Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697783394044.pdf (Fiji)
STANDING COMMITTEE ON PUBLIC ACCOUNTS Review of the Audit Report on Provincial Councils, Volume 2 PARLIAMENT OF THE REPUBLIC OF FIJI Parliamentary Paper No.
246 of 2020 September, 2020 Published and printed by the Department of Legislature, Parliament House, Government Buildings, Suva i TABLE OF CONTENT CHAIRPERSON‟S FOREWORD ........................................................................................................................ 2 COMMITTEE MEMBERS ................................................................................................................................... 6 INTRODUCTION ................................................................................................................................................ 7 DETAILS OF THE COMMITTEE FINDINGS .................................................................................................... 10 FINANCIAL REPORTING .............................................................................................................................. 10 INTERNAL CONTROLS ................................................................................................................................ 13 AUDIT COMMON FINDINGS ........................................................................................................................ 14 OTHER SIGNIFICANT MATTERS ................................................................................................................ 16 SUSTAINABLE DEVELOPMENT GOALS ........................................................................................................ 18 GENDER ANALYSIS ........................................................................................................................................ 18 COMMITTEE RECOMMENDATIONS .............................................................................................................. 19 CONCLUSION .................................................................................................................................................. 21 APPENDICES .................................................................................................................................................. 23 1 CHAIRPERSON’S FOREWORD At the outset, this Committee report provides the details and the results of the audit conducted by the Office of the Auditor General on Provincial Councils Volume 2 for the period 2000 – 2007.
It is important to note that this is the second of the three (3) volumes of reports for Provincial Councils Reports tabled by the Auditor General in Parliament.

The Provincial Councils (“Councils”) are established under Section 7 of the iTaukei Affairs Act 1944 and Section 3 of the iTaukei Affairs (Provincial Council) Regulation 1996.

Each Provincial Council is a body corporate.


The functions of the Councils are:  To formulate and implement policies for promoting the health, peace, order, welfare and good government of iTaukei residing in the Province;  To formulate and implement policies for promoting the economic, cultural and social developments of the Province; and  To carry out such other duties and functions, which the Minister for iTaukei Affairs or the Board may see fit to delegate to the Council.
It is important to note that the operations of the Councils are funded by Government Subventions disbursed through the Ministry of iTaukei Affairs and the iTaukei Affairs Board.

Other operational costs not covered by Government Subvention are funded through the collection, on communal basis, of provincial rates.

The Auditor -General has the mandate under the iTaukei Affairs (Provincial Councils) Regulations 1996 to audit the Provincial Councils.
Sections 33(2) and 33(3) state that “the accounts of every Council shall be audited by the Auditor-General” and that financial statements are to be submitted to the Auditor-General by 1 April of each year.

This report contains the audited financial statements for nine (9) Provincial Councils for the years ranging from 2000 – 2007 financial years, namely: 1.

Ba (2001 – 2007); 2.

Bua (2003 – 2007); 3.

Namosi (2001 – 2007); 4.

Ra (2000 - 2007); 5.

Rewa (2006 – 2007); 6.

Serua (2006 – 2007); 7.


Cakaudrove (2002 – 2007) 8.

Kadavu (2002 – 2007); and 9.

Nadroga/Navosa Provincial Councils (2002 – 2007) As earlier stated in the Committee Volume 1 report, financial accountability by the Provincial Councils in terms of financial reporting and making available to the members of the Provinces and public audited financial statements is seriously lacking.
The financial audits of all 14 Provincial Councils were substantially behind by 10 years or less as financial statements were not submitted annually to the Auditor-General.

The issue of non- 2 submission or late submission of annual financial statements to the Office of the Auditor General for audit has been a recurring issue over the years since our Independence.
The Committee noted that between 2015 and 31 October 2019, the Office of the Auditor General received from the iTaukei Affairs Board, 148 draft financial statements from Provincial Councils for audit.

Except Lau Provincial Council, all Provincial Councils have submitted for audit financial statements up to the year ended 31 December 2012.
The audit of the Provincial Councils have been extensively delayed and is primarily due to the non-submission of the financial statements annually to the Office of the Auditor General thus resulting in the backlog of 14 years of preparation, timely preparation and quality submission of the annual accounts.
It was noted that out of the 148 draft financial statements received by the Auditor-General, the audits of 79 financial statements for the 14 Provincial Councils have been completed, audits of 23 financial statements are currently being finalized, audits of 20 financial statements are in progress and 26 financial statements will be audited from April this year.
From the 79 financial statements that have been audited, the result of the audits for 30 financial statements has already been reported in Volume 1.

Also noted that the overall quality of financial reporting by the Council have been assessed ineffective and require improvements:  Therefore, the OAG issued modified (Disclaimer of Opinion) audit opinions on all 49 financial statements that were audited.
 The OAG also reported to the iTaukei Affairs Board 123 significant matters concerning material accounting issues and deficiencies in internal controls.

The issues that were identified and highlighted require the immediate attention and prompt actions by the iTaukei Affairs Board, Provincial Councils and the Ministry of iTaukei Affairs to improve financial accountability by the Provincial Councils.
The Committee noted some deficiencies which were recurring over the years which requires the immediate attention and prompt actions by the iTaukei Affairs Board, Provincial Councils and the Ministry of iTaukei Affairs to improve financial accountability by the Provincial Councils.

Some of the major audit findings identified were the quality and timeliness of financial reporting by Provincial Councils, internal control issues, other significant issues identified from the audits.
In this regard, the Committee strongly recommends that immediate actions needs to be drawn towards the strengthening of the financial reporting and that includes timely submission of the Provincial Councils financial statements for auditing, compliance with accounting standards and strengthen governance and internal controls of these nine (9) Councils.
The Committee understands the challenges faced by the Councils and therefore recommends that, 1) The current Management of the ITaukei Affairs Board and the respective Provincial Councils Executives should urgently address all the issues that give rise to the audit qualifications, internal control deficiencies and other significant issues discussed and are highlighted on this report.

2) Improving the quality and timeliness of financial statements should be given the utmost priority.
Quality of financial reporting can be improved by involving suitably qualified Accountants in the 3 Provincial Councils that are capable of preparing and presenting draft financial statements on time and in accordance with the requirements of the applicable financial reporting framework.
3) The iTaukei Affairs Board should consider the establishment of a robust and capable audit, risk and improvement committee to specifically look at the quality and timeliness of financial reporting by the Provincial Councils and formulate action plans to resolve governance and internal control deficiencies and significant audit findings reported by the Auditor-General.
4) The iTaukei Affairs Board should consider reviewing and strengthening the capability of its internal audit function to assist in reviewing the systems and processes for the Provincial Councils and develop recommendations for improvements to those in-charged with governance.

5) The iTaukei Affairs Board should demand the production of Annual Reports from the respective Provincial Councils highlighting all the aspects of its operation and the progress of its mandated role.
6) The iTaukei Affairs Board should conduct special performance audit on the operations of the PCs with its investment arm.

7) The iTaukei Affairs Board should consider reviewing Annual Council Levy, “Soli ni Yasana”.

8) The iTaukei Affairs Board should consider SDG 1, SDG 2, SDG 3, SDG 6, SDG 11 and SDG 16 to be inculcated in the respective Provincial Councils strategic and operational plan.
9) The Itaukei Affairs Board need to disseminate the Committee findings and recommendations to the respective Provincial Councils for further consideration and implementation.

The Public Accounts Committee strongly encourages the nine (9) Provincial Councils to implement the recommendations as a matter of priority.
Overall, I would like to thank the Chief Executive Officer for iTaukei Affairs Board (TAB) on its efforts in trying to improve its systems and processes with the Councils to address those audit issues.

Also commend the work of the Office of the Auditor General in trying to complete its audit on all backlogs and the technical support provided in terms of clarifications on those audit issues that were reported.
I also wish to extend my appreciation to all the Honourable Members of the Committee for their valuable contribution in the successful compilation of this bipartisan report, namely Hon.

Joseph Nand (Deputy Chairperson, Hon.

Vijendra Prakash, Hon.

Aseri Radrodro and Hon.

Ro Teimumu Kepa.

Additionally, pursuant to Standing Order 115 (5) Hon.

Mikaele Leawere and Hon.

Adi Litia Qionibaravi who stood in as alternate Member to Hon.

Aseri Radrodro and Hon.

Ratu Naiqama Lalabalavu.


On behalf of the Committee, I also extend my appreciation to the Secretariat Staff for their timely support in the preparation of this report.

4 With those few words, I now commend this report to the Parliament.

Hon.

Alvick Avhikrit Maharaj Chairperson 5 COMMITTEE MEMBERS The substantive members of the current Standing Committee on Public Accounts are as follow: Hon.

Alvick Avikirit Maharaj (Chairperson) Hon.

Joseph Nitya Nand (Deputy Chairperson) Hon.


Aseri Masivou Radrodro (Opposition Member) Hon.

Ro Teimumu Kepa (Opposition Member) Hon Vijendra Prakash (Government Member) 6 INTRODUCTION The Audit Report on Provincial Councils Volume 2 was tabled in Parliament during the November 2019 sitting and referred to the Standing Committee on Public Accounts, for its scrutiny.
Standing Order (SO) 109 (2) (d) allows Standing Committee on Public Accounts to examine the accounts of the Government of the Republic of Fiji in respect of each financial year and reports of the Auditor-General, and for any other matter relating to the expenditures of the Government of the Republic of Fiji or any related body or activity (whether directly or indirectly) that the committee sees fit to review.
Standing Order 110 (1) (c) authorises the Standing Committee to scrutinise the government departments with responsibility within the committee's subject area, including by investigating, inquiring into, and making recommendations relating to any aspect of such a department's administration, legislation or proposed legislative program, budget, rationalisation, restructuring, functioning, organisation, structure and policy formulation.” Background This PAC Report looks at the Report of the Auditor General – Provincial Councils, Volume 2, Parliamentary Paper 146 of 2019.
The Provincial Councils “Councils” are established under Section 7 of the iTaukei Affairs Act 1944 and Section 3 of the iTaukei Affairs (Provincial Council) Regulation 1996.

Each Provincial Council is a corporate body.
The functions of the Councils are:  To formulate and implement policies for promoting the health, peace and order, welfare and good government of iTaukei residing in the Province;  To formulate and implement policies for promoting the economic, cultural and social developments of the province; and  To carry out such other duties and functions, which the Minister for iTaukei Affairs or the Board may see fit to delegate to the Council The operations of the Councils are funded by Government Subventions disbursed through the Ministry of iTaukei Affairs and the iTaukei Affairs Board.
Other operational costs not covered by Government Subvention are funded through the collection, on communal basis, of provincial rates.

The Auditor General has the mandate under the iTaukei Affairs (Provincial Councils) Regulations 1996 to audit the Provincial Councils.

In section 33 (2) (3) states that “the accounts of every Council shall be audited by the Auditor General” and that financial statements are to be submitted to the Auditor General by 1 April each year.
The following legislation establishes the financial accountability frameworks and legislative time frames to complete financial statements audits for the Provincial Councils: 1. iTaukei Affairs Act 1944 2. iTaukei Affairs (Provincial Councils) Regulations 1996 3.

Audit Act 1969 The Auditor General has issued 49 Modified Audit Opinions on all the financial statements of the nine (9) Provincial Councils that were audited and reported in this report.
The modified audit opinions were all Disclaimer of Opinions.

The nine provincial councils were issued with a Disclaimer of Opinions due to the 7 insufficient audit evidences to substantiate the key figures of the financial statements.

The absence of records created significant limitations on the scope of the audits and restricted the performance of necessary audit procedures.
Accordingly, the Office of the Auditor General has also highlighted other significant matters which had affected the operations of the Provincial Councils.

These are:  Poor Cash Management – the audit has indicated that poor cash management for Provincial Councils is a high risk area that is susceptible to fraud and mismanagement.

 Improper Journals and Reconciliations – journals without appropriate controls and oversight increases the risk of fraud and errors.
The audit has highlighted that the Provincial Councils need to improve the process in preparing and reviewing its accounts in a timely manner and to be reviewed independently.

 Unauthorized Purchases and Payments – records such as payment vouchers and supporting documentations have been misplaced and some payments have been committed over the years which could be substantiated during the audit.
Therefore, purchases and payments for Provincial Councils are crucial to minimizing the risks of unauthorized purchases and fraud.

 Weak Payroll System – weaknesses in payroll controls can result in incorrect payments to employees due to either errors or fraud.

Since employee/wages and related costs represents the largest portion of the total expenditures for Provincial Councils, effective payroll controls is crucial.
Due to COVID 19 restrictions, the Committee conducted its consultation through a letter requested the Chief Executive Officer Itaukei Affairs Board (ITAB), Mr. Meleti Bainimarama to provide a written response on the audit issues that were highlighted in the Provincial Councils Volume 2 Audit report.
Prior to the COVID 19 lockdown, the Committee have already consulted the Bua Provincial Council, however the plans to carry out the consultations for the other eight (8) Provincial Councils was unsuccessful due to restrictions that are still in place.

The Members of the Public Accounts Committee raised questions on the deficiencies identified by the Auditor General for 2000 - 2007 financial years.

These resulted in the overall deficiency in the financial and internal control of the provincial councils.
The Committee resolved that the nine (9) Provincial Councils should address all issues that resulted to the audit qualifications; also address all weaknesses in internal controls and other significant issues.

COMMITTEE MEMBERSHIP The Standing Committee on Public Accounts comprises of the following Members of Parliament: Hon.

Alvick Avhikrit Maharaj, Chairperson MP Hon.

Hon.

Joseph Nitya Nand, Deputy Chairperson MP Hon.

Hon.

Vijendra Prakash, MP Hon.

Aseri Masivou Radrodro, MP Hon.


Ro Teimumu Kepa, MP1 1 Committee Membership Joining date: 6 May 2020 8 Pursuant to Standing Order 115 (5), the Hon.

Mikaele Leawere and Hon.

Adi Litia Qionibaravi stood in as an alternative Members for Hon.

Aseri Masivou Radrodro and Hon.

Ratu Naiqama Lalabalavu.

BUA PROVINCIAL COUNCIL/TAUKEI AFFAIRS BOARD OFFICIALS: 1.

Mr Waisake Tuisese, Roko Tui Bua 2.

Mr Vinaya Namudu, Senior Assistant Roko Tui 3.


Ms Sereana Matakibau, Director Finance – iTaukei Affairs Board HQ 4.

Mr Ifran Ali, Provincial Treasurer - Bua PC 5.

Ms Mere Tikonatabua, Assistant Provincial Council Treasurer - Bua PC Resource Persons The Committee together with an official from the Office of the Auditor General were in-attendance at the Committee hearing held in the Bua Provincial Council Board Room on Thursday 23 January, 2020.
The officials that assisted the Committee in its inquiry were: OFFICE OF THE AUDITOR GENERAL OFFICIAL: 1.

Ms. Makereta Dyer, Acting Audit Manager 9 DETAILS OF THE COMMITTEE FINDINGS The Office of the Auditor General has the mandate to audit the 14 Provincial Councils as stipulated under Section 33 of the iTaukei Affairs (Provincial Councils) Regulations 1996.
The Committee noted that out of the 148 draft financial statements received by the Auditor-General, the audits of 79 financial statements for the 14 Provincial Councils have been completed, audits of 23 financial statements are currently being finalized, audits of 20 financial statements are in progress and 26 financial statements will be audited from April this year.

The audit report includes the audit results of the 49 financial statements for the nine (9) Provincial Councils.
The Committee noted in the audit report that 49 modified audit opinions were issued to all the financial statements of the nine (9) Provincial Councils that were audited.

The questions that were sent to these nine (9) Provincial Councils through the Ministry of Itaukei Affairs/Itaukei Affairs Board (ITAB) on audit issues that are identified as matters of concern has been attached as Appendix 1.
Tabulated below are the Audit Results of the 49 financial statements for the Nine (9) Provincial Councils with Audit Opinions Provincial Council Ba Bua Namosi Ra Rewa Serua Cakaudrove Kadavu Nadroga/Navosa Year 2001 - 2007 2003 - 2007 2001 - 2007 2000 - 2007 2006 - 2007 2006 - 2007 2002 – 2007 2002 - 2007 2002 - 2007 1.0 FINANCIAL REPORTING Unmodified Opinion Modified Opinion Disclaimer of Opinion          The Auditors have assessed the financial reporting for these nine (9) Provincial Councils based on the following aspects:  quality of financial reporting  timeliness of financial reporting 1.1 Quality of financial reporting The following two indicators were used by the Auditors to assist them in assessing the quality of the Councils‟ financial statements:  modified and unmodified audit opinions; and 10  significant matters reported to management and those responsible for governance, in this case the iTaukei Affairs Board As shown in the Table below, the OAG assessed the quality of financial reporting by the type of audit opinion issued on the financial statements and the impact and number of significant issues reported to the management and those charged with the governance of the Provincial Councils: Rating Effective Ineffective Quality of Financial Reporting Unmodified opinions with minimal issues reported to the Provincial Council through the iTaukei Affairs Board Modified opinions with more than five significant issues reported to the Provincial Council through the iTaukei Affairs Board The Committee noted that the modified audit opinions that were issued on all 31 financial statements and the prevalence of the significant matters reported across the Provincial Councils indicated that the overall quality of financial reporting is ineffective and require substantial improvements.
1.2 Audit opinions The main outcome of the OAG audits was independent auditors‟ reports on the financial statements of the Provincial Councils that were produced and submitted to the Auditor-General by the iTaukei Affairs Board.

