal Claim 1,750.00 Trust Fund-SPORTS 4,223.96 Meal Claim 4,520.65 Meal Claim 2,604.93 Meal Claim 65,321.52 Not stated 3,125.00 Not stated 22,032.00 Not stated 38,978.44 Fuel 1,800.00 Force Education Programme 1,043.60 Travel Exp 3,975.43 Prisoners Meal 8,400.00 Stores 90.00 Meal Claim
 300.00 Meal Claim 840.00 Not stated 380.00 Travel Exp 485.00 Travel Exp 400.00 Travel Exp 3,000.00 Meal Claim 480.00 Not stated 200.00 Meal Claim 444.00 Subsistence 1,900.00 Travel Exp 216.00 Meal Claim 216.00 Meal Claim 234.00 Meal Claim 14,716.99 Not stated 300.00 Meal Claim 234.00 Meal Claim 279.00 Meal Claim 351.00 Meal Claim 198.00 Meal Claim Travel Exp 4,180.00 Fiji Police Force Section 17: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________
 Cheque # Payee Govt.
Printing Jese W Carpenters Motors Govt.
Printing Ram Naresh Mass Stationery Govt.Supplies Timoci T Avenito Penieli R Simione C Esava K Mesulame Amani T Pepe's Duty Free Climates Carpenters Motors Milestone Auto Traders Motor Parts Traders Ricoh Business Centre Office Mart Ltd Pacific Import Nivis Motors Arun Furniture Nabua Upholstery Brijlal & Co Ltd Manos Motors Wingate Marketing Rakiraki Hotel Kasabias Hardware Safeway Electronics Gurbachan Singh Suva Bookshop Dir CID Sudesh Prasad Jitoko Vuli Mosese Bolabiu Safeway Electronics Extreme Stationery Delux Footwear Elcom Services Not stated Fast Find Amount ($) Remarks 16,419.98 Stationery 395.00 Travel Exp 300.00 Spareparts 855.00 Stationery 108.00 Meal Claim 1,868.00 Stationery 1,273.94 Stores 931.22 P/E 869.32 P/E 968.94 P/E 712.65 P/E 855.09 P/E 970.37 P/E P/E 943.51 110.00 Stores 185.00 Subsistence 880.02 Spareparts Spareparts 200.00 Spareparts 223.12 798.75 Stationery 240.00 Stationery 3,600.00 210.00 1,218.00 543.00 Stores 500.00 Stores 675.00 Spareparts 2,855.00 Building & Maintenance 1,568.70 Subsistence 663.26 Building & Maintenance 26,985.00 1,080.00 Stores 3,780.00 Stationery 675.00 Meal Claim 243.50 SC Wages 697.38 SC Wages 809.54 P/E 26,985.00 Spareparts 1,893.80 Stationery 151,520.00 Stores 2,625.00 2,382.00 1,646.00 Stores Spareparts Furnitures Telecom Not stated Telecom Spareparts Fiji Police Force Section 17: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 17.5: Details on the Accident to Police Vehicles Date Reg #
 Place of Accident Driver Name 18/01/2008 GN183 Borete Road Nadawa DC2734 Alipate 22/01/2008 GM772 Vakamaisuasua SC2166 Petero 09/02/2008 GM271 Labasa Seqaqa Rd D/CPL 2372 Mani 01/03/2008 GN474 QEB SC 1096 Imran Khan 23/03/2008 GN350 Drasa Avenue CPL 174 Anil Chand 03/04/2008 GN933 Queens Road Navo PC 4291 Laitai R 07/03/2008 FG613 Car park FPA 4290 Manasa PC Tawake 01/05/2008 GN654 Jaduram S, Labasa 1909 SC Rabuka Jowe 14/04/2008 GM923 QEB Apisalome Qali 09/05/2008 GN244 Grantham Vatuwaqa Road SC 93 Anjilesh Chand 05/04/2008 GN185 Drasa Avenue SC 2916 Alan nair Fiji Police Force Estimate Cost Of Repair ($) Action Taken 1,100.00 Delays on submission of Accident reports to Finance are due to prolong of court case.
Court case pending.

350 Delays on submission of Accident reports to Finance are due to prolong of court case.

All Police Drivers involved in accident are surcharged to recover full costs for maintenance.

150 Delays on submission of Accident reports to Finance are due to prolong of court case.

200 Delays on submission of Accident reports to Finance are due to prolong of court case.

250 Delays on submission of Accident reports to Finance are due to prolong of court case.

Case files #1432/08 file.


1,500 Delays on submission of Accident reports to Finance are due to prolong of court case.

213 Delays on submission of Accident reports to Finance are due to prolong of court in case.

court.

Case pending Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

30 Delays on submission of Accident reports to Finance are due to prolong of court case.
Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

650 Delays on submission of Accident reports to Finance are due to prolong of court case.

Case file #3940/08 discharged.
Section 17: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Reg # Place of Accident Driver Name 06/06/2008 GN076 Statham vatuwaqa Road Sc 1284 Seru Toribau 21/06/2008 GN090 Vunika Rd 26/06/2008 GN640 Drasa Rd Lautoka 3197 Ashneel Pc Kumar 2708 DC Waqasau Elia 20/03/2008 GN305 Transport Pool PC 4003 Satya Nand 26/07/2008 GN366 Kings Road - 5 Miles SC 764 Neori Raiqiso 11/08/2008 GM531 Transport Pool SGT 1118 Timoci 19/08/2008 GN200 Bulileka Road PC 2370 Abdul Hakim 01/09/2008 GN294 Q/E Drive CPL 1426 Taito Estimate Cost Of Repair ($) Action Taken 100 Delays on submission of Accident reports to Finance are due to prolong of court case.
Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

70 Delays on submission of Accident reports to Finance are due to prolong of court case.

80 Delays on submission of Accident reports to Finance are due to prolong of court case.

Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

Case still pending in court.

Not stated Delays on submission of Accident reports to Finance are due to prolong of court case.
Investigation pending.

Court case ongoing.

500 Delays on submission of Accident reports to Finance are due to prolong of court case.

Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

Officer convicted with for total to damage.

Solicitor for surcharge process.


General $7,365 File sent cost 05/09/2008 GN198 Nabua Bypass IP Basiyalo 19/09/2008 GN494 Kings Naivuvunira Road SC 494 Satya 26/09/2008 GN549 Foster Rd Walubay SC 184 Kuruduadua Joji Fiji Police Force 500 Delays on submission of Accident reports to Finance are due to prolong of court case.

Investigation ongoing.

Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.
Cost of damage $5,000.00 paid by SC 494 Satya, investigation continuing.

Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

Investigation pending.

Court case ongoing.
Section 17: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Reg # Place of Accident Driver Name 11/10/2008 GN502 Kings Rd 6 Miles CPL 1301 Timoci Qio 06/11/2008 GN026 Nairai Rd DC 2990 Tora Isireli 06/11/2008 GN256 Biau Cunningham Drive - PC 4291 Ilaitia 04/12/2008 GN676 Queens Naimelimeli Rd 870 SC Bainivalu Eroni Estimate Cost Of Repair ($) Action Taken 850 Delays on submission of Accident reports to Finance are due to prolong of court case.
in court.

Case pending 150 Delays on submission of Accident reports to Finance are due to prolong of court case.

Not Stated Delays on submission of Accident reports to Finance are due to prolong of court case.

Court case pending.

200 Delays on submission of Accident reports to Finance are due to prolong of court case.

Case still pending in court.


Fiji Police Force Section 17: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 18 Ministry of Education Role and Responsibilities The Ministry is responsible for the delivery of Education and training services to schools, pre – schools, and training centres and it is also responsible for the preservation of the different culture in Fiji.
These include the provision of curriculum frameworks, policy – guidelines, qualified teaching personnel, and programmes support to controlling authorities and education and training Institutions.

The Ministry also has responsibilities for ensuring that standards in education are met and maintained through the regulation and recognition of education and training providers and accreditation of programme delivery.
Through advisory services, support is rendered to school management for the effective running of schools as well as financial assistance for constructions and maintenance of school facilities.

The Ministry is also tasked with improving rural education standards and the education opportunities of disabled students and out of school youths.
Table of Contents FINANCIAL STATEMENT ........................................................................................................................ 2 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 Audit Opinion .................................................................................................................. 2 Statement of Receipts and Expenditures....................................................................... 2 Statement of Output Costs ............................................................................................. 3 Appropriation Statement ................................................................................................ 3 Statement of Losses ...................................................................................................... 4 Trust Account-Statement of Receipts and Payments .................................................... 4 FNPF Reconciliation ...................................................................................................... 5 VAT Reconciliation ......................................................................................................... 6 AUDIT FINDINGS .................................................................................................................................... 7 HEADQUARTERS ................................................................................................................................... 7 18.9 Salary
7 18.9 Salary Overpayments..................................................................................................... 7 18.10 Vehicle Mileage Exceeding 200,000 Kms ..................................................................... 9 18.11 Monitoring Grant Assistance ........................................................................................ 10 SUVA GRAMMAR SCHOOL ................................................................................................................. 11 18.12 Anomalies in Trust Fund Accounts .............................................................................. 11 DELAINAMASI GOVERNMENT SCHOOL ............................................................................................ 13 18.13 Anomalies in Trust Fund Accounts .............................................................................. 13 18.14 Parents and Teachers Association (PTA) Account ...................................................... 15 18.15 Missing Item ................................................................................................................. 16 FIJI COLLEGE OF ADVANCED EDUCATION ...................................................................................... 17 18.16 Unserviceable Vehicle ................................................................................................. 17 NASINU SECONDARY SCHOOL ......................................................................................................... 17 18.17 Abuse of Vehicle
 by the Principal ................................................................................ 17 18.18 Urgent Maintenance of Boys’ Dormitory ...................................................................... 19 QUEEN VICTORIA SCHOOL ................................................................................................................ 20 18.19 Poor State of Student’s Dining Hall .............................................................................. 20 Ministry of Education Section 18: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ RATU KADAVULEVU SCHOOL ............................................................................................................ 21 18.20 Poor State of the Kitchen ............................................................................................. 21 DIVISIONAL EDUCATION OFFICE – NORTHERN .............................................................................. 22 18.21 Anomalies in Building Grant Awards ............................................................................ 22 Appendix 18.1: Statement of Output Costs ........................................................................................... 26 Appendix 18.2: Outstanding Salary Overpayments from 1988 to 2008 ............................................... 33 Appendix 18.3: Salary Overpayments in 2008 due to Resignations and Leave Without Pay .............. 34 Appendix 18.4: Payment of
 Wages to Typist Assistants ...................................................................... 35 Appendix 18.5: Payment of Vodafone Bills ........................................................................................... 36 Appendix 18.6: Excessive Expenditures – Opening of a Classroom .................................................... 37 Appendix 18.7: Details of Abuse of Vehicle by the former Principal ..................................................... 37 FINANCIAL STATEMENT 18.1 Audit Opinion The audit of the 2008 accounts of the Ministry of Education resulted in the issue of a qualified audit report.
The qualifications are as follows: (a) The amounts reflected in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of Government.

It is not possible therefore to determine the accuracy of the expenditures incurred by the Ministry under each fifteen outputs.

(b) The payments of FNPF contributions and VAT could not be reconciled to the accounts.
18.2 Statement of Receipts and Expenditures The Ministry of Education collected revenue totalling $1,557,376 and incurred total expenditures of $291,133,319 in 2008.
TABLE 18.1: STATEMENT OF RECEIPTS AND EXPENDITURES FOR 2008 Description RECEIPTS State Revenue Operating Revenue Total State Revenue Agency Revenue Miscellaneous Revenue Sale of Photographs Sales of Sch Farm Produce Total Agency Revenue TOTAL REVENUE Ministry of Education 2008 $ 2007 $ 1,367,295 1,367,295 1,361,237 1,361,237 182,088 0 7,993 190,081 59,187 0 6,688 65,875 1,557,376 1,427,112 Section 18: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Description EXPENDITURES Operating Expenditure Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditures Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure 2008 $ 2007 $ 203,219,593 2,589,889 731,822 1,170,092 5,183,319 68,315,738 565,723 281,776,176 202,176,456 2,629,143 681,636 1,047,534 4,469,371 64,941,020 560,427 276,505,587 2,109,499 --- 6,245,397 8,354,895 1,459,480 30,080 5,043,023 6,532,583 Value Added Tax 1,002,247 27,886,536 TOTAL EXPENDITURES 291,133,319 310,924,706 The Ministry revenue increased by $130,264 or 9% in 2008 compared to 2007 as a result of increase in sale of farm produce, and increase in the number of request for recount, rechecks and certified copy of the exam results.
The Operating Expenditure increased by $5,270,589 or 2% in 2008 compared to 2007 due to:   the increase in cost for printing of exam papers and cost of ration for boarding schools; and increase in grant to USP, and tuition grant for Primary Schools.

The Capital Expenditure increased by $1,822,312 or 28% in 2008 due to the increase in capital works such as maintenance and upgrading of buildings (including upgrading of Vocational Centres), and increase in grant payable to FIT.
The VAT Expenditure decreased by $26.9m in 2008 due to the removal of VAT from SEG 1 Established Staff and SEG 2 Unestablished Staff.

18.3 Statement of Output Costs The Statements of Output Costs consolidates the 15 outputs prescribed in the Budget Estimates.

These are detailed in Appendix 18.1.

18.4 Appropriation Statement The Ministry of Education incurred expenditures totalling $291,133,319 in 2008 against the budget of $304,935,941 resulting in a savings of $13,802,622 or 5%.
Ministry of Education Section 18: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ TABLE 18.2: APPROPRIATION STATEMENT FOR 2008 Budget Estimate $ 212,428,500 2,385,500 719,000 1,130,000 4,777,900 65,704,100 850,000 287,995,000 Changes $ (2,663,036) 241,000 22,423 92,661 555,000 8,839,801 --- 7,087,849 Revised Estimate $ 209,765,464 2,626,500 741,423 1,222,661 5,332,900 74,543,901 850,000 295,082,849 Actual Expenditure $ 203,219,593 2,589,889 731,822 1,170,092 5,183,319 68,315,738 565,723 281,776,175 Carry – Over $ --- --- --- --- --- --- --- --- Lapsed Appropriation $ 6,545,871 36,611 9,601 52,569 149,581 6,228,163 284,277 13,306,674 SEG Description Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants and Transfers Total Capital Expenditure 2,350,000 --- 4,897,000 7,247,000 --- --- 1,353,992 1,353,992 2,350,000 2,109,499 --- 6,250,992 8,600,992 --- 6,245,397 8,354,895 --- --- --- --- --- --- 240,501 --- 5,595 246,097 249,853 13,802,622 13 Value Added Tax 1,252,100 --- 1,252,100 1,002,247 TOTAL EXPENDITURE 296,494,100 8,441,841 304,935,941 291,133,319 18.5 Statement of Losses A sum of $1,018.22 which comprised of two salary cheques went missing from the office and was later cashed by a salary clerk.
The clerk has been charged by police and his services been terminated.

Details of the loss were reported to Ministry of Finance.

Four officers from salaries section have been issued surcharge letters and have been given time to appeal.

Mr. Josefa Natau lost US$2,116 in transit in Kuala Lumpa.

He reported the matter to the information desk at the Malaysian Airlines.
On his return to office the matter was reported to Ministry of Finance who are recovering the loss from him at a rate of $50 until the full amount of FJD$3,136 is recovered.

A camera worth $900 went missing from the office of the Principal Education Officer – Education Support Unit.

The officer responsible for the loss was surcharged and is repaying at $50 a pay until the full amount of $900 is cleared.
A break in occurred at Bucalevu Secondary School on 05/09/08 where food items valued at $218.37 were stolen.

The matter was reported to the police at Taveuni and to the Ministry of Finance.

Investigations are continuing.
18.6 Trust Account-Statement of Receipts and Payments TABLE 18.3: OPERATING TRUST FUND ACCOUNT STATEMENT Description Opening Balance Add: Receipts Less: Payments Ministry of Education 2008 $ 1,378,864 39,956,578 41,335,442 40,032,468 2007 $ 2,610,458 37,128,403 39,738,861 38,359,998 Section 18: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Description Closing Balance 2008 $ 1,302,973 2007 $ 1,378,863 The total trust fund for the Ministry has decreased by $75,890 or 6% from $1,378,863 in 2007 to $1,302,973 in 2008.
18.7 FNPF Reconciliation Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee is employed by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.1 The current rate of contribution is 16 cents on each dollar earned, with the employer and employee each contributing 8 cents.
A reconciliation of FNPF contributions against salaries and wages reported in the Financial Statements revealed variances as follows: TABLE 18.4: VARIANCE BETWEEN FNPF RECONCILIATION AND PAYROLL EXPENDITURE Details (a) Total FNPF against salaries and wages for 2008: FNPF as per financial statement Less: December 2007 FNPF Add: December 2008 FNPF FNPF for 2008 Gross Pay subject to FNPF (FNPF 2008 / 0.08) (b) Salaries and Wages for 2008 subject to FNPF Salaries, wages and allowances as per financial statement Less: Salaries, wages and allowances for 2008 not subject to FNPF Un-reconciled Variance Amount $ 15,229,667.17 2,489,570.08 12,740,097.09 2,582,805.44 15,322,902.53 191,536,281.63 190,579,814.72 7,710.92 190,572,103.80 964,177.83 The above variance indicates that the FNPF have been underpaid.
The Ministry could have avoided the above variance had they been more vigilant and proper supervisory controls were in place.

Recommendation The Ministry should review its FNPF records and reconciliations and provide explanations for the variances.
Ministry’s Comments Details SEG 1 SEG 2 Financial Statement ($) 15,044,998.00 184,669.00 ($) 1 Chapter 219 – Fiji National Provident Fund – Section 13 (1) Ministry of Education Section 18: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Details Total LESS DECEMBER-07 ADD DECEMBER-08 DIFFERENCE Financial Statement ($) ($) 15,229,667.00 2,582,805.44 12,646,861.56 2,489,570.08 15,136,431.64 93,235.36 The difference comprise of FNPF refunds from FNPF Board for employers share and reversal of salary for those teachers who have migrated or terminated and or those on leave without pay.
18.8 VAT Reconciliation Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of twelve and a half percent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.2 Output VAT is payable to the Commissioner of Inland Revenue for the supply of all goods and services with the exception of zero rated and exempted supplies.
Payments effected by government departments for goods and services are thus subjected to VAT.3 The department failed to prepare VAT reconciliations for 2008.

However, a review of VAT Returns and supporting documents carried out during the audit revealed an un-reconciled balance of $1,316,636.85 between the taxable supplies as per VAT Return and the total income/expenditure as per the Statement of Receipts and Expenditure.
Refer to Table 18.5 below for details: TABLE 18.5: VARIANCE BETWEEN VAT RETURNS AND INCOME/EXPENDITURE AS PER FINANCIALS Details Amount $ Total expenditure/income as per Expenditure Statement Less: Expenditure not subject to VAT – SEG 1,2, 6 and 10 291,133,318.88 280,370,616.79 Total expenditure/income subject to VAT Less: Total taxable supplies as per VAT Returns Un-reconciled variance 10,762,702.09 9,446,065.24 1,316,636.85 In addition, a difference of $531,278.12 was noted between the actual VAT payments for the year 2008 and the balance disclosed in the general ledger as reflected in Table 18.6 below.
TABLE 18.6: VARIANCE BETWEEN ACTUAL VAT PAYMENTS AND FMIS RECORDS Details Amount $ VAT payments (VAT payments to FIRCA and VAT Input) as per 1,002,247.09 2 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – section 15 (1) 3 Finance Circular No 9/95 Ministry of Education Section 18: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Details Statement of Receipts and Expenditure VAT payments (VAT payments to FIRCA and VAT Input) as per VAT Returns for 2008 Un-reconciled variance Amount $ 470,968.97 531,278.12 The Ministry could have avoided the above variances had they been more vigilant and proper supervisory controls were in place.
Recommendations  The Ministry should review its VAT records and reconciliations and provide explanations for the variances.

 Supervisory checks on the preparation of VAT Returns should be improved to ensure that balances reflected in the VAT Returns reconcile with the GL.
Ministry’s Comments VAT paid in total expenditure for 2008 was $1,002,247.09 which comprised of Input VAT Output VAT $745,700.87 $256,546.22 VAT Payment to FIRCA for 2008 was $256,546.22 and not $470,967.97 as mentioned in the draft Audit report.
The figure o $470,967.97 comprise of VAT payment for December 2008 amounting to $217,422.75 which was paid in January 2009 AUDIT FINDINGS HEADQUARTERS 18.9 Salary Overpayments An Officer, who has resigned, deemed to have resigned or terminated shall forfeit all the rights and privileges of his office from the date decided by the Commission.4 An officer who resigns without giving 30 consecutive days notice may be required to pay 30 days salary in lieu of notice.5 The Ministry has a total salary overpayment of $657,795.31 as at 31/12/08 which is still to be recovered.
Refer to Appendix 18.2 for details.

In 2008, the salary overpayment amounted to $213,226.37 of which $130,923.40 or 61% was overpaid to staffs upon resignations and leave without pay.

Refer to Appendix 18.3 for details.

Furthermore, audit noted instances whereby a Mr. Kamal Goundar and a Ms. Lucy Nina Savu who resigned from service in 2005 continued to receive their salaries until October 2008 and were overpaid salaries of $43,669.53 and $44,732.09 respectively.
4 General Orders 222 (d) 5 General Orders 222 (a) Ministry of Education Section 18: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Particulars of officers leaving the services are not provided to the Salary Section on a timely manner as result overpayment of salaries continued to be made.
Recommendations  The Ministry should make a concerted effort to recover these overpayments and if not recovered then surcharge action to be taken against officers responsible for the overpayments.

 The Ministry should develop an effective and efficient communication process between the various District Education Offices and Headquarters for prompt action.
 Particulars of officers leaving the services should be communicated to the Salary Section on a timely manner and before an employee leaves the service.

Ministry’s Comments The department has written to the defaulting officers who have left the service requesting payment of the overpaid salary, however, we have not been successful in recovery of the overpayments as some officers have left their last known addresses.
The use of telephones, internet and fax machines have contributed in trying to minimize overpayments nonetheless there is room for improvement in communication by all concerned, both at District and Administration level.

Access to the Ministry’s Internal Database (FESA) may assist the Salaries Section in detecting changes in Officers’ status and thus further contribute to a reduction in overpayments.

Your recommendations are acknowledged.


Additional Comments (15/09/09) (1) TPF 68366 Kamal Goundar – Late Notofication of Resignation Head Teachers Memo dated 30/07/07 (Folio 44) received (stamped) on 02/01/08 and marked to Director Primary.

The Letter from Heat Teacher states that a letter dated 26/05/05 informs of the teacher’s resignation from the service.

Faxed copy of the resignation letter and covering memo from SEO Nadroga/Navosa received on 12/10/08 and 14/12/08 (folio 46 & 47).
Cessation and reversal of salary – Pay 22/08 & Pay 23/08 respectively.

Total overpaid: $43,669.53 Amount Recovered: Nil to Date (15/09/09) Letters sent to his last known address were returned.

Note: Correspondence received from FTU – CTCS Between 19/01/06 – 29/08/07 indicates that he was aware of his salary being paid to him although he had resigned from the service.

(Teachers acted as witness on the CTCS forms).


(2) TPF 55068 Lucy Nina Savu – Late Notification of Resignation Letter of resignation dated 25/01/05 was sighted by Head Teacher on 01/02/05.

The letter was received by the AO Salaries on 10/07/07.

Reversal of Pay 14/07 and cessation of Pay 15/07.

Letter received from TPF 55068 Lucy Nina Savu on 09/07/07.
Ministry of Education Section 18: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Teacher wishes to make payment to the Ministry and to make arrangements to do so.

Salary repayment at $300/fn ceased in September 2007.

Letter dated 10/06/08 requesting repayment by TPF 55068.

Letter dated 07/08/08 requesting by TPF 55068.


Total overpaid: $44,732.09 (salary: $36,111.61, FNPF: $8,620.48) Total Recovered: $1,200.00 Fortnightly re-payment of $300.00 by the Teacher who was employed at TPAF Outstanding overpayment: $43,532.09 Note: No response to the Letters sent to the ex-teacher Salary section had taken immediate action to reverse and suspend salaries when alerted to the resignations.

Information to the Salary Section needs to be instantaneous in order to reduce OP’s.
Districts and Primary/Secondary Admin need to re-enforce requirements to Principals and HT’s.

The above cases need further investigation.

Case of 68366 – his awareness of his resignation yet he continued to utilize FTU-CTCS up until 2007!

Case of 55068 – she made arrangements to repay the OP but has stopped the repayments since September 2007.

We will follow up and try to locate the ex- teachers in an effort to recover the sums involved and if this fails we will notify the appropriate authorities.
18.10 Vehicle Mileage Exceeding 200,000 Kms Ministries and Departments vehicles should be replaced after 6 years or after it has covered 200,000 kilometres whichever is earlier.6 The following Ministry’s vehicles have exceeded the mileage of 200,000km but are still being used by the Ministry: TABLE 18.7: VEHICLES EXCEEDING THE MILEAGE OF 200,000 KMS Station Culture & Heritage CDU CDU CDU RKS RKS RKS RKS RKS QVS QVS HQ – Marela FCAE FCAE Vehicle No.
Year of Issue Closing Mileage Reading (km) 2008 Fuel Cost $ 2008 Maintenance Cost $ GM895 GM990 GM974 GN038 GM136 GM139 GM140 GM535 GM820 GN166 GM510 GM357 GL762 GM286 2002 2000 1988 1988 1997 1994 1994 1997 2001 2003 1998 1996 1991 1996 233,498 232,283 210,892 213,712 Not Working Not Working Not Working Not Working Not Working 207,804 202,702 311,081 --- --- 5,887.23 700.00 6,110.00 2,500.00 1,050.00 960.00 850.00 1,040.00 1,750.00 7,529.06 11,197.67 4,825.63 2,646.38 Garaged 6,065.18 2,000.00 2,070.98 531.62 2,665.00 2,605.00 1,040.00 2,920.00 5,350.00 4,286.76 2,853.27 6,752.74 1,836.41 3 6 Government Vehicle Policy, Cabinet Paper CP (98) 73, Section 82 (k) Ministry of Education Section 18: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Station Library Service Total Vehicle No.
Year of Issue GM207 1996 Closing Mileage Reading (km) --- 2008 Fuel Cost $ 1,196.02 48,241.99 2008 Maintenance Cost $ Garaged 40,979.26 The above table shows that the fuel costs and the maintenance costs are high for the vehicles of which mileage is above 200,000kms.

Due to lack of funds and the greater demand for transportation, the Ministry had no alternatives but to continue using these old vehicles.

Considerable savings would be made in repair and maintenance costs if these vehicles are replaced.
Recommendation The Ministry should prepare an appropriate submission to the Ministry of Finance in view of the Government’s Vehicle Replacement Policy.

Ministry’s Comments Recommendation is noted and a submission for replacement vehicles will be made in due course to Finance.

In the meantime our vehicles will continue to be used as the need is great but timely repairs and maintenance will be carried out to ensure the vehicle is safe to be used.
18.11 Monitoring Grant Assistance The recipient of the grant assistant shall prepare an acquittal report.

The acquittal report shall provide the following information:  Details of grant money expended and unexpended;  Grant objectives and targets achieved.7 The audit of the building grants records for the Western Division noted that none of the grant recipients have submitted their acquittal reports to the Ministry.

Refer to Table 18.8 below for details.
TABLE 18.8: RECEIPTS WHO FAILED TO SUBMIT THE ACQUITTAL REPORT School Names Payment Date Grant Awarded $ Conua District Nokonoko Primary Ratu Apenisa Memorial Lovu Sangam Primary Gaunavou Primary Navatu Fijian Nakoroboya Primary Natawa Indian 04/06/08 04/06/08 04/06/08 11/04/08 07/05/08 07/05/08 11/04/08 07/05/08 8,000 8,000 10,000 10,000 20,000 8,000 19,000 10,000 Inconsistent monitoring by the Asset Management Unit for the feedback or progress reports has resulted in recipients not submitting their acquittals.
Such irregularity could result in the funds being unutilised for purposes other than the approved project.

7 Section 3.3.1 – Finance Manual 2005 Ministry of Education Section 18: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendation  The Ministry should follow up with these recipients to submit their acquittals reports.
 Section 3.3.1 of the Finance Manual should be strictly complied with and disciplinary or surcharge action should be taken against those Officers who do not comply with it.

Ministry’s Comments Recommendations are noted and have written to the schools to submit acquittals and project reports.
SUVA GRAMMAR SCHOOL 18.12 Anomalies in Trust Fund Accounts Rules and Regulations for General Purpose Trust Fund state that payments from the fund shall comprise: exam fees for FJC,FSLC and Form 7; transport expenses for sick student; transport costs for educational field trips; expenses connected with social gathering and fundraising field trips;      purchase of year end prizes;  purchase of sports equipment, uniform and registration fees;  cost of printing and publishing of school magazine; any  any other expenses approved by the Permanent Secretary for Education.
Rules and Regulations for Caution Fee Trust Fund Account state that payments from the fund shall comprise refunds to the students, purchase of library and text books, equipment for schools, maintenance of furniture, equipment and any other payment approved by the Permanent Secretary for Education.

An approval has to be obtained from Permanent Secretary for Education for any other payments made from this account.
For every purchase beyond $1,000 prior approvals must be obtained from the Permanent Secretary for Education.

The following anomalies were noted during the audit of trust fund records: (i) payments were made outside the trust fund rules and regulation without the approval of the Permanent Secretary for Education for the following expenses: (a) payment of wages to labourers from the General Purpose Trust Fund.

Refer to Table 18.9 below for details.


TABLE 18.9: GENERAL PURPOSE TRUST FUND Date 08/08/08 Payee Cheq No.

8147 Part Time Workers 15/08/08 8171 Part Time Workers Details Payment of Wages for 13` Labourers w.e.f 02/08/08 – 08/08/08 Payment of Wages for 13` Labourers w.e.f 09/08/08 – 15/08/08 Amount $ 995.00 1,142.00 Ministry of Education Section 18: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date 20/08/08 22/08/08 Payee Cheq No.
8174 Solomoni B Mrs Mawi 8178 Part Time Workers 27/08/08 29/08/08 8185 Part Time Workers 8191 Part Time Workers 12/09/08 8216 Part Time Workers 08/08/08 8147 Part Time Workers Total Details Payment of Wages Payment for her mother’s reguregu Payment of Wages for 8 Labourers w.e.f 16/08/08 – 22/08/08 Payment of Wages for 4 Labourers Payment of Wages for 13` Labourers w.e.f 23/08/08 – 29/08/08 Payment of Wages for 9 Labourers w.e.f 06/09/08 – 12/09/08 Payment of Wages for 13` Labourers w.e.f 02/08/08 – 08/08/08 Amount $ 71.00 100.00 757.00 160.00 996.50 865.00 995.00 5,086.50 (b) payment of wages to Typist Assistant from the trust fund accounts.
Refer to Appendix 18.4 for details.

(c) payment of allowance of $20 per week to Ms. Filo who was on attachment with the school.

Refer to Table 18.10 below for details.

TABLE 18.10: PAYMENT OF WEEKLY ALLOWANCE FOR MS. FOLI Date Cheque No.
Payee Details Amount $ General Purpose Trust Fund 8112 01/08/08 8220 12/09/08 8230 19/09/08 8243 26/09/08 8262 03/10/08 8293 17/10/08 8309 31/10/08 8351 20/11/08 21/11/08 8365 Caution Fee Trust Fund 24/10/08 Total The Principal Ms Filo Ms Filo The Principal Ms Filo Ms Filo Ms Filo Ms Filo Ms Filo Ms Filo 4371 Payment of allowance for Week 11 & 12 Payment of allowance for Week 2 Payment of allowance.

Payment of allowance for Week 4 Payment of allowance.
Payment of allowance & financial assistance Payment of allowance Payment of allowance Payment of allowance Payment of allowance 40 20 20 20 20 70 20 20 20 20 270 (d) payment of excessive Vodafone bills for the Vodafone used by the Principal.

Refer to Appendix 18.5 for details.

(e) excessive expenditures were incurred for the official opening of the new classrooms.

Refer to Appendix 18.6 for details.


The above findings indicate that the Principal breached the rules and regulations governing the trust fund, resulting in the abuse of these trust funds.

Recommendations  The Ministry should investigate this matter and if warranted, surcharge action to be taken against the school Principal.

 Payments which are not related to the trust fund should have appropriate approval.
 Rules and Regulations of trust fund should be strictly complied with and disciplinary action taken against those Officers who fail to comply with it.

Ministry of Education Section 18: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ School’s Comments Payments made that didn’t have PSE’s prior approval.
(1) I have just assumed duties here on 18/05/09 so did not know the details especially when my predecessor has been retired and is back in his village in Nadroga.

The School Bursar who was with the Principal told me that despite being aware that they were breaching regulations, he was in a dilemma as my predecessor had told him he was the controller of finance here so he just had to follow him.
School Audit Report File revealed that my predecessor had offered the following explanation for the same in past queries.

 workers were unable to take the load thus our having a Typist Assistant and casual workers for the upkeep of the ground to keep it to OHS standard.

 work was required outside staff normal hour of work eg.

Saturdays.

 Workers couldn’t do some of the specialised work required to be done eg.

removing branches of overhanging trees, digging drains, etc.
(2) With Ms. Filo’s allowance, her explanation is attached as to what she was given the money.

(3) Regarding excessive use of Vodafone mobile and excessive expenditure on opening of classroom, only Mr. Kunagogo can reply to that.
DELAINAMASI GOVERNMENT SCHOOL 18.13 Anomalies in Trust Fund Accounts exam fees for FJC,FSLC and Form 7; transport expenses for sick student; transport costs for educational field trips; expenses connected with social gathering and fundraising field trips; Rules and Regulations for General Purpose Trust Fund state that payments from the fund shall comprise:      purchase of year end prizes;  purchase of sports equipment, uniform and registration fees;   cost of printing and publishing of school magazine; any other expenses approved by the Permanent Secretary for Education.
Rules and Regulations for Caution Fee Trust Fund Account state that payments from the fund shall comprise: refunds to the students;   purchase of library and text books, equipment for schools;  maintenance of furniture, equipment;  any other payment approved by the Permanent Secretary for Education.

An approval has to be obtained from Permanent Secretary for Education for any other payments made from this account.
For every purchase beyond $1,000 prior approvals must be obtained from the Permanent Secretary for Education.

Ministry of Education Section 18: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Payments from the trust fund account were made outside the trust fund rules and regulation without the approval of the Permanent Secretary for Education.

Refer to Table 18.11 below for details.


TABLE 18.11: GENERAL PURPOSE TRUST FUND Date 25/01/08 01/05/08 08/02/08 18/02/08 22/02/08 29/02/08 07/03/08 14/03/08 20/03/08 27/03/08 28/03/08 22/04/08 20/06/08 11/07/08 01/08/08 01/08/08 08/08/08 14/08/08 20/08/08 27/11/08 28/11/08 11/12/08 Total Cheque No.
001959 001964 001968 001973 001977 001983 001986 001991 001994 001996 001999 002016 002047 002059 002073 002074 002080 002090 002093 002150 002151 002155 Payee Details Telecom Fiji Ltd Typist/Caretaker Typist/Caretaker Typist/Caretaker Typist/Caretaker Typist Titilia L Titilia L & Labourers Titilia L & Labourers Telecom Fiji Ltd Titilia L & Labourers Telecom Fiji Ltd Telecom Fiji Ltd Riteshni Devi Pleass Beverages Riteshni & Labourer Riteshni & Labourer Labourers (2) Petty Cash Petty Cash Petty Cash Petty Cash December Telephone Bill Payment of wages Payment of wages Payment of wages Payment of wages Payment of wages Payment of wages Payment of wages Payment of wages Telephone Bill Payment of wages Telephone Bill Telephone Bill Weekly wages Purchase of aqua safe Weekly wages Weekly wages Weekly wages Telecom Bill, administration Staff Party Expenses Weekly wages,etc Wages for relieving typist Amount $ 62.58 140.00 220.00 220.00 220.00 70.00 80.00 160.00 180.00 78.70 80.00 23.45 52.00 80.00 136.00 280.00 250.00 80.00 233.27 500.00 200.00 100.00 3,446.00 The current Head Teacher and the Bursar revealed that the former Head Teacher rarely discussed these purchases during the Teacher’s meeting.
Other anomalies noted were as follows:  The school was paying a monthly bank transfer of $39.96 in the name of the former Head Teacher, Mt.

Luke Tunabuna to Unwired Fiji Limited for the use of the unwired internet network.

The Bursar confirmed that this internet service was solely used by the former Head Teacher.

 A payment of $100 a month was paid to the former Head Teacher from the General Purpose Trust Fund for being refund for transportation costs.
Audit was not able to authenticate these payments as no record was maintained for the trips made.

As at 31/12/08, a total of $1,000 was paid to the former Head Teacher.

 The former Head Teacher purchased 100 sweaters valued at $2,000 from Quality Sports Manufacturing Company Ltd without the approval of the Parents Teachers Association and the school teachers.

These were met from the General Purpose Trust Fund account.

The audit noted that 4 cartons of sweaters are still left to be sold.
Refer below for illustration.

Ministry of Education Section 18: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 4 cartons of unused sweaters The audit findings indicate abuse and breach of rules and regulations governing trust fund by the former Head Teacher.

Recommendations  The Ministry should investigate this matter and if warranted surcharge action should be instigated against the former Head Teacher.
 Payments which are not related to the trust fund should have appropriate approval.

 Rules and Regulations of trust fund should be strictly complied with and disciplinary action taken against those Officers who fail to comply with it.
School’s Comments There were no approvals obtained for the corresponding expenses from trust fund which were outside the guidelines and we could not obtain an explanation from the previous Head Teacher who has since retired, however from explanations obtained from the Assistant Head Teacher there was an urgent need to employ an additional typist to type out exam papers as there was a huge backlog and they were nearing the examination times and also for the caretakers and laborers who were also employed to clean up the school and compound.
All these came from PTA funds.

Other anomalies are noted and queried upon and we were told that that the former Head Teacher had approved all of these himself.

The sweaters are still kept in the school and because they have the school logos it was suggested that they become part of the uniform code and will be sold at $10 each to interested parents.

Recommendations are noted, the clerical assistant is now been paid by PTA.
18.14 Parents and Teachers Association (PTA) Account Income generated, donated or granted to the school should be deposited into the General Purpose Trust Fund Account.8 The school has a separate Parents Teacher Association account where students pay $50 per annum as PTA levy to replace any fundraising activity organised by the school.

No written evidence was provided that the Ministry of Education had approved the levy.
The following anomalies were noted for the PTA account:  The account has been non-operational since 2006.

Bank balance was $36,822.57 as at 31/12/08.

 There has been no PTA annual general meeting held since 2006.

 Funds collected for this account were receipted and deposited into the General Purpose Trust Fund Account.

8 School Trust Fund Account Regulations of 14/12/95 - General Conditions.
Ministry of Education Section 18: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  No bank reconciliations carried out since 2006.

The above findings indicate poor financial management practices by the former Head Teacher.

Recommendations  Rules and guidelines of the usage of such fund should be strictly complied with at all times.

 Monthly PTA bank reconciliations should be carried out regularly.
School’s Comments The PTA was formed in 2001 and has been defunct since 2006 thus the PTA of $10.00 per annum had been deposited into the school’s General Purpose Trust Fund Account and was used by the Head Teacher and since the PTA levy is incorporated into the school fees thus it would have had the approval of the Permanent Secretary for Education then.
Shown below is the fees structure for the school:- Admission Fees T1 T2 T3 PTA Levy - $45 per annum (New Students) - $20 - $20 - $10 - $10 per annum per family The recommendation has been noted.

The PTA has been reactivated from 2009 and proper handling of the funds will be ensured and monthly bank reconciliations will be done henceforth.
18.15 Missing Item When any officer (Outgoing officer) hands over responsibility for public stores to another officer (incoming officer), both the incoming and outgoing officers shall jointly verify that the public stores shown in the inventory, ledger, tally cards or other records are present and if no discrepancies are found, both officers will sign a handing-over statement in triplicate.

Two (2) Tabua valued at $440 are missing from the school.
It was confirmed on 8/4/09 by the new Head Teacher that the items were not handed over to him by the former Head Teacher.

Proper handing over by the former Head Teacher was not conducted as a result the Tabuas could not be located.

Recommendation The school should make an effort to communicate with the former Head Teacher to retrieve the Tabuas and other items not handed over.
School’s Comments The previous Head Teacher has since retired and all avenues have been covered in trying to get an explanation from him about the missing items.

The present head teacher has been advised to enter such items in the inventory ledger and such stores be kept in a safe place.
Ministry of Education Section 18: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ FIJI COLLEGE OF ADVANCED EDUCATION 18.16 Unserviceable Vehicle It is the responsibility of the Head of Department to ensure that board of survey are convened in respect of unserviceable vehicles, which should be promptly disposed of by auction or otherwise instead of leaving them to deteriorate in department yards.
The surveys are to be arranged with the Controller of Government supplies.

