Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697791908535.pdf (Fiji)
Report of the Auditor-General of the Republic of Fiji REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 2018-2019 Financial Statements of Government Report on 2018- 2019 Financial Statements of Government & Appropriation Statement PARLIAMENT OF FIJI PARLIAMENTARY PAPER NO.
88 OF 2022 1 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Location Postal Address Telephone Email Website : Top Floor, Modyl Plaza Karsanji Street, Vatuwaqa Suva, Fiji : 2214, Government Buildings Suva, Fiji : (679) 330 9032 : info@auditorgeneral.gov.fj : www.oag.gov.fj Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 2 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI CONTENTS Part A: Part B: 2018-2019 Government Financial Statements of Report on the Financial Statements of Government Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 4 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Part A: 2018-2019 Financial Statements of Government Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 5 Financial Statements Government of the Republic of Fiji for the period ending 31 July 2019 OFFICE OF THE AUDITOR GENERAL Promoting Public Sector Accountability and Sustainability through our Audits Top Floor, Modyl Plaza Karsanji Street, Vatuwaqa P.O.
Box 2214, Government Buildings Suva, Fiji Telephone: (679) 330 9032 E-mail: info@auditorgeneral.gov.fj Website: http://www.oag.gov.fj INDEPENDENT AUDITOR'S REPORT REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE GOVERNMENT OF THE REPUBLIC OF FIJI FOR THE YEAR ENDED 31 JULY 2019 I have audited the Financial Statements of Government of the Republic of Fiji, which comprise of the following: • Statement of Receipts and Expenditure, • Statement of Comparison Budget and Actual ( Budget Funding Programme) • Statement of Comparison Budget and Actual (Economic classifications) • Statement of Assets and Liabilities • Statement of Revenue and Expenses • Statement of Contingent Liabilities for the year ended 31 July 2019, and notes to the financial statements, including a summary of significant accounting policies, in accordance with section 152 of the 2013 Constitution of the Republic of Fiji, section 46(2) (b) and section 47(2) (b) of the Financial Management Act 2004, and section 6 of the Audit Act 1969.
In my opinion, except for the effects of the mat~er described in the Basis of Qualified Opinion paragraph, the accompanying Financial Statements of the Government of the Republic of Fiji are prepared in all material respects, in accordance with the International Public Sector Accounting Standards (IPSAS) Financial Reporting under the Cash Basis of Accounting, Financial Management Act 2004 and Finance Instructions 2010.
Basis for Qualified Audit Opinion Included in the Trust Fund Account balance of $205,478,333 in the Statement of Assets and Liabilities (Schedule 3) is Consolidated Main Trust Fund of $164,604,625 (Note 33).

Main Trust Fund Account balances totalling $76,959,364 were not supported with detailed listing of claimants of monies held in trust.

As a result, I was not able to satisfy myself on the accuracy and completeness of the component of Trust Fund Account balance of $76,959,364 as at 31 July 2019.
I have conducted my audit in accordance with International Standards on Auditing (ISA).

My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report.

I am independent of the Government in accordance with the International Ethics Standards Board for Accountant's Code of Ethics for Profession~!

Accountants (IESBA Code) .


together with the ~thical requirements that are relevant to my audit of the financial statements in Fiji and I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of Matters I draw attention to the following matters: 1.
Reflected in the Statement of Assets and Liabilities (Schedule 3) is cash and cash equivalent of $344,074,924.

Unreconciled variances amounting to $2,641,670 and $3,346,001 existed between the balances in the FMIS general ledger, and bank statements of foreign bank accounts and the bank confirmation for domestic cash, respectively.

In addition, domestic cash balance of $251,944 was not booked in the FMIS general ledger and therefore not accounted for in the financial statements.

2.
2.

Established Staff and Government Wage Earners Payroll expenditure in the Statement of Cash Receipts and Payments (Schedule 1) amounted to $1,016,971,896.

A total unreconciled variance of $17,571,867 existed between the FMIS general ledger and the payroll reports of Ministries and Departments.

On 29/09/21, the Ministry of Economy issued Circular 01/2021 - 2022 requiring Ministries and Departments to reconcile and justify the variances between the payroll reports and the FMIS general ledger balances.
3.

Reflected in the Statement of Revenue and Expenses (Schedule 4) is total revenue of $3,198,302,185.

A total unreconciled variance of $2,463,484 existed between the FMIS general ledger and the revenue reports of Ministries and Departments.

4.

Reflected in the Statement of Revenue and Expenses (Schedule 4) is total expenditure of $3,613,376,316.
The Ministry of Education, Heritage and Arts, Ministry of Fisheries, Ministry of Lands and Mineral Resources and the Ministry of Health and Medical Services were not able to provide appropriate supporting documents including p·ayments vouchers and journal vouchers for payments totalling $15,172,129.

5.

The Trading and Manufacturing Accounts are operating on semi-accrual accounting basis instead of full accrual accounting.
Property, plant and equipment for TMA operations are not disclosed in the Statement of Assets and Liabilities (Schedule 3) .

6.

Note 52 of the financial statements disclosed the novel Coronavirus (COVID-19) global pandemic impact subsequent to 31 July 2019 and also describes a number of measures and initiatives taken by the Government to ensure the safety of the population and to support the economy and those affected.
No adjustments have been made to the financial statements as at 31 July 2019 for the financial implication, if any, that may be arising in future.

· My opinion is not modified in respect of these matters.

Other Matters 1.
Internal controls were generally found to be weak for the Ministry of Disaster Management and Meteorological Services, Republic of Fiji Military Forces, Ministry of Foreign Affairs, Ministry of Agriculture, Ministry of Fisheries, Ministry of Forestry, Ministry of Lands and Mineral Resources, Ministry of Infrastructure and rransport, Ministry of Education, · Heritage and Arts, Ministry of Health and Medical Services, Ministry of Civil Service, Fiji Police Force, Ministry of Rural and Maritime Development, Ministry of Defence and National Security, Ministry of Women, Children and Poverty Alleviation, Ministry of Housing and Community Development and Ministry of Local Government.
If internal control issues are not addressed promptly, these can result in material misstatements Frnd fraud, in the future.

The Ministry of Economy has in place a process of preparing Reconciliation Compliance Reports for Pe,rmanent Secretaries.

The reports include both internal and external audit issues.

2.

There were various Ministries and Departments that did not have in place policies on risk management.
Responsibilities of the Permanent Secretary for Economy and those charged with governance for the financial statements The Permanent Secretary for Economy is responsible for the preparation of the Financial Statements of Government in accordance with the IPSAS Financial Reporting under Cash Basis of Accounting, Financial Management Act, and Finance Instructions 2010 and for such .
internal control as the Permanent Secretary for Economy determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Those charged with governance are responsible for overseeing the Government's financial reporting process.
Auditor's Responsibilities for the A~dit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fral)d or error, and to issue an auditor's report that includes my opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with ISA, I exercise professional judgement and maintain professional scepticism throughout the audit.
I also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsi\~e to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is h.igher than for one resulting from error, as fraud may ·involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Government's internal control.
• · Evaluate the appropriateness of accounting policies used and the reasonableness .of accounting estlmates and related disclosures made by the Permanent Secretary for Economy.

communicate with the Permanent Secretary for Economy and those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings , including any significant deficiencies in internal control that I identify during my audit.
(fa.~ Ajay Nand AUDITOR-GENERAL Suva, Fiji 10 January, 2022 OFFICE OF THE AUDITOR GENERAL Promoting Public Sector Accountability and Sustainability through our Audits Top Floor, Modyl Plaza Karsanji Street, Vatuwaqa P. O.
Box 2214, Governme~t Buildings Suva, Fiji Telephone: (679} 330 9032 E-mail: info@auditorgeneral.gov.fj Website: http://www.oag.gov.fj INDEPENDENT AUDITOR'S REPORT ANNUAL APPROPRIATION STATEMENT OF THE GOVERNMENT OF THE REPUBLIC OF FIJI FOR THE YEAR ENDED 31 JULY 2019 Opinion I have audited the Annual Appropriation Statement and Budget Results as included in Schedules 9 to 13 for the year ended 31 July 2019, and Notes to the Financial Statements of Government including a summary of significant accounting policies for the year ended 31 July 2019, in accordance with section 152 of the 2013 Constitution of the Republic of Fiji, section 46(2)(b) and section 47(2)(b) of the Financial Management Act 2004 and section 6 of the Audit Act 1969.
In my opinion, the accompanying Annual Appro'priation Statement and Budget Results are prepared, in all material respects, in accordance with the Financial Management Act 2004 and Finance Instructions 2010.

Basis for Opinion I have conducted my audit in accordance with International Standards on Auditing (ISA).

My the Auditor's Responsibilities responsibilities under those standards are described in paragraph of my report.
I am independent of Government in accordance with the International Ethics Standards Board for Accountant's Code of Ethics for Professional Accountants (I ESBA Code) together with the ethical requirements that ·a~e relevant to my audit of the financial statements in Fiji and I have fulfilled my other ethical responsibilities in accordance with these requirements · and the IESBA Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other Matters Significant Unutilised Budget As shown in the Details of Reportable Expenditure Authorisation (Schedule 10), significant in allocations for Travel and Communications (16%), unutilised budget were noted Maintenance and Operations (13%), Purchase of Goods and Services (14%), Operating Grants and Transfers (15%), Special Expenditures (38%), Capital Construction (56%), Capital Purchase (40%), Capital Grants and Transfers (35%), Pensions,-Gratuities & Compassionate Allowances (25%), ·charges o'n Account of Public Debt (58%) and Interest Payment on Overseas Loans (12%).
The significant unutilised budget were attributed mainly to the following: 1.

Ministry of Economy - there was an unutilised budget of $46.7 million or 39% of a total budget of $120.4 million under Head 4 as grants to the FRCS was released only on needs basis for funding.
Miscellaneous Services (Head 50) - unutilised budget of $228.5 million or 42% of a total budget of $538.9 million was due to the partial release of funds to agencies based on the funding needs, progress of project implementation and finalisation of procurements.
Pensions (Head 51) - unutilised budget of $11.6 million or 25% of a total budget of $46.2 million was due to the decrease in the number of pensioners from natural attrition and non submission of Life Certificates, which is required on a six-monthly basis.

Finance Charges on Public Debt (Head 52) - unutilised budget of $14.

7 million of a budget of $341.4 million due to the lower than anticipated depreciation of the Fijian dollar against currencies in which overseas loans were denominated.

2.
2.

Judiciary - unutilised budget of $12.3 million or 18% of a total budget of $69.2 million was due to the low utilisation rate of on-going projects and the non-implementation of projects earmarked for the 2019 financial year.

3.
3.

Department of Information Technology and Computing Services - unutilised budget of $11.2 million of a total budget of $18.9 million resulted from unutilised budget in purchases of goods and services due to changes in contractual arrangement requirement by the vendor for Microsoft licensing, non-implementations of the project for Storage System Capacity and Data Centre Infrastructure Upgrade.

4.
4.

Fiji Police Force - unutilised budget of $43.2 million or 22% of a total budget of $193.5 million was mainly due to the non-implementation of capital projects such as the upgrade of police dog section facilities, preparatory works for construction of major Police Stations, upgrading of police quarters and construction of new living quarters projects.

5.

Peacekeeping Missions - unutilised budget of $14.5 million or 18% of a total budget of $80.
7 million was due unused allocations for "standby arrangement for rapid deployment of manpower" on the winter clothing and on military technical equipment.

6.

Ministry of Education, Heritage and Arts - unutilised budget of $13.8 million of a total budget of $535.4 million was largely due to the delay in the processing of applications for building grants from schools.

There were also delays in tender approvals for capital projects.

7.
7.

Higher Education Institutions - unutilised budget of $38.6 million or 31 % of a total budget of $123.8 million was due to the partial and the non-release of quarterly grants to Higher Education Institutions.

8.

Ministry of Health and Medical Services - unutilised budget $61.5 million or 18% of a total budget of $335 million was the result of processing issues for biomedical services and spare parts.
In addition, most allocations were pledged and were under requisition against donor budget, which were not always approved .

The budget was utilised based on the progress of individual projects while the delay in the tender process for the capital projects and major equipment purchases planned contributed to the budget not being utilised .

9.
9.

Ministry of Housing and Community Development - unutilised budget of $29.4 million or 71 % of a total budget of $41.4 million was due to unspent budgets for programs which included the upgrade of informal settlements, upgrade of tow_n-wide informal settlements, city-wide upgrade First Home and First Land Programs, HART, Interest subsidy for Home Loans, Social Housing Assistance and survey for regularisation of lease and land titles.
The utilisation of budget for the First Home and First Land ownership initiative was demand-driven and the actual spending was in line with the applications received during the financial year.

Other grant assistance were utilised in line with the subsidy requests submitted by the relevant organisations.

10.
10.

Ministry of Agriculture - unutilised budget of $33.9 million or 35% of a total budget of $96.8 million was mainly due to the delay _ in vetting/finalisation of contract documents and RIE · applications to the Ministry of Economy resulting in the delay in the implementation of projects that were planned and budgeted to be carried out during the financial year.

11.
11.

Ministry of Industry, Trade and Tourism - unutilised budget of $24 million or 24% of a total budget of $99.3 million as the 4th quarter grants were not released, reduction in overseas travels, the postponement of the Fiji - China Trade Agreement Negotiation meeting.

12.
12.

Ministry of Local Government - unutilised budget of $16.6 million or 55% of a total budget of $30.1 million was the result of the reduction in the grant funding to rural local authorities and the National Fire Authority Ambulance Service.

Unutilised budget in capital grants and transfers of $13.6 million was a result of the non-utilisation of capital funds budgeted for ten new projects.
In addition, a sum of $3.4 million was de-requisitioned for utilisation, as approval was not granted by Ministry of Economy.

13.

Ministry of Waterways and Environment - unutilised budget of $46.1 million or 66% of a total budget of $70 million was mainly due to the delay in the procurement process for capital construction.

14.
14.

Ministry of Infrastructure and Transport - unutilised budget of $47.6 million or 29% of a total budget of $165.2 million due to the non-release of the 4th quarter grants to the Land Transport Authority of Fiji, capital expenditures were put on hold and the budget re prioritised for other government projects and commitments.

15.

Water Authority of Fiji - unutilised budget of $122.2 million or 35% of a total budget of $349.3 million as only 65% of the grant was released by the Ministry of Economy.

16.
16.

Fiji Roads Authority - unutilised budget of $136.8 million or 24% of its total budget of $563.1 million as only 76% of the grant was released by the Ministry of Economy.

17.

Various Ministries and Departments with approved total budget of $127.4 million did not utilise $36.4 million or 29% of the budget.

Individually, the unutilised budgets were significant at Ministry levels with percentages unutilised ranged from 20% to 44%.
As a result, funds approved by Parliament were ·not be fully utilised during the financial year.

Permanent Secretary of Economy's Responsibilities for the Annual Appropriation Statement .
The Permanent Secretary for Economy is responsible for the preparation of the Annual Appropriation Statement in accordance with the IPSAS under Cash Basis of Accounting, Financial Management Act 2004 and Finance Instructions 2010, and for such internal control as the Permanent Secretary determine is necessary to enable the preparation of annual appropriation statement that are free from material misstatements, whether due to fraud or error.
Auditor-General's Responsibilities for the audit of the Annual Appropriation Statement My objectives are to obtain reasonable assurance about whether the annual appropriation statement as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists.
Misstatements can arise from fraud and error and are considered material if, individually or in the aggregate, they could reasonably be expect~d to influence the economic decisions of users taken on the basis of the annual appropriation statement.

As pa_rt of an audit in accordance with ISA, I exercise professional judgment and maintain professional scepticism throughout the audit.
I also: • Identify and assess the risks of material misstatement of the annual appropriation statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Government's internal control.
• Evaluate the appropriateness of accounting policies used and related disclosures made by the Permanent Secretary for Economy.

Communication with tho.se charged with g·overnance I communicate with the Permanent Secretary for Economy and .those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any .significant deficiencies in internal control that I identify during my audit.
Ajay Nanci AUDITOR-GENERAL Suva, Fiji 10 January, 2022 Table of Contents Schedules Description Page No.

Schedule 1 Schedule 2 Primary Financial Statements according to Cash Basis IPSAS Statement of Cash Receipts and Payments ..................................................... .

Statement of Comparison of Budget and Actual Amounts by Budget Funding Programme .. ...... ............ ......... .. ... .

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Schedule 2A Statement of Comparison of Budget and Actual Amounts by Expenditure Economic classifications .....................................................

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2 3 Notes to and forming parts of the Financial Statements (Note 1-21).

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4-22 Other Financial Statements required by law Schedule 3 Statement of Assets and Liabilities .... ............................. .
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Schedule 4 Statement of Revenue and Expenses ............... ................. ........ .......... ............. .

Schedule 5 Statement of Contingent Liabilities 23 24 25 Notes to and forming parts of Other Financial Statements (Note 25- 52) ...... .... ..... ... .

26-46 Schedule 6 Segmentation Report by Fund Classification.. .... ................... ........ .......... ... ........ 47-48 Schedule 7 Summary ofRevenue.... ... .
.. .. .. ..... ............... 49 Schedule 8 Detailed Revenue Comparison....................... .............. ................... .......... ...... 50-56 Schedule 9 Statement of Expenditure against Appropriation Heads.............................. ............. 57-58 Schedule 10 Details of Expenditure Reportable Authorizations................................................. 59 Schedule 11 Budget Result, Estimates & Projections.......... ..... .. .... ....... ................................. 60 Schedule 12 Disaggregation of Actual Revenue and Expenditure by Economic Type......... .............. 61-63 Schedule 13 Estimate and Actual Budget Result.. .. .......... ............... .... ............ ........ .. ........ ... 64 GOVERNMENT OF THE REPUBLIC OF FIJI STATEMENT OF RESPONSIBILITY FOR THE PERIOD ENDING 31 JULY 2019 Whole of Government financial statements have been prepared by the Ministry of Economy in accordance with the provisions of the Financial Management Act 2004, Financial Instructions 2010, Finance Amendment Instructions 2016 and Cash Basis International Public Sector Accounting Standards 2017.
Whole of Government financial statements have been audited by Office of the Auditor-General, which was given unrestricted access to all financial records and related data.

Office of the Auditor-General report presented herein provides an independent opinion upon the fairness of the financial statements.

In our opinion, these financial statements fairly reflect the financial position of the Government of the Republic of Fiji as at 31 July 2019 and its operations for the year ended on that date.
Shiri.K.Gounder Permanent Secretary for Ministry of Economy Date: ...

PkA.!~1::1:::.

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GOVERNMENT OF THE REPUBLIC OF Fill STATEMENT OF CASH RECEIPTS AND PAYMENTS (EXCLUDING CONTROLLED ENTITIES) FOR THE PERIOD ENDING 31 JULY 2019 Schedule 1 Actual Controlled by Government Actual Controlled by Government Notes 31 Jul 2019 ($) 31 Jul 2018 ($) Cash flows from operating activities Receipts Direct Taxes Indirect Taxes Fees, Charges, Fines and Penalties Sales Revenue (TMA) Other Revenues and Surpluses Reimbursements and Recoveries Gr~ts in Aid (overseas) Net receipts into trust fund accounts Payments Established Staff Government Wage Earners Travel and Communications Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditure Pensions, Gratuities and Compassionate All.
Value Added Tax Cost of Goods Sold (TMA) Other Expenses (TMA) Interest Payments on Loans Net Advance Payment/(Receipt) Net cash flows from operating activities Cash flows from investing activities Investing Receipts Capital Expenditure Receipts from Lending & On - Lending Net cash flows from investing activities Net cash inflows before financinJ?
; Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Treasury Bills Net Proceeds/(Repayments) Net cash flows from financing activities Net increase/(decrease) in cash & cash equivalents Cash & cash equivalents at the beginning of period Effects of exchange rate of foreign cash held Cash & cash equivalents at end of period 36 36 36 36 36 39 39 39 39 39 39 13 39 41 42 17 (d) 17 (d) 17 (e) 3 754,429,587 2,065,348,735 133,087,675 17,624,048 45,072,931 11 ,821 ,776 41 ,985,862 7,784,949 (957,057,437) (59,914,459) (37,815,306) (78,031 ,413) (161,562,680) (687,937,715) (85 , 155,959) (34,647,442) (38, 118,137) (1 ,345,973) (11 ,914,774) (326,735,388) 10,732 825,724,215 2,005,911,627 142,973,799 12,204,774 39,649,218 20,942,757 49,461,174 255,925 (900,309,981) (58,949,182) (38,444,765) (75 ,434,699) (151 ,359,100) (680,170,593) (88,246,446) (36,956,687) (37,476,706) (451,429) (12,893 ,356) (291,503 ,011) 122,419 596,929,612 725,049,953 118,905,006 (1 , 120,561 ,744) 5,764,283 (995,892,455) (398,962,843) 637,150,844 (290,051,911) 109,114,135 456,213,068 57,250,225 286,653 ,731 170,968 344,074,924 159,039,795 (1,376,328,657) 1,655,995 (1 ,215,632,867) (490,582,914) 603,836,968 (205,540,307) 88,599,499 486,896,160 (3,686,754) 289,753 ,141 .
587,344 286,653,731 The statement includes other budgetary cash flows from the Trading & Manufacturing Activities and Trust.