The OAG issued 49 modified audit opinions on all the financial statements of the nine (9) Provincial Councils that are reported in this report.
The modified audit opinions were all Disclaimer of Opinions as shown in the following Table: Key Reasons for Disclaimed Audit Opinions Provincial Council Year Limitation of Scope Non -Compliance with relevant Accounting Standards Significant Breakdown in internal controls Ba Bua Namosi Ra Rewa Serua Cakaudrove Kadavu 2001 - 2007 2003 - 2007 2001 - 2007 2000 - 2007 2006 - 2007 2006 - 2007 2002 – 2007 2002 - 2007 Nadroga/Navosa 2002 - 2007                            The Committee were informed that audit opinions were disclaimed due to the following major reasons: (i) Limitation of scope – the auditors were unable to obtain sufficient appropriate audit evidences to substantiate major components of the financial statements.
The absence of accounting and other records 11 created significant limitations on the scope of the audits and restricted the performing of necessary audit procedures.

The limitations were pervasive and material to understanding the financial information disclosed in the financial statements.
(ii) Also noted in the OAG Report on its Appendix A, is the percentage of unsubstantiated balances due to unavailability of accounting and related records, which also affected the ability to quantify the financial effects to adjust and correct the financial statements.
(iii) Statements of Cash Flow – the Committee also noted that the statement of cash flow were not prepared and presented as components of the financial statements submitted for audit, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
(iv) The Committee also noted that there were significant breakdowns in financial statement internal controls which affected the reliability of these financial figures of these Provincial Councils.

The Committee expresses its grave concerns on the delay in submissions of the audited financial accounts of these nine (9) Provincial Councils and very importantly the disclaimer of opinions issued by the Office of the Auditor General.
In summary, this is a picture of lack of accountability, transparency and lack of good corporate governance on the Provincial Councils in carrying out its duties and responsibilities to its Provincial Council members.

The written response from the Ministry of Itaukei Affairs/ITaukei Affairs Board to the Committee which provides clarification on the issues raised is attached as Appendix 2.
1.3 Significant Matters Reported The Audit Act 1969 requires that the Auditor-General to report on significant matters identified during the audit to those responsible for the governance of the Provincial Councils.

This includes the iTaukei Affairs Board and the Roko Tui.
The Committee noted that the audits were conducted together for several years‟ financial statements and issues identified from the audit as significant for the individual Provincial Councils for those years were rated medium to high risks and these were communicated to the iTaukei Affairs Board in one report or through the Management Letter.
The Committee was informed that issues that are classified as medium – high risks are control and compliance weaknesses of such fundamental significance or substantial importance to the Provincial Councils and it requires immediate attention by the iTaukei Affairs Board for priority and actions for resolutions.
The OAG reported to the Provincial Councils through the iTaukei Affairs Board 123 significant matters on the audits of the 49 financial statements for the nine Provincial Councils, as tabulated below: 12 Provincial Council Ba Bua Namosi Ra Rewa Serua Cakaudrove Kadavu Nadroga/Navosa Year 2001 - 2007 2003 - 2007 2001 - 2007 2000 - 2007 2006 - 2007 2006 - 2007 2002 – 2007 2002 - 2007 2002 - 2007 No.
of Significant Matters Reported 12 12 14 10 17 21 11 10 16 1.4 Timeliness of financial reporting To assess the timeliness of acceptable draft financial statements, the OAG always compared the date the draft financial statements were received for audit after allowing for at least 30 days before the legislative deadlines for the audit.
Rating Effective Ineffective Timeliness of Financial Reporting Assessment Acceptable draft financial statements received 1 April each year Acceptable draft financial statements received more than 30days after 1 April each year It was noted that all the nine Provincial Councils did not comply with the statutory requirements to submit to the Auditor-General financial statements for audit by 1 April each year.
The submissions of financial statements to the Auditor-General were more than 10 years behind the statutory deadlines.

It was also noted in some cases, multiples versions of the financial statements were presented for audit, which further delayed the audits for certain Councils.

The 2013 draft financial statements (refer to Section 1.4) which have yet to be submitted to the Auditor-General for audit, been already 5 years behind as at 31 October 2019.
The timeliness of financial reporting is ineffective due to the length of time it took the iTaukei Affairs Board and the Provincial Councils to prepare and present the financial statements and submit them to the Office of the Auditor-General for audit.

2.0 INTERNAL CONTROLS 2.1 Internal Controls Assessments Good internal controls provide reasonable assurance that an entity is achieving its objectives relating to operations and reporting and support the production of effective financial statements.
The OAG assessed the financial controls used by the Provincial Councils using the following five (5) key elements: 13 1.

Control Environment (CE) – actions, attitudes and values that influence daily operations 2.

Risk Assessment (RA) – processes for identifying, assessing and managing risk 3.

Monitoring Activities (MA) – oversight of internal controls for existence and effectiveness 4.

Control activities (CA) – policies, procedures, and actions taken to prevent or detect errors 5.
Information and Communication (IC)– systems to inform staff about control responsibilities It was noted when OAG identify that internal controls in any of these elements are missing or are not operating as intended, OAG refer to them as control deficiencies (audit finding).

If OAG identify that a control deficiency, either alone or in combination with other deficiencies, may lead to a material misstatement in the entity‟s financial statements, OAG refer to this as a significant audit finding.
If OAG identify a deficiency (audit finding) with any of these internal controls as part of their audits, OAG will report the finding to the entity‟s management.

A deficiency occurs when internal controls are unable to prevent, detect or correct errors in the financial statements or where controls are missing.

A significant deficiency is a deficiency that either or alone or in combination with multiple deficiencies may to lead to a material misstatement in the financial statements.
It requires immediate management action.

The OAG audit indicated that all five components were areas where significant deficiencies were identified.

In 2015, the iTaukei Affairs Board issued a Financial Manual to supplement the existing Accounting Manual.

However, it was noted that OAG is yet to determine whether the supplementary Finance Manual has assisted the Provincial Councils to operate reliably and to produce effective financial statements.
The following Table outlines the rating we have used to assess internal controls: Rating Effective Ineffective Internal Control Assessment No deficiencies identified in internal controls Significant deficiencies identified in internal controls It is important to note that the deficiencies detailed below were identified during audit and may have been subsequently resolved by the iTaukei Affairs Board and the Provincial Councils.
These have been included in this report as they impacted on the overall system of control of the Provincial Councils as at the dates of the financial statements.

3.0 AUDIT COMMON FINDINGS The Committee noted that the internal control deficiencies identified were communicated to the iTaukei Affairs Board through the OAG Management Letters.
Common internal control weaknesses relate to the following main areas: 1) Cash management 2) Journals and reconciliation 3) Purchases and payments 4) Payroll The audits that were conducted by the OAG found the following internal control weaknesses to be prevalent with the Provincial Councils: 3.1 Cash Management 14  Monthly bank reconciliations were either not prepared or if performed were untimely and inaccurate.
As a result, there were unreconciled variances between the Bank Reconciliation Statements and the General Ledger with neither balances reconciled to the confirmations provided by the banks.

 Receipts were not banked intact as deposits could not be traced to the bank statements.

This indicated that receipts may have been utilized for cash payments, however, could not be properly substantiated due to missing records.

 Daily or regular banking of receipts were not done.
 Accurate and timely cash flow analysis was not performed.

 Stale cheques were not appropriately dealt with.

 Cash records such as lodgement books, cheque books and cashbooks were not properly maintained resulting in the records not being able to be located for audit.

The various internal control weaknesses identified indicated that cash management for Provincial Councils is a high risk area that is susceptible to fraud and mismanagement.
3.2 Journals and Reconciliations Inadequate supporting documents for journals posted to the General Ledger.

  Reconciliations for other key account balances were not prepared.

Reconciliations were not reviewed or if reviewed, were not done independently and in a timely manner.

 Salary reconciliations were not performed.

Journals without appropriate controls and oversight increases the risk of error and fraud.
The Provincial Councils need to improve the process in preparing and reviewing account reconciliations by performing timely reconciliations that are independently reviewed.

3.3 Purchases and payments Purchases and payments processes were not complied with as follows:  Local Purchase Orders were not issued for purchases.

 Competitive quotations were not obtained.

 Payment vouchers and supporting documents were not stamped “PAID”.
 Payments were not always supported with proper and appropriate documentations.

Also noted in the audit report that records such as payment vouchers and supporting documentations have been misplaced, some payments made during the years could not be substantiated during the audit.

Improving internal controls for the purchases and payments functions for Provincial Councils are crucial to minimizing the risks of unauthorized purchases and fraud.
3.4 Payroll  Payments of wages were not supported with timesheets/timecards.

 Employee details were not updated in the Personnel Files such as Employment Agreements, salary rates and positions, and leave schedules.

 Personnel Files and Pay Run Reports were not provided for audit verification.

 Salary reconciliations were not performed.

15 Weaknesses in payroll controls could result in incorrect payments to employees due to either error or fraud.
As employee salaries/wages and related costs represents the largest portion of total expenditures for Provincial Councils, effective payroll controls is crucial.

4.0 OTHER SIGNIFICANT MATTERS The Audit Act 1969 requires, amongst other things, that the Auditor-General must report on other significant matters which the Auditor-General wishes to bring to the attention of Parliament.
Other significant matters highlighted in the audit report, include control weaknesses which could cause or is causing severe disruption to the process or on the ability of the Provincial Councils to achieve process objectives and comply with relevant legislations, which are in addition to those discussion already cover in previous sections of this report.
It is likely that these issues may have an impact on the operations of the Provincial Councils in future, if necessary action is not taken to address them.

It is important to note that the deficiencies detailed in this report were identified during the audit and may have been subsequently resolved by the iTaukei Affairs Board and the Provincial Councils.
These have been included in this report as they impacted on the overall system of control of the Provincial Councils as at the dates of the financial statements were audited.
Other significant matters identified during the audit were communicated to the iTaukei Affairs Board through Management Letters from the OAG and they relate to the following areas:  Submission of financial statements for audit – Significant delays in the submission of draft financial statements for audit, which is discussed in detail in Section 2 of this report.

Lack of capacity has been identified as a contributing factor to preparing appropriate, timely and accurate draft financial statements.
 Compliance with the accounting standards – Non-compliance with the requirements of the applicable financial reporting framework used.

A significant non-compliance relate to the non-disclosure of Statement of Cash Flows in all the draft financial statements submitted for audit.

 Limitation of scope – Lack of sufficient appropriate supporting documentations to substantiate the account balances reported in the financial statements.

Refer to Appendix A.


The absence of records created a significant limitation on the scope of the audits and restricted the performing of necessary audit procedures.

 Records management – Records management for the Provincial Councils were generally poor resulting in missing financial and related records to support most of the balances reflected in the financial statements.
 Asset management - The Provincial Councils have not reviewed the valuation of property, plant and the Fixed Assets equipment since 1999.

Registers/Schedules could not be determined as the balances in the General Ledger and the Fixed Assets Schedule did not reconcile.

the accuracy and completeness of In addition, There was no capitalisation policy to set the threshold for recording expenditures related to fixed assets.
 Loans and advances to staff and public – Loans and advances to staff and public were not supported with appropriate documentations.

The Provincial Councils were not effective in the recovery process of loans and advances resulting in substantial provisions for doubtful debts for the years audited.

16  Policies and Procedures - Absence of clear policies that requires the development of strategic and operational plans.
These include but not limited to strategic and corporate plans, business plans, risk management plans, disaster recovery plans.

 The OAG also looked at whether policies and procedures for various aspects of the Provincial Councils‟ operations exist and were updated.

For the years audited, we noted that policies and procedures were not reviewed and updated.

 Provincial rates – The Provincial Councils did not maintain Rates Collection Registers.
As such detailed listing of rates due and payable could not be determined.

Consistent over projection of revenue from provincial rates over the years.

 Confirmations of investments with Provincial Companies – Some Provincial Councils hold various investments with the Provincial Holding Companies.

For five of the nine Provincial Councils audited, investment confirmations were not provided by the Provincial Companies as such the audits were unable to determine the authenticity of the investments.
 Lack of available information on Provincial Companies –The financial statements of five of the six Provincial Councils audited indicated that various transactions were made with the Provincial Companies through investments and loans & advances including the Provincial Councils obtaining loans for the companies.

The lack of available and updated information and records on Provincial Companies also contributed to the scope limitations in the audits.
 VAT - Government grant and expenses related to government grants were not charged with VAT.

The issue on whether the Provincial Councils are subject to VAT is long outstanding and has remained unresolved.
17 SUSTAINABLE DEVELOPMENT GOALS The Committee was informed that relevant 17 SDGs Agenda and Fiji‟s National Development Plan have been considered and inculcated into each PC‟s Strategic Plan and Operational Plan in line with the Council‟s mandated functions as outlined under Section 7 of the iTaukei Affairs Act 1994 and the iTaukei Affairs (Provincial Council) Regulation 1996.

GENDER ANALYSIS Gender mainstreaming is a critical dimension to parliamentary scrutiny.
Pursuant to SO 110 (2) where a committee conducts an activity listed in clause (1), the committee shall ensure that full consideration will be given to the principles of gender equality to ensure all matters are considered with regard to the impact and benefit of both men and women equally.
As confirmed by few PCs and the ITAB that they were aware of the importance of gender balance within its workforce, however the Committee also considers the fact that currently all the recruitment processes that are taken place are based on merit.

18 COMMITTEE RECOMMENDATIONS Given the seriousness of the OAG findings and the complexity of the issues revealed in the operations and management of the nine (9) Provincial Councils, namely: 1.

2.

3.

4.

5.

6.

7.

8.

9.
Ba (2001 – 2007); Bua (2003 – 2007); Namosi (2001 – 2007); Ra (2000 - 2007); Rewa (2006 – 2007); Serua (2006 – 2007); Cakaudrove (2002 – 2007) Kadavu (2002 – 2007); and Nadroga/Navosa Provincial Councils (2002 – 2007) The Committee understands the different geographical challenges and therefore endorses the Office of the Auditor General‟s recommendations on the nine (9) Provincial Councils (PCs) and further recommends the following, especially when these PCs are operating mostly on Government‟s subvention funding.
10) The current Management of the ITaukei Affairs Board and the respective Provincial Councils Executives should urgently address all the issues that give rise to the audit qualifications, internal control deficiencies and other significant issues discussed and are highlighted on this report.

11) Improving the quality and timeliness of financial statements should be given the utmost priority.
Quality of financial reporting can be improved by involving suitably qualified Accountants in the Provincial Councils that are capable of preparing and presenting draft financial statements on time and in accordance with the requirements of the applicable financial reporting framework.
12) The iTaukei Affairs Board should consider the establishment of a robust and capable audit, risk and improvement committee to specifically look at the quality and timeliness of financial reporting by the Provincial Councils and formulate action plans to resolve governance and internal control deficiencies and significant audit findings reported by the Auditor-General.
13) The iTaukei Affairs Board should consider reviewing and strengthening the capability of its internal audit function to assist in reviewing the systems and processes for the Provincial Councils and develop recommendations for improvements to those in-charged with governance.

14) The iTaukei Affairs Board should demand the production of Annual Reports from the respective Provincial Councils highlighting all the aspects of its operation and the progress of its mandated role.
19 15) The iTaukei Affairs Board should conduct special performance audit on the operations of the PCs with its investment arm.

16) The iTaukei Affairs Board should consider reviewing Annual Council Levy, “Soli ni Yasana”.

17) The iTaukei Affairs Board should consider SDG 1, SDG 2, SDG 3, SDG 6, SDG 11 and SDG 16 to be inculcated in the respective Provincial Councils strategic and operational plan.
18) The Itaukei Affairs Board need findings and recommendations to the respective Provincial Councils for further consideration and implementation.

to disseminate the Committee The Public Accounts Committee strongly encourages the nine (9) Provincial Councils to implement the recommendations as a matter of priority, as the Committee will monitor and will visit councils in the near future to review the progress of its implementation of the current audit recommendations.
20 CONCLUSION The Committee is seriously concerned with the „disclaimer audit opinions‟ issued to all the 49 financial statements of the nine (9) Provincial Councils that were audited.

This is a negative reflection on the Ministry of iTaukei Affairs, iTaukei Affairs Board and the respective Provincial Councils.
General improvements are expected from 2013 onwards, however the iTaukei Affairs Board and the Provincial Councils are expected to update its accounts by end of the financial year 2019/2020 to allow completion of all outstanding audit for Provincial Councils and the iTaukei Affairs Board Accounts.
The Auditor-General is mandated to audit the Provincial Councils and the Committee noted that the Office of the Auditor-General is strongly committed to fulfilling its mandate and will continue to work closely with the iTaukei Affairs Board and the Provincial Councils to update the audits of all Provincial Councils by 2021.

21 We, the undersigned Members of the Standing Committee on Public Accounts agree with the contents of this report: …………………………… Hon.

Alvick Maharaj (Chairperson) ……………………….. Hon.


Joseph Nand (Deputy Chairperson) ………………………….

Hon.

Vijendra Prakash (Member) ………………………………… Hon.

Ro Teimumu Kepa (Member) …………………………… Hon.

Aseri Radrodro (Member) 22 APPENDICES 23 APPENDIX 1: PUBLIC ACCOUNTS COMMITTEE QUESTIONS 24 PUBLIC ACCOUNTS COMMITTEE QUESTIONS Introduction 1.