The vehicle GM286 has not been utilised since 2005.

Numerous letters were written to the Ministry for the trade-in of this vehicle to facilitate the purchase of a new vehicle as approved by the Minister for Finance on 11/02/05 but to no avail.

This issue has been reported in the previous audit memorandums, yet no action taken by the Ministry.
The vehicle is exposed to extreme weather condition which will further deteriorate its condition, and subsequently reduce its trade-in value.

Recommendation The Ministry should trade-in the vehicle GM286 to facilitate the purchase of a new vehicle for the College.

College’s Comments The GM286 which was approved by Ministry of Finance to be replaced (11/2/05) and still needs to be traded in to facilitate the purchase of the new vehicle for the College.
The Form 7 Principal and the Permanent Secretary for Education are still negotiating the transfer of this vehicle.
NASINU SECONDARY SCHOOL 18.17 Abuse of Vehicle by the Principal Vehicles must only be used for official purposes unless approved in writing by the Deputy CEO or permitted under an officer’s term of employment.9 In addition, officers using official vehicles for unauthorized purposes will be surcharged an appropriate amount and disciplined.10 Each driver must keep daily running sheets to record details of each run undertaken in any of the agency’s vehicles.
The running sheet shall document the details such as date and mileage at the start of the day, and runs during the day and reasons for each run.11 The distance between Suva and Nausori was 18 km and the distance between Suva and Nasinu is approximately 8 km12.

The following irregularities in the usage of vehicle GM 725 by the former Principal:  The running sheets and the log books for the vehicle were not properly maintained.
Refer below for details:  reason for journey not stated 9 Section 12.3.1 – Finance Manual 2005 10 Finance Circular 02/2000 dated 14/01/00 11 Section 12.3.4 – Finance Manual 2005 12 PSC Circular 9/2000 Ministry of Education Section 18: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________    driver’s signature missing fuel and maintenance records not entered individual trip mileage not entered  excessive mileage entered for the trips made when compared to the distance between Suva and Nasinu which is approximately 8 kms.
Refer to Appendix 18.7 for details.

 Running sheets for days between the two mentioned dates in the table below were not provided to audit for verification.

This indicates that mileages for the trips on these days were not accounted for.

Refer to Table 18.12 below for details.
TABLE 18.12: UNACCOUNTED MILEAGES Date 16/01/08 22/01/08 05/02/08 28/03/08 03/04/08 09/04/08 10/04/08 26/04/08 10/07/08 23/07/08 24/07/08 28/07/08 30/07/08 31/07/08 26/08/08 04/09/08 Total Meter reading at Finish (Km) 152256 152326 152599 153266 153299 153413 153439 153697 154291 154408 154428 154449 154465 154474 154556 154636 Date 22/01/08 24/01/08 12/02/08 03/04/08 09/04/08 10/04/08 14/04/08 09/07/08 22/07/08 24/07/08 28/07/08 30/07/08 31/07/08 06/08/08 04/09/08 05/09/08 Meter reading at start of the day (Km) 152306 152548 152796 153299 153370 153417 153457 154224 154358 154411 154437 154454 154467 154487 154636 154637 Variances (Km) Rate per KM/M $ Total Cost $ The vehicle quarterly returns were neither prepared nor submitted to Ministry of Finance.
The above indicates breach of rules and regulations governing the usage and maintenance of vehicles, resulting in the abuse of vehicles as mentioned above.

This issue has been previously reported in the audit memorandums where the vehicles were misused by the former Principal; however, no action was taken by the Ministry.

Recommendations  Surcharge action should be taken against the former Principal for the unaccounted mileages.
 Rules and Regulations governing vehicles should be strictly complied with and disciplinary action taken against those who do not comply with it.
School’s Comments It was not possible for that matter for running sheets to be filled for the period since there was no assigned driver to be in charge for the vehicle and thus Principal has to take charge of the vehicle responsibilities, even vehicle registration and vehicle servicing had to be carried out by the former Principal with the absence of proper personnel to take care of the school vehicle.
Ministry of Education Section 18: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 18.18 Urgent Maintenance of Boys’ Dormitory Every employer shall ensure the health and safety at work of all his or her employees.

Moreover, employees are not exposed to risks to their health or safety while they are at his/her workplace.
Employers are to provide and maintain a working environment that is safe and without risks to health and adequate as regards to facilities for their welfare at work.13 The student’s living environment (dormitory) is in a poor condition and is not in compliance with the OHS regulations.

Refer below for details.

 The toilets and bathrooms facilities were not in a good state.

 Sink water knobs had not been working for a while resulting in overflowing of water in the corridor.
 Three boys dormitory were in a dilapidated state, resulting in the non-occupation of the dormitory.

This was directed by the school management.

Washroom water knob over flowing of water in the sink Flooded hallway Boys’ bathroom Room/Cube 4 damaged ceiling Room/Cube 4 damaged floor The last maintenance of the school was carried out in 2003.
The students are accommodated under very unhealthy environment and the environment exposes the Ministry to lawsuits and penalties for non-compliance with the OHS Act.

Recommendation  The School should ensure that a safe living environment is provided to students.

 OHS regulations should be strictly complied with.
13 Occupational Health & Safety at Work Act, Section 9 & 10 Ministry of Education Section 18: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ School’s Comments After the visit from the Audit Team, the school has taken steps to rectify the situation.

PWD Maintenance Team have visited the school, minor repairs have been carried out and we are liaising with the ministry officials for a proper maintenance to be carried out in the school.
QUEEN VICTORIA SCHOOL 18.19 Poor State of Student’s Dining Hall Every employer shall ensure the health and safety at work of all his or her employees.

Moreover, employees are not exposed to risks to their health or safety while they are at his/her workplace.
Employers are to provide and maintain a working environment that is safe and without risks to health and adequate as regards to facilities for their welfare at work.14 The student’s dining hall is in a very poor state and is not in compliance with the OHS regulations.

Refer below for details.

 Entrance door could not be locked.

 Unhealthy state of the dining hall tables.

 Deteriorating ceiling.

 Broken dining hall floor tiles.

 Broken louvers and ceiling.


 Non conducive state outside dining hall.

Refer to the photographic illustrations below.
Unlock door Poor state of dining room Deteriorating ceiling Broken tiles in dining hall Broken louvers and ceiling Filthy state outside the dining hall 14 Occupational Health & Safety at Work Act, Section 9 & 10 Ministry of Education Section 18: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The current state of the dining hall is not conducive to healthy living and will affect the students’ health and exposes the Ministry to lawsuits and penalties for non-compliance with the OHS Act.
Recommendations  The School should ensure that a safe dining environment is provided to students.

 OHS regulations should be strictly complied with.

School’s Comments The school has done its best for the maintaining of the dining hall and ensuring that its surrounding environment are safe for the students.

But, the present dining hall is in dire need for major repairs and maintenance.
The school has made submissions of reports and proposal for a new dining hall and kitchen complex and is still awaiting assistance.

For further clarifications, please do not hesitate to contact the undersigned.

RATU KADAVULEVU SCHOOL 18.20 Poor State of the Kitchen Every employer shall ensure the health and safety at work of all his or her employees.

Moreover, employees are not exposed to risks to their health or safety while they are at his/her workplace.
Employers are to provide and maintain a working environment that is safe and without risks to health and adequate as regards to facilities for their welfare at work.15 The school’s kitchen is in a poor state and is not in compliance with the OHS regulations.

Refer to the illustration below.

Uncovered food in the kitchen filthy state of the cooking area It was also noted that the food were left uncovered and the food items were left open in the storeroom.
Food preparation is done in a very unhygienic environment which will affect students’ health and exposes the Ministry to lawsuits and penalties for non-compliance with the OHS Act.

Recommendations  The School should ensure that the kitchen is kept safe and clean.

 OHS regulations should be strictly complied with.
15 Occupational Health & Safety at Work Act, Section 9 & 10 Ministry of Education Section 18: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ School’s Comments The school will look for funds to cater for this.

We will also try to negotiate with OHS Committee for available avenues which may help and improve the poor state of our kitchen.
DIVISIONAL EDUCATION OFFICE – NORTHERN 18.21 Anomalies in Building Grant Awards Eighty percent of an approved grant will be paid into the account of the Controlling Authority on receipt of written confirmation from the Controlling Authority that site works have begun.
A second and final payment of 20% of the approved grant will normally be made on production of a completion certificate signed by the rural local authority.16 Prior to the payment of 80% of the grant, the school’s controlling authority must: i) ii) iii) confirm that site works have begun; undertake to complete the building from the time the first instalment of the grant is paid.
(If this is not possible due to some unforeseen circumstances, an application will be made to the Chief Executive Officer for extension.)

have sufficient funds on hand to complete the approved project once the initial 80% of the grant has been made.

In addition, Projects shall normally be completed within 6 months of the payment of the first installment of the grant.

(If this is not possible due to unforeseen circumstances, an application will be made to the Ministry to extend this period).
The following anomalies were noted during the audit of assistance provided to a sample of projects approved by the Capital Projects Committee, headed by the Deputy Secretary.

(1) Naduri District School The school was awarded a building grant of $10,000 for the upgrading works on the main school building.

100% of the grant was paid to the school on 07/05/08.

Contrary to the above regulations, audit noted the following:     Instead of initial 80%, 100% of the grant was paid to the school.
No acquittal report was prepared by the school.

The project was not monitored by the Head Teacher.

The Project contractor is unknown as inadequate records were provided in the school file kept at the Divisional Office and the Headquarters.

(2) Duavata District School A building grant of $3,000 was awarded to the school for the purchase of double bunks.

100% of the grant was paid to the school on 17/06/08.

16 Building Grants Regulation 1995 (Revised).


Ministry of Education Section 18: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ There was no record of project acquittal report in the school file.

(3) Navatu Junior Secondary School The school was awarded a building grant of $49,000 for the construction of a Science Lab and 1 x 2 teacher’s quarter of which 80% ($39,200) of the approved grant was paid on 08/11/06.
Prior to this project, the school was also awarded a building grant of $23,000 for the construction of the boy’s new hostel of which 80% ($18,400) was paid on 06/11/06.

The other 20% grant is still outstanding and could not be paid to the school as no completion certificate was provided.

During a site visit on 29/1/09 it was noted that since 2006, the teacher’s quarter was only 80% completed.

Refer to the pictures below.


Incomplete Teacher’s Quarters Backyard where pieces of wood are lying Front yard of the quarters It was revealed by the school Manager that the grants were also used for other urgent school needs and were replaced by student fundraising activities.

This indicates that the extra financial burden was imposed on the parents in order to complete the project.

Despite the replacement of the funds used, the teacher’s quarter remained incomplete.
(4) Naruwai Village Kindergarten The school was awarded a building grant of $3,000 for the upgrading of school facilities such as classroom and toilet.

The audit could not ascertain when and how much of the approved grant was actually paid to the school as the school file could not be located at the Headquarters.

(5) Bua Central College In 2005, the college was awarded a building grant of $60,000 for the construction of a new hostel of which 80% ($48,000) was paid on 05/05/05.
On 16/03/09, the new Principal, Mr. Nemani, through a phone conversation confirmed that the project has been 90% since 2005.

It was also revealed that no proper handing over was done by the former Principal for this project.

There have been indicate blatant disregard of Building Grant Regulations and lack of coordination between the Asset Management Unit of the Ministry and the Divisional Education Offices.

As a consequence funds were exhausted while the projects have remained incomplete.
Ministry of Education Section 18: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Furthermore, there was no evidence of any contribution from the schools which contradicts the undertaking by the school (that they had funds to complete the project) prior to the payment of grants.

This has delayed the payment of the remaining balance of the grant.

Recommendations  Building grant regulation should be strictly complied with.
 The Ministry should carry out proper assessments and costing to ensure that schools have sufficient funds to complete the projects prior to the payment of grants.

 Surcharge actions should be taken against officers responsible for releasing funds without meeting the criteria as grants have not been acquitted or used for intended purposes.
 The Ministry should ensure that necessary documents such as building plans, completion dates, progress reports, and completion certificates are made available for audit purposes.

School’s Comments Bua Central College The work on the new hostel is 99% completed.

The Military engineers are currently working on the project.

The new dorm will be completed once electricity and water is installed.

It shall be done this week and the handing over certificate will be given by the engineers this week.
The Principal will write a complete report with all documents attached once the handing over is done.

This will be completed by 26th June, 2009.

Navatu Junior Secondary School Science Lab and Teachers Quarters The Science Laboratory is currently in use after it was officially opened in 2007.

The teacher’s quarters is completed and is currently occupied after the approval of the Health Inspector.

The Ministry of Health is yet to forward the completion certificate after his approval first.
Girls New Dormitory The school was initially given $23,000.00 to complete the girl’s dormitory which was not sufficient to complete the project fully.

The school management ventured on and completed the project worth $65,000.00 in total cost.

The project was completed at the end of 2006 and the completion certificate was forwarded to the Ministry (AMU).

Naduri District School The school was given $10,000.00 for the upgrading work.

RFMF engineers were the contractor.


The project began on 19th August 2008 and completed on 16th September 2008.

Total Grant used Balance of Grant in the Development Account - - $9,588.04 $152.91 Part of the fund of $259.95 was used by the management for the cartage of building materials from Labasa to Naduri District School.

The management paid $1,000.00 to the RFMF engineers for the work done and also to assist in their meals.
Please also note that their project monitoring report was submitted to the office monthly.

Duavata District School The above school was awarded $3,000.00 for the purchase of 40 single beds at Home Furnishing Builders Hardware on 28/08/09.

On 29/09/08 40 beds was delivered to Duavata District School.
Ministry of Education Section 18: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Financial Report Cost of beds Transport Labasa/Lakeba Transport Lakeba/Duavata Total - - - - $2,320.00 $300.00 $400.00 $3,020.00 Naruwai Village Kindergarden The above kindergarten received $3,000.00 for the upgrading of school facilities and toilet.

The school committee has built a new classroom with a total cost of $6,000.00.
The remaining $3,000.00 was given by the management.

At the moment they have finished with the foundation and frame of the house and it will be completed in two weeks time.

They have also attached their financial report and all the invoices used.
Ministry of Education Section 18: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 18.1: Statement of Output Costs Portfolio Leadership Policy Advice and Secretariat Support 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 21,781,836 723,015 153,645 545,866 1,005,229 32,657,691 186,126 57,053,408 --- --- --- --- 21,348,986 764,459 142,586 484,753 842,263 31,549,078 220,867 55,352,993 --- 16,715 --- 16,715 Value Added Tax 308,470 3,017,515 TOTAL EXPENDITURE 57,361,878 58,387,223 Education and Training Early Childhood Education 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 603,494 80,068 16,414 32,303 138,656 2,173,514 107,293 3,151,742 --- --- --- --- 663,875 83,620 17,023 30,175 116,401 2,141,929 42,130 3,095,153 --- --- 99,973 99,973 Value Added Tax 35,761 119,153 TOTAL EXPENDITURE 3,187,503 3,314,279 Ministry of Education Section
 18: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Education and Training Primary Schools 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures Value Added Tax
 2008 $ 2007 $ 100,821,887 191,655 249,890 44,498 506,406 7,004,989 179,601 108,998,926 101,523,859 186,093 277,317 42,949 436,340 6,259,197 199,595 108,925,350 --- --- 499,148 499,148 --- --- 396,361 396,361 110,686 12,833,269 TOTAL EXPENDITURE 109,608,760 122,154,980 Education and Training Secondary Schools 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 75,165,727 1,359,212 181,663 257,726 1,840,219 10,456,842 9,270 89,270,659 73,879,392 1,384,147 148,236 249,538 1,661,201 9,986,155 9,783 87,318,452 1,517,285 --- 1,245,258 2,762,543 1,037,536 13,364 1,155,689 2,206,589 Value Added Tax 292,004 10,902,156 TOTAL EXPENDITURE 92,325,206 100,427,197 Ministry of Education Section 18: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Education and Training Tertiary Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $
 433,101 13,721 11,210 30,508 43,246 2,036,953 9,270 2,578,009 455,339 12,635 8,885 26,557 41,751 2,009,530 9,783 2,564,480 166,503 --- 4,353,991 4,520,494 200,000 --- 3,391,000 3,591,000 Value Added Tax 10,491 69,369 TOTAL EXPENDITURE 7,108,994 6,224,849 Provision of Library Services to Schools 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total
 Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 341,073 71,986 12,796 35,845 140,850 1,578,685 9,270 2,190,505 365,038 60,836 12,260 30,544 141,051 1,541,930 9,783 2,161,442 --- --- --- --- --- --- --- --- Value Added Tax 23,132 77,439 TOTAL EXPENDITURE 2,213,637 2,238,881 Ministry of Education Section 18: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Consulting Services Advisory Services to School 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 719,578 54,379 30,122 30,684 170,137 1,670,339 9,270 2,684,509 728,106 57,495 16,778 28,930 163,706 1,635,450 9,783 2,640,248 --- --- --- --- --- --- --- --- Value Added Tax 26,851 125,600 TOTAL EXPENDITURE 2,711,360 2,765,848 Consulting Services Student Careers Counselling 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases
 Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 225,361 29,770 10,278 30,722 63,435 1,670,339 9,270 2,039,175 238,577 25,324 9,483 26,392 61,293 1,635,450 9,783 2,006,302 --- --- --- --- --- --- --- --- Value Added Tax 12,566 46,357 TOTAL EXPENDITURE 2,051,741 2,052,659 Ministry of Education Section 18: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ External Examination Services 2008 Description EXPENDITURE Operating Costs
 Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 527,021 20,534 15,546 30,487 929,819 1,578,685 9,270 3,111,362 581,710 18,563 15,983 26,931 724,652 1,541,930 9,783 2,919,552 --- --- --- --- --- --- --- --- Value Added Tax 85,599 172,345 TOTAL EXPENDITURE 3,196,961 3,091,897 Education and Training Special Schools 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 1,679,499 4,107 12,136 29,619 191,952 2,014,985 9,270 3,941,568 1,751,819 3,713 12,894 25,877 156,066 1,921,058 9,783 3,881,210 --- --- --- --- --- --- --- --- Value Added Tax 21,497 413,683 TOTAL EXPENDITURE 3,963,065 4,294,893 Ministry of Education Section 18: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Education & Training Primary Schools Radio Broadcasts 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance &
 Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 225,238 10,053 7,946 28,853 27,766 1,578,685 9,270 1,887,811 238,577 10,190 8,455 25,504 26,675 1,541,930 9,783 1,861,114 --- --- --- --- --- --- --- --- Value Added Tax 7,507 39,898 TOTAL EXPENDITURE 1,895,318 1,901,012 Education & Training Secondary Schools Radio Broadcasts
 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 130,158 10,053 4,816 27,380 27,278 1,578,685 9,270 1,787,640 135,956 10,190 5,317 24,386 26,104 1,541,930 9,783 1,753,666 --- --- --- --- --- --- --- --- Value Added Tax 6,789 26,467 TOTAL EXPENDITURE 1,794,429 1,780,133 Ministry of Education Section 18: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Indigenous Development Education Support 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 266,935 13,103 6,971 28,527 64,170 1,670,339 9,270 2,059,315 336,822 --- --- 336,822 265,220 11,876 6,418 24,998 71,869 1,635,450 9,783 2,025,614 221,944 --- --- 221,944 Value Added Tax 41,416 43,286 TOTAL EXPENDITURE 2,437,553 2,290,844 Preservation of National and Cultural Heritage 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff
 Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures Value Added Tax TOTAL EXPENDITURE 2008 $ 2007 $ 149,343 4,118 9,195 8,538 17,077 92,814 --- 281,085 88,889 --- --- 88,889 15,203 385,177 --- --- --- --- --- --- --- --- --- --- --- --- --- --- Ministry of Education Section 18: Page 32 REPORT OF THE
 AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Cultural Enhancement Programme 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures Value Added Tax TOTAL EXPENDITURE 2008 $ 2007 $ 149,343 4,118 9,195 8,538 17,077 552,189 --- 740,460 --- --- 147,000 147,000 4,275 891,735 --- --- --- --- --- --- --- --- --- --- --- --- --- --- Appendix 18.2: Outstanding Salary Overpayments from 1988 to 2008 Year 1988 1992 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total Outstanding Overpayments $ 458.88 4,338.84 3,489.43 8,742.11 873.13 1,348.55 4,125.13 4,301.11 37,285.94 16,090.04 16,738.84 5,335.10 53,753.49 24,771.71 37,970.60 224,946.04 213,226.37 657,795.31 Ministry of Education Section 18: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 18.3: Salary Overpayments in 2008 due to Resignations and Leave Without Pay Name TPF No.
Gross Overpayment $ Reason Shashi.

A. Ram 81372 959.22 Resign wef 31/12/07 Salary cessation wef 01/01/08 Akuila Robanakadavu 68691 13,072.42 Resign wef 26/02/07 Raijieli Talei Kamini.

L. Sharan Julia Razia Bibi Avinesh Prasad Sofia L Sing Virendra Prasad Praneel Prakash Herbert Hazelman 69324 65923 69023 68610 80275 82160 82040 69778 68561 Rukshana.

J. Khan 66452 Salary cessation wef 15/01/08.


No record of resignation letter in the TPF file 82.28 Excessive compassionate leave 971.38 Resign wef 20/01/08 Salary cessation wef 11/02/08.

186.64 No forwarding address in the TPF file 219.44 Resign wef 08/02/08 Salary cessation wef 26/02/08 162.36 Resigned wef 20/02/08 Salary cessation on 11/03/08 1,246.96 Resign wef 21/01/08 Salary cessation 27/03/08 121.73 Resigned wef 18/01/08 Salary cessation wef 21/01/08 380.80 Leave without pay wef 07/04/08.
Cessation wef 22/04/08 128.61 Deemed resignation.

Officer not reporting for duties.

Letters written to the officer on 08/05/08 and 04/06/08.

929.16 Officer went on LWOP but later submitted Resignation wef 21/02/08 Marie-Lois Nakaora 81262 722.99 Resigned wef 11/02/08.

Lele Nawalowalo Fay Volatabu Shyam Narayan Naboutuiloma Komaisavai Ponipate Kabu Lucy Nina Savu 62403 56511 42938 80431 66182 55068 Salary cessation on 25/03/08.
Overpayment deducted at $1/fn wef pay 13/08 from TPF 07852 (father of the officer).

357.51 Resigned wef 18/05/08.

Salary cessation wef 20/05/08.

Letters written to the officer.

5,842.52 Study Leave without Pay wef 21/01/08.

Salary cessation wef 06/05/08 1,909.34 Resigned wef 04/12/07 Salary cessation wef 19/11/07 14,292.24 Resigned wef 18/10/05 Salary cessation wef 15/07/06.

162.36 Resigned wef 16/05/08 Salary cessation wef 20/05/08.

44,732.09 Resign wef 25/01/05.


Late notification of resignation on 16/07/07.

Chandra K Prasad 68458 38.09 Resigned wef 22/09/08 Kamal Gounder Ashok Kumar Mikaele Ratusili 68366 81138 65535 Salary cessation wef 23/09/087 43,669.53 Resign wef 26/08/05 Cessation wef 21/10/08 54.80 Resigned wef 30/06/08 Salary cessation wef 01/107/08 243.63 Resigned on 13/05/08.

Salary cessation on 19/06/08.

Shree Radhie Kumar 80253 105.83 Resigned wef 16/12/08 Salary cessation on 18/12/08.
Michael Dayal 81603 331.47 Resigned wef 21/07/08 Salary cessation on 29/07/08.

Ministry of Education Section 18: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Name Total Reason TPF No.

Gross Overpayment $ 130,923.40 Appendix 18.4: Payment of Wages to Typist Assistants General Purpose Trust Fund Date 01/08/08 Cheque No.
8110 Payee Luisa A 08/08/08 8144 Luisa A 29/08/08 8190 Luisa A 05/12/08 8394 15/12/08 19/12/08 Total 8403 8408 Naomi T (recruited during the school holidays to assist the Typist and General Assistant) Naomi T Naomi T Details Amount $ Payment of wages for general assistant w.e.f 28/07/08 – 01/08/08 Payment of wages for general assistant w.e.f 04/08/08 – 08/08/08 Payment of wages for general assistant w.e.f 25/08/08 – 29/08/08 Payment of wages for general assistant w.e.f 01/12/08 – 05/12/08 Payment of wages for general assistant Payment of wages for general assistant 100 100 100 60 50 60 470 Caution Fee Trust Fund Date 15/08/08 Cheque No.
4334 Payee Luisa A 22/08/08 4335 Luisa A 05/09/08 4337 Luisa A 12/09/08 4340 Luisa A 19/09/08 4349 Luisa A 26/09/08 4353 Luisa A 03/10/08 4357 Luisa A 09/10/08 4360 Luisa A 17/10/08 4366 Luisa A 24/10/08 4368 Luisa A 07/11/08 4388 Luisa A 14/11/08 4388 Luisa A 21/11/08 4399 Luisa A 28/11/08 4411 Luisa A Ministry of Education Details Amount $ Payment of wages for general assistant w.e.f 11/08/08 – 15/08/08 Payment of wages for general assistant w.e.f 18/08/08 – 22/08/08 Payment of wages for general assistant w.e.f 01/09/08 – 05/09/08 Payment of wages for general assistant w.e.f 01/09/08 – 05/09/08 Payment of wages for general assistant w.e.f 15/09/08 – 19/09/08 Payment of wages for general assistant w.e.f 22/09/08 – 26/09/08 Payment of wages for general assistant w.e.f 29/09/08 – 03/10/08 Payment of wages for general assistant w.e.f 06/10/08 – 10/10/08 Payment of wages for general assistant w.e.f 06/10/08 – 10/10/08 Payment of wages for general assistant w.e.f 20/10/08 – 24/10/08 Payment of wages for general assistant w.e.f 03/11/08 – 07/11/08 Payment of wages for general assistant w.e.f 03/11/08 – 07/11/08 Payment of wages for general assistant w.e.f 10/11/08 – 14 11/08 Payment of wages for general assistant w.e.f 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Section 18: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Cheque No.
Payee Details 05/12/08 4429 Luisa A 08/12/08 4438 Luisa A 19/12/08 4448 Luisa A 24/12/08 4452 Luisa A Total 24/11/08 – 28/11/08 Payment of wages for general assistant w.e.f 01/12/08 – 05/12/08 Payment of wages for general assistant w.e.f 08/12/08 – 12/12/08 Payment of wages for general assistant w.e.f 15/12/08 – 19/12/08 Payment of wages for general assistant w.e.f 22/12/08 – 26212/08 Appendix 18.5: Payment of Vodafone Bills General Purpose Trust Fund Payee Details Date 20/03/07 27/06/07 16/04/08 15/05/09 26/08/08 Cheque No.
7484 7322 7807 7882 8183 Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd 22/09/08 8235 Vodafone Fiji Ltd 23/10/08 4375 Vodafone Fiji Ltd 20/11/08 8352 Vodafone Fiji Ltd 21/11/08 Total 8365 The Principal Caution Fee Trust Fund Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills for the month of July Payment of Vodafone bills for the month of Sept Payment of Vodafone bills for the month of Oct Payment of Vodafone bills for the month of Nov Repair of school’s Vodafone Amount $ 100 100 100 100 1,800 Amount $ 72.27 282.00 195.20 234.27 229.41 328.80 229.44 318.23 44.00 1,933.62 Date 22/01/07 21/02/07 13/04/07 15/05/07 14/06/07 16/07/07 16/07/07 13/08/07 13/09/07 15/10/07 20/11/07 19/12/07 24/01/08 18/02/08 19/03/08 17/06/08 21/07/08 Cheque No.
3373 3467 3774 3823 3892 3965 3966 4004 4025 4060 3518 3580 3642 4119 4203 4292 4327 Ministry of Education Payee Details Amount Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Vodafone Fiji Ltd Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills Payment of Vodafone bills $ 104.33 81.51 75.65 100.67 119.25 127.55 282.00 153.19 160.29 121.35 114.09 93.68 150.89 203.15 143.87 207.99 201.77 Section 18: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Total Cheque No.
Payee Details Amount $ 2,441.23 Appendix 18.6: Excessive Expenditures – Opening of a Classroom General Purpose Trust Fund Payee Details Date 01/10/08 02/10/08 03/10/08 Cheque No.
8255 8257 8259 The Principal The Principal The Principal 03/10/08 8260 The Principal 06/10/08 17/10/08 8267 8291 Premium Kava Salote 21/10/08 8298 Mr.Gukirewa 22/10/08 8299 The Principal 23/10/08 23/10/08 8303 8304 HOD Pemac The Principal 23/10/08 Total 8305 RKS Caution Fee Trust Fund Purchase of grog for hospitality to PWD staff Purchase of tea to farewell PWD staff Purchase of tabua for presentation to the opening of classroom Purchase of yards of sulu for the official handing over of keys Purchase of grog Purchase of tabua for presentation to the opening of classroom Purchase of tabua for presentation to the opening of classroom Purchase of tabua for presentation to the opening of classroom Purchase of tea ingredients Purchase of tabua for presentation to the opening of classroom Payment for 1 pig for the magiti Date 02/10/08 24/10/08 27/10/08 27/10/08 Total Cheque No.
4356 4372 4373 4374 Payee Details The Principal Jeff Electronics Premium Kava The Principal Purchase of chief guest’s salusalu Video shooting and hire of sound system Purchase of grog Official opening expenses Amount $ 20.00 84.00 100.00 390.00 100.00 200.00 200.00 100.00 190.00 150.00 140.00 1,674.00 Amount $ 70.00 150.00 50.00 96.50 366.50 Appendix 18.7: Details of Abuse of Vehicle by the former Principal Date Journey 25/09/07 NSS to Vatuwaqa NSS to Marela NSS to Raiwaqa 01/10/07 02/10/07 NSS to Marela NSS to Raiwaqa NSS to FSM NSS to Marela Trip Mileage (Km) 55 31 14 Remarks  No reason for Journey stated  No driver’s signature.
 Individual mileage not recorded  Excessive runs.

 No driver’s signature.

 Individual mileage not recorded  Excessive runs.

 No driver’s signature.

 Individual mileage not recorded  Excessive runs.

Ministry of Education Section 18: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Journey 04/10/07 NSS to Parliament NSS to Vatuwaqa 05/10/07 NSS to Marela 09/10/07 NSS to???
12/10/07 NSS to Suva 17/10/07 NSS to Nasole then Raiwaqa 18/10/07 NSS to Nasole,Nabua then to Raiwaqa 23/10/07 NSS to Raiwaqa 31/10/07 NSS to Marela 05/11/07 NSS to Marela 06/11/07 NSS to FSM,Marela, Nadera,Valelevu 07/11/07 NSS to Selbourne St 14/11/07 NSS to FSM 26/11/07 NSS to Valelevu, Marela 26/11/07 NSS to Vatuwaqa 05/12/07 NSS to Nausori 07/01/08 NSS to Marela 09/01/08 NSS to Makoi 10/01/08 NSS to Cunningham Ministry of Education Trip Mileage (Km) 44 18 38 45 17 35 46 18 37 43 43 92 24 62 27 23 88 10 Remarks  No driver’s signature  Individual mileage not recorded  Excessive runs.
 No driver’s signature  Individual mileage not recorded  No reason for Journey stated  No driver’s signature  Excessive runs.

 No driver’s signature  Individual mileage not recorded  Excessive runs.

 No reason for Journey stated  No driver’s signature  Individual mileage not recorded  Excessive runs.

 No driver’s signature  Individual mileage not recorded  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Excessive runs.
 No driver’s signature  Individual mileage not recorded  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Individual mileage not recorded  Excessive runs.

 No driver’s signature  Individual mileage not recorded  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Excessive runs.

 No drivers signature  Individual mileage not recorded  No driver’s signature.

 Individual mileage not recorded  Excessive runs.
 No reason for Journey Stated  No driver’s signature  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Individual mileage not recorded  Excessive runs.

 No driver’s signature  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Excessive runs.
 No reason for Journey Stated  No driver’s signature Section 18: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date Journey 22/01/08 NSS to Marela 24/01/08 NSS to Marela 05/02/08 NSS to Vatuwaqa NSS to Marela 12/02/08 28/03/08 03/04/08 10/04/08 14/04/08 17/04/08 21/04/08 NSS to Marela NSS to Vinod Pate; NSS to Kasabias NSS to Suva NSS to Stadium NSS to MOE NSS to Valelevu NSS to Marela NSS to Marela NSS to USP NSS to Kalabu,Nadera,Tacirua, Walu Bay, Marela, PSC,USP NSS to Raiwai, Govt Bldg NSS to Marela 26/04/08 NSS to Stadium 09/07/08 10/07/08 NSS to Cunningham NSS to Marela NSS to Marela 22/07/08 23/07/08 07/08/08 NSS to Exam Office NSS to Ahmadiyya Muslim College, PWD Walu Bay NSS to Vatuwaqa 26/08/08 NSS to Walu Bay 09/09/08 NSS to Vatuwaqa Trip Mileage (Km) Remarks 20 30 21 368 63 19 22 85 33 86 36 33 34 19 31 27 30 20  Excessive runs.
 No driver’s signature  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Excessive runs.

 No reason for Journey Stated  No driver’s signature  Excessive runs.

 No reason for Journey Stated  No driver’s signature.

 Excessive runs.

 No driver’s signature.

 Excessive runs.

 No driver’s signature  Excessive runs.

 No driver’s signature  Excessive runs.

 Excessive runs  Excessive runs  No driver’s signature  Excessive runs.


 No reason for Journey Stated  Excessive runs.
 No reason for Journey Stated  Excessive runs  Excessive runs  Excessive runs  No driver’s signature  Excessive runs  No driver’s signature  Excessive runs  Excessive runs Ministry of Education Section 18: Page 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Section 19 Ministry of Health, Women and Social Welfare Role and Responsibilities The Ministry of Health shall provide health services with the commitment that it is the right of everyone in the Republic of Fiji, irrespective of race, sex, colour, creed, financial circumstances or poverty to have a national health system which provides a high quality health service to the maximum extend possible within the available resources.
The delivery of health services is divided into two clear distinct divisions;   the Primary Health Care Services and: the Curative (Hospital) Health Care Services.

The main objective of the Primary and Preventive Health Services is to enhance the promotion of health and well-being, protection of life and prevention of diseases, injury and substance abuse.
The main objective of the Curative (Hospital) Health Care Services is to ensure that the standardised basic diagnostic and treatment facilities for common disease problems are readily available near to where people live, are responsive to patients' needs are affordable and that they are closely integrated with community rehabilitative services to ensure continuity of patient care.

Health services are expected to change significantly over the next few years.
 Firstly, a decentralisation of the management of health services will take place under the Fiji Health Management Reform Project.

 Secondly, financing options and arrangements which may include National fees, privatisation and revision of hospital the Insurance Scheme, contractualisation.
For 2008, the Ministry continued to concentrate its efforts in human resources management and development; reorganising/ reforming of the health services; standards and quality; performance/ output based financial management system and resource allocation; Health Management Information System; health financing and cost sharing; public relations strategies and facilities development .
The Department of Women and Social Welfare shall eradicate poverty through providing welfare support to the poor, empowerment of women and gender mainstreaming and coordination of services to the disabled.

The Department has four output groups – Ministerial and Corporate Services, Social Welfare Services, Gender Development and Poverty Eradication Unit.
Table of Contents CONSOLIDATED FINANCIAL STATEMENT ............................................................................................ 4 19.1 19.2 19.3 19.4 19.5 19.6 Audit Opinion ................................................................................................................ 4 Statement of Receipts and Expenditures ..................................................................... 4 Statement of Output Costs ........................................................................................... 6 Appropriation Statement ............................................................................................... 6 Statement of Losses ..................................................................................................... 6 Trust Account – Statement of Receipts and Payments ................................................ 6 AUDIT FINDINGS – MINISTRY OF HEALTH............................................................................................ 7 FINANCIAL STATEMENT .......................................................................................................................... 7 Ministry of Health, Women and Social Welfare Section 19: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 Agency Financial Statement ......................................................................................... 7 FNPF Reconciliation ..................................................................................................... 8 VAT Reconciliation ....................................................................................................... 8 Operating Trust Fund Account...................................................................................... 9 Revolving Fund Account – Miscellaneous .................................................................. 12 Drawings Account
12 Drawings Account ....................................................................................................... 13 Trading and Manufacturing Account ........................................................................... 14 Revenue ...................................................................................................................... 15 Significant Variance in FSN Revenue ........................................................................ 15 Excess Expenditure .................................................................................................... 16 AUDIT FINDINGS – MINISTRY OF HEALTH.......................................................................................... 17 TAMAVUA TWOMEY HOSPITAL ............................................................................................................ 17 19.17 19.18 19.19 Government Quarters ................................................................................................. 17 Hospital Needs............................................................................................................ 18 Outstanding FSM Water Bills ...................................................................................... 19 SAMABULA OLD PEOPLES HOME ....................................................................................................... 20 19.20 Government Quarters ................................................................................................. 20 FIJI PHARMACEUTICAL SERVICES ...................................................................................................... 21 19.21 19.22 19.23 19.24 19.25 19.26 Pending Surcharge – Mr. Peter Zinck ........................................................................ 21 Excessive Supply of Drugs ......................................................................................... 23 Drugs and Consumables not Cleared by Quarantine ................................................. 24 Shortage of Drugs and
 Consumables ........................................................................ 24 Expired Drugs 2008 .................................................................................................... 26 Stock Discrepancy ...................................................................................................... 27 SAINT GILES HOSPITAL ........................................................................................................................ 28 19.27 19.28 19.29 19.30 Unclaimed Patients Belongings .................................................................................. 28 Patients Cash Trust Fund ........................................................................................... 29 Patients Comfort Trust Fund Accounts ....................................................................... 31 Discrepancies in Lodgement ...................................................................................... 32 COLONIAL WAR MEMORIAL HOSPITAL .............................................................................................. 34 19.31 19.32 19.33 19.34 19.35 Old and Damaged Machines and Equipments ........................................................... 34 Obsolete Medical Equipments .................................................................................... 36 No Written Agreement for Canteen Operation ........................................................... 38 Incinerator ................................................................................................................... 39 Mortuary ...................................................................................................................... 39 HEADQUARTERS ................................................................................................................................... 41 19.36 Wages Reconciliation ................................................................................................. 41 Recovery of Overtime Paid to
 Dieticians .................................................................... 42 19.37 Overpayment of Salary ............................................................................................... 43 19.38 Vacant Posts ............................................................................................................... 44 19.39 Consolidated Allowance ............................................................................................. 45 19.40 Failure to Initiate Disciplinary Action ........................................................................... 47 19.41 Pending Previous Years Disciplinary Cases .............................................................. 48 19.42 Unprofessional Conducts ............................................................................................ 52 19.43 Ministry of Health, Women and Social Welfare Section 19: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.44 19.45 19.46 19.47 19.48 19.49 19.50 19.51 Overtime Payment ...................................................................................................... 54 Failure to Instigate Disciplinary Action against the Storeman .................................... 56 Former Permanent Secretary’s Laptop ...................................................................... 58 Unaccounted Funds .................................................................................................... 58 Negligence Claims ...................................................................................................... 59 Delay in Completion of the National Ambulance Service Project ............................... 61 Current Condition of Ministry of Health’s Ambulances ............................................... 64 Misuse of Health Workers Money ............................................................................... 65 AUDIT FINDINGS – DEPARTMENT OF WOMEN AND SOCIAL WELFARE
 ........................................ 65 FINANCIAL STATEMENT ........................................................................................................................ 65 19.52 19.53 19.54 19.55 19.56 19.57 19.58 19.59 Agency Financial Statement ....................................................................................... 65 FNPF Reconciliation ................................................................................................... 66 19.53.1 Department of Social Welfare ................................................................................... 67 19.53.2 Women Affairs ........................................................................................................... 67 VAT Reconciliation ..................................................................................................... 68 Operating Trust Fund Account.................................................................................... 69 19.55.1 Department of Social Welfare ................................................................................... 69 19.55.2 Women Affairs ........................................................................................................... 70 Revolving Fund Account – Miscellaneous .................................................................. 71 19.56.1 Department of Social Welfare ................................................................................... 72 19.56.2 Women Affairs ........................................................................................................... 72 Drawings Account ....................................................................................................... 74 Annual Stocktake ........................................................................................................ 75 IDC Reconciliation ...................................................................................................... 75 AUDIT FINDINGS –
75 AUDIT FINDINGS – DEPARTMENT OF WOMEN AND SOCIAL WELFARE ........................................ 76 FAMILY ASSISTANCE (FA) .................................................................................................................... 76 19.60 19.61 19.62 19.63 19.64 19.65 19.66 19.67 Recipients with Same Bank Account .......................................................................... 76 Real and Bogus Name with Same Bank Account Number ........................................ 77 Recipients with Same Reference Number.
................................................................. 78 Recipients receiving assistance through Voucher Book and Bank Mode ................. 78 Recipients Listed Twice in Bank Listings .................................................................... 79 Non reconciliation of Cashing Agency against Voucher Listing.
................................ 80 Review of Family Assistance Recipients .................................................................... 80 Accident – GM 957 ..................................................................................................... 82 Appendix 19.1: Statement of Output Costs ............................................................................................ 84 Appendix 19.2: Details of Drugs and Consumables Held in Quarantine ............................................... 92 Appendix 19.3: Details of Expired Drugs ............................................................................................... 94 Appendix 19.4: Unclaimed Patients Belongings .................................................................................... 96 Appendix 19.5: Discrepancies in the Patients Comfort Trust Fund Account ......................................... 97 Appendix 19.6: Patients Comfort Fund –Receipts not lodged ............................................................... 98 Appendix 19.7: Overpayment of Salary ................................................................................................. 98 Appendix 19.8: Overpayment of Salary on Resignations from 2006 – 2007 ....................................... 102 Appendix 19.9: Consolidated Allowances ............................................................................................ 103 Appendix 19.10: Cases where the Disciplinary Board failed to take Action
 .......................................... 105 Appendix 19.11: Disciplinary Cases for which No Action Taken ........................................................... 106 Appendix 19.12: Overtime Claimed by Lab Technicians ....................................................................... 110 Ministry of Health, Women and Social Welfare Section 19: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 19.13: Conditions of Ambulances Maintained by the Ministry .................................. 111 Appendix 19.14: Comparison of the Number of Ambulances to the Area Population .............. 113 Appendix 19.15: Recipients Having Same Bank Account Number .......................................... 113 Appendix 19.16: Real and Bogus Name with Same Bank Account Number ............................ 116 Appendix 19.17: Recipients with Same Reference Number ..................................................... 118 Appendix 19.18: Recipients Listed Twice in Bank Listings ....................................................... 122 CONSOLIDATED FINANCIAL STATEMENT 19.1 Audit Opinion The audit of the 2008 accounts of the Ministry of Health, Women and Social Welfare resulted in the issue of a qualified audit report.
The qualifications are as follows: (a) The Ministry has prescribed its expenditures in accordance with the activities in the Budget Estimates 2008 and named them as Statements of Output Costs whereas the Budget Estimates prescribes fourteen outputs.