Ministry of Economy Suva, Fiji Dated _ /p_ ofthe month of Jt 1w~7 202,Z.
··· ··· ··· ~ Mr. Shiri K Gounder Permanent Secretary for Ministry of Economy ··· ······· ········ ·· ···· ·~ STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY BUDGET FUNDING PROGRAMME FOR THE PERIOD ENDING 31 JULY 2019 Schedule 2 Original Revised Actual Variance 2019 ($) 2019 ($) 2019 ($) 2019 % (1) 1 0 Expenditure Operating (Standard Expenditure Groups 1-7) Operating (Pensions-SEQ 11) Operating (Public Debt-SEG 12, 14, 15) Capital (SEGs 8-10) Value Added Tax (SEG 13) Total Expenditure Revenue Operating Receipts Investing Receipts Total Revenue Net Deficit 2019 Debt Repayments 2019 Gross Deficit 2019 Net Deficit as a Percent of GDP Nominal GDP 3.5% 11,673 ,491,200 3.5% 11 ,673,491,200 3.5% 11,778,330,000 (Provisional) Gross Deficit To be Financed From: Overseas Loans Domestic Loans 77,713,838 630,776,553 77,713,838 630,776,553 13,461,860 630,778,000 708,490,391 708,490,391 644,239,860 83 (0) 9 2 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY EXPENDITURE - ECONOMIC CLASSIFICATIONS FOR THE PERIOD ENDING 31 JULY 2019 Schedule 2A Original 2019 ($) Revised 2019 ($) Actual 2019 ($) Variance O/o I.
Established Staff 2.

Government Wage Earners 3.

Travel and Communications 4.

Maintenance and Operations 5.

Purchase of Goods and Services 6.

Operating Grants and Transfers 7.

Special Expenditures Total Departmental Operating Expenditures Unallocable Operating Expenditures 11.

Pensions, Gratuities & Compassionate Allowances 12.
Charges on Account of Public Debt Total Unallocable Operating Expenditures 1,034,439,248 1,030,473,779 957,057,437 58,713 ,807 42,639,659 84,588,441 193,015,602 793,687,689 133,987,470 64,428,836 45,020,709 89,541,100 59,914,459 37,815,306 78,031,413 187,805,087 161 ,562,680 810,167,147 138,432,161 687,937,715 85,155,959 2,341,071,916 2,365,868,819 2,067,474,969 46,221,100 46,221 , 100 34,647,442 341,416,599 341,416,599 326,735,388 387,637,699 387,637,699 361,382,830 Total Operating Expenditures 2,728,709,615 2,753,506,518 2,428,857,799 8.
Capital Construction 9.

Capital Purchase 10.

Capital Grants and Transfers 248,958,410 89,528,829 1,513,759,495 243,938,303 108,004,075 89,768,741 53,720,981 1,491,495,201 969,082,274 Total Capital Expenditures 1,852,246,734 1,825,202,245 1,130,807,330 13.
Value Added Tax 69,589,630 71,837,216 38,118,137 Total Expenditures 4,650,545,979 4,650,545,979 3,597,783,266 7 7 16 13 14 15 38 13 25 4 7 12 56 40 35 38 47 23 3 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDING 31 JULY 2019 1.

General Information The Republic of Fiji is a sovereign democratic state.
The principal activities of the Government are: (i) The administration of public financial affairs; (ii) The provision of goods and services required by its citizens; and (iii) The collection, management and use of public resources.

2.
2.

Significant Accounting Policies 2.1 Basis of Preparation The financial statements namely, the Statement of Cash Receipts and Payments (Schedule 1) and the two Statements of Budget and Actual Comparisons (Schedules 2 and 2A) are prepared on cash basis as per the requirement of Cash Basis IPSAS, Financial Reporting Under the Cash Basis of Accounting and the Cabinet decision 277 of 2010.
The notes to the financial statements form an integral part to understanding the statements and shall be read in conjunction with the primary statements.

Further to complying with Cash Basis IPSAS reporting, additional presentations and disclosures are also being made in line with the Financial Management Act 2004.

The accounting policies have been applied consistently throughout the period.

2.2 Reporting Entity The financial statements are for the General Government Sector of the Government of Fiji.
The financial statements encompass the reporting entity, Whole of Government ("WOG"), as specified in the Financial Management Act 2004.

The reporting entity includes all budget sector agencies and excludes Off-budget state entities, Government commercial companies and commercial statutory authorities.
The revenue and expenditure of these controlled entities have been excluded from the consolidated accounts in accordance with Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting, in order to facilitate timely financial reporting.

A list of significant entities encompassed in the financial statements and the sectors in which they operate is shown in Note 16 to the financial statements.
The Constitution of the Republic of Fiji provides the framework for the conduct of the Government of Fiji.

The principal activities of the Government of Fiji are the administration of public financial affairs, the provision of health, education, defense, social protection, housing, recreational and cultural and general public services and economic management.
4 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDING 31 JULY 2019 Significant Accounting Policies (continued ... ) 2.2 The legal form of the Republic of Fiji is a sovereign democratic State.

Authority for Government's raising of taxation, revenue or monies is provided by Section 139 of the Constitution of the Republic of Fiji ("Constitution") and relevant specific law.
Authority for spending is provided in Section 141 of the Constitution and Appropriation made by law.

2.3 Presentation currency The presentation currency is Fiji dollars, the currency of the Government of Fiji and all values are rounded to the nearest dollar except when otherwise indicated.

Cash flows are converted to Fiji dollars using the monthly average exchange rate by the Reserve Bank of Fiji.

Amounts held in foreign currencies are converted using the spot rate on the reporting date.
2.4 Basis of Consolidation The financial statements are for the National Government of Fiji comprising of ministries and departments that are part of the Central Government budget including financial operations of these ministries that are outside the budget, such as Trade and Manufacturing Accounts and Trust Accounts as authorized by law.

Intra-economic entity transactions, receipts and expenditures are eliminated on consolidation.
2.5 Comparatives Where necessary, amounts relating to prior years have been reclassified to facilitate comparison and achieve consistency in disclosure with current year amounts.

5 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 3.

Cash and cash equivalents Cash comprises of cash at bank, short term demand deposits in overseas banks and cash on hand and other cash equivalents.
Demand deposits and cash equivalents consist of balances with banks and investments in short-term money market instruments.

Cash is mainly kept in the Reserve Bank of Fiji, commercial banks and cash registers.

All Government Ministries and Departments use overdraft accounts (drawings) for their operations and these are cleared on a daily basis to the Consolidated Fund Account of Government.
In addition, several ministries and departments operate and maintain their own bank accounts for monies held as trust and for those that operate quasi-commercial activities.

Funds held by overseas banks are for various Fiji Embassies, Trade Missions, Overseas Pension Funds and JP Morgan accounts.

The balance of the Domestic Account is offset by the unpresented cheques outstanding for ministries and departments as of 31 July 2019.
Cash included in the Statement of Cash Receipts and Payments comprise the following amounts: 31 Jul 2019 ($) 31 Jul 2018 ($) Overseas bank accounts Domestic bank accounts Trust fund accounts Trading and Manufacturing Activities accounts Cash on hand and balances with banks 7,623,040 160,843,269 163,891,553 11,717,062 344,074,924 19,537,799 92,434,840 161,050,199 13,630,893 286,653,731 Included in cash and cash equivalents above are the Trust Fund Accounts totaling $163.9 million (2018: $161.1 million) which is set aside for a specific purpose.
The Trust Fund Account includes deposits, retention monies and true Trust account that ministries and departments hold in trust.

4 Donations, Grants and Other Aid Cash receipts during the period included donations, grants and other aid provided by bilateral and multilateral donor agencies donor agencies and non-Governmental organizations.

The amount of donations, grants and other aid does not include aid received during the reporting period in the form of proceeds from loans.
The proceeds of any aid received during the period in the form of loans are included in the amount of borrowings presented as a separate line item in the Statement of Receipts and Payments.

6 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 5.

Borrowings Borrowings comprise cash inflows from financial institutions, bilateral, multilateral and development partners.

6.
6.

Term Loans Term loan payments are loans made to state owned enterprises and students (scholarships) as part of Government lending and on lending program.

Term loan receipts are the repayments received from the recipients of the loans and scholarships.

7.

Trust Fund Trust fund receipts comprises of funds which Government receives and holds on behalf of its designated beneficiaries.

8.
8.

Advance Receipts Income received in advance consists of cash deposits that Government has collected, but not recognized as revenue.

9.

Value Added Tax These are VAT payment made by Ministries/ Departments to Fiji Revenue & Customs Service during the year.

10 Interest Payments and Other Charges on Loans These are payments made during the year for interest on overseas and domestic loans as well as interest on Treasury bills.

11.
11.

Investment Receipts Government has a number of investments and the receipts from investing are mainly from dividends and interest on bank balances.

12.

Capital Payments These are payments made for capital construction, purchase of fixed assets and capital grants and transfers.

7 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 13.
Special Expenditure Special Expenditure (SEG 7) relate to one off or unique projects of Government.

In 2019, there were altogether 333 special expenditure activities, listed below are the top 14 activities.
Head of Appropriation ($) ($) 31 Jul 2019 31 Jul Activity ADB Meeting Social Welfare Miscellaneous Services Miscellaneous Services General Reserves (OPR & CAP) Miscellaneous Services Workmens Compensation Employment, Productivity and Industrial Relation Analogue to Digital Community Health Workers Communication Health and Medical Services Civil Service Reform Management Unit Medical Contingencies Household Income & Expenditure Survey Miscellaneous Services Health and Medical Services Fiji Bureau of Statistics Deforestation Forestry Grid Extension Scheme Infrastructure and Transport Consul-General - Shanghai Industry, Trade and Tourism Consul-General - Sydney Industry, Trade and Tourism Consultancy Payments Public Enterprise Others ( comprises of 319 activities across various Ministries in 2019) 8 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 14.
Undrawn Borrowing Facilities The total undrawn loan balance from current loan facilities with the World Bank - International Bank for Reconstruction and Development ('IBRD'),Intemational Fund for Agricultural Development ('IF AD'), European Investment Bank ('EIB') and the Asian Development Bank ('ADB') was approximately $553.2 million as at 31 July 2019 compared to $551.8 million in the same period last year.

Loans undrawn from the World Bank amounted to $101.6 million ($103.5 million - 31 July 2018) .
IFAD amounted to $4.9 million ($5.4 million - 31 July 2018), EIB at $162.4 million ($157.6 million - 31 July, 2018) while undrawn loans from ADB equal $284.3 million ($285.3 million - 31 July 2018).
The loan amounts were converted to the Fiji dollar using the end of year exchange rate: USD/FJD=0.4619 and EUR/FJD=0.4141 Loan Account Loan Proceeds Received Total Loan Drawdown Capitalised Loans as per Agreement Charges Undrawn Restricted cancelled balance Cash available for future years Fiji dollar equivalent as at 31/07/2019 A. Multi-lateral (USD millions) (USD millions) (USD millions) (USD millions) (USD millions) (FJD millions) (F JD millions) 2014 ADB - Transport Infrastructure Investment Project 2016 IBRD - Transport Infrastructure Investment Project 2016 IBRD - Pacific Regional Connectivity Program 2017 ADB-Urban Water & Sewerage Project LN 3512 2017 EIB - Urban Water & Wastewater Management Project Total 273.06 6.12 0.67 0.00 253.24 1.05 548.25 B. Multi-lateral (EUR millions) (EUR millions) (EUR mjllions) (EUR millions) (EUR millions) (F JD millions) 2015 IFAD - Fiji Agricultural Partnership Project Total TOTAL 3.10 3.10 0.15 0.15 0.0 0.00 0.00 0.00 2.05 2.05 1.02 1.02 4.95 4.95 553.20 9 GOVERNMENT OF THE REPUBLIC OF FIJ1 NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 15.
Undrawn Grant Facilities Donor Institution/Project Currency Total amount of Total grants Name received as at 31 July 2018 approved grant 2019 Total grants received as at 31 July 2019 Undrawn balance as at 31 July 2019 FJD (millions) FJD (millions) FJD (millions) FJD (millions) General Budget Support FJD 19.50 Direct Project Support FJD 5.00 25.10 12.20 2.15 8.43 0.40 1.42 Notes: • General budget support - These are cash grants as provided in the Budget Estimates.
• Direct budget support - This represent ad-hoc cash grant received and released directly for the project to the recipient agencies.

Undrawn balance - Unutilised budget are returned to Head 50 on July 2019.

During this period, Government had complied with all the significant terms and conditions of external assistance loan and grant agreements.

16 Government Budgetary Sector All budget sector agencies are included in the consolidated financial statements.
The significant controlled entities are identified below.

Comparatives is disclosed in Statement of Expenditure against Appropriation Heads in Schedule 9.
General Administration Office of the President Office of the Prime Minister Office of the Attorney-General Ministry of Economy Ministry of iTaukei Affairs Ministry of Defence and National Security Ministry of Employment, Productivity and Industrial Relations Ministry of Foreign Affairs Independent Bodies Independent Commissions Ministry of Disaster Management and Meteorological Services Ministry of Justice Fiji Corrections Service Ministry of Communications Ministry of Civil Service Ministry of Rural and Maritime Development Republic of Fiji Military Forces Fiji Police Force Peacekeeping Missions 10 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 16 Government Budgetary Sector (cont ... ) Social Services Ministry of Education, Heritage and Arts Ministry of Health and Medical Services Department of Housing and Community Development Ministry of Women, Children and Poverty Alleviation Ministry of Youth and Sports Higher Education Institutions Economic Services Ministry of Agriculture Ministry of Fisheries Ministry of Forests Ministry of Lands and Mineral Resources Ministry of Industry, Trade and Tourism Ministry of Sugar Industry Ministry of Public Enterprises Ministry of Local Government Infrastructure Services Ministry of Infrastructure and Transport Water Authority of Fiji Ministry of Waterways and Environment Fiji Roads Authority The Government Printing and Stationery Department was sold during the financial year.
11 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 17.

Assets, Liabilities, Revenues and Expenses a) Revenue and Expenses The Government builds data on revenues and expenses of the reporting period on a modified cash basis.

The modified cash basis used by Government is further explained in Note 18 Original and Revised Approved Budget and Comparison of Actual and Budget Amounts in the Basis Differences section.
The Government maintain records of property taxes due and payable at reporting date based on property values as assessed by the Fiji Revenue & Customs Service.

Accrued expenses comprise amounts due and payable for wages, salaries and rental and other costs due.
Payables at reporting date are as follows: 31 Jul 2019 ($) 31 Jul 2018 ($) b) Accounts Receivables Tax receivables - IRD and customs Accounts receivable - Trade Miscellaneous receivables c) Accounts Payables TMA Trade and sundry creditors Withholding tax Litigation claims VAT and Income Tax Refunds outstanding d) Borrowings The borrowings of the Government are listed below: Proceeds Domestic commercial banks Domestic insurance companies Domestic - Fiji National Provident Fund Domestic - Private Overseas development banks and similar lending agencies Total proceeds Repayments Domestic commercial institutions Overseas development banks and similar lending agencies Total repayments e) Treasury Bills 199,505,238 2,658,813 904,284 203,068,335 9,931 450,377 254,815,142 255,275,450 86,616,372 536,573 ,794 10,744,404 3,216,274 637,150,844 151 ,016,717 1,662,218 874,815 153,553,750 688,789 164,249,266 164,938,055 40,609,140 60,295 ,507 405,464,797 29,244,147 68,223,377 603,836,968 (235,277,000) (54,774,911) (290,051,911) (160,729,000) (44,811,307) (205,540,307) Treasury bills issued Treasury bills redeemed Net proceeds from treasury bills 628,129,135 (519,015,000) 109,114,135 266,499,499 (177,900,000) 88,599,499 12 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 18.
Original and Revised Approved Budget and Comparison of Actual and Budget Amounts The budget is approved on a cash basis by functional classification.

The approved budget covers the fiscal period from 1 August 2018 to 31 July 2019 and includes all entities within the general Government sector.

The budget deals only with the general Government sector which excludes other extra budgetary activities.
The general Government sector includes all Government departments - significant departments are included in the list of entities in Note 16.

The original budget was announced on 28th June, 2018 and approved by Parliament on 12th July 2018.

There was no supplementary budget issued during the year.

A number of changes occurred due to a Redeployment Exercise which was · endorsed by Cabinet 20 l 8- 2019FY.
The approval for the redeployment of funds in the 2018-2019 Budget was to fund the implementation of the Bus Fare Concession to the elderly and people living with disability under the Ministry of Women, Children, and Poverty Alleviation, shortfall in Doctors Personal emoluments, superannuation(FNPF), and allowances under the Ministry of Civil Service and to fund the ongoing projects and programmes for the Ministry of Sugar Industry.
Comparison of Actual and Budget Amounts Investing revenue shortfall The anticipated sale of Government assets did not take place for the financial year 2018-2019.

Government budgeted $395.4 million from sale of Government assets as investing receipts in the 2018-2019 Budget, which was largely anticipated from disposal of assets and divestment of shares.
SEO 1: Established staff The cost savings for SEO 1 is mainly attributable to the following: i) The Personal Emoluments budget for some agencies were pegged at the maximum salary bands, however not all officers are entitled to the maximum salary thus resulting in cost savings; and ii) Due to vacant positions at the W oG level, which resulted in the low utilisation of funds for SEO 1.
SEO 2: Government wage earners The underspending is due to the vacant positions at W oG level which has resulted in the low utilisation of funds for SEO 2.

SEO 3: Travel and communications The cost savings for SEO 3 were driven by lower than expected staff travels and control measures undertaken during the year.

SEO 4: Maintenance and operations This was result of cost savings undertaken during the year.
13 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 18.

Original and Revised Approved Budget and Comparison of Actual and Budget Amounts (Cont .

.. ) SEG 5: Purchase of goods and services As a result of lower than projected purchase of goods and services during the year.

SEG 6: Operating grants and transfers The funds were released as and when required by the Agencies.
SEG 7: Special expenditures The under utilisation in this SEG were attributable to the delayed implementation of disaster reconstruction projects.

SEG 8: Capital construction The budget released were based on the funding requirements to implement the programmes for the period reported.
SEG 9: Capital purchase The significant under spending in SEG 9 was mainly attributable to a number of purchases that were re prioritized SEG 10: Capital grants and transfers Funding from these allocations are released as and when required.

SEG 11 : Pensions, gratuities and compassionate allowances Attributed to deletion of pensioners due to death, non-submission of life certificates and expiry of contract of contracted officers.
SEG 13: Value Added Tax There was significant under utilisation in this SEG as a result of a decrease in expenses incurred during the year as noted above for the individual SEGs.

There were no other material differences between the final approved budget and the actual amounts.

Basic Differences The budget and the accounting basis differ.

The financial statements for the government are prepared on the cash basis using a classification based on the nature of expenses.
The financial statements include all budget sector agencies and excludes off-budget state entities, government commercial companies and commercial statutory authorities from 1 August 2018 to 31 July 2019.

The budget is approved on cash basis by functional classification and deals only with the general government sector which excludes other extra budgetary activities.
The Statement of Cash Receipts and Payments includes the same entities as the budget and other extra budgetary activities such as TMAs and Trust.

14 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 Budget Differences (cont ... ) The government's accounting system is kept on a modified cash basis.
Some expenditures are modified since some cash outflows such as accountable advances to employees for business travel are not reported when the payment is made but at the time of acquittal.

Likewise, some cash inflows such as trust money are not reported as revenues.

The Statement of Cash Receipts and Payments are prepared on the cash basis.

The general ledger amounts were adjusted to make them consistent with the cash basis to be included in the Statement of Cash Receipts and Payments.
In addition to the above, the basis for budgeting of Treasury bills is different from the basis used in accounting or reporting of Treasury bills.

The Annual Appropriation Act appropriates the interest portion of Treasury Bills whereas the Statement of Cash Receipts and Payments records net of total issuance and redemptions.
Treasury Bills is considered by government as a liquidity instrument and not a financing tool as it is less than a year in maturity and its sole purpose is to cover for shortfalls in revenue.

Treasury bills have various maturities and are issued at a discount from par value.

Entity Differences • The approved budget includes all entities within the central government sector.

• The budget deals only with the general government sector which excludes other extra budgetary activities.
The Statement of Cash Receipts and Payments includes the same entities as the budget and other extra budgetary activities such as TMAs and Trust.

There is an entity difference: the budget is prepared for the government budgetary sector and the Statement of Cash Receipts and Payment includes both budgetary and extra budgetary entities.

The entity differences are considered material.

Timing Difference The budget and financial statements are prepared for the same period.
A reconciliation between the actual inflows and outflows are presented in the statement of comparison of the budget and actual amounts and the amounts of total cash receipts and total cash payments reported in the statement of cash receipts and payments for the year ended 31 July 2019 is presented below: Actual amount on comparable basis as presented in the Budget and Actual Comparative Statement Total inflows Total outflows 3,180,612,784 3,597,783,266 3,180,612,784 3,597,783,266 Entity differences Cost of goods sold (TMA) Other expenses (TMA) Net advance payments (TMA) Third party payments (Note 19) Total Cash Receipts Total Cash Payments 1,345,973 11,914,775 (10,732) (10,245,586) 3,600,787,696 3,180,612,784 15 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 19.
Payment by Third Parties The Government benefits from payments made by third parties to purchase goods and services on its behalf during the period.