Operations of the Councils are funded by Government Subventions and through the collection on communal basis of provincial rates.
With reference to Appendix C - Abridged Financial Statements.

For PC‟s that are operating at a loss, does this mean that the grant and provincial rates received by the Council are insufficient?

2.

For the Status of Audit – what is the current progress?

Financial Reporting 3.

What are some of the strategies for improving the quality and timeliness of financial reporting?

4.
4.

The Auditor General issued “Disclaimer of Opinions” on all financial statements reported which will impact on subsequent financial statements.

Have the ITAB and the Provincial Councils considered this?

How will the ITAB and the Provincial Councils resolve this?

5.

TAB had advice the Committee that qualified personnel‟s have been recruited.

Will this rectify the issue of non – compliance to relevant accounting standards for the 87 FS yet to be submitted to OAG?

6.
6.

Has the Council exhibit the 79 audited financial statements in Council offices?

Internal Controls 7.

How effective is TAB in reviewing policies and operational plans governing the operations of the Council?

8.

How effective is the internal audit function of TAB/Council?

9.

Are the anomalies identified by internal audit or external audit embedded in the KPIs of the employees of the Council?

10.

How is the organization plans, policies and SOPs disseminated to staff across the 14 PC?
Other Significant Matters 11.

Delays in submissions of draft financial statements by the Provincial Councils for audit is not uncommon and have been the trend from previous years.

Why?

And what resolutions have been identified for the long term?

12.

Balances reflected in the financial statements were not able to be substantiated because accounting and other related records were not available or have been misplaced, what have ITAB and the Provincial Councils done to improve records management?

13.
13.

For loans and advances to staff and public – What are the strategies in place to recover the amount from the Provincial Companies that took loan from the Council?

14.

Investment confirmations were not provided by some provincial companies.

Can TAB provide a background of the setting up of these companies?

Who are the majority shareholders of the Companies?

Are all the PC companies still in operational?

Is the Council getting the return of its investment from the PC?

15.
15.

Provincial Council are now connected to govnet and with the implementation of the new financial system, will the accounts of the Provincial Council be consolidated with the Board?

16.

With the digitalization of the VKB, will this assist the Council in collection of provincial levy and publishing of the names of rate payers that are yet to pay their levy?

17.

The Auditor General made 9 significant high level recommendations in the report.
Provide an update on the implementations of these recommendations?
25 APPENDIX 2: iTAUKEI AFFAIRS BOARD WRITTEN RESPONSE 26 EFFECTIVE AND EFFICIENT PARTICIPATION OF THE ITAUKEI IN THE NATIONS PEACE, PROGRESS AND PROSPERITY BUA PROVINCIAL COUNCIL Naulumatua House PO Box 52 Nabouwalu Bua, Fiji Telephone: Facsimile: 8836020 8836101 BUA PROVINCIAL COUNCIL’S RESPONSE ON PUBLIC ACCOUNTS COMMITTEE QUESTIONS REPORT OF THE AUDITOR GENERAL ON PROVINCIAL COUNCILS – VOLUME 2 PAC MEETING AT NAULUMATUA HOUSE, NABOUWALU, BUA – 23.01.2020 PUBLIC ACCOUNTS COMMITTEE QUESTIONS Section Questions Responses Introduction 1.
Operations of the Councils are funded by Government Subventions and through the collection on communal basis of provincial rates.

With reference to Appendix C - Abridged Financial Statements.

For PC’s that are operating at a loss, does this mean that the grant and provincial rates received by the Council are insufficient?

Financial Reporting 2.

For the Status of Audit – what is the current progress?

3.

What are some of the strategies for improving the quality and timeliness of financial reporting?

4.
4.

The Auditor General issued “Disclaimer of Opinions” on all financial statements reported which will impact on subsequent financial statements.

Have the ITAB and the Provincial Councils considered this?

How will the ITAB and the Provincial Councils resolve this?

5.

TAB had advice the Committee that qualified personnel’s have been recruited.

Will this rectify the issue of non – compliance to relevant accounting standards for the 87 FS yet to be submitted to OAG?

6.
6.

Has the Council exhibit the 79 audited financial statements in Council offices?

1.

This is not applicable to Bua PC as the Council had reported Net Profit through-out the 5 years from 2003 to 2007.

Refer page 67.

2.

2012 Financial statements have been submitted to OAG for audit.

Bua PC is currently reconciling 2013-2018 records.

3.

Strategies in place include: - - Revision of the Accounting Manual in 2015 and the subsequent review of the Finance Manual in 2019/2020.
Development of Standard Operations Procedures (SOPs).

This covers Revenue and Payment cycles, reconciliations, and other accounting processes Improvements made in the filing system - - Quality Assurance checks conducted on financial returns and queries flagged for immediate actions Training on Financial Statement Preparations has been scheduled in Quarter 3 of FY2019/2020 for all Provincial Treasurers In-house spot-checks conducted - - 4.
It is understood that the Disclaimer of Opinion has been issued due to significant unsubstantiated balances reported which was primarily due to missing records.

This has been heavily considered and a request will be put forward to the TAB Board requesting endorsement for a cut-off in 2013.

5.

Yes improvements shall be expected in the 2013 to 2018 Financial Statements 6.

The Bua Provincial Council has received the 2003 to 2007 audited accounts.
These will be tabled in the next Staff & Finance committee meeting which is scheduled on the 1st week of February, and subsequently in the June 2020 Provincial Council meeting.

PAC MEETING AT NAULUMATUA HOUSE, NABOUWALU, BUA – 23.01.2020 Internal Controls 7.

How effective is TAB in reviewing policies and operational plans governing the operations of the Council?

8.

How effective is the internal audit function of TAB/Council?

9.
9.

Are the anomalies identified by internal audit or external audit embedded in the KPIs of the employees of the Council?

10.

How is the organization plans, policies and SOPs disseminated to staff across the 14 PC?

Other significant matters 11.

Delays in submissions of draft financial statements by the Provincial Councils for audit is not uncommon and have been the trend from previous years.

Why?

And what resolutions have been identified for the long term?

12.
12.

Balances reflected in the financial statements were not able to be substantiated because accounting and other related records were not available or have been misplaced, what have ITAB and the Provincial Councils done to improve records management?

13.

For loans and advances to staff and public – What are the strategies in place to recover the amount from the Provincial Companies that took loan from the Council?

14.

Investment confirmations were not provided by some provincial companies.
Can TAB provide a background of the setting up of these companies?

Who are the majority shareholders of the 7.

The Operations Manual was finalized in August 2019 and awareness was also conducted during Roko Tui and SART workshops.

TAB has developed a 5-year Strategic Development Plan (SDP) with effect from 2018.

Annual operations plan is derived from the SDP together with the Provincial Councils Business Plan every year.
Achievements against Business plan targets are monitored and reported on a monthly basis to the Monitoring & Evaluation Unit for further analysis.

Mid-year Performance review is conducted by the Operations Division at TAB whereby Provincial Councils achievements against Business Plan targets are tracked and scrutinized.

8.

The Internal audit team conducts both normal and surprise audit visits every year.
The audit reports with findings and recommendations submitted to the Permanent Secretary/CEO-TAB for his endorsement.

Critical audit issues are separately flagged for immediate remedial actions by the Provincial Councils.

These are further reviewed and discussed during the Exit Interview meetings.

9.

Under the new Open Merit Recruitment Selection (OMRS) system, employees’ KPIs must not exceed a total of four.

However, this is further detailed out in the Key Result Areas and Individual Work Plan.
Timely implementation of audit recommendation is in one of the 4 KPIs.

10.

Hard copies are distributed with soft copies disseminated through govnet emails.

Awareness conducted through quarterly workshops and inductions sessions.

11.

Reasons for non-submission of draft financial statements from previous years can only be explained by the predecessors.
The Honorable Member Adi Litia Qionibaravi in her capacity as the former CEO of iTaukei Affairs Board in those years perhaps could enlighten the committee on this.

As a way forward, targets have been set to clear the audit backlog by end of the financial year.

12.

Filing systems have been improved both at TAB and at the Council offices.

Regular checks are carried out.

Locked cabinets and storage containers have been purchased for safe keeping of records.
Employees have also been sent for Records Management trainings.

13.

There was no loan issued by Bua Provincial Council to the Provincial Company from 2003 to 2007.

14.

Bua Provincial Council have no investments with the Provincial company from 2003-2007.

15.

The new financial system will allow system integration of TAB and the 14 Provincial offices.

PAC MEETING AT NAULUMATUA HOUSE, NABOUWALU, BUA – 23.01.2020 Companies?

Are all the PC companies still in operational?


Is the Council getting the return of its investment from the PC?

15.

Provincial Council are now connected to govnet and with the implementation of the new financial system, will the accounts of the Provincial Council be consolidated with the Board?

16.

With the digitalization of the VKB, will this assist the Council in collection of provincial levy and publishing of the names of rate payers that are yet to pay their levy?

17.
17.

The Auditor General made 9 significant high level recommendations in the report.

Provide an update on the implementations of these recommendations?

16.

The Provincial Council is given the option in section 34 to levy Province members by way of Land Rate System, Provincial Rate system or the Soli Vakavanua System.

The Bua Provincial Council is currently adopting the “Soli Vakavanua” system whereby targets are set at $521.00 per village.
There are 54 villages and 9 Districts in Bua with a forecast of $28,134.00 to be collected on an annual basis.

As a collection improvement strategy, the Adi Bua Festival was revived in 2014 after a lapse of 15 years.

This strategy has been successful for the last 6 years with 95-100% collection rate.

17.

In addition to the above, TAB has established a Governance Unit that will harness the identified process gaps and deficiencies.
The unit will work closely with the TAB Audit sub-committee with extended scope on risk management and quality reporting.

A recent valuation was carried out on all Provincial Councils’ assets in 2019 with the assistance of Ministry of Lands.

The Valuation Reports have been received however few issues need to be clarified before final reports are issued for dissemination to the Provincial Councils.
The iTaukei Affairs Board has also set up a Commercial Unit that will explore economic empowerment opportunities, provide financial advisory roles and promote economic security for the iTaukei communities.

The Unit as part of its Framework will record and update its commercial database on information on iTaukei-owned businesses including Provincial companies.
PAC MEETING AT NAULUMATUA HOUSE, NABOUWALU, BUA – 23.01.2020 PROVINCIAL COUNCILS’ RESPONSE ON PUBLIC ACCOUNTS COMMITTEE QUESTIONS REPORT OF THE AUDITOR GENERAL ON PROVINCIAL COUNCILS – VOLUME 2 PUBLIC ACCOUNTS COMMITTEE QUESTIONS Section Introduction 1.

Operations of Questions the Councils are funded by Government Subventions and through the collection on communal basis of provincial rates.

With reference to Appendix C - Abridged Financial Statements.
For PC’s that are operating at a loss, does this mean that the grant and provincial rates received by the Council are insufficient?

Financial Reporting 2.

For the Status of Audit – what is the current progress?

3.

What are some of the strategies for improving the quality and timeliness of financial reporting?

1.

In 2003-2007, government grant partially covered the Provincial Councils operational costs.

Provincial rates collections fell below targets, this attributed to the net deficit reported.
Responses 2.

2012 Financial statements have been submitted to OAG for audit.

2013-2015 records are currently been reconciled and will be submitted to OAG by end of the financial year.

Disruption have been caused by COVID 19 outbreak, hence target to clear backlog is set to end of the calendar year, 2020.

3.

Strategies in place include: - - Revision of the Accounting Manual in 2015 and the subsequent review of the Finance Manual in 2019/2020.

Development of Standard Operations Procedures (SOPs).
This covers Revenue and Payment cycles, reconciliations, and other accounting processes Improvements made in the filing system - - Quality Assurance checks conducted on financial returns and queries flagged for immediate 4.

The Auditor General issued “Disclaimer of Opinions” on all financial statements reported which will impact on subsequent financial statements.

Have the ITAB and the Provincial Councils considered this?

How will the ITAB and the Provincial Councils resolve this?

5.
5.

TAB had advice the Committee that qualified personnel’s have been recruited.

Will this rectify the issue of non – compliance to relevant accounting standards for the 87 FS yet to be submitted to OAG?

actions Refresher-Trainings on Financial Statement Preparations In-house spot-checks conducted - - 4.

It is understood that the Disclaimer of Opinion has been issued due to significant unsubstantiated balances reported which was primarily due to missing records.
This has been heavily considered and a request will be put forward to the TAB Board requesting endorsement for a cut-off in 2013.

5.

Yes improvements shall be expected in the 2013 to 2018 Financial Statements 6.

Has the Council exhibit the 79 audited financial statements in Council offices?

Internal Controls 7.

How effective is TAB in reviewing policies and operational plans governing the operations of the Council?

8.

How effective is the internal audit function of TAB/Council?

6.
6.

The audited accounts have been sent to the TAB Board for discussion.

These will be distributed to the Provincial Councils once Board’s endorsement is received.

These Financial Statements will be tabled in the Staff & Finance committee meeting, and subsequently in the Provincial Council meeting.

7.

The Operations Manual was finalized in August 2019 and awareness was also conducted during Roko Tui and SART workshops.

TAB has developed a 5-year Strategic Development Plan (SDP) with effect from 2018.
Annual operations plan is derived from the SDP together with the Provincial Councils Business Plan every year.

Achievements against Business plan targets are monitored and reported on a monthly basis to the Monitoring & Evaluation Unit for further analysis.

Mid-year Performance review is conducted by the Operations Division at TAB whereby Provincial Councils achievements against Business Plan targets are tracked and scrutinized.

8.
8.

The Internal audit team conducts both normal and surprise audit visits every year.

The audit reports with findings and recommendations submitted to the Permanent Secretary/CEO-TAB for his endorsement.

Critical audit issues are separately flagged for immediate remedial actions by the Provincial Councils.

These are further reviewed and discussed during the Exit Interview meetings.

9.

Are the anomalies identified by internal audit or external audit embedded in the KPIs of the employees of the Council?
9.

Under the new Open Merit Recruitment Selection (OMRS) system, KPI, Key Result Areas and Individual Work Plans for Provincial Treasurers are updated to reflect tasks on timely implementation of audit recommendations.

10.

How is the organization plans, policies and SOPs disseminated to staff across the 14 PC?

10.

Hard copies are distributed with soft copies disseminated through govnet emails.

Awareness conducted through quarterly workshops and inductions sessions.

Other significant matters 11.


Delays in submissions of draft financial statements by the Provincial Councils for audit is not uncommon and have been the trend from previous years.

Why?

And what resolutions have been identified for the long term?

11.

Reasons for non-submission of draft financial statements from previous years can only be explained by the predecessors.
The Honorable Member Adi Litia Qionibaravi in her capacity as the former CEO of iTaukei Affairs Board could enlighten the committee on this.

As a way forward, targets have been set to clear the backlog by end of the financial year.

However with the outbreak and disruptions caused by COVID19 pandemic, this will be extended to end of the calendar year, 2020.

12.
12.

Balances reflected in the financial statements were not able to be substantiated because accounting and other related records were not available or have been misplaced, what have 12.

Filing systems have been improved both at TAB and at the Council offices.

Regular checks are carried out.

Locked cabinets and storage containers have been purchased for safe keeping of records.

Employees have also been sent for Records Management trainings.
ITAB and the Provincial Councils done to improve records management?

13.

For loans and advances to staff and public – What are the strategies in place to recover the amount from the Provincial Companies that took loan from the Council?

14.

Investment confirmations were not provided by some provincial companies.

Can TAB provide a background of the setting up of these companies?

Who are the majority shareholders of the Companies?

Are all the PC companies still in operational?


Is the Council getting the return of its investment from the PC?

15.

Provincial Council are now connected to govnet and with the implementation of the new financial system, will the accounts of the Provincial Council be consolidated with the Board?

16.

With the digitalization of the VKB, will this assist the Council in collection of provincial levy and publishing of the names of rate payers that are yet to pay their levy?

17.
17.

The Auditor General made 9 significant high level recommendations in the report.

Provide an update on the implementations of these recommendations?

13.

TAB noted that the weak oversight by the then management attributed to the outstanding loans by the Provincial Companies.

TAB is currently in negotiation with the Provincial Companies on these loans and will enter into repayment plans where feasible.
Otherwise with conditions and subject to Board’s decision, it may also consider cashless conversions into equity and simultaneously improve collaborations on performance management and oversight through the TAB Commercial Unit.

14.

Provincial Companies were set up to financially assist Provincial Councils (in the form of returns on investments) fund its operations as well as assist in addressing development needs in the Province.
While it must be noted that not all Provincial Companies are owned by the Provincial Councils through share ownership, over the years, the operations of the Provincial Companies have deviated from its original stance resulting in non-remittance of dividend to the Provincial Councils and loss of management control.
At present, this has become one of the exciting challenges, and TAB will continue to strengthen collaboration, oversight and feasible interventions to ensure strategic realignment and viable operations for Provincial Companies.

15.

The new financial system will allow system integration of TAB and the 14 Provincial offices.

16.

The Provincial Council is given the option in section 34 to levy Province members by way of Land Rate System, Provincial Rate system or the Soli Vakavanua System.
The Provincial Councils are currently adopting the “Soli Vakavanua” system whereby targets are set per village or Tikina.

To boost the rate collection, Provincial Councils have introduced annual Provincial Festivals whereby rates are collected by Tikina/village levels.

This strategy has been successful for the last 6 years.

17.