(b) The amounts reflected in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.
It is not possible therefore to express an opinion on the accuracy of the expenditures incurred by the Ministry under each of the outputs.

(c) A Statement of Losses and Trust Account Statement of Receipts and Payments was not submitted to audit, contrary to Section 82 (1) of the Finance Instruction.

The Financial Management Information System shows that the Ministry of Health as at 31/12/08 has Operating Trust Funds totalling $8,943,060 of which $7,495,121 or 84% represent FNPF.
In addition, the Department of Women and Social Welfare has overdrawn Operating Trust Fund balance of $43,052.

(d) A Trading and Manufacturing Accounts for the operations of the Bulk Purchase Scheme was not submitted by the Ministry.

(e) The payments of FNPF contributions and VAT could not be reconciled to the accounts.

19.2 Statement of Receipts and Expenditures The Ministry collected revenue amounting to $4,046,404 and incurred total expenditures of $162,341,458 in 2008.
Details are provided in Table 19.1 below.
Ministry of Health, Women and Social Welfare Section 19: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ TABLE 19.1: STATEMENT OF RECEIPTS AND EXPENDITURES FOR 2008 Description RECEIPTS State Revenue Operating Revenue Total State Revenue Agency Revenue Hospital Fees Funigation & Quarantine Fiji School of Nursing Total Agency Revenue 2008 $ 2007 $ 2,190,599 2,190,599 1,159,155 1,159,155 864,307 147,652 843,846 1,855,805 1,018,025 166,048 222,122 1,406,195 TOTAL REVENUE 4,046,404 2,565,350 EXPENDITURES Operating Expenditure Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure 66,347,318 12,034,017 2,492,242 8,736,043 25,591,488 22,351,021 2,334,047 139,886,176 74,184,031 16,561,485 2,899,838 8,631,264 22,437,432 24,077,399 2,034,233 150,825,682 2,253,819 2,995,402 756,232 6,005,453 3,744,529 2,070,627 2,443,859 8,259,015 Value Added Tax 16,449,829 18,281,077 TOTAL EXPENDITURE 162,341,458 177,365,774 The Ministry’s revenue increased by $1,481,054 or 58% in 2008 compared to 2007 due to:    adjustment made to stale cheques from the prior year’s by the Department of Women and Social Welfare; improvement in the collection of fees; and recovery of fees from students (FSN) graduating.
The Operating Expenditure decreased by $10,939,506 or 7% in 2008 compared to 2007 due to the:   resignations and retirement of doctors, nurses, other paramedic staffs, and strict recruiting policy with the Public Service Commission; reduction in staff establishement for Department of Women and Social Welfare; The Capital Expenditure declined by $2,253,562 or 27% in 2008 due to:  restrictions in the Ministry of Finance procedures to obtain approval (derequisition of funds) which subsequently delayed capital work.
Ministry of Health, Women and Social Welfare Section 19: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  virement of funds from Capital Grants and Transfers to procure 10 vehicles for the Department of Women and Social Welfare.

The VAT Expenditure decreased by $1,831,248 or 10% in 2008 due to the removal of VAT from SEG 1 Established Staff and SEG 2 Unestablished Staff.
19.3 Statement of Output Costs The Statement of Output Costs did not consolidate expenditures into the fourteen outputs prescribed in the Budget Estimates as required.

These are detailed in Appendix 19.1.

19.4 Appropriation Statement The Ministry of Health, Women and Social Welfare incurred expenditures totalling $162,341,458 in 2008 against the budget of $166,552,330 resulting in a savings of $4,210,872 or 2%.

Details are provided in Table 19.2.
TABLE 19.2: APPROPRIATION STATEMENT FOR 2008 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants and Transfers Total Capital Expenditure Budget Estimate $ 72,420,400 14,536,100 2,932,500 8,489,600 25,835,000 22,386,000 2,023,900 148,623,500 Changes $ (126,500) 90,000 40,504 59,764 (207,208) 2,128,140 79,167 2,063,867 Revised Estimate $ 72,293,900 14,626,100 2,973,004 8,549,364 25,627,792 24,514,140 2,103,067 150,687,367 Actual Expenditure $ 66,347,318 12,034,017 2,492,242 8,736,043 25,591,488 22,351,021 2,334,047 139,886,176 Carry – Over $ --- --- --- --- --- --- --- --- Lapsed Appropriation $ 5,946,582 2,592,083 480,762 (186,679) 36,304 2,163,119 (230,980) 10,801,191 4,012,600 3,796,100 1,550,000 9,358,700 (450,000) 1,392,071 (398,000) 544,071 3,562,600 5,188,171 1,152,000 9,902,771 2,253,819 2,995,402 756,232 6,005,453 --- --- --- --- --- --- 1,308,781 2,192,769 395,768 3,897,318 (10,487,637) 4,210,872 13 Value Added Tax 5,886,200 75,992 5,962,192 16,449,829 TOTAL EXPENDITURE 163,868,400 2,683,930 166,552,330 162,341,458 19.5 Statement of Losses The Ministry failed to submit a Statement of Losses for the financial year ended 31/12/08.
19.6 Trust Account – Statement of Receipts and Payments The Ministry also failed to submit a Trust Account – Statement of Receipts and Payments for the financial year ended 31/12/08.
Ministry of Health, Women and Social Welfare Section 19: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ AUDIT FINDINGS – MINISTRY OF HEALTH FINANCIAL STATEMENT 19.7 Agency Financial Statement The draft financial statements must be submitted to the Auditor General by 31 March in the following year, or within such other time as agreed to with the Auditor General.1 In addition, each agency must include the following statements in its annual financial statements:2 statement of receipts and expenditure; (i) statements of output costs; (ii) (iii) an appropriation statement; (iv) (v) (vi) (vii) a trust account statement of receipts and payments (where applicable) a statement of assets and liabilities; notes to the statement of assets and liabilities; a statement of losses; The Ministry submitted its financial statements for audit on 12/05/09 and were not prepared in accordance with the requirements of Section 82 and Schedule 1 of the Finance Instructions 2005.
The following discrepancies were noted:    The Ministry has grouped its expenditures into 9 Statements of Output Costs whereas the Budget Estimates prescribes 10 outputs.

The amounts in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.
It is not possible therefore to determine the accuracy of the expenditures incurred by the Ministry under each output.

The Ministry failed to provide a Statement of Losses, the Trust Fund Statement of Receipts and Payments, and the Trading and Manufacturing Account for its Bulk Purchase Scheme to audit.

The above issues will be used as basis of qualifications of the financial statements.
Recommendation The Ministry should ensure that the requirements of the Finance Instructions 81 & 82 are strictly followed in the preparation of the Financial Statements.

Ministry’s Comments No comments received.
1 Section 81 (3) – Finance Instructions 2005 2 Section 82 (1) – Finance Instructions 2005 Ministry of Health, Women and Social Welfare Section 19: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.8 FNPF Reconciliation Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.3 The current rate of contribution is 16 cents on each dollar earned, with the employer and employee each contributing 8 cents.
A reconciliation of FNPF contributions against salaries and wages reported in the Financial Statements revealed variances as follows: TABLE 19.3: VARIANCE BETWEEN FNPF RECONCILIATION AND PAYROLL EXPENDITURE Details (a) Total FNPF against salaries and wages for 2008: FNPF as per financial statement Less: December 2007 FNPF Add: December 2008 FNPF FNPF for 2008 Gross Pay subject to FNPF (FNPF 2008 / 0.08) (b) Salaries and Wages for 2008 subject to FNPF Salaries, wages and allowances as per financial statement Less: Salaries, wages and allowances for 2008 not subject to FNPF Un-reconciled Variance Amount $ 5,417,684.43 989,476.96 4,428,207.47 1,046,217.70 5,474,425.17 68,430,314.63 70,199,328.16 34,126.64 70,165,201.52 1,734,886.89 The above variance indicates that the FNPF have been underpaid.
No explanation was provided for the variance.

Recommendation The Ministry should review its FNPF records and reconciliations and provide explanations for the variances.

Ministry’s Comments No comments received.
19.9 VAT Reconciliation Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of twelve and a half percent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.4 3 Chapter 219 – Fiji National Provident Fund – Section 13 (1) 4 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – section 15 (1) Ministry of Health, Women and Social Welfare Section 19: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Output VAT is payable to the Commissioner of Inland Revenue for the supply of all goods and services with the exception of zero rated and exempted supplies.
Payments effected by government departments for goods and services are thus subjected to VAT.5 The Ministry failed to prepare VAT reconciliations for 2008.

A review of VAT Returns and supporting documents carried out during the audit revealed an un-reconciled balance of $7,379,259.80 between the taxable supplies as per VAT Return and the total income/expenditure as per the Statement of Receipts and Expenditure.
Refer to Table 19.4 below for details: TABLE 19.4: VARIANCE BETWEEN VAT RETURNS AND INCOME/EXPENDITURE AS PER FINANCIALS Details Amount $ Total expenditure/income as per Expenditure Statement Less: Expenditure not subject to VAT – SEG 1,2, 6 and 10 138,704,506.02 78,813,410.30 Total expenditure/income subject to VAT Less: Total taxable supplies as per VAT Returns Un-reconciled variance 59,891,095.72 52,511,835.92 7,379,259.80 The Ministry could have avoided the above variance had regular reconciliations were undertaken and proper supervisory controls in place.
Recommendations  The Ministry should review its VAT records and provide explanations for the variances.

 Monthly Vat reconciliations are undertaken to ensure that correct Vat payment are made to relevant authorities.

 Supervisory checks on the preparation of VAT Returns should be improved to ensure that balances reflected in the VAT Returns reconcile with the GL.
Ministry’s Comments Your findings are noted .The figures provided in this report is incorrect, we are also verifying this figure with Inland Revenue and variance in figures is not as highlighted in your report.

Vat returns were being prepared on a monthly basis and on a timely manner and the balances are reconciled with the FMIS format as set out by Ministry of Finance.

Monthly vat returns were promptly submitted to the Inland Revenue Department.
We are closely monitoring this return to ensure correct figures are submitted every month and officers analyzing this reconciliation are informed to be meticulous on this report before endorsing for submission to Ministry of Finance.

Supervisory controls were in place 19.10 Operating Trust Fund Account Trust Fund Accounts compromise monies, which are not the property of the state and not utilized for the purpose of government.
In addition, Trust money is to be accounted for separately from public money and other money,6 and by convention should always have credit balances.

Thus, the trust fund accounts should not at any time be overdrawn.7 5 Finance Circular No 9/95 6 Section 25 (1) of the Financial Management Act 7 Finance Circular No.
4/98 of 30/03/98 Ministry of Health, Women and Social Welfare Section 19: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Moreover, each month, the trust account shall be balanced and reconciled to the trust bank account.

The names and balances of each account shall be listed and the reconciliations shall be signed by the responsible officer.
Un-reconciled items should be investigated and resolved promptly.8 Each year, a statement of receipts and payments shall be prepared for audit and inclusion, when required, in the agency’s annual report.9 Audit noted the following anomalies: (1) The Ministry maintains 24 individual trust fund accounts.

As at 31/12/08, the trust fund account has a balance of $8,943,059.57.
The details are as follows: TABLE 19.5: TRUST FUND BALANCE AS AT 31/12/08 Account No 12210000000860000 12210000000890000 Total Balances $ 9,082,245.19 (139,185.62) 8,943,059.57 (2) The following trust fund accounts had overdrawn balances as at 31/12/08: TABLE 19.6: OVERDRAWN TRUST FUND ACCOUNTS Account Number Description 12210122999861202 241 PD CMLA 12210122999861521 312 PD Sacred Heart CU 12210122999861527 321 PD Fiji Dental Association 12210000000899988 Miscellaneous Fund Amount $ 387.26 125.45 8,505.73 139,669.76 The overdrawn trust fund is tantamount to unauthorised expenditures.
It indicates lack of adequate internal control and supervision and a disregard for procedures in the Finance Instructions.
(3) The Ministry is holding significant amount of money in the following trust fund accounts: TABLE 19.7: SIGNIFICANT AMOUNTS IN TRUST FUND ACCOUNT Details Account No 289 PD Fiji REG Nurses Ass 12210122999861504 Balances $ 123,686.50 293 PD Society of Hosp Pham 12210122999861507 107,072.16 Remarks  The fund balance has increased from $42,886.80 in 2007 to $123,686.50 in 2008  The Breakdown details were not provided for audit verification.
 The fund balance as at 31/12/07 amounted to $73 , however it increased significantly by $106,999.16 in 2008  The Breakdown details were not provided for audit verification.
304 PD Fiji Nursing & Ass CU 12210122999861514 1,091,847.70  The fund balance has by $656,217 increased from significantly 8 Section 69 (3) – Finance Instruction 2005 9 Finance Instructions Part 9 – 69(3) (4) 2005 Ministry of Health, Women and Social Welfare Section 19: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Details Account No Balances $ Remarks 383 PD Sundries 12210122999861910 252,258.03 501 PD Employees FNPF 12210122999861920 7,495,120.72 $435,631 in 2007 to $1,091,848 in 2008.
 No valid explanation could be obtained from the Ministry.

 The Breakdown details were not provided for audit verification.

 No movement in the balance in 2008.

 The balance has been carried forward from 2007  The source of the fund and the breakdown details are unknown.

 The significant amount of the balance from 2007 forward was carried ($6,828,218).

 Audit could not ascertain the accuracy of the amount as no breakdown details were provided by the Ministry.
 No valid explanation could be obtained this pending the Ministry for from balance.

(4) The following miscellaneous funds posted into Fund 1 without any clear definition.

TABLE 19.8: VARIANCE BETWEEN VAT RETURNS AND INCOME/EXPENDITURE AS PER FINANCIALS Account ID Description Amount $ Explanations 10810108999899988 Miscellaneous Fund 10810380101899988 Miscellaneous Fund 139,669.76 No valid explanation provided by the Ministry upon (484.14) audit query.
Without proper records, the accuracy of the trust fund account balances could not be authenticated.

Recommendations  The Ministry should ensure that the Trust Fund Account reconciliations are prepared  accurately.

It should investigate the overdrawn (debit) trust fund accounts and action taken against the officers responsible for the non-compliance with the Finance Instructions.
 Thorough review of the operating trust fund accounts should be carried out for those accounts whose balances have been carried forward from previous years without any documents available at the Ministry to substantiate the balances and take corrective actions.

Ministry’s Comments Your findings are noted and we have been trying our best to verify the real issues in the accumulated credit and overdrawn balances in this report.
In 2003 the amount in this account were mainly credit balances that has to be paid on the following month.

.

Effort in the retrieving supportive documents to substantiate TRUE and accurate balance was to no avail at all.
In the hope to salvage this area , we have engaged our Internal Inspection Team to investigate these accounts back to 2004, but they were called to carryout some urgent inspection of the other health Institutions records and this account is still pending for further verification and reconciliation of the amount highlighted as $8,943,050.

Your office will be informed of our updates in future.
Ministry of Health, Women and Social Welfare Section 19: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.11 Revolving Fund Account – Miscellaneous A ledger shall be maintained for advances and revolving fund accounts10.
With 3 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Supervisor shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.11 In addition, the Revolving Fund Account Miscellaneous by their nature should always reflect debit balances, as this account is used to record all accountable advance, dishonoured cheques, losses/thefts, surcharges and any unclaimed money.12 The Ministry maintained five Revolving fund accounts amounting to $355,989.11 as at 31/12/08.
The audit noted that the following RFA account had overdrawn balance as at 31/12/08.

TABLE 19.9: OVERDRAWN REVOLVING TRUST FUND ACCOUNT Code Accounts Description Amount $ Remarks 12210122999560201 Accounts Receivable Government Department 2,710 The balance has been carried forward from 2007.

The details were also not provided.

In addition, the Ministry is holding significant balance of funds in the following Revolving Fund Accounts.
TABLE 19.10: SIGNIFICANT AMOUNT HELD IN THE REVOLVING FUND ACCOUNTS Details Account Number Balance $ Remarks Account Receivable 12210122999560203 69,378.09 The Breakdown details were not provided for audit Surcharges 12210122999570304 283,619.78 Dishonoured Cheques 12210122999570302 1,582.14 Advance 12210122999570301 4,119.10 verification.

The fund balance has been carried over from 2007.

The Breakdown details were not provided for audit verification.

The fund balance has been carried over from 2007.


The Breakdown details were not provided for audit verification.

The Breakdown details were not provided for audit verification.

The above anomalies indicate that the monthly Revolving Fund reconciliations may not have been thoroughly scrutinised and checked by the Accounting Head.
Recommendations  The Ministry should ensure that the monthly reconciliation is prepared in accordance with the requirement of the Finance Manual and any differences are adjusted accordingly.

 The Ministry should investigate the overdrawn balances and take corrective action.
10 Section 16.3.1 – Finance Manual 2005 11 Section 16.3.3 – Finance Manual 2005 12 Page 235 of the Accounting Training Manual Ministry of Health, Women and Social Welfare Section 19: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Ministry’s Comments (I) prompt and regular clearance of charges were being made despite being raised by AG’s Report.
(ii) All revolving fund accounts are closely monitored and charges promptly cleared to avoid year end accumulation of balances.

(iii) Monthly reconciliation’s were being carried out as stipulated in the Finance Manual 2005; hence the figures were reconciled with the FMIS Reports.

(iv) The carried over balances were accumulated since 2003 due to the manual system that were in place and the reason could be misallocations or the source documents could not be located due to the number of years records.
The breakdown details could not be identified and needs to be journalized to waive the carried forward balances.

19.12 Drawings Account All bank accounts shall be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and be signed and dated by the responsible officer.13 In addition, write off action should be taken once cheques become stale whereby those relating to the current year is charged against the appropriate expenditure allocation and those of previous years against the general revenue account.14 The audit noted that the Drawings Account balance as at 31/12/08 as per the Ministry’s record did not reconcile with the Financial Management Information System (FMIS) records.
Refer to Table 19.11 below for details: TABLE 19.11: VARIANCE IN DRAWINGS ACCOUNT BALANCES Details FMIS Figure Ministry’s Record Variance Balance $ 4,701,838.95 5,827,281.03 1,125,442.08 The variance is due lack of account reconciliation and ensuring that the differences between the two records.

Recommendation The Ministry should ensure that drawings accounts is reconciled with FMIS records to avoid further accumulation of the variances.

Ministry’s Comments No comments received.
13 Section 39 (5) – Finance Instruction 2005 14 Finance Circular 21/2007 dated 12/11/07, para 7.4.2 Ministry of Health, Women and Social Welfare Section 19: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.13 Trading and Manufacturing Account Trading and Manufacturing activities (TMA’s) are operated on a semi- commercial basis to increase the returns that are realized from them and to provide goods, services or works more cost-effectively.15 In addition, the TMA annual report shall be prepared by the TMA manager for inclusion into the agency’s annual report.
The report shall include a copy of the audited TMA annual financial statements comprising a profit and loss statement and balance sheet and actual performance compared to the business plan targets.16 The Ministry failed to prepare its monthly reconciliations and the year end annual report and as a result, the audit could not substantiate certain balances reflected in the Financial Management Information System (FMIS).
The details of the balances are as follows: TABLE 19.12: DETAILS OF BALANCES IN FMIS Account Number Account Description 42225122999240201 42225122999260101 42225122999260201 42225122999260202 42225122999260304 42225122999260402 42225122999261301 42225122999269922 42225122999560103 42220000000580000 42220000000940000 Sales Direct Materials Personal Emoluments FNPF Telecommunications Office upkeep Vat Input Tax Ministry of Health Accounts Receivable Individuals Inventory Appropriation TMA Amount $ 594,072.70 80,850.82 48,971.69 1,627.68 1,022.70 5,071.78 32,688.40 423,839.63 45,915.63 --- 971,523.83 The above indicates the laxity of the Accounting Head to carry out his/her duties diligently resulting in the non-preparation of the TMA reconciliations and the annual financial statements.
A similar concern was also raised in previous year’s audit report, however improvement is yet to be noted.

Recommendations  The Ministry should investigate the cause of delay in preparing the TMA reconciliation and the annual financial statements.

 The Accounting Heads should ensure that all reconciliations are prepared on a timely manner and are properly scrutinised.
Ministry’s Comments Your report is noted , we regret our failure in the submission of TMA to your office, in-fact it was given to the TMA Officer at Mof For 2009, we will ensure to have the TMA Year end report on time 15 Part 6 of TMA – Finance Manual 2005 16 Section 6.5.7 – Finance Manual 2005 Ministry of Health, Women and Social Welfare Section 19: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.14 Revenue Where revenue is collected on behalf of other agencies the accounts officer raising the journal vouchers for posting shall also prepare an advice form informing the other agency of the collections received on their behalf.17 Audit of revenue records noted that some revenue collected in 2008 did not belong to the Ministry but were reflected in their accounts.
The details are as follows: TABLE 19.13: REVENUES THAT DO NOT BELONG TO THE MINISTRY Revenue Description Income Tax Personal Income Tax PAYE Customs Import Vat Total Amount $ 235,021.34 107,369.84 37,539.28 379,930.46 The Ministry was reminded on several occasions both previously and during the current audit conduct to take necessary steps to adjust and rectify the situation but it has been futile.
The failure of the Ministry to monitor the correct posting of revenue has led to overstated state revenue in its accounts.

Also the laxity of the accounts officer is evident in not carrying out adjustments when notified.

Recommendation The Ministry should monitor its revenue collections on a monthly basis to avoid any error and omission caused mostly through misposting.

Ministry’s Comments No comments received.
19.15 Significant Variance in FSN Revenue Each accounting Head shall ensure that revenue is recorded against the correct account; the recording of revenue is reconciled monthly with the Ministry of Finance: the Ministry of Finance is advised of any errors or discrepancies within 10 working days after the end of each month.18 A variance of $408,945 exists between the Fiji School of Nursing records of $434,901.14 and the FMIS record of $843,846, in the collection of FSN fees.
The variance could have resulted from mispostings which the Ministry had failed to identify.

Recommendation The Ministry should investigate the variance in the FSN fees and take a corrective action.

17 Section 5.5.7 – Finance Manual 2005 18 Finance Instructions 2005 – 30 (1) Ministry of Health, Women and Social Welfare Section 19: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Ministry’s Comments No comments received.
19.16 Excess Expenditure Accounting officers who have been authorised to supervise and control expenditure allocations should closely monitor the expenditure to ensure that none of its allocation are exceeded or overspent against the budgetary allocations.
The Ministry had overspent its annual Budget for the following allocations as at 31/12/08: TABLE 19.14: ALLOCATIONS OVER-SPENT P-A-S Description 1-1-2 1-1-7 1-2-3 1-2.4 1-2-13 2-1-4 2-1-5 2-1-13 2-2-4 2-3-3 2-3-4 2-2-13 2-3-13 3-1-4 3-1-13 3-2-3 3-2-13 4-1-13 Unestablished Staff Special Expenditure Travel and Communication Maintenance and Operations VAT Maintenance and Operations Purchase of Goods and Services VAT Maintenance and Operations Travel and Communications Maintenance and Operations VAT VAT Maintenance and Operations VAT Travel and Communications VAT VAT Revised Provision ($) 325,300 907,167 10,900 41,000 26,600 2,947,000 5,627,567 1,754,900 1,444,000 15,800 33,300 745,550 277,600 2,285,000 287,800 27,500 107,400 15,400 Actual Expenditure $ 339,030.78 1,556,111.70 19,484.75 42,219.43 236,676.81 3,105,586.80 6,855,921.63 5,749,400.66 1,770,404.01 22,451.49 35,365.57 5,363,590.07 1,348,961.12 2,356,329.16 591,311.99 38,596.38 689,614.77 240,291.18 Over- Expenditure $ 13,730.78 648,944.70 8,584.75 1,219.43 210,076.81 158,586.80 1,228,354.63 3,994,500.66 326,404.01 6,651.49 2,065.57 4,618,040.07 1,071,361.12 71,329.16 303,511.99 11,096.38 582,214.77 224,891.18 Over- Expenditure % 4 72 79 3 790 5 22 228 23 42 6.2 619 386 3 105 40 542 1,460 The lack of coordination and poor monitoring and controls in place by the management has resulted in the above excess expenditure.
Similar issues were highlighted in previous year’s audit report, but improvement was yet to be noted.

Recommendation The Ministry should regularly monitor and control its expenditure allocations and avoid excessive expenditure.

Ministry’s Comments No comments received.
Ministry of Health, Women and Social Welfare Section 19: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ AUDIT FINDINGS – MINISTRY OF HEALTH TAMAVUA TWOMEY HOSPITAL 19.17 Government Quarters Officers occupying government quarters of whatsoever grade or type or self contained flats will be required to pay rent at the rate of 8% of basic salary.19 In addition, Officers occupying government quarters will be required to pay water, electricity, telephone and other charges unless their terms of service provide otherwise.20 Contrary to the above provisions, the following officers have been occupying quarters at Tamavua Hospital compound and were paying rent of $0.35 per week or $18.20 annually.
Refer to Table 19.15 below for details.

TABLE 19.15: OFFICERS OCCUPYING GOVERNMENT QUARTERS Name of Officer Misi Rabitu Kiti Kasila Marika Vunibaka Sailosi Raitaba Veremo Kuruisalili Eroni Taviraki Arthur Snow Rosa Vulaca Peni Vulaca Losalini Wati Mesake Biumaiwai Sereana Narayan Solomone Tawake Simione Taituku EDP/FNPF N0.
KZ 926 VP 097 WN 830 PN 249 HV 906 32497 PN 493 OW 562 PF 203 DT 250 LV 841 RN 234 MG 401 LT 900 Station Post Date of Occupation Boiler Man Driver Cleaner Watchman Linen man M/Orderly CWM Hospital FSN Tamavua Tamavua Tamavua Tamavua Govt Pharmacy Mechanic/Driverr Tamavua HQ Tamavua Tamavua Tamavua Tamavua Tamavua Cleaner Mechanic/Driverr Cook Cleaner Cook Cook Driver 1997 20/11/2006 03/01/2007 24/09/2001 March 2007 15/12/1989 24/02/2005 29/09/2001 24/09/2007 24/01/2005 24/09/1990 2007 24/12/2005 09/08/1999 It was revealed that these quarters were recently renovated; therefore audit is of the view that the rent charged should be reviewed to ensure sustainability.
Water bills were also paid by the Hospital instead of the occupants.

The above findings indicate breach of provisions in the General Orders, resulting in occupants failing to pay the required rent and the water bills, which deprives the government of potential revenue.

Recommendations  The Ministry should ensure that the rent charged to these occupants is incompliance with the General Orders 607.

 Water bills should be charged to the occupants.


Ministry’s Comments The Ministry will now readjust the rates accordingly and that separate water meters be installed to allow separate water billings to each occupant as identified.
The Planning section of the Ministry have been working on the separate metering with PWD 19 General Orders 607 20 General Orders 617 (a) Ministry of Health, Women and Social Welfare Section 19: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Further OAG Comments During the exit meeting on 21/09/09, the Ministry commented that they will liaise with Public Service Commission and seek clarification on the rate to be charged for the occupancy of these quarters by the staffs.
19.18 Hospital Needs The Ministry would provide quality health services for the people of Fiji through a strengthened divisional health structures.21 Audit inspection of different sections at the Hospital noted that the following resources are needed to enhance the quality of its service delivery to the public.

Refer to Table 19.16 below for details.

TABLE 19.16: RESOURCES NEEDED BY THE HOSPITAL TO PROVIDE QUALITY SERVICE Department / Section Needs Comments Pharmacy 1) Urgent need for a computer.
2) Assistant for Pharmacist.

 For proper administration, management of the drugs.

record keeping and  Only one Pharmacist is looking after the Pharmacy.

Most of the time she has to go for duties at CWM or Government Pharmacy and the patients have to wait until she comes back.

Leprosy 1) Mini Operation Theater with  The mini operation theater with equipments is needed equipments.

to perform Dermato surgery.

2) Expansion of Clinic 3) Laptop/Digital Camera 4) Diagnostic instrument for skin clinic.
National Rehabilitation Medicine Hospital 1) New equipments  To cater the growing in and out patient demand.

Also like patients/staffs facilities provision of better convenience and sitting chairs.

 This is for record keeping and report writing.

The digital camera is needed to take pictures of sample skin diseases to send to overseas for advice.

like strand  Instruments light, hand instruments and biopsy surgical electrocatery machine are needed surgery.
lenses, minor scalpel and for Dermato-  Old equipment in the ward that needs replacement such as Wheel Chair Scale, Dyna Map, Commode Digital thermometer, ECG machine and suction machine.

Without proper equipments and facilities, the Hospitals service delivery to the public would be hindered and compromised.

21 Ministry of Health’s Mission Statement.


Ministry of Health, Women and Social Welfare Section 19: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendation The Ministry should consider upgrading the existing equipments and facilities in place to increase the quality of service delivery to the public and achieve its objective.
Ministry’s Comments The Pharmacy will be purchased a desktop PC and there is now a full time Pharmacist that has been posted to the hospital in May 09.

The assistant for Pharmacy has to be confirmed with funding availability.

The Mini operating theater and expansion of the skin clinic has to be a new facility improvement and would require capital works by the Ministry proposed through normal budgetary processes.
The laptop/digital camera and diagnostics instruments for Leprosy would be requested to the Pacific Leprosy Foundation in the next board meeting.

The new equipments will be provided by the Ministry with the initial lots commissioned in Sept/Oct this year.
19.19 Outstanding FSM Water Bills The Accounting Head or accounts supervisor must not certify a payment as correct unless they are satisfied that it are in accordance with the LPO, indent, contract, invoice or other authorization.22 The Tamavua Hospital has continued to pay the water bills of the Fiji School of Medicine despite it now being a private institution.

It has paid water bills amounting to $455,640.94 for meter number KRI 22 as at 31/12/08.

Refer to Table 19.17 for details.


TABLE 19.17: PAYMENT DETAILS FOR METER NUMBER KRI 22 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total Amount $ 452.50 7,749.12 6,562.50 24,779.48 56,152.74 74,858.04 191,970.56 34,918.50 58197.50 455,640.94+ + Source: Water Rates Office Enquiry with the Water Rates Office revealed that the meter number KRI 22 has been transferred to FSM on 22/02/09.
Failure to identify and transfer the water meter to FSM much earlier has resulted in unauthorized and extravagant expenditures met by the Hospital.

Recommendation The Ministry should make necessary arrangement with FSM to have the above expenditure reimbursed.
22 Section 2.8.3 – Finance Manual 2005 Ministry of Health, Women and Social Welfare Section 19: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Ministry’s Comments There will be a meeting specifically to discuss these arrangements of reimburse of the money paid by the Ministry of Health for the water used by the FSM at Tamavua.

The Permanent Secretary of Health will facilitate this to FSM.
Further OAG Comments During the exit meeting on 21/09/09, The Permanent Secretary informed that she has not yet met with the FSM management but would be meeting shortly to discuss the reimbursement of water bills to the Ministry of Health.
SAMABULA OLD PEOPLES HOME 19.20 Government Quarters Officers occupying government quarters of whatsoever grade or type or self contained flats will be required to pay rent at the rate of 8% of basic salary.23 Officers occupying government quarters will be required to pay water, electricity, telephone and other charges unless their terms of service provide otherwise.24 The following officers have been occupying the quarters at the Samabula Old Peoples Home compound without paying any rent.
Refer to Table 19.18 below for details.

TABLE 19.18: STAFFS OCCUPAYING GOVERNMENT QUARTERS WITHOUT PAYING ANY RENT Staff EDP No.

Grade W. Manu L. Finau J.Waqanisau L. Dimulo Y.P Sami K. Suraru L.O’Connor L. Marama 14688 32658 VT 288 MA 724 LU 886 PU 861 MW 980 HL 223 Ungraded Ungraded Ungraded Ungraded Ungraded Ungraded Ungraded Ungraded Quarter No.
18 3 1 2 4 12 12 12 Date Quarter Occupied 21/05/04 01/01/06 14/09/06 26/06/08 03/09/00 29/09/07 31/12/97 15/08/07 Rate $ Nil Nil Nil Nil Nil Nil Nil Nil Remarks Institutional Quarters Institutional Quarters Institutional Quarters Institutional Quarters Institutional Quarters Institutional Quarters Institutional Quarters Institutional Quarters The utility bills (water & electricity) are also met by the SOPH instead of the above occupants, as no separate lines are kept for the quarters.
Moreover, audit could not sight any tenancy agreement for PSC approval exempting the occupants from paying rent and the utility charges.

The above findings indicate the breach of the General Orders, resulting in occupants failing to pay the required rent and the utility bills, depriving the government of potential revenue.

Recommendation The occupants should be charged rent and pay their own utility bills in accordance with General Order 607 and 617 (a).
23 General Orders 607 24 General Orders 617 (a) Ministry of Health, Women and Social Welfare Section 19: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Ministry’s Comments Currently, out of the 8 [eight] quarters at the premises, 4 [four] are vacant while the other 4 [four] are being occupied by the by the existing faculty members.

The occupants will be advised on the condition for payment of quarter’s rental and utility bills.
The General Services Unit - CEHS will do grading of quarters.

Further OAG Comments During the exit meeting on 21/09/09, the Ministry commented that they will liaise with Public Service Commission and seek clarification on the rate to be charged for the occupancy of these quarters by the staffs.

FIJI PHARMACEUTICAL SERVICES 19.21 Pending Surcharge – Mr. Peter Zinck Any sum or sums due by an officer to government may be deducted by the Permanent Secretary for Finance from salary due to such officer.
An officer shall be given prior notice of such action being taken.25 In addition, all practical and cost effective efforts shall be made to recover losses which are recoverable and to avoid future losses occurring from the same cause.26 The former Chief Pharmacist, Mr. Peter Zinck, was surcharged $50,316.94 (50% of $100,633.88) for non delivery of 100 hospital beds ordered as per the indent MD107/03.
The supplier, Pacific Surgimed International Ltd of New Zealand was paid in advance the total amount of $100,633.88 in December 2002.

The Officer applied for leave without pay for a year with effect from 18/08/08; however this was declined by the Ministry of Health, Ministry of Finance and the Public Service Commission, reason being him owing substantial surcharge amount.

Without any approval, Mr Zinck proceeded on leave and as a result his service was terminated on 17/08/08.
Audit noted that his salary was ceased on 26/08/08 instead of 18/08/08, resulting in overpayment of salary amounting to $1,041.47.

The Officer was repaying the surcharges amount at a rate of $120 / fortnight; however this ceased on 25/08/08 due to his termination.

The Officer is now27 employed at the United Nation Population Fund (UNFPA).

The Officer owes the government $47,758.41, resulting from surcharge ($46,716.94) and overpayment of salary ($1,041.47).
In addition, Mr. Zinck is yet to return a safe given to him whilst holding the position of a Chief Pharmacist.

The Ministry was not able to provide the material value of the safe.

This case was been investigated by the Anti Money Laundering Unit, Criminal Investigation Department of the Fiji Police Force in July 2008.

As at the audit date28, neither any report has been received by the Ministry nor the Ministry followed up on this case with the mentioned unit.
Failure to instigate timely action could result in substantial amount of loss to the government.

Also the prolong delay in taking necessary action would result in the amount not refunded from the supplier.
25 General order 1993 26 Finance Instructions 2005 (67) 27 16 March 2009 28 4 May 2009 Ministry of Health, Women and Social Welfare Section 19: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendations  The Ministry should officially write and inform Mr. Zinck to make necessary arrangement to clear all his outstanding dues.
 Appropriate authorities should be consulted and informed if the attempt to fully recover outstanding surcharges is unsuccessful.

 The Ministry should follow up with the CID Unit on the progress of the case.
Ministry’s Comments Non-delivery of 100 hospital beds Perusal of MD107/2003 indicated that proper quotations and tender procedures were followed and awarded to the cheapest bidder, Pacific Surgimed Limited.29 It is also noted that the company requested for advanced telegraphic transfer of payment of $FJD 94,468.61 as part of their quotation submission dated 18/11/2002 30 and indent raised on 29/11/2002.31 However, it should be noted that the Major Tenders Board approved this purchase on 11 December 2002 (MJTB 18/02) with the payment particulars itemised on the indent as “Payment: Advance TT.”1 Therefore the Major Tenders Board is supposed to check that all financial requirements of the Government of Fiji are complied with before endorsement, as the “control forum” for government in terms of tender processes.
It is also noted that Government Pharmacy Procurement team, Principal Supplies Officer and the then Chief Pharmacist had exhausted all available avenues to claim monies spent.

The Ministry of Health headquarters will be in a better position to action all recommendations highlighted in the draft report.

These are due to several factors:  Officer concerned is no longer in the public service.
Arrangement with current employer or with employee on money and asset recovery;  The Anti Money Laundering Unit, Criminal Investigation Department, Fiji Police Force should submit a report for appropriate action;  Major Tenders Board should also explain why the indent was approved.

Further OAG Comments During the exit meeting on 21/09/09, the Permanent Secretary commented that this case was handled directly by the current Minister with CID Police Department.
However, they will be seeking legal advice from Solicitor General, and would be informing the Immigration Department, Public Service Commission and the UNFPA about this case.

Another person (Mr. Narendra Goundar) involved in this case has gone overseas and his wherabouts are unknown.

His name would be sent to Immigration Department and the Interpol.
29 Memorandum File 107/2003: dated 29/11/2002 30 Pacific Surgimed Quotation 18/11/02 31 Indent MD 107/2003 Ministry of Health, Women and Social Welfare Section 19: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.22 Excessive Supply of Drugs The aim of the National Drug Policy is to ensure the continued availability of sufficient quantities of the required essential drugs at all levels of the health system, through the accurate and systematic recording, monitoring and reporting of stock levels of all items.32 The Fiji Pharmaceutical Services usually hold stocks which carry minimum levels (MSL) equivalent to 8 months and maximum stock (MSL) equivalent to 18 months for fast moving goods.
Audit noted that Fiji Pharmaceutical Services in 2008 purchased 29,700,000 Methyldopa tablets (250mg) tablets, costing $1,038,076.09, when the estimated annual usage rate was only 1,333,333 and the maximum stock level was 2,000,000.

Assuming the drugs do not expire, the stock should be sufficient for 19 years.

However, these drugs would be expiring in April 2011.

As at the audit date on 16/3/09, 25,522,000 Methyldopa tablets (250mg) valued at $893,270 are held in stock.
Funds are unnecessarily tied down due to this bulk purchase and it appears that there was some ulterior motive in the execution of the transaction.

Recommendations  Officers responsible for this oversupply of drugs and wastage of taxpayer’s funds should be disciplined accordingly.

 The matter should be reported to police.


Ministry’s Comments After perusing MD245/08 it is noted that a total of 297,000 tablets of packs of 100 (item Code 00195 Methyldopa Tablets 250mg) was procured on two occasions (via indent under the Drug Tender from Boucher and Muir, Australia.

Procurement raised both orders on 22 February 2008.
The first indent was for 200,000 tablets x 100 packs (value of $699,041.14 C&F inclusive) and the second indent was for 97,000 tablets x 100 packs (value of $339,034.95 C&F inclusive).