These payments do not constitute cash receipts of payments by the government.

They include payments for goods and services made by multilateral aid agencies and non-governmental organizations.
They form part of the support for government programs provided by way of external and other assistance - additional information about external assistance and other assistance is provided by the Note below.

The government has verified that the following payments have been made by third parties for capital works : Capital payments Total third party payments 31 Jul 2019 ($) .
31 Jul 2018 ($) 10,245,586 10,245,586 5,955,007 5,955,007 The Government benefits from goods and services purchased on its behalf as a result of cash payments made by third parties (donors) during the period by way of loans and grants.

The payments made by the third parties do not constitute cash receipts or payments by the Government but do benefit the Government.

They are disclosed in the payments by third parties column in the Statement of Cash Receipts and Payments.
These third parties (donors) are not part of the Government of Fiji ( economic entity).

Such disclosures are only made when the government has been formally advised by the third party (the donor) or the recipient that such payment has been made or the government has otherwise verified the payment.

16 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 20.
External Assistance and Other Assistance Assistance was received in the form of cash transfers and deposits to current and term deposit accounts and trust fund accounts controlled by the Government.

It also encompasses amounts drawn by the Government from accounts of donors consistent with external assistance and other assistance agreements and authorizations.

Assistance was also received in the form of third party payments.
External assistance comprises loans and grants from multilateral donor agencies under agreements specifying the purposes for which the assistance will be utilised.

Other assistance was provided for specified purposes by NGOs, private corporations and other donors.
The amounts, class of provider and purposes for which external assistance was provided during the period is outlined below: External assistance Total cash receipts Total external assistance Multilateral aid agencies Cash receipts Total multilateral aid agencies Bilateral aid agencies Cash receipts Total multilateral aid agencies Other Assistance Total cash receipts Total other assistance Non-Governmental Organizations Cash receipts Total NGOs Private Corporations and Other Donors Cash receipts Total private corporations and other donors Loan Funds External assistance Total loan funds Grants and Donations External assistance Total grants and donations 17 31 Jul 2019 31 Jul 2018 ($) ($) : , 8 7 1 , 4 7 2 1 8 , 5 4 8 , 8 4 6 9 1 , 4 2 0 , 3 2 1 $ 0 6 8 , 1 6 4 , 3 1 2 1 1 , 7 3 6 , 3 3 2 7 9 , 8 9 0 , 7 4 $ 3 6 8 , 0 5 5 , 1 1 $ - - 3 6 8 , 0 5 5 , 1 1 $ $ $ 1 2 5 , 7 2 6 , 2 6 2 1 8 , 5 4 8 , 8 4 3 3 3 , 3 7 4 , 1 1 1 $ 0 6 8 , 1 6 4 , 3 1 2 1 1 , 7 3 6 , 3 3 2 7 9 , 8 9 0 , 7 4 $ 1
, s n o i t a z i n a g r o l a t n e m n r e v o G - : s e s o p r u p g n i w o l l o f 2 6 3 , 5 1 6 $ 0 5 7 , 8 4 3 8 , $ $ $ $ $ 2 6 3 , 5 1 6 $ 0 5 7 , 8 4 3 , 8 $ , e c n a t s i s s a l a n r e t x e n w a r d n U .
, $ $ $ $ $ $ $ $ 0 0 0 , 0 3 2 , 2 6 2 9 4 4 , 6 0 2 , 3 5 5 0 0 0 , 0 3 2 , 2 6 2 0 0 0 , 0 3 2 , 2 8 4 3 , 4 1 8 , 1 0 0 0 , 0 3 2 , 2 8 4 3 , 4 1 8 , 1 9 4 4 , 6 0 2 , 3 5 5 s n a o L - e c n a l a b g n i s o l C s t n a r G - .
, , d n u f f o n w o d w a r d e h t o t s d r a g e r n I .
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 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 21 .

Goods and Services Received The Government of Fiji has received goods and services in 2019 from donors.
These assistance include goods such as computers and medical equipment, and services such as technical assistance.
Summary of goods and services received in-kind from donors Donor agency Department of Foreign Affairs and Trade (DFAT) European Union China New Zealand Ministry of Foreign Affairs and Trade (NZMFAT) Japan International Cooperation Agency (JICA) The United Nations Children's Fund (UNICEF) Korea The Global Green Growth Institute (GGGI) Kuwait Fund Total value of goods and services received in-kind Summary of goods and services received in-kind by activity Project Australian Development Scholarships(ADS)(DF AT) Australian Regional Development Scholarship (DF AT) Training in Japan (HCA) Pacific Leaders Educational Assistance for Development of State (Pacific LEADS) (HCA) Short Term Training Attachment (NZMFAT) NZ Development Scholarships - Public (NZMFAT) Training in Korea for Civil Servants (KOICA) Scholarship Programme for Civil Servants (KOICA) World Friends Korea(KOICA) Project for Climate Change Resilient Renewable Energy (Korea) Port Security Inspection Scanner Project (China) Elections Support (NZAID) Child Protection Programme (UNICEF) Governance (DFAT) UNDP Parliament Strengthening Project (Phase 2) (NZAID) Public Administration Reform and Governance (EU) Aid-in-kind 31 July 2019 ($) 59,731,933 31,587,587 23,791,020 13,878,437 13,893,506 709,426 4,443,238 801,740 1,023,919 149,860,806 Aid-in-kind 31 July 2019 ($) 7,838,219 783,822 2,541,442 3,363,674 1,056,440 1,447,178 243,400 293,400 2,649,800 1,256,638 16,979,591 947,902 24,958 6,270,576 1,085,384 3,424,893 19 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 21.
Goods and Services Received (Cont...): Good Governance, Democracy, Health & Gender (EU) Assistance for Child Protection Program- Prosecution (UNICEF) Upgrade National Disaster Management Office and Emergency Operations Centres (NZMFAT) TC Winston Recovery Support (NZMF AT) Disaster Risk Reduction Advisor (JICA) Access to Quality Education Program (DFAT) Australia-Pacific Technical College (DF AT) Child Protection Programme (UNICEF) Water, Sanitation and Hygiene Programme (UNICEF) Technical Assistance (JICA) Fiji Health Sector Improvement Programme/ Support Programme (DFAT) Medical Treatment Scheme (NZMF AT)\ Dengue Fever/ World Mosquito Programme (UNICEF) Health Nutrition and HIV & AIDS Programme (UNICEF) Water, Sanitation and Hygiene Programme (UNICEF) Prevention and Control of NCDs (JICA) Project for Improvement of Health Services through 5S-KAIZEN-TQM (JICA) Project for Elimination of Filariasis in the Pacific (JICA) Volunteer Scheme (JICA) Navua Hospital- Technical Cooperation (China) Child Protection Program (UNICEF) Volunteer Scheme (JICA) Pacific Women Shaping Pacific Development (DFAT) Support for Agriculture Projects in Vanua Levu (China) Second Phase of Technical Assistance for China- Aid Juncao Technology Demonstration (China) Pacific Horticulture and Agriculture Market Access (DFAT) Fiji Dairy Industry Development Initiative (NZMFAT) Fiji Agriculture Sector Support (NZMF AT) Fisheries Support Programme (NZMFAT) Volunteer Scheme (JICA) Financial Inclusion (DF AT) Fiji Community Development Program (DFAT) Market Development Facility (DFAT) Supporting Private Sector Development in Fiji (DFAT) Social Mitigation Programme - EDF 11 & Related Programs (EU) Biosecurity Authority of Fiji (NZMFAT) Technical Assistance (JICA) Introduction of Hybrid Power Generation System in the Pacific Island Countries (JICA) Reinforcing Meteorological Training Functions of Fiji Meteorological Services (FMS) (ITCA) Technical Assistance (JICA) Volunteer Scheme (JICA) Aid-in-kind 31 July 2019 ($) 2,459,688 37,438 144,718 455,861
31 July 2019 ($) GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 21.
Goods and Services Received (Cont ... ): Project for Promotion of Regional Initiative on Solid Waste Management PRISM Phase II) (JICA) (J Project for Stengthening Capacity of Debt.
Water & Sewerage to Improve Rural Water Supply by Ecological Purification System Technology (JICA) Project to Support reducing unaccounted water through effective control on Nadi/Ltka (JICA) Volunteer Scheme (JICA) Financing the Preparation of a Feasibility Study and Preliminary Engineering Design for Savusavu Water Supply and Sewerage System Project (Kuwait) 429,802 82,009 427,314 84,092 1,023,917 Total value of goods and services received in-kind 149,860,806 22.
Authorisation Date These IPSAS Financial Statements for the year ended 31 July 2019 were authorised for issue by the Permanent Secretary for Ministry ofEconomy on ..... / .J~.11.~f-................. , 202}.

23 .

Commitments & Contingencies Contingent liabilities of the Government at year end are disclosed in the statement of contingent liabilities in Schedule 5.
21 Financial Statements Government of the Republic of Fiji for the period ending 31 July 2019 (Other Financial Statements required by Law) GOVERNMENT OF THE REPUBLIC OF FIJI STATEMENT OF ASSETS AND LIABILITIES AS AT 31 JULY 2019 Schedule 3 Notes 31 Jul 2019 ($) 31 Jul 2018 ($) ASSETS Current Assets Cash and cash equivalent Accounts Receivable Prepayments Inventory Total Current Assets Non Current Assets Term-Loans Receivable Equity Investments Total Non Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Accounts Payable Deferred Income Trust fund account Term Loans Payable - Treasury Bills Term Loans Payable - Overseas Loans Term Loans Payable - Domestic Loans Total Current Liabilities Non Current Liabilities Term-loans Payable Overseas Loans Term-loans Payable Domestic Loans Total Non Current Liabilities 3 17(b) 28 29 30 31 l 7(c) 32 33 34(c) 34(d) 34(e) 34(d) 34(e) 344,074,924 203,068,335 1,070,745 1,783,814 549,997,818 650,225,067 1,313,895,388 1,964,120,455 286,653,731 153,553,750 1,081,477 3,129,786 444,418,744 572,199,307 1,335,906,060 1,908,105,367 2,514,118,273 2,352,524,111 255,275,450 7,284,678 205 ,478,333 298,150,105 61,127,719 194,078,000 1,021,394,285 1,394,270,059 3,777,833 ,144 5,172,103,203 164,938,055 6,061,580 197,701,126 185,283,183 59,057,667 235,277,000 848,318,611 1,396,235,176 3,340,875,161 4,737,110,337 TOT AL LIABILITIES 6,193,497,488 5,585,428,948 EQIDTY 47 (3,679,379,215) (3,232,904,837) The accompanying notes form an integral part of these financial statements.
Ministry of Economy Suva, Fiji ·· ···· ········-~ Mr. Shiri K Gounder ·-··· ··· ····· Dated (Jfa of the month of~ , 202).
Permanent Secretary for Ministry of Economy 24 GOVERNMENT OF THE REPUBLIC OF FIJI STATEMENT OF REVENUE & EXPENSES FOR THE PERIOD ENDING 31 JULY 2019 Schedule 4 Notes 31 Jul 2019 31 Jul 2018 REVENUE Operating Revenue Investing Revenue Trade and Manufacturing Operations TOTAL REVENUE EXPENSES Operating Expenses Capital Expenses Value Added Tax Interest Payments on Loans 36 37 45(a) 39 40 41 42 Trading and Manufacturing Operations 45(b) ($) ($) 3,049,753,621 3,079,416,368 130,859,163 17,689,401 165,023,264 17,970,568 3,198,302,185 3,262,410,200 2,102,122,411 2,029,871,453 1,133,129,915 1,382,283,665 38,118,137 326,735,388 13,270,467 37,476,706 291,503,012 13,368,156 TOTAL EXPENSES 3,613,376,318 3,754,502,992 Deficit for the year (415,074,133) (492,092,792) 25 ) y l u J - g u A ( ) $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) $ ( .
o N - - - 9 5 4 , 5 0 6 , 3 5 2 4 , 0 7 8 , 3 5 0 6 7 , 4 0 9 , 1 9 2 0 0 4 , 5 3 0 , 8 6 3 6 0 , 3 9 4 , 0 1 0 4 7 , 1 6 0 , 4 4 9 7 , 4 8 2 , 1 4 2 1 4 6 , 5 5 2 , 3 7 6 t a s a y t i l i b a i L 9 1 0 2 y l u J 1 3 ) $ ( 9 2 1 , 9 1 2 , 2 1 3 4 7 2 , 7 9 1 , 4 0 2 3 0 4 , 6 1 4 , 6 1 5 5 5 6 , 8 1 7 1 6 4 , 4 6 3 , 0 7 9 6 2 , 6 1 2 , 1 1 2 4 , 2 4 6 , 1 2 6 0 8 , 1 4 9 , 3 9 - - - - - - - - - - - - - - - - - - - - - 8 0 5 , 4 1 1 , 2 - - - - - - - - - - - - - - - 0 0 6 , 7 8 2 7 3 5 , 9 0 4 8 8 6 , 2 4 5 , 4 ) 5 1 4 , 1 4 3 , 6 8 ( ) 8 8 5 , 3 9 8 , 0 4 ( ) 0 0 0 , 0 9 9 , 1 ( ) 2 8 8 , 8 1 8 , 1 ( ) 8 6 1 , 9 0 3 , 7 1 ( ) 0 0 0 , 0 0 0 , 1 2 ( ) 7 9 2 , 1 5 1 , 2 ( ) 2 5 2 , 9 5 6 ( - - - - - - - - - - - - 1 9 0 , 1 5 0 , 2 7 8 7 , 2 3 2 , 6 4 0 0 4 , 5 3 3 , 9 2 6 3 8 , 5 0 7 , 3 7 1 2 2 9 , 5 8 1 , 5 2 8 8 , 8 1 8 , 1 3 1 4 , 6 7 4 , 4 9 1 5 6 , 7 9 9 , 9 9 1 0 0 0 , 0 0 7 , 9 5 0 6 3 , 4 4 6 , 2 1 1 0 9 , 9 6 6 , 2 7 6 6 , 6 4 2 , 0 1 2 - : , 4 1 1 , 2 5 2 8 , 9 3 2 , 5 ) 2 0 6 , 3 6 1 , 2 7 1 ( 4 1 1 , 5 2 3 , 1 5 2 6 9 7 , 9 3 7 , .
o N t c A ; 1 7 / 3 / - : ) D R B I ( t n e m p o l e v e D : - I 5 3 l a t o T - e c i v r e S s m o t s u C & - s l i c n u o C l a i c n i v o r P d e s i a R s n a o L - s l i c n u o C l a p i c i n u M ) k n a b e h t 6 9 9 1 f o 4 1 .
o N t c A t s n i a g a s m i a l c l a g e L ( i j i F f o k n a B l a n o i t a N 1 2 1 2 3 4 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019 25.
Scope of Other Financial Statements This section on other Financial Statements contains the following as required by law (Financial Management Act 2004): • Statement of Assets and Liabilities • Statement of Revenue and Expenses • Statement of Contingent Liabilities It also includes as part of the notes a Segmentation Report and other budgetary execution reports as required by law.

26.
26.

Significant Accounting Policies relating to Other Financial Statements 26.1 26.2 26.3 26.4 26.5 Accounts Receivable Accounts Receivable represents money owed by third parties to Government on the sale of products or services on credit.

Account receivable balance mainly comprises of umecouped TMA receivables as well as state revenue owed to Government by third parties.
Prepayments Prepayments comprise of umecouped accountable advances paid to civil servants to facilitate official trips and accommodation for both domestic and overseas trips.

Inventory Inventories are stated at lower of cost and net realizable value.

Cost is assigned to inventory on a consistent basis year to year using either the specific identifications; first in first out or weighted average cost.
The cost of inventories shall comprise all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition.

Investments Valuation of Investments is at market value if available.

If market value is not available, investments are recorded at cost.

Fair value is especially used by entities that are listed on the South Pacific Stock Exchange namely Amalgamated Telecommunications Holdings (ATH).
Investment in Sinking Fund The purpose of the Sinking Fund is to build cash reserves that would be sufficient to redeem the Global Bond when it matures.

This account was established mainly for the purpose of redemption of the Offshore bond as well as debt repayments for Government.

As at the end of July 2019, Sinking fund balance was $0.115m compared to $12.3m as at July 2018.
Movements within the year were a result from dividends earned, interest payments and transfers made as monthly exchange rate adjustments.

26.6 Accounts Payable Accounts Payable are amounts payable to suppliers or other creditors for the supply of goods, services or works.
27 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019 Significant Accounting Policies relating to Other Financial Statements (Cont ... ) 26.7 Deferred Income Liabilities also include amounts received in advance for future services.

Since the amount received (recorded as the asset Cash) has not yet been earned, Government defers the reporting of revenues and instead reports a liability such as Unearned Revenues.
26.8 Treasury Bills Payable Treasury Bills Payable are recorded at discounted value.

26.9 Government Bonds Starting in 2015, the bond premium and discounts are being amortized over the maturity period of the bond.

However, the effect had not been applied retrospectively as it was impractible to do so.

26.10 Trust Fund Accounts Trust Fund Accounts comprises of funds which Government holds on behalf of its designated beneficiaries.
The Trust Fund Accounts comprises of operating trust and main trust monies.

26.11 Term Loans Payable Government borrow funds from either External or Domestic sources to finance its Capital Programs and to support budgeted expenditures.

External loans are recorded to the amount of disbursement made for each loan and converted to FJD using end of year exchange rates prescribed by the Reserve Bank of Fiji.
Domestic loans are financial instruments raised locally that includes Government Bonds (Viti Bonds and Fiji Infrastructure Bonds) and Treasury Bills.

Viti Bonds are recorded at Face Value while other domestic instruments are disclosed separately in the Financial Statements.

26.12 Operating Income Operating Income is recognized in the statement of receipts and payments using both accrual and cash basis system.

Where AR (accounts receivable) Modules are available, revenue is accounted on an accrual basis.
However, those Ministries whom have yet to adopt AR module are still accounting for their revenue on a pure cash basis system.

26.13 Investing Revenue Investing Revenue is recorded in the statement of receipts and payments on cash basis system.

26.14 Loans Drawn Viti Bonds are recorded at Face Value.

External Loans are recorded to the amount of disbursement made for each loan and converted to FJD using end of year exchange rates prescribed by the RBF.
26.15 Expenditure Expenditure is recorded in the statement of revenue and expenses on a cash basis except for carry-over and accountable advance.

28 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 28 Prepayments 31 Jul 2019 ($) 1,070,745 31 Jul 2018 ($) 1,081,477 Advances paid to staffs are recorded as prepayments, they are cleared to relevant expenditures upon retirement.

29.
29.

Inventory Inventory comprises of raw materials; work in progress and finished goods of the Government Trading and Manufacturing Activities (TMAs ).