In addition to the above, TAB has established a Governance Unit that will harness the identified process gaps and deficiencies.
The unit will work closely with the TAB Audit sub-committee with extended scope on risk management and quality reporting.

Governance aspects of Provincial, Tikina and Village Councils forums have been strengthened through the development and implementation of the Council Members Guide, and Terms of Reference of Sub-committees.

A recent valuation was carried out on all Provincial Councils’ assets in 2019.

The Valuation Reports have been distributed to the Provincial Councils.
The iTaukei Affairs Board has also set up a Commercial Unit that will explore economic empowerment opportunities, provide free financial advisory roles and organize financial literacy trainings for the iTaukei communities including the Provincial Companies.
Supplementary Response to the Public Accounts Committee Provincial Councils, Volume 2 Question The Committee had requested the Office of the Auditor General (‘Office’) to clarify about the future of the task force stationed at the Office who have been dedicated in auditing the PCs financial statements.

Once the backlog of the Provincial Councils has been cleared, will the task force cease its existence and will OAG still audit the PCs as any other entity that the Office audits?
What will be the timelines be of the provincial council's being audited and will there still be substantive report tabled in Parliament by the Auditor General?

Response  Clarify about the future of the task force stationed at the Office who has been dedicated in auditing the PCs financial statements.

OAG Response - There is no specific task force dealing with the audits of Provincial Councils.
What the OAG had done is dedicating one Audit Group to be responsible for all the audits of the Provincial Councils, in addition to other audits, however with the main focus of updating PC audits.

Under the revised OAG structure, an Audit Team will continue to be dedicated to the audits of Provincial Councils.

 Once the backlog of the Provincial Councils has been cleared, will the task force cease its existence and will OAG still audit the PCs as any other entity that the Office audits?
OAG Response – As stated in the response above, there is no task force.

The Auditor General is mandated to audit the Provincial Councils thus will continue to audit Provincial Councils as any other entity OAG audits.

 What will be the timelines of the provincial council's being audited and will there still be substantive report tabled in Parliament by the Auditor General?

OAG Response - The timelines for audit will depend on when draft financial statements are submitted to the OAG for audit.
Reports will be tabled in Parliament for all audits done by OAG which include Provincial Councils.

In addition to the responses above, we also wish to bring to the attention of the PAC the outstanding audit fees owed by Provincial Councils which as at 31 November 2019 totalled $279,977.

I also attach the loans and advances information previously requested by the PAC.
Subject From To Cc Sent Request - Supplementary Response from OAG - Auditing of Provincial Councils Finau Nagera fnagera001@auditorgeneral.gov.fj Mateo W. Lagimiri mateo.lagimiri@parliament.gov.fj Savenaca Koro savenaca.koro@govnet.gov.fj ; Sairusi Dukuno sdukuno@auditorgeneral.gov.fj ; Makereta Dyer makereta.dyer@govnet.gov.fj ; Sulueti D. Cakau sulueti.cakau@auditorgeneral.gov.fj Monday 27 January 2020 11:46 a.m. Finau Nagera Director of Audit Office of the Auditor General 27 January 2020 Response received via email - Monday 27/01/2020 11:46 a.m.
PROVINCIAL COUNCIL REPORTS - VOLUMES 1 & 2 (Source: Provincial Councils Financial Statements submitted by ITAB) No.

PROVINCIAL COUNCIL PROVINCIAL COMPANY LOAN WITH SBAU 1 Ba PC 2001 - 2007 Ba Provincial Holdings Limited (investment confirmations not provided-includedintheAuditors Report) As per the SBAU Loan Statement, the description is for Cagi-Mai-Ba (it was not clear whether the loan was for the purchase or the repairs and maintenance of the Cagi-Mai-Ba.
Loan was obtained in 2000 of $129,000 As per the Auditors Report for FY 2000 - loan was obtained from FNPF of $232,980 by the Ba the under Company Holdings not Council's however name recorded in the books of the Council.

2 Bua PC 2003 - 2007 Bulacakau Limited (noinvestment confirmation provided - included in the Auditors Report) Other investments 1.

Yasana Holdings Limited, 2.

Fijian Holdings Limited, 3.


UToF Yes - loan of $86,700 was obtained in 1995 and is secured by the First Registered Mortgage over the lease title and all developments which include: (i) Naulumatua house (ii) Existing Provincial Buildings and staff quarters (iii) New 2x3 bedroom house.

Another loan of $225,000 was obtained in 2001 and was secured by: (i) Assignment over FHL shares held with FDB (ii) First registered mortgage over NLTB Lease No.

46376/4/2/303.
46376/4/2/303.

CLEARED LOAN at SBAU as AMOUNT 31/12/07 ($) 97,201.00 SBAU Loan cleared in 2015.

- 74,050.00 As at 31/12/07 the loan debit balance of $74,050 in financial the statement.

had a ANY ADVANCE ISSUED TO COMPANY Yes, advance was issued to Ba Holdings.

It was recorded in the FS under Other Assets (Note 4 - 2007 FS) Refer below for the breakdown of balance owed by the Holdings Company: No movement noted since 2005.
ADVANCE as AMOUNT at 31/12/07 97,201.00 No - total advance to public as at 31/12/07 is $120.

- 3 Cakaudrove 2002 - 2007 PC Cakaudrove Holdings No loan obtained from SBAU.

- - Yes, advance was issued to Cakaudrove Holdings as per FS.

558,547.00 Refer below for details.

4 Kadavu PC 2002 - 2007 1.

Kadavu Shipping Company 2.


Kadavu Development Company (Investment confirmations not provided-includedintheAuditors Report) Loan was obtained from SBAU on behalf of Kadavu Shipping Company and Kadavu Holding Company.
Refer below for details: 42,165.00 Yes, advance was issued to Kadavu Shipping Company and Kadavu Holdings Company as follows: 158,484.00 5 Lau 2007 PC 2003 - Yatu Lau Company Limited (investment confirmation not provided-includedintheAuditors Report) Eventhough the SBAU loan amounted to $224,363 the loan was not obtained on behalf of the Provincial Company.
224,363.00 Balance as at 31/12/07 amounted to $284,363 loan which includes with CFT of $60,000 and SBAU of $224,363 Grom the GL Listing as at 31/12/07, there were no advances issued to the company.

Not applicable 6 Lomaiviti PC 2006 - 2007 Lomaiviti Holdings Limited Lomaiviti Limited Shipping Services Loan was obtained on behalf of the Provincial Company (it was not specific in the FS which company it refers to) i.

Loan 1999 - Account No.


17-00811 with principal loan of $150,000 7 Macuata PC 2005 - 2007 Farmers Fijian Cane Macuata (investment confirmation not provided-includedintheAuditors Report) Macuata Limited (not in the FS) Provincial Corporation Yes - loan was obtained from SBAU which amounted to $76,806 i.

Loan 1996 of $22,768 ii.

Loan 1998 of $47,806 iii.

Loan 1999 of $6,232 Balances carried forward from prior years.
The purpose of the loan obtained from SBAU is not clear and whether the loan was obtained on behalf of the Provincial Company.

114,962.00 Balance as at 31/12/07 is and $114,962 balance as at 31/12/10 is $53,730 76,806.00 No advance issued to company Not applicable As per the GL and FS, loans to public for commercial purposes amounted to $199,946.

The whole amount was provided for as doubtful debts as at 31/12/07 of $199,946.

As per the FS, as at 31/12/17 loans to public for commercial purposes is nil.
The Council also obtained loan from FDB to finance the purchase of shares in ATH and Macuata House.

$81,090 was for the purchase of shares and $3,164,472 balance as at 31/12/07 for the Macuata House loan.

8 Nadroga/Navosa PC 2002 - 2007 1.

Nadroga Development Company 2.

Nadroga/Navosa Investment Company Limited (not in the FS) As per the FS, the Council obtained loan from SBAU for the Nadroga/Navosa Corporation Limited's equity contribution for a loan the company took from FDB.
The loan is secured over the assets of the company including assignment of shares, dividends and land.
190,630.00 Loan with SBAU cleared in 2009 As per the FS, the Council recorded a Receivable from PC Company - Nadroga Development Company of $198,690 (Note 5 Other Assets in the 2007 FS) Refer below for the balance recorded as Receivable from PC Company from 2007 - 2010: 198,690.00 9 Naitasiri PC 2000 - 2007 10 Namosi PC 2001 - Naitasiri Provincial Investment Co- operative Limited (not in the FS) Namosi Development Company 2007 Loan with SBAU was obtained to finance the construction of staff quarters at Vunidawa.
Yes - loan was obtained by the Council on behalf of the Namosi Development Company.

The Council obtained three loans from SBAU: (i) 1996 Account No.

10-458-A - as at 31/12/07 the loan balance amounted to $193,475 (ii) 1996 Account No.

10-458-B - as at 31/12/07 the loan balance was $183,870 (iii) 2002 Account No.
02.03.07.3.185 of $275,000 Included in the Auditors Report - no records provided to support the loan balance of $275,000 207,535.00 No advance issued to the company Not applicable 652,345.00 Total interest bearing borrowings amounted to SBAU loan is $652,345 $680,100.

Loans issued to public as at 31/12/07 amounted to $775,690, issued to Namosi out of which $774,310 (99%) was Development Company.

Refer to Note 3 of the 2007 FS.

No movement noted in the loan balance for the Company since 2001.
11 Ra PC 2000 - 2007 Ra Provincial Holdings No loan obtained from SBAU.

- 0 No advance issued to the company 12 Rewa PC 2006 - 2007 Rewa Provincial Holdings Ltd Yes - loan was obtained from SBAU to finance the purchase of shares in Rewa Provincial Holdings Limited and ATH 544,046.00 Balance as at 31/12/07 amounted to $544,046 From the GL Listing, advance issued to Rewa Provincial Holdings Limited had a credit balance of $100 (3.06.0.04.006) as at 31/12/07.
The audit also noted that some of the GL allocations were named 'Miscellaneous' ($36,199.87-advance to public & $630 - loans to public) hence it was difficult to determine the listing to confirm who were issued these advances.

Total loans advances and is $856,135.

Loans to public = $775,690 Namosi Dev Co = $774,310 Out of the total and loans advances of $856,135, about 90% of the loan was to issued Namosi Development Company.
Not applicable - 100.00 13 Serua PC 2006 - 2007 Serua Provincial Investment Co. Ltd (no investment confirmation provided-includedintheAuditors Repo Yes - loan was obtained from SBAU of $203,278 to finance the purchase of land.

203,278.00 As at 31/12/07 the was balance loan $203,278 As per the GL Listing as at 31/12/07, advances were given to the following: No advance cleared as at 31/12/07.

14 Tailevu PC 2002 - 2007 1.

Tailevu Provincial Cooperative Dairy Farm Ltd 2.


Tailevu Provincial Holdings Company Ltd (No investment confirmations provided for both - included in the Auditors Report) It is not clear whether the loan was taken by the Council or by the Tailevu Provincial Holdings - in the loan statement from SBAU - the name of the loan is Tailevu Provincial Holdings.
- SBAU Loan settled in 2009 None N/A APPENDIX 3: QUALIFICATION ISSUES FOR THE NINE (9) PROVINCIAL COUNCILS 27 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix B: Qualification Issues Due to the absence of documentations to appropriately support the balances reflected in the financial statements, we were unable to determine the necessary adjustments to correct the financial statements: Provincial Council Ba: 2001 Qualification Issues 1.
The Council recorded cash of $14,946 in the statement of financial position as at 31 December 2001.

Included in the balance were $20,635 under current account and negative cash on hand of $5,689.

The Council was unable to provide appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $48,286, Inter Fijian Affairs/Provincial Council current account of $4,104, current liabilities of $181,486, deposit (Adi Salusalu for operation costs) of $110,045, Ba Provincial Council advance (TAB) of $20,412, salary, wages & related payments of $171,023, personal cost of $55,997, other expenses of $61,965 and rates refund of $40,958 in the statement of financial position and statement of income and expenditure as at 31 December 2001.
The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2001.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.
4.

The Council recorded property, plant and equipment at a net value of $686,256 which included land of $143,104, building of $352,237 and motor vehicle of $76,967 in the statement of financial position as at 31 December 2001.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $496,626, which had been carried forward from previous year, and prior year adjustment of $229,802 in the statement of changes in equity for the year ended 31 December 2001.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $257,553 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2001.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2001, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 26 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council 2002 Qualification Issues 1.

The Council recorded negative cash of $4,129 in the statement of financial position as at 31 December 2002.

Included in the balance were $4,031 under current account and negative cash on hand of $8,160.
The Council was unable to provide me with appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded negative loans and advances of $9,936, Inter Fijian Affairs/Provincial Council current account of $4,158, current liabilities of $5,631, deposit (Adi Salusalu for operation costs) of $110,045 and Ba Provincial Council advance (TAB) of $20,412 in the statement of financial position as at 31 December 2002.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2002.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $681,570 which included land of $141,317, building of $343,809 and motor vehicle of $148,332 in the statement of financial position as at 31 December 2002.
The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $496,626 which had been carried forward from previous years and negative prior year adjustment of $4,165 in the statement of changes in equity for the year ended 31 December 2002, which had been carried forward from previous years.
The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $232,325 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2002.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2002, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2003 1.

The Council recorded negative cash of $28,215 in the statement of financial position as at 31 December 2003.
Included in the balance were negative $17,894 under current account and negative cash on hand of $10,321.

The Council was unable to provide me with appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
The Council recorded loans and advances of $24,415, Inter Fijian Affairs/Provincial Council current account of $7,352, other deposits of $22,068, current liabilities of $28,265 and Ba Provincial Council advance (TAB) of $20,412 in the statement of ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 27 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues financial position as at 31 December 2003.
The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2003.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.
4.

The Council recorded property, plant and equipment at a net value of $632,504 which included land of $139,530, building of $335,382 and motor vehicle of $112,352 in the statement of financial position as at 31 December 2003.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $496,626, which had been carried forward from previous years, and negative prior year adjustment of $23,179 in the statement of changes in equity for the year ended 31 December 2003.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $279,421 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2004 1.

The Council recorded cash of $202,792 in the statement of financial position as at 31 December 2004.
Included in the balance were $80,383 under current account, $135,436 under Adi Salusalu festival account and negative cash on hand of $13,027.

The Council was unable to provide me with appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $45,131, Inter Fijian Affairs/Provincial Council current account of $7,501, current liabilities of $50,999 and Ba Provincial Council advance (TAB) of $20,412 in the statement of financial position as at 31 December 2004.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2004.
The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $589,225 which included land of $137,743, building of $326,954 and motor vehicle of $76,372 in the statement of financial position as at 31 December 2004.
The audit was not provided ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 28 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $496,626, which had been carried forward from previous years, and prior year adjustment of ($15,782) in the statement of changes in equity for the year ended 31 December 2004.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $288,999 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2005 1.

The Council recorded cash of $180,266 in the statement of financial position as at 31 December 2005.
Included in the balance were $98,160 under current account, $104,697 under Adi Salusalu festival account and negative cash on hand of $22,591.

The Council was unable to provide me with appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $52,564, Inter Fijian Affairs/Provincial Council current account of $7,501, subvention claimed not received of $22,819, current liabilities of $47,183 and Ba Provincial Council advance (TAB) of $20,412 in the statement of financial position as at 31 December 2005.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2005.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $603,825 which included land of $135,957, building of $318,527 and motor vehicle of $93,325 in the statement of financial position as at 31 December 2005.
The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $496,626, which had been carried forward from previous years in the statement of changes in equity for the year ended 31 December 2005.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 29 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $162,676 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2005, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2006 1.

The Council recorded cash of $240,042 in the statement of financial position as at 31 December 2006.
Included in the balance were $135,125 under current account, $104,697 under Adi Salusalu festival account and cash on hand of $220.

The Council was unable to provide me with appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded negative loans and advances of $18,849, Inter Fijian Affairs/Provincial Council current account of $7,501, subvention claimed not received of $22,819, current liabilities of $23,767 and Ba Provincial Council advance (TAB) of $20,412 in the statement of financial position as at 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2006.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $658,620 which included land of $134,170, building of $310,099 and motor vehicle of $162,478 in the statement of financial position as at 31 December 2006.
The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $496,626, which had been carried forward from previous years, and prior year adjustment of $15,232 in the statement of changes in equity for the year ended 31 December 2006.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $260,435 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 30 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council 2007 Bua: 2003 Qualification Issues 1.

The Council recorded cash of $182,136 in the statement of financial position as at 31 December 2007.

Included in the balance were $48,653 under current account, $133,476 under Adi Salusalu festival account and cash on hand of $7.
The Council was unable to provide me with appropriate supporting documents for cash at bank and on hand.

A bank audit confirmation was obtained for the cash at bank balance, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded negative loans and advances of $11,886, Inter Fijian Affairs/Provincial Council current account of $7,601, subvention claimed not received of $13,892, negative current liabilities of $62,864 and Ba Provincial Council advance (TAB) of $90,412 in the statement of financial position as at 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded investments of $1,987,644 with Ba Provincial Holdings Limited in the statement of financial position as at 31 December 2007.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $611,027 which included land of $132,383, building of $301,672 and motor vehicle of $123,478 in the statement of financial position as at 31 December 2007.
The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $496,626, which had been carried forward from previous years, and prior year adjustment of $5,570 in the statement of changes in equity for the year ended 31 December 2007.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $271,003 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

1.
1.