33 Controller of Government Supplies (COGS) received the first consignment on 4 March 2008 and the second consignment on 14 May 2008.
The anomaly noted on the indent is that the pack size of 100 tables/packet of the product may have been overlooked by both procurement and the then Director when indent was raised and signed respectively.

This is a plausible explanation of this anomaly of procuring 29, 700,000 tablets.

FPBSC has recently reviewed maximum stock holdings and placed control systems in place to ensure this type of event is not repeated.
Further OAG Comments During the exit meeting on 21/09/09, the Director FPS agreed that this should not have happened and they would be putting in controls to eliminate this type of transactions or events from happening in future.

32 National Drug Policy – Para.

7 33 Indent MD245/08 Ministry of Health, Women and Social Welfare Section 19: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ These tablets are used in pregnancy cases only.
The Ministry would make an effort to sell these tablets to other Pacific Island Countries.
19.23 Drugs and Consumables not Cleared by Quarantine The contractor will not supply goods with unacceptably close use by/expiry dates.34 FPS may accept shorter expiry dates at its discretion.35 The minimum time of expiry of drugs and consumables upon reaching Fiji Pharmaceutical Service should not be less than 18 months.36 The contractor warrants that the goods are of merchantable quality, made of good material and workmanship and free from defect.37 The audit noted that losses were not claimed for some of the drugs and consumables kept at the Miscellaneous and the Receiving Section for quarantine purposes due to poor merchantable quality, wrongly supplied, or those that were about to expire were not cleared on time thus expired.
Refer to Appendix 19.2 for details.

No claim is made from suppliers for loss of drugs as a consequence proper value was not obtained for funds spent on these drugs.

Recommendations  The Ministry should ensure that provisions of the Contract is adhered to in cases of goods received which are found to be defective or not in accordance with the specification.

 Officers responsible for the erroneous supplies should be reprimanded whilst discrepancies should be borne by the suppliers.
Ministry’s Comments Most of the items held in the quarantine were later taken on charge due to the shortage of drugs in the market and also some were discontinued because of changes in the specification.

Suppliers have issued credit notes for some short expired items.

Likewise with the consumables all the items were later taken on charge because of improper specification.

Suppliers have supplied items according to the specification provided.
Now that we have a Clinical Coordinator, we are currently reviewing the technical specification of consumables to be in par with international standards.

Please find listed tabulated response for each item selected in Appendix 19.2.

It should be stressed that the Audit team should attend processes involved; ensure meticulous analysis and reconciliation of all documents (from procurement to receipts).

Comments made for these sections are not accurate.
19.24 Shortage of Drugs and Consumables The aim of the National Drug Policy is to ensure the continued availability of sufficient quantities of the required essential drugs at all levels of the health system, through the accurate and systematic recording, monitoring and reporting of stock levels of all items.38 34 Condition of Contract: FPBS vs The Contractor – Para 4.9.1 35 Condition of Contract: FPBS vs The Contractor – Para 4.9.2 36 Condition of Contract: FPBS vs The Contractor – Para 4.9.1 37 Condition of Contract: FPBS vs The Contractor – Para 4.10.1 38 Section 7 – National Drug Policy Ministry of Health, Women and Social Welfare Section 19: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The following essential drugs and consumables have been out of stock at the FPS since 17/09/08 till the audit date.39.
These shortages were verified from the inventory records (Epicor System) maintained by the FPS.

Refer to Table 19.19 below for details.

TABLE 19.19: SHORT SUPPLY OF DRUGS AND CONSUMABLES Drugs & Consumables Item No.
Minimum Stock Maximum Stock Betamethasone Eye Ointment 00067 Chloropromazine Tabs 50mg 00123 Ferrousgluconate Elixir 200mg 01045 Methylated Spirit 100% 200ml 00312 Thioridazine Tabs 10mg 00313 Thioridazine Tabs 50mg 00314 Thioridazine Tabs 100mg 01845 Lopamidol 300 00356 Potassium Chloride 00262 Prilocaine Inj 00302 Sulphathiazole cream 0003 32582 Morphine Sulphate Tabs 02240 Candid Ear Drops 00271 Propranolol Inj 01879 Lamivudine Tabs 150mg 00775 Spigot Catheters Medium 01179 Needle Disposable Spinal 32498 Endotracheal Tubes 32518 Chest Drain Tubes 00457 Gauze Absorbent Ribbon 00465 Felt Othopaedic 00468 Plaster Zinc Oxide 01198 Pipelles Endosampler 00611 Bag Autoclave Code 00712 Electrode Chest Adult 00870 Warming Blood Infusion Coil Stock as at 17/09/08 and 13/11/08 NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL Stock as at 12/03/09 NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL The above findings indicate lack of proper control mechanisms to monitor, coordinate ordering and distribution of drugs and consumables to hospitals and health centres.
Shortage of drugs would impact the treatment of the patients who could not afford to purchase drugs and consumables.

Recommendation The Ministry should ensure that drugs and consumables are in adequate stock to avoid shortages.

Ministry’s Comments Most of the items were hard to source for various reasons, either these items were discontinued from the market, changes in the specification or difficulty in sourcing of raw materials.

Most of these items were to be deleted from the inventory list.
However there are alternative products available in stock.

Further comments received on 21/09/09: The Ministry will be addressing this issue to avoid shortage of drugs and consumables in hospitals.
39 12 March 2009 Ministry of Health, Women and Social Welfare Section 19: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.25 Expired Drugs 2008 The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug system.
Minimum and maximum stock levels will be introduced, systematic stock rotation ensured, dead stocks and expired stocks identified and either disposed off or, in the case of non-expired useable items, redistributed.40 Audit noted that drugs worth $973,120 had expired at the end of 2008.

Refer to Appendix 19.3 for details.

Refer to Table 19.20 below for the amount of expired drugs for the last 5 years at Fiji Pharmaceutical Services which has accumulated to $2,786,139.34.
TABLE 19.20: DETAILS OF EXPIRED DRUGS Year 2004 2005 2006 2007 2008 Total Total Expired Drugs $ 235,543.00 518,389.30 387,441.19 671,645.67 973,120.18 2,786,139.34 Furthermore, the failure to dispose off these expired drugs had resulted in the unnecessary space being occupied thus storage charges.

The absence of proper control mechanisms to monitor, coordinate ordering and distribution of drugs in the country has resulted in the losses over the years.
Recommendations  The current system engaged in the ordering, usage and stock control should be reviewed as a matter of priority to ensure that expired drugs are kept to a minimum.

 Annual Board of Survey should be carried out for these inventories.

Ministry’s Comments The management is putting strategies to ensure expiry is minimized and one of the major changes is the review of the minimum and maximum level.
One of these changes is the issuing whereby short expiry is issued first rather then issuing by batch numbers.

Stock rotation has been encouraged to minimize wastages.

The delay in the disposal was because of the delay in getting the approval from Ministry of Finance.

Reports have to be reissued to Finance after the original copy was misplaced by the Verification Officer from Government Supplies.
40 National Drug Policy (1994) Ministry of Health, Women and Social Welfare Section 19: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.26 Stock Discrepancy All practical and cost effective efforts shall be made to recover losses which are recoverable and to avoid future losses occurring from the same cause.41 Losses suspected to have been caused by theft or other breaches of the law should be reported immediately to the police and a copy of the report provided to the Public Service Commission, the Ministry of Finance and the Auditor General.42 In addition, the Accounting Head must ensure that all officers of the agency who are responsible for particular controls are aware of their responsibilities, including the need for managers to regularly rotate duties between staff, where practical, to minimize and detect the possibility of fraud.43 A surcharge may be imposed on an officer who is directly or indirectly responsible for the destruction, damage, theft or other loss of property.44 The stock take report of 31/12/08 revealed the substantial amount of discrepancy between the stock records and the physical count.
The stock take was not carried out on a regular interval despite the nature and the substantial amount of stock held amounting to $10,849,293.

The audit noted that some drugs and consumables amounting to $438,882.08 were in excess of its recorded stock whist others amounting to $432,071.29 were in deficit.

This is an indication that the stock records were not updated upon receipt or issue of stock, increasing the risk of misappropriation, theft and expiration of drugs without being detected.
Thus, the stock management and control system in place is inadequate and ineffective, resulting in the above discrepancy.

Also if stock records are not updated the management is not in a position to determine the quantity of any stock it has at any point in time.

Recommendations  The Ministry should review its Stock Management and Controls Policies to minimise the above discrepancy.

 The stock records should be regularly updated and verified against the physical stock.
 The responsible officers should be surcharged for stock deficiencies.

Surplus stock should be taken on charge,  The regular stock take should be carried out due to the nature of the stock held.

 The refresher trainings on effective stock management should be provided to the staffs.

Ministry’s Comments The management is currently reviewing the Inventory Management Policy and also putting in place procedure to ensure that such discrepancy is minimized.
The stock verifiers are also conducting continuous checks to ensure that proper recording is maintained.

Quarterly stock take is also done to ensure that discrepancy is minimized and corrective measures are implemented to improve data integrity.
41 Section 66 – Finance Instruction 2005 42 Section 67 – Finance Instruction 2005 43 Section 72 (2) – Finance Instruction 2005 44 Section 74 – Finance Instruction 2005 Ministry of Health, Women and Social Welfare Section 19: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ SAINT GILES HOSPITAL 19.27 Unclaimed Patients Belongings All patients’ belongings should be returned to them or their family upon their discharge from the hospital.
Patients’ belongings are still unclaimed and stored in a cabinet at the Saint Giles Hospital (SGH).

No proper register is maintained to record and account for these valuable items.

The items unclaimed are jewelleries, purse, watches, bank books, passport, sunglasses, cameras and whales tooth etc.

Refer to Appendix 19.4 for details.

The past and current management had failed to make a concerted effort to return these items to their rightful owners.
Lack of proper records could be a catalyst for misappropriation and theft without being detected.

Recommendation The Ministry should make a concerted effort to return these valuable items to its rightful owners.

Ministry’s Comments There is a long list of patients whose belongings are still with us Some of the patients have died while some have migrated or were from Overseas and a few are still inpatient.

The majority of the patients are alive and some have been admitted here several years back.
This problem arose when they failed to come back after leave, or when they were discharged in the weekends or after official hours of work as the belongings are kept in the Executive Officer’s office.

Also in the past, patients’ belongings were not thoroughly documented in the ward so they did not know that the patients have their belongings in the hospital and go home without their belongings.

We have addressed the issue of belongings in our admission protocol which is in a draft form at the moment.
There is a Patients Belongings Form which is filled in when patients are admitted and their belongings recorded.

It is signed by the admitting nurse and kept in the ward.

When the patient is released the Patients Belonging form is cross checked, patients belongings are given to the patient or relative and they sign the form indicating that they have received the belongings and the form goes into the patients files.
As for the belongings that are left in the hospital, the recorder is to locate the files of all the patients whose name appears on list.

From the files patients address and contact will be noted down.

These patients will be contacted individually and their belongings returned.

We will ensure that a list of patients who cannot be located will be sent to your office for further necessary action to be taken.
Ministry of Health, Women and Social Welfare Section 19: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.28 Patients Cash Trust Fund Each month, the trust account shall be balanced and reconciled with the trust bank account.

The names and balances of each account shall be listed and the reconciliation shall be signed by the responsible officer.
Unreconciled items should be investigated and resolved promptly.45 Each payment of trust money must be supported by an expenditure voucher which contains details of, date, payee, amount and the reason for payment.46 The hospital keeps a trust fund account known as Patients Cash.

This trust account keeps all patients cash when they are admitted to the hospital for safe keeping and are refunded to them upon their discharge.
The following irregularities were noted in the maintenance of this trust find account: (1) No payment vouchers were raised or signatures of patients sighted in the register to substantiate the legitimacy of cash refunded to patients on discharge.

Refer to Table 19.21 below for examples.

TABLE 19.21: VOUCHERS NOT RAISED OR SIGNATURES SIGHTED FOR THESE PAYMENTS Date Received 28/01/06 Receipt No.

438823 Payee Kishore Kumar Remarks Amount $ 40.00 Refund on 15/03/06.
No evidence or signature from the Payee of the amount being refunded.

12/04/06 438833 Maika Cama 74.00 Refund on 18/04/06.

No evidence or signature from 30/05/06 438837 Shabnam Lata 24/07/06 438849 Mohammed Imran 04/07/06 438845 Lynette Politini 15/05/07 435524 P.P.Hottceni 24/07/07 435527 Suliasi Naqaqa 23/08/07 435528 Sereima Ravu 15/02/08 435531 Asea Cavuilati 04/06/08 435536 Rupeni Taira 02/09/08 435542 Seru Kulaca the Payee of the amount being refunded.

60.00 Refunded on 20/06/06.


No evidence or signature from the Payee of the amount being refunded.

54.20 Refunded on 03/08/06 .No evidence or signature from the Payee of the amount being refunded.

60.00 Refunded on 07/08/06.

No evidence or signature from the Payee of the amount being refunded.

88.72 Refunded on 05/07/07.

No evidence or signature from the Payee of the amount being refunded.

100.00 Refunded on 07/09/07.

No evidence or signature from the Payee of the amount being refunded.
Staff Nurse signed.

94.14 Refunded on 01/11/07.

No evidence or signature from the Payee of the amount being refunded.

Staff Nurse signed.

7.80 Refunded on 15/2/08.

No evidence or signature from the Payee of the amount being refunded.

Orderly signed.

50.00 Refunded on 06/06/08.

No evidence or signature from the Payee of the amount being refunded.

Not entered in the register 20.00 Refunded on 08/06/08.

No evidence or signature from the Payee of the amount being refunded.
Not entered in the register 45 Section 3 – Finance Instruction 2005 46 Section 5 – Finance Instruction 2005 Ministry of Health, Women and Social Welfare Section 19: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ (2) No monthly reconciliation was produced to audit for verification for the year ended 31/12/08 and the date of the last reconciliation could not be determined.

Bank reconciliation for 2007 and 2008 were also not provided to audit.
(3) The audit could not ascertain the lodgement of the following receipts as they do not appear in the cash analysis sheet.

As earlier stated, the bank statement for 2008 was not produced to audit and therefore these receipts cannot be traced to the bank statement.
TABLE 19.22: RECEIPTS NOT APPEARING IN BANK STATEMENT Date 05/07/07 23/08/07 28/08/07 21/05/08 22/05/08 22/07/08 04/08/08 25/08/08 05/08/08 19/09/08 19/09/08 20/09/08 01/10/08 14/10/08 25/11/08 25/11/08 26/11/08 26/11/08 26/11/08 Total Etika Vakasilum Received From Receipt No.
435526 435529 Mataiyasi 435530 435533 435534 435537 435538 435541 435540 435543 435544 435546 435547 435548 435549 435550 435601 435602 435603 Surem Pande Jagdish Chand Kushma Lata Joe Jai Prakash Tomasi Fafetu Saula Naitavuni Tomasi Lutumailagi Poasa Tuinakelo Kalesi Tabua Lemeki Roko Lemeki Roko Sital Prasad Nevele Smith Nevele Smith Pita Rakuita Dhurup Lal Amount $ 20.00 11.50 10.00 20.00 10.00 20.00 6.16 36.00 10.00 5.00 10.00 488.48 6.27 80.80 2.50 31.60 83.05 1.45 8.68 861.49 (4) The following receipts were marked cancelled, however the original copy of the receipts were not attached to the receipt book; thus audit could not ascertain the validity of the cancellation of these receipts.
TABLE 19.23: CANCELLED RECEIPTS Date --- --- 01/06/07 Receipt No.

435516 435523 435525 Payee --- --- --- Amount $ --- --- 110.00 The Executive Officer was performing several duties which include maintaining of all trust fund records i.e.

revenue receipt, recording and lodgement of cash collected and there is no evidence to indicate that the records were checked by her supervisors, divisional accounts section and the internal audit on a regular basis.
The trust fund procedures were breached, resulting in the above irregularities.

There is also a possibility that the funds could have been misappropriated.

Ministry of Health, Women and Social Welfare Section 19: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendations  The Ministry should further investigate this matter and if warranted take necessary action against the responsible officer.
 Monthly reconciliations should be prepared and regularly checked by the Headquarters accounts section undertaken.

 All lodgements should be scrutinised by the supervisor before and after the banking.

 The Bank reconciliations and the bank statements should be provided to audit for verification  All cancelled white copies of the receipts should be attached to the receipt book.

 Section 3 and 5 of the Finance Instruction should be strictly complied with.
Ministry’s Comments The former Executive Officer, Mereia Rasogo, was responsible for operating the above two accounts.

In December 2008 it was discovered that funds had gone missing and the matter was reported to the police.

Police investigated the matter and charged the former E.O.

The matter is in Court at present.


The officer had been terminated from service pending issues in-regards to surcharge of the supervisors in which we have informed the Internal Audit Inspection, MoF to investigate and return for further necessary action.

We still await response from MoF till to-date.

19.29 Patients Comfort Trust Fund Accounts Each month, the trust account shall be balanced and reconciled with the trust bank account.
The names and balances of each account shall be listed and the reconciliation shall be signed by the responsible officer.

Unreconciled items should be investigated and resolved promptly.47 Each payment of trust money must be supported by an expenditure voucher which contains details of, date, payee, amount and the reason for payment.48 The hospital keeps a trust fund account known as Patients Comfort Fund.
This trust account keeps all the donations, fundraising and the charity money received from the general public.

These funds are used for buying patients medication which are unavailable at the pharmacy, diapers for elderly patients and paying fares upon discharge.

The following irregularities were noted in the maintenance of this trust fund account: (1) The amount withdrawn from this account was in excess of the approved amount.
Variance of $17,684.80 was noted between the approval records and the bank statement.

Refer to Appendix 19.5 for details.

There is a possibility of fraudulent activity practiced by the Executive Officer.

(2) No monthly reconciliation was prepared for the year ended 31/12/08.

Also audit could not ascertain as to when the last reconciliation was prepared by the Hospital.

(3) The lodgement of the following receipts could not be verified as they do not appear in the cash analysis sheet.
Refer to Appendix 19.6 for details.

(4) The following receipts were marked cancelled, however the original copy of the receipts are not attached to the receipt book; thus audit could not ascertain the validity of the cancellation of these receipts.
47 Section 3 – Finance Instruction 2005 48 Section 5 – Finance Instruction 2005 Ministry of Health, Women and Social Welfare Section 19: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ TABLE 19.24: CANCELLED RECEIPTS Date 19/07/07 13/03/07 06/08/07 Receipt No.

438784 438777 438776 Payee N/A N/A N/A Amount $ N/A N/A 50.00 The Executive Officer was performing several duties which include maintaining of all trust fund records i.e.
revenue receipt, recording and lodgement of cash collected.

Audit could not authenticate whether the records were checked by her supervisors, divisional accounts section and the internal audit on a regular basis.

The above indicates that the trust fund procedures were breached, resulting in the above irregularities.

There is also a possibility that the funds could have been misappropriated.

These irregularities could have been occurring in previous years without being detected.
Recommendations  The Ministry should further investigate this matter and if warranted take necessary action against the responsible officer.

 Monthly reconciliations should be prepared and regularly checked by the Headquarters accounts section.

 All lodgements should be scrutinised by the supervisor before and after the banking.
 The Bank reconciliation and the bank statement should be provide to audit for verification  All cancelled white copies of the receipts should be attached to the receipt book.

 Section 3 and 5 of the Finance Instruction should be strictly complied with.

Ministry’s Comments The former Executive Officer, Mereia Rasogo, was responsible for operating the above two accounts.

In December 2008 it was discovered that funds had gone missing and the matter was reported to the police.
Police investigated the matter and charged the former E.O.

The matter is in Court at present.

The officer had been terminated from service pending issues in-regards to surcharge of the supervisors in which we have informed the Internal Audit Inspection, MoF to investigate and return for further necessary action.

We still await response from MoF till to-date.
19.30 Discrepancies in Lodgement If a receipt is spoilt, it shall be marked “cancelled” and retained in the receipt book.49 The banking officer shall bank the money received on a daily basis at least.50 The lodgement forms shall be checked and signed by the accounts supervisor (who must not also be responsible for collecting revenue).51 The source of revenue for the Hospital is through the recovery of the telephone bills (miscellaneous item) and the medical report fees.
49 Section 5.3.5 – Finance Manual 2005 50 Section 5.4.1 – Finance Manual 2005 51 Section 5.4.2 – Finance Manual 2005 Ministry of Health, Women and Social Welfare Section 19: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The following receipts were marked cancelled, however the original copy of the receipts were not attached to the receipt book; thus audit could not ascertain the validity of the cancellation of these receipts.
Refer to Table 19.25 below for details.

TABLE 19.25: CANCELLED RECEIPTS Date Receipt No.
Received From 29/09/08 18/11/08 749217 Mrs Curtis 749225 Quinton Ho Remarks Amount $ 5.00 Medical Report Fees 2,165.28 Reimbursement of the air fare 145.00 130.00 2,445.28 The reimbursement was also made in following currency USD 1,200/0.5542 = FJ $ 2,165.28 Peso 3,900/26.8957 = FJ $145.00 Total In addition, audit could not ascertain the lodgement of the following receipts as they do not appear in the cash analysis sheet: TABLE 19.26: RECEIPTS NOT APPEARING IN CASH ANALYSIS SHEET Date 29/09/08 Total Receipt No.
Received From 749218 MS St Giles 749226 MS St Giles 749227 749228 Kalailagi Vuniwaqa Suresh Prasad Remarks Amount $ 5.00 Medical Report Fees 2.10 Retirement of Imprest 5.00 Medical Report Fees 5.00 Medical Report Fees 17.10 The Executive Officer was performing several duties which include maintaining of all trust fund records i.e.

revenue receipt, recording and lodgement of cash collected.
Audit could not authenticate whether the records were checked by her supervisors, divisional accounts section and the internal audit on a regular basis.

The above indicates that the trust fund procedures were breached, resulting in the above irregularities.

There is also a possibility that the funds could have been misappropriated.

These irregularities could have been occurring in previous years without being detected.
Recommendations  The Ministry should further investigate this matter and if warranted take necessary action against the responsible officer.

 All lodgements should be scrutinised by the supervisor before and after the banking.

 All cancelled white copies of the receipts should be attached to the receipt book.

Ministry’s Comments The same officer was also involved here and has been removed from the hospital.

Police investigated the matter and charged the former E.O.

The matter is in Court at present.


Ministry of Health, Women and Social Welfare Section 19: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ COLONIAL WAR MEMORIAL HOSPITAL 19.31 Old and Damaged Machines and Equipments The Ministry should provide adequate resources, such as good machines and equipments to provide people of Fiji with quality health services.
The audit noted that there is a need for urgent maintenance and replacement of numerous machines and equipment currently used in the hospital as these posse risks to the staffs and hinder the quality health services provided to patients.

Refer below for the following machines and equipment that need urgent repair or replacement.

(1) Mortuary Two compartments where the bodies are kept cannot be locked as the doors are damaged.
The Structure or frame for the mortuary cabinet and also the inside trays where the bodies are kept is deteriorating and slowly eroding away.

Refer to the illustration below.

Cooler not working for more than 10 years (2) Kitchen  2 deep fryers are not working.

 Steamers are really old and leaking.

 2 food warmer machine not working.

 Food trolleys really old and some parts damaged and missing.
 Meat cutter not working and the workers have to use the knife instead to cut large quantity of meat everyday.

 Cooler not working for more than 10 years.

 Ice machine and three urns not working.

Refer to the pictures below.


Meat Cutter not working Food Trays are very old and rusty Steamers are very old and leaking Ministry of Health, Women and Social Welfare Section 19: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ (3) Laundry Only 2 of the 6 dryers at CWM are currently operating.
Laundry machines are also old and leaking and the workers have to block it with clothes to stop the spreading of the dirty laundry waters into other working areas.

Refer to the illustrations below.

The old and out of order dryer Clothes used to stop leakage from the laundry machine.

(4) Physio Department The physio pool has not been in operation since late 90’s.

According to the head Physio Therapists, exercising in the pool is very much recommended for their patients.

Refer to the illustration.


Pool not in operation (5) Elevator Tailevu and Namosi Ward elevator is not working.

Nurses sometimes use the kitchen elevator to transfer patients.

Refer to pictures below.

Elevator not working – Tailevu and Namosi Ward.

The above indicates that Ministry is relying on the existing machines and equipments thus failing to realise and cater the needs of growing population.
Ministry of Health, Women and Social Welfare Section 19: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Lack of proper machines, equipment and facilities in place could hinder and compromise the quality health service delivery and also cause undue inconvenience and frustration which affects the staff morale and productivity.
Recommendation The Ministry should make an effort to replace or repair the above items to ensure quality health service delivery.

Ministry’s Comments Mortuary The Boiler Supervisor at CWM Hospital has assessed the problems found at the mortuary and has recommended that a private company be engaged to carry out the renovation work required to be done.

At present, we are in the process of acquiring quotations and the work will be carried out once the fund is released from headquarters.
Kitchen The initial write off statements for the following equipment have been missing and cannot be located.

The CWM Hospital’s new board of survey team has re – inspected the machines on 31/08/09 and we will request headquarters for replacements.

Deep dryers Steamers Food warmer Meat Cutter Ice Machine 3 Urns Laundry - - - - - - Written off Written off Written off It is functioning well Written off Written off An advice has been received from the Hon.
Minister for Health that the new Laundry machines will arrive in Fiji at the end of this September 2009.

In terms of the general maintenance of the building, presently, we are in the process of purchasing the required materials and the maintenance work will commence in mid September 2009.

Physiotherapy Pool The upgrading of the physiotherapy pool is not included in the CWM Hospital’s priority capital project listing for the year 2010.
However, the engagement of sponsors to upgrade the pool has been frequently discussed in the Board of Visitors meeting.

Elevator The tender process has been closed and the Major Tender Board is in the process of selecting a suitable company to supply and install the new elevators at the Lancaster Ward, Old Operating Theatre and Tailevu Namosi Ward.
19.32 Obsolete Medical Equipments To provide quality health services for the people of Fiji through a strengthened divisional health structures.52 52 Ministry of Health’s Mission Statement.
Ministry of Health, Women and Social Welfare Section 19: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The audit of medical equipment records prepared by CWM noted that numerous medical equipments which are currently used at CWM hospital are in need of urgent replacement.

Majority of these equipments has already served beyond its useful life.

A number of medical equipments are held under repair.
This has been an on going problem faced by the hospitals throughout the year.
Furthermore, the hospital is in urgent need of the following essential medical equipments: TABLE 19.27: URGENTLY NEEDED MEDICAL EQUIPMENTS Machine Qty in Use Qty Needed Comment CTG machine 1 16 Infusion Pump Portable incubator Infant Warmer Transport incubator ECG machine Pulse oxy meter Emergency trolley All are very old and faulty none 1 1 1 1 4 8 4 4 3 3 3 8 According to Matron Maternity, there is only one CTG working at the moment.
And this is shared by Antenatal ward, Morrison, Labour and ICU ward when they should be having four each in their ward.

The machine is used for monitoring Baby’s heart and is very essential as they used it after every four hours.

Very essential especially for labor ward and ICU.

It is used to pump medicine or drugs inside the drip for very serious cases.

There is none for the hospital at the moment.

2 incubators are needed in the labour ward and 2 in the Intensive care unit.
There are 4 labour rooms in the Labour Ward and they should have 1 infant warmer each.

But at the moment only one room has the infant warmer.

Only 1 working but then its warmer is not working.

So nurses have to wrap the baby properly to keep it warm while transferring the baby.

3 more is needed.

There is only 1 at the moment which is at Morrison ward.

Labour, Antenatal and ICU ward should have 1 each too, but they all sharing one.
The machine is used for reading the cardiac (heart) rhythm of the baby.

Only 1 at ICU.

Should be one each at Morrison, Antenatal and Labour wards too.

This is used to read the oxygen saturation of the patient.

This is for keeping drugs/medicines for emergency cases.

The wards need a few more as the ones currently used are very old and faulty.

New and latest technologies and equipments are needed to ensure quality health services delivered to the public.
Lack of essential medical equipments in hospitals could lead to wrong diagnoses and in extreme cases loss of life and hence could subject Ministry to avertable lawsuit.

Recommendations  The Ministry should seriously consider replacing or supplementing the existing medical equipments.

 The essential medical equipments that are needed at the CWM hospital should be given urgent attention.
Ministry of Health, Women and Social Welfare Section 19: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Ministry’s Comments The head of bio – medical engineering unit here in CWM Hospital has confirmed that there is a five [5] years replacement plan for medical equipments for the year 2009 and the following machines have been ordered for CWM Hospital.
8 CTG machines 25 infusion pump 2 portable incubators 3 Infant warmers 12 Transport incubators [Requested in 2010 budget] 10 ECG machine 10 Pulseoximeter.

The order # MD 1219/09 has been forwarded to the supplier Yuil Trading Co – operation for their prompt action after the approval from the Ministry of Finance is obtained.
19.33 No Written Agreement for Canteen Operation A written contract or agreement must be entered into with the approved tenderer for the supply of the goods, services or works tendered.

Legal advice must be sought on the draft contact or agreement unless the CEO approves otherwise in writing.53 The audit noted that Operation Food for Life operates a canteen at the Maternity Ward without any written contract or agreement.

Since its occupation in 2006, no rent has been charged to the canteen owners.
In addition, no efforts have been made from the hospital to recover the lost rent.

This issue was raised in the previous years audit report where the Ministry commented that a new tender will be called.

However, as at the audit date54, no tender was called.

The above indicates blatant disregard of the audit recommendation by the Ministry and the decision to continue the canteen services with the Operation Food for Life without any agreement or contract arouse suspicion.
Also there is a loss of potential revenue as no rent is charged.

Recommendations  The Ministry should ensure that a new tender is called for and the contract is awarded in a transparent manner.

 The Market rent should be charged with immediate effect and the outstanding rent arrears should be negotiated and recovered.
Ministry’s Comments In accordance with the Health Inspectors recommendation, the toilet facilities for the respective canteen are required to be initially built prior to calling the tender.

At present the Planning Unit in headquarters are working on the purchasing of the materials required for the building of proper toilet facilities.
53 Section 2.4.16 – Finance Manual 2005 54 30 April 2009 Ministry of Health, Women and Social Welfare Section 19: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.34 Incinerator Every employer shall ensure the health and safety at work of all his/her employees.

Employees are not exposed to risks to their health or safety while they are at his/her workplace.
Employers are to provide and maintain a working environment that is safe and without risks to health and adequate as regards to facilities for their welfare at work.55 The incinerator at the CWM Hospital is used to dispose of bio hazard items such as used injections, amputated body parts, labour ward waste, infectious waste and foetus.

This incinerator serves the central/eastern division and is also hired by the Suva Private Hospital.
Some wards towards the galley and the kitchen are usually affected by the thick black smoke emitting out from the incinerator.

It was revealed that the operator does not have proper time to operate the incinerator.

The Suva Private Hospital is charged $20 per hour to use the CWM incinerator during the weekend.

No approval was sought from Ministry of Finance on the rate charged to Suva Private Hospital.
In addition, a sum of $316,125 was allocated in 2008 budget provisions for the purchase of the new incinerator.

However, as at the audit date56, a new incinerator has not been purchased.

Thick black smoke emitting out from the incinerator could affect the staffs and patients health and exposes the Ministry to heavy lawsuits and penalties for non-compliance with the OHS Act.
Recommendations  The Ministry should consider either installing the environment friendly incinerator or shifting the existing incinerator to a suitable location.

 The approval should be sought from the Ministry of Finance on the rate charged to Suva Private Hospital for the use of the incinerator.
Ministry’s Comments The incinerator ashes have been disposed of at the Naboro Landfill and we are also arranging for the servicing of its burners by the relevant overseas company to avoid the emission of thick black smoke.

A submission will be submitted to the Ministry of Finance to seek their approval for the charges that has been made to the Suva Private Hospital for their clinical waste diposal.
The comments or response in terms of the 2008 budget provision for the purchasing of the new incinerator should be obtained from the Ministry of Health’s Planning unit.

19.35 Mortuary The CWM has two mortuaries and could cater 24 corpses at any given day.

The policy is to keep the dead bodies in the mortuary for a period of 2 days only.

Audit inspection of the mortuary noted the following:  Both mortuaries are over 20 years old and have served beyond its useful life.
The old mortuary was constructed in 1973 and the new one was constructed in 1979.

55 Occupational Health & Safety at Work Act, Section 9 & 10 56 27 February 2009 Ministry of Health, Women and Social Welfare Section 19: Page 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  The hospital is facing difficulties in storing the corpses.

On 12/02/09, audit noted that 31 corpses were kept in both the mortuaries and were rotated on every 2 to 4 hours.
 The 2 day policy could not be strictly adhered to due to the financial constraint of families, police investigation and the non arrival of the immediate families to pay the final tribute to the deceased.

 There is a shortage of pathologists encountered by the hospital.

The Ministry is currently served by one pathologist and has 2 vacant pathologist positions.

Furthermore, it was noted that majority of the tools and equipment in use are either old or need urgent repair and maintenance.
Refer below for details:  The old and derelict post mortem table being used for post mortem of the corpses.

 Old tools such as saw and scissors are used thus causing difficulties in cutting open the corpses.

 The main door of the mortuary needs repairing as it is rusty and the rubber has deteriorated.

This allows warm air to enter inside and thus affecting consistency of the temperature.

 The door of two compartment trays of the mortuary are not working thus it remains open.
 The exhaust fan in the mortuary is not working thus the smell of the decay corpses could not be released outside.

 Trolley that is used to carry corpses is not working.

New trolley is needed that could lift the corpses to the top compartments.

The mortuary attendant finds difficulty in lifting big and heavy corpses.
Refer to the illustrations below: Rusted Mortuary Doors Old Tools Faulty exhaust Fan in Mortuary In addition, the audit noted that a sum of $600,000 was allocated for the Extension of Mortuary in the 2008 budget however, as at the audit date57, the extension of the mortuary has not eventuated.

It was revealed that the Ministry is still at the planning stage of the project.
Delay in the extension and repair and maintenance work at the two mortuaries could result in the Hospital not able to cater for the current need due to increase in mortality rate.

Recommendations  The Ministry should seriously consider the extension of the Mortuary.

 Also repair and maintenance work to be carried out on the existing two mortuaries as soon as practicable.

 The old tools should be replaced to ensure more efficient post mortem services.
 The vacant pathologist position to be filled given the availability of the funds.

Ministry’s Comments Extension of Mortuary 57 12 February 2009 Ministry of Health, Women and Social Welfare Section 19: Page 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Another submission will be submitted to Permanent Secretary for Health to seriously consider the extension of the Mortuary.
Maintenance of the existing mortuary We are in the process of acquiring the relevant quotations and its maintenance work will be carried out as soon as the funds are released from headquarters.

Replacing of old tools The CWM Hospital’s board of survey team has been informed to inspect the respective old tools and its replacement would be purchased once a written confirmation is received from them.
HEADQUARTERS 19.36 Wages Reconciliation The Accounting Head must ensure that payroll reconciliations are carried out fortnightly for salaries and weekly for wages and copies sent to the Ministry of Finance.58 Salaries and wages reconciliation should be prepared on a regular basis in order to detect and take appropriate actions on fraud/error immediately otherwise the recovery may not be possible if the officers resign or retire from the service.
The audit noted that Headquarters failed to prepare and submit their wages reconciliation since 2005 despite this being highlighted in the previous audit reports and reminders received from Ministry of Finance.
Furthermore, as at the audit date59 the following stations did not submit their wages reconciliations for 2008: TABLE 19.28: STATIONS NOT SUBMITTING THEIR WAGES RECONCILIATIONS Station Comments CWM Hospital Tamavua Hospital OPH Samabula St Giles Hospital Vunidawa Hospital DMOCE Nausori Hospital Wainibokasi Hospital Korovou Hospital Navua Hospital Suva Subdivision Levuka Hospital Kadavu Hospital Rotuma Hospital Lakeba Hospital Lomaloma Hospital Head Quarters FSN Virus Lab Reconciliation for pays 50 – 52 not submitted Reconciliation for pays 26 – 52 not submitted Reconciliation for pays 10 – 52 not submitted.
Reconciliation for pays 32 – 52 not submitted.

Reconciliation for pays 5 – 52 not submitted.
No submissions Reconciliation for pays 5 – 52 not submitted No submissions Reconciliation for pays 13 – 52 not submitted Reconciliation for pays 2 – 52 not submitted No submissions Reconciliation for pays 9 – 52 not submitted Reconciliation for pays 18 – 52 not submitted Reconciliation for pays 5 – 52 not submitted No submissions No submissions No submissions Reconciliation for pays 25 – 32 not submitted No submissions 58 Section 26 (7) – Finance Instructions 2005 59 31 March 2009 Ministry of Health, Women and Social Welfare Section 19: Page 41 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Station Comments Lautoka Hospital Labasa Hospital Taveuni Hospital No submissions No submissions No submissions The absence of regular wages reconciliations may result in undetected errors, fraud and salary overpayments, to name a few.
Recommendations  The Ministry should carry out all wages reconciliations in accordance with Finance Instruction 26 (7).

 Disciplinary action should be taken against the Officer(s) responsible for the delay in preparation of the wages reconciliations.

Ministry’s Comments Your finding is noted and we have notified all the Divisions and Sub-divisions on the importance of this report.
A circular to the delay of returns and reconciliation dated 23/2/09 was distributed again and officers delaying this work will be disciplined.

Copies of this report had been sent to all the Accounting heads for further necessary action.

19.37 Recovery of Overtime Paid to Dieticians Any sum or sums due by an Officer to Government may be deducted by the Permanent Secretary for Finance from salary due to such Officer.
An Officer shall be given prior notice of such action being taken.60 The 2006 Auditor Generals Report highlighted that 4 dieticians at the Lautoka Hospital were paid overtime which they were not entitled to.

The Ministry commented that these overpayments would be recovered from the mentioned officers.

However, audit follow up on this issue, noted that only 2 of the 4 dieticians, who were overpaid, namely Ms. Maca Rokomalani and Ms. Makelesi Lala had some portion of their overpayment recovered.
As for the other 2 officers, namely Mr. Manor Mani and Ms. Mereamo Tabuya, no deductions were made.

As at the audit date61, no action was initiated by the Ministry to recover the overpayments from the mentioned officers.

As a result, a sum of $30,597.43 is still outstanding as at 31/12/08.

Refer to Table 19.29 below for details.

TABLE 19.29: DETAILS OF OVERPAYMENT RECOVERY Name EDP No.
2005 $ 2006 $ 2007 $ Total $ Amount Recovered as at 31/12/08 $ Maca Rokomalani Mereamo Tabuya 58351 63143 3,463.05 --- 6,010.71 4,401.73 5,292.03 3,747.10 14,765.79 8,148.83 110.10 --- Amount Outstanding as at 31/12/08 $ 14,655.69 8,148.83 60 General Order 401 61 31 December 2008 Ministry of Health, Women and Social Welfare Section 19: Page 42 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Name EDP No.
2005 $ 2006 $ 2007 $ Total $ Manor Mani Makalesi Lala Total 64459 90364 2,932.51 --- 6,395.56 2,201.40 --- 12,613.84 --- 2,779.00 11,818.13 5,133.91 2,779.00 30,827.53 Amount Recovered as at 31/12/08 $ --- 120.00 230.10 Amount Outstanding as at 31/12/08 $ 5,133.91 2,659.00 30,597.43 The Ministry has failed to take heed of the audit recommendation and honour its commitment, resulting in overpayments not recovered.
Prolonged delay in taking necessary action could result in the outstanding amount not recovered from the officers.

Recommendations  The Ministry should start the recovery of all the outstanding unauthorized overtime payments with immediate effect.

 Also the Ministry should investigate the reasons for the delay in recovering the  overpayments from the mentioned officers.

If recovery is not possible, surcharge action should be taken against the officer(s) responsible for the delay in recovery process.
Ministry’s Comments Overpayment is yet to be fully recovered pending an amount of $1,732.70 which will continue from Pay 21/09.

For Maca Rokolomani the rate of recovery has to be increased to enable full recovery of the balance as the amount is quite substantial.

The AO Salary has been informed to increase the recovery rate for Maca Rokolomani which will be carried out in Pay 21/09 together with other officers, Mereamo Tabuya and Manor Mani.
19.38 Overpayment of Salary An officer, who has resigned, deemed to have resigned or terminated shall forfeit all the rights and privileges of his office from the date decided by the Commission.62 An officer who resigns without 63 giving 30 consecutive days notice may be required to pay 30 days salary in lieu of notice.

.

A total of $177,397 as of 31/12/08 was recorded as overpayment of salary by the Ministry of which $74,979 (42%) was overpayment upon resignation.
This is a result of divisional officers failing to advise salaries section at Headquarters on time.

Refer to Table 19.30 below for the overpayment breakdown.
TABLE 19.30: BREAKDOWN OF OVERPAYMENTS Overpayment Upon: Retirement Resigned Deemed to resigned Passed away Terminated Leave without pay Amount Overpaid $ 2,073.20 74,978.94 7,220.16 3,188.42 48,348.77 14,866.03 62 General Orders 222(d) 63 General Orders 222(a) Ministry of Health, Women and Social Welfare Section 19: Page 43 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Overpayment Upon: Did not resumed duty Missing from work Study leave without pay Suspension from duties Total Amount Overpaid $ 16,162.11 4,355.85 3,255.27 2,948.23 177,396.98 Refer to Appendix 19.7 for details.
Similar concerns were raised in the previous years audit report, however no corrective action has been taken by the Ministry to rectify this issue.