Inventories are valued at cost using the periodic inventory method.
Inventory as at year end are as follows: Raw Materials Work-in-Progress Finished Goods for Sales 30 Term-Loans Receivable 292,384 14,340 1,477,090 1,783,814 895,900 378,073 1,855,813 3,129,786 Term loans receivables are funds lent to state owned enterprises and students (scholarships) as part of Government on lending program.
Term-Loans Receivable Term-Loans Receivable for Social Services Term-Loans Receivable for Economic Services 30(a) 30(b) Total Term-Loans Receivable 407,310,146 242,914,921 650,225,067 321 ,705,443 250,493,863 572,199,306 Loans provided by the Government to third parties are represented as follows: (a) Term-Loans Receivable for Social Services Public Officers and Ministers I Taukei Affairs Board FRCS PSC Scholarship Recovery FRCS Tertiary Education Loan Scheme Fiji Sports Council (b) Term-Loans Receivable for Economic Services Fiji Pine Limited Fiji Sugar Corporation Limited Viti Corporation Company Ltd Food Processors Fiji Ltd Fiji Rice Limited Pacific Fishing Company Limited South Pacific Fertilizer Housing Authority Public Rental Board 14,476 5,338,924 8,915,722 388,590,413 4,450,611 14,476 5,678,924 9,049,544 302,511,888 4,450,611 407,310,146 321,705,443 2,200,000 173,816,930 2,905,000 1,900,000 1,900,000 9,000,000 9,722,iOO 32,706,299 8,764,592 7,200,000 173,816,930 2,905 ,000 1,900,000 1,900,000 9,000,000 9,722,100 34,740,200 9,309,633 242,914,921 250,493,863 29 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 31.
Equity Investments Section 55 of the Financial Management Act 2004 provides the authority for the investment of Government moneys through fixed deposit with any bank, in any securities in which trustees are authorized to invest under the Trustee Act, in any security issued by any statutory body in Fiji and as advances authorized by Finance Act and any other Act or by resolution of the Parliament.
Investments as at year end were as follows: Investments Investments in Social Services Investments in Economic Services Investments in Infrastructure Services Total Investments (a) Investments in Social Services Post Fiji Limited Unit Trust of Fiji (Trustee) Ltd Unit Trust of Fiji (Management) Ltd Daily Post Fiji Broadcasting Corporation Ltd. Walesi Ltd Fiji Public Trustee Corporation Ltd (b) Investments in Economic Services Fiji Airways Fiji Hardwood Corporation Pacific Fishing Company Ltd Assets Fiji Ltd Fiji Pine Ltd Fiji Sugar Corporation Ltd Fiji Rice Viti Corps Company Ltd Yaqara Pastoral Company Ltd Food Processors Fiji Ltd Air Terminal Services 31 Jul 2019 ($) 31 Jul 2018 ($) 7,040,686 238,569,496 6,916,667 237,115 ,297 l(a) 3 l(b) 3 l(c) 100% 49% 100% 45% 100% 100% 100% 51% 90% 99 .7% 100% 99.8% 68% 100% 100% 100% 100% 51% 30 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 (b) Investments in Economic Services (cont .. ) Shareholding 31 Jul 2019 31 Jul 2018 International Finance Corporation International Bank for Reconstruction and Development Copra Millers Fiji Ltd Asian Infrastructure Investment Bank Asia Development Bank Subscription 0% 0% 98.4% 0% 0% ($) ($) 616,674 603,068 14,397,012 6,429,183 2,148,689 10,669,512 14,079,364 6,429,183 1,050,641 10,644,615 238,569,496 237,115,297 Investments in Asian Development Bank (ADB), International Finance Corporation (IFC) and the International Bank for Reconstruction and Development (IBRD) reflect Paid-in subscriptions in the respective financial institution's capital stock that are subscribed by the
 government.
These are not intended as income earning investments, but only to fulfil a requirement of these institutions to be entitled to borrowing and member privileges.
(c) Investments in Infrastructure Services Airports (Fiji) Limited Amalgamated Telecom Holdings Limited Fiji Ports Corporation Limited Energy Fiji Limited 100% 17% 41% 100% 92,300,180 233,491,536 29,993,490 712,500,000 92,300,180 219,627,976 29,993,490 749,952,450 1,068,285,206 1,091,874,096 ( d) Reconciliation of Equity Investments The reconciliation of changes in investments are as follows: · 124,019 287,724 Increase/ (decrease) in fair value of shares Post Fiji Limited Unit Trust of Fiji (Trustee) Limited Unit Trust of Fiji (Management) Limited Daily Post Fiji Broadcasting Corporation Ltd Walesi Limited Fiji Public Trustee Corporation Limited Fiji Airways Fiji Hardwood Corporation Pacific Fishing Company Ltd Air Fiji Ltd Assets Fiji Limited Fiji Pine Ltd 31 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 ( d) Reconciliation of Equity Investments (cont .. ) Increase/ (decrease) in fair value of shares Fiji Sugar Corporation Ltd 31 Jul 2019 31 Jul 2018 ($) ($) National Trading Corp. Ltd Fiji Rice Limited Viti Corps Company Ltd Yaqara Pastoral Company Ltd Food Processors Ltd Air Terminal Services Copra Millers Fiji Ltd Yaqara Group Ltd Airports (Fiji) Ltd Amalgamated Telecommunications Holdings Fiji Ports Corporation Ltd Energy Fiji Ltd Exchange Rate adjustments International Finance Corporation International Bank for Reconstruction and Development Asian Development Bank Asian Infrastructure Investment Bank 13,863,560 139,365,260 (37,452,450) 749,952,450 13,606 317,648 24,897 1,098,048 25,719 4,444,459 437,407 1,050,641 (22,010,672) 895,563,660 The variations noted in Equity Investments are due to the $37,452,450 non voting shares for Energy Fiji Limited transferred to account/ bill holders (public); increase in share price per unit ( as as 31/07 /18 and 31/07 /19) for ATH and UTOF (Trustee) shares and exchange rate adjustments for foreign investments.
32 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 31 Jul 2019 31 Jul 2018 ($) ($) 32.

Deferred Income 7,284,678 6,061,580 Deferred revenues are received cash deposits that government has collected, but not yet reported as revenue on the income statement.

As they are reported as revenue in subsequent periods, (i.e.

"amortized"), the amounts are deducted from the deferred revenue account.

33.
33.

Trust Fund Account Section 25( 1) of the Financial Management Act makes provision for the establishment of a Consolidated Trust Account to record all monies received by the government in trust except for monies received and administered by the Public Trustee or the Official Receiver.
The Act further stipulates that all monies which do not belong to but received and administered by Government shall be accounted for in the Consolidated Trust Fund, which shall not constitute a part of the Consolidated Fund.

The authority to open and operate a trust fund is vested with the Chief Accountant.

The Consolidated Trust Fund Account records monies received by the Government which do not belong to it and is therefore considered a liability of Government.
Closing balances in this account comprised the following: Deposits, Deductions and Retention Money Consolidated Trust Fund Total Trust Fund Account 34.

Term-Loans Payable 31 Jul 2019 ($) 31 Jul 2018 ($) 40,873,708 164,604,625 36,459,911 161,241,215 205,478,333 197,701,126 Government borrows monies either domestically or from overseas to finance its Capital Programs.
Total debt of Government outstanding as at 31/07 /19 are as follows: (a) Current Liabilities Term-Loans Payable - Treasury Bills Term Loans Payable - Overseas Loans Term Loans Payable - Domestic Loans 34 (c) 34(d) 34(e) 298,150,105 61,127,719 194,078,000 185,283,183 59,057,667 235,277,000 Total Current Liabilities 553,355,824 479,617,850 (b) Non-Current Liabilities Term-Loans Payable - Overseas Loans Term-Loans Payable - Domestic Loans 34(d) 34(e) 1,394,270,059 3,777,833,144 1,396,235,176 3,340,875,161 Total Non-Current Liabilities 5,172,103,203 4,737,110,337 Total Government Debt 5,725,459,027 5,216,728,187 33 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 34.
Term-Loans Payable (cont ... ) Term loans payable for overseas and domestic loans have been re-classified to represent current and non-current ( c) Treasury bills Term-Loans Payable - Treasury Bills The Government through the Reserve Bank of Fiji floats Treasury Bills to raise funds from the domestic market on a short term basis.

Treasury Bills are sold at a discount from their face value of which the investor will receive the face value upon maturity.
Opening Balance Treasury Bills Issued during the year less unamortized amount Treasury Bills Redemptions during the year Non-Cash Unamortised discount Outstanding 31 July ( d) Overseas loans Outstanding 1 August Redemptions during the year Capitalized interest Add/(less) unamortized discount Cash Borrowings Non-cash borrowing-direct disbursement Exemption - External Debt Increase in public debt due to revaluation Other adjustments Outstanding 3 1 July 31 Jul 2019 31 Jul 2018 ($) ($) 185,283,183 639,015,000 (10,885 ,865) (519,015,000) 3,752,787 298,150,105 94,884,303 269,000,000 (2,500,501) (177,900,000) 1,799,381 185,283,183 1,455,292,843 (54,774,911) 1,367,960,883 (44,811 ,307) 1,434,451 888,135 3,216,274 10,245,586 39,095,400 943 ,109 850,649 68,223 ,377 5,955,007 56,093 ,533 77,592 1,455,397,778 1,455,292,843 34 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 34.
Term-Loans Payable (cont ... ) Non Cash borrowings - By source: Multilateral Asian Development Bank World Bank Non-Cash Borrowings - overseas 31 Jul 2019 ($) 31 Jul 2018 ($) 8,637,380 1,608,206 10,245,586 5,404,957 550,050 5,955,007 Overseas loans amounting to $10.2 million were drawn in financial year 01 August 2018 - 31 July 2019 from Government's loan facilities with Asian Development Bank and World Bank.

These loans drawn by Government are directly disbursed to the contractors by lenders.
( e) Domestic loans Outstanding 1 August Borrowings raised during the year Add: Unamortized premium Add: Accrued interests earned Reversal of previous years accrued interest Redemptions during the year Outstanding 31 July Domestic Borrowings - By Source Public Commercial Banks Insurance companies FNPF Private Others Total Domestic Borrowings raised in 2018 3,576,152,161 630,778,000 3,204,762,346 531,796,000 (36,500) 943,348 (648,865) (24,714) 648,865 (301,336) (235,277,000) (160,729,000) 3,971,911,144 3,576,152,161 19,385,000 66,756,000 533,716,000 10,921,000 630,778,000 76,673,000 30,267,000 402,363,000 22,493,000 531,796,000 Government bonds were raised locally during the year in the form of Fiji Infrastructure Bonds, Viti Bonds and Fiji Green Bonds.
Accrued interest in 2017 /18 fiscal year is reversed in this fiscal year.

35 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 35 .
Contingent Liabilities Explicit Contingent Liabilities Government Guarantees 31 Jul 2019 31 Jul 2018 ($) ($) 673 ,255 ,641 586,739,796 The Financial Management Act section (62) stipulates that Government may guarantee the financial liability of an entity in respect of a loan or otherwise, but only if the giving of the guarantee is authorized by the House of Representatives.
Schedule 5 Statement of Contingent Liabilities provide in detail the various agencies (8 altogether) where government undertakes giving of guarantees by end of 31 July 2019.
Other Explicit Contingent Liabilities International Bank for Reconstruction and Development (IBRD) Asian Development Bank 312,219,129 303,034,283 204,197,274 516,416,403 202,188,709 505,222,992 In addition, the subscriptions for membership with International Agencies such as the International Bank for Reconstruction and Development (IBRD) and the Asian Development Bank are also treated as contingent liabilities as the subscriptions represent callable capital and should government fail to honour the article of agreement, the agencies would call on the callable capital.
The amounts are sourced from the certificate of balances provided by ADB and IBRD.
Implicit Contingent Liabilities National Bank of Fiji - Legal claims against the bank Provincial Councils - Loans Raised Municipal Councils - Loans Raised Fiji Revenue & Customs Service - litigation claims in relation to tax and customs matters 718,655 1,216,269 21,642,421 70,364,461 2,427,471 1,441,163 23 ,779,565 35,482,450 93,941,806 63,130,649 36 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 35.
Contingent Liabilities (cont ... ) 31 Jul 2019 31 Jul 2018 Government Contingent Assets ($) ($) 13,640,969 The National Bank of Fiji comprises of legal claims against National Bank of Fiji - Asset Management Bank (NBF AMB).

This is sourced from the certificate of balances provided by the National Bank of Fiji - Asset Management Bank whereas loans raised by provincial councils and municipal councils represent a key component in the consolidation of general Government debt.
Loans raised by Municipal Councils are deemed implicit and represent a key component in the consolidation of general government debt.

This is sourced from certificate of balances provided by the Ministry of Local Government.

The Fiji Revenue & Customs Service (FRCS) as an agent of Government has a number of litigation claims made against it in relation to tax and customs matters.
These matters are resolved through various means not wholly within the control of the FRCS and may or may not give rise to an obligation.

This is sourced from FRCS audited Financial Statements for the year ended 31 July 2019.

From year 2015, only the explicit contingent liabilities with a reliable basis for the estimated amount are included in Schedule 5.
The government recognizes a contingency to advance to FNPF on the basis of the provision of FNPF Act section 140 (1) that says "If the board is unable to satisfy a liability of the Board referable to a fund (the "relevant fund") out of the relevant fund, the Minister must, on written request by the Board, advance to the Board the amount needed to enable the Board to satisfy the liability".

36.
36.

Operating Revenue Operating Revenue consists of Direct Taxes, Indirect Taxes, Fees Fines & Charges, Grant Aid, Interest & Dividends and Other Receipts.
31 Jul 2019 31 Jul 2018 Direct Taxes Indirect Taxes Fees, Charges, Fines and Penalties Operating Revenue - Surpluses Other Revenues and Surpluses Reimbursements and Recoveries Grants in Aid (overseas) Total Operating Revenue ($) 754,429,587 2,065,348,735 133,087,675 467 43,079,519 11,821,776 41,985,862 ($) 825,724,215 2,005,911,627 142,973,799 1,630 34,401,166 20,942,757 49,461,174 3,049,753,621 3,079,416,368 37 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 37.
'Investing Revenue Interest received on Term-Loans Receivable Sales of Government Assets Dividend from Investments Interest from Bank Balances Return of TMA excess cash to consolidated fund account Recovery of Fijian Affairs Loans Total Investing Revenue 38.
Revenue from Non Exchange Transactions 31 Jul 2019 31 Jul 2018 ($) ($) 11,248,123 5,163,696 106,649,184 1,444,002 6,354,140 18 6,011,984 1,397,889 149,766,928 1,862,994 5,961,851 21,618 130,859,163 165,023,264 The primary objective of this disclosure is to differentiate between revenue from non-exchange transactions and revenue from exchange transactions in accordance with IPSAS 23 Revenue from Non Exchange Transactions.
In a non-exchange transaction, government receives value from another entity without directly giving approximately equal value in exchange.

Revenue from exchange transactions on the other hand arise whereby government collected revenues and directly gives approximately equal value to another entity in exchange.
Revenue from non exchange transactions 31 Jul 2019 31 Jul 2018 Direct Taxes (Gross) Direct Taxes Refunds Indirect Taxes Value Added Tax (Gross) Value Added Tax Refunds Fiscal Duty Excise Duty Export Duty Import Excise Duty Service Turnover Tax Water Resource Tax Departure Tax Fish Levy Stamp Duty Luxury Vehicle Duty Environmental Levy Telecommunication Levy Third Party Insurance Levy Miscellaneous indirect taxes Other non-exchange revenues Grants in Aid ($) 830,139,738 (75,710,151) ($) 890,782,497 (65,058,282) 1,031,674,957 (199,855,087) 1,044,540,672 (256,054,059) 440,514,255 168,272,733 8,078,905 50,885,202 89,565,778 73 ,641,286 147,180,292 48,911 85,170,458 1,264,500 160,949,430 976,157 6,980,958 430,241,959 166,441 ,553 9,720,193 59,962,329 97,871,902 64,289,698 139,529,223 85,687 85,266,235 2,063,000 158,463,670 1,007,902 953,444 1,528,220 41,985,862 2,861,764,184 49,461,174 2,881,097,017 38 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 38.
Revenue from Non Exchange Transactions (cont ... ) Revenue from exchange transactions Fees, Charges, Fines and Penalties Trading and Manufacturing Accounts - Sales Revenue Other Revenues and Surpluses Reimbursements and Recoveries Repayment of Term-Loans Receivable Sales of Government Assets Dividend from Investments Interest from Bank Balances Return of Surplus Capital from Investments Recovery of Fijian Affairs Scholarships Total Revenue 39.
Operating Expenses Operating expenditure includes the following: Established Staff Government Wage Earners Travel and Communications Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditure 31 Jul 2019 ($) 31 Jul 2018 ($) 133,087,675 142,973,799 17,689,401 43,079,986 11 ,821,776 11 ,248,123 Pensions, Gratuities and Compassionate Allowances Total Operating Expenditure 34,647,442 2,102,122,411 36,956,687 2,029,871,453 40.
Capital Expenses Capital Expenditure includes the following: Capital Construction Capital Purchases Capital Grants and Transfers Total Capital Expenditure 108,004,075 53,720,981 971 ,404,859 1,133,129,915 102,877,892 75,674,702 1,203,731,071 1,382,283,665 39 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 41.
Value Added Expense 31 Jul 2019 31 Jul 2018 ($) ($) 38.,118,137 37,476,706 These are the VAT payments made by Ministries/Departments to FRCS (Fiji Revenue & Customs Service) during the year.

42.

Interest Payments and Other Charges on Loans Charges on Account of Public Debt is provided for in the Budget Estimates for the payment of interest on domestic and overseas loans.
Interest Payments Overseas Loans Domestic Loans Treasury Bills Total Interest Paid 56,738,756 266,093 ,493 3,752,788 326,585,037 48,864,351 240,702,829 1,799,381 291 ,366,561 Other charges on Public Debt - Miscellaneous Payments 150,351 136,451 Total Interest Paid and Miscellaneous Payments 326,735,388 291,503,012 Interest Payment on overseas loans 1997 Asian Development Bank Third Road Upgrading project 1998 Japan International Corporation Agency Nadi Lautoka Water Supply and Sewerage Project 2004 Asian Development Bank Suva Nausori Water Supply and Sewerage Project 2006 Export Import Bank of China E-Govemment Project 2009 Asian Development Bank Emergency Flood Recovery Project 20 IO Export Import Bank of China Fiji Low Cost Housing Project 2010 Export Import Bank of China Fiji Public Rental Housing Project 20 IO Asian Development Bank Supplementary Third Road Upgrading project 1,156,681 272,729 915,304 319,074 2,140,940 1,450,176 560,787 1,040,623 705,625 189,092 I, 186,280 631,990 611,781 764,925 204,984 707,650 40 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 Interest Payments and Other Charges on Loans (cont ... ) 31 Jul 2019 31 Jul 2018 2010 Asian Development Bank Supplementary Suva/Nausori Water Supply Project 2011 Export Import Bank of China Sigatoka Valley and Sawani Serea Road Project 2011 Export Import Bank of China Buca Bay and Moto Road Project 2012 Export Import Bank of China Nabouwalu and Dreketi Road Upgrading Project 2014 ADB Transport and Infrastructure Project 2016 IBRD Post Cyclone Winston Emergency LN8632 2015 Global Bond 2016-2017 ADB Emergency Assistance LN3403 2016 IBRD Transport Infrastructure LN8482 2016 IF AD Agricultural Loan EUR3 .1 m 2016-17 WB Fiji Cable Connection to V anua Levu LN8666 3rd Global Bond Amortisation 2017 ADB UWSWMIP LN 3512 Capitalised Interest LN8840 IBRB FSCRDPL Front End Fee 2018 ADB LN3667 - FIJ: Sust.
Private Sector Led Growth Interest Payment on domestic loans Viti Bond 2012 Viti Bond 2013 Viti Bond 2014 Viti Bond 2015 Viti Bond 2016 Viti Bond 2016/17 Viti Bond 2017 /18 Viti Bond 2018/19 Fiji Development Loan 2002 Fiji Development Loan 2003 Fiji Development Loan 2004 Fiji Development Loan 2005 Fiji Development Loan 2006 Fiji Development Loan 2007 Fiji Development Loan 2008 Fiji Development Loan 2009 41 ($) 1,089,477 ($) 660,774 1,712,280 1,922,387 1,856,179 2,082,453 4,854,803 5,128,889 661,041 3,781,147 28,206,565 3,405,512 535,995 22,379 313,182 888,134 237,415 1,077,496 778,186 56,738,756 97,710 211,640 265,960 336,660 231,765 461 ,150 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 42.
Interest Payments and Other Charges on Loans (cont ... ) Fiji Development Loan 2010 Fiji Development Loan 2011 Fiji Development Loan 2012 Fiji Development Loan 2013 Fiji Development Loan 2014 Fiji Development Loan 2015 Fiji Development Loan 2016 Fiji Development Loan 2017 Fiji Development Loan 2018 Fiji Development Loan 2019 Fiji Green Bonds Unamortised discount 43.
Repayment of Loans Principal Repayments: Overseas Loans Domestic Loans Total Principal Repayments Principal Repayments Overseas Loans 1997 Asian Development Bank Third Road Upgrading project 1998 Japan International Corporation Agency Nadi Lautoka Water Supply and Sewerage Project 2004 Asian Development Bank Suva Nausori Water Supply and Sewerage Project 2005 Asian Development Bank Suva Supplementary Nausori Water Supply and Sewerage Project 2006 Export Import Bank of China E-Govemment Project 2009 Asian Development Bank Emergency Flood Recovery 2010 Asian Development Bank Supplementary Third Road Upgrading project 31 Jul 2019 31 Jul 2018 ($) ($) 40,922,500 6,058,045 10,792,505 8,055,020 8,802,500 9,883,136 16,777,877 13,939,381 26,714,797 11,356,129 5,433 ,966 41 ,056,500 EXIM Bank of China/ Fiji Low Cost Housing 2,729,456 2,744,177 42 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 43 .
Repayment of Loans (cont ... ) 2010 EXIM Bank of China/ Public Rental Housing 2010 EXIM Bank of China/ Sigatoka Valley & Sawani Serea 2010 EXIM Bank of China/ B uca Bay and Moto roads 2012 EXIM Bank of China Road Upgrading Project 31 Jul 2019 ($) 31 Jul 2018 ($) 731 ,436 6,623,340 7,436,064 16,232,732 735,381 6,659,062 7,470,961 8,289,100 Total Principal Repayments Overseas Loans 54,774,911 44,811,307 Principal Repayment Domestic Loans Fiji Development Loan 2002 Fiji Development Loan 2003 Fiji Development Loan 2004 Fiji Development Loan 2007 Fiji Development Loan 2008 Fiji Development Loan 2009 Fiji Development Loan 2010 Fiji Development Loan 2011 Fiji Development Loan 2012 Fiji Development Loan 2013 Fiji Development Loan 2015 Fiji Development Loan 2016 Fiji Development Loan 2017 Viti Bonds 2012 (4%) Viti Bonds 2012 (4.5%) Viti Bonds 2014 (4%) Total Principal Repayments Domestic Loans 44.
Ways and Means 63,200,000 58,800,000 38,900,000 40,650,000 4,000,000 2,100,000 21,400,000 4,200,000 560,000 48,000 1,419,000 235,277,000 26,000,000 28,000,000 10,300,000 29,870,000 17,200,000 1,300,000 45 ,100,000 370,000 2,589,000 160,729,000 The Ways and Means is a short term advance facility provided by the RBF for Government where advances are given to Government for a day to meet cash deficits.