The Council recorded loans and advances of $15,702, provision for doubtful debts of $14,565, other assets of $14,422, creditors and accruals of $68,156, Deposits of $34,848, deferred income of $402,314 and an undisbursed subvention balance of ($192,412) in the statement of financial position as at 31 December 2003.

The Provincial Council was unable to provide appropriate documentations to support the above balances.

2.
2.

The Council recorded property, plant and equipment at a net value of $955,208 for which included in the balance were land of $30,000, buildings of $764,018 and motor ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 31 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues vehicle of $36,417.
The audit was not provided with the title deeds for land and buildings and registration details of motor vehicle to confirm the existence and completeness of the balances.

3.

The Council recorded investments of $259,602 in the statement of financial position as at 31 December 2003.

Included in the balance were investments with Bulacakau Limited for $22,500.

I was not provided with investment confirmation from the company which was necessary to confirm the existence and completeness of the balances.

4.
4.

The Council recorded an asset revaluation reserve of $654,613, which had been carried forward from previous years, and prior year adjustment of $375,937 in the statement of changes in equity for the year ended 31 December 2007.

The Council was unable to provide appropriate documentations to support the journal entries for asset revaluation reserve and prior year adjustments in the general ledger.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Provincial Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $31,385 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2004 1.

The Council recorded cash of $124,441 which included cash at bank of $116,000 and cash on hand of $8,441 in the statement of financial position as at 31 December 2004.
The Council was unable to provide me appropriate supporting documentations for cash at bank – current account of $113,478 and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however, did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $15,221, provision for doubtful debts of $14,565, other assets of $14,422, creditors and accruals of $81,168, Deposits of $51,928, and undisbursed subvention of ($294,992) in the statement of financial position as at 31 December 2004.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $924,876 for which included in the balance were land of $30,000, buildings of $746,524, motor vehicle of $24,917 and a work in progress balance of $100,000.

The audit was not provided with the title deeds for land and buildings, registration details of motor vehicle and appropriate supporting documentations to confirm the existence and completeness of the balances.

4.
4.

The Council recorded investments of $359,602 in the statement of financial position as at 31 December 2004.

Included in the balance was investment with Bulacakau Limited for $22,500.

The audit was not provided with investment confirmation necessary to substantiate the existence and completeness of the investment balance with Bulacakau Limited.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 32 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 5.

The Council recorded an asset revaluation reserve of $654,613, which had been carried forward from previous years, and prior year adjustment of $6,469 in the statement of changes in equity for the year ended 31 December 2004.
The Council was unable to provide appropriate documentations to support the journal entries for asset revaluation reserve and prior year adjustments in the general ledger.

6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $32,748 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2005 1.

The Council recorded cash of $225,015 which included cash at bank of $216,059 and cash on hand of $18,956 in the statement of financial position as at 31 December 2005.
The Council was unable to provide me appropriate supporting documentations for cash at bank-current account of $135,425 and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $16,988, provision for doubtful debts of $14,565, other assets of $10,637, net trade & other payables $94,898, net interest bearing borrowing of $7,768 and deferred income of $199,777 in the statement of financial position as at 31 December 2005.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $895,732 for which included in the balance were land $30,000, buildings $729,029, motor vehicle $13,417 and a work in progress balance of $100,000The audit was not provided with the title deeds for land and buildings, registration details of motor vehicle and supporting documentations to confirm the existence and completeness of the balances.

4.
4.

The Council recorded investments of $359,602 in the statement of financial position as at 31 December 2005.

Included in the balance were investments with Bulacakau Limited for $22,500 and Unit Trust of Fiji for $100,000.

The audit was not provided with investment confirmations necessary to verify the existence and completeness of the balances 5.
The Council recorded an asset revaluation reserve of $654,613, which had been carried forward from previous years, and prior year adjustment of $19,281 in the statement of changes in equity for the year ended 31 December 2005.

The Council was unable to provide appropriate documentations to support the asset revaluation reserve balance and prior year adjustments.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 33 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $28,382 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

7.

The Council recorded income from rental of $51,802 and other income of $71,234 in the statement of income and expenditure for the year ended 31 December 2005.
The Council was unable to provide appropriate documentations to support the above balances.

As a result, the audit was unable to verify the completeness and accuracy of the balances and also unable to determine whether any adjustment might have been necessary in respect of the income from investment at the end of the financial year and any corresponding adjustments to the elements making up the statement of income and expenditure and statement of financial position.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2005, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2006 1.

The Council recorded cash of $260,369 which included cash at bank of $251,958 and cash on hand of $8,411 in the statement of financial position as at 31 December 2006.
The Council was unable to provide me appropriate supporting documentations for cash at bank - current account of $169,047 and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $18,309, provision for doubtful debts of $14,565, other assets of $14,422, net trade & other payables $66,316, net interest bearing borrowing of $6,899 and deferred income of $197,090 in the statement of financial position as at 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $914,890 for which included in the balance were land $30,000, buildings $711,535, motor vehicle $39,728 and a work in progress balance of $100,000.

The audit was not provided with the title deeds for land and buildings, registration details of motor vehicle and supporting documentations to confirm the existence and completeness of the balances.

4.
4.

The Council recorded investments of $359,602 in the statement of financial position as at 31 December 2006.

Included in the balance were investments with Bulacakau Limited for $22,500 and Unit Trust of Fiji for $200,000.

The audit was not provided with investment confirmations necessary to verify the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $654,613, which had been carried forward from previous years, and prior year adjustment of $41,401 in the statement of changes in equity for the year ended 31 December 2006.

The Council was unable to provide appropriate documentations to support the asset revaluation reserve balance and prior year adjustments.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 34 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues provincial rates of $31,125 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

7.
7.

The Council recorded income from rental of $28,405 and other income of $26,865 in the statement of income and expenditure for the year ended 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.

The Council recorded cash of $218,577 which included cash at bank of $210,252 and cash on hand of $8,325 in the statement of financial position as at 31 December 2007.
The Council was unable to provide me appropriate supporting documentations for cash at bank - Naulumatua account of $62,123, Bua Primary School Development account of $4,979, Scholarship Fund account of $4,979 and cash on hand.

Bank audit confirmations were obtained for the cash at bank accounts, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $19,260, provision for doubtful debts of $14,565, other assets of $130,877, net trade & other payables $176,249, net interest bearing borrowing of ($2,092) and deferred income of $194,403 in the statement of financial position as at 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $896,806 for which included in the balance were land $30,000, buildings $694,041, motor vehicle $46,200 and a work in progress balance of $100,000.

The audit was not provided with the title deeds for land and buildings, registration details of motor vehicle and supporting documentations to confirm the existence and completeness of the balances.

4.
4.

The Council recorded investments of $469,279 in the statement of financial position as at 31 December 2007.

Included in the balance were investments with Bulacakau Limited for $22,500, Unit Trust of Fiji for $200,000 and term deposits of $109,677.

The audit was not provided with investment confirmations necessary to verify the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $654,613, which had been carried forward from previous years, and net prior year adjustment of $50,712 in the statement of changes in equity for the year ended 31 December 2007.

The Council was unable to provide appropriate documentations to support the asset revaluation reserve balance and prior year adjustments.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $32,044 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 35 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues Namosi: 2001 7.

The Council recorded income from rental of $62,251 and other income of $90,571 in the statement of income and expenditure for the year ended 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

1.

The Council recorded cash at bank and on hand of $82,836 in the statement of financial position as at 31 December 2001.
Included in the balance were $82,836 cash at bank and negative cash on hand of $550.

The Council was unable to provide me with bank reconciliation statements, bank audit certificates and supporting documents to the journal entries made to cash general ledger.

2.
2.

The Council recorded gross receivables - loans and advances of $908,546, provision for doubtful debts of $100,859, other assets of $21,365, payables of $176,360 and special funds of $24,475 in the statement of financial position as at 31 December 2001.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $193,014 in the statement of financial position as at 31 December 2001.
Included in the balance were land of $25,000, building of $42,234 and motor vehicle of $15,000.

The audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council recorded asset revaluation reserve of $51,637 which had been carried forward from previous years, and prior year adjustments of $341,176 in the statement of changes in equity for the year ended 31 December 2002.
The Council was unable to provide any documentations to support the asset revaluation balance and prior year adjustments.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $22,637 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2001.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2001, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2002 1.

The Council recorded cash of $50,559 which included cash at bank of $51,739 and cash on hand credit balance of $1,830 in the statement of financial position as at 31 December 2002.
The Council was unable to provide me with appropriate supporting documents for the cash at bank, cash on hand and for the journal entries made to cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 36 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 2.

The Council recorded gross receivables - loans and advances of $904,946, provision for doubtful debts of $100,859, other assets of $19,029, payables of $83,885 and special funds of $28,200 in the statement of financial position as at 31 December 2002.
The Council was unable to provide any documentations to support the above balances.

3.

The Council recorded interest bearing borrowings of $815,118 in the statement of financial position as at 31 December 2002.

Included in the balance was a loan from the iTaukei Affairs Board of $275,000.

The Council was unable to provide any documentations to support the loan balance.

4.
4.

The Council recorded property, plant and equipment at a net value of $324,145 in the statement of financial position as at 31 December 2002.

Included in the balance were land of $25,000, building of $41,098 and motor vehicle of $44,917.

In addition, the audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $37,054 in the statement of changes in equity for the year ended 31 December 2002, which had been carried The Council was unable to provide any forward from previous years.

documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $41,799 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2002.

7.

The Council recorded income of $332,046 in the statement of income and expenditure for the year ended 31 December 2002.

Included in the balance were income from investment of $47,171 and other income of $116,695.
The Council was unable to provide supporting documentations to support the above balances.

8.

The Council recorded expenditure of $176,603 in the statement of income and expenditure for the year ended 31 December 2002.

Included in the balance were personal costs of $81,892, special events of $13,324, ‘ka vakavakanua’ of $5,334, rates refund of $12,250, and youth and sports of $3,204.

The Council was unable to provide supporting documentations to support the above balances.

9.
9.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2002, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2003 1.

The Council recorded cash of $26,330 in the statement of financial position as at 31 December 2003.

Included in the balance were cash at bank of $24,500 cash on hand of $1,830.
The Council was unable to provide me with bank reconciliation statements, bank audit certificates and supporting documents to the journal entries made to cash general ledger.

2.

The Council recorded gross receivables - loans and advances of $920,959, provision for doubtful debts of $100,859, other assets of $51,142, payables of $82,401 and special funds of $31,925 in the statement of financial position as at 31 December 2003.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 37 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues The Council was unable to provide any documentations to support the above balances.

3.

The Council recorded interest bearing borrowings of $801,401 in the statement of financial position as at 31 December 2003.
Included in the balance was a loan from the iTaukei Affairs Board of $275,000.

The Council was unable to provide any documentations to support the loan balance.

4.

The Council recorded property, plant and equipment at a net value of $325,716 in the statement of financial position as at 31 December 2003.

Included in the balance were land of $25,000, building of $263,065 and motor vehicle of $33,917.
In addition, the audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $37,054 in the statement of changes in equity for the year ended 31 December 2003, which had been carried forward from previous years.

The Council was unable to provide any documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $36,110 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

7.

The Council recorded income of $231,432 in the statement of income and expenditure for the year ended 31 December 2003.
Included in the balance were government subvention for operating income of $158,155 and income from investment of $35,734.

The Council was unable to provide supporting documentations to support the above balances.

8.

The Council recorded expenses of $194,648 in the statement of income and expenditure for the year ended 31 December 2003.
Included in the balance were personal costs of $91,878, repairs and maintenance of $3,795, travel, subsistence and accommodation of $3,306, special events of $19,419, motor vehicle cost of $6,808, ‘turaga ni koro’ allowance of $4,870, occupancy of $2,519, ‘ka vakavanua’ of $4,382, youth and sports of $3,469, and rates refund of $17,226.

The Council was unable to provide supporting documentations to support the above balance.

9.
9.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2004 1.

The Council recorded cash of $80,854 which included cash at bank of $78,669 and cash on hand of $2,185 in the statement of financial position as at 31 December 2004.
The Council was unable to provide me with appropriate supporting documents for cash at bank, cash on hand and for the journal entries made to cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 38 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 2.

The Council recorded gross receivables - loans and advances of $927,710, provision for doubtful debts of $100,859, payables of $84,104 and special funds of $35,650 in the statement of financial position as at 31 December 2004.
The Council was unable to provide any documentations to support the above balances.

3.

The Council recorded interest bearing borrowings of $754,426 in the statement of financial position as at 31 December 2004.

Included in the balance was a loan from the iTaukei Affairs Board of $275,000.

The Council was unable to provide any documentations to support the loan balance.

4.
4.

The Council recorded property, plant and equipment at a net value of $307,595 in the statement of financial position as at 31 December 2004.

Included in the balance were land of $25,000, building of $256,352 and motor vehicle of $22,917.

In addition, the audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $37,054 in the statement of changes in equity for the year ended 31 December 2004, which had been carried forward from previous years.

The Council was unable to provide any documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $43,990 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

7.

The Council recorded income of $298,710 in the statement of income and expenditure for the year ended 31 December 2004.

Included in the balance was income from investment of $97,986.
The Council was unable to provide supporting documentations to support the above balance.

8.

The Council recorded expenditure of $205,999 in the statement of income and expenditure for the year ended 31 December 2004.

Included in the balance were personal costs of $86,673, youth and sports of $2,863 and rates refund of $17,790.

The Council was unable to provide supporting documentations to support the above balance.

9.
9.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2005 1.

The Council recorded cash of $68,924 which included cash at bank of $65,752 and cash on hand of $3,172 in the statement of financial position as at 31 December 2005.
The Council was unable to provide me with appropriate supporting documents for cash at bank, cash on hand and for the journal entries made to cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables - loans and advances of $938,116, provision for doubtful debts of $100,859, payables of $82,851 and special funds of $39,375 in ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 39 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues the statement of financial position as at 31 December 2005.
The Provincial Council was unable to provide any documentations to support the above balances.

3.

The Council recorded interest bearing borrowings of $665,307 in the statement of financial position as at 31 December 2005.

Included in the balance was a loan from the iTaukei Affairs Board of $275,000.

The Council was unable to provide appropriate documentations to support the loan balance.

4.
4.

The Council recorded property, plant and equipment at a net value of $293,357 in the statement of financial position as at 31 December 2005.

Included in the balance were land of $25,000, building of $249,639 and motor vehicle of $11,917.

In addition, the audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $37,054 in the statement of changes in equity for the year ended 31 December 2005, which had been carried forward from previous years.

The Council was unable to provide any documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $25,459 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

7.

The Council recorded expenditure of $195,865 in the statement of income and expenditure for the year ended 31 December 2005.

Included in the balance were personal costs of $90,115 and ‘ka vakavanua’ of $3,383.
The Council was unable to provide supporting documentations to support the above balances.

8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2005, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2006 1.
2006 1.

The Council recorded cash at bank of $33,174 in the statement of financial position as at 31 December 2006.

The Council was unable to provide me with appropriate supporting documents for cash at bank and for the journal entries made to cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables - loans and advances of $948,178, provision for doubtful debts of $100,859, payables of $77,790 and special funds of $43,100 in the statement of financial position as at 31 December 2006.

The Council was unable to provide any documentations to support the above balances.

3.

The Council recorded interest bearing borrowings of $691,964 in the statement of financial position as at 31 December 2006.
Included in the balance was a loan from the iTaukei Affairs Board of $275,000.

The Council was unable to provide any documentations to support the loan balance.

___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 40 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 4.
The Council recorded property, plant and equipment at a net value of $314,631 in the statement of financial position as at 31 December 2006.

Included in the balance were land of $25,000, building of $242,925 and motor vehicle of $40,708.

In addition, the audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $37,054 in the statement of changes in equity for the year ended 31 December 2006, which had been carried forward from previous years.

The Council was unable to provide any documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $32,139 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

7.

The Council recorded expenditure of $231,936 in the statement of income and expenditure for the year ended 31 December 2006.
Included in the balance were personal costs of $114,831, ‘ka vakavanua’ of $2,665, rates refund of $20,447 and adjustments of $46,600.

The Council was unable to provide supporting documentations to support the above balances.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.

The Council recorded cash at bank of $11,158 in the statement of financial position as at 31 December 2007.
The Council was unable to provide me with appropriate supporting documents for cash at bank and for the journal entries made to cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables - loans and advances of $956,994, provision for doubtful debts of $100,859, payables of $69,424 and special funds of $45,025 in the statement of financial position as at 31 December 2007.

The Council was unable to provide any documentations to support the above balances.

3.

The Council recorded interest bearing borrowings of $680,100 in the statement of financial position as at 31 December 2007.
Included in the balance was a loan from the iTaukei Affairs Board of $275,000.

The Council was unable to provide any documentations to support the loan balance.

4.

The Council recorded property, plant and equipment at a net value of $297,721 in the statement of financial position as at 31 December 2007.

Included in the balance were land of $25,000, building of $236,212 and motor vehicle of $31,314.
In addition, the audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $37,054 in the statement of changes in equity for the year ended 31 December 2007, which had been carried ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 41 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues Ra: 2000 forward from previous years.

documentations to support the asset revaluation balance.
The Council was unable to provide any 6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $42,170 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

1.