Audit follow up on the previous year’s overpayment noted that in numerous cases the recovery process is yet to be initiated.

Refer to Appendix 19.8 for examples: Laxity by the station officials has resulted in the overpayments.

Recommendations  Disciplinary action should be taken against officers responsible for the overpayment.
 The Ministry should implement an effective and efficient communication process between the various hospitals, stations, centres with Headquarters so that all correspondences relating to retirements, resignations, terminations are processed in a timely manner to avoid overpayments.

 Concerted effort should be made to recover the overpayments.

Ministry’s Comments Your findings and recommendations are noted and appropriate action will be undertaken immidiately.
19.39 Vacant Posts As at the date of the audit64, the Ministry had 330 vacant positions.

The vacant positions ranged from doctors to other support officers.
Refer to Table 19.31 below for details: TABLE 19.31: VACANT POSTS Position Doctors – Consultants to Medical Officers Dental Officers – Principal to Dental Hygienists Nurses - Manager Nursing Services to Staff Nurse Pharmacist- Principal to Pharmacy Assistant Technical Officer – Higher Grade to Assistant Health Officer – Inspectors to Assistant Health Inspectors Physiotherapists - Superintendent Physiotherapists to Junior Therapist Dietician Orderly Secretary Storeman Administrative Post – Admin Officer to Executive Officer Accounts – Assistant Accounts Officer to Clerical Officer Other Support staffs No.
of Post Vacant 88 29 116 20 9 8 5 1 8 1 4 6 18 17 64 16 March 2009 Ministry of Health, Women and Social Welfare Section 19: Page 44 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The above table shows that 71% of the vacant post comprised of Doctors, Dental Officers and Nurses.

Prolonged delay in filling the vacant posts could compromise the quality health service delivery and also burden the existing medical staffs with the increased workload.
Recommendation The Ministry should ensure that vital vacant posts are advertised and filled to ensure efficient and effective health service delivery.

Ministry’s Comments 38 vacant positions advertised in 2007 were filled this year.

In 2008 alone, 163 vacant positions were advertised and below is the summary table regarding the vacancies: Total No.

of Posts Advertised in 2008 163 No.

of positions filled in 2008 9 No.

of positions filled in 2009 104 No.


of posts withdrawn 46 Pending 4 Staff turn-over within the Ministry is rather high.

46 [28%] of the advertised positions have had to be withdrawn due to officers not fully meeting the MQR.

It is to be noted that new graduates from FSN & FSM in the New Year usually fill in vacant positions at the lower grades.

However, vacancies in the higher grades are difficult to substantively fill due to the failure to fully comply with the MQR.
Every effort has been made to have all vacant positions advertised this year and Draft Ads are currently with PSC for 109 positions whilst 163 has been submitted for CAF clearance by Ministry of Finance.

Constraints Majority of the positions were filled in 2009, due to the non-availability of “assessment reports”.

19.40 Consolidated Allowance Consolidated allowances are paid to nurses based at nursing stations, rural areas and not in health centers or urban hospitals.
It is normally paid to District Nurses in their area of operation where there is no Medical Officer employed either in the Nursing Station or in Health Centers.

Some nurses were still paid consolidated allowances despite working in urban hospitals and health centres.

As at 31/12/08, $179,207.29 was paid out as consolidated allowances.

Of this amount, $77,398.43 or 43% were paid to nurses who were not entitled to consolidated allowance.

Refer to Appendix 19.9 for details.


Station supervisors failed to inform salaries section about nurse transfers so that payments of consolidated allowances could be ceased.

Public funds are wasted as a result of these payments.

Recommendations  The supervisor in charge and/or the Personnel Section of the Ministry should inform the Salaries Section immediately upon the transfer of the nurses concerned.
 Payment of consolidated allowance to nurses at urban hospitals and health centers should cease immediately.

Ministry of Health, Women and Social Welfare Section 19: Page 45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  Recoveries should be made from the nurse’s salaries immediately.
 The matter should be investigated and the necessary disciplinary action should be taken against the officers found to be negligent in performing their duties diligently.

Ministry’s Comments EDP No.


33452 33505 33482 33570 Name Station ViemaQorovakarua Bulou Keleni Akariva Ravula Ro Anaseini K Waivaka N/S Bukuya H/C Waiyevo H/C Moturiki N/S 33587 Macanawai S Sera Molikula 33589 Isoa Natui 22227 33672 Leba Mereani 33679 Makereta Rosi Roseruvatu A 33718 Sera Naiti 33732 Sokoveti Ravula 33741 Tokasa YM 33748 Timaima Wati 33764 Elenoa.
Neioba 33811 Nanise Natoga 33917 Angilina Sophie 33948 Atelini Naini 33804 Rajesh.Chand 33925 Loata Marama 34015 Ifereimi R 33924 Denisia Naikusa 33807 Yabakidua T 31492 Bernadette LN 31644 Vere Miriama 31763 AlanietaSenicagi 321.91 Daiana Rainima 32347 Bentitai.Tarome 32478 Vani Rainima 32483 Unaisi Basecala 32588 DuilomaIlisapeci 32650 Tokasa Belebele 32821 33038 Milika Qilu 33057 33081 33120 33177 33202 33207 33214 33235 33239 33251 33286 33364 33590 Repeka Tinaisoni Viniana Qalo Iliseva Labalaba Salote Roma Unaisi Mateinai Vitalina R Jovilisi Qiboni Asenaca Adi Divuso Turaga Jone Vakasa NoraVasuikorolevu Inise Teira Sera Vodoimuri Lomawai H/C Nadi H/C Nadi H/C Kabara N/S Udu N/S Onoi Lau N/S CWM H Yasawairara N/S Nacavanadi N/S Namarai H/C Nanoko N/S Lodoni H/C Navua H/C Vunivutu N/S Cikobia N/S Yaqeta N/S Naweni N/S Momi N/S Wainikoro H/C Moala H/C RKS N/S Nausori H/C Nabasovi N/S CWMH Ltka/Yswa H/C OPH-Lbsa Somosomo N/S Soso N/S Ravitaki N/S Naweni N/S Narokorokoyawa Korovisilou H/C Naqara N/S Nausori H/C Labasa Hospital Vunidawa H/S Natewa H/C Sgtka H/S Kabara H/C Narocake N/S Navua H/C Dogotuki N/S Comments Amount to be Recovered $ 156.84 To be recovered 247.56 Recovered wef.
Pay 15/09 2,146.30 To be recovered.

122.06 A/Leave wef.25/8-27/9/08; to be recovered.

683.10 Due to officer; no MO/NP.

1,631.76 To be recovered.

323.84 To be recovered.

683.10 Due to officer since Aug.05.

445.60 M/L & A/L;to be recovered.

379.50 To be recovered; officer was on leave.

128.02 To be recovered.

Now at Fulaga N/S.

2,063.62 Due to officer since 24/4/07 501.21 Due to officer.

2,104.96 No NP/MO; therefore due to officer.

665.64 Due to officer.

1,946.62 Recovered wef.

Pay 10/09.


215.32 To be recovered.

843.78 Due to officer 1,469.93 Due to officer.

361.68 Due to officer.

1,245.76 Due to officer.

1,954.69 Due to officer since 3/9/07 1,645.02 To be recovered.

1,450.96 Recovered wef.

Pay 15/09.

207.28 Due to officer.

632.70 Recovered wef.

Pay 15/09.

745,41 Recovered wef.

Pay 7/09.

732.32 Recovered wef.

Pay 19/08.

399.88 Due to officer since 23/7/05 1,744.86 Due to officer; O/T not pd.

911.26 FSN (PH); recovered wef.

Pay 14/09.


457.08 FSN (Midwif); to recover portion.

1,587.56 Due to officer.

1,587.56 Due to officer wef.2005 - 09.

1,436.76 Due to officer 325.08 To be recovered; was @ Navua H 1,436.76 Due to officer wef.

2004 398.86 To be recovered.

177.78 To be recovered.

1,365.00 To be recovered.

829.64 To be recovered 1,540.76 To be recovered 1,540.76 To be recovered.

645.44 Due to officer wef.4/6/07 till todate.

1,973.40 To be recovered.

1,369.50 Due to officer since 2007.


Ministry of Health, Women and Social Welfare Section 19: Page 46 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No.
Name Station Comments Amount to be Recovered $ Vika Seru 33331 Lusia Vakataukale 33463 Fulori Leweni 33361 Latileta Salia 33776 Kessaia Rogoyawa 33825 Ulamila Naulivou 33903 Dali Tabua 33970 Talanuku K 32135 Liku Vonokula 32614 Sera Tamoi 33311 Ro Iva Q 34058 34064 Rusila Aditora 34036 Miliana Tuvou 32482 33611 33243 32724 Mereadani M 33695 34017 34123 Wilfred Vono Vakaloloma Yavala Ateca Bull Emeline V Naomi Qalotaki Losalini Popua Namau N/S Bua N/S Wainibokasi H Dobuilevu N/S Mualevu N/S Yalobi N/S Lbsa Hosp Namuamua N/S Tokaimalo N/S Mokani H/C Vunisea H/S Soso N/S Namara N/S Beqa H/C Bagasau N/S Suva H/C Vunidawa H/C Taveuni Hosp Kioa N/S Cicia N/S 2,224.61 Due to officer wef.
Nov.07 – Feb.09.

1,492.18 Due to officer 2,184.76 Recovered wef.

Pay 12/08.

1,434.09 Due to officer.

1,976.49 Due to officer.

1,875.57 Due to officer; @ Yalobi wef.

24/12/07 966.28 To be recovered 2,693.69 To be recovered 2,587.00 Due to officer 623.12 To be recovered 1,417.01 Due to officer 1,417.01 Due to officer 1,731.62 Due to officer 1,196.34 Due to officer.

1,941.36 Due to officer since 17/10/07 todate.
1,367.21 To be recovered 237.80 To be recovered 1,531.29 To be recovered 228.90 Due to officer 152.60 Due to officer 19.41 Failure to Initiate Disciplinary Action An employee must use Government resources and assets in a proper way.65 An employee must not make improper use of official information or of the employee’s duties, status, power or authority in order to gain or seek to gain, a benefit or advantage for the employee or for anyone else.66 An employee must behave honestly and with integrity in the course of employment in the public services.67 The audit noted that a number of staffs were implicated in various disciplinary cases.
However, some staffs are yet to be disciplined by the Ministry, whilst others disciplined leniently.

Some staffs implicated were either terminated or left the Ministry without the misappropriate sum being recovered from them.

In addition, some of these cases were not reported to police whilst those reported are yet to be resolved.

Refer to Appendix 19.10 for details.


Failure to take timely and appropriate action would allow room for repetition of cases and could serve as a deterrent to other would be offenders.

Also prolong delay allows the offenders to escape without being disciplined.

Recommendations  The Ministry should investigate the cases highlighted by audit and take appropriate actions against the officers implicated.
 The senior officers who failed to instigate disciplinary actions highlighted by audit should also be disciplined.
65 Public Services act – 1999, Section 8 66 Public Services Act – 1999, Section 10 67 Public Services Act – 1999, Part 2, Section 1 Ministry of Health, Women and Social Welfare Section 19: Page 47 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  The Ministry should make a concerted effort to recover the amounts misappropriated despite the employee being terminated or resigned from service.
Ministry’s Comments (1) Alipate Drulidruli The officer was terminated by the Public Service Commission after his hearing at Labasa held on 10/07/08.

TERMINATED (2) Ana V. Qadrodro Warning letter forwarded to the officer on 17/01/08.

Recovery was affected on pay 1 of 2008 and completed in February of 2009.

FULLY RECOVERED (3) Misaele Tuinaqaidamu The officer was terminated due to the seriousness of the offence committed at CWM Hospital.
TERMINATED (4) Mere Marama The officer has been transferred to FPS wef 24/12/08 and issued with a warning letter.

Jitendra Lal (5) The officer was terminated together with Alipate Drulidruli by the Public Service Commission after his hearing at Labasa held on 10/07/08.

TERMINATED Salote Takala (6) The officer was charged and she replied to the charges on 14/04/08.

The Disciplinary Committee deliberated on her case and agreed that she should be warned for her misconduct & to work under supervision.
1st WARNING issued & TRANSFERRED to LAUTOKA HOSPITAL (7) Amelia Turagabeci She was deemed to have resigned from the service with effect from 28/01/08 for continuous absence from work.

TERMINATED (DEEMED TO HAVE RESIGNED).

(8) Ashad Ali The Disciplinary committee deliberated on his case and agreed that he be cautioned for his attendance/late arrivals.

CAUTION LETTER (DATED 12/02/08) (9) Ashad Ali Letter to be written to officer to explain his actions and why he should not be surcharged.
19.42 Pending Previous Years Disciplinary Cases An employee must use Government resources and assets in a proper way.68 An employee must not make improper use of official information or of the employee's duties, status, power or authority in order to gain or seek to gain, a benefit or advantage for the employee or for anyone else.69 An employee must behave honestly and with integrity in the course of employment in the public service70.
68 Public Service Act -1999, Section 8 69 Public Service Act-1999, Section 10 70 Public Service Act 1999, Part 2, Section 1 Ministry of Health, Women and Social Welfare Section 19: Page 48 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Our follow up on previous year’s disciplinary cases noted that a number of cases are yet to be resolved.

These cases have been pending for quite a considerable period of time.
Some of the staffs implicated had left the Ministry.

The Ministry had not taken disciplinary and surcharge actions despite a commitment made during the discussion of the previous audit reports.

Refer to the Appendix 19.11 for details.

Failure to take prompt action against the officers implicated indicates elements of favouritism which could be catalyst to abuse of public funds and could serve as a deterrent to other would be offenders.
Also prolong delay allows the offenders to escape without being disciplined.

Recommendations  The Ministry should investigate the cases highlighted by audit and take appropriate actions against the officers implicated.

 The senior officers who failed to instigate disciplinary actions highlighted by audit should also be disciplined.

Ministry’s Comments EDP/ TPF No.


64359 Name Status Naushad Buksh Forging Quotations and fraudulently assisting associate companies with $38,442 worth of procurements Taken/ officer Action Recommendation be The to from transferred away FPS pending the outcome of Police the investigation.

45858 Matai Matakitoga Authorized $54,661 to J.J Roedan Ace and $4000 to SDA youths without any authority.

No action taken to date.


Result/Progress The officer’s case was reported to the Police and the officer has been taken in for questioning a few times at the Central Police Station.

relevant evidence The Ministry will be informed on the progress of the case once all the are received/located.

The payment of the $4,000 was done by Mr. Matakitoga since he was the Accountant at the time however the authorizing officer was Mr Tamanitoakula.
The SDA youths were brought in by Mr Alipate Gonerogo on the approval of Mr Tamanitoakula.

The $54,661 paid to J.J Roedan was paid out by Mr Matakitoga since he was the Accountant at the time however the authority was given by Mr Tamatoakula and Dr Tuiketei.

Ministry of Health, Women and Social Welfare Section 19: Page 49 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP/ TPF No.
45858 Name Status Matai Matakitoga LPO’s a whilst Split repairing Dental Caravan GM 385 at Marine Motors for $11,890.

Taken/ Action Recommendation The officer was suspended and the charged by Ministry.

Result/Progress The officer was REINSTATED and REPRIMANDED by the Public Service Commission after his hearing on 09th July 2009.

He was reinstated to Ministry of Agriculture.

to conduct repairs.
to conduct repairs.

The the The Commission requested Ministry further investigation on the same and to identify the officers responsible for the investigation report has been forwarded to the Commission for deliberation and decision.

Committee members responsible to be directed to pay or face disciplinary action.

To recover the cost of the bus from Committee members responsible It was agreed to recover money from those officers responsible.
The payment was approved by the than Minister, Mr Solomoni Naivalu and the PS, Dr Lepani Waqatakirewa as indicated in the two voucher.

payment gentleman are no longer in the service.

The Paid Raiwaqa Buses Limited for cost of hiring 60 seater bus for taking the Ministry Choir to the Methodist Church Annual Conference from Suva/Nausori/Suva for the total sum of $250.00 Paid Siteri’s Catering Services for cost of providing catering for the Ministry of Health’s Sports Day.
Dinner on 29/10/05 for $700 people @ $7.50 and lunch for 400 people @ $7.50 = $8250x 50% = $4125 Paid catering Services for MOH Sports day (2x $245.00) Siteri’s Health Staff Health Staff Health Staff Health Staff LPO #48374 18/8/06 LPO #36150 10/28/05 LPO #36150 10/28/05 LPO #40177 16/2/06 It was agreed to recover money from those officers responsible.

The payment was approved by the than Minister, Mr Solomoni Naivalu and the PS, Dr Lepani Waqatakirewa as indicated in the payment voucher.
The two gentlemen are no longer in the service.

Investigation to be conducted.

Life Paid Insurance Corporation of India for damages to the partitions in the staircase of LICIJ during building health central/eastern the services renting of premises.

The loss was $480.00 Further investigation will be conducted to determine as to why PSC was not advised and the cost of repairs to be met from Accommodation Office found vote.

Officers be responsible surcharged as recommended.


will Ministry of Health, Women and Social Welfare Section 19: Page 50 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP/ TPF No.

LPO #30728 11/08/05 14623 Name Status Health Staff Paid Lala Store for cost of providing lawyers legal court uniform for Legal Officers of Ministry of health.

The cost incurred was $685.00.


to Gyan Prakash Three (3) Leco (mosquito spraying) machines used by Health Officers were taken Jeral Auto Services on 2/11/06 for repairs.

The company was paid $2,700 on 20/12/06 but it was revealed that three of none machines been repaired to date.

Jeral Auto ceased Services operations in early 2007.

The non adherence to the cold chain policy and lack of awareness of the policy resulted in the vaccines thus totaling $39,272, wastage of public funds.
Pharmacists at the Labasa Hospital (Sunjita Nand) the have Taken/ Action Recommendation It was agreed that the amount to be recovered from the officer’s salary and will communicate with your office further on this.

Your comments are noted.

The Ministry’s Disciplinary Committee has examined the issues raised with a view of taking disciplinary action against officer’s the responsible.
It was agreed to further query officers on duty that particular during determine to Sunday damages the whether could have been avoided and not due to negligence it be of duty.

Should negligence proven appropriate disciplinary action will be taken against those responsible.

as Result/Progress The Ministry will write to the Legal Officer who is no longer in the service to meet the cost of the uniform.

The officer has retired.


Explanations were sought from the pharmacist and all other officers responsible plus the explanation of the DNHS at the time, Dr. Ami Disciplinary Chandra.

the Committee explanations be to Finance for deliberation and decision.

that forwarded The agreed No feedback from Finance.

To follow up with Finance.

18901 Penina Cirikiyasawa Failed to enter into a contract with Falekau South Pacific Limited.
of Advance $100,000 were made with the first $60,000 on 13/01/05 and $40,000 on 27/09/05 payments investigate would Management to further the officers determine the responsible advance payment and take appropriate disciplinary action.

for forwarded The officer is currently with FPS The submission from the Ministry was Finance recommending surcharge for the officer’s officer responsible.

other and to Mrs Cirikiyasawa’s surcharged has been waived by Finance together with the other officer’s responsible.
Ministry of Health, Women and Social Welfare Section 19: Page 51 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP/ TPF No.

Name Status Tamavua Garage As reported in the 2006 audit report, some vehicle parts had gone missing whilst taken for repairs at private garages, refer below for details: GN132, was repaired at it Shika Motors where was that discovered $4,414.75 worth parts were missing.
GL064 was parked at Marine Motors and upon the dismantling Tamavua garage it was discovered parts were missing.

that at Tamavua Garage CO362 had parts missing when to Shika taken Motors for repairs.

The 2006 audit report of highlighted cannibalizations of vehicle parts.

cases Tamavua Garage that noted Audit $9,079.00 worth of tools and were machines missing from the garage.

Taken/ Action Recommendation Your comments are noted.

This will be covered full under investigation be conducted.
Officers found negligent and who were responsible for the losses will be disciplined.

the to to for the Your comments are noted.

This will be covered full under investigation be conducted.

Officers found the responsible alleged cannibalization of motor parts will be disciplined.

Your comments are noted.

We will keep your office updated once a Board of Survey is completed and appropriate action taken on all missing tools mentioned.
Result/Progress Mr. Alipate Gonerogo was the Transport officer at the time.

The officer has been terminated from the service by the Public Service Commission.

Mr. Alipate Gonerogo was the Transport officer at the time.

The officer has been terminated from the service by the Public Service Commission.

Mr. Alipate Gonerogo was the Transport officer at the time.

The officer has been terminated from the service by the Public Service Commission.
No Board of Survey was conducted to determine and verify the missing tools worth $9,079.00.
19.43 Unprofessional Conducts An employee must use Government resources and assets in a proper way.71 An employee must not make improper use of official information or of the employee's duties, status, power or authority in order to gain or seek to gain, a benefit or advantage for the employee or for anyone else.72 An 73 employee must behave honestly and with integrity in the course of employment in the public service.
71 Public Service Act -1999, Section 8 72 Public Service Act-1999, Section 10 73 Public Service Act 1999, Part 2, Section 1 Ministry of Health, Women and Social Welfare Section 19: Page 52 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The audit of the personal files noted the following anomalies:  On 09/11/08, Mr. Iliesa Valentine, a driver at the Taveuni Hospital whilst being on duty, was under the influence of liquor, sexually harassing a female ward attendant, threatening other hospital members, swearing and abusing while inside the hospital premises along with other drunkard acquaintance.
 Maca Rokomalani (Head of Food Service) of Lautoka Hospital was noted to have poor working relationship and has tendency of growling at fellow staffs in front of others and on the phone leading to staffs having low morale.

 On 20/06/08, a complaint was made against Dr Kaul, an expatriate Doctor based at Lautoka Hospital for being absurd and abusive to a patient and the guardian coming for a treatment.

The Officer behaved unprofessionally to the complainant and the patient.
 At 8.25am on Tuesday 24/06/08, a Mr Nareindra Kush was rushed to the Nadi Hospital, despite the patient profusely complaining of breathing problems, the attendant doctor, Dr Anareta, failed to diagnose the deceased promptly thus resulting into his death.

 On 23/01/08, a complaint was lodged by Mr Sikeli Turaga against Dr. Vishal Bhindi for negligence to perform his duty which resulted into death of Mr. Mikaele Turaganivalu, the complainant’s brother.
There could be other disciplinary cases of similar nature as only sampled Personal File’s were checked.

It was also noted that the complaint file maintained is not updated and the documents are susceptible to be tampered with or removed without being detected.

The failure of the Ministry to take action against offending officers raised serious doubts on its disciplinary mechanism and that the possibility of favouritism cannot be ruled out.
Further it could result into extravagant expenditure if any litigation actions are filed against the Ministry.

Recommendations  The Ministry should investigate the above cases, take disciplinary actions if warranted against the officers concerned and report the matter to PSC for breach of PSC Service Act.

 The compliant file should be updated to keep track of complains made against the medical professionals and other support staffs.

Ministry’s Comments EDP/ TPF No.


TH921 Name Status Action Recommendation Taken/ Result/Progress Iliesa Valentine Alleged to have been under the influence of liquor when he sexually harassed a female ward attendant and threatened other hospital members and also swearing and abusive inside the hospital premises.

The officer was suspended pending the outcome of the investigation on his case.

Investigation was carried out and the case was also reported in Taveuni.
to Police Disciplinary The Committee deliberated on his case and agreed should be that he and Reinstated allocated other duties within the Hospital.

Ministry of Health, Women and Social Welfare Section 19: Page 53 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Name Status EDP/ TPF No.
Maca Rokomalani Dr Kaul Expatriate Dr based at Ltk Hospital Dr Anareta Nadi Hsopital Vishal Dr Bhindi to have poor Alleged working relationship and has a tendency of growling at fellow staffs in front of others and on the phone leading to staffs having low morale.

Alleged to be absurd and abusive to patient and the for a guardian coming treatment.

officer The behaved unprofessionally to the the complainant and patient.

At 8.25am on Tuesday 24/06/08.


a Mr Nareindra Kush was rushed to the Nadi hospital, despite the patient profusely complaining of breathing problems, the doctor failed to diagnose the deceased promptly resulting into his death.
On 23/01/08 a complaint was lodged by Mr. Sikeli Turaga against the doctor for negligence to perform his duty which resulted into the death of Mr Mikaele the Turaganivalu, complainants brother Action Recommendation Taken/ Result/Progress Numerous attempts have been made by senior officers to deal with the officer’s attitude problem but she’s always involving her husband who is an Army officer.

Report was not received Disciplinary the by for Committee investigation and deliberation.
The officer needs to be transferred away from Lautoka and to work new under a management.

She colludes with some of the senior staff in the West.

DMO Western & should give SDMO their explanation on the case.

Report was not received Disciplinary by the for Committee and investigation deliberation.

DMO Western & SDMO should give there explanation on the case.

Report was not received Disciplinary the by for Committee investigation and deliberation.
19.44 Overtime Payment Overtime work shall be approved only in essential circumstances and on the specific approval of the Permanent Secretary or the Head of Department.74 For a good internal control it is obligatory for Ministries and Departments to minimize working overtime.

As at 31/12/08, the overtime allowances claimed by the staffs amounted to $2,896,340.
Refer to Table 19.32 below for details: TABLE 19.32: DETAILS OF OVERTIME ALLOWANCES PAID Month Overtime Payments for 2008 Lautoka Amount $ CWM Amount $ Labasa Amount $ January 19,437.16 57,468.76 36,724.35 74 General Order 467(a) Ministry of Health, Women and Social Welfare Section 19: Page 54 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Month February March April May June July August September October November December Totals Overtime Payments for 2008 Lautoka Amount $ CWM Amount $ Labasa Amount $ Out of $2,896,340, $523,382 or 18% was claimed by the Lab technicians.
Audit noted that in some cases, staff’s overtime claim for the year was more than their annual salary.
The summarised details of Lab technicians overtime claim for the past three years are as follows: TABLE 19.33: OVERTIME ALLOWANCES PAID TO LAB TECHNICIANS Hospital CWM Lautoka Labasa Total 2008 $ 251,511.86 106,863.11 165,007.09 523,382.06 2007 $ 184,767.97 82,303.16 158,806.74 425,877.87 2006 $ 160,983.82 67,334.36 121,521.27 349,839.45 The overtime claim by the Lab Technicians has been increasing for the past three years.
Audit is of the view that the overtime claimed by the Lab technicians are excessive and unwarranted.

Refer to Appendix 19.12 for details.

In very important circumstances, it is obligatory to work overtime, however considering the extravagant payments it warrants the immediate re-look at the current arrangement in place.

Such practice has resulted in excessive overtime costs which subsequently affect the Ministry’s budget.
Recommendations The Ministry should: consider practising the shift work to curtail the excessive overtime.

  make all the concerted efforts in ensuring the overtime claims are reduced to acceptable level  and the works are completed within the normal working hours.

should hire additional lab technicians to supplement the current staffs in order to cater for 24 hours service.
Ministry’s Comments A verification and analysis of the Laboratory Overtime and other Units of urban hospitals was carried out by a senior officer where rosters are made in which officers are put on shifts from 27/04/09 to arrest the increase in overtime.
Ministry of Health, Women and Social Welfare Section 19: Page 55 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The area of concern is Microbiology where officers are worked during the weekend and public holidays and Seriology are required to work when the need arises especially on screening of blood for HIV and hepatitis”B”hepatitis”c” vedryl.

The sections that are doing shift work are Blood Bank, Hematology and Bio Chemistry.
They are having three (3) shifts i.e.

Monday to Friday from 8.00am to 4.00pm and second shift from 4.00pm to 12pm and the third shift is from 12.00pm to 8.00am.

For these three (3) sections, they work on Saturday, Sunday and Public Holidays and they are doing overtime at reduced no of 2, each shift.

On shift work, if somebody does not turn up on second and third shift than we to call another technician to replace the officer and that will be overtime.
19.45 Failure to Instigate Disciplinary Action against the Storeman An employee must behave honestly and with integrity in the course of employment in the public service75.

An employee must act with due care and diligence in the course of employment in the public service76.
A breach of public service code of conduct by an employee is a ground for disciplinary action under the regulations of the relevant commission.77 The 2006 Auditor General’s Report highlighted the involvement of Mr. Ramesh Ram in fraudulent activities whilst being employed as store man medical stationeries at the Headquarters.

Refer to Table 19.34 below for details of short supplies: TABLE 19.34: DETAILS OF SHORT SUPPLIES LPO No.
38731 40781 38661 Supplier Item Ordered Qty Ordered Qty Received Utell Prints Fiji Limited Prescribtion Pads 10,000 6,000 Amount Paid $ 9,200 Pacific Printery Ltd Pacific Printery Ltd Dressing Pads Medi - Clips 5,000 10,000 Records not available Records not available 5,200 9,750 Cheque No.

082976 of 25/01/06 085967 of 01/03/06 082688 of 20/01/06 Particulars Delivery doc.

No.1587 of 18/01/06 & 1611 of 20/02/06.

Invoice No.

9095 Invoice No.


8997 In addition, the audit noted variances between the headquarters issued stationery records and the hospitals received records.

It indicates that the stock issued records might have been tampered with to conceal the short supply.
Our follow up on the progress on the above case noted the following developments:  The store man was posted to the Fiji Pharmaceutical Services with effect from 02/05/06 in order to allow for the investigation to be carried out by the internal audit unit.

The internal audit noted the same anomalies; however no disciplinary action was taken against the Officer as to the date of audit.78  The officers confidential complain file together with his personal files went missing from the registry.
It was revealed to audit that the files contained all the necessary records regarding the above allegations and due to unavailability of the records the case was not referred to the PSC and Finance for necessary disciplinary action.
75 Public Service Code of Conduct, Section 6 (1) 76 Public Service Code of Conduct, Section 6 (2) 77 Public Service Code of Conduct (Grounds for Discipline) 78 14 April 2009 Ministry of Health, Women and Social Welfare Section 19: Page 56 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  The case was referred to police for further investigation on 01/09/08 after lapse of more then 2 years since when the anomalies was highlighted.
The progress on this case is unknown to the Ministry.

 Whilst being engaged at the Fiji Pharmaceutical Services, the officer failed to take on charge of the items delivered under indent 299/07 on 04/12/07; thus incurring loss to Ministry amounting to $3,800.

He was surcharged $1,900 (50%) on 15/09/08 and as at the date of audit79, no recovery action has been instigated.

 The Officer was again implicated in the loss of 45 packets of blood monitoring strips amounting to $1,502.55.
As a result, he was transferred to CWM hospital with effect from 03/03/08.

The audit could not authenticate if any disciplinary action was taken against the Officer.

 The Officer proceeded on annual leave with effect from the 13/08/08 to 25/09/08 but failed to resume duty on 26/09/09.

However, on 10/10/08 he tendered in his resignation.

The Officer’s resignation was not accepted due to his pending surcharge.
The audit also noted that his salary was ceased on 06/10/08 resulting into salary overpayment of $223.85 which is yet to be recovered.80  The Officer rejoined the Ministry with effect from 24/02/09 and was posted to the CWM hospital as a storeman.

No Disciplinary action was taken by the Ministry against the Officer as he had failed to resume duties on time.
Prolonged delay in resolving the case and failure to take any disciplinary action against the implicated Officer indicates Ministry’s blatant disregards of the government standing regulation.

Also suspicion of favouritism and collusion of some of the officials within the Ministry could not be ruled out as important files were missing from the Registry.

Recommendations The Ministry should: follow up with Police on the progress of this case.
  provide satisfactory explanation as to why the Officer was rehired as a storeman despite his previous fraudulent activities.

Ministry’s Comments The officer’s case has been reported to Police for investigation and for necessary disciplinary action if warranted.

A few officers from the Ministry, namely Nina, Joseph, Mary and Sunia have been interviewed by the Police this year regarding Ramesh’ Ram’s case.

The Ministry will be informed of the findings once it is finalized.
79 26 May 2009 80 16 June 2009 Ministry of Health, Women and Social Welfare Section 19: Page 57 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.46 Former Permanent Secretary’s Laptop An employee must use government resources and assets in a proper way.81 A Chief Executive Officer must uphold and promote the public service values and is bound by the public service code of conduct.82 The audit of the IT records noted that no annual board of survey was carried out in 2008 or in prior years to ensure the existence of the IT items such as computers, laptops and printers.
The former Permanent Secretary failed to return the laptop when he resigned from the service with effect from 31/12/08.

However, audit noted that the laptop was returned to the Ministry on 17/03/09.

Ministry’s IT Officer revealed that the mother board and one of the keys of the laptop was damaged and needed replacement in order to make it useable again.

The laptop was valued at $2,995 and it was recommended by the IT Officer that it would be uneconomical to have the laptop repaired.
The above findings indicate negligence on the part of the former Permanent Secretary to exercise due diligence and care of the government resources assigned to him while in cause of employment.

Recommendations  The Ministry should inform and ask the former Permanent Secretary to meet the cost of  repair or a replacement laptop, which ever is economical.

IT Officer should carry out regular inspection and verification of IT equipments to keep a proper record of all the items issued.
Ministry’s Comments The Ministry will write to the former Permanent Secretary (Dr. Lepani) in this regard.

19.47 Unaccounted Funds The Ministry will ensure that funds are specifically used for the purpose they are provided, as set out in this agreement and it’s financially accountable as per its regulations and rules.

The Ministry is responsible for safeguarding the funds provided by SPC against any loss or theft and shall make restitution if the funds or any part thereof are lost or stolen.
The Ministry will submit a financial statement showing total expenditures incurred.83 The Ministry of Health was provided with financial assistance amounting to US$20,000 (FJ$30,912) jointly from the UNFPA, UNICEF and Secretariat of the Pacific Community (SPC) in 2008 to carry out its peer education exercise.

The audit noted that a sum of $24,508.80 was expended as the wages to the peer educators.

However, no acquittal report was provided for audit scrutiny on request.
The coordinator of the programme informed the audit that the remaining funds amounting to $6,402.20 was absorbed into the system.

However upon verification with the Accounts Section, audit could not ascertain whether the amount was actually absorbed into the AHD account.
Failure to properly 81 Section 11.4.1 – Finance Manual 2005 82 Public Service Code of Conduct, Section 8 83 Agreement between the MOH and the SPC Ministry of Health, Women and Social Welfare Section 19: Page 58 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ administer the funds could lead to unauthorised usage and misappropriation of funds.

Future grants inflows could also be affected if grant agreement is not honoured.
Recommendations The Ministry should:  should investigate the whereabouts of the remaining $6,402.20 and if warranted take necessary disciplinary action against the responsible Officer(s).

 honour its grant agreement as it could affect the future relationship.

 ensure that acquittal reports are prepared and submitted to the donor agency and also a copy retain for audit verification purposes.
Ministry’s Comments Your finding is noted and an investigation of the funds will be carried out to determine the utilization of remaining fund and other recommendation will be executed soon.

19.48 Negligence Claims The Office of the Solicitor General was responsible to meet all payments arising out of claims against the state for negligent practices by Civil Servants until the end of 1997.
Since 1998, the Ministry pays litigation cost for negligence payment due to medical negligence caused by Medical Officers.

A sum of $70,000 is allocated annually in the Ministry’s budget to cater for the litigation claims, resulting from the negligence in the health service delivery.

Payments totalling $2,644,780 were made between 2002 and 2008 as negligence payments.

This money could have been used for other urgent purchases had the officers of the Ministry taken more care in the conduct of their work.
Refer to Table 19.35 below for details.

TABLE 19.35: DETAILS OF NEGLIGENCE PAYMENTS Year 2002 2003 2004 2005 2006 2007 2008 Total Amount Paid $ 20,000 305,226 100,928 146,670 407,834 642,999 1,021,123 2,644,780 In 2008, the following negligence payments were made.
TABLE 19.36: DETAILS OF NEGLIGENCE PAYMENTS FOR 2008 Parties Involved Particulars of Case Indra Wati Vs Attorney General of Fiji Shireen Aiyub & Losana Burua David Willam Vs Medical Superintendent Plaintiff, a 2 months old infant, on 23.04.03 was taken to the Failure to ensure that the deceased Raj Kumar Singh was provided with proper care prior to his operation.
Amount $ 28,074.80 90,000.00 Ministry of Health, Women and Social Welfare Section 19: Page 59 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Parties Involved Particulars of Case Amount $ CWMH, CEO Health and Attorney General of Fiji Attorney General of Fiji Vs Leba Lisi Mika Maya Vs GM Taveuni Hospital Eddie McCaig Vs Abhi Manu Hem Chand Vs PS Health & Attorney General HBC 03/2006 Isei Sigarara Vs Dr Franael Chipongian GM Hospital Services Details Not Available CBV 06/08 Arvind Kumar vs PSH CWM Hospital for treatment of scabies.
He was administered certain injections, in the Casualty Department, after which his complications started.

Subsequently, on the same day, he was admitted suffering from severe pain.

His left arm, due to damage done by the hospital, had to be amputated above the elbow on 05.05.03.
Following settlement talks, with the approval of Ministry of Health, matter was amicably settled between parties, in the sum of $90,000.00, of which (as part of the settlement) sum of $50,000.00 was paid to Public Trustee for the benefit of the infant plaintiff, and sum of $40,000.00 was paid to his solicitors on 27.03.08, by MOH.

Negligence on the part of Ministry during the delivery of Leba Lisi’s child which caused her severe pain and distress which resulted into a death of her child.
Medical negligence which led to knee amputation of right leg of a 24 year old Mika Maya of Taveuni.

The settlement was made out of court.

Medical negligence which caused plaintiff permanent damage to his sacral nerves and thus losing his bowel and bladder control as well as sexual functions.

Out of court settlement for payment of salary and long service leave for the years in which he was not employed (between 26/05/98 – 19/02/02) Plaintiff instituted this action on behalf of Lanieta Dilevu.
Lanieta was admitted on 30.09.03 at the Labasa Hospital, for an emergency surgery for fetal distress.

After surgery she died on the hospital bed, due to bleeding from the operative site.

Following settlement talks, with the approval of Ministry of Health, matter was amicably settled between parties, in the sum of $50,000.00 which sum was paid by MOH.

Details Not Available Surcharge Payment.

Plaintiff instituted this action, claiming damages for injuries suffered by their infant child, Jashnil Kumar.
Jashnil was born on 21.01.96 prematurely after 28 weeks of gestation.

He was therefore, kept in an incubator for 3 weeks at the Lautoka Hospital, and was given supplemental oxygen.

However as a result of overdose of the oxygen, Jashnil developed a condition called Retinopathy.

He became total blind in both his eyes, as result of the overdose.

The Chief Justice on 4.09.08 ordered an interim payment of $286,755.00 to be paid by the defendants.
Formal request was made to Finance for funds and money was paid to C/R’s trust account on 14.01.09.

108,000.00 180,000.00 250,000.00 25,000.00 50,000.00 3,125.03 168.00 286,755.00 Total 1,021,122.83 While there is a code of conduct for Medical Officers in the service, there is evidence that it is not strictly followed.

Innocent people become victims of negligence and as a result court cases are filed and negligence payments are made.
The above negligence claims could have been avoided had the medical code of conduct been strictly followed, proper health facilities provided and the services of experienced doctors sought.

Ministry of Health, Women and Social Welfare Section 19: Page 60 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ In addition, there are other similar natures of litigation cases filed against the Ministry which are yet to be resolved.
This could pose future financial burden on the operations of the Ministry.

Disciplinary actions are hardly taken against those implicated for acts of negligence.

Consequently complainants are left with the option of seeking legal advice and civil cases are filed against the State, which in a number of cases had favoured the injured parties.
Recommendations  To safeguard public funds from waste and extravagance, the Ministry must urgently address the issue of unprofessional conduct of Medical Officers and other support staff.

 Doctors implicated should be referred to Fiji Medical Council or PSC for disciplinary actions.

 The Ministry should consider improving its service delivery to avoid and minimize such incidents.

 Proper guidelines should be established to safeguard the image of the hospital services in the country.
Ministry’s Comments This issue had already been addressed by the previous PSH – Dr Lepani and the Ministry is presently working on it, an update will be conveyed to your office once the outcome is received 19.49 Delay in Completion of the National Ambulance Service Project Emergency Ambulance Services (EAS) deals with life-threatening situations.
If someone is seriously injured in an accident or suddenly collapses, the victim could have serious medical complications if he/she does not receive treatment urgently.

The speedy arrival of an emergency ambulance could mean the difference between life and death for a seriously injured or ill person.

EAS should therefore be called during the emergencies only.
The Cabinet decision of 17 June 1998 states that Ministry of Health was to initiate and enter into discussions with the St. John Association on a joint pilot project for the progressive improvement of the ambulance services to the general public and progressive handing over of the ambulance services controlled by Ministry of Health to St John Association (SJA).
Both the parties were to jointly develop the pilot project into a National Ambulance Service controlled and managed by SJA in an efficient, professionally managed, accessible and self- sustainable way.