The Ways and Means are replenished the day after the advances were made.
Ways and Means Receipts Ways and Means ·Repayments 128,400,000 (128,400,000) 26,800,000 (26,800,000) 43 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 31 Jul 2019 ($) 31 Jul 2018 ($) 45.
Revenue and Expense from Trading & Manufacturing Accounts Trading and Manufacturing Accounts - Sales Revenue Trading and Manufacturing Accounts - Other Revenue and Surplus (a) Total Revenue from TMA's Cost of Goods sold Other TMA Expenditures (b) Total Expenses from TMA's 46.
Arrears of Revenue 12,137,075 5,552,326 17,689,401 1,345,973 11,924,494 13,270,467 The Arrears of Revenue position of Government as at 31 /07/2019 are as follows: Ministry of Agriculture Office of the Auditor-General Telecommunication Authority of Fiji Ministry of Defence Ministry of Education, Heritage and Arts Ministry of Economy (Pensions Office) Ministry of Economy (Surcharge) Ministry of Economy (Human Resources) Ministry of Fisheries & Forests Government Printing and Stationery Department Ministry of Health and Medical Services Information Technology & Computing Services Judiciary Ministry of Employment, Productivity and Industrial Relation Department of Lands Ministry of Infrastructure and Transport Overseas Peacekeeping Missions Fiji Police Force Public Utilities (Water Authority of Fiji) Ministry of Rural & Maritime Development Solicitor General's Office Department of Fiji Meteorological Services Fiji Roads Authority Land Transport Authority Total Arrears of Revenue 802,480 334,823 15,257,498 59,596 56,035 176,925 620,134 10,415 24,642 23,478 428,177 2,005 13,431,984 23,069 26,936,731 310,238 945,105 1,431 38,612,309 2,448,742 1,090 1,944,106 81 ,605 21,752,092 Fiji Revenue & Customs Service IRD and Customs arrears have been excluded from Note 46 and recognised in Statement of Assets and Liabilities.
44 124,284,710 107,358,184 13,884,882 4,085,686 17,970,568 451 ,429 12,916,727 13,368,156 806,817 24,335 8,412,697 131,265 146,141 665,804 23,036 643,597 484,381 13,337,274 52,418 23,500,411 626,205 915,883 3,015 35,827,196 2,243,139 3,543 1,894,106 17,616,921 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 47.
Equity Movements Opening Balance 1 August Deficit for the year - consolidated fund account 31 Jul 2019 ($) 31 Jul 2018 ($) (3 ,232,904,837) (3,633 ,860,643) (419,493,067) (496,695,204) Surplus for the year - trade and manufacturing account 4,418,934 4,602,413 Revaluation of External Debt due to foreign currency conversions Investment Equity Adjustment Adjustments of underlying account balances and Equity Previous years adjustments of term loans receivables Effects of exchange rate movements Cash remitted to Consolidated Fund Account Closing balance as at 31 July (39,095,400) (22,010,672) (42,301 ,029) 78,190,028 170,968 (6,354,140) (56,093,534) 895,563,662 (32,952,120) 91,905,096 587,344 (5,961,851) (3,679,379,215) (3,232,904,837) 48.
For the year ended 31 July 2019, the total amount of $266,756,419 in penalties was waived/ written off by the Fiji Revenue & Customs Service.

49 Tertiary Education Loans Scheme ("Scheme") is a fund intended to provide financing to Fijian students that qualify for higher education in approved institutions but are unable to support themselves financially.
The scheme provides loans to access higher education at affordable rates of interest (free or low-interest rate of loans) for equitable access to higher education in the country in support of the Fijian Government vision of "Building a Smarter Fiji".

The scheme in addition to tuition fees covers for accommodation transport costs, pocket allowances, books and study materials and other associated costs.
50 Correction of Error in Calculating ECAL A computation error occurred in calculating ECAL portion on the Departure tax.

The error resulted in an understatement of ECAL revenue and overtstatement of Departure Tax revenue recognised for the 2017-2018 financial year.
The error has been corrected by restating the affected financial statement line items for the period as follows: Departure Tax Environmental Levy 2018 147,494,943 150,497,950 Increase/Decrease 2018 (Restated) (7,965 ,720) 7,965 ,720 139,529,223 158,463,670 51 The Environment and Climate Adaptation Levy (ECAL) is a consortium of taxes on prescribed services, items and income.
During the 2018/2019 budget update, ECAL was amended to be applicable only on prescribed services with a turnover above $1 .25 million, with the exception of luxury vehicles, super yachts and income above $270,000.

In addition, the plastic bag levy was increased from 10 cents to 20 cents per bag.

ECAL proceeds are collected by the Fiji Revenue & Customs Service and administered by the Ministry of Economy in accordance with the Finance Management Act 2004 and Finance Instruction 2010.
This innovative fiscal financing tool has helped raise unprecedented levels of public finance to support climate change and environmental conservation programmes.

45 GOVERNMENT OF THE REPUBLIC OF FIJI NOTES TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS (cont ... ) FOR THE PERIOD ENDING 31 JULY 2019 52 Events After Reporting Date Post 2020, the COVID-19 crisis has had a devastating impact on the Fijian economy, business activity, employment and socio-economic conditions and public finances.
The Fijian Government introduced a number of measures to ensure the safety of our population and to support the economy and those affected.

Some of the measures and initiatives include: i.

Government had rolled out a number of initiatives to provide income support to those that have lost jobs and are on reduced hours in both the formal and informal sector.

This was also supported through the continuation of social welfare payments and other social protection initiatives.

ii.
ii.

Government provided unemployment support with direct cash transfers to those affected in the formal and informal sector and concessional loan funding for Micro, Small and Medium Enterprises (MSMEs).

Apart from this, loan repayment holidays were provided to both businesses and personal customers in partnership with the financial institutions.
Other forms of cash flow relief including deferment of tax payments, targeted wage support and low interest rate financing through the Reserve Bank of Fiji (RBF) were made available to businesses.

iii.

To support the vaccination drive, Government introduced the "No Jab No Job" policy.

iv.

Government also provided medical services through General Practitioners to Fijians who used to depend fully on the public health system for General Outpatient Services.
v. A wide range of taxes and duties were reduced, aimed at rebuilding the competitiveness of the tourism sector and support investments in other sectors of the economy.

The Environmental and Climate Adaptation Levy (ECAL) was reduced from 10 percent to 5 percent, the departure tax was reduced from $200 to $100, alcohol taxes were slashed by 50 percent and import tariffs were unilaterally reduced on around 2,000 items.
The 6 percent service turnover tax and stamp duties were completely abolished with the requirement of business licenses removed to help investors and private sector businesses grow.
Apart from some of these deeper taxation and regulatory reforms, existing businesses were provided relief through deferment of tax payments, repayment holidays on existing loans, cheaper access to financing through the Reserve Bank of Fiji, concessional working capital support through Government and other assistance to keep them afloat during these challenging times.

vi.
vi.

Government increased its level of borrowings post COVID-19 to sustain public spending and ensure an appropriate counter-cyclical fiscal response to the COVID-19 crisis.

vii.

Government completed the divestment of its 44 percent shares in Energy Fiji Limited to a strategic partner to help improve service delivery and efficiency.
46 GOVERNMENT OF THE REPUBLIC OF FIJI SEGMENTATION REPORT BY FUND CLASSIFICATION FOR THE PERIOD ENDING 31 JULY 2019 Segment Information (IPSAS 18.12-15) The Government Account is made up of three funds as follows: Schedule 6 • • • The Consolidated Fund Account, which consists of all items funded under the Consolidated Fund Accounts (CF As).

The operating fund is where the National Government Budget comes from.

Trading and Manufacturing Accounts (TMAs).


TMAs were established under the 1981 Finance Act to enable Government ministries and departments to undertake quasi-commercial operations for the purpose of trading or production of goods and services for sale to other departments, statutory bodies, or individuals.
Funding was provided by Government at the time of establishment and any surplus from activities in excess of the ceiling set when the original funding was allocated must be returned to the Consolidated Fund.

The monies returned are recorded as revenue in the accounts of budgetary central Government.

The Main Trust Fund Account consists of Trust Funds which Government are managing ( as Trustees) on behalf of designated signatories.
For the purpose of this report, we are only focusing on two primary reportable segments i.e.

the segmentation of Trade and Manufacturing Account from Fund 1 (Operating) and Fund 9 (Main Trust) combined.
Primary Reportable Segments 2019 Segment revenue Non exchange revenue - taxes, grants and transfers CFA ($) TMA ($) Consolidated Total Government ($) (2,861,764,184) (2,861,764,184) Exchange revenue - sale of goods and services (187,989,437) (17,689,401) (205,678 ,838) Exchange revenue - investments (130,859,163) Segment expenses Operating Expenditure Capital Expenditure VAT Interest Payments on Loans 13 ,270,467 .
2,102,122,411 1,133,129,915 38,118,137 326,735,388 (130,859,163) 2,115,392,878 1,133 ,129,915 38,118,137 326,735,388 Reconciled to aggregate net income 419,493,067 ( 4,418,934) 415,074,133 47 GOVERNMENT OF THE REPUBLIC OF FIJI SEGMENTATION REPORT BY FUND CLASSIFICATION FOR THE PERIOD ENDING 31 JULY 2019 Primary Reportable Segments 2019 (cont ... ) Schedule 6 Segment Assets Cash at Bank Accounts Receivable Prepayments Inventory Investments Term-Loans Receivable Segment Liabilities Accounts Payable Deferred Income Operating Trust fund True Trust fund Term Loans Payable - Treasury Bills Term-loans Payable Overseas Loans Term-loans Payable Domestic Loans Reconciled to net liability CFA ($) TMA ($) Consolidated Total Government ($) 332,357,862 201 ,420,488 1,070,745 1,313,895,388 650,225,067 (255,265,519) (4,760,309) (40,703,354) (164,604,625) (298,150,105) (1,455,397,778) (3,971,911,144) (3,691,823,284) 11 ,717,062 1,647,847 1,783,814 (9,931) (2,524,369) (170,354) 12,444,069 344,074,924 203 ,068,335 1,070,745 1,783,814 1,313,895,388 650,225 ,067 (255,275 ,450) (7,284,678) (40,873 ,708) (164,604,625) (298,150,105) (1 ,455,397,778) (3,971 ,911,144) (3,679,379,215) 48 GOVERNMENT OF THE REPUBLIC OF FIJI SUMMARY OF REVENUE FOR THE PERIOD ENDING 31 JULY 2019 Heads of Revenue Estimate 2019 ($) Actual Revenue 2019 ($) Operating Revenue 21 Direct Taxes ......... ... ....... .. .. ...... 1,011,315,373 754,429,587 22 Indirect Taxes ................ .. .... ..... .
2,400,813 ,947 2,065,348,735 23 Fees, Fines & Charges .. ... ........... .

158,034,252 133,087,675 24 Operating Revenue Sales ... ... ... .... .

27 Other Receipts ............ ..... .

... ..... 28 Reimbursements & Recoveries ......... 29 Grant Aid .

....... .. ..... .
....... .. ..... .

..... ... ....... ... 251 50,619,299 25,175 ,451 19,620,567 467 43,079,519 11,821,776 41,985,862 Operating Revenue Total 3,665,579,140 3,049,753,621 Schedule 7 Increase Decrease ($) ($) --- --- --- 216 --- --- 22,365,295 22,365,511 256,885,786 335,465,212 24,946,577 --- 7,539,780 13,353,675 --- 638,191,030 Investing Revenue Repayments of Term Loans 31 Receivable .. .

....... ... .. ... .. ... .. ..... .

32 Sales of Government Assets .. ........ 33 Dividends from Investments .. .
........ 34 Interest from Bank Balances .. ........ .. 35 Return of Surplus Capital from Investment .............. ..... .. ... .. .

.. ..

Term Loan 39 Receivable .... ... .. .. .

.. .... ..
.. .... ..

Investing Revenue Total Total Revenue 10,176,474 395,400,000 157,700,000 1,596,119 11,248,123 5,163,696 106,649,184 1,444,002 1,071,649 --- --- --- --- 390,236,304 51,050,816 152,117 5,938,574 6,354,140 415,566 --- --- 570,811,167 4,236,390,307 18 130,859,163 3,180,612,784 18 1,487,233 23,852,744 --- 441,439,237 1,079,630,267 49 GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COMPARISON FOR THE PERIOD ENDING 31 JULY 2019 Heads and Subheads of Revenue OPERATING REVENUE 21- DIRECT TAXES 1.
Income Tax 0 l .

Income Tax 02 .

Capital Gains Tax 03 .

Withholding & Dividend Taxes ................ .

.

Total .................... .. Net Decrease.

22-INDIRECT TAXES 1.

Value Added Tax Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) 820,548,090 607,700,313 212,847,777 780,618,435 49,674,993 141 ,092,290 1,011,315,373 24,957,774 121,771 ,500 754,429,587 24,717,219 19,320,790 256,885,786 256,885,786 45,105,780 825,724,215 01.
Value Added Tax ................... ....... .. 946,592,878 831 ,819,871 114,773,007 788,486,612 2.

Custom Taxes 0 I.

Fiscal Duty .

............................... ... .

488,331 ,988 440,514,255 02 .

Excise Duty 03 .

Export Duty .. .. .. .. ................... .. 04.

Import Duty .. .

.. ............ ... ... .... .. 6.

Service Turnover Tax 189,576,061 168,272,733 11,504,355 66,865,903 8,078,905 50,885,202 47,817,733 21,303 ,328 3,425 ,450 15,980,701 430,241 ,959 166,441 ,553 9,720,193 59,962,329 0 I.
Hotel Turnover Tax ...... ......... ..... .

130,757,229 89,565,778 41,191,451 97,871,902 7.

Water Resource Tax 01.

Water Resource Tax ...... .... .... .. .

79,618,892 73 ,641,286 5,977,606 64,289,698 9.

Departure Tax 0 I.

Departure Tax ......... .... .

.............. .

...... .

.

.

196,175,612 139,258,522 56,917,090 139,529,223 10.

Fish Levy Tax 0 I.

Fish Levy .... 12.

Stamp Duty 53,927 48,911 5,016 85,687 01.

Stamp Duty ............ .... ....... .... .. ........... .
111,417,230 85,170,458 26,246,772 85 ,266,235 13.

Luxury Vehicle Levy 01.

Luxury Vehicle Levy 14.

Telecommunication Levy 2,601 ,097 1,264,500 1,336,597 2,063 ,000 01.

Telecommunication levy ..... .

1,143,700 976,157 167,543 1,007,902 15. Credit Card Levy 0 I .

Credit Card Levy ................ .

... ... ... .. .. .... .

16.

Third Party Insurance Levy 01.

3rd Party Insurance Levy 19.

Health and Environment Levy 01.

Health Levy.

.

........ .... .


953 ,444 50 GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COMPARISON FOR THE PERIOD ENDING31 JULY 2019 Heads and Subheads of Revenue Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) 02.

Environmental Levy ... ...... .. ...... ... ... .

171 ,379,125 168,871 , 199 2,507,926 158,463,670 99.

Miscellaneous Fees and Receipts 01.

Miscellaneous Fees and Receipts 4,795,950 6,980,958 Total.

.

.

.

.

.

.

.

.

.


.

.

.

.

.

.

.

.

.

.

.

.

.

2,400,813,947 2;065,348, 735 Net Decrease .. ....... .... ... ... ... .. .

.

23 - FEES, FINES & CHARGES 01.

Dues 01.

Light Due - Port & Harbor... ......... 02.

Duty 2,185 ,008 2,185,008 1,528,220 337,650,220 2,005,911,627 335,465,212 01.

Stamp Duty ..... ........... ... ....... ... ... ... ....... 141 ,665 141 ,665 03.
Fees 350,850 663 ,913 555,738 6,200,512 307,339 1,231, 139 27,453 576,461 481 , 137 2,790 596,190 573,197 256,653 1,187,914 472,390 142,649 1,551 276 404,124 3,125 1,740,108 416,060 69,177 827,967 22 ,061 1,040 38,938 57,699 1,478 286,381 1,072,818 494,434 12,640,060 472,514 48,666 26,630 431,378 1,490,901 1,838,901 39 60,166 331,877 1,195,854 3,135,651 33,488,670 16,536,982 1,838,671 4,284,726 2,360 397,918 4,570,560 01.

Agricultural Produce and Inspection .. .. 02 .


Native Timber Measurement... ..... ..... .... .. .

03 .

Land and Survey Fees 04.

Mining Fees ....... ..... .

...... ... ... 06.

Passports ...... .

.

.. .

.

... .. .. .. ..... ............ 07.

Town Planning Fees ... ... ... .... .. .. ... .... ... .. 08.

Examination Fees ................ ... 09.

Government Day Schools-Fees .. 10.

Government Boarding Schools-Fees ..... 11.

Health Fumigation and Quarantine ...... .. ..... 12.
Hospital .. .. .. ...... ... .. ....... 13 .

Fiji School ofNursing .. .

14.

Cemetery Fees .. .. .... .

.. .

... ..... .

17.

Audit Fees ... .

.

· ··· ··· ······ ·· ········ ·· ··· ·· · · 18.

Court Fees .. 19.

Registration.

20.

Management Fee ... ...... .. .

...... ... ... .. .

... ... .

21.

LTA Fees and Fines .. ... .. .

... .. .

.. .... 23.

LTA Road User Levy .. .

... .. .. .

27.

Offshore Fisheries Management Fees .. .. ·· ···· ·· ·· · ·· 28.

Permit.

.

29.

Citizenship .. .


... ... .. ......... ...... .. 30.

Visa ... .. 31.

MSAF Fees ... .. .

... 32.Search Fees ... ...... .... .... ... .. .. ....... ... · · ··· · · · ·· ·· ·· 351 ,590 174,412 1, 181 ,971 623 ,151 15,359,793 603 ,292 67,967 1,261 ,236 409,833 1,751,096 2,452,314 67,102 288,176 1,837,716 2,476,484 38,640,184 14,919,439 1,919,031 1,229,574 75 .

Civil Aviation .. .

.

···· ··· ········· ··· ··· ·· 76.

Land Sales Revenue Fees .. ...... ... ... ... ...... 99 .
Miscellaneous Fees ..... ... .

... .... .... .

.... ... .

.

5,814,783 740 317,061 518,058 67,413 9,159,281 295 ,953 69,518 30,097 382,380 1,174,635 1,971 ,177 276 64,312 692,300 1,241 ,526 1,903 ,287 3,125 38,383,531 13,731 ,525 1,446,641 1,740,108 416,060 69,177 2,057,54 1 22,061 1,040 38,938 5,416,865 51 GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COMPARISON FOR THE PERIOD ENDING 31 JULY 2019 Heads and Subheads of Revenue 04.

Licenses 01.

Arms ....... ..... .. .... ... .. 02.


Banks ........ .

.. .. ... .

... ..... .

........ ... .

... .. .

.

03 .

Coasting ........ .. .. .. .... .

.. ...... .... ... .. ... .. .

.. .

.. .

.. 05.

Liquor.. .. .. .

06.

Trading .... .. 07.

Dogs .... .. ........... .

09.

Money Lenders .............. .. 10.

Hotels and Guest Houses ... .. ...... .. .... .. .......... .

11 .

License Insurance, Agents and Brokers .. .. .. .. .

12.

Telecommunications and Television ...... .. .... .. 14.
Fishing ... .

16.

Civil Aviation .... .. .. .... .................. .. .......... .. 17.

License- Security Industry .

.. ............ ..... .. .... .. 99.

Other... .... .... .. .. 05.
Rates - Public Works Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) ,205 3,920 3,201 150,866 845,704 510,173 17,903 46,982 160,624 49,411 7,468,409 9,471 25,992 2,116,440 01.
Water Charges ... .. ... .. .. .. .. .

......... .. .... .. 50,392,993 43,714,575 6,678,418 45,242,787 06.

Fees Royalties 01.

Royalties Timber .. ... .. .

.. .... .. .

.. .. ..... .. .

03 .

Royalties - Sand, Coral, Metal, etc .. .

298,858 354,074 55,216 296,213 07.

Fines 01.

Court Fines .. .. 08.

Administrative Fines and Penalty 4,040,996 1,446,585 2,594,411 1,814,480 02.

Administrative Fines and Forfeitures .. .. .. .. .... 1 - - - - - - - -- 25,605 --'-:..:..:.-+--- - Total .. .
.. .. .. ............. ........ .. .. .. ... .. .

.. ... .

.. ... .

.. Net Decrease .. .... .. ................... .. .. .. .... ... ....... .

158,034,252 31,691 - - - -~ - - - - - -..:2...:..:..:..4-____ __ - -+ - - - - - - - - - I 133,087,675 142,973,799 28,936,530 3,989,953 6,086 26,059 24,946,577 24 - OPERA TING REVENUE - SALES 02.

Sales - Cash .......... .. Total ......... ........ .. .

Net Increase ... ........ .. ...... .. ...... .. 27 - OTHER REVENUE AND SURPLUSES 01.
Surplus/Deficit from Agency 251 251 467 467 216 216 216 1,630 1,630 01.