The Council recorded cash at bank and on hand of $ 3,967 in the Statement of Financial Position as at 31 December 2000.
The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – savings account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $50,111, provision for doubtful debts of $16,526, other assets of $18,092, current liabilities of $25,839 and special funds of $6,389 in the Statement of Financial Position as at 31 December 2000.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $387,777 as at 31 December 2000.
Included in the balance were land of $22,400, building of $268,121 and motor vehicle of $56,000 for which I was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council recorded an asset revaluation reserve of $209,274, which had been carried forward from previous years, and prior year adjustment of $1,968 in the statement of changes in equity for the year ended 31 December 2000.
There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

The Council was unable to provide appropriate documentations to support the above balances.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $22,450 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2000.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2000, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 42 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council 2001 Qualification Issues 1.

The Council recorded cash at bank and on hand of $ 88,677 in the statement of financial position as at 31 December 2001.
The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – savings account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $55,616, provision for doubtful debts of $16,526, other assets of $47,154, current liabilities of $127,835 and special funds of $6,389 in the statement of financial position as at 31 December 2001.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $420,705 in the statement of financial position as at 31 December 2001.
Included in the balance were land of $22,400, building of $263,221 and motor vehicle of $95,166 for which the audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2001, which had been carried forward from previous years.
There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $12,407 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2001.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2001, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2002 1.

The Council recorded cash at bank and on hand of $ 30,082 in the Statement of Financial Position as at 31 December 2002.
The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – savings account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $41,777, provision for doubtful debts of $16,526, other assets of $28,301, current liabilities of $20,582 and special funds of $6,389 in the statement of financial position as at 31 December 2002.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $437,775 in the statement of financial position as at 31 December 2002.
Included in the balance were land of $22,400, building of $314,071 and motor vehicle of $7,741 for which the audit was not provided with the title deeds for land and building and the registration ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 43 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues details of the motor vehicle to confirm the existence and completeness of the balances.
4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2002, which had been carried forward from previous years.

There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $4,973 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2002.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2002, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2003 1.

The Council recorded negative cash at bank and on hand of $2,079 in the statement of financial position as at 31 December 2003.
The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $43,095, provision for doubtful debts of $16,526, other assets of $18,092 current liabilities of $23,462 and special funds of $6,389 in the statement of financial position as at 31 December 2003.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $403,469 as at 31 December 2003.
Included in the balance were land of $22,400, building of $308,474 and motor vehicle of $45,167 for which the audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2003, which had been carried forward from previous years.
There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $38,742 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

6.
The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 44 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council 2004 Qualification Issues departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
1.

The Council recorded cash at bank and on hand of $ 6,113 in the statement of financial position as at 31 December 2004.

The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $46,981, provision for doubtful debts of $16,526, other assets of $23,792 current liabilities of $41,582 and special funds of $6,389 in the statement of financial position as at 31 December 2004.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $367,646 as at 31 December 2004.
Included in the balance were land of $22,400, building of $302,877 and motor vehicle of $20,167 for which the audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2004, which had been carried forward from previous years.
There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $15,736 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2005 1.

The Council recorded cash at bank and on hand of $ 119,097 in the statement of financial position as at 31 December 2005.
The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – savings account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $49,019, provision for doubtful debts of $16,526, other assets of $34,298 current liabilities of $70,170 and special funds of $6,389 in the statement of financial position as at 31 December 2005.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $353,715 as at 31 December 2005.
Included in the balance were land of $22,400, building of $297,280 and motor vehicle of $9,167 for which the audit was not provided with the title deeds ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 45 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.
4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2005, which had been carried forward from previous years.

There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $26,778 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2005, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2006 1.

The Council recorded cash at bank and on hand of $ 77,466 in the Statement of Financial Position as at 31 December 2006.
The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – savings account, however did not reconcile to the balance reflected in the General Ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $49,823, provision for doubtful debts of $16,526, other assets of $22,166 current liabilities of $78,427 and special funds of $6,389 in the Statement of Financial Position as at 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $375,022 as at 31 December 2006.
Included in the balance were land of $22,400, building of $291,684 and motor vehicle of $40,656 for which the audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2006, which had been carried forward from previous years.
There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $14,644 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

6.
The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 46 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council 2007 Rewa: 2006 Qualification Issues departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
1.

The Council recorded cash at bank and on hand of $32,131 in the statement of financial position as at 31 December 2007.

The Council was unable to provide me with bank reconciliation statements and supporting documentations to the journal entries made in the cash General Ledger.

A bank audit confirmation was obtained for the cash at bank – savings account, however did not reconcile to the balance reflected in the General ledger and the financial statements.

2.
2.

The Council recorded loans and advances of $51,632, provision for doubtful debts of $16,526, other assets of $26,485, current liabilities of $79,344 and special funds of $6,389 in the statement of financial position as at 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $353,539 as at 31 December 2007.
Included in the balance were land of $22,400, building of $286,087 and motor vehicle of $30,699 for which the audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.

The Council had recorded an asset revaluation reserve of $209,274 in the statement of changes in equity for the year ended 31 December 2007, which had been carried forward from previous years.
There was an unreconciled variance of $28,829 between the valuation report and the amount reflected in the financial statement.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $13,984 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

1.

The Council recorded cash at bank and on hand of $177,555 in the statement of financial position as at 31 December 2006.
The Council was unable to provide me with documentations to support the cash at bank and on hand balance of $177,555.

2.

The Council recorded loans and advances of $144,915, provision for doubtful debt of $41,444, other assets of $34,676, current liabilities of $154,929 and special funds of $80,000 in the statement of financial position as at 31 December 2006.

The Council was unable to provide any documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $172,949 in the statement of financial position as at 31 December 2006.

Included in the balance were building of $113,167, plant and machinery of $2,360 and motor vehicle of $34,800.

The audit was not provided with the title deeds for building and the registration details of the plant and machinery and motor vehicle to confirm the existence and completeness of the balances.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 47 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 4.

The Council recorded an asset revaluation reserve of $140,936 in the statement of changes in equity for the year ended 31 December 2006, which had been carried forward from previous years.
The Council was unable to provide any documentations to support the asset revaluation balance.

5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $69,921 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

6.

The Council recorded income from investment of $77,856 in the statement of income and expenditure for the year ended 31 December 2006.

The Council was unable to provide any documentations to support the above balances.

7.
7.

The Council did not prepare and present a Statement of Cash Flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.

The Council recorded cash at bank and on hand of $146,486 in the statement of financial position as at 31 December 2007.
The Council was unable to provide me with documentations to support the cash at bank and on hand balance of $146,486.

2.

The Council recorded loans and advances of $146,772, provision for doubtful debt of $41,444, other assets of $108,517, current liabilities of $123,363 and special funds of $80,000 in the statement of financial position as at 31 December 2007.

The Council was unable to provide any documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $156,344 in the statement of financial position as at 31 December 2007.

Included in the balance were building of $109,667, plant and machinery of $3,560 and motor vehicle of $23,200.

The audit was not provided with the title deeds for building and the registration details of the plant and machinery and motor vehicle to confirm the existence and completeness of the balances.

4.
4.

The Council recorded an asset revaluation reserve of $140,936 in the statement of changes in equity for the year ended 31 December 2007, which had been carried forward from previous years.

The Council was unable to provide any documentations to support the asset revaluation balance.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $32,935 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

6.
6.

The Council did not prepare and present a Statement of Cash Flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 48 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Serua: 2006 Qualification Issues 1.

The Council recorded cash at bank and on hand of $7,823 in the statement of financial position as at 31 December 2006.

Included in the balance were $15,094 for the bank current account, $112 under bank savings account, and overdrawn cash on hand of $7,383.
There was an unreconciled variance of $24,703 between the bank reconciliation statement for the current account and the amount reflected in the financial statements.

In addition, the Council was unable to provide me with documentations to support the $91 and $(7,383) under the savings and cash on hand accounts.

2.
2.

The Council recorded loans and advances of $21,185, provision for doubtful debt of $8,334, other assets of $460,643, current liabilities of $93,608 and special funds of $100,000 in the statement of financial position as at 31 December 2006.

The Council was unable to provide any documentations to support the above balances.

3.

The Council recorded investments of $883,507 in the statement of financial position as at 31 December 2006.
Included in the balance were investments with Unit Trust of Fiji and Serua Provincial Investment Company Limited for $17,258 and $762,665 respectively.

The audit was not provided with investment confirmations from the companies which was necessary to confirm the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $102,271 in the Statement of Financial Position as at 31 December 2006.
Included in the balance were land of $45,000, building of $4,850 and motor vehicle of $34,800.

Title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances were not provided for audit.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $6,823 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.

The Council recorded cash at bank and on hand of $64,994 in the statement of financial position as at 31 December 2007.
The Council was unable to provide me with documentations to support the cash at bank and on hand balance of $64,994.

2.

The Council recorded loans and advances of $23,366, provision for doubtful debt of $8,334, other assets of $131,140, current liabilities of $89,961 and special funds of $100,000 in the statement of financial position as at 31 December 2007.

The Council was unable to provide any documentations to support the above balances.

3.
3.

The Council recorded investments of $946,131 in the statement of financial position as at 31 December 2007.

Included in the balance were investments with Unit Trust of Fiji and Serua Provincial Investment Company Limited for $17,258 and $825,289 respectively.
The audit was not provided with investment confirmations from the ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 49 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues Cakaudrove: 2002 companies which was necessary to confirm the existence and completeness of the balances.

4.
4.

The Council recorded property, plant and equipment at a net value of $87,122 in the Statement of Financial Position as at 31 December 2007.

Included in the balance were land of $45,000, building of $4,700 and motor vehicle of $23,200.

I was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $13,782 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

1.
1.

The Council recorded cash of $147,907 which included cash at bank of $159,021 and a negative cash on hand balance of $11,114 in the statement of financial position as at 31 December 2002.

The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded other assets of $39,550, current liabilities of $238,657, deferred income of $47,592 and special funds of $9,182 in the statement of financial position as at 31 December 2002.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $858,555 which included land of $277,646, building of $506,154 and motor vehicle of $54,050 in the statement of financial position as at 31 December 2002.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

4.
4.

The Council recorded previous year adjustments of $340,477 in the statement of changes in equity for the year ended 31 December 2002.

The Council was unable to provide appropriate documentations to support the journal entries for prior year adjustments.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $36,750 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2002.

___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 50 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 6.
The Council recorded gain on sale of motor vehicle of $7,080 in the statement of income and expenditure for the year ended 31 December 2002.

The Council was unable to provide appropriate documentations to support the balance.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2002, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2003 1.
2003 1.

The Council recorded cash of $129,122 which included cash at bank of $141,733 and a negative cash on hand balance of $12,611 in the statement of financial position as at 31 December 2003.

The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables – loans and advances of $56,155, provision for doubtful debts of $28,033, other assets of $65,904, current liabilities of $233,525, deferred income of $47,592 and special funds of $112,027 in the statement of financial position as at 31 December 2003.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $833,679 which included land of $277,646, buildings of $493,242 and motor vehicle of $37,950 in the statement of financial position as at 31 December 2007.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

4.
4.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $21,692 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

5.

The Council recorded other income of $722 and total expenditure of $342,523 in the statement of income and expenditure for the year ended 31 December 2003.
The Council was unable to provide appropriate documentations to support the above balances.

6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2004 1.
2004 1.

The Council recorded cash of $188,771 which included cash at bank of $196,858 and a negative cash on hand balance of $8,087 in the statement of financial position as at 31 December 2004.

The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
The Council recorded gross receivables – loans and advances of $74,157, provision for doubtful debts of $28,033, other assets of $97,258, current liabilities of $238,661, ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 51 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues deferred income of $47,592 and special funds of $116,932 in the statement of financial position as at 31 December 2004.
The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded property, plant and equipment at a net value of $557,641 which included land of $33,585, buildings of $477,931 and motor vehicle of $24,917 in the statement of financial position as at 31 December 2004.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

4.
4.

The Council recorded accumulated funds of $275,987 in the statement of changes in equity for the year ended 31 December 2004.

There is an unreconciled variance of $245,927 between the closing balance from the previous year and the opening balance as at 1 January 2004.

Due to the unavailability of appropriate documentations, the audit was unable to verify the completeness and accuracy of the accumulated fund balance.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $23,557 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

6.
The Council recorded other income of $2,606 and expenses from travelling, subsistence and accommodation of $20,235, occupancy of $2,320, insurance of $1,539, motor vehicle cost of $9,108, repairs and maintenance of $11,121, administration cost of $16,021, special events of $29,766, ‘turaga ni koro’ allowance of $79,800, ‘mata ni tikina’ allowance of $4,559, depreciation of $30,128, ‘soqosoqo vakamarama’ of $20, interest and financial cost of $15,790, ‘ka vakavanua’ of $3,534 and youth and sports of $300 in the statement of income and expenditure for the year ended 31 December 2004.
The Council was unable to provide appropriate documentations to support the above balances.

7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2005 1.
2005 1.

The Council recorded cash of $272,374 which included cash at bank of $309,961 and a negative cash on hand balance of $37,587 in the statement of financial position as at 31 December 2005.

The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables – loans and advances of $80,638, provision for doubtful debts of $28,033, other assets of $162,952, current liabilities of $250,219, deferred income of $47,592 and special funds of $122,053 in the statement of financial position as at 31 December 2005.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $529,047 which included land of $33,232, buildings of $465,019 and motor vehicle of $13,417 in the ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 52 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues statement of financial position as at 31 December 2006.
The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

4.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $95,169 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

5.
5.

The Council recorded expenses from occupancy of $5,395, motor vehicle cost of $14,625, repairs and maintenance of $13,894, administration cost of $33,040, interest and financial cost of $13,443, ‘ka vakavanua’ of $ 4,971 and scholarship of $20,000 in the statement of income and expenditure for the year ended 31 December 2005.

The Council was unable to provide appropriate documentations to support the above balances.

6.
6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2005, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2006 1.
2006 1.

The Council recorded cash of $232,803 which included cash at bank of $270,667 and a negative cash on hand balance of $37,864 in the statement of financial position as at 31 December 2006.

The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables – loans and advances of $84,013, provision for doubtful debts of $28,033, other assets of $233,337, current liabilities of $155,535, deferred income of $47,592 and special funds of $127,896 in the statement of financial position as at 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $546,570 which included land of $32,878, building of $452,106 and motor vehicle of $41,480 in the statement of financial position as at 31 December 2006.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

4.
4.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $34,971 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

5.

The Council recorded other income of $10,938, salary, wages allowances and related payments of $187,496 and development funds of $35,714 in the statement of income and expenditure for the year ended 31 December 2006.
The Council was unable to provide appropriate documentations to support the above balances.

___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 53 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 6.
The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.

The Council recorded cash of $234,938 which included cash at bank of $231,856 and cash on hand balance of $3,082 in the statement of financial position as at 31 December 2007.
The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables – loans and advances of $83,000, provision for doubtful debts of $28,033, other assets of $673,723, current liabilities of $133,299, deferred income of $47,592 and special funds of $133,574 in the statement of financial position as at 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $614,296 which included land of $35,524, building of $479,429 and motor vehicle of $78,934 in the statement of financial position as at 31 December 2007.

The audit was not provided with the title deeds for land and building and registration details of motor vehicle to confirm the existence and completeness of the balances.

4.
4.

The Council recorded previous year adjustments of $27,522 in the statement of changes in equity for the year ended 31 December 2007.

The Council was unable to provide appropriate documentations to support the journal entries for prior year adjustments.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $83,834 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

6.
6.

The Council recorded income from investment of $152,027, other income of $7,056, salary, wages and related payments of $150,416 and development funds of $40,176 in the statement of income and expenditure for the year ended 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

Kadavu: 2002 1.

The Council recorded cash of $58,285 which included cash at bank of $56,090 and cash on hand of $2,195 in the statement of financial position as at 31 December 2002.
There was an unreconciled variance of $4,213 between the bank reconciliation statement and the amount reflected in the financial statements.

In addition, the ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 54 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues Council was unable to provide with supporting documentation to support the cash on hand balance of $2,195.

2.
2.

The Council recorded gross receivables - loans and advances of $40,919, provision for doubtful debts of $47,556, other assets of $2,660, current liabilities of $54,957, deferred income of $13,476 and special funds of $23,402 in the statement of financial position as at 31 December 2002.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $372,663 in the statement of financial position as at 31 December 2002.
Included in the balance were investments with Kadavu Shipping Company and Kadavu Development Company for $150,000 and $64,000 respectively.

The audit was not provided with investment confirmation from the companies which were necessary to confirm the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $361,906 which included building of $271,934 and motor vehicle of $44,083 in the statement of financial Position as at 31 December 2002.
The audit was not provided with the title deeds for building and motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $187,380 in the statement of changes in equity for the year ended 31 December 2002, which had been carried forward from previous years.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $52,259 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2002.

7.

The Council recorded income from government subvention for operating expenses of $222,646 and other income of $2,968 in the Statement of Income and Expenditure for the year ended 31 December 2002.
The Council was unable to provide appropriate documentations to support the above balances.

8.

The Council recorded total expenditure of $345,446 in the statement of income and expenditure for the year ended 31 December 2002.

The Council was unable to provide various other records such as the supporting documentations for journal entries, some payment vouchers and documents to support the payments made during the year, documents to support the current salary rate and pay run reports.
The missing records have provided limitation to the scope of my audit.

9.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2002, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2003 1.
2003 1.

The Council recorded cash of $200,369 which included cash at bank of $200,054 and cash on hand of $315 in the statement of financial position as at 31 December 2003.
There was an unreconciled variance of $55,456 between the bank reconciliation ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 55 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues statement and the amount reflected in the financial statements.