The project was to be implemented in six phases with a projected cost of $800,000 with the first phase to commence on 1 June 1998 and the final phase of the project to be completed by 30 June 2001.
After the completion of the project, SJA was to have taken over the ambulance service nation wide and to be self-sufficient and reduce the assistance in the form of grant.
The details of the phases and dates of completion are as follows: Phase 1: 1st June to 31st December 1998 Stationing of SJA ambulances:   2 at Suva 1 at Navua Ministry of Health, Women and Social Welfare Section 19: Page 61 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________   1 at Korovisilou 1 at Sigatoka And during Phase 1, SJA will recruit and train ambulance crew, seek technical assistance from abroad and have project funds to procure ambulance and communication equipment.
Phase 2: 1 January 1999 to 30 June 1999 The Ministry’s ambulance service between Suva-Nausori would be transferred to SJA together with appropriation of the CWM Hospital ambulances and equipment.

Phase 3: 1 July 1999 to 3 December 1999 The Ministry’s ambulance service from Suva to Sigatoka will be fully transferred to SJA with their ambulance service coverage from Nausori to Sigatoka.
Phase 4: 1 January 2000 to 30 June 2000 SJA will extend its service from Sigatoka to Tailevu to supplement the Ministry’s service.

Phase 5: 1 July 2000 to 31 December 2000 The Ministry’s ambulance service from Sigatoka to Tailevu was to be transferred to St John Association to be the major provider of complete ambulance service in Viti Levu.

Phase 6: 1 January 2001 to 30 June 2001 SJA was to take ownership of the ambulance service at Labasa, Nabouwalu and Savusavu, from the Ministry.
The audit noted that the following funds were provided to the SJA in addition to its annual operational grant for the implementation of the above EAS project:   The initial funding support of $850,000 was provided to SJA to implement the above project.

From 2002 – 2004 additional sum of $960,000 was granted to the SJA to ensure the completion of the project.

 A further sum of $988,952 was provided to the SJA from 2005 – 2008 as grants for the provision of the emergency ambulance services.
A total sum of $3,252,552 has been provided as at 31/12/08 to SJA for the completion of this project.

Refer to Table 19.37 below for details.
TABLE 19.37: DETAILS OF FUNDS PROVIDED TO SJA Year 1998 1999 2000 2001 2002 Operational Grant $ 40,400 40,400 40,400 40,400 40,400 Ambulance Service Budget $ 200,000 200,000 200,000 250,000 Extra Funds paid to St. Johns $ 320,000 Total $ 240,400 240,400 240,400 290,400 360,400 Ministry of Health, Women and Social Welfare Section 19: Page 62 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Year 2003 2004 2005 2006 2007 2008 Total Operational Grant $ 40,400 40,400 40,400 40,400 40,400 50,000 453,600 Ambulance Service Budget $ Extra Funds paid to St. Johns $ 320,000 320,000 200,393 318,370 326,844 143,345 1,948,952 850,000 Total $ 360,400 360,400 240,793 358,770 366,844 193,345 3,252,552 Most of the phases of the project remained unimplemented as at date of audit.
The current services provided by the SJA are limited to the following areas:  Suva/Natovi/Nausori/Korovou/Naiyavu/Vunidawa which are currently served by ambulances which is based at Suva SJA yard and it is on user pay basis.

three  One ambulance is based at Sigatoka and it is also on user pays basis.

The audit could not ascertain whether the funds were used for its intended purpose as no acquittal report was available for the audit inspection.
Also it could not be established whether any investigation or audit was carried out to authenticate how funds were utilised by the SJA.

The progress of the implementation of the EAS project is unknown to audit.

Considerable sum of funds have been diverted to the implementation of the EAS projects while neglecting and compromising the needs of Ministry’s own ambulance services.

The Ministry failed to administer effectively the funding provided to the association.
Recommendations  The Ministry should initiate an investigation surrounding the failure to initiate the project with a view of taking disciplinary action against those officers who were responsible for the implementation of this project.

 The Ministry should also ensure that there is value for money on all funds provided for any grant assistance provided for capital projects.

 The audited acquittal report should be sought from the SJA to validate the accuracy of funds utilized.
Ministry’s Comments (a) The Ministry of Health should initiate an investigation surrounding the failure to initiate an investigation surrounding the failure to initiate the project with the view of taking legal action against those officers who werfe responsible for the implementation of the project This section will be for the PSH to implement as most of those officers who were involved since 1998 have either passed on or have moved overseas or have since retired.
However, there was no specific Officer in Charge or assigned to this project.

The previous system was that SJA provide an acquittal to the MOH Accounts Department and forwarded to the Permanent Secretary/CEO.Upon sighting the acquittal the PS/CEO would sign off.

Once the PS/CEO had signed off, the accounts department would release the next quarterly payment for the expansion of ambulance services to SJA.
I came on board as of 29/09/2008 as the Project officer National Manager Ambulance Services to look into improving Ambulance services in Fiji.
Ministry of Health, Women and Social Welfare Section 19: Page 63 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ I was tasked by the Minister for Health to conduct a Scoping Exercise and Feasibility Study into the Emergency Ambulance Services in Fiji and currently implementing the recommended changes as reported in the Scoping and Feasibility Exercise.
(b) The Ministry should also ensure that there is value for money on all funds provided for any grant assistance provided for capital projects.

The National Ambulance Services is revising its strategies and is currently drafting a National Ambulance Decree to ensure that these measures are implemented and proper reporting procedures are followed.

(c) The audited acquittal report should be sought from the SJA to validate the accuracy of funds utilized.
MOH has on a number of occasions requested audited accounts from SJA but SJA have refused to submit or surrender audited accounts to MOH.

The Minister for Health has written to FICAC to investigate SJA’s accounts on these grounds and is awaiting a response from FICAC of their findings.

19.50 Current Condition of Ministry of Health’s Ambulances Ministry of Health was required to provide the ambulance services in public hospitals at a level comparable to international best practice.
Furthermore, the Ministry continued to provide appropriate maintenance of its fleet including the timely upgrading of its emergency equipment.
The audit noted that of the total fleet of 37 ambulances in Fiji, there were only 11 ambulances which were in good condition; the other 9 were unreliable for long distance travel or required regular maintenance work to keep them operational, a passenger carrying vehicle was used as a substitute for ambulance, and the remaining 16 were not working or were boarded without being replaced.

Refer to Appendix 19.13 for details of conditions of ambulances maintained by the Ministry.
In addition, some of the ambulances in operation are not fully equipped with essential items such as oxygen and monitoring machines.

The respective hospitals have to use portable machines and oxygen gas from the wards and hence compromising the needs of the hospital.

Furthermore, some hospitals have the service of only 1 ambulance and it has to cover wide areas and serve the large population as well.

Difficulties are faced by the hospitals if the ambulances are away on a transit.
Refer to Appendix 19.14 for details of number of ambulances per station compared to the population of that particular area.

Absence of the required number and condition of the ambulance provisions by the Ministry could hinder the service delivery and could compromise the lives of the patients or the sickly in cases of emergency.

Recommendation The Ministry should review its fleet and ensure that it is able to provide adequate service to the general public.
Ministry’s Comments The Ministry of Health (MOH) is currently working on revamping National Ambulance Services and Emergency Ambulance Services.
Ministry of Health, Women and Social Welfare Section 19: Page 64 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ MOH has drawn up a vehicle replacement plan and has submitted it to the Ministry of Finance for approval and also requested the Japanese Government through its Grass Roots Assistance Program for the replacement of 12 Ambulances that MOH has identified as the ones that need to be replaced immediately.
Due to the lack or non existence of Ambulance Legislation the MOH is currently drafting a new National Ambulance Decree (2009) in order to properly regulate and monitor ambulatory services in Fiji.

MOH has been in consultation with the National Fire Authority in taking over the Emergency Ambulance Services and the idea has been presented to the NFA Board Meeting on 22/05/09.
The NFA Board has welcomed the idea and is also eager to on the Emergency Ambulances Services as this is also highlighted in the NFA Roadmap 2007-2009.

19.51 Misuse of Health Workers Money An employee must use Government resources and assets in a proper way.84 Any loss arising from theft or fraud shall be reported immediately to the Police.
A copy of the report should also be provided to the PSC, Ministry of Finance and National Planning, and the Auditor General.85 A sum of $2,805.11 was allocated to Nausori Health Centre for the distribution to the 77 health workers at $36.43 each.

As at the date of the audit86, only 39 out of 77 health workers collected their allowance.

Upon further enquiry, the Clerk admitted that she has utilised $200 for her personal use and has the balance of $200 with her.
Audit could not authenticate the utilisation of the remaining $984.34 as no record was provided for audit verification.

The above findings indicate that the clerk has defrauded the Ministry by using the allowance for her personal use.

There is also a high possibility that the remaining unaccounted fund amounting to $984.34 was utilised by the clerk.

Recommendation The Ministry should investigate this matter immediately and report it to the appropriate authority.
Ministry’s Comments Your findings are noted and further investigation of the case will be carried out soon and your office will be provided with the result.

AUDIT FINDINGS – DEPARTMENT OF WOMEN AND SOCIAL WELFARE FINANCIAL STATEMENT 19.52 Agency Financial Statement The draft financial statements must be submitted to the Auditor General by 31 March in the following year, or within such other time as agreed to with the Auditor General.87 84 Public service code of conduct.
85 MOH Finance Manual 14.1.3 86 22/06/09 87 Section 81 (3) – Finance Instructions 2005 Ministry of Health, Women and Social Welfare Section 19: Page 65 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ In addition, each agency must include the following statements in its annual financial statements:88 statements of output costs; an appropriation statement; a statement of assets and liabilities; (viii) statement of receipts and expenditure; (ix) (x) (xi) (xii) notes to the statement of assets and liabilities; (xiii) a statement of losses; (xiv) a trust account statement of receipts and payments (where applicable) The Department of Social Welfare and Women submitted its Agency Financial Statements (consolidated with Ministry of Health) for audit on 12/05/09 which were not prepared in accordance with the requirements of Section 82 and Schedule 1 of the Finance Instructions 2005.
The following discrepancies were noted:     The Department has grouped its expenditures into 5 Statements of Output Costs whereas the Budget Estimates prescribes 4 outputs.

The amounts in the Statements of Output Costs have been estimated as the facility to allow the measurement and accounting of these costs has yet to be integrated in the Financial Management Information System (FMIS) of government.
It is not possible therefore to determine the accuracy of the expenditures incurred by the Department under each output.

The Department failed to provide a Statement of Losses, the Trust Fund Statement of Receipts and Payments to audit.

The payments of FNPF contributions and VAT could not be reconciled to the accounts.

The above issues will be used as basis of qualifications of the financial statements.
Recommendation The Department should ensure that the requirements of the Finance Instructions 81 and 82 are strictly followed in the preparation of the Financial Statements.

Department’s Comments Output costing is a system generated report and the report is produced on the strength of the number of activity the department has and not on the strength of the output as highlighted in the annual budget estimate.
The Audit in the report rightfully mentioned that the process is yet to be integrated into the FMIS system by ministry of finance.

Therefore unless the integration is fully completed by the FMIS team, report will be printed by activity level.

Statement of losses for the 2009 was finalized this month.

The report is attached hereto.
19.53 FNPF Reconciliation Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee by him and in the month following the termination of such employment, a 88 Section 82 (1) – Finance Instructions 2005 Ministry of Health, Women and Social Welfare Section 19: Page 66 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.89 The current rate of contribution is 16 cents on each dollar earned, with the employer and employee each contributing 8 cents.
A reconciliation of FNPF contributions against salaries and wages reported in the Financial Statements revealed variances as follows: 19.53.1 Department of Social Welfare TABLE 19.38: VARIANCE IN FNPF RECONCILIATION Details (a) Total FNPF against salaries and wages for 2008: FNPF as per financial statement Less: December 2007 FNPF Add: December 2008 FNPF FNPF for 2008 Gross Pay subject to FNPF ($155,479.31 / 0.08) (b) Salaries and Wages for 2008 subject to FNPF Salaries, wages and allowances as per financial statement Less: Salaries, wages and allowances for 2008 not subject to FNPF Un-reconciled Variance Amount $ 161,924.03 35,469.52 126,454.51 29,024.80 155,479.31 1,943,491.38 2,217,767.39 7,596.45 2,210,170.94 266,679.56 The above variance indicates that the FNPF might have been underpaid.
No explanation was provided for the variance.
19.53.2 Women Affairs TABLE 19.39: VARIANCE IN FNPF RECONCILIATION Details (a) Total FNPF against salaries and wages for 2008: FNPF as per financial statement Less: December 2007 FNPF Add: December 2008 FNPF FNPF for 2008 Gross Pay subject to FNPF ($48,302.31 / 0.08) (b) Salaries and Wages for 2008 subject to FNPF Salaries, wages and allowances as per financial statement Less: Salaries, wages and allowances for 2008 not subject to FNPF Amount $ 48,703.91 7,955.52 40,748.39 7,553.92 48,302.31 603,778.88 592,739.32 5,132.07 587,607.25 89 Chapter 219 – Fiji National Provident Fund – Section 13 (1) Ministry of Health, Women and Social Welfare Section 19: Page 67 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Details Un-reconciled Variance Amount $ 16,171.63 The above variance indicates that the FNPF might have been overpaid.
The Department could have avoided the above variance had they been more vigilant and proper supervisory controls were in place.

Recommendation The Department should review its FNPF records and reconciliations and provide explanations for the variances.
Department’s Comments Variances in figures resulted when your Auditors took into account FNPF figures from period 1-14 and the department’s financial statement was based on FNPF figures for periods 1 to 12 that stands as ($266,679.56) and $16,171.63 for Social Welfare And Women Department respectively.

regularly reconciled; therefore end balances did not indicate any over payment or under payment as claimed by Auditors in their report.
19.54 VAT Reconciliation Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of twelve and a half percent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.90 Output VAT is payable to the Commissioner of Inland Revenue for the supply of all goods and services with the exception of zero rated and exempted supplies.
Payments effected by government departments for goods and services are thus subjected to VAT.91 The audit noted that the department failed to prepare VAT reconciliations for 2008.

A review of VAT Returns and supporting documents carried out during the audit revealed an un- reconciled balance of $444,435.21 between the taxable supplies as per VAT Return and the total income/expenditure as per the Statement of Receipts and Expenditure.
Refer to Table 19.40 below for details: TABLE 19.40: VARIANCE IN VAT RECONCILIATION Details Amount $ Total expenditure/income as per Expenditure Statement Less: Expenditure not subject to VAT – SEG 1,2, 6 and 10 23,636,951.73 22,688,023.02 Total expenditure/income subject to VAT Less: Total taxable supplies as per VAT Returns Un-reconciled variance 948,928,71 504,493.50 444,435.21 90 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – section 15 (1) 91 Finance Circular No 9/95 Ministry of Health, Women and Social Welfare Section 19: Page 68 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The Department could have avoided the above variances had they been more vigilant and proper supervisory controls were in place.
Recommendations  The Department should review its VAT records and provide explanations for the variances.

 The Department should ensure monthly Vat reconciliations are prepared to ensure that correct Vat payment are made to relevant authorities.

 Supervisory checks on the preparation of VAT Returns should be improved to ensure that balances reflected in the VAT Returns reconcile with the GL.
Department’s Comments -14 and the department’s financial statement was based on VAT figures for periods 1 to 12 that stands as 444,435.21 and 457,261.50 Respectively; After period 12 VAT adjustments were made to the extent of ($12,826.29), thereafter the auditors figure agrees with departmental figures.
Monthly VAT reconciliation was carried out before monthly total VAT payments were made FIRCA, otherwise incorrect amount of VAT would be paid out; Supervisory controls were in place however it was matter of figure selection from two different accounting periods within a financial year.

19.55 Operating Trust Fund Account Trust Fund Accounts compromise monies which are not the property of the state and not utilized for the purpose of government.
In addition, Trust money is to be accounted for separately from public money and other money92, and by convention should always have credit balances.

Thus, the trust fund accounts should not at any time be overdrawn.93 Moreover, each month, the trust account shall be balanced and reconciled to the trust bank account.

The names and balances of each account shall be listed and the reconciliations shall be signed by the responsible officer.
Un-reconciled items should be investigated and resolved promptly.94 Each year, a statement of receipts and payments shall be prepared for audit and inclusion, when required, in the agency’s annual report.95 Contrary to the above regulations, audit noted the following anomalies: 19.55.1 Department of Social Welfare The Department operated under Head 24 in 2007; however in 2008 it was merged with Ministry of Health (Head 22).
The balance of funds was not carried over hence the balance as at 31/12/08 comprised of both the items appearing under Head 22 and Head 24.

Refer to Table 19.41 below for details: TABLE 19.41: OPERATING TRUST FUND ACCOUNT BALANCE 92 Section 25 (1) of the Financial Management Act 93 Finance Circular No.
4/98 of 30/03/98 94 Section 69 (3) – Finance Instruction 2005 95 Finance Instructions Part 9 – 69(3) (4) 2005 Ministry of Health, Women and Social Welfare Section 19: Page 69 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Head 22 24 Departments Figure $ 14,872.39 No Reconciliation was prepared.
FMIS Figure $ 14,872.39 17,186.53 Variance $ --- 17,186.53 Total 14,872.39 32,058.92 17,186.53 The audit could not ascertain the correctness and accuracy of the trust account balance (Head 24) provided in the Financial Management Information System (FMIS) as the Department failed to prepare its monthly reconciliations.
Furthermore, the following trust fund accounts had overdrawn balances as at 31/12/08: TABLE 19.42: OVERDRAWN TRUST FUND ACCOUNTS Account Number Description 202 PD OPR Current Year 12250124999861101 226 PD Unestablished Staff 12250124999861304 PD Public Employee Union 12250124999861532 201 PD Tax Arrears/Paye 12250124999861901 501 PD Employees FNPF 12250124999861920 501 PD Employees FNPF 12260224999861920 267 PD Rent Public 12410124999861105 244 PD LICI 12410124999861204 263 PD Housing 12410124999861306 286 PD Fiji Public 12410124999861501 501 PD Employees 12410124999861920 12410124999899988 Miscellaneous Fund Amount $ 345.00 168.00 115.00 2,308.03 11,512.52 593.44 1,947.40 324.23 128.83 1,785.99 51,612.11 592.09 19.55.2 Women Affairs The Department operated under Head 24 in 2007; however in 2008 it was merged with Ministry of Health (Head 22).
The balance of funds was not carried over hence the balance as at 31/12/08 comprised of both the items appearing under Head 22 and Head 24.

Refer to Table 19.43 below for details: TABLE 19.43: OPERATING TRUST FUND ACCOUNT BALANCE Head 22 24 Total Departments Figure $ 117.57 No Reconciliation was prepared.
FMIS Figure $ 117.57 10,875.48 Variance $ --- 10,875.48 117.57 10,993.05 10,875.48 The audit could not ascertain the correctness and accuracy of the trust account balance (Head 24) provided in the Financial Management Information System (FMIS) as the Department failed to prepare its monthly reconciliations.
Furthermore, the following trust fund accounts had overdrawn balances as at 31/12/08: Ministry of Health, Women and Social Welfare Section 19: Page 70 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ TABLE 19.44: OVERDRAWN TRUST FUND ACCOUNTS Account Number Description 12270175999861306 12270175999861901 12430175999861202 12430175999861204 12430175999861306 12430175999861532 12430175999861599 12430175999861901 12430175999861920 263 PD Housing 201 PD Tax Arrears 241PD CMLA 244 PD LICI 263 PD Housing PD Public PD Others 201 PD Tax Arrears 501 PD Employees Amount $ 480.00 137.45 221.24 1,088.27 457.15 400.00 510.00 440.11 1,588.31 The overdrawn trust funds could be results of mis-postings and/or unauthorised expenditure.
It indicates lack of adequate internal control and supervision and a disregard for procedures in the Finance Instructions.
Recommendations  Both Departments should ensure that the Trust Fund Account reconciliations are prepared on a monthly basis and are verified and reconciled with the records provided in the Financial Management Information System  The Departments should investigate the overdrawn (debit) trust fund accounts and action taken against the officers responsible for the non-compliance with the Finance Instructions.
Department’s Comments Trust fund accounts are always reconciled against figures from FMIS balances There is no other sources from where these figure’s could be obtained; Overdrawn trust fund accounts resulted from wrong postings in each trust accounts, the matter was resolved long ago; The above response i.r.o.

of Social Welfare to trust account is also applicable to Department of Women.

19.56 Revolving Fund Account – Miscellaneous A ledger shall be maintained for advances and revolving fund accounts96.
With 3 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Supervisor shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.97 In addition, the Revolving Fund Account Miscellaneous by their nature should always reflect debit balances, as this account is used to record all accountable advance, dishonoured cheques, losses/thefts, surcharges and any unclaimed money.98 96 Section 16.3.1 – Finance Manual 2005 97 Section 16.3.3 – Finance Manual 2005 98 Page 235 of the Accounting Training Manual Ministry of Health, Women and Social Welfare Section 19: Page 71 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.56.1 Department of Social Welfare The Department operated under Head 24 in 2007; however in 2008 it was merged with Ministry of Health (Head 22).
The balance of funds was not carried over hence the balance as at 31/12/08 comprised of both the items appearing under Head 22 and Head 24.

Part of the fund balance from Head 24 was transferred to Head 22 on 12/06/09 through an audit adjustment after consultation with Ministry of Finance.
The details are as follows: TABLE 19.45: VARIANCE IN RFA ACCOUNT BALANCE Code 1-22600-00000-560000 1-22500-00000-560000 1-24100-00000-570000 1-22500-00000-570000 Total Departments Figure $ No Reconciliation Prepared (30,674.60) (30,674.60) FMIS Figure $ 301.10 2,812,086.72 46,694.72 (30,342.10) (2,828,407.94) Remarks Appendix Figure $ Audit could not ascertain the accuracy of the RFA Reconciliation.
(2,828,407.94) (2,828,407.94) The audit could not ascertain the correctness and accuracy of the above item balance appearing in the Financial Management Information System (FMIS) as the Department failed to prepare its monthly reconciliations.

Furthermore, significant outstanding balances were noted which remained un-cleared since 2007.
The details are as follows: TABLE 19.46: RFA ACCOUNT WITH SIGNIFICANT OUTSTANDING BALANCES Code Accounts Description 12250124999560201 Account Receivable Government Department 12250124999560203 Accounts Receivable Individuals 12410124999570304 Accounts Payable Prepaid Expenses Amount $ 2,100,000.00 732,400.75 46,362.22 Moreover, audit noted that the following RFA accounts had overdrawn balances as at 31/12/08.
TABLE 19.47: OVERDRAWN RFA ACCOUNTS Code Accounts Description 12250124999560301 Account Receivable Employee 12250124999570101 Accounts Payable Prepaid Expenses 12250124999570304 Advances Amount $ 20,314.03 15,230.00 15,444.60 19.56.2 Women Affairs The Department operated under Head 24 in 2007; however in 2008 it was merged with Ministry of Health (Head 22).

The balance of funds was not carried over hence the balance as at 31/12/08 comprised of both the items appearing under Head 22 and Head 24.
Ministry of Health, Women and Social Welfare Section 19: Page 72 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The balance of the funds from Head 24 was transferred to Head 22 on 12/06/09 through an audit adjustment after consultation with Ministry of Finance.
The details are as follows: TABLE 19.48: VARIANCE IN RFA ACCOUNT BALANCE Code 1-22701-75999-570301 Departments Figure $ No Reconciliation was prepared FMIS Figure $ 122,821.60 Remarks Appendix Figure $ 122,821.60 The Balance has been carried forward since 2006 and it has remained un- cleared as at the date of audit.

Audit could not ascertain the correctness and accuracy of the above item balances appearing in the Financial Management Information System (FMIS).
Department failed to prepare its monthly reconciliations.

The above findings indicate that the Accounting Heads have not carried out their duties diligently, resulting in non-preparation of the reconciliations and verification to the FMIS records.

Recommendations  The Department should ensure that the monthly reconciliation is prepared in accordance to the requirement of the Finance Manual and any differences are adjusted accordingly.
 The Department should investigate the overdrawn balances and take corrective action.

Department’s Comments The FMIS figures and Departmental figures were not consistent for the reason that some of the figurers were appearing under Head 24.

The anomaly was rectified in July this year; Way back in 2005 when there was no FMIS, all FA payments were made to Post Fiji and Debited to advance account Post Fiji, thereafter, Post Fiji would send remittance advice.
On strength of remittance advice department used to clear advance a/c by debiting FA vote and crediting the Advance a/c.

The officers at that time failed carry out appropriate adjustment.

Therefore $2.1m and $732,400 appears as overdrawn amounts in the advance account; Another $46,362.22 and $$20,314.03 are figures that appear as overdrawn amount for the reason that amount was not posted into the system when changeover from manual accounting system to FMIS system took place.
After lapsedof 3 years it would be impracticable to carry out the adjustments.

Arrangements will be made with Finance ministry to write off the amounts; $15,230 & $ 15,444.60 are the system errors, therefore only FMIS will be able to rectify.
Arrangements had already been made with FMIS which will clear the amounts before end of this accounting period; A combined RFA reconciliation statements for Social Welfare and Women were prepared for last year, therefore separate reconciliations for Women were not sighted by the auditors; $122,821.60 was taken into account at the end of the last year from old HEAD to new Head of the Department; otherwise it would have been investigated earlier on and sorted out.
Ministry of Health, Women and Social Welfare Section 19: Page 73 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.57 Drawings Account All bank accounts shall be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and be signed and dated by the responsible officer.99 In addition, write off action should be taken once they become stale whereby those relating to the current year is charged against the appropriate expenditure allocation and those of previous years against the general revenue account.100 The audit could not ascertain the correctness and accuracy of the following account balances appearing under both Head 22 & 24 provided in the Financial Management Information System as the Department failed to prepare all its monthly reconciliations.
The details are as follows: TABLE 19.49: DRAWNGS ACCOUNT BALANCES Code Social Welfare 1-22500-00000-530000 1-22600-00000-530000 1-24100-00000-530000 1-24200-00000-530000 Total Women Affairs 1-22700-00000-530000 1-24300-00000-530000 Total Departments Figure $ FMIS Figure $ Appendix Figure $ Remarks Not Complete 293,062.74 (10,736.09) (1,650,394.97) 11,118.31 The Department has only monthly prepared its reconciliation August 2008. till (1,356,950) (1,356,950.01) (1,356,950) Not Available 7.50 (60,727.67) (60,720.17) (60,720) No reconciliation provided for audit scrutiny.
was (60,720.00) In addition, stale cheques amounting to $705,225 were appearing in the unpresented cheque list as at 31/12/08.

The above anomalies indicate the laxity of the Accounting Head in carrying out his/her duties diligently, resulting in the non-preparation of the monthly reconciliations.

Also the stale cheques have remained un-cleared.

Recommendations  The Department should ensure that Section 39 (5) of the Finance Instruction is strictly complied with.
 Stale cheques should be cleared in accordance with Section 7.5 of the Finance Manual.

Department’s Comments Last year the Department was struggling to clear backlog of Drawing account reconciliations from the year 2007 and managed to reconcile up to the year 2008.

Therefore number of stale cheques is bound to accumulate until such time the reconciliations would be updated.

The stales cheques mentioned in your report no longer exists, they were cleared in January this year.
99 Section 39 (5) – Finance Instruction 2005 100 Finance Circular 21/2007 dated 12/11/07, para 7.4.2 Ministry of Health, Women and Social Welfare Section 19: Page 74 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.58 Annual Stocktake The Chief Executive Officer shall nominate three-Board of Survey Officers to undertake an annual stock take of fixed assets and expendable items at a specified date.101 Audit noted that the Department failed to carry out its annual stock-take of fixed assets and take on charge in the Fixed Assets Register any assets acquired in 2008 that may not have been recorded.
The above finding implies inadequate controls over the custody of assets which could result in the inability to identify missing and unserviceable item, gone missing or those that need to be auctioned.

Moreover, it would be difficult to identify any person responsible or any discrepancies in the Fixed Assets records if records are not updated or maintained.
Recommendation The Department should ensure that an annual stock-take is carried out annually and that all fixed assets are taken on charge in a Fixed Assets Register.

Department’s Comments The board of survey team was appointed in the year 2009, but due to the retirement of the chairman, the survey was not completed.

The chief Executive officer has directed administration officer to appoint new members and complete as soon as possible.
For your information all assets are all in our custody of which the departments got all the records of all new and the existing assets.

A copy of the report will be submitted after the completion of the survey.
19.59 IDC Reconciliation Within 5 days of receiving the monthly general ledger reports from the Ministry of Finance, the Accounts Officer shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.102 Audit noted that the IDC accounts receipts and payments for 2008 as per the Department’s record did not reconcile with the FMIS/Appendix records.
Refer to Table 19.50 below for details: TABLE 19.50: VARIANCE IN IDC RECEIPTS AND PAYMENTS BALANCES Department Details Social Welfare Women Affairs FMIS Departments Record Variance FMIS Departments Record Variance Receipts $ 3,301,729.12 2,076,615.04 1,225,114.08 946,255.61 657,205.70 289,049.91 Payments $ 3,301,729.12 2,076,615.04 1,225,114.08 946,255.61 657,205.70 289,049.91 The above indicates that the Departments reconciliations were not thoroughly checked and scrutinised by the Accounting Head, resulting in variances between FMIS and Department records.
101 Section 11.4.1 – Finance Manual 2005 102 Finance Manual 2005 Section 16.3.3 Ministry of Health, Women and Social Welfare Section 19: Page 75 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recommendation The Department should investigate the variance and take corrective measures to regularise the variance.
Department’s Comments Variances in figures resulted when your Auditors took into IDC account figures from period 1-14 and the department’s financial statement was based on IDC account figures for periods 1 to 12.

Furthermore as stated in the financial instruction, both the departments IDC accounts were properly reconciled and the accounts was balance was zerorised before closure of accounts.
AUDIT FINDINGS – DEPARTMENT OF WOMEN AND SOCIAL WELFARE FAMILY ASSISTANCE (FA) 19.60 Recipients with Same Bank Account Cabinet approved that recipients of the Family Assistance Allowance are to select the method of payment that is accessible and cost effective provided by postal services, ANZ Rural Banking and Colonial National Bank103 The audit of Family Assistance (FA) records revealed that in some cases recipients have the same bank account numbers despite different reference numbers.
Refer to Appendix 19.15 for examples This implies laxity by the Senior Welfare Officers in not properly checking the list prepared by the Divisional Clerks.

It is possible that there may be more such cases not identified as a result of a lack of detail checks.

Recommendations  The Department should review the current processing and payments procedures to avoid such overpayments.

 The officers responsible for making such entries should be more vigilant.
 Disciplinary action should be taken against responsible officers for not carrying out their duties with care.

 All the double payment into the bank accounts should be recovered.

 The list submitted by the Divisions should be properly checked at Headquarters before submitting to the respective banks.
Department’s Comments The recommendations are noted and the following actions have been taken:  The Department is in its final stages of moving across to e-Welfare and the system is set up to flag ‘alike recipients’ under ‘reference numbers’, ‘name’, ‘date of birth’ and father’s/mother’s name’.

 All identified repeat names have been deleted from the database when detected.

 PS has issued a word of caution to all Divisional Heads on surcharge of officers for these mistakes.
 All recipients receiving 2 payments have been terminated immediately from the assistance.

 The e-Welfare system will solve the issues raised here.

103 Interim Government Cabinet Paper (07) 26 Date 13/02/07 Ministry of Health, Women and Social Welfare Section 19: Page 76 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Additional comments have been inserted into the table attached as Appendix 19.15.
19.61 Real and Bogus Name with Same Bank Account Number Each voucher should have the unique identifier of the client’s reference number prefixed with their Cost-Centre and suffixed with the month and year that the voucher is valid for.104 Cabinet approved that recipients of the Family Assistance Allowance are to select the method of payment that is accessible and cost effective provided by postal services, ANZ Rural Banking and Colonial National Bank105 There were some cases where a reference number would have a real and a bogus recipient.
The real and the bogus recipients are identified with the same reference number and the same bank account number.

Therefore the recipients receive double payment into the same bank account number.

One Arun Lata is receiving $75 via a bogus reference number 301-101967.

The same reference number belongs to a recipient name Shiu Shankar.
This issue was highlighted in the previous years Auditor General’s report where the Department commented that this case was terminated on 29/08/06 and the file transferred to Sigatoka Office.

However, this case is continuing and has not been terminated as commented by the Department.

Examples of such irregular payments are shown in Appendix 19.16.

The above finding reflects the existence of weak controls in respect of assisting recipients through the banking mode.
In addition, the Senior Welfare Officers in districts were not scrutinizing the lists which were submitted to Headquarters.

Recommendations  The Department should review its procedure for processing payments effected by banking mode in order to avoid such overpayments.

 The officers responsible for making such entries should be more vigilant.

 Disciplinary action should be taken against responsible officers concerned for not carrying out their duties with care.
 All the double payment into the bank accounts should be recovered.

 The list submitted by the divisions should be properly checked at headquarters.

Department’s Comments For most of the cases, reference numbers and bank account numbers of the ‘real’ and ‘bogus’ recipients are the same.

There is no double payment.

The requirement for a birth certificate by Banks has been a recent development but the Department of Social Welfare has always worked with birth certificates.
These recipients had existing accounts which does not necessarily match the name registered at birth.

The recommendations are noted and a lot of these issues will be resolved once the e-Welfare system under e-Gov is in operation.

Additional comments have been added to Appendix 19.6.
104 Section 4.1.17 – Finance Instruction 2005 105 Interim Government Cabinet Paper (07) 26 Date 13/02/07 Ministry of Health, Women and Social Welfare Section 19: Page 77 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ 19.62 Recipients with Same Reference Number.
Each voucher should have the unique identifier of the client’s reference number prefixed with their Cost-centre and suffixed with the month and year that the voucher is valid for.106 The audit of FA records revealed that in some cases recipients have the same reference numbers despite different names and bank account numbers.

Refer to Appendix 19.17 for examples This implies laxity by the Senior Welfare Officers in not properly checking the list prepared by the Divisional Clerks.
It is possible that there may be more such cases not identified as a result of a lack of detail checks.

The Department could be making fictitious, unauthorised and duplicate payments as a result.

Recommendations  The officers responsible for making such entries should be more vigilant.

 Disciplinary action should be taken against responsible officers for not carrying out their duties with care.
 The list submitted by the Divisions should be properly checked at Headquarters before submitting to the respective banks.

Department’s Comments Comments have been inserted against each recipient queried in Appendix 19.17.

The recommendations are noted and we also hope that all these discrepancies will be eliminated under the e-Gov system presently reaching its final stages.
19.63 Recipients receiving assistance through Voucher Book and Bank Mode Cabinet approved that recipients of the FA Allowance are to select the method of payment that is accessible and cost effective provided by postal services, ANZ Rural Banking and Colonial National Bank107 All payment transactions that are processed through the cashing agency must be reconciled against our voucher listings.108 In certain cases the recipients of FA Allowance were cashing the voucher books provided by postal services as well as receiving assistance through the banking Mode.
Refer to Table 19.51 below for examples.
TABLE 19.51: RECIPIENTS CASHING VOUCHER BOOKS AND RECEIVING CASH THROUGH BANK MODE Recipients Elenoa Likumocevakaca Seveci Ravetau Elizabeth Turaga Parma N Singh Reference Number 101-102189 101-105948 101-106855 101-103990 Voucher Book # 16153 15217 16160 13997 Amount $ 60.00 95.00 60.00 85.00 Bank CNB CNB CNB CNB Account Number 5990514 9800683378 6854557 5660950 Amount $ 80.00 95.00 60.00 85.00 106 Section 4.1.17 – Finance Manual 2005 107 Interim Government Cabinet Paper (07) 26 Date 13/02/07 108 Section 4.1.42 – Finance Manual 2005 Ministry of Health, Women and Social Welfare Section 19: Page 78 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ This issue highlights a total disregard by the Welfare officers to verify the list of recipients through voucher books and bank mode.
The Senior Welfare officers have failed to check the lists as the double payments were not picked by them.

Recommendations  One mode of payment should cease immediately and the overpaid allowance should be recovered.

 Surcharge action should be taken against officers who are identified to be responsible for the double payment.

 The entire list should be checked by the Senior Welfare Officers before they are submitted for payments.
Department’s Comments Recipients Elenoa Likumocevakaca Seveci Ravetau Elizabeth Turaga Parma N Singh Amount $ 80.00 CNB Bank 15217 Amount $ 60.00 Voucher Book # 16153 Account Number 5990514 Reference Number 101-102189 Her file is now closed and banking terminated.

Voucher book will not be re- issued in July, 2009.

101-105948 95.00 Seveci Ravetau’s voucher book is cancelled and efforts are being to recover the overpayment.

Care & Protection Allowance.

For review.


101-106855 60.00 Elizabeth Turaga’s voucher book is cancelled and efforts are being to recover the overpayment.

Care & Protection Allowance.

For review 101-103990 85.00 Parma Singh’s assistance has been terminated and will be reviewed.
9800683378 6854557 5660950 13997 16160 95.00 60.00 85.00 CNB CNB CNB 19.64 Recipients Listed Twice in Bank Listings The proper management of expenditure is fundamental to ensuring value-for- money in delivering services to the community.

As well, having cost-effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditures and corruption do not occur.
The audit of FA records revealed that a number of recipients have been receiving their allowance twice within the same month due to their names being listed twice in the bank listings.

Refer to Appendix 19.18 for examples.

This implies laxity by the Senior Welfare Officers in not properly checking the list prepared by the Divisional Clerks.

It is possible that there may be more such cases not identified as a result of a lack of detail checks.
As a result, the Department could be making fictitious, unauthorised and duplicate payments.

Recommendations  The officers responsible for making such entries should be more vigilant.

 All the double payment into the bank accounts should be recovered.

 Disciplinary action should be taken against responsible officers for not carrying out their duties with care.
Ministry of Health, Women and Social Welfare Section 19: Page 79 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________  The list submitted by the Divisions should be properly checked at Headquarters before submitting to the respective banks.

Department’s Comments Comments have been inserted against each name queried in Appendix 19.18.

All anomalies have been corrected and actions taken accordingly as noted in Appendix 7.
The recommendations are noted and should be addressed under the new e-Gov system presently undergoing its final phase of development.

19.65 Non reconciliation of Cashing Agency against Voucher Listing.
All payment transactions that are processed through the cashing agency must be reconciled against our voucher listing.109 Reconciliation reports must be completed within two week post end of month.110 The audit noted that no reconciliation has been prepared for the payment transaction processed through the cashing agencies against the voucher listings.

The divisions have neither prepared nor submitted any reconciliation concerning the above.
This implies laxity by the Senior Welfare Officers in not preparing the reconciliations, which could result in fictitious, unauthorised and duplicate payments.

Recommendations  All payment transactions that are processed through the cashing agency must be reconciled against the voucher listings.

 Senior Welfare Officers from each district should submit their reconciliation two week after post end of the month.
 Disciplinary action should be taken against responsible officers for not carrying out their duties with care.

Department’s Comments The recommendations are noted and the process has been included into the Department’s Draft Standard Operating Procedures [SOP].

The SOP is ready for its final stage of alignment to legal requirements.
We would like to note though that it is not possible to reconcile within two weeks as cashing agencies are scattered across the whole country from islands to hinterlands which are intermittently accessible.

Due to transportation and infrastructural problems, the full remittance of the listing of cashed voucher leaves can only take place after about six [6] weeks of issuance.
19.66 Review of Family Assistance Recipients Controls need to be in place to ensure that the right recipient continues to receive the funds under the family assistance program.

A review of family assistance recipients is not conducted regularly and this can result in the Department not knowing if and when a recipient has died.
Thus, funds may continue to be paid out to 109 Section 4.1.42 – Finance Manual 2005 110 Section 4.1.44 – Finance Manual 2005 Ministry of Health, Women and Social Welfare Section 19: Page 80 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ relatives of the deceased recipient who does not qualify for the assistance.

Table 19.52 below shows examples of cases not reviewed on regular basis.
TABLE 19.52: CASES NOT REVIEWED ON A REGULAR BASIS Recipients Epeli Ratabacaca No 2 Eroni Sewale No 1 Litia Marama Asia Lateef f/n Mustaq Akisi Marama Akisi Marama Mohini Lata f/n Mahen Reference Number 201-102400 201-106605 201-102506 201-104742 201-105979 201-102365 201-104540 Year of Last Review 2005 2005 2005 2005 2004 2005 2005 Age at date of Last Review 76 years 67 years 102 years 55 years 41 years 80 years 34 years There are no checks in place where the department can detect whether a recipient has passed away.
There is no work program available where welfare officers could visit the various recipients to determine whether a certain recipient is still living and receiving the approved allowance.

Recommendations  The Department should carry out a yearly review of the recipients.