RBF Revaluation Reserve Account... .. .. .. .

06.
Sales of items from Technical .. .. .. .. .. .. 3,000,000 4,615 1,964,015 26,618 22,003 1,035,985 2,090,262 11 ,583 52 Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) 15,174,846 56,041 4,873 8,653 4,095 16,513 ,923 1,339,077 61 ,243 30,000 104,649 3,575 5,202 30,000 99,776 14,386,719 67,217 16,239 4,598 8,653 520 3,583 ,050 ,262 52,896 266,028 8,385 2,640 201 ,908 4,239 850 10,492,853 34,401,166 GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COMPARISON FOR THE PERIOD ENDING31 JULY 2019 Heads and Subheads of Revenue 02.
Rent and Hire of Government Property 01.

Rental for Land .... .... ...... .. ...... 02.

Rental for Official Quarters .. .... ........ ...... .... 03 .

Rental for Buildings .. .. ... ........ .... ... ..... .... .

.

04.

Hire of Plant and Vehicles ..... .. ..... ... ......... 05 .

Hire of Vessels and Punts .

06.

Revenue from Rest Houses ... 03.

Commission Reven ue 01.

Commission .. ·· ····························· 99.

Other Revenue 01.

Sale of Photographs 02 .


Sales of P ublications ... .... ... .. .... .. .

..... .

03 .

Revenue from Production ofFilms ............... 04.

Survey & Sales of Navigation Publications .

... .

.. .

.. ..... .

.. 05.

Meat Inspection .... .

.. ... .

..... .

.

.

.

.

.

.. 06.

Veterinary and Animal Quarantine .... 108 82,995 470 411 ,946 21 ,951 14,035 368 59,952 275 593,952 18,457 10, 140 07.

Freight and Charter Receipts.

2,007,299 1,050,634 08.

Chemical Analysis 09.


Valuation Fees .... .

10.

Sale of Farm Product.

·· ··· ··· ·· · ··· ··· ······· · ........ .... .... 11.

Sale of Surplus Farm Produce .... .. ... .. ....... 13 .

Sale of Fish and Ice ... ... ...... ... ..... ......... 14.

Sale of Sheep and Wool .

......... .. .. ...... .. 17.

Agricultural Landlord and Tenant Tribunal ...... 19.
Drying and Storage Facilities 2,058 20,668 43 ,640 71,035 242,167 34,300 1,367 28,810 44,450 60,659 678,046 34,243 2,772 2,45 1 20 .

Board Members Fees .

.

.. ....... ... ...... ... .... 79,874 23 .

Agro Input Farmers Contribution .. .

24.

Pound Keeping 25 .

Sale of Animals by Auction .

.... .

.

.

.

.

.

.. .. .

.

.

.

99.

Other Revenue.

Total .. .. Net Decrease ... ............. ....... .... .... ......... ........ ... ... .. .... ... ... .
..... .... .. .... .. 25,747,808 50,619,299 124,995 32,640 3,016 1,184 17,086,615 43,079,519 53 GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COl\tIPARISON FOR THE PERIOD ENDING 31 JULY 2019 Heads and Subheads of Revenue 28 - REIMBURSEMENT AND RECOVERIES 11.

Reimbursement of Services 01.

Reimbursement for Meteorological Services ....... .

.................. .. 06.

Reimbursement-HA Low Cost Housing ........ .

07.

Reimbursement-PRE Housing Project.

.

99.


Reimbursement of W ALESI Digital Televisior 12.

Refund of Payments 03 .

Recoveries of Overpayments in Previous Years .... 04.

Care Programme 22.

Contributions for Capital Projects 02.

Rural Electrifications .. .

03 .

Project Contributions .. 23.

Contributions for Overseas Peace-Keeping 01.

United Nations Peace- keeping force .. .... .............. .

.

02 .

Multinational Force and Observers .... .

03 .


UN International Peacekeeping - .. ........... .

04.

UN Mission -IRAQ .... .

..... .... .... .

31.

MoE Technical Colleage Recovery Total ................. .

Net Decrease .. .. .... .

.. .... .. ........ ....................... .

29 - GRANTS IN AID 02.

NZ Government Grants .............. .. ..... .... ........ .

03 .

United Nations Development Programme..... .

.............. .

...... .

04.

European Union ... 05 .

China Government Grants .... .


.

06.

Japan Government Grants 08.

India Government Grants 99.

Other Grant Aid .......... ...... ...... .. .. ...... ..... .
Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) 510,189 550,459 40,270 2,826,300 757,400 948,275 824,155 50,505 600,971 2,333,272 66,755 50,505 2,333 ,272 2,826,300 500,459 3,509,103 1,313,000 347,304 996,174 818 19 799 343 3,500,000 7,000,000 4,000,000 5,632,469 25,175,451 4,772,001 12,348,784 2,499,782 4,565,304 2,897,091 11,821,776 2,490,802 22,810,323 18,038,322 1,863,797 4,127,112 13,184,630 41 ,985,862 4,127,112 13,184,630 35,350,064 22,365,295 3,500,000 2,434,696 4,000,000 2,735,378 15,844,477 13,353,675 7,351,575 2,563,097 4,709,006 20,942,757 12,348,784 22,544,284 635 ,985 12,984,769 2,240,406 24,676,484 49,461,174 Total.... .... ..... .......... Net Increase ... ..... .
.

.

.......... ... .

... .

.. 19,620,567 Total Operating Revenue ............. ..... ....... ............ .

3,665,579,140 3,049,753,621 47,181,351 663,006,870 3,079,416,368 Net Decrease .... ... .. .............. .. ... .. ..... ..... .. ... .

..... .
..... .

615,825,519 54 Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COMP ARIS ON FOR THE PERIOD ENDING 31 JULY 2019 Heads and Subheads of Revenue INVESTING REVENUE 31 - REPAYMENTS OF TERM LOANS RECEIVABLE 11.

Interest for Social Services Term Loans 0 I .

Interest Public Officers & Ministers 02 .

Interest Economic Service Term Loan .. .. ..... .

... ... .......... ....... .......... .

12.


Interest Economic Service Term Loan ............................................ .

13 .

Interest Fiji Sports Council ................ ......... .

340,000 340,000 122,392 472,500 102 122,392 102 112,488 100,139 360,000 339 14.

Interest PAFCO Loan ............. ......... ...... .

.

584,988 16.

Interest Term Loan & Advances 12.

Principal Social Services Term Loans 08.

Principal- PSC Tertiary Education ... 8,341,488 4,693,527 3,647,961 5,450,428 11.
Principal - Students Scheme ...... .

22.

Principal Term Loans Economic Service 02.

Principal - Copra Industry ..... .

.. .

04.

Principal - Fiji Pine ........... .

Total ...... ............ ... .... .................. .

.

Net Increase .......................... ... ......... ........ .

.

.

32 - SALES OF GOVERNMENT ASSETS 31 .

Sales Proceeds in Infrastructure Services .. .

91.

Proceed from sales ofFixed Assets Total .. Net Decrease ... ...... .

33 - DIVIDENDS FROM INVESTMENTS 01.


Investments in Social Services ...... .. .

.

02 .

Investments in Economic Services .. .

Investments in Infrastructure Services ...... ... .
1 - - - - - - - - - - - - ' - - - ' - - - -+ - - - - - - ' - - - - - ' ' - - -+ - - - - - - - - -+ -- 122,000,000 74,222,768 157,700,000 106,649,184 10,795 - - 47,777,232 ..:...:...l'--CL:..:=--!------'=-'-C...:..:....:..:....

:..-1 51,061,611 122,308,854 149,766,928 Total ....... ........ ... .

...... ... ...... .... .

Net Decrease.

34 - INTEREST FROM BANK BALANCES 02 .

Interest from Domestic Bank ... .

03.

Interest from Term Deposits Local .

.. ... ..... .

... .


Banks.......... .. Total ............ ... .. ... .... .... ... ..... .

Net Decrease ....... ............. .. .. ... ....... .... .

.. .

51,050,816 643,957 356,165 287,792 787,872 952,162 1,596,119 1,087,837 1,444,002 135,675 135,675 1,075,122 1,862,994 287,792 152,117 55 GOVERNMENT OF THE REPUBLIC OF FIJI DETAILED REVENUE COMPARISON FOR THE PERIOD ENDING 31 JULY 2019 Heads and Subheads of Revenue 35 - RETURN OF SURPLUS CAPITAL FROM INVESTMENTS 74.
Return of Surplus Capital from TMA Operations ..... .. .

... .

... .. .

... .

Total .............. ............. ............. .. .

.. .

... ... .... .. .

.

Net Increase .. 39 - SCHOLARSHIP BOND RECOVERY Schedule 8 Estimate for 2019 Actual Revenue 2019 Increase Decrease Actual Revenue 2018 ($) ($) ($) ($) ($) 5,938,574 5,938,574 6,354,140 6,354,140 415,566 415,566 415,566 5,961 ,851 5,961,851 01.
Payment Tenn Loan FAB ....... .. .. .......... · 1 - - - - - - - - - - - - -+ - - - - - - - -1 - - - - - - - - - - -+ - - - - - - - - -+ - - - - - - - - ' 18 Total.......... ....... .... .. .

.

.... ... .. .. .

.

18 570,811,167 130,859,163 5,424,554 445,376,558 439 952 004 18 18 18 21 ,618 21,618 165,023,264 Net Increase ........... ... ... .. .

Total Investing Revenue .......... ...... ... ... ... .... .... .

.

Net Decrease ...... ... ... ... ...... .. ...... .. .
SUMMARY OF REVENUE Operating Revenue .... .... ... .. .. ....... ........ .
Investing Revenue Grand Totals .. .. 3,665,579,140 3,049,753,621 570,811,167 130,859, 163 47,181 ,351 5,424,554 663 ,006,870 445,376,558 3,079,416,368 165,023,264 4,236,390,307 3,180,612,784 52,605,905 1,108,383,428 3,244,439,632 56 GOVERNMENT OF THE REPUBLIC OF FIJI STATEMENT OF EXPENDITURE AGAINST APPROPRIATION HEADS FOR THE YEAR ENDED 31 JULY 2019 Heads of Appropriation Original Budget 2019 Schedule 9 Redeployment Revised Estimate Actual Expenses (Over)/ Under GENERAL ADMINISTRATION Office of the President Office of the Prime Minister Office of the Attorney-General Ministry of Economy Ministry of iTaukei Affairs Ministry of Defence and National Security Ministry of Employment, Productivity and Industrial Relations Ministry of Foreign Affairs Office of the Auditor-General Fijian Elections Office Judiciary Parliament Office of the Director of Public Prosecutions Media Industry Development Authority Independent Commission Ministry of Disaster Management and Meteorological Services Ministry of Justice Fiji Corrections Service Ministry of Communication Ministry of Civil Services Ministry of Rural and Maritime Development Republic ofFiji Military Forces Fiji Police Force Peacekeeping Missions Total for General Administration SOCIAL SERVICES Ministry of Education, Heritage and Arts Ministry of Health and Medical Services Ministry of Housing and Community Development Ministry of Youth and Sports Higher Education Institutions Total for Social Services ($) ($) 3,315,607 24,101,299 14,875,031 120,447,250 15,826,900 6,277,656 16,703,255 46,964,800 6,623,600 --- --- --- --- --- --- --- --- --- 20,412,496 2,439,805 69,235,845 10,800, 112 7,654,587 300,000 31 ,013,654 15,525,649 8,137,300 41,127,700 64,951 ,202 51,994,353 21,678,299 103,252,091 193,509,871 80,695,931 --- --- --- --- --- --- --- --- --- 7,700,000 --- --- --- --- 2019 ($) 2019 ($) Expenditure ($) 3,315,607 3,234,643 24,101 ,299 15,334,744 14,875,031 120,447,250 15,826,900 6,277,656 16,703,255 46,964,800 6,623,600 22,852,301 69,235,845 10,800,112 7,654,587
 300,000 31 ,013 ,654 15,525,649 8,290,337 73,755,029 15,744,758 4,591,893 13,843,551 41,992,322 5,932,038 22,084,535 56,953,225 10,795,855 6,520, 139 28,375 27,836,042 11 ,135,532 8,137,300 5,384,585 41 ,127,700 35,164,496 64,951 ,202 59,694,353 21 ,678,299 103,252,091 193,509,871 44,647,475 58,277,493 14,480,624 98,202,536 150,335,237 80,964 8,766,555 6,584,694 46,692,221 82,142 1,685,763 2,859,704 4,972,478 691,562 767,766 12,282,620 4,257 1,134,448 271 ,625 3,177,612 4,390,117 2,752,715 5,963,204 20,303 ,727 1,416,860 7,197,675 5,049,555 43 ,174,634 80,695,931 66,208,753 14,487,178 975,424,488 10,139,805 985,564,293 790,774,217 194,790,076 535,365,713 334,960,248 41,422,577 --- --- --- 535,365,713 334,960,248 521,539,045 273,502,016 41 ,422,577 11 ,987,026 13,826,668 61 ,458,232 29,435,551 5,213,532 4,740,891 24,095,888 123,789, 107 --- --- 24,095,888 19,354,997 123,789,107 85,206,303 38,582,804 1,192,630,771 12,799,376 1,205,430,147 1,052,172,469 153,257,678 57 Ministry of Women, Children and Poverty Alleviation 132,997,238 12,799,376 145,796,614 140,583,082 GOVERNMENT OF THE REPUBLIC OF FIJI STATEMENT OF EXPENDITURE AGAINST APPROPRIATION HEADS FOR THE YEAR ENDED 31 JULY 2019 Heads of Appropriation Original Budget 2019 Schedule 9 Redeployment Revised Estimate Actual Expenses (Over)/ Under ECONOMIC SERVICES Ministry of Agriculture Ministry of Fisheries Ministry of Forests Ministry of Lands and Mineral Resources Ministry of Industry, Trade and Tourism Ministry of Sugar Industry Ministry of Public Enterprise Ministry of Local Government Total for Economic Services INFRASTRUCTURE SERVICES Ministry of Infrastructure and Transport Water Authority of Fiji Ministry of Waterways and Environment Fiji Roads Authority Total for Infrastructure Services ($) ($) 96,837,100 20,533,822 17,065,594 37,487,700 99,258,732 62,331 ,879 15,844,394 30,126,053 --- --- --- --- --- 6,003,460 --- --- 2019 ($) 2019 ($) Expenditure ($) 96,837,100 20,533,822 17,065,594 37,487,700 99,258,732
 68,335,339 15,844,394 30,126,053 62,891 ,340 16,474,371 14,873,740 34,117,697 75,302,753 60,987,069 12,480,953 13,557,819 33,945,760 4,059,451 2,191,854 3,370,003 23,955,979 7,348,270 3,363,441 16,568,234 379,485,274 6,003,460 385,488,734 290,685,742 94,802,992 165,226,900 349,264,200 69,955,686 563,056,946 1,147,503,732 --- --- --- --- --- 165,226,900 117,588,044 47,638,856 349,264,200 227,041,736 122,222,464 69,955,686 23,852,547 46,103,139 563,056,946 1,147,503,732 426,213,168 794,695,495 136,843,778 352,808,237 UNALLOCABLE Miscellaneous Services Pensions, Gratuities and Compassionate Allowances Finance Charges on Public Debt Total for Unallocable Services 567,864,017 46,221,100 341,416,599 (28,942,641) --- --- 538,921,376 46,221 ,100 310,395,098 34,647,442 228,526,278 11 ,573,658 341,416,599 326,735,388 14,681,211 955,501,716 (28,942,641) 926,559,075 671,777,928 254,781,147 Grand Total 4,650,545,981 --- 4,650,545,981 3,600,105,851 1,050,440,130 58 9 7 7 , 3 7 4 , 0 3 0 , 1 ) 9 6 4 , 5 6 6 , 1 1 ( 9 1 0 2 ) $ ( ) $ ( 0 0 0 , 0 0 7 , 7 ) $ ( 8 4 2 , 9 3 4 , 4 3 0 , 1 ) $ ( / ) r e v O ( ) G E S ( / , 7 5 0 , 7 5 9 9 5 4 , 4 1 9 , 9 5 6 0 3 , 5 1 8 , 7 3 3 1 4 , 1 3 0 , 8 7 0 8 6 , 2 6 5 , 1 6 1 5 1 7 , 7 3 9 , 7 8 6 9 5 9 , 5 5 1 , 5 8 5 7 0 , 4 0 0 , 8 0 1 1 8 9 , 0 2 7 , 3 5 9 5 8 , 4 0 4 , 1 7 9 2 4 4 , 7 4 6 , 4 3 9 3 1 , 3 0 9 , 3 7 3 1 , 8 1 1 , 8 3 6 5 7 , 8 3 7 , 6 5 ) $ ( 6 3 8 , 8 2 4 , 4 6 9 0 7 , 0 2 0 , 5 4 0 0 1 , 1 4 5 , 9 8
 7 8 0 , 5 0 8 , 7 8 1 7 4 1 , 7 6 1 , 0 1 8 1 6 1 , 2 3 4 , 8 3 1 3 0 3 , 8 3 9 , 3 4 2 1 4 7 , 8 6 7 , 9 8 1 0 2 , 5 9 4 , 1 9 4 , 1 0 0 0 , 0 0 2 , 9 0 0 1 , 1 2 2 , 6 4 6 1 2 , 7 3 8 , 1 7 9 0 7 , 4 1 3 , 4 6 9 2 0 , 5 1 7 , 5 0 5 0 , 1 8 3 , 2 9 5 6 , 2 5 9 , 4 ) 5 1 5 , 0 1 2 , 5 ( 7 7 2 , 0 4 2 , 1 4 4 0 , 3 8 6 , 6 ) 7 0 1 , 0 2 0 , 5 ( 2 1 9 , 9 3 2 ) 8 1 9 , 4 6 7 , 1 ( - - - - - - - - - - - - - - - 3 9 4 , 3 9 0 , 6 6 2 0 9 8 , 1 0 9 , 7 6 2 1 5 8 , 5 0 1 , 0 0 6 , 3 9 7 9 , 5 4 5 , 0 5 6 , 4 8 3 0 , 9 4 4 , 2 ) 2 5 4 , 1 0 2 ( .
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 , 8 5 1 9 9 7 , 3 7 9 , 2 4 1 1 3 4 , 0 4 8 , 7 2 1 - - - 7 7 2 0 0 6 , .2 2 6 , 4 5 2 7 5 , 0 2 9 , 5 2 - - - 3 6 2 7 7 0 , 9 6 5 , 2 5 7 8 2 , 0 4 5 , 5 2 7 6 4 9 1 5 , 9 7 0 , 3 4 6 7 7 , 1 2 8 , 1 1 2 6 8 , 5 8 9 , 1 4 1 5 2 9 9 2 , 9 1 6 , 0 5 1 5 4 , 5 7 1 , 5 2 7 6 5 , 0 2 6 , 9 1 0 3 6 , 1 6 6 1 , 1 0 4 , 4 3 7 5 7 , 2 4 9 , 0 2 4 7 1 , 1 6 4 , 9 4 0 2 2 1 6 6 , 8 9 2 , 4 4 0 9 4 , 8 5 8 , 0 3 2 0 4 , 1 7 7 , 8 1 1 6 6 , 3 3 0 , 5 2 0 , 4 1 2 1 , 8 4 5 , 1 3 8 , 3 1 2 6 , 3 5 7 , 9 4 0 , 3 0 4 1 , 9 7 5 , 5 6 6 , 3 8 6 3 , 6 1 4 , 9 7 0 , 3 8 4 6 , 4 4 9 , 0 0 8 , 2 1 6 1 1 8 , 7 0 4 , 2 0 7 6 0 0 , 3 4 5 , 5 0 6 9 9 7 , 2 4 7 , 3 3 1 2 5 1 , 5 6 5 , 2 6 8 9 5 , 1 9 0 , 5 4 1 2 4 0 , 3 2 1 7 5 1 , 2 5 7 , 1 3 5 4 , 4 2 0 , 1 8 - - - - - - - - - , s e n i F , s e e F s t p i e c e R & - - - - - - 0 2 8 , 3 6 7 , 1 0 0 0 , 0 0 2 , 2 5 1 - - - 2 3 5 , 4 6 5 , 6 4 4 8 , 3 6 2 , 7 1 4 2 0 , 1 7 6 , 3 1 - - - 3 2 1 , 8 4 2 , 1 1 6 9 6 , 3 6 1 , 5 4 7 4 , 6 7 1 , 0 1 0 0 0 , 0 0 4 , 5 9 3 4 8 9 , 1 1 0 , 6 9 8 8 , 7 9 3 , 1 1 3 2 , 8 7 6 , 1 2 0 0 , 4 4 4 , 1 9 1 1 , 6 9 5 , 1 4 9 9 , 2 6 8 , 1 - - - - - - - - - - - - - - - 8 1 - -
 - 8 1 6 , 1 2 4 8 0 , 4 4 2 , 6 0 4 1 , 4 5 3 , 6 4 7 5 , 8 3 9 , 5 1 5 8 , 1 6 9 , 5 0 0 0 , 0 0 2 , 5 5 1 4 8 1 , 9 4 6 , 6 0 1 0 0 0 , 0 0 7 , 7 5 1 8 2 9 , 6 6 7 , ) $ ( ) $ ( ) $ ( ) $ ( ) $ ( - - - 7 8 5 , 8 9 3 , 1 7 3 8 , 0 7 4 , 2 1 3 5 , 6 5 1 , 1 0 4 6 , 8 0 3 , 5 2 - - - 6 4 4 , 2 6 1 , 6 l a u t c A 7 1 0 2 ) $ ( - , 0 9 7 , 7 7 1 9 3 3 , 3 9 7 , 6 7 1 3 6 1 , 9 5 8 , 0 3 1 7 6 1 , 1 1 8 , 0 7 5 4 6 2 , 3 2 0 , 5 6 1 1 4 0 , 7 9 4 , 6 3 e u n e v e R g n i t s e v n I l a t o T 7 5 8 , 3 2 8 , 2 0 2 , 4 0 6 4 , 1 4 3 , 8 0 0 , 4 4 8 7 , 2 1 6 , 0 8 1 , 3 7 0 3 , 0 9 3 , 6 3 2 , 4 2 3 6 , 9 3 4 , 4 4 2 , 3 9 8 6 , 1 4 4 , 7 3 8 , 2 E U N E V E R L A T O T 2 3 9 , 4 8 6 , 6 2 8 7 8 5 , 7 2 8 , 4 5 4 2 5 , 1 4 9 , 5 2 8 7 9 7 , 5 4 4 , 5 1 7 7 1 5 , 8 6 3 , 0 4 8 8 5 5 , 4 4 9 , 4 9 6 3 3 7 , 2 4 1 , 3 9 5 0 7 9 , 9 3 2 , 2 7 2 4 0 , 3 3 2 , 1 6 3 1 6 , 2 0 2 , 6 1 1 6 1 6 , 7 5 8 , 9 6 1 6 4 , 0 4 3 , , 2 1 5 , 1 8 8 4 9 4 , 1 8 1 , 8 9 8 9 3 8 , 8 7 6 , 6 7 7 0 3 1 , 1 7 5 , 6 5 9 4 7 1 , 2 0 8 , 4 6 7 4 9 1 , 3 8 4 , , 8 6 1 , 9 2 0 , 1 8 2 1 , 8 6 1 , 9 2 0 , 1 7 8 9 , 6 1 4 , 7 8 9 0 0 0 , 6 1 8 , 1 3 0 , 1 1 1 4 , 6 7 4 , 0 9 8 5 5 2 ,
 4 4 3 , 3 6 7 9 3 5 , 1 4 2 , 6 1 1 4 4 2 , 6 5 7 , 1 9 1 8 1 6 , 7 5 1 , 6 5 8 1 8 , 0 5 4 , 0 4 1 1 1 7 , 0 9 5 , 0 6 7 2 0 , 2 1 8 , 5 5 0 7 6 , 9 0 4 , 5 4 1 , 1 2 7 3 , 4 2 9 , 0 2 2 , 1 5 0 6 , 4 7 5 , 3 4 0 , 1 8 1 8 , 6 6 2 , 2 7 1 , 1 2 2 1 , 7 6 0 , 1 5 9 2 8 2 , 6 5 1 , ~ ) $ ( ) $ ( ) $ ( ) $ { ) $ { l a u t c A 7 1 0 2 ) $ { 6 1 7 , 8 1 7 , 8 3 1 4 2 5 , 4 8 4 , 0 0 2 6 1 7 , 8 1 7 , 8 3 1 4 2 5 , 4 8 1 , 6 0 2 1 1 6 , 6 1 8 , 2 2 1 6 9 1 , 2 0 8 , 2 5 1 2 9 2 , 6 8 9 , 5 2 1 2 8 1 , 3 4 7 , 2 6 1 1 0 4 , 3 5 2 , 7 1 2 1 9 9 , 3 6 7 , 0 4 2 4 5 8 , 1 8 2 , 8 0 1 6 3 3 , 6 9 4 , 0 1 1 1 2 0 2 - , 3 0 2 , 9 3 3 0 4 2 , 3 0 9 , 4 4 3 3 9 7 , 9 5 5 , 5 8 2 7 9 5 , 5 5 0 , 0 7 3 3 8 2 , 0 5 7 , 6 6 3 0 9 1 , 8 7 7 , 8 1 2 s e c i v r e S c i m o n o c E l a t o T 1 4 9 , 7 6 2 , 8 0 2 4 3 9 , 7 6 2 , 8 0 2 6 5 2 , 7 7 2 , 1 7 1 4 5 1 , 4 4 6 , 7 1 2 2 2 3 , 3 7 9 , 3 7 1 9 4 8 , 0 5 1 , 0 6 3 , 1 1 9 5 , 5 3 4 , 5 7 5 , 1 7 6 6 , 6 5 3 , 0 2 6 4 3 4 , 5 4 5 , 1 2 9 1 6 1 , 5 3 3 , 9 8 5 9 0 3 , 5 7 0 , 0 6 1 0 2 2 , 3 7 3 , , 8 1 4 , 8 6 5 , 1 5 2 5 , 3 0 7 , 3 8 7 , 1 3 2 9 , 3 3 6 , 1 9 7 8 8 5 , 9 8 1 , 9 3 1 , 1 3 8 4 , 8 0 3 , 3 6 7 9 2 5 , 8 4 4 , 4 4 6 s e c i v r e S e r u t c u r t s a r f n I l a t o T
 1 6 9 , 0 8 6 , 4 8 8 1 0 , 3 7 6 , 5 4 4 1 6 9 , 0 8 1 , 2 9 9 1 3 , 8 1 5 , 0 7 9 4 0 , 1 4 4 , 8 9 0 6 5 , 2 3 9 , 7 0 1 7 7 1 , 8 8 2 , 2 6 8 1 0 , 3 7 6 , 7 3 4 5 0 4 , 9 3 6 , 2 3 2 8 6 4 , 4 9 7 , 6 5 4 0 1 8 , 7 3 3 , 1 2 4 0 5 7 , 9 7 5 , , 3 5 3 , 0 3 5 9 7 9 , 3 5 8 , 9 2 5 4 2 7 , 7 5 1 , 3 0 3 7 1 5 , 5 3 2 , 5 5 5 0 7 3 , 0 7 2 , 9 2 5 7 2 9 , 7 6 8 , , 1 2 2 , 6 4 6 5 3 , 1 5 9 , 8 5 6 1 5 , 1 1 4 , 1 3 3 6 5 0 , 1 2 2 , 6 4 7 9 2 , 1 0 0 , 5 6 2 4 4 , 7 4 6 , 4 3 7 3 1 , 8 1 1 , 8 3 0 0 1 , 1 2 2 , 6 4 0 3 6 , 9 8 5 , 9 6 7 8 6 , 6 5 9 , 6 3 6 0 7 , 6 7 4 , 7 3 3 1 4 , 0 8 8 , 4 3 8 6 9 , 3 1 9 , 5 3 8 8 7 , 0 0 3 , 8 3 3 8 8 3 , 5 3 7 , 6 2 3 9 9 5 , 6 1 4 , 1 4 3 1 1 0 , 3 0 5 , 1 9 2 0 9 0 , 6 4 7 , 6 7 2 6 2 1 , 2 8 4 , 1 0 9 , 4 1 5 7 , 9 8 0 , 7 2 2 , 5 1 5 8 , 5 0 1 , 0 0 6 , 3 9 7 9 , 5 4 5 , 0 5 6 , 4 6 3 8 , 4 3 1 , 1 4 7 , 3 3 9 5 , 4 7 2 , 0 6 0 , , ) 9 6 2 , 8 5 6 , 8 9 6 ( ) 1 9 2 , 8 4 7 , 8 1 2 , 1 ( ) 7 6 0 , 3 9 4 , 9 1 4 ( ) 2 7 6 , 5 5 1 , 4 1 4 ( ) 4 0 2 , 5 9 6 , 6 9 4 ( ) 4 0 9 , 2 3 8 , 2 2 2 ( r a e y e h t r o f s u l p r u S / ) t i c i f e D ( 3 6 GOVERNMENT OF THE REPUBLIC OF FIJI ESTIMATE AND ACTUAL BUDGET RESULT FOR THE PERIOD 2017- 2019 Schedule 13 Actual 2017 ($) Actual 2018 ($) Estimate 2019 ($) Actual 2019 ($) REVENUE Operating R~venue Investing Revenue 2,800,944,648 36,497,041 3,079,416,368 165,023,264 3,665 ,579,140 570,811 , 167 3,049,753 ,621 130,859,163 TOT AL REVENUE 2,837,441,689 3,244,439,632 4,236,390,307 3,180,612,784 EXPENDITURE Operating Expenditure Interest Payments on Loans Capital Expenditure Value
 Added Tax 1,722,012,741 276,746,090 1,025 ,601 ,794 35,913 ,968 2,029,871 ,453 291 ,503,011 1,382,283,665 37,476,706 2,387,293,016 341,416,599 1,852,246,734 69,589,630 2,102,122,411 326,735,388 1, 133,129,915 38,118,137 TOT AL EXPENDITURE 3,060,274,593 3,741,134,835 4,650,545,979 3,600,105,851 BUDGET RESULT (222,832,904) (496,695,203) (414,155,672) (419,493,067) 64 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Part B: Report on the Financial Statements of Government Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 7 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI The Office of the Auditor-General – Republic of Fiji The Office of the Auditor-General is established as an Independent Office by the Constitution of the Republic of Fiji.
Its roles and responsibilities include audit of the accounts of the Consolidated Fund and Financial Statements of Government and Annual Appropriation Statement required to be included in the Whole of Government annual report for a financial year under the Financial Management Act 2004.