In addition, the Council was unable to provide me with supporting documentation to support the cash on hand balance of $315.

2.
2.

The Council recorded gross receivables - loans and advances of $40,886, provision for doubtful debts of $54,293, other assets of $16,003, current liabilities of $137,288, deferred income of $13,476 and special funds of $25,286 in the statement of financial position as at 31 December 2003.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $380,675 in the statement of financial position as at 31 December 2003.
Included in the balance were investments with Kadavu Shipping Company and Kadavu Development Company for $150,000 and $64,000 respectively.

I was not provided with investment confirmation from the companies which were necessary to confirm the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $351,679 which included building of $267,036 and motor vehicle of $32,583 in the statement of financial Position as at 31 December 2003.
The audit was not provided with the title deeds for building and motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $187,380 in the statement of changes in equity for the year ended 31 December 2003, which had been carried forward from previous years.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $33,782 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

7.

The Council recorded income from government subvention for operating expenses of $250,580 and other income of $1,726 in the Statement of Income and Expenditure for the year ended 31 December 2003.
The Council was unable to provide appropriate documentations to support the above balances.

8.

The Council recorded total expenditure of $290,443 in the statement of income and expenditure for the year ended 31 December 2003.

The Council was unable to provide various other records such as the supporting documentations for journal entries, some payment vouchers and documents to support the payments made during the year, documents to support the current salary rate and pay run reports.
The missing records have provided limitation to the scope of my audit.

9.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2004 1.
2004 1.

The Council recorded cash of $135,834 which included cash at bank of $135,348 and cash on hand of $486 in the statement of financial position as at 31 December 2004.
There was an unreconciled variance of $57,538 between the bank reconciliation ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 56 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues statement and the amount reflected in the financial statements.

In addition, the Council was unable to provide me with supporting documentation to support the cash on hand balance of $486.

2.
2.

The Council recorded gross receivables - loans and advances of $37,010, provision for doubtful debts of $45,978, other assets of $2,660, current liabilities of $49,146, deferred income of $13,476 and special funds of $25,286 in the statement of financial position as at 31 December 2004.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $383,334 in the statement of financial position as at 31 December 2004.
Included in the balance were investments with Kadavu Shipping Company and Kadavu Development Company for $150,000 and $64,000 respectively.

The audit was not provided with investment confirmation from the companies which were necessary to confirm the existence and completeness of the balances.

4.

The Council recorded property, plant and equipment at a net value of $333,273 which included building of $262,137 and motor vehicle of $21,083 in the statement of financial position as at 31 December 2004.
I was not provided with the title deeds for building and motor vehicle to confirm the existence and completeness of the balances.

5.

The Council recorded an asset revaluation reserve of $187,380 in the statement of changes in equity for the year ended 31 December 2004, which had been carried forward from previous years.

The Council was unable to provide appropriate documentation to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $48,711 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

7.

The Council recorded personal cost - salaries of $124,563 in the statement of income and expenditure for the year ended 31 December 2004.

The Council was unable to provide appropriate documentation to support the current salary rate.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2005 1.

The Council recorded cash of $153,048 which included cash at bank of $152,222 and cash on hand of $826 in the statement of financial position as at 31 December 2005.
There was an unreconciled variance of $53,442 between the bank reconciliation statement and the amount reflected in the financial statements.

In addition, the Council was unable to provide me with supporting documentation to support the cash on hand balance of $826.

2.
The Council recorded gross receivables - loans and advances of $38,671, provision for doubtful debts of $64,391, other assets of $2,660, current liabilities of $58,628, deferred income of $13,476 and special funds of $26,701 in the statement of financial ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 57 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues position as at 31 December 2005.
The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $387,225 in the statement of financial position as at 31 December 2005.

Included in the balance were investments with Kadavu Shipping Company and Kadavu Development Company for $150,000 and $64,000 respectively.

The audit was not provided with investment confirmation from the companies which were necessary to confirm the existence and completeness of the balances.

4.
4.

The Council recorded property, plant and equipment at a net value of $310,107 which included building of $257,239, and motor vehicle of $9,583 in the statement of financial position as at 31 December 2005.

The audit was not provided with the title deeds for building and motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $187,380 which had been carried forward from previous years and prior year adjustment of $3,224 in the statement of changes in equity for the year ended 31 December 2005,.

The Council was unable to provide appropriate documentations to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $58,386 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

7.

The Council recorded personal cost - salaries of $126,338 in the statement of income and expenditure for the year ended 31 December 2005.

The Council was unable to provide documents to support the current salary rate.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2005, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2006 1.

The Council recorded cash of $186,624 which included cash at bank of $193,422 and a negative cash on hand of $6,798 in the statement of financial position as at 31 December 2006.
There was an unreconciled variance of $71,627 between the bank reconciliation statement and the amount reflected in the financial statements.

In addition, the Council was unable to provide me with supporting documentation to support the negative cash on hand balance of $6,798.

2.
2.

The Council recorded gross receivables - loans and advances of $54,208, provision for doubtful debts of $64,391, current liabilities of $88,593, deferred income of $13,476 and special funds of $29,018 in the statement of financial position as at 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

3.

The Council recorded investments of $391,812 in the statement of financial position as at 31 December 2006.
Included in the balance were investments with Kadavu Shipping Company and Kadavu Development Company for $150,000 and $64,000 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 58 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues respectively.
The audit was not provided with investment confirmation from the companies which were necessary to confirm the existence and completeness of the balances 4.

The Council recorded property, plant and equipment at a net value of $294,746 which included building of $253,340 in the statement of financial position as at 31 December 2006.

The audit was not provided with the title deeds for the building to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $187,380 which had been carried forward from previous years in the statement of changes in equity for the year ended 31 December 2006.

The Council was unable to provide appropriate documentation to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $100,956 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

7.

The Council recorded personal cost - salaries of $146,549 in the statement of income and expenditure for the year ended 31 December 2006.

The Council was unable to provide documents to support the current salary rate.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.

The Council recorded cash of $145,724 which included cash at bank of $153,222 and a negative cash on hand of $7,498 in the statement of financial position as at 31 December 2007.
The Council was unable to provide me with appropriate supporting documents for cash at bank and cash on hand.

A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

2.
2.

The Council recorded gross receivables - loans and advances of $50,953, provision for doubtful debts of $64,391, subvention claimed not received of $87,748, current liabilities of $153,291, deferred income of $13,476 and special funds of $29,844 in the statement of financial position as at 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded investments of $395,093 in the statement of financial position as at 31 December 2007.

Included in the balance were investments with Kadavu Shipping Company and Kadavu Development Company for $150,000 and $64,000 respectively.

The audit was not provided with investment confirmation from the companies which were necessary to confirm the existence and completeness of the balances.

4.
4.

The Council recorded property, plant and equipment at a net value of $327,248 which included building of $247,441 and motor vehicle of $43,775 in the statement of financial position as at 31 December 2007.
The audit was not provided with the title ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 59 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues Nadroga/Navosa: 2002 deeds for building and motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council recorded an asset revaluation reserve of $187,380 in the statement of changes in equity for the year ended 31 December 2007, which had been carried forward from previous years.

The Council was unable to provide appropriate documentation to support the asset revaluation balance.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Councils for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $50,620 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

7.

The Council recorded personal cost - salaries of $133,816 in the statement of income and expenditure for the year ended 31 December 2007.

The Council was unable to provide documents to support the current salary rate.

8.
8.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

7.

The Council recorded cash at bank of $4,930 in the statement of financial position as at 31 December 2002.
The Council was unable to provide me with bank reconciliation statements and supporting documents to entries made to the General Ledger.

8.

The Council recorded gross receivables - loans and advances of $97,420, provision for doubtful debts of $15,811, other assets of $215,644, current liabilities of $116,510 in the statement of financial position as at 31 December 2002.

The Council was unable to provide appropriate documentations to support the above balances.

9.
9.

The Council recorded an asset revaluation reserve of $108,664 which had been carried forward from previous years, deferred income of $4,085 and prior year adjustment of $87,863 in the statement of changes in equity for the year ended 31 December 2002.

The Council was unable to provide any documentations to support the above balance.

10.
10.

The Council recorded property, plant and equipment at a net value of $247,875 which included freehold land of $12,259, building of $184,367 and motor vehicle of $42,167 in the statement of financial position as at 31 December 2002.

The audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

11.
11.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2002, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

12.
12.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 60 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $66,238 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2002.

13.

The Council recorded income of $322,229 which included income from government subvention for operating expenses of $238,328 and other income of $17,033 in the statement of income and expenditure for the year ended 31 December 2002.
The Council was unable to provide me with appropriate documentations to support the above balances.

14.

The Council recorded expenditure of $325,368 which included salary, wages allowances and related payments of $161,025 in the statement of income and expenditure for the year ended 2002.

The Council was unable to provide appropriate documentations to support the above balances.

2003 1.

The Council recorded cash at bank of $80,268 in the statement of financial position as at 31 December 2003.
The Council was unable to provide me with bank reconciliation statements and supporting documents to entries made to the General Ledger.

2.

The Council recorded gross receivables - loans and advances of $92,325, provision for doubtful debts of $15,811, other assets of $247,242, current liabilities of $195,443 in the statement of financial position as at 31 December 2003.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded an asset revaluation reserve of $108,664 which had been carried forward from previous years and prior year adjustment of $3,768 in the statement of changes in equity for the year ended 31 December 2003.

The Council was unable to provide any documentations to support the above balance.

4.
4.

The Council recorded property, plant and equipment at a net value of $232,421 which included freehold land of $12,259, building of $178,467 and motor vehicle of $31,167 in the statement of financial position as at 31 December 2003.

The audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2003, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $70,105 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2003.

7.

The Council recorded income of $320,310 which included income from government subvention for operating expenses of $249,460 in the statement of income and expenditure for the year ended 31 December 2003.
The Council was unable to provide me with appropriate documentations to support the above balances.

___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 61 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 8.
The Council recorded expenditure of $331,125 which included salary, wages allowances and related payments of $170,932 in the statement of income and expenditure for the year ended 2003.

The Council was unable to provide appropriate documentations to support the above balances.

2004 1.

The Council recorded cash at bank of $10,957 in the statement of financial position as at 31 December 2004.
The Council was unable to provide me with bank reconciliation statements and supporting documents to entries made to the General Ledger.

2.

The Council recorded gross receivables - loans and advances of $94,713, provision for doubtful debts of $15,811, other assets of $243,638, current liabilities of $133,083 in the statement of financial position as at 31 December 2004.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded an asset revaluation reserve of $108,664 which had been carried forward from previous years, deferred income of $4,294 and prior year adjustment of $6,597 in the statement of changes in equity for the year ended 31 December 2004.

The Council was unable to provide any documentations to support the above balance.

4.
4.

The Council recorded property, plant and equipment at a net value of $221,489 which included freehold land of $12,259, building of $178,567 and motor vehicle of $20,167 in the statement of financial position as at 31 December 2004.

The audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

5.
5.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2004, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

6.
6.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $76,443 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2004.

7.

The Council recorded income of $431,311 which included income from government subvention for operating expenses of $249,460 and other income of $49,057 in the statement of income and expenditure for the year ended 31 December 2004.
The Council was unable to provide me with appropriate documentations to support the above balances.

8.

The Council recorded expenditure of $393,870 which included salary, wages allowances and related payments of $163,077 in the statement of income and expenditure for the year ended 2004.

The Council was unable to provide appropriate documentations to support the above balances.

2005 1.
2005 1.

The Council recorded a negative cash balance of $16,891, which included a negative cash at bank – current account balance of $18,228 and cash on hand of $1,397 in the statement of financial position as at 31 December 2005.
There was an unreconciled variance of $18,394 between the bank reconciliation statement for the current ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 62 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues account and the amount reflected in the financial statements.
A bank audit confirmation was obtained for the cash at bank – current account, however did not reconcile to the balance in the General Ledger and the financial statements.

In addition, the Council was also unable to provide me appropriate documentations to support the cash on hand balance of $1,397.

2.
2.

The Council recorded gross receivables - loans and advances of $99,920, provision for doubtful debts of $15,811, other assets of $232,218, current liabilities of $125,126 in the statement of financial position as at 31 December 2005.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $209,931 which included freehold land of $12,259, building of $166,667 and motor vehicle of $9,167 in the statement of financial position as at 31 December 2005.

The audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.
4.

The Council recorded an asset revaluation reserve of $108,664 which had been carried forward from previous years and prior year adjustment of $1,680 in the statement of changes in equity for the year ended 31 December 2005.

The Council was unable to provide any documentations to support the balance.

5.
5.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $73,814 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2005.

6.
6.

The Council recorded other income of $100,399 which included dividend from Fijian Holdings Limited of $71,428 and dividend from Yasana Holdings Limited of $28,754 in the statement of income and expenditure for the year ended 31 December 2005.

The Council was unable to provide me with appropriate documentations to support the dividend income.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

8.
8.

The Council was unable to provide various other records such as the payment vouchers, supporting documentations for journal entries taken up in the general ledger and documents to support the current salary rate and pay-run reports.

The missing records have provided limitation to the scope of my audit.

2006 1.
2006 1.

The Council recorded gross receivables - loans and advances of $101,739, provision for doubtful debts of $15,811, other assets of $205,436, current liabilities of $90,063 in the statement of financial position as at 31 December 2006.

The Council was unable to provide appropriate documentations to support the above balances.

2.
2.

The Council recorded property, plant and equipment at a net value of $193,227 which included freehold land of $12,259 and building of $160,767 in the statement of financial position as at 31 December 2006.
The audit was not provided with the title ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 63 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

3.
3.

The Council recorded an asset revaluation reserve of $108,664 which had been carried forward from previous years and prior year adjustment of $3,194 in the statement of changes in equity for the year ended 31 December 2006.

The Council was unable to provide any documentations to support the balance.

4.
4.

Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $67,851 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2006.

5.

The Council was unable to provide various other records such as the payment vouchers, supporting documentations for journal entries taken up in the general ledger and documents to support the current salary rate and pay-run reports.
The missing records have provided limitation to the scope of my audit.

6.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2006, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.

2007 1.
2007 1.

The Council recorded cash at bank of $29,759 which included cash at bank – current account of $29,659 and cash on hand of $100 in the statement of financial position as at 31 December 2007.

There was an unreconciled variance of $3,273 between the bank reconciliation statement and the financial statement for the current account.

In addition, the Council was unable to provide me with appropriate documentations to support the cash on hand balance.

2.
2.

The Council recorded gross receivables - loans and advances of $109,834, provision for doubtful debts of $15,811, other assets of $205,436, current liabilities of $74,133 in the statement of financial position as at 31 December 2007.

The Council was unable to provide appropriate documentations to support the above balances.

3.
3.

The Council recorded property, plant and equipment at a net value of $184,498 which included freehold land of $12,259 and building of $154,867 in the statement of financial position as at 31 December 2007.

The audit was not provided with the title deeds for land and building and the registration details of the motor vehicle to confirm the existence and completeness of the balances.

4.
4.

The Council recorded investment of $121,676 which included a balance of $35,000 with Nadroga/Navosa Festival account in the statement of financial position as at 31 December 2007.

The Council was unable to provide the investment confirmation which was necessary to confirm the existence and completeness of the balance.

5.
5.

The Council recorded an asset revaluation reserve of $108,664 which had been carried forward from previous years in the statement of changes in equity for the year ended 31 December 2007.

The Council was unable to provide any documentations to support the balance.

___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 64 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Provincial Council Qualification Issues 6.
Due to the nature of transactions inherent in the collection of provincial rates, it is not practicable for my examination to include audit procedures to extend beyond the amounts recorded in the official receipts issued by the Council for provincial rates.
Accordingly, the audit was unable to determine whether income from provincial rates of $281,084 is fairly stated in the financial statements and whether any adjustment might have been necessary in respect of the provincial rates income for the year ended 31 December 2007.

7.
7.