 Work program should be drawn for Welfare officers to visit homes of recipients to determine whether the recipients are still living and receiving the allowances.
Department’s Comments Recipients Reference Number 201-102400 Year of Last Review 2005 Age at date of Last Review 76 years 2005 2005 201-106605 201-102506 Epeli Ratabacaca No 2 Date of review: 21/05/2009 Age: 80 years Status: Still living with wife & 3 grandchildren attending school.

Recommendation: Allowance to continue.

Eroni Sewale No 1 Date of review: 21/05/2009 Age: 71 years Status: Still living with wife & youngest son attending school.

Recommendation: Allowance to continue.


Litia Marama Date of review: 14/05/2009 Age: 106 years Status: Lives with married son who has his own dependents..

Recommendation: Allowance to continue.

Asia Lateef f/n Mustaq Date of review: 20/05/2009 Age: 61 years Status: Living with a crippled son.

Recommendation: Allowance to continue.

Akisi Marama Date of review: 14/05/2009 Age: 65 years Status: Lives alone with no source of income.

Recommendation: Allowance to continue.


Akisi Marama Date of review: 14/05/2009 201-104742 201-105979 201-102365 2005 2004 2005 67 years 102 years 55 years 41 years 80 years Ministry of Health, Women and Social Welfare Section 19: Page 81 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Recipients Reference Number Year of Last Review Age at date of Last Review Age: 84 years Status: Lives alone with no source of income.
Recommendation: Allowance to continue.

Mohini Lata f/n Mahen 34 years All attempt to locate Mohini Lata’s file is being done as the database does not have her address but her case will be reviewed during the July dispatch of voucher books.

201-104540 2005 There are nearly 27,000 recipients listed in our Family Assistance database, only 48 welfare officers all over Fiji and there are only 2 vehicles per Division.
A yearly review of the whole 27,000 is near impossible as there are other major outputs legally required under Acts from the Department.

There is a caseload of about 600 cases per officer per year not including the additional 300 cases per officer per year for other areas of work and recorded in our case listings.

An annual review of all cases is impractical and maybe impossible.
For improved monitoring, we have proposed and Cabinet has agreed that four [4] present categories under Family Assistance will be moved to Care & Protection Allowance.

This is necessary to allow easy tracking of cases as allowance is terminated once children reach the age of 17.

However, the recommendations are noted and improved targeting of review cases will be done according to resource allocation.
19.67 Accident – GM 957 The Deputy Secretary (DS) shall authorise an officer to drive government vehicles under the care of the agency by issuing them a letter of authority.111 Under no circumstances shall the Executive Officer (EO) permit unauthorised persons to drive any vehicle.112 In addition, the vehicles must only be used for official purposes unless approved in writing by the DS or permitted under an officer’s term of employment.113 Furthermore, in the event of an accident involving a government vehicle, the driver must immediately report the accident to the Police and inform the EO.114 In addition, the driver must within 24 hours after the accident prepare an accident report and submit it to the DS who shall forward copies to the CEO, Ministry of Finance and the Solicitor General.115 The following anomalies were noted for the vehicle, GM 957, which was involved in an accident in Suva on 26/11/08:      the vehicle was driven by Ms. Ilisapeci Rokotunidau, Director Social Welfare, without authorisation, the accident report was prepared on 09/12/08, fourteen days after the accident, no police report was availed for audit verification upon numerous requests.
the purpose of the journey could not be ascertained.

the vehicle sustained damage amounting to $1,355 and as at the audit date, the department is yet to instigate any action to recover this cost from the officer concerned.
111 Section 13.15.1 – Finance Manual 2005 112 Section 13.15.2 – Finance Manual 2005 113 Section 13.16.1 – Finance Manual 2005 114 Section 13.19.1 – Finance Manual 2005 115 Section 13.19.4 & 13.19.6 – Finance Manual 2005 Ministry of Health, Women and Social Welfare Section 19: Page 82 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ The above indicates the Department’s blatant disregard in maintaining discipline and complying with the standing government transport rules and instructions.
Also failure to instigate a timely action could set a precedent for others to pursue.

Recommendations The Department should:   follow up with the Solicitor General’s Office regarding the accident to vehicle GM957.

ensure that relevant documents such as police report, accident report and drivers authority letters are maintained properly and produced to audit for verification.
Department’s Comments The necessary procedures as noted in the recommendations have been followed and report submitted to Ministry of Finance.

Follow up with the Ministry of Finance has been on- going.
Ministry of Health, Women and Social Welfare Section 19: Page 83 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 19.1: Statement of Output Costs Ministry of Health General Administration 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 2,708,548 339,031 777,167 833,272 1,003,300 2,938,160 1,556,112 10,155,590 2,992,139 325,300 886,897 890,793 1,239,800 4,249,892 1,212,561 11,797,382 --- 79,600 --- 79,600 --- 120,866 --- 120,866 Value Added Tax 674,687 952,666 TOTAL EXPENDITURE 10,909,877 12,870,914 Research 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 166,765 103,388 19,485 42,219 61,781 --- 43,599 437,237 --- --- --- --- 117,640 157,627 21,746 42,547 100,993 --- 60,000 500,553 --- --- --- --- Value Added Tax 236,677 80,313 TOTAL EXPENDITURE 673,914 580,866 Ministry of Health, Women and Social Welfare Section 19: Page 84 REPORT OF THE
 AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Urban Hospitals 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 36,717,095 6,812,811 856,757 3,105,587 6,855,921
 ---- ---- 54,348,171 40,322,815 9,721,407 918,207 3,176,704 8,115,389 --- --- 62,254,522 1,381,762 1,401,784 ---- 2,783,546 2,862,700 845,613 --- 3,708,313 Value Added Tax 5,749,400 8,553,729 TOTAL EXPENDITURE 62,881,117 74,516,564 Sub – Division Hospitals, Health Centres and Nursing Stations 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 20,880,922 2,990,728 567,220 1,770,404 827,305 ---- 71,259 27,107,838 23,884,185 4,100,383 787,036 1,640,678 1,149,718 --- 110,000 31,672,000 831,060 1,116,019 ---- 551,182 1,104,148 --- 1,947,079 1,655,330 Value Added Tax 5,363,590 4,315,025 TOTAL EXPENDITURE 34,418,507 37,642,355 Ministry of Health, Women and Social Welfare Section 19: Page 85 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Public Health Services 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $
 1,377,728 12,779 22,451 35,366 1,045,948 515,050 610,455 3,619,777 1,663,251 24,534 15,800 33,300 679,817 356,939 573,799 3,347,440 --- --- --- --- --- --- --- --- Value Added Tax 1,348,961 1,259,154 TOTAL EXPENDITURE 4,968,738 4,606,594 Drugs and Medical Supplies 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital
 Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 597,036 288,719 51,607 135,767 15,297,672 --- --- 612,662 343,100 60,231 119,235 10,386,091 --- --- 16,370,801 11,521,319 --- --- --- --- --- --- --- --- Value Added Tax 1,494,145 2,045,187 TOTAL EXPENDITURE 17,864,946 13,566,506 Ministry of Health, Women and Social Welfare Section 19: Page 86 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Hospital and Support Services 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ --- 344,539 2,970 2,356,329 7,254 --- --- 97,400 476,700 10,000 2,202,299 7,500 --- --- 2,711,092 2,793,899 --- --- --- --- --- --- --- --- Value Added Tax 591,312 324,086 TOTAL EXPENDITURE 3,302,404 3,117,985 Fiji School of Nursing 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $
 2007 $ 1,071,630 454,770 38,596 209,569 334,361 ---- 39,577 2,148,503 1,433,160 573,010 38,065 261,552 525,000 --- 40,000 2,870,787 --- --- --- --- --- --- --- --- Value Added Tax 689,615 308,650 TOTAL EXPENDITURE 2,838,118 3,179,437 Ministry of Health, Women and Social Welfare Section 19: Page 87 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Old Peoples Home 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel &
 Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 128,839 364,873 4,240 50,725 57,917 --- --- 606,594 --- --- --- --- 79,201 429,753 5,820 49,800 66,200 --- --- 630,774 --- --- --- --- Value Added Tax 240,291 85,132 TOTAL EXPENDITURE 846,885 715,906 Deprtment of Women and Social Welfare General Administration 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 702,741 90,303 37,098 61,279 44,917 259,000 ---- 1,195,338 40,998 398,000 756,232 1,195,230 1,004,659 132,800 41,706 69,708 37,654 259,000 ---- 1,545,527 --- --- 1,051,367 1,051,367 Value Added Tax 24,705 153,426 TOTAL EXPENDITURE 2,415,273 2,750,320 Ministry of Health, Women and Social Welfare Section 19: Page 88 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Poverty and Eradication Unit 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods &
 Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 104,285 1,444 5,197 7,293 674 --- --- 118,893 --- --- --- --- 39,171 --- 9,679 7,814 916 --- --- 57,580 --- --- --- --- Value Added Tax 1,399 5,021 TOTAL EXPENDITURE 120,292 62,601 Institutional Services 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel &
 Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 239,428 99,162 3,087 24,459 11,426 --- --- 377,562 --- --- --- --- 146,041 127,232 2,187 23,925 10,450 --- --- 309,835 --- --- --- --- Value Added Tax 3,959 10,292 TOTAL EXPENDITURE 381,521 320,127 Ministry of Health, Women and Social Welfare Section 19: Page 89 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Field Services 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 1,041,108 101,220 52,608 57,833 35,085 18,424,436 13,045 19,725,334 1,102,493 102,247 35,634 50,553 99,243 18,211,568 6,100 19,607,838 --- --- --- --- --- --- --- --- Value Added Tax 19,186 160,337 TOTAL EXPENDITURE 19,744,520 19,768,175 Women and Gender Development – General 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special
 Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures 2008 $ 2007 $ 611,193 30,250 53,759 45,940 7,928 214,375 --- 963,445 --- --- --- --- 569,615 45,100 46,831 30,356 12,263 --- --- 704,165 --- --- 280,492 280,492 Value Added Tax 11,902 28,059 TOTAL EXPENDITURE 975,347 1,012,716 Ministry of Health, Women and Social Welfare Section 19: Page 90 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER
 2009 ________________ Housing 2008 Description EXPENDITURE Operating Costs Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditures Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditures Value Added Tax TOTAL EXPENDITURE 2008 $ 2007 $ --- --- --- --- --- --- --- --- --- --- --- --- --- --- 119,599 2,292 20,000 32,000 6,398 1,000,000 31,773 1,212,062 330,647 --- 1,112,000 1,442,647 --- 2,654,709 Ministry of Health, Women and Social Welfare Section 19: Page 91 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 19.2: Details of Drugs and Consumables Held in Quarantine Date of Indent 22/07/08 On hold 02/09/08 Indent No.
1150/08 09/01/09 02/02/09 96/09 16/04/08 21/10/08 374/08 04/12/08 02/02/09 65/09 22/09/08 10/11/08 1315/08 13/02/08 05/08 230/08 01/07/08 02/09/08 1077/08 08/04/08 02/09/08 429/08 11/08/08 02/03/09 1226/08 Drugs & Consumables Supplier Location Reason Short expiry Short expiry Short expiry Short expiry Short expiry Short expiry Short Expiry Poor Quality Poor Quality Rifampicin/Isoniazid Tabs 150/100mg Boucher Muir & Miscellaneous Room & Multichem NZ Ltd Baroko SDN BHD Boucher Muir South Austral Pty Ltd South Austral Pty Ltd Boucher Muir South Austral Pty Ltd Boucher Muir & & Miscellaneous Room Miscellaneous Room Miscellaneous Room Miscellaneous Room Miscellaneous Room Miscellaneous Room Miscellaneous Room Receipt Room Miconzale Nitrate Vaginal Cream 2% Econazole Pessary 150mg Packet of 3 Miconzale Nitrate Vaginal Cream 2% Phenylepherine eye drop 10% Acyclovir Eye Ointment 30mg/g Ethosuximide Caps 250mg sharp Scissors dressing 5.5inch Basin Stainless Steel large - bathing Sputurn Mug Stainless Steel Stainless Steel Bucket Calibrated Kidney Dish Stainless Steel 10inch Large Bed Pan Stainless Steel - Paediatrics Bed Pan Stainless Steel Adult - Basin Stainless Steel Adult 07/04/08 02/09/08 426/08 07/04/08 02/09/08 430/08 07/04/08 02/09/08 428/08 07/04/08 02/09/08 427/08 Kidney Dish – Stainless Steel 7inch Urinal Male Instrument Stainless Tray Steel 40x27x6cm Gallipots Stainless Steel 5inch South Austral Pty Ltd South Austral Pty Ltd South Austral Pty Ltd South Austral Pty Ltd Miscellaneous Room Miscellaneous Room
 Miscellaneous Room Miscellaneous Room Poor Quality Poor Quality Poor Quality Poor Quality N/A N/A N/A N/A 25/09/08 02/02/09 32/09 Calcium Chloride Injection 10% 10ml South Austral Pty Ltd Miscellaneous Room 16/01/09 19/02/09 114/09 Nifedine Caps 10mg South Austral Pty Ltd Receipt Room rm Total - -Wrong item supplied non- English labeling Tabs ordered not capsules 01/03/11 20 2,921.22 01/09/12 1,170 29,340.69 65,959.83 Ministry of Health, Women and Social Welfare Section 19: Page 92 Expiry Date 02/09 Qty 14 Amount $ 930.00 01/06/09 170 866.28 30/06/09 4,500 6,052.91 01/06/09 01/08/09 50 90 289.93 5,189.27 01/09 270 8,248.13 02/09 N/A N/A 15 200 50 100 50 100 20 160 100 200 100 599.15 493.20 8,062.39 358.69 560.45 100 1,076.07 200 971.45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Ministry’s Comments Rifampicin/Isoniazid Tabs 150mg/100mg – Taken on charge Miconazole Nitrate vaginal Cream 2% – Senior Accountant directed not to pay supplier since short expiry drug Econazole Pessary 150mg Pkt of 3 – 7 months stock was taken on charge & balance of 1875 packs instructed to supplier to replace Miconazole Nitrate vaginal Cream 2% – 50 tubes accepted to be taken on charge for distribution.
Phenylepherine eye drop 10% – 40x20 accepted.

Balance of 50x20 to be credited for cash or replaced with better expiry.

Acyclovir Eye Ointment 30mg/g – All stock 270 tubes take on charge for distribution.

Ethosuximide caps 205mg – Taken on charge for distribution 11/09/08.

Scissors dressing sharp 5.5 inch – Taken on charge on 11/12/08 for distribution.

Basin stainless steel large (bathing) – Taken on charge for distribution on 03/04/09.
Sputum Mug stainless steel – Taken on charge for distribution on 03/04/09.

Stainless steel bucket calibrated – Taken on charge for distribution on 03/04/09.

Kidney dish stainless steel 10 inch large – Taken on charge for distribution on 03/04/09.

Bed pan stainless steel (paediatrics) – Taken on charge for distribution on 03/04/09.

Bed pan stainless (adult) – Taken on charge for distribution on 03/04/09.

Basin stainless steel adult – Taken on charge for distribution on 03/04/09.
Kidney dish (Stainless steel 7 inch) – Donated by supplier as per email dated 02/12/08.

Urinal male – Donated by supplier as per email dated 02/12/08.

Tray instrument stainless steel 40x27x6 – Donated by supplier as per email dated 02/12/08 Gallipots s/s 5 inch – Donated by supplier as per email dated 02/12/08.

Calcium chloride injection 10% 10ml – Taken on charge for distribution 11/02/09.
Nifedipine caps 10mg – Tender evaluation: tablet was accepted by Mr. Vosanibola & taken on charge for distribution on 20/2/09 Further OAG Comments Audit is of concern that these items were taken on charge, despite these items were quarantined due to short expiry, poor quality, wrongly supplied, and had non-english labelling.
Ministry of Health, Women and Social Welfare Section 19: Page 93 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 19.3: Details of Expired Drugs Item Code Drugs Date Expired Probenacid Tabs Methotrexate Injection Adrenaline Injection 1mg/ml Vinblastine Injection 10mg Lignocaine Plain Injection 1% Syringe Disposable 50ml Calciferol Strong Tabs 50000 units Bupivacaine Plain Injection 0.5% Bupivacaine with Adrenaline Dopamine Injection 200mg/5ml Nystatin Suspension Procarbazine HCL Caps 50mg Amiodarone Injection 150mg/3ml Nystatin Suspension 100000u/ml Dopamine Injection 200mg/5ml Bag Blood Double CPDA Ferrous Sulphate Elixer Daunobubicin Injection 20mg Adriamycin (Doxurubicin) 50mg Dacarbazine Injection 20mg Desferrioxamine Injection Colostomy Bags Ferrous Sulphate Elixer Pentavalant Vaccine HBV Infant Injection 10MCG Ephidrine Nasal Drops Suture Polygycolic Acid X-ray Contrast Media Endotrachael Tubes 22G Endotrachael Tubes 6.5 Uncuffed Endotrachael Tubes; Neonatal Size 4.0 Uncuffed Tetanus Toxoid Injection 10Dose HBV Adult Injection 20mg IV Giving Set Adult 60 Drops Syringe Disposable 10ml Syringe Disposable 50ml Quinine Sulphate Tabs 300mg Acetycholine Chloride Injection Fluorescein Eyedrops 2% PPD Human Tubercillin Salbutamol
 Nebules 2mg Digoxin Tabs 250mg Salbutamol Nebules 2mg Thinylestradiol Tabs Acetic Acid Solution Alcuronium Injection Actinomycin D. Injection Bleomycin Injection Lignocaine Topical Spray B CM 763 Lignocaine Topical Spray B CR 135 Oxybutnin Tabs CT Laser Films 30/04/08 30/04/08 01/05/07 01/09/07 01/12/07 01/01/07 01/12/07 31/05/08 31/05/08 31/05/08 31/05/08 30/05/08 31/05/08 31/05/08 31/05/08 30/05/08 31/03/08 30/04/08 30/03/08 30/04/08 31/11/07 14/10/07 31/03/08 31/01/09 14/06/08 30/06/08 30/06/08 30/06/08
 11/07/08 11/07/08 11/07/08 30/07/08 31/07/08 31/07/08 31/07/08 31/07/08 31/08/08 30/08/08 30/08/08 30/08/08 30/09/08 30/09/08 30/09/08 30/10/08 20/02/08 29/02/08 31/03/08 29/02/08 30/01/08 30/01/08 31/01/08 30/01/08 Cost $ Ministry of Health, Women and Social Welfare Section 19: Page 94 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Item Code Drugs Date Expired Total Measles Rubella Injection EU 941 Measles Rubella EU 933 Neo Natal Chest Electrode Probenacid Tabs 500mg IV Blood Giving Set Cyclophosamide Injection Lignocaine Plain Injection Gemini Set 2280-0000 HBV Infant Injection 10MCG Methyldroxybenzoate Pulv 100g PPD Human Tuberculin Anti-D-NRHD Immunoglobin Injection Conray 280 (ionic contrast medium) Cisplatin Injection 50mg X-ray Films (Box of 100) 35 x 43cm Tubes Feeding Infant 10FG Y Type Peritorial Dialysis Set Lignocaine Topical Spray
 B CM 763 Peritoneal Dialysis Solution 4.25% Barium Sulphate Suspension Gemini Set 2280-0000 Peritoneal Dialysis Solution 1.5% Y Type Peritorial Dialysis Set Blood Glucose Monitoring Strips Probenacid Tabs 50mg Methotrexate Injection Morphine Solution 1mg/ml - BX89C CE67B CP64B CB68A BF95A P559A CM55A DB50B W295A Methylphenidate Tabs 10mg - 6D0392 B5043 3L098 Codeine Phosphate Tabs 30mg – 46876 28121 55785 21086 Pethidine Injection 50mg/ml - KKMR22077 Morphine Injection 10mg/ml - M124520 30/01/08 30/01/08
 21/04/08 30/03/08 30/04/08 30/03/08 30/04/08 30/04/08 31/03/08 31/12/07 31/03/08 31/03/08 30/03/08 31/03/08 31/03/08 28/02/08 28/02/08 31/01/08 31/01/08 31/12/07 31/03/08 29/02/08 29/02/08 21/02/08 30/04/08 30/04/08 Apr-07 Sep-07 May-08 Jan-07 Jan-06 Sep-01 Sep-07 Jan-09 Mar-04 Jan-08 Jun-07 Jun-05 Aug-06 Oct-04 Apr-07 Feb-04 Mar-07 Apr-04 Cost $ Ministry of Health, Women and Social Welfare Section 19: Page 95 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 19.4: Unclaimed Patients Belongings Patients Name Unclaimed items Maya Wati Moshni Devi Latchman Gautum Vinaini R Ateca Ranadi Gulab Chand Vinay Reddy L. Robin Shin Kuar Bimla Chandra Wati Phil Kuar Daniel Moa Ana Marama Juleka Yashod Vilisi Vula Rukmani Pahalad May Lowa Muttu Sami Parwati Nair Ram Dulari Mangari Sala Ranadi Cakau Kaurun Pushpa Wati Shamshum Nisha Jaibun Nisha Kushma Wati Mere Tina Kamla Wati Amra Wati Seleima Phil Kumar Ram Pyari Roshni Lata Rameshwar Prasad Liza Robinson Satya Nand Helga Gudron N/A Dharam Raj Arumilla Queen Joji Marieta Rajit Singh N/A Mere Manuna
 N/A Lekima Nawasaitoga Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Purse Ladies Earrings Chain and earrings Earring and necklaces Purse with papers Ladies Bangles 1 necklace, 2 hair slides, 1 safety pin Sunglass and 1 cross 1 pair of earrings Purse and lottery tickets Ladies Purse Wrist Watch Chains Necklace Gold chains 2 bangles 1 wrist watch, 1 jewel Ring and pendant 2 pair of bangles, 1 pair of earrings Hair pins, 2 earings
 1 pair earing Purse, 1 bank book Jewellery box Beads Necklace Chain brass Black necklace Chains Wrist watch Necklace Watch Passbook with balance of $820.63 of the Commonwealth Savings Bank of Australia 1 camera, 1 scissors 1 pair earrings, 1 plastic bangles Bangles and necklaces Whales tooth (Tabua) Silver bangles Wrist watch $2 in purse, 2 wrist watch 1 camera 1 Westpac passbook with $9.03 Ministry of Health, Women and Social Welfare Section 19: Page 96 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Patients Name Unclaimed items N/A Gopal Naicker Doreen Kumar N/A Arumila Aca Gukilau Seini Vikila Maraia Karalaini Karai George Anand Prasad Yad Ali Pushpa Wati Shin Dass Rupeni Lega Abdul Kaiyum Baskar Indarsen balance 10 purses 1 purse Necklace, sunglass and purse Necklace Necklace Purse 2 rings Watch Passbook with $3.05 balance 1 purse, 1 wrist watch Fiji medal Passbook Passbook Passbook, 1wrist watch Purse, watch and keys 1 sunglass, 1 wrist watch Passport Appendix 19.5: Discrepancies in the Patients Comfort Trust Fund Account Date of Request Cheque No.
Amount Approved by MS $ Amount in Ledger $ Date Withdrawn Amount Withdrawn $ 09/08/07 N/A 21/08/09 N/A N/A 30/08/07 N/A 04/09/07 18/09/07 27/09/07 02/10/07 11/10/07 N/A 23/10/07 26/10/07 30/10/07 08/11/07 N/A 15/11/07 22/11/07 28/11/07 N/A N/A 11/03/08 11/03/08 18/04/08 06/10/08 64 65 68 70 71 72 74 75 76 78 79 80 81 82 84 85 86 87 88 89 90 91 92 93 94 97 102 20.00 N/A 21.00 N/A N/A 45.00 N/A 46.97 50.00 28.60 20.70 43.00 N/A 55.00 162.70 46.97 65.00 N/A 66.00 25.00 39.00 N/A N/A 50.00 7.20 2.80 N/A 20.00 30.00 21.00 45.00 20.00 45.00 60.00 46.97 50.00 28.60 20.70 43.00 63.00 50.00 162.70 46.97 65.00 38.00 66.00 25.00 80.00 N/A N/A N/A 7.20 N/A 77.52 09/08/07 15/08/07 21/08/07 22/08/07 27/08/07 30/08/07 04/09/07 05/09/07 18/09/07 28/09/07 02/10/07 11/10/07 11/10/07 23/10/07 26/10/07 26/10/07 08/11/07 13/11/07 15/11/07 23/11/07 23/11/07 19/12/07 04/02/08 08/02/08 11/03/08 18/04/08 06/10/08 120.00 180.00 821.00 155.00 921.00 945.00 860.00 846.97 850.00 928.60 620.70 843.00 863.00 885.00 1162.70 846.97 265.00 880.00 866.00 625.00 639.00 200.00 65.17 87.80 777.20 162.80 577.52 Variance $ 100.00 150.00 800.00 110.00 901.00 900.00 800.00 800.00 800.00 900.00 600.00 800.00 800.00 830.00 1,000.00 800.00 200.00 842.00 800.00 600.00 600.00 200.00 39.00 37.80 770.00 160.00 500.00 Ministry of Health, Women and Social Welfare Section 19: Page 97 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Date of Request Cheque No.
Amount Approved by MS $ Amount in Ledger $ Date Withdrawn Amount Withdrawn $ N/A N/A N/A N/A Total 104 106 107 108 N/A N/A N/A N/A 54.13 N/A N/A N/A 23/10/08 15/12/08 15/12/08 17/12/08 854.13 250.00 240.00 555.00 Variance $ 800.00 250.00 240.00 555.00 17,684.80 Appendix 19.6: Patients Comfort Fund –Receipts not lodged Date 15/02/08 12/03/08 13/03/08 30/04/08 13/05/08 14/07/08 16/09/08 17/09/08 02/10/08 04/10/08 04/10/08 07/10/08 05/12/08 10/12/08 29/12/08 Total Sangam Institute –Nursing School Colonial Insurance Subramani Pulotu Received From Receipt No.
428800 435551 435553 435554 435555 Mr. Alex 435556 435557 435558 Wingate Marketing Ltd 435560 435561 Ms Jamila 435562 Open Day Committee 435563 Ms Anjani Singh 435564 435565 435568 Leba Litiana Sudhir Deva Aiyaz Ali Rotaract Club N/a Fiji Directories Yellow Page Amount $ 1,000.00 5.00 134.90 20.00 20.00 100.00 200.00 200.00 250.00 100.00 226.50 1,000.00 292.70 500.00 20.00 4,069.10 Appendix 19.7: Overpayment of Salary (1) Resignations Name Siteri Rasiga EDP No.
30791 Division Lautoka Hospital Nirmala Kumar 31365 CWM Hospital Amount $ Comment 14,470.54 Officer tendered her resignation on 26/04/07 to be effective from 28/04/07.

She faxed letter to Mrs Tuiloma on 27/04/07.

Mrs Tuiloma just wrote a minute note on the action to be taken on the officer and filed away the letter.

4,677.34 Advise on resignation – Late submission to salary section.
Ilisapeci Vosikata 31447 FSN 890.07 Advise on resignation – Late submission to Elina Movono 31588 CWM 242.49 Advise on resignation – Late submission to salary section.

salary section Akeneta Rekitilako 32334 Study Leave Officer 31.54 Advise on resignation – Late submission to salary section.

Sereana Dauveiqaravi 32690 Lautoka Hospital 1,562.79 Short notice of resignation and late cession of salary.

Shaleen K Chand 32812 CWM 1,710.11 Short notice of resignation and late cession of salary.
Ministry of Health, Women and Social Welfare Section 19: Page 98 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Name Purnima Sharma Ateca Ravula Fulori Daunibau Losena Finau Division EDP No.

32921 Nadi Hospital 33110 33132 33135 Amount $ Comment 1,479.62 30 days short notice.

232.43 Advise on resignation – Late submission to salary section 39.55 Advise on resignation – Late submission to salary section.
658.56 Short notice of resignation and late cession of salary.

Agnes Rose Rounds 33227 Nausori 1,168.61 Short notice of resignation and late cession of salary.

Durga Durgeshi Naidu 33240 1,174.12 Short notice of resignation and late cession of salary.

Reshmi D Narayan 33567 146.08 Advise on resignation – Late submission to salary section.

Nilam Naidu 33699 Lautoka Hospital 5,782.42 Short notice of resignation and late cession of salary.
Josefa Cokanauto 33709 Study Leave Officers 2,728.76 Short notice of resignation and late cession of salary.

Ulamila Masirewa 33751 CWM 1,416.64 Short notice of resignation and late cession of salary.

Brijesh Singh 33806 Taveuni Hospital 1,255.76 Short notice of resignation and late cession of salary.

Shyamil Veeran 33957 Lautoka Hospital 1,156.48 Short notice of resignation and late cession of salary.
Artika Ben Ireen Deo 33957 DMO Western 4,032.24 Short notice of resignation and late cession of 34248 Labasa Hospital 140.65 Advise on resignation – Late submission to salary section.

salary.

Isireli Lewanavanua 61041 CWM 971.88 Advise on resignation – Late submission to salary section.

Rupa Rao 61323 Western Public Health 2,440.48 Advise on resignation – Late submission to Adriu Sepeti 62836 Lautoka Hospital 5.35 Advise on resignation – Late submission to salary section.
Josese Vereti 62481 CWM 171.15 Advise on resignation – Late submission to Ramesh C Ram 63531 CWM 2,577.41 Short notice of resignation and late cession of salary section.

salary section.

salary.

Ledua Siga 63787 FSN 845.20 Advise on resignation – Late submission to Meli Vakacabeqoli 64894 Study Leave Officers 2,348.90 Short notice of resignation and late cession of salary section.
Madhukar Marvin Kumar Lovobalavu Adela Parikshath C Naidu 90309 CWM 63668 63993 Taveuni Hospital Lautoka Hospital 14,503.15 PSC Scholarship Loan.

2,765.46 Student Bond PSC Scholarship loan.

1,680.20 Short notice of resignation and late cession of salary.

salary.

Loata Serau 59705 Lautoka Hospital 1,672.96 Short notice of resignation and late cession of Total (2) Retirement salary.

74,978.94 Name Merewairita Laudola EDP No.


30600 Division Lautoka Hospital Amount $ Comment 1,057.53 Salary section was advised retirement of Officer.

late on the Ministry of Health, Women and Social Welfare Section 19: Page 99 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Name Suruj J Chand Division EDP No.
30897 Ra Health Centre Salusalu L.T 31022 Valelevu Health Centre Sereima R 31136 Lautoka Hospital Litia Levulevu 58104 Tamavua Hospital Total (3) Deemed to Resign Comment Amount $ 442.09 Salary section was advised retirement of Officer.

90.74 Salary section was advised retirement of Officer.

408.45 Salary section was advised retirement of Officer.

74.39 Salary section was advised retirement of Officer.

2,073.20 late on the late on the late on the late on the Division EDP No.
33276 Nadi Hospital 33745 33845 CWM 34086 CWM 59893 Labasa Hospital Tamavua Hospital Comment Amount $ 745.60 Deemed resignation w.e.f.

29/10/08 1,084.20 Deemed resignation w.e.f.

20/09/07 1,369.48 Deemed resignation w.e.f.

10/11/08 3,401.92 Deemed resignation w.e.f.

01/01/08 618.96 Deemed resignation w.e.f.

03/12/07 7,220.16 Name Maria V Biu Susan Pratika Lal Rashni Ranjani Lal Sherad Sharma Narend Chand Total (4) Passed Away Name Seruwaia Nawaibalavu EDP No.
30904 Division Savusavu Hospital Comment Amount $ 243.61 Salary section was advised late on the Death Ateca Masi Ikimawa T A 32041 CWM 32132 CWM of Officer.

779.43 Salary section was advised late on the Death of Officer.

673.62 Salary section was advised late on the Death of Officer.

Keasi Tokacau 32361 Sigatoka Hospital 795.64 Salary section was advised late on the death of Officer.
Kalesi Bau 32532 CWM 412.64 Salary section was advised late on the death of EroniTuibuca 49222 Nausori Hospital 283.48 Salary section was advised late on the death of Officer.

Total (5) Termination Officer.

3,188.42 Name Unaisi Sukanivalu EDP No.
32822 Division Labasa Hospital Comment Amount $ 516.13 Salary section was advised termination of the officer late on the Maraia Ulalia 33683 Vunidawa Health Center 1,115.70 Salary section was advised late on the Peter Zinck 53660 Government Pharmacy 46,716.94 Salary section was advised late on the termination of the officer Total termination of the officer 48,348.77 Ministry of Health, Women and Social Welfare Section 19: Page 100 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ (6) Leave Without Pay Name Nabuli Raijieli EDP No.
32385 Division Amount $ Comment Lautoka Hospital 61.73 Salary section was advised late that officer is on leave without pay.

Ana Mataika 32741 SDMO Suva 1,331.13 Salary section was advised late that officer is on leave without pay.

Temanibwebwe Arouea 33079 CWM Hospital 591.85 Salary section was advised late that officer is on leave without pay.

Dineshni Lata 33114 Labasa Hospital 1,781.99 Salary section was advised late that officer is on leave without pay.
Agnes McKay 33481 Levuka Hospital 547.79 Salary section was advised late that officer is on leave without pay.

Ravinesh Kumar 33710 CWM Hospital 53.81 Salary section was advised late that officer is on leave without pay.

Sulueti Vuki Nawadra V 33742 CWM Hospital 1,059.06 Salary section was advised late that officer is on leave without pay.

58905 Government Pharmacy 1,009.10 Salary section was advised late that officer is on leave without pay.
Anaseini Cakaunitabua 60669 CWM Hospital 953.10 Salary section was advised late that officer is on leave without pay.

Sireli Vaka dravuyaca 61520 CWM 465.55 Salary section was advised late that officer is on leave without pay.

Jeremaia Mataika 62501 Labasa Hospital 470.67 Salary section was advised late that officer is on leave without pay.

Mireta Noere 63149 St Giles Hospital 6,462.13 Salary section was advised late that officer is on leave without pay.
William Koong 63961 CWM 38.85 Salary section was advised late that officer is on leave without pay.

Pauline Prabha 64851 Levuka Hospital 39.27 Salary section was advised late that officer is Total (7) Did not Resume Duties on leave without pay.

14,866.03 Name Selina Kosoituku Lusiana Tudravu Brij Beo Wiliam May Renata Ram Total Division EDP No.
32573 Nausori Hosptal 34298 53867 CWM 59261 CWM 90405 CWM Tamavua Hospital Amount $ Comment 3,584.31 Salary section was advised late to cease salary 7,844.45 Salary section was advised late to cease salary 319.48 Salary section was advised late to cease salary 4,109.50 Salary section was advised late to cease salary 304.37 Salary section was advised late to cease salary 16,162.11 (8) Missing from Work Name Mereoni Binitabua EDP No.
33336 Division Amount $ Comment Vunisea Hospital 3,692.68 Missing from work for 1 month and salary section was advised late to cease salary.

Amelia Turagabeci 61322 Central Public Health 663.17 Absent from work for 2 weeks and salary Total section was advised late.
4,355.85 Ministry of Health, Women and Social Welfare Section 19: Page 101 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ (9) Study Leave Without Pay Name Lavenia Tukana Total Division EDP No.

32201 Amount $ Comment 3,255.27 Salary section was advised late to cease salary.

3,255.27 (10) Suspension from Duties Name Alipate Gonerogo Vitalina Radinisiwa Wakesa Davetanivalu Mere Tora Total Division EDP No.
18258 Head Quarters 33207 DMO Northern Ba Mission Hospital 49132 59022 Nabouwalu Hospital Amount $ Comment 2,198.62 Salary section was advised late to cease salary 309.91 Salary section was advised late to cease salary 268.40 Salary section was advised late to cease salary 171.30 Salary section was advised late to cease salary 2,948.23 Appendix 19.8: Overpayment of Salary on Resignations from 2006 – 2007 EDP No.
Officer’s Name Total Overpayment $ 15387 Nainoca A Naerecoko 768.25 Amount Recovered $ --- 18899 19014 31058 31075 31523 31231 31395 31542 31764 32609 32940 33026 33381 33438 33598 33677 33959 40271 45642 45652 60832 64438 64488 60330 33564 33252 32852 33628 Ligabalavu Railala Seruwaia Young Lanieta Koyamaibole Mereani Saumi Mereseini Simpson Apiuta Waitui Saini M L Ravasakula M Racolo S Salacieli Lotawa Priya Frances Maria Nora Laxshmi Devika Rama Shirlvindar Kaur Tazneem Razia Losana Bise Asena Marawa Premilla Sharan Josaia Maka Sau J Aminiasi Tavui Poasa T Mereseini N Zheng D Ravina Kumar Jonetani Rokona Meena Prasad Viliame T 654.41 790.91 2,587.49 569.23 5,874.26 2,258.44 634.56 2,570.47 3,475.40 578.48 2,141.38 1,547.89 2,710.51 840.25 460.78 2,002.56 1,077.82 525.00 4,282.40 3,980.84 548.75 544.04 798.28 1,720.30 1,015.80 69.75 673.10 6,237.56 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- Audit Comment Letter was written to inform the officer.
No recovery was made.

No receipt for recovery made as sighted in file No receipt for recovery made as sighted in file File missing No receipt for recovery made as sighted in file No receipt for recovery made as sighted in file File missing No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made No recovery made.

Officer now in NZ.
Officer now in NZ.

No recovery made No recovery made No recovery made No recovery made No recovery made.

No arrangement in file No recovery made.

Now residing in NZ.

No recovery made No recovery made No recovery made.

Officer now in Tonga.

Wife in FSM Ministry of Health, Women and Social Welfare Section 19: Page 102 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No.
Officer’s Name Total Overpayment $ Amount Recovered $ Audit Comment 33767 64555 Aketa Tiaon John Morris Total 1,264.63 5,888.24 59,091.78 --- --- --- and a letter has been written to her to recover this amount.

No recovery.

No recovery.

Officer an Australian national, now in Australia.

Appendix 19.9: Consolidated Allowances EDP No.


Name Station Remarks 33452 Viema Qorovakarua Navua Health Service/ Waivaka Nursing Station 33505 Bulou Keleni Bukuya Health Center (Pay01 – 26) .Officer on A/L wef 12/05-20/05/08, 21/05-28/05/08.

to be Allowance has recovered for this period.


(Pay01-03) 33482 Akariva Ravula Taveuni Hospital (Pay01 – 26) 33570 Ro Anaseini K Levuka Health Service/ Moturiki Nursing Station 33587 Macanawai S Lautoka Hospital (Pay01-26) Officer was leave wef 25/08- on where 17/09/08 to be allowance has recovered.

(Pay01-09) 33589 Sera V M Nadi Hospital (Pay01-26) 22227 33672 33679 Isoa Natui Leba Mereani Makereta Rosi Ba Health Service Lautoka Hospital Lakeba Health Service/ Udu N/S.
33718 Roseruvatu A Onoi Lau Health Center/ Onoi Lau N/S 33732 33741 33748 33764 33811 33917 Sera Naiti Sokoveti R Tokasa Y M Timaima W Elenoa Neioba Nanise Natoga CWM Hospital Lautoka/Yasawa Health Center Levuka Health Service Namarai Health Center Lautoka Hospital Korovou Health Service Pay 01 - 04 Pay 01 - 26 Pay 01 - 26 Officer on maternity leave wef 21/01/08-14/04/08 and A/L wef15/04-05/05/08 where allowance has to be recovered.

Pay 01 – 26.
Pay 01 – 26.

Officer on 24/12/07- A/L 23/01/08, 13/02/08- 15/02/08 but return to 7/03/08.

station on Allowance has to be recovered.

Pay 01 - 02 Pay 01 - 26 wef Pay 01 - 09 Pay 01 - 26 Pay 01 - 09 Pay 01 - 26 Allowance per Pay $ Allowance Paid to be Recovered.
$ Ministry of Health, Women and Social Welfare Section 19: Page 103 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No.
Name Station Remarks Allowance per Pay $ Allowance Paid to be Recovered.
$ Agilina Sophi Atelaini Naini Rajesh Chand Loata Marama Ifereimi R Denisia Naikusa Yabakidua T Bernadette L N Vere M L Alanieta Senicagi Rainima Daina Bentitai Tarome Rainima Vani Unaisi Basecala Duilomaloma Ilisapeci Belebele Tokasa Milika Qilu Repeka Tinaisoni Viniana Qalo Iliseva Labalaba Roma Salote Unaisi Mateinai Vitalina R Jovilisi Qiboni Asenaca Adi Divuso Turaga Jane Vakasa Nora Vasukorolevu Inise Teira Vodoimuri Sera Vika Seru Luisa Vakatale Fulori Leweni Latileta Salia Kesaia Rogoyawa Ulamila Naulivou Dali Tabua Talanuku K Liku Vonokula Sera Tamoi Navua Health Center Labasa Hospital Labasa Hospital Lautoka Hospital Savusavu Health Service Nadi Hospital Wainikoro Health Center Moala Health Center Korovou Service/RKS Station.
Health Nursing Pay 01 -04 Pay 02 – 07 + 421.89 Pay 02 – 13 + 639.10 Pay 02 - 06 Pay 03 - 16 Pay 04 – 22 + 327.50 Pay 01 - 26 Pay 01 - 14 Pay 01 – 26.

Officer on wef Annual 08/12/08 – 09/01/09, where allowance has to be recovered.