The audit extends to audit of the accounts of all money received or held by a State entity, whether or not for purposes of Government.

These audits are carried out by the Auditor-General on behalf of Parliament.
At least once every year, the Auditor-General must report to Parliament on the audits conducted and on other significant matters the Auditor-General wishes to bring to the attention of Parliament.

This report satisfies these requirements.

As a result of its mandate, the Office of the Auditor-General has a distinctive view of the entire public sector of matters affecting financial and non-financial performance.
We use this perspective to achieve our vision of promoting public sector accountability and sustainability through our audits by providing comprehensive analysis and value-adding recommendations.

The Office of the Auditor-General notes the impact of its reports to Parliament on the ordinary citizens and strives for accuracy and high-quality reporting including recommendations which are not only value-adding to the entity subject to audit but its customers, taxpayers and the general public as well.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 8 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Acronyms Term ADB AFS AMMU CA CE COP 23 COSO CP ECAL EDF EU FBOS FCCC FCS FDB FI FICAC FMA FMIS FNCPD FNPF FNU FPO FRCS FRA FSG FX FY GDP GWE IBRD IC IFAD IHRDP IPSAS IPSASB IRD ISA ISSAI ITC JEE LTA NAMF NDP NFAMF OAG PFTAC PR RA SARUP Definition Asian Development Bank Agency Financial Statement Asset Management and Monitoring Unit Control Activities Control Environment Conference of the Parties 23 Committee of the Sponsoring Organisations of the Treadway Commission Cabinet Paper Environment & Climate Adaptation Levy European Development Fund European Union Fiji Bureau of Statistics Fijian Competition & Consumer Commission Fiji Corrections Service Fiji Development Bank Finance Instructions Fiji Independent Commission Against Corruption Financial Management Act Financial Management Information System National Council For Persons With Disabilities Fiji National Provident Fund Fiji National University Fiji Procurement Office Fiji Revenue and Customs Service Fiji Roads Authority Financial Statements of Government Foreign Exchange Financial Year Gross Domestic Product Government Wage Earner International Bank for Reconstruction and Development Information and Communication Control International Fund for Agricultural Development Integrated Human Resource Development Programme International Public Sector Accounting Standards International Public Sector Accounting Standards Board Inland Revenue Department International Standards on Auditing International Standards for Supreme Audit Institutions Information Technology and Computing Services Job Evaluation Exercise Land Transport Authority National Asset Management Framework National Development Plan National Fixed Asset Management Framework Office of the Auditor-General Pacific Financial Technical Assistance Public Relations Risk Assessment Suva Ariel Roads Upgrading Project Report on 2018- 2019 Financial Statements of
 Government & Annual Appropriation Statement 9 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Term SEG SLG SPO TELS TMA TSF UNESCAP WOG Definition Standard Expenditure Group Standard Liability Group Strategic Planning Office Tertiary Education Loans Scheme Trading and Manufacturing Account/Activity Tuna Stabilisation Fund United Nations Economic and Social Commission for Asia and the Pacific Whole of Government Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 10 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI TABLE OF CONTENTS 1.0 SUMMARY 1.1 Introduction 1.2 Results of Our Audits 1.3 Financial Performance, Position and Sustainability 1.4 Understanding Internal Controls 1.5 Reference to Comments 1.6 Report Structure 2.0 CONTEXT 2.1 Legislative Framework 2.2 Annual Financial Statements of Ministries and Departments 2.3 Consolidation Process 2.4 Role of the Auditor-General 2.5 Reporting to Parliament 2.6 Types of Audit Opinion 3.0 RESULTS OF OUR AUDITS – MINISTRIES & DEPARTMENTS 3.1 Key Findings and Audit Conclusion 3.2 Quality of Draft Agency Financial Statements 3.3 Timeliness of Financial Reporting 1 1 2 3 10 11 11 12 12 12 13 13 15 15 16 16 19 20 3.4 Timeliness of provision of management comments and signing of financial statements 22 3.5 Year-End Closing Process 4.0 FINANCIAL STATEMENTS OF GOVERNMENT 4.1 Introduction 4.2 Submission of Draft Financial Statements of Government 4.3 Results of our Audits 5.0 ASSESSMENT OF INTERNAL CONTROLS 5.1 Introduction 5.2 Internal Control Framework 6.0 SIGNIFICANT AUDIT MATTERS 6.1 Accounting policies 6.2 Variances in Revenue 6.3 Records Not Provided 6.4 Detailed Listing not maintained for Main Trust Fund Account - Recurring 6.5 Variances between FMIS GL and Bank Reconciliation Statement 6.6 Internal Control Weaknesses for Ministries and Departments Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 22 24 24 25 26 28 28 28 34 34 34 35 36 37
 38 11 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 6.7 Variance in Payroll APPENDIX A: AUDIT OPINION RESULTS APPENDIX B: OTHER MEASURES OF FINANCIAL VULNERABILITY APPENDIX C: ASSESSMENT OF FINANCIAL GOVERNANCE APPENDIX D: MODIFIED AUDIT OPINION – MINISTRIES AND DEPARTMENTS APPENDIX E: GLOSSARY APPENDIX F: DETAILS OF VARIANCES IN REVENUE APPENDIX G: RECORDS NOT PROVIDED APPENDIX H: DETAILED LISTINGS NOT MAINTAINED FOR MAIN TRUST ACCOUNTS 38 40 42 49 53 65 67 71 73 APPENDIX I: STATEMENT DETAILS OF VARIANCE BETWEEN FMIS GL AND BANK RECONCILIATION 75 APPENDIX J: INTERNAL CONTROL WEAKNESS AND BOARD OF SURVEY NOT CARRIED OUT 77 APPENDIX K: DETAILS OF VARIANCE IN PAYROLL 81 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 12 Report of the Auditor-General of the Republic of Fiji 1.0 SUMMARY 1.1 Introduction All Ministries and Departments prepare annual agency financial statements.
Permanent Secretaries and management of these agencies are responsible for the preparation and fair presentation of the financial statements in accordance with requirements of the Financial Management Act (FMA) 2004 and other applicable laws and regulations.
This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error, selecting appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

The Permanent Secretary for Economy is responsible for consolidating the financial information of all Ministries and Departments into the Financial Statements of Government (FSG).
These financial statements separately disclose expenditures against Appropriation Heads for sectors which include General Administration, Social Services, Economic Services and Infrastructure Services.

Certain expenditures that cannot be allocated to any of these sectors are reflected as unallocable.

Unallocable expenditures include miscellaneous services, pensions, gratuities and compassionate allowances and finance charges on public debt.
The accounts of other public entities1 have not been consolidated with those of government based on the decision of the Ministry of Economy.
Budget sectors General Administration Sector •Office of the President, Office of the Prime Minister and Department of Immigration, Office of the Attorney-General, Ministry of Economy, Ministry of iTaukei Affairs, Ministry of Defence and National Security, Ministry of Employment, Productivity and Industrial Relations, Ministry of Foreign Affairs, Judiciary, Parliament, Office of the Director of Public Prosecutions, Ministry of Disaster Management and Meteorological Services, Ministry of Justice, Fiji Corrections Service, Ministry of Communication, Ministry of Civil Service, Ministry of Rural and Maritime Development, Republic of Fiji Military Forces, Fiji Police Force and Peacekeeping Missions Social Services Sector •Ministry of Education, Heritage and Arts, Ministry of Health and Medical Services, Ministry of Housing and Community Development, Ministry of Women, Children and Poverty Alleviation, Ministry of Youth and Sports and Higher Education Institutions Economic Services Sector •Ministry of Agriculture, Ministry of Fisheries, Ministry of Forests, Ministry of Lands and Mineral Resources, Ministry of Industry, Trade and Tourism, Ministry of Sugar Industry, Ministry of Public Enterprise and Ministry of Local Government Infrastructure Sector • Ministry of Infrastructure and Transport, Ministry of Waterways and Environment and grants paid to Water Authority of Fiji and Fiji Roads Authority.
1 Other public entities are entities other than Ministries and Departments Report on 2018- 2019 Financial Statements of Government & Appropriation Statement 1 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 2018 - 2019 Budget Government expenditures were guided by the following objectives2: • Ensure adequate funding is provided for infrastructure development to continue to upgrade • roads, bridges and jetties, and improve access to isolated regions; Improve access to quality education in Fiji through continuation of free education, hiring of additional teachers, transportation assistance and funding support for tertiary education; • Continue to improve health services in Fiji by hiring more qualified doctors & nurses, extending access to private general practitioners, upgrading existing health facilities and supporting new public-private partnerships (PPP) in the health sector; • Ensure the entire country is provided with safe drinking water, consistent power supply and effective sewerage disposal services; • Continue support towards SME development, including the Youth Entrepreneurship Scheme, in order to empower people to raise incomes with innovative business ideas; • Continue to fine tune social protection programmes so that they are well-targeted and sensitive to the special needs of the poor, disabled, elderly and the disadvantaged; • Promote land development for residential purposes, encourage home ownership through funding support and explore options for securing feasible PPPs for housing developments; • Expand the provision of legal services to all districts and towns in the country; • Accelerate the implementation of new public sector reform initiatives in the civil service, SOEs and public financial management; • Set aside contingency resources for disaster rehabilitation & recovery and pursue risk-sharing initiatives by providing house insurance, crop insurance, and bundled insurance packages; • Allocate sufficient budgetary resources to progress the implementation of various • commitments
 related to climate change; Invest in Fiji’s primary industries as a strategy to reduce poverty, manage urban migration, expand exports, create employment, promote food security and progress rural development; • Ensure sufficient resources are allocated for Fiji’s hosting of the Asian Development Bank (ADB) Annual Meeting in 2019; • Ensure remuneration rewards for civil servants are based on productivity improvements and improved service delivery; • Maintain law & order and strengthen border security; and • Promote investments in other priority sectors identified in Fiji’s NDP and Green Growth Framework.
The financial position and expenditure of Government against the approved budget, have been considered against these contexts in this report.

1.2 Results of Our Audits We issued 37 audit opinions which included one for the Financial Statements of Government and 36 for Agency Financial Statements of Ministries and Departments.

The details of the results of our audits are discussed in Chapter 3 and Appendix A.
2 Economic and Fiscal Update Supplement to the 2018 – 2019 Budget Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 2 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Quality and Timeliness of Financial Statements Financial Statements of Government • A modified audit opinion with emphasis of matters and other matters was issued on 10 January 2022, which was after the legislative deadline of 30 April 2020.
• The Permanent Secretary for Economy signed the audited financial statements on 06 January 2022.

• We received the first acceptable draft financial statements for audit on 30 April 2020 with other amended draft financial statements received on 05/10/21, 25/10/21 and 19/11/21 respectively.

Ministries and Departments • We issued unmodified opinions for 19 or 53% of the 36 agency financial statements compared to 24 unmodified opinions issued in 2018 which reflects a slight decrease for 2019.
The remaining financial statements for 17 Ministries were issued with modified audit opinions.

• The submission of draft financial statements for 21 or 58% of Ministries/Departments were timely while 15 or 42% were significantly late after the set deadline on 31 October 2019.

However, 26 or 72% of the draft financial statements were of good quality while 10 or 28% required audit and accounting adjustments after submission for our audit.
• Comments on draft management letters for 22 or 61% of Ministries/Departments were received on time and audited accounts for 24 or 67% of Ministries/Departments were signed and returned on time.

Delayed submissions of draft financial statements contributed to delays in our audits.
Delays were also attributed to the following: • Correction of errors and omissions on the draft financial statements submitted for audit; • Various accounting adjustments passed; • Delays in the submissions of management comments for issues raised in draft management letters; and • Documents required for audit were not provided on time.
1.3 Financial Performance, Position and Sustainability Each year, the Permanent Secretary for Economy prepares the Financial Statements of Government and the Annual Appropriation Statement in accordance with the provisions of the FMA 2004, Financial Instructions (FI) 2010 and Cash Basis International Public Sector Accounting Standards (IPSAS) 2017.

These statements provide a consolidated view of the revenues, expenses, assets and liabilities and cash flows of State agencies excluding controlled entities.
The statements also reflect actual expenditure against approved and revised budget by sectors and appropriation heads and revenue collected by economic type.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 3 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Financial Snapshot The key financial statement items namely expenditure, revenue, cash and cash equivalents, term loans receivables, investments, trust fund accounts, term loans payable and equity are explained below.
Understanding Financial Performance (Statement of Revenue and Expenses) Table 1.1 provides a snapshot of revenue and expenses for 2019 in comparison to 2018.
Table 1.1: Revenue and Expenses Snapshot Description 31/07/19 31/07/18 Direct Taxes Indirect Taxes Fees, Fines and Charges Operating Revenue Sales Other Receipts Reimbursements and Recoveries Grant Aid Total Operating Revenue Repayments of Term Loan Receivable Sale of Government Assets Dividends from Investments Interest from Bank Balances Return of Surplus Capital from Investment Term Loan Receivable Total Investing Revenue Trade and Manufacturing Operations ($) 754,429,587 2,065,348,735 133,087,675 467 43,079,519 11,821,776 41,985,862 3,049,753,621 ($) 825,724,215 2,005,911,627 142,973,799 1,630 34,401,166 20,942,757 49,461,174 3,079,416,368 Increase/ (Decrease) ($) (71,294,628) 59,437,108 (9,886,124) (1,163) 8,678,353 (9,120,981) (7,475,312) (29,662,747) 11,248,123 6,011,984 5,236,139 5,163,696 106,649,184 1,444,002 6,354,140 1,397,889 149,766,928 1,862,994 5,961,851 18 130,859,163 21,618 165,023,264 3,765,807 (43,117,744) (418,992) 392,289 (21,600) (34,164,101) 17,689,401 17,970,568 (281,167) Total 3,198,302,185 3,262,410,200 (64,108,015) Operating Expenditure Capital Expenditure Total General Administration Services Operating Expenditure Capital Expenditure Total Social Services Operating Expenditure Capital Expenditure Total Economic Services Operating Expenditure Capital Expenditure Total Infrastructure Services 715,445,797 61,233,042 776,678,839 694,944,558 69,857,616 764,802,174 987,416,987 56,157,618 1,043,574,605 122,816,611 162,743,182 285,559,793 171,277,256 620,356,667 791,633,923 890,476,411 60,590,711 951,067,122 125,986,292 240,763,991 366,750,283 173,973,322 589,335,161 763,308,483 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 20,501,239 (8,624,574) 11,876,665 96,940,576 (4,433,093) 92,507,483 (3,169,681) (78,020,809) (81,190,490) (2, 696,066) 31,021,506 28,325,440 4 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Description 31/07/19 31/07/18 Operating Expenditure Capital Expenditure Total Miscellaneous Services Pensions, Gratuities and
 Compassionate Allowance Value Added Tax Interest Payments on Loans Trading and Manufacturing Operations Total Unallocable ($) 70,518,319 232,639,405 303,157,724 ($) 107,932,560 421,337,810 529,270,370 Increase/ (Decrease) ($) (37,414,241) (188,698,405) (226,112,646) 34,647,442 36,956,687 (2,309,245) 38,118,137 326,735,388 13,270,467 37,476,706 291,503,011 13,368,156 641,431 35,232,377 (97,689) 412,771,434 379,304,560 33,466,874 Total Expenditure 3,613,376,318 3,754,502,992 (141,126,674) Key Financial Ratio Operating Margin3 1.45 1.52 Increase from previous year Decrease from previous year There was an overall decrease in revenue by $64.1 million or 2%, which was mostly driven by decreases in direct taxes, fees, fines and charges, reimbursement & recoveries, grant aid and dividends.
Expenditure for general administration, social services, infrastructure services and unallocable services increased while expenditure for economic and miscellaneous services decreased, resulting in an overall decrease of $ 141.1 million or 4% in 2019.

The net operating result with and without the inclusion of capital expenditures is shown in Figure 1.1 below.
Figure 1.1: Underlying Net Operating Result (Five Year Trend) s n o i l l i m $ 1000 800 600 400 200 0 -200 -400 -600 869 340 -176 -250 808 -218 890 718 -492 -415 31/12/2015 31/07/2016 (7 months) 31/07/2017 31/07/2018 31/07/2019 Net Operating Result with Capital Expenses Net Operating Result without Capital Expenses Years Source: Financial Statements of Government for 2015 - 2019 3 Operating margin benchmark is > 1.0 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 5 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Net operating balance (with capital expenditure) remained in deficit in 2019 as in the last four years.
The net operating deficit decreased by 16% from $492 million in 2018 to $415 million in 2019.

With capital expenses excluded, Government’s net operating balance recorded a surplus of $718.1 million for 2019 (2018: $889.8 million).

Payroll Details Established staff and government wage earners include full-time employees on contractual basis and project officers employed for specific projects within Ministries/Departments.
The components of payroll expenditure included personal emoluments, superannuation contributions (FNPF), various allowances and overtime payment.

Payroll costs and the number of employees from 2015 to 2019 are shown in Table 1.2 below.
Table 1.2: Payroll Details 2015 2016 (7 months) 2017 2018 2019 Established Staff Actual Payroll Expenditure $781,720,316 $458,175,830 $800,546,116 $900,309,981 Number of Employees Average Cost per employee 23,932 $33,451 23,477 $19,516 23,126 $33,803 26,283 $34,254 $957,057,437 27,253 $35,118 Government Wage Earners Actual Payroll Expenditure Number of Employees Average Cost per employee $45,089,205 4,351 $10,363 $28,140,510 4,520 $6,226 $53,462,154 4,642 $11,517 $58,949,182 4,263 $13,828 $59,914,459 4,384 $13,667 Overall Total Actual Payroll Expenditure $826,809,521 $486,316,340 $854,008,270 $959,259,163 Number of Employees 27,477 28,574 27,997 30,546 $1,016,971,896 31,637 Source: Number of employees were extracted from Payroll Reports of Government The payroll expenditure has been steadily increasing from 2015 to 2019 with concurrent increases in total number of employees.
The notable decline in 2016 was due to the financial period being only for 7 months.

The total payroll expenditure in 2019 was over $1 billion for 31,637 employees.

The largest number of employees was recorded in 2019, an increase of 1,091 or 4% from 2018 with the largest increase recorded for Social Services Sector.

The overall average payroll cost per employee in 2019 was $32,145 compared to $31,404 for 2018, an increase by 2%.
Figure 1.2 below shows the budgeted and actual established staff with government wage earners and employee numbers from 2015 to 2019.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 6 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 1.2: Payroll Trends 1,200 1,000 s n o i l l i M ) $ ( l s e e y o p m e f o .
o N 31/12/2015 31/07/2016 31/07/2017 31/07/2018 31/07/2019 Established Staff-Budgeted ($m) Established Staff-Actuals ($m) GWE-Budgeted ($m) GWE-Actuals ($m) No.

of Employees Understanding Financial Position (Statement of Assets and Liabilities) Table 1.3 provides an overview of assets and liabilities for 2019 in comparison to 2018.
Table 1.3: Assets and Liabilities Snapshot Description 31/07/19 ($) 31/07/18 ($) Cash and Cash Equivalents Accounts Receivable Prepayments Inventory Term-Loans Receivable Equity Investments Total Assets Liabilities Accounts Payable Deferred Income Trust Fund Account Term Loans Payable - Treasury Bills Term Loans Payable - Overseas Loans Term Loans Payable - Domestic Loans 344,074,924 203,068,335 1,070,745 1,783,814 650,225,067 1,313,895,388 2,514,118,273 255,275,450 7,284,678 205,478,333 298,150,105 1,455,397,778 3,971,911,144 286,653,731 153,553,750 1,081,477 3,129,786 572,199,307 1,335,906,060 2,352,524,111 164,938,055 6,061,580 197,701,126 185,283,183 1,455,292,843 3,576,152,161 Total Liabilities 6,193,497,488 5,585,428,948 Increase/ (Decrease) ($) 57,421,193 49,514,585 (10,732) (1,345,972) 78,025,760 (22,010,672) 161,594,162 90,337,395 1,223,098 7,777,207 112,866,922 104,935 395,758,983 608,068,540 Net Liability Key Financial Ratios Current ratio4 (3,679,379,215) (3,232,904,837) (446,474,378) 0.54 0.52 Increase from previous year Decrease from previous year 4 Current ratio benchmark is > 1.0 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 7 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Total assets increased by $161.6 million or 7% due to increases in cash and cash equivalents by $57.4 million, accounts receivable by $49.5 million and term loans receivable by $78.0 million.
The major increase in term loans receivable is due to the increase in financial assistance to students through the Tertiary Education Loan Scheme.

Liabilities increased by $608.1 million or 10.9% due to increases in accounts payable by $90.3 million and term loans payable by $508.7 million.

The increase in term loan payable was due to the increases in government borrowing, specifically through treasury bills and government bonds.

Total assets were $2.5 billion against total liabilities of $6.2 billion.
The Government has yet to record all its property, plant and equipment in the Statement of Financial Position.

Understanding Sustainability Financial sustainability is defined as the ability of Government to maintain existing programs and meet existing creditor requirements without increasing the burden on the economy.

It is measured by the ratio of Government debt to the Gross Domestic Product (GDP).
The total Government debt as a percentage of GDP is an indication of debt sustainability relative to the production of goods and services.

Table 1.4 below shows the debt sustainability of Government for the last five years.
Table 1.4: Movement in Debt Sustainability to GDP FY Ended 31/12/15 Total Debt GDP Debt to GDP Ratio $4.2 billion $9.2 billion 46% 31/7/16 (7 Months) $4.5 billion $9.8 billion 46% 31/7/16 (7 Months) $4.5 billion $9.8 billion 46% Source: Financial Statements of Government 2015 - 2019 31/7/17 31/7/18 31/7/19 $4.7 billion $9.9 billion 47% $5.2 billion $11.3 billion 46% $5.7 billion $11.7 billion 49% There is an increase in debt to GDP ratio which indicates that there is slightly more burden of debt against the total production of goods and services by the Government.
Financial Flexibility A good debt indicator is financial flexibility which shows the increase in financial resources or revenue to respond to increasing financial commitments either by expanding revenue or increasing the debt burden.

This indicator shows the percentage of total debt repayments against the total revenue for the economy.
A lower percentage of debt to be repaid from total revenue is a good indicator for Government as this shows that a larger percentage of revenue is available to be used for other Government programs.

Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 8 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Table 1.5 and Figure 1.3 below shows the debt financial flexibility of Government for the last five years.
Table 1.5: Movement in Debt Financial Flexibility FY Ended 31/12/15 Debt Repayment $1,286 million 31/7/16 (7 Months) $433 million 31/7/17 31/7/18 31/7/19 $664 million $674 million $1.1 billion Revenue $2.8 billion $1.5 billion $2.9 billion $3.3 billion $3.2 billion Debt Repayment to Revenue 46% 29% 23% 21% 34% Source: Financial Statements of Government 2015 - 2019 Figure 1.3: Movement in Debt Financial Flexibility 3,500 3,000 2,500 2,000 1,500 1,000 500 0 s n o i l l i m ) $ ( t n u o m A Movement in Debt Financial Flexibility 3,244 46% 2,794 2,837 1,286 29% 1,501 433 23% 21% 1,132 664 674 3,198 34% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 31/12/2015 31/12/2016 (7 months) 31/07/2017 31/07/2018 31/07/2019 Years Debt Repayment Revenue Debt Repayment to Revenue Financial Vulnerability Financial vulnerability measures the total exposure of Government to exchange rates and other market risks through its dependence on external borrowings.
The lesser the proportion of total external borrowings in comparison to total debt, the better it is for the Government.

Table 1.6 below shows the financial vulnerability measure of Government for the last five years.
Table 1.6: Movement in Financial Vulnerability Measure FY Ended 31/12/15 31/7/16 (7 Months) 31/7/17 31/7/18 31/7/19 External Debt $1.2 billion $1.3 billion $1.4 billion $1.4 billion $1.4 billion Total Debt $4.2 billion $4.5 billion $4.7 billion $5.2 billion $5.7 billion External Debt to Total Debt 29% 28% 29% 28% 25% Source: Financial Statements of Government 2015 - 2019 Government has a debt mix of approximately 25% external borrowing against 75% domestic borrowings.
Refer to Appendix B for other measures of financial vulnerability.

Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 9 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 1.4 Understanding Internal Controls Good internal controls provide reasonable assurance that Ministries or Departments are achieving their objectives relating to operations, reporting and compliance.
We assess the controls used by the Ministries/Departments using the following five key elements: (i) Control environment – actions, attitudes and values that influence daily operations; (ii) Risk assessment – processes for identifying, assessing and managing risk; (iii) Control activities – policies, procedures, and actions taken to prevent or detect errors; (iv) Information and communication – systems to inform staff about control responsibilities; and (v) Monitoring activities – oversight of internal controls for existence and effectiveness.
When we identify that internal controls in any of these elements are missing or are not operating as intended, we refer to them as control deficiencies (audit finding).

If we 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, we refer to this as a significant audit finding.
If we identify a deficiency (audit finding) with any of these internal controls as part of our audits, we report the finding to the entity’s management.
The internal controls for the Ministries and Departments were assessed and categorised as either effective, generally effective or ineffective as follows: Rating Internal control assessment  Effective  Generally effective  Ineffective No deficiencies identified in internal controls Deficiencies identified in internal controls Significant deficiencies identified in internal controls Summary of control assessments across the whole of government and by Sectors are shown in Table 1.7 below: Table 1.7: Summary of Control Assessments Information and Communication Control (IC) Sector Control Environment No.
of Ministries/Departments Control Activities Risk Assessment (CE) (RA) (CA) General Administration Effective Generally Effective Ineffective 5 11 5 Social Services Effective Generally Effective Ineffective Economic Services Effective Generally Effective Ineffective 1 2 2 2 5 1 3 10 8 1 1 3 2 4 2 6 10 3 1 - 4 3 2 3 13 3 5 2 1 2 3 3 2 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement Monitoring Activities (MA) 4 13 4 1 1 3 2 4 2 10 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Sector Control Environment No.
of Ministries/Departments Control Activities Risk Assessment (CE) (RA) (CA) Infrastructure Services Effective Generally Effective Ineffective - 2 - - - 2 - 2 - 1 1 - Information and Communication Control (IC) Monitoring Activities (MA) - 1 1 It is noted that the internal controls for majority of Ministries and Departments are collectively effective.
Detailed discussions on assessment of internal controls and deficiencies noted have been reported in the following respective sector reports and in Chapter 5 and Appendix C of this report: 1.

2019 Audit Report on Economic Services Sector (Parliamentary Paper No.

24 of 2021) 2.

2019 Audit Report on General Administration Sector (Parliamentary Paper No.

25 of 2021) 3.

2019 Audit Report on Infrastructure Sector (Parliamentary Paper No.

26 of 2021) 4.
26 of 2021) 4.

2019 Audit Report on Social Services Sector (Parliamentary Paper No.

27 of 2021) 5.

Remaining 2019 Audit Report on General Administration, Social Services and Economic Services and Infrastructure Services Sectors (Parliamentary Paper No.

109 of 2021) This report summarises our analysis of the financial position, performance, sustainability and timeliness and quality of financial reporting of the whole of Government.
The report also includes the results of internal control assessments of respective Ministries and Departments.

It is important to note that the deficiencies detailed in this report were identified during our audit and may have been subsequently resolved by the agency.

These have been considered in this report as they impacted the overall system of control of the Ministries and Departments as at 31 July 2019.
1.5 Reference to Comments Responses provided by the Ministry of Economy have been incorporated in this report where applicable.

Responses from other Ministries and Departments have been incorporated in the sector reports.
1.6 Report Structure Chapter Description Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Appendices Provides a summary of the report Provides context for audit findings and conclusions and types of audit opinion Evaluates the audit opinion results, timeliness and quality of reporting Financial Statements of Government Assess the strength of internal controls in ministries & departments Discusses significant audit matters in the 2019 Financial Statements of Government Appendices containing Assessment, Audit Opinions and Glossary Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 11 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 2.0 CONTEXT 2.1 Legislative Framework The following legislation establishes the financial accountability frameworks and legislative time frames to complete financial statements audits for Ministries and Department.
Refer to Table 2.1 below.
Table 2.1: Legislative Framework Entity Type Legislative Framework Financial Government Statements of • Financial Management Act 2004 • Public Standards Sector International Accounting (IPSAS) financial reporting under cash basis of accounting Legislative Timeframe 30th April Ministries & Departments • Financial Management Act 2004 • Finance Instructions 2010 31st December Financial Management Act 2004 (FMA 2004) states the following principles of responsible finance management: (a) (b) (c) (d) (e) to manage finance over a medium term on a responsible and transparent basis; to manage revenues and expenditure in such a way as to achieve prudent levels of debt; to ensure value for money in the use of money and resources; to manage contingent liabilities in a prudent manner; and to report transparently in accordance with relevant accounting and statistical standards.
The Minister for Economy is responsible for managing the financial affairs of the Government as a whole in accordance with the requirements of the Constitution of Republic of Fiji and the FMA 2004 and with due regard to the principles of responsible financial management.
In addition, the Permanent Secretary of a Ministry/Department is responsible for managing the financial affairs of the entity in accordance with the requirements of the FMA 2004 and with due regards to the principles of responsible financial management.
2.2 Annual Financial Statements of Ministries and Departments Each Ministry/Department must prepare the following statements as required by Section 71 (1) of the Finance Instructions 2010 (FI 2010) as part of annual financial statements: • Statement of receipts and expenditure; • Profit and loss statement for each trading and manufacturing activity (where applicable); • Appropriation statement; • Statement of assets and liabilities for each trading and manufacturing activity (where applicable); • Notes to the statement of assets and liabilities for each trading and manufacturing activity (where applicable); • Statement of losses; Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 12 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI • Trust account statement of receipts and payments (where applicable).
On 29 May 2019, the Permanent Secretary for Economy issued Circular No.

09/2019 – Closing of Accounts, Processes & Procedures to all Ministries/Departments to submit the 2019 draft annual financial statements to the Auditor-General by 31 October 2019.

Except for Trading and Manufacturing Accounts (TMA) which are accounted for on accrual basis, Ministries/Departments prepare their financial statements using FMA 2004 and FI 2010.
Ministries/Departments must prepare and make publicly available, for each financial year, an annual report which must be tabled in Parliament by the responsible Minister.

The annual report must include the audited annual financial statements and audit report issued by the Auditor- General for the financial year.

The audited financial statements are used by a broad range of users such as parliamentarians, non- governmental organisations, donor agencies, employees, suppliers, lenders and the general public.
The Auditor-General’s audit opinion on these financial statements gives reasonable assurance to the users whether the financial statements are accurate and can be relied upon.
2.3 Consolidation Process The accounts of Ministries and Departments are consolidated with those of the Ministry of Economy using International Public Sector Accounting Standards (IPSAS): Financial Reporting under Cash Basis of Accounting reporting requirements, Cabinet Decision 277 of 2010 - Adoption of Cash Basis IPSAS and disclosures made as required by FMA 2004.

Additional statements are prepared in accordance with modified cash basis of accounting.
Consolidated financial statements include State-agencies which are part of the national budget estimates and financials of those agencies outside the budget, such as TMAs and Trust Fund Accounts, as required by law.

Intra-economic entity transactions, receipts and expenditures are eliminated during consolidation.
2.4 Role of the Auditor-General The Constitution of the Republic of Fiji states that at least once in every year, the Auditor-General shall inspect, audit and report to Parliament on - (a) (b) (c) the public accounts of the State; the control of public money and public property of the State; and all transactions with or concerning the public money or public property of the State.
In the report, the Auditor-General must state whether, in his or her opinion – (a) transactions with or concerning the public money or public property of the State have been authorised by or pursuant to the Constitution or any written law; and (b) expenditures have been applied for the purpose for it was authorised.
In addition to the above, the Auditor-General is responsible on behalf of Parliament, to audit – (a) the accounts of the Consolidated Fund; Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 13 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI (b) the Financial Statements of Government and the Annual Appropriation statement required to be included in the Whole of Government Annual Report for a financial year under the FMA 2004; and (c) the accounts/financial statements of all state entities required to be included in the annual report for a financial year.
The Auditor-General must satisfy himself or herself that - (a) the accounts have been faithfully and properly kept; (b) expenditure has been properly authorised, properly applied and otherwise properly accounted for: (c) where applicable, all reasonable precautions have been taken to safeguard the collection of public money and trust money and other money and that the laws, directions and/or instructions relating to its collection have been duly observed; (d) where applicable, expenditure of money appropriate by Parliament has been applied to the purposes for which the money was appropriated; and (e) provisions of the Constitution of the Republic of Fiji and of the FMA 2004, and of any other law relating to money or property subject to his or her audit, have been complied with in all material respects.
The Auditor-General may conduct audits in the manner considered appropriate but must ensure that they are conducted in a competent manner having regard to assessment of effectiveness of any relevant internal control system.

The Auditor-General must carry out the audit in accordance with the relevant provisions of the standards on