The Council did not prepare and present a statement of cash flow as a component of the financial statements for the year ended 31 December 2007, which is a departure from the requirement of the Fiji Accounting Standard 1 – Presentation of Financial Statements and Fiji Accounting Standards 7 – Cash Flows Statements.
___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 65 APPENDIX 4: ABRIDGED FINANCIAL STATEMENTS 28 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix C: Abridged Financial Statements Ba Provincial Council Abridged Statement of Financial Performance Govt subvention for operating expenses Provincial rates Income from investment Other income TOTAL INCOME Personal cost – salaries Administration Motor vehicle insurance & fuel Special events Turaga ni Koro allowance Mata ni Tikina allowance Other expenses Total Expenses covered by subvention Personal cost Administration Depreciation expenses Education General education/interest on loans Motor vehicle insurance & fuel Rates refund Special events Other expenses Total Expenses not covered by subvention TOTAL EXPENDITURE Net profit/(deficit) 2001 $ 291,073 257,553 - 6,308 554,934 171,023 21,471 12,336 21,931 25,690 - 11,572 264,023 55,997 11,729 27,486 - 37,855 19,532 40,958 17,800 88,662 300,019 2002 $ 306,227 232,325 47,724 36,247 622,523 181,681 22,395 18,640 41,191 25,680 - 15,649 305,236 46,464 3,390 48,154 48,853 9,002 1,354 2,000 4,013 114,002 277,232 2003 $ 291,119 279,421 25,000 6,337 601,877 184,426 22,676 23,051 44,503 25,650 - 16,647 316,953 53,848 3,691 52,964 55,355 24,004 1,205 44,350 4,685 76,569 316,671 2004 $ 2005 $ $ 330,875 260,435 89,176 21,426 701,912 179,009 21,306 12,682 21,176 66,000 31,428 10,797 342,398 81,004 3,848 47,187 31,783 12,734 2,521 14,354 34,585 173,990 402,006 2007 $ 321,412 271,003 54,890 8,519 655,824 156,001 25,070 7,860 47,019 64,200 3,960 21,328 325,438 76,701 7,293 59,258 41,260 15,658 7,793 48,935
 29,346 68,120 354,364 564,042 (9,108) 585,468 37,055 633,624 (31,747) 685,835 663,256 41,183 206,758 744,404 (42,492) 679,802 (23,648) Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investment TOTAL ASSETS Other creditors Loans Special funds Deferred income TOTAL LIABILITIES NET ASSETS Accumulated funds Assets revaluation reserve TOTAL FUNDS EMPLOYED 2001 $ 14,946 285,384 686,256 2002 $ (4,129) 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ (28,215) 202,792 180,266 240,042 182,136 222,131 681,570 201,902 632,504 191,966 589,225 202,487 603,825 157,851 658,620 176,147 611,027 1,987,644 2,974,230 1,987,644 1,987,644 2,887,216 2,793,835 181,486 - 373,611 - 555,097 2,419,133 5,631 - 427,242 2,320 435,193 28,265 363,736 - 4,737 396,738 2,452,023 2,397,097 1,987,644 1,987,644 2,971,627 2,974,222 3,044,157 2,956,954 1,987,644 1,987,644 50,999 192,915 135,436 4,204 383,554 (62,864) 299,518 133,476 2,607 372,737 2,588,073 2,629,556 2,602,295 2,584,217 47,183 189,114 104,697 3,672 344,666 (23,767) 357,793 104,697 3,139 441,862 1,922,507 496,626 1,955,397 496,626 1,900,471 496,626 2,091,447 496,626 2,132,930 496,626 2,105,669 496,626 2,087,591 496,626 2,419,133 2,452,023 2,397,097 2,588,073 2,629,556 2,602,295 2,584,217 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 66 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Bua Provincial Council Abridged Statement of Financial Performance 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ Government Subvention for operating expenses 199,681 215,647 219,434 Provincial Rates Income from Investment Other Income Total Income 31,385 35,714 62,126 32,749 82,311 89,072 28,382 98,848 125,723 241,270 31,125 138,536 57,957 238,965 32,044 19,176 155,509 328,906 419,779 472,387 468,888 445,694 Personal Cost Travelling and Subsistence Fuel, repair and maintenance motor vehicle Administration Special Events Turaga
 ni Koro allowance Mata ni Tikina allowance Other Expenses 142,452 141,793 140,930 158,250 133,824 6,140 4,268 - 6,810 12,960 - 15,060 4,548 6,732 9,651 6,683 32,400 3,618 12,448 6,314 6,847 9,701 5,897 32,100 12,795 12,031 5,910 10,437 7,657 14,294 32,400 6,983 16,641 5,119 11,957 3,086 10,765 28,161 32,400 16,339 Total Expenses covered by subvention 187,690 217,873 226,616 252,573 241,651 Personal cost-salaries Depreciation-expenses Other Expenses 7,134 30,482 35,742 5,269 30,482 25,686 5,704 30,482 58,459 6,779 40,461 99,752 6,363 25,829 61,781 Total Expenses not covered by subvention 73,358 61,437 94,646 TOTAL EXPENDITURE Net profit Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investments TOTAL ASSETS Other creditors Interest bearing borrowings Deferred Income Special funds TOTAL LIABILITIES NET ASSETS Accumulated Funds Asset revaluation reserve TOTAL FUNDS EMPLOYED 146,993 399,566 93,973 335,624 261,048 279,310 321,262 67,858 140,469 151,125 69,322 110,070 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ 167,922 124,440 225,015 260,369 15,559 955,208 259,602 15,079 924,876 359,602 13,060 895,732 359,602 18,166 914,890 359,602 218,577 135,572 896,806 469,279 1,398,291 1,423,997 1,493,409 1,553,027 1,720,234 (89,408) (161,896) 317,793 402,313 200,000 181,835 402,465 300,000 94,898 26,735 199,777 300,000 66,316 6,899 197,090 300,000 176,249 (2,092) 194,403 309,594 830,698 722,404 621,410 570,305 678,154 567,593 701,593 871,999 982,722 1,042,080 (87,020) 654,613 46,980 654,613 217,386 654,613 328,109 654,613 387,467 654,613 567,593 701,593 871,999 982,722 1,042,080 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 67 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Namosi Provincial Council Abridged Statement of Financial Performance 2001 $ 2002 $ 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ Govt Subvention for operating expenses
 221,085 126,381 158,155 153,901 147,300 155,353 156,711 Provincial Rates Income from Investment Other Income Total Income 22,637 20 41,799 47,171 36,110 35,734 2,561 116,695 1,433 43,990 97,986 2,833 25,459 40,969 2,060 32,139 101,036 6,088 42,170 50,020 1,720 246,303 332,046 231,432 298,710 215,788 294,616 250,621 Personal Cost 75,115 74,644 88,883 86,673 86,946 109,601 Travelling and Subsistence Fuel, repair and maintenance motor vehicle Administration Special Events Turaga ni Koro allowance Mata ni Tikina allowance Other Expenses Total Expenses covered by subvention Personal cost-salaries Depreciation-expenses Other Expenses Total Expenses not covered by subvention 5,864 5,038 3,306 5,721 2,899 5,475 8,589 9,704 6,862 6,300 - 8,642 10,326 13,324 6,040 - 10,603 8,105 17,126 4,870 - - 18,122 39,879 3,169 18,122 26,802 5,230 17,051 37,263 6,437 16,516 32,178 27,913 53,311 56,593 58,001 48,093 59,544 55,131 TOTAL EXPENDITURE 143,373 176,603 194,648 205,999 195,865 231,936 214,595 Net Profit 102,930 155,443 36,784 92,711 19,923 62,680 36,026 Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investments TOTAL ASSETS Other creditors Interest bearing borrowings TOTAL LIABILITIES NET ASSETS Accumulated Funds Asset revaluation reserve Deferred Income Special funds TOTAL FUNDS EMPLOYED 2001 $ 2002 $ 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ 1,288,510
- - - - 24,475 28,200 31,925 35,650 37,054 3,884 39,375 37054 3,489 43,100 37054 3,094 45,025 172,958 317,543 358,052 454,488 482,020 501,430 538,986 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 68 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Ra Provincial Council Abridged Statement of Financial Performance Govt subvention for operating expenses Provincial rates Income from investment Other income TOTAL INCOME Personal cost – Salaries Travelling and subsistence Motor vehicle cost Repairs and maintenance Administration Special events Turaga ni Koro allowance Mata ni Tikina allowance Other expenses Total expenses covered by subvention Personal cost Depreciation expenses Rates refund Expenses from other operations (savings account) Other expenses Total expenses not covered by subvention TOTAL EXPENDITURE Net profit/(deficit) 2000 $ 2001 $ 2002 $ 2003 $ 2004 $ 216,859 210,803 219,912 243,269 290,221 2005 $ 256,006 2006 $ 2007 $ 296,808 270,541 22,450 2,537 26,566 268,412 154,866 3,273 11,183 6,278 5,729 8,494 22,320 - 4,716 216,859 12,407 16,068 9,555 248,833 141,263 6,306 8,480 4,210 9,019 8,664 22,320 - 5,620 205,882 4,973 65,888 107,817 398,590 152,045 9,717 8,171 750 8,731 17,629 22,260 - 9,559 228,862 38,742 13,307 2,668 297,986 171,855 6,051 10,839 425 10,708 26,404 11,160 - 6,315
- 33,145 1,824 20,694 335 33,921 17,355 3,170 - 34,048 10,288 14,119 - 20,294 11,873 27,444 311 27,651 - 58,823 990 19,308 - 5,469 9,464 76,787 8,939 84,733 7,151 98,058 45,367 123,389 23,862 119,086 22,522 84,706 25,001 65,702 50,852 60,494 293,646 (25,234) 253,636 (4,803) 291,676 106,914 347,644 (49,658) 396,756 318,401 (20,780) 101,858 417,945 13,004 375,384 (42,224) Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investment TOTAL ASSETS Other creditors Deferred income Interest bearing borrowings Special funds TOTAL LIABILITIES NET ASSETS 2001 $ 2000 $ 3,967 51,677 381,777 155,171 88,677 86,244 420,705 149,479 592,592 745,105 2002 $ 30,082 53,552 437,775 209,240 2003 $ (2,079) 51,267 403,469 215,136 730,649 667,793 2006 $ 2004 $ 6,113 57,249 367,646 220,576 2005 $ 119,097 77,466 66,791 65,681 353,715 375,022 233,762 226,699 651,584 766,302 751,931 25,839 12,101 - 6,389 127,835 13,008 54,413 6,389 44,329 201,645 20,582 14,473 38,831 6,389 80,275 23,462 12,299 24,928 6,389 67,078 41,582 10,124 13,553 6,389 71,648 70,170 7,949 - 6,389 78,428 5,773 39,602 6,389 84,508 130,192 2007 $ 32,131 68,494 353,539 240,717 694,881 79,344 3,598 26,035 6,389 115,366 Accumulated funds Assets revaluation reserve TOTAL FUNDS EMPLOYED 338,989 209,274 334,186 209,274 548,263 543,460 441,100 209,274 391,442 209,274 650,374 600,716 370,662 209,274 412,465 472,520 209,274 209,274 579,936 681,794 621,739 370,241 209,274 579,515 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 69 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Rewa Provincial Council Abridged Statement of Financial Performance Government Subvention for operating expenses Provincial Rates Income from Investment
 Other Income Total Income Personal Cost Travelling and Subsistence Fuel, repair and maintenance motor vehicle Administration Special Events Turaga ni Koro allowance Other Expenses Total Expenses covered by subvention Personal cost-salaries Depreciation-expenses Other Expenses Total Expenses not covered by subvention TOTAL EXPENDITURE Net profit Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investments TOTAL ASSETS Other creditors Interest bearing borrowings Deferred Income Special funds TOTAL LIABILITIES NET ASSETS Accumulated Funds Asset revaluation reserve TOTAL FUNDS EMPLOYED 2006 $ 2007 $ 167,410 69,921 93,570 - $ 172,555 191,004 172,948 719,076 2007 $ 146,486 213,845 156,344 719,076 1,255,583 1,235,751 154,929 123,363 652,301 7,965 80,000 895,195 622,343 6,504 80,000 832,210 360,388 403,541 219,452 140,936 262,605 140,936 360,388 403,541 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 70 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Serua Provincial Council Abridged Statement of Financial Performance Government Subvention for operating expenses Provincial Rates Income from Investment Other Income Total Income Personal Cost Travelling and Subsistence Fuel, repair and maintenance motor vehicle Administration Special Events Turaga ni Koro allowance Other Expenses Total Expenses covered by subvention Personal cost-salaries Depreciation-expenses Other Expenses Total Expenses not covered by subvention TOTAL EXPENDITURE Net profit Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investments TOTAL
 ASSETS Other creditors Interest bearing borrowings TOTAL LIABILITIES NET ASSETS Accumulated Funds Asset revaluation reserve Special funds TOTAL FUNDS EMPLOYED 2006 $ 2007 $ 167,410 69,921 93,570 - $ 2007 $ 7,823 473,494 102,271 883,507 64,994 538,160 87,122 946,131 1,467,095 1,636,407 93,608 236,004 329,612 89,961 224,784 314,745 1,137,483 1,321,662 960,483 77,000 100,000 1,137,483 1,144,662 77,000 100,000 1,321,662 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 71 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Cakaudrove Provincial Council Abridged Statement of Financial Performance Govt Subvention for operating expenses Provincial Rates Income from Investment Other Income Total Income 2002 $ 288,178 36,750 80,000 7,080 412,008 2003 $ 2006 $ 378,430 34,971 161,016 10,938 393,097 503,149 633,311 585,355 2005 $ 385,926 95,169 151,428 788 2004 $ 347,929 23,557 129,057 2,606 290,683 21,692 80,000 722 2007 $ 322,570 83,834 152,027 7,056 565,487 Personal Cost Travelling and Subsistence Fuel, repair and maintenance motor vehicle Administration Special Events Turaga ni Koro allowance Mata ni Tikina allowance Other Expenses Total Expenses covered by subvention 157,182 22,403 164,523 12,623 152,722 20,235 178,305 21,118 187,946 17,309 150,416 12,145 19,047 22,879 25,371 31,060 - 11,575 25,057 18,853 24,336 25,220 - Personal cost-salaries Depreciation-expenses Other Expenses Total Expenses not covered by subvention TOTAL EXPENDITURE
 Net profit 4,492 30,789 75,788 111,069 400,586 11,422 Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investments TOTAL ASSETS Other creditors Interest bearing borrowings TOTAL LIABILITIES NET ASSETS Accumulated Funds Asset revaluation reserve Deferred Income Special funds TOTAL FUNDS EMPLOYED 2002 $ 147,907 53,512 858,555 400,000 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 72 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Kadavu Provincial Council Abridged Statement of Financial Performance Govt subvention for operating expenses Provincial rates Income from investment Other income TOTAL INCOME Personal cost-salaries Administration cost Repairs and maintenance Travelling and subsistence, meals Special events Turaga ni Koro allowance Other expenses Total expenses covered by subvention Personal cost Depreciation Travelling and subsistence Ka vakavanua Other expenses Total expenses not covered by subvention TOTAL
 EXPENDITURE Net profit/(deficit) 2002 $ 222,646 52,259 57,139 3,213 335,257 112,433 15,537 12,454 23,517 29,353 18,000 11,168 222,462 5,932 22,121 12,855 15,892 66,184 122,984 345,446 (10,189) Abridged Statement of Financial Position 2003 $ 2007 $ 313,213 50,620 103,513 19,630 345,601 381,645 422,939 472,265 486,976 2004 $ 266,139 48,711 65,346 1,449 2005 $ 277,000 58,386 83,743 3,810 2006 $ Cash at bank and on hand Other current assets Loans to public Property, plant and equipment Investments TOTAL ASSETS Other creditors Non-current liabilities Special funds Deferred income TOTAL LIABILITIES NET ASSETS 2002 $ 2003 $ 2004 $ 2006 $ 2007 $ 58,285 (3,977) 158,484 361,906 372,663 145,724 167,165 158,484 327,248 395,093 947,361 1,112,266 1,004,617 985,804 1,041,632 1,193,714 186,624 9,966 158,484 294,746 391,812 200,369 21,059 158,484 351,679 380,675 135,834 (6,308) 158,484 333,273 383,334 2005 $ 153,048 (23,060) Accumulated Funds Asset revaluation reserve TOTAL FUNDS EMPLOYED 509,662 187,380 697,042 591,442 187,380 778,822 596,559 187,380 638,277 187,380 783,939 825,657
 681,000 187,380 868,380 770,219 187,380 957,599 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 73 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Nadroga/Navosa Provincial Council 2002 $ 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ Govt Subvention for operating expenses 238,328 249,460 305,140 333,750 330,687 337,379 Govt Subvention for fixed assets Provincial Rates Other Income Total Income 630 66,238 17,033 635 671 790 70,105 76,443 73,814 110 49,057 100,399 1,030 67,851 66,388 1,030 81,084 19,267 322,229 320,310 431,311 508,753 465,956 438,760 Personal Cost Travelling and Subsistence Administration Special Events Turaga ni Koro allowance Mata ni Tikina allowance Other Expenses 166,633 177,519 168,703 195,493 201,312 189,899 5,225 5,812 23,907 33,719 7,616 9,424 29,040 29,040 - - 6,536 6,020 6,253 35,889 12,927 72,600 17,689 7,444 6,148 3,928 3,371 38,377 24,212 38,901 9,736 72,600 13,585 9,286 6,910 72,600 17,384 5,371 4,913 72,600 19,007 7,988 Total Expenses covered by subvention 238,957 261,534 321,505 345,225 331,717 336,679 Personal cost-salaries Depreciation-expenses Other Expenses Total Expenses not covered by subvention TOTAL EXPENDITURE Net Profit/(deficit) (3,139) (10,815) 37,441 75,010 44,984 30,287 Abridged Statement of Financial Position Cash at bank and on hand Other current assets Property, plant and equipment Investments TOTAL ASSETS Other creditors Interest bearing borrowings Deferred income TOTAL LIABILITIES NET ASSETS Accumulated Funds Asset revaluation reserve Deferred Income TOTAL FUNDS EMPLOYED 2002 $ 2003 $ 2004 $ 2005 $ 2006 $ 2007 $ 4,930 80,268 10,957 (16,891) 65,951 29,759 332,453 323,756 322,541 347,606 293,553 297,625 247,875 232,421 221,489
 209,931 193,227 184,498 67,500 67,500 67,500 67,500 67,500 121,676 652,758 703,945 622,487 608,146 620,231 633,558 116,510 193,762 133,082 125,126 229,166 215,470 152,658 70,145 - - - - - - 304,082 294,713 336,747 405,771 453,949 484,236 ___________________________________________________________________________________________ REPORT ON PROVINCIAL COUNCILS – VOLUME 2 74