Leave Nausori Health Center Korovou Health Center CWM Hospital Lautoka/Yasawa Health Center OPH - Labasa Lautoka/Yasawa Health Centre Vunisea Health Services/ Soso Nursing Station Pay 01 -10 Pay 01 - 26 Pay 01 - 11 Pay 01 - 26 Pay 01 – 26 Pay 01 - 14 Pay 01 – 14 .
Officer Post Basis to FSN from 14/4/08-14/12/08.

Pay 9 to 14 to be recovered.
Pay 01 - 26 Vunisea Health Service Pay 01 -26 Natewa Health Center Pay 01 -26 Vunidawa Health Center Pay 01 - 06 Korovisilou Health Center Pay 01 - 26 Vunisea Health Service Pay 01 - 07 Nausori Health Center Pay 01 - 03 Nothern Health Service Pay 01 - 26 Vunidawa Health Service Pay 01 - 14 Savusavu Health Service Pay 01 - 26 Sigatoka Health Service Pay 01 - 26 Kabara Health Center Pay 01 -02 Qarani Health Center Pay 03 - 08 CWM Pay 01 - 26 Navua Health Service Pay 05 – 26 + 410.85 Northern Health Service Ba Mission Hospital Pay 07 – 26 + 675.54 Nabouwalu Health Service Pay 11 – 26 + 533.68 Wainibokasi Service Rakiraki Health Service Lomaloma Health Service Lautoka/ Yasawa Health Service Labasa Hospital Namuamua Rakiraki Health Center Mokani Health Center Pay – 12 - 26 Pay 13 – 26 + 1,152.02 Pay 13 – 26 + 1,293.50 A lump sum of $623.12 was paid Pay 12 – 26 + 539.35 Pay 12 – 26 + 1,081.75 Pay – 12 – 26 + 980.83 Pay 12 – 26 + 1,154.64 Health _ Ministry of
966.28 2,693.69 2,587.00 623.12 Ministry of Health, Women and Social Welfare Section 19: Page 104 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No.
34058 34064 34036 32482 33611 33243 32724 33695 34017 34123 34063 Total Name Station Remarks Ro Iva Q Rusila Aditora Miliana Tuvou Vakaloloma Y Ateca Bull Emeline V Mereadani M Naomi Qalotaki Losalini Popua Wilfred Vono Ruci S Vunisea Health Service Vunisea Health Service Nausori Health Center Beqa Health Center Dreketi Health Center Suva Health Center Vunidawa Health Center Taveuni Hospital Savusavu Health Service Lakeba Health Service Levuka Health Service Pay 15 – 26 + 577.71 Pay 15 – 26 + 577.71 Pay 16 – 26 + 922.62 A lump sum of 1,196.34 was paid Pay 08 – 26 + 1,294.24 Pay 19 – 26 +784.76 Pay 23 – 26 Pay 23 – 26 + 1,288.59 Pay 24 – 26 Pay 25 – 26 Pay 26 Allowance per Pay $ 76.30 76.30 80.90 _ 80.90 83.22 59.45 80.90 76.30 76.30 77.85 Allowance Paid to be Recovered.
$ 1,417.01 1,417.01 1,731.62 1,196.34 1,941.36 1,367.21 237.80 1,531.29 228.90 152.60 77.85 77,398.43 Appendix 19.10: Cases where the Disciplinary Board failed to take Action Name Case EDP No.
17242 Alipate Drulidruli 53614 Ana V. Qadrodro UK 742 Misaele Tuinaqaidamu 62596 Mere Marama Alleged to have misappropriated than totalling more funds $7,000.00 in the procurement of goods and services in Northern Health Services totalling Alleged to have misappropriated funds $3,427.59 allocated by WHO for the Project Funds for Medical Registration Upgrade Project, 2007.

She was approved to undertake the project on 29/01/07 by DCS with the recommendation from DNSS.
Alleged to have misappropriated funds totalling $1,145 between November and December of 2007 whilst working as a recorder at the A&E department in tactics Alleged to have continued with her delaying the lodgement of revenue.

The officer used $471.15 with effect from 26/05/08 to 03/06/08 and paid it back on 05/06/08.

Alleged to have removed some items from the hospital stores.

& Recommendation Progress Recommended the officer be charged and surcharged for the amount misappropriated.
that Audit Comments has officer The been terminated on the 29/07/08.

Nothing has been recovered from him as at the date of audit.

to Recommended be charged.

Recovery was effected on pay 1 of 2008.

As at to date, 15/04/09 no recovery has been made and the matter was not reported to the police.

The officer had submitted his explanation to Mr. Matalau at CWM Hospital.

Termination letter dated 18/03/08 DCS Minute to recommending the removal of the officer from Savusavu hospital Terminated on the 29/07/08.
Nothing recovered from him.

The matter was not reported to the police.

Staff still in Savusavu as Clerical Officer.

Was issued with a warning letter.

that Recommended the officer be surcharged for the missing items.

Not surcharged yet.

No deduction in payroll system as at the date of audit 59802 Jittendra Lal Alleged to have misappropriated funds totalling more than $7,000 in the procurement of goods and services in the Northern Health Services.
that Recommended the officer be charged and surcharged for the amount misappropriated.

Not surcharged but officer was terminated on 29/07/08.

Ministry of Health, Women and Social Welfare Section 19: Page 105 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No.
58856 Name Case Salote Takala to have behaved Alleged unprofessionally and irresponsibly and abused his professional responsibility by making excessive orders of meat on and chicken dated 29/11/07(requisition 23/11/07, No.115597) the patients in the Hospital which was later disposed off.

for & Recommendation Progress Recommended the officer be charged for her and unethical unprofessional conduct.

that Audit Comments Not surcharged.

transferred Officer Lautoka Hospital under supervision.
to to work 61322 Amelia Turagabeci to have gone on Alleged unauthorized study leave with pay for four years with effect from October 2003 to October 2007 undetected.

for Officer’s salary four years to be deducted from her salary.

The amount of deduction is $250 per fortnight for a period of 10 years.

Failure of her supervisor to monitor her unauthorized study leave.

As at the date of audit nothing has been recovered.

The matter was reported to police.

Resigned on 26/02/08.

No caution personal file.


letter in his Lenient in handling his case as he is frequently late and is not improving.

No action was taken.

Audit check in 2008 No recovery made for losses and no progress noted the in case.

Current post Clerical at officer Health-HQ 62599 Ashad Ali Alleged to have poor attendance continuously being warned and salary deducted on numerous occasions despite Officer be counselled and issued with a caution letter.
Audit noted that Mr Ashad Ali, EDP 62599, engaged a total of 8 labourers on Saturday 9th of August any approval to remove the rubbish Carpenters from Workshop.
of hiring labourers amounted $259.36 Tamavua The 2008, without Appendix 19.11: Disciplinary Cases for which No Action Taken Irregularities Action taken Officer from FPS to HQ re-assigned EDP No./ LPO 64359 Name Naushad Buksh Substantive Post Clerical Officer at Health -HQ 45858 Matai Matakitoga General Manager Corporate Service Forging and assisting companies $38,442 worth procurements quotations fraudulently associate with of Authorised $54,661 to J.J Roedan Ace and $4,000, to SDA youths without any authority.
No action date taken to No action taken to date of audit Officer had resigned from Ministry 2008. the in Ministry of Health, Women and Social Welfare Section 19: Page 106 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No./ LPO Name Substantive Post Irregularities Action taken Surcharge recommended was Audit check in 2008 No action taken to date of audit.
Current post Split LPO’s whilst repairing a Dental Caravan GM 385 at Marine Motors for $11,890 Paid Raiwaqa Buses Limited for cost for hiring of 60 seater bus taking for Ministry Choir for the Church Methodist Annual Conference from Suva/Nausori/Suva wef 18/8/06 for $250.

Paid Siteri’s Catering Services for cost of providing: Catering Services for Ministry of Health's Sports on (Dinner Day.

29/10/05 700 for people x $7.50 & Lunch for 400 people x $7.50) = $8250 X 50% = $4125.
Paid Siteri’s Catering Services for MOH Sports Day.

(2x$245.00) in of Paid Life Insurance Corporation of India for damages to the the partitions LICI staircase during Building central/eastern health services renting of the premises.

The loss was $480.

of Paid Lalas Store for providing cost legal court lawyers uniform legal for officers of Ministry of cost Health.

The incurred was $685.

No evidence of recovery.


We agree to recover the cost of the bus from Committee members responsible for this social event.

We agree to recover expended money from those officers responsible.

No evidence of recovery.

We agree to recover expended money those officers from responsible.

No evidence of recovery.

No investigation was conducted and no officer was surcharged.
No action taken the Further investigation will be conducted to determine as to why PSC was not advised and cost of repairs to be met from “Office Accommodation” vote.

Officers found responsible will be surcharged as recommended.

the We agree to be is amount recovered the officer’s salary we will communicate with your office further on this.
from that Health Staff #: LPO 48374 8/18/2006 Health Staff #: LPO 36150 10/28/2005 Health Staff Health Staff #: LPO 36150 10/28/2005 #: LPO 40177 16/2/2006 Health Staff #: LPO 30728 11/8/2005 14623 Senior Health Inspector Gyan Prakash (officer authorized the at repairs Auto Jeral Three Leco 3 (mosquito spraying) machines used by Health Officers were taken to Jeral Auto Your comments are noted.
The Ministry’s Disciplinary Committee has examined the issues No action taken Ministry of Health, Women and Social Welfare Section 19: Page 107 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No./ LPO Name Service Substantive Post Pharmacists at the Labasa Hospital 18901 Penina Cirikiyasawa Principal Admin Officer Irregularities Action taken Audit check in 2008 Current post Services on 2/11/06 for repairs.116 The company was paid $2,700 on 20/12/06 but it was revealed that none of the three machines have been repaired date.
Jeral Auto Services ceased operations in early 2007. to The non adherence the cold chain to policy and lack of the awareness of policy resulted in the to damages the totalling vaccines thus $39,272.52, wastage of public funds.

-Failed to enter into a contract with Falekau South Pacific Limited.

-Advance payments of $100,000 were made with the first $60,000 on 13/01/05 and on $40,000 27/09/05.

raised with a view of disciplinary taking the action against officers responsible.
We agree to further query officers on duty during that particular Sunday to determine whether the damages could been have avoided and not due of “negligence to duty”.

Should it be proven, as “negligence” appropriate disciplinary action will be against taken those responsible.

said Management further they would investigate to determine the officers the responsible advance payment and take appropriate disciplinary action.

for No action taken No action taken to date.
Resigned from Ministry 2008. the in 116 LPO number 51716 Ministry of Health, Women and Social Welfare Section 19: Page 108 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ EDP No./ LPO Name Substantive Post Irregularities Action taken Tamavua Garage Mechanics Tamavua Garage Mechanics Tamavua Garage Mechanics in the As reported 2006 audit report, some vehicles parts had gone missing for taken whilst repairs private at garages, refer below for details: GN132 was repaired Shika Motors at was where discovered that $4,414.75 worth parts were missing.
it GL064 was parked at Marine Motors and upon dismantling at the Tamavua garage it was discovered that parts were missing.

CO362 had parts missing when taken to Shika Motors for repairs.

The 2006 audit report highlighted cases of cannibalizations of vehicle parts.

that noted Audit $9,079.00 worth of tools and machines were missing from the Garage.

Your comments are noted.

This will be covered under the full Investigation to be conducted.
Officers found negligent and who were responsible for the “losses” will be disciplined.

Your comments are noted.

This will be covered under the full Investigation to be conducted.

Officers found responsible for alleged the cannibalization of motor parts will be disciplined.

Your comments are noted.

We will keep your office updated once a Board of Survey is completed appropriate and taken on all action missing tools mentioned.

Audit check in 2008 No investigation was conducted.
Current post No investigation was conducted.

board of carried the No survey out at Tamavua Garage and no one was held responsible for the missing tools worth $9,079.00, as audit again verified that the remained tools unaccounted in March, 2008.

Ministry of Health, Women and Social Welfare Section 19: Page 109 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Appendix 19.12: Overtime Claimed by Lab Technicians CWM Lab Technicians Name EDP No.
90134 Seniloli Miliakere 90133 Gounder Ardhana 90345 Kaur Jashvindar 90347 Sudhakar Atleshwar 59010 Gonelevu Alanieta 64011 Chand Rajnil 64859 Prasad Nandika 64008 Vijesh Lal 64381 Maharaj Praneel 64857 Chand Sunil 62845 Mekemeke Eparama 59012 Baro Silovate 62486 Prasashwini 60288 Cabemaiwai Talica 63661 Togoloa Mereoni R 61274 Malani Paulini 63947 Nizamee 46192 Manuca Reaoi 62487 Parkash Sujit 59367 Viuyasawa Litia 53659 Batinivoka Arieta 60084 Davetanivalu Daiana 60085 Bukadua Asena 64380 Ashis Vikash Chand 60748 Tuione Aralai 63944 Singh Anish Praneel 53053 Volavola Isoa 61680 Rosova Silivia 62086 Ciusia Anareta Takoi 61277 Raikabula Maopa 60745 Wainiqolo Senibua Total Annual Salary $ $ $ 1,864.85 858.14 --- --- 1,649.33 3,817.16 4,418.78 7,081.93 6,105.28 5,305.74 1,167.29 2,361.3 2,700.27 7,098.92 6,157.89 13,708.16 9,990.68 13,433.51 10,895.18 9,745.00 9,171.06 --- 12,696.58 9,382.83 --- 6,374.05 5,852.38
 9,939.69 7,496.62 5,855.34 10,498.15 184,767.97 Lautoka Hospital Lab Technicians Name Jaishika Nand EDP No.
63761 Praneeta Singh 63798 Hemesh Chandra 90485 90487 Shivanjali Sharma 62484 Ritambhana 64377 Nazeema Ifrana 64351 Luisa Bainisavu 63135 Arti Kaur 64861 Neelambra Devi 64557 Shofeen FN Begum 60286 Mereani Lewaravu 64873 Ashwini Vinod Annual Salary $ 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 17,305.00 14,889.00 2008 $ 7,065.62 6,865.46 6,418.54 1,855.02 5,605.78 9,007.67 3,018.22 8,060.23 4,506.31 1,125.54 6,596.03 9,331.82 2007 $ 5,799.62 5,850.65 --- --- 4,911.57 6,914.22 156.02 5,942.89 4,331.24 669.98 8,581.68 5,833.34 2006 $ --- --- --- --- --- 6,175.27 --- 10,879.43 6,374.14 --- 441.67 3,346.1 4,873.19 5,345.47 2,492.37 10,810.41 8,515.05 10,130.71 8,191.77 8,435.16 11,955.27 5,181.75 1,1291.1 4,858.12 4,516.99 7,520.57 9,136.72 8,922.00 1,462.34 4,239.99 5,888.23 160,983.82 2006 $ 8,832.51 7,283.97 --- --- 5,707.15 5,726.68 253.5 2,620.53 --- 936.54 6,474.09 --- Ministry of Health, Women and Social Welfare Section 19: Page 110 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Name EDP No.
61694 Josese Mailulu 90344 Muni Swatika Naicker 58316 Saimoni Vakameau 60744 Ulu S Volau 64111 Epeli Kurikitoga Total Annual Salary $ 16,763.00 14,889.00 17,844.00 16,763.00 14,889.00 2008 $ 12,760.16 1,177.43 8,520.17 8,170.03 6,779.08 106,863.11 2007 $ 11,318.36 --- 7,824.44 7,203.65 6,965.5 82,303.16 2006 $ 10,039.05 --- 7,142.32 5,329.18 7,925.38 67,334.36 Labasa Hospital Lab Technicians Name Josese Limaono EDP No.
47480 Joana Maravou 49283 Balwant Singh 58831 Timoci Racolo 59288 60280 Narayan Sat 60287 Asaeli Tamanitoakula 61686 Cabe Sakiusa 62247 Vikash Lal Sharma 62501 Jeremaia Mataika 63132 Prasad Dharmend 63764 Ibrahim S Zaheen 63943 Rozeleen G Chand 63945 Prasad Vinita 64010 Deo Kaveesh 64045 Osea Waqa 64352 Pillay Camilla 64382 Mun Reddy 64440 Shalendra Sharma 90076 Narayan Melisha Total Annual Salary $ 17,844.00 12,068.00 17,844.00 17,305.00 17,305.00 17,305.00 16,763.00 8,751.00 20,928.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 14,889.00 20,547.00 14,889.00 2008 $ 8,045.85 2,289.25 8,416.64 10,747.70 15,092.01 6,892.88 6,764.11 1,480.95 3,654.62 15,009.61 15,261.37 4,588.56 10,883.29 12,155.35 12,331.26 9,010.86 8,977.50 4,862.73 8,542.55 165,007.09 2007 $ --- 2,840.21 9,780.44 15,872.54 16,512.92 11,291.68 11,039.26 1,850.19 --- 18,658.60 14,895.80 4,994.19 8,432.38 11,136.21 12,648.95 8,971.68 4,631.64 3,324.93 1,925.12 158,806.74 2006 $ 236.94 2,494.35 10,527.67 11,396.06 14,063.30 2,622.19 7,768.59 1,953.79 2,442.01 12,836.86 13,888.82 10,682.01 5,465.93 6,551.04 6,700.75 2,632.29 4,472.36 4,786.31 --- 121,521.27 Appendix 19.13: Conditions of Ambulances Maintained by the Ministry Station Vehicle No.
Condition of Vehicle Korovou Hospital GK633 Rakiraki Hospital GN067 Savusavu GL064 GN 646 DT224 Body work done in December 2008.

The vehicle is very old and unreliable.

At times have to roll start.

The ambulance is only used to transfer patient to CWM Hospital and is not used to serve the rural areas.

There are no facilities for the provision of oxygen and medication.

The staffs have to carry the portable oxygen machine.

The vehicle was donated by the Korean Government and is about five years old.
It serves whole of RA province and up to Wainibuka.

The vehicle is used to transfer the patients to Lautoka and CWM hospital for the complex cases.

In May 2009 the vehicle engine was replaced and not much reliance could be placed on the vehicle as it breakdowns occasionally.

The vehicle has been boarded and is parked at the hospital compound.

Newly donated by Japan Government in February 2008.
Only one in good condition at the moment and it caters for whole of Savusavu, Natewa, Saqani, Rabi, Kioa and Buca Bay areas and also referral patients from Taveuni.

According to the transport officer (Mere), registration changes to GN 224 but vehicle really old and not working.

Vehicle was transferred from Virus Lab and Ministry of Health, Women and Social Welfare Section 19: Page 111 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Station Vehicle No.
Condition of Vehicle Sigatoka Hospital CWM GN560 GL803 GN 218 GM 389 GL842 GM005 GN 258 Lautoka Hospital GM961 Labasa Hospital Nausori Hospital Rotuma Nadi Tavua Ba Mission Hospital Taveuni Northern Services Health Nabouwalu Vunidawa Navua GL066 GM963 GM205 GN267 GK171 GN647 GN510 GL724 GN219 GL272 GK681 GN594 GK634 GN547 GN548 GM776 GL067 GL069 GN084 GM564 GL068 GN539 GM962 GM091 it’s more than 10 years old.
A minivan and used to transfer patient, only from Savusavu to Labasa as vehicle really old and uses lot of fuel and can only run in tar sealed road.

The vehicle has been boarded and is parked at the hospital compound.

The hospital has been using a Land cruiser which was for their internal hospital usage to transfer patients to CWM or Lautoka as there are no other options available.

Vehicle almost 20 years old.

Cannot be used for carrying patients for long distance and only used for very short runs.
Consumes a lot of fuels.

The vehicle has been boarded and is parked at the hospital compound.

Only ambulance working but no oxygen or monitor machine.

About 17 years old.

Used to transfer patients from A&E to the Wards only.

About 5 years old.

Donated by Japan Government.

However, vehicle is under repair at the moment at Marine Motors – about 2 weeks now.

Gear box needs replacement.

Uses a lot of fuel.


At the moment there is no ambulance services provided by CWM and it is been outsourced to St Johns Association.

The vehicle is in use.

It needs replacement and gets breakdown almost every week.

Makes trip almost everyday to CWM and there is no stand by Ambulance to cover the area in worse off scenario.

The vehicle has been boarded and is parked at the hospital compound.

In working condition but occasionally breakdowns.


Covers the whole Labasa area and sometimes as far as Savusavu.

Above 6 years old.

The vehicle has been boarded and is parked at the hospital compound.

In working condition.

Nissan van.

However, vehicle almost 10 years old and can only run on tar sealed road and short distance.

The vehicle has been boarded and is parked at the hospital compound.

The vehicle was donated by the Japanese Government.

Is in good running condition.

Fully Equipped.


The vehicle was donated by the Japanese Government.

Is in good running condition.

Fully Equipped.

Changed from ambulance to passenger carrying vehicle.

The vehicle was donated by the Bula Festival Committee.

It is fully equipped.

The vehicle is in good running condition.

However it is not sufficient to cater the population and difficulties are faced by the Hospital.

The vehicle has been boarded and is parked at the hospital compound.


The vehicle was donated by the Korean Government.

Is in good running condition.

Portable equipments are used from the wards.

The vehicle has been boarded and is parked at the hospital compound.

The vehicle was donated by the JICA.

Is in good running condition.

Portable equipments are used from the wards.

The vehicle was donated by the JICA.

Is in good running condition.

Portable equipments are used from the wards.


This is the only ambulance in Taveuni.

Been in used since 2001.

The vehicle is in good working condition.

The vehicle has been boarded and is parked at Roqomate House.

The vehicle has been boarded and is parked at Roqomate House.

The vehicle has been boarded and is parked at Roqomate House.

The vehicle was involved in an accident in August last year at Savusavu.

The vehicle has been boarded and is parked at Roqomate House.


In working condition.

Transferred to Nabouwalu Hospital in 2007.

Not fully equipped.

Transferred from CWM.

Old and unreliable for long trips.

Not fully equipped.

Transferred from Nausori Hospital.

Old and unreliable for long trips.

Not fully Ministry of Health, Women and Social Welfare Section 19: Page 112 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Station Vehicle No.
Condition of Vehicle equipped.
Appendix 19.14: Comparison of the Number of Ambulances to the Area Population Station CWM Lautoka Nausori Rotuma Nadi Tavua Savusavu Labasa Nabouwalu Rakiraki Sigatoka BA Navua` Vunidawa Taveuni Korovou No of Ambulance in Good or in Working Condition 2 1 1 1 1 1 2 2 1 1 1 2 1 1 1 1 Population of the Area117 193,666 52,220 47,604 2,002 42,284 7,968 7,034 27,949 592 29,464 57,972 18,526 26,521 16,197 15,231 19,591 Appendix 19.15: Recipients Having Same Bank Account Number Case 1 Recipient Reference Number Peniasi Naitukunivalu 101-100634 104-105069 Paula Naitukunivalu 101-100634 Peni Talala Bank Account Number 6354272 6354272 CNB CNB Voucher Mode Amount $ 60.00 60.00 82.00 Comments Peniasi Naitukunivalu does not exist in the e-welfare system however the reference number 101-100634 belongs to Peni Talala who also receives $82- 00 via voucher book.
Account number belongs to Paula and therefore he is deemed to be paid twice.

Department’s Comment’s is an Naitukunivalu incorrect entry: This Peniasi is registered under 104-100634 the CNB account no.

with 6354272.

Paula’s case [104- 105069] is now on hold for further review as well as Peni Talala’s.
117 Source: The Fiji Island Bureau of Statistics Ministry of Health, Women and Social Welfare Section 19: Page 113 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Case Recipient 2 Josese Natoqi Joseva Lalaisu Reference Number 403-106120 403-106759 Bank Account Number ANZ ANZ 9384500 9384500 Amount $ 240.00 120.00 3 Shiu Shankar Arun Lata Asha Kiran 301-101967 301-103169 403-105705 CNB CNB ANZ 1998121 1998121 9324685 75.00 75.00 60.00 4 Virisila Lewagau Virisita Rabeca 501-100348 501-100393 ANZ ANZ 07722009 07722009 60.00 64.00 Comments Audit noted that the Account number 9384500 belongs to Josese Natoqi.
He has been receiving both their allowance for July and Aug. Joseva was paid for the two months (july & Aug) allowance in September.

However, no deduction was made from Natoqi.

Department’s Comment’s Wrong entries: Josefa Natoqi [ref: 403-106120] has the ANZ A/C 9384500 at $60.00 per [403- month with J Lalaisu 106759] A./C ANZ 9353322. has Audit noted that ref number 301-101967 belongs to Shiu Shankar whose file has been the bank closed.
However, to account number belongs Arun Lata, who receives double allowance.

Department’s Comment’s per month] Currently Shiu Shankar is receiving allowance at Sigatoka [$60.00 vide reference 501-105128.

Arun Lata receives her allowance through CNB 9324685 which is closed last year.

Asha Kiran has an ANZ A/C no.

9324685 at $60.00 per month.

Audit noted that the Account number 07722009 belongs to Virisita Rabeca.
The name Virisila Lewagau is bogus and reference number 501-100348 belongs to a different recipient.

Virisita Rabeca is being paid twice.

Department’s Comment’s There are no records of Virista Rabeca.

Virisila Lewagua [501- 101151] is being paid through voucher for $64.00 and not ANZ.
[PO Lautoka] 5 Sarda Devi 502-102266 ANZ 0931562 60.00 Audit noted that Sarda Wati Ministry of Health, Women and Social Welfare Section 19: Page 114 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Case Recipient Sarda Wati Reference Number 502-102266 Bank Account Number ANZ 0931562 Amount $ 60.00 6 Saimone Samunavanua Samisoni Delaimati 101-100704 CNB 5710776 204.00 101-100704 CNB 5710776 204.00 7 Santi Devi Shanti Devi 401-106833 401-106833 ANZ ANZ 03334677 03334677 60.00 60.00 Comments the and Sarda Devi is the same person with reference number 502-102266.
She has double receiving been payments till since December 08.

June Department’s Comment’s Sarda Devi aka Sarda Wati.

This is one person and there is no double payment.

to Saimone’s Audit noted the name that Samisoni Delaimati is bogus and does not exist in the e- welfare system.

Payment all goes a/c, 5710776.

Audit also checked that the $204 paid in the month of Oct should be only $136.

He receives a monthly payment of $68 and was missed out in thus October September, payout should be two for three.
He months only not receives till December and no recovery was made from him.

allowance Department’s Comment’s is paid Saimoni Delaimati $74.00.

Samisoni Samunavanua is unknown and we’re not sure where Audit picked up the name.

Audit noted that Santi Devi and Shanti Devi is the same person with reference number 401- been 106833. receiving double payment from the month of October to December.
She has 8 Gyatri Devi Gyatri Devi 401-106509 401-107184 ANZ ANZ 09378198 09378198 60.00 60.00 Ministry of Health, Women and Social Welfare Department’s Comment’s Shanti Devi aka Santi Devi is the same one person with reference number and the same bank account.

There is no double payment.


Audit noted that the account number 09378198 belongs to Gyatri Devi ref number 401- Section 19: Page 115 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Case Recipient Reference Number Bank Account Number Amount $ Comments 106509.
Thus, she has been receiving double payments for the months of Aug and Sept. Department’s Comment’s has Two different persons: Gyatri Devi f/n Jamuna Prasad [401- 106509] A/C 09378198 while Gyatri Devi f/n [401-107184] Deo Narayan receives allowance at the Post Office [voucher book].
ANZ Appendix 19.16: Real and Bogus Name with Same Bank Account Number BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Tom Dunn 101-100920 CNB 6267628 60.00 Bogus Recipient Thomas Isaac Dunn 101-100920 CNB 6267628 60.00 Department’s Comment’s Only the names are different due to the use of existing bank account by Mr Dunn which at the time of creation did not require birth certificate.

Every other detail is consistent.


BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Laila Buksh 501-100439 ANZ 9229271 60.00 Bogus Recipient Laili Buksh 501-100449 ANZ 9229271 60.00 Department’s Comment’s Correct name is Laili Buksh and her reference number is 501-100439.

The above noted reference number of 501-100449 may be a typing error of the auditors.

Only one payment is done monthly to the account.
BIO Data Name Reference Number Bank Account Number Amount Per Month BIO Data Name Reference Number Bank Account Number Real Recipient Lanieta Maria Rosa SE ANZ 08141488 60.00 Real Recipient Arun Lata 301-103169 CNB 1998121 Bogus Recipient Lavenia Maria SE ANZ 08141488 74.00 Bogus Recipient Arun Lata 301-101967 CNB 1998121 Ministry of Health, Women and Social Welfare Section 19: Page 116 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ BIO Data Amount Per Month Real Recipient 75.00 Bogus Recipient 75.00 Department’s Comment’s Arun Lata 301-103169 is now closed while reference no 301-101967 belongs to one Shiu Shankar f/n Bechu [now closed and transferred to Sigatoka] BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Adrea Namalo 101-105318 CNB 5577674 100.00 Bogus Recipient Vilomena Senivuto 101-105318 CNB 5577674 100.00 Department’s Comment’s Adrea Namalo’s reference number is 101-105318 and Vilomena Senivuto’s reference number is 101-107141.
Adrea banks with ANZ and receives $100.00.

Vilomena banks with CNB and receives $60.00 monthly.

BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Seini Waqamaitoga 101-107081 CNB 3866034 60.00 Bogus Recipient Semi Waqanitoga 101-107081 CNB 3866034 60.00 Department’s Comment’s Only the names are different due to the use of existing bank account by Ms Waqanitoga which at the time of creation did not require birth certificate.

Every other detail is consistent.


BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Saimone Delaimati 101-100704 CNB 5710776 68.00 Bogus Recipient Samisoni Samunavanua 101-100704 CNB 5710776 68.00 Department’s Comment’s Mr Delaimati receives $74.00 monthly and Samisoni Samunavanua is not known to the Department.
BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Mereleki Saku 403-106382 ANZ 9324743 60.00 Bogus Recipient Mereleki Vutisa 403-106382 ANZ 9324743 60.00 Department’s Comment’s Only the names are different due to the use of existing bank account by Mr Samunavanua which at the time of creation did not require birth certificate.

Every other detail is consistent.


Ministry of Health, Women and Social Welfare Section 19: Page 117 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Virisila Lewagau 501-100347 ANZ 07722009 60.00 Bogus Recipient Virisita Rabeca 501-100348 ANZ 07722009 60.00 Department’s Comment’s Virisila Lewagua [501-101151] receives her allowance of $64.00 per month through PO Lautoka.
There are no existing records on Virisita Rabeca.

BIO Data Name Reference Number Bank Account Number Amount Per Month Real Recipient Sarda Devi 503-103195 ANZ 09391562 60.00 Bogus Recipient Sarda Wati 503-103198 ANZ 09391562 60.00 Department’s Comment’s Sarda Devi aka Sarda Wati is the same person.

Her reference number is 502-102266.


Appendix 19.17: Recipients with Same Reference Number BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Aisa Bibi 401-103367 ANZ 09248240 60.00 Department’s Comment’s Recipient 2 Atti Amma 401-103367 ANZ 09227626 60.00 Aisa Bibi [401-103367] and Atti Amma [401-103680] are two different people with separate account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Emi Naio 401-104694 ANZ 09376112 70.00 Department’s Comment’s Recipient 2 Emosi Nasova 401-104694 ANZ 09405351 60.00 Emi Naio [401-104694] and Emosi Nasova [[401-104550] are two different people with separate account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Zaura Bi 401-106637 ANZ 09375028 60.00 Recipient 2 Zohra Bi F/N Shiek 401-106637 ANZ 09253544 60.00 Ministry of Health, Women and Social Welfare Section 19: Page 118 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Department’s Comment’s Zaura Bi [401-103952] and Zohra Bi f/n Shiek [401-106637] are two different people with separate account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Santi Devi 401-106833 ANZ 03334677 60.00 Department’s Comment’s Recipient 2 Shanti Devi 401-106833 ANZ 03334677 60.00 Santi Devi aka Shanti Devi.

Reference number, account number and amount per month are the same.

Payment is done only once for the person.


BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Kanta M Naicker 401-107832 ANZ 07033198 69.00 Recipient 2 Vijendra Prasad 401-107832 ANZ 09354246 75.00 Department’s Comment’s Kanta M Naicker [401-107832] and Vijendra Prasad [401-107382] are two different people with separate reference numbers.

The auditor’s wrongly recorded the reference numbers which look very similar.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Urmila Devi 401-107869 ANZ 09219321 60.00 Department’s Comment’s Recipient 2 Urmila Wati 401-107869 ANZ 09306676 60.00 Urmila Devi [401-106893] and Urmila Wati [401-107869] are two different people with separate reference numbers and account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Kusum Kumari 402-105240 ANZ 9242612 68.00 Recipient 2 Kusum Lata 402-105240 ANZ 9296420 68.00 Department’s Comment’s Kusum Kumari [402-105240] and Kusum Lata [403-105660] are two different recipients with different reference numbers and account numbers.
BIO Data Name Reference Number Bank Account Number Recipient 1 Litia Lewakadala 402-105358 ANZ 09225709 Recipient 2 Litia Socake 402-105358 ANZ 09215509 Ministry of Health, Women and Social Welfare Section 19: Page 119 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ BIO Data Amount Per Month Recipient 1 60.00 Recipient 2 60.00 Department’s Comment’s Litia Lewakadala [402-105358] and Litia Sorocake [402-105360] are two different recipients with different reference numbers and account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Kinisimere Ranadi 403-105957 ANZ 09324845 60.00 Recipient 2 Veniana Vua 403-105957 ANZ 09528805 60.00 Department’s Comment’s Kinisimere Ranadi [403-105951] and Veniana Vua [403-105957] are two different recipients with different reference numbers and account numbers.

The auditor’s may have wrongly recorded the reference numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Faiyaz Mohd 501-104499 ANZ 09620742 60.00 Recipient 2 Nazmin Nisha 501-104499 ANZ 09253747 65.00 Department’s Comment’s Nazmin Nisha [501-104499] is the wife of Faiyaz Mohammed [501-104499] Allowance is given under Faiyaz’s name but banked under Nazmin Nisha’s account with ANZ 09253747.

There is no double payment.


BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Losana Lewatu 503-101468 ANZ 09376430 60.00 Recipient 2 Losana Tuituidaku 503-101468 ANZ 09138995 60.00 Department’s Comment’s Losana Lewatu [502-102234] of Nadi and Losana Tuituidaku [503-101468] of Sigatoka are two different recipients with different reference numbers and account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Taione Kotoyawa 503-101504 ANZ 09376931 60.00 Recipient 2 Taiyone Kotoyawa 503-101504 ANZ 09376951 60.00 Department’s Comment’s The correct spelling is Taione Kotoyawa [503-101504] and bank a/c 9376951 NOT 9376931.

This may be a case of mis- recording by the auditors.
Ministry of Health, Women and Social Welfare Section 19: Page 120 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Merelesita Mataitini 503-101525 ANZ 09311542 60.00 Recipient 2 Mereseini Mataitini 503-101525 ANZ 09144830 60.00 Department’s Comment’s Merelesita Mataitini [501-104833] and Mereseini Mataitini [503-101525] are two different recipients with different reference numbers and account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Salote Vakayavu 101-107099 ANZ 09195885 60.00 Recipient 2 Grace Morell 101-107099 ANZ 09270911 74.00 Department’s Comment’s Wrong entries with two difference persons: Salote Vakayavu has 101-107099 and Grace Morell has 101-101739.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Josaia Kitau 402-105299 ANZ 08355183 60.00 Department’s Comment’s Recipient 2 Joseph Kalepo 402-105299 ANZ 09216375 60.00 Josaia Kitau [402-107645] and Joseph Kalepo [402-105299] are two different recipients with different reference numbers and account numbers.
BIO Data Name Reference Number Bank Account Number Amount Per Month Recipient 1 Marianne Premila 501-100207 ANZ 05623180 60.00 Recipient 2 Naseem Begum 501-100207 ANZ 05656819 90.00 Department’s Comment’s Marianne Premila [501-104660] of Sigatoka and Naseem Begum [502-102585] of Nadi are two different recipients with different reference numbers and account numbers.

Reference no.

501-100207 is under Johra Bibif/n Samsu Dean.
BIO Data Name Reference Number Bank Recipient 1 Kaliova Ravouvou 501-100450 ANZ Recipient 2 Makereta Loma 501-100450 ANZ Ministry of Health, Women and Social Welfare Section 19: Page 121 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ BIO Data Account Number Amount Per Month Recipient 1 07969502 60.00 Recipient 2 07963588 60.00 Department’s Comment’s Kaliova Ravouvou [501-104836] and Makereta Loma [503-103240] are two different recipients with different reference numbers and account numbers.
Reference 501-100450 belongs to Parbati f/n Nag Ratnam.

Appendix 19.18: Recipients Listed Twice in Bank Listings Recipients Reference Number Month Kelera Lewasalato 402-105324 402-105324 August September Amount Overpaid $ 60.00 60.00 Bank Account Number ANZ ANZ 8860672 8860672 Department’s Comment’s Error was not detected and recipient was paid 1 month extra.

Name will be deleted from June 2009 listing.


Laisa Bulakoso 401-104580 401-104580 August September 88.00 88.00 ANZ ANZ 9406489 9406489 ANZ ANZ 86.00 60.00 08088171 08255134 September September September 402-105417 402-106921 402-106960 Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.
Asena Lewaca Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Eliki Sigakeidra Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.
Names were re-activated for January, 2009 and anomaly corrected.

Leone Senuleba Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Manjula Devi Department’s Comment’s Error was detected before submitting the list for October, 2008.
Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Sher Singh Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.
Kala Wati Department’s Comment’s The error was detected before submitting the list for Oct., 2008.

Her name was included in the Jan., 2009 listing but with an invalid a/c number.

The case was reviewed and terminated in Jan., 2009.

A/C number was submitted from the bank [blue form].
402-105201 402-105074 402-104988 September September September 09215361 09227911 09258985 09254060 86.00 60.00 60.00 60.00 ANZ ANZ ANZ ANZ Ministry of Health, Women and Social Welfare Section 19: Page 122 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Amount Overpaid $ 60.00 Recipients Reference Number Month Bank Account Number ANZ ANZ ANZ ANZ ANZ ANZ September 60.00 60.00 63.00 60.00 180.00 09352704 09325373 09308562 09325260 09353322 402-105150 403-106281 401-108727 401-108301 403-106759 401-107924 September September September September September Josefa Senameca Department’s Comment’s Error was detected before submitting the list for October, 2008.
Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Bulou Senimeli Department’s Comment’s Error was not detected and recipient was paid extra by one month.

Name will be deleted from the June, 2009 listing.

Ram Sundar Department’s Comment’s Error was detected before submitting the list for October, 2008.
Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Subramani Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.
Joseva Lalaisu Department’s Comment’s Error was detected before submitting the Oct., 2008 listing.

Recipient was paid until Oct., 2998 and name was included in the Nov., 2008 listing.

Roshni Devi Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.
Chandra Wati Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Ranjina Devi Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.
Names were re-activated for January, 2009 and anomaly corrected.

Timaleti Kuruilagi Department’s Comment’s Error was detected before submitting the list for October, 2008.

Name was not included in the Oct – Dec, 2008 listing because double payment had covered up to December.

Names were re-activated for January, 2009 and anomaly corrected.

Veniana Namomo Department’s Comment’s The name appears only once in every month’s listing.
Vasiti Saqalu Department’s Comment’s The error was detected before submitting the Oct., 2008 listing.

Recipient was overpaid until February, 2009.

Case was reviewed and terminated in January, 2009.

Vasiti Salavuki ANZ Department’s Comment’s Error was not detected to date.

Recipient was overpaid until Dec., 2009.

The name is removed from the 2009 June listing.

Recipient was called into the office and the overpayment and resulting action was explained to her.
September September September 402-105316 401-103464 401-107261 401-107756 403-106395 401-107064 November November 09418677 09379555 09375721 09438194 09236584 8152762 7860844 October 60.00 62.00 62.00 60.00 60.00 60.00 ANZ ANZ ANZ ANZ ANZ Ministry of Health, Women and Social Welfare Section 19: Page 123 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI ISLANDS – SEPTEMBER 2009 ________________ Amount Overpaid $ 60.00 Recipients Reference Number Month Bank Account Number ANZ 60.00 9246785 November November 402-105404 Merelita Bereta Department’s Comment’s Error was not detected until now and the recipient has been paid until Dec., 2009.
The name has been removed from the June – Dec 2009 listing.

Kelera Raliku 403-106439 Department’s Comment’s Error was not detected until now and the recipient has been paid until Dec., 2009.

The name has been removed from the June – Dec 2009 listing.

Suliano Bogileka 401-106693 Department’s Comment’s Error was not detected until now and the recipient has been paid until Dec., 2009.

The name has been removed from the June – Dec 2009 listing.
502-102296 Santa Kumari 502-103141 Anita Devi Department’s Comment’s Correct Entries on Santa Kumari and Anita Devi.

Both on the Nadi listing.

December December 9385876 09376882 60.00 62.00 ANZ ANZ December 9377230 9384522 75.00 ANZ ANZ Ministry of Health, Women and Social Welfare Section 19: Page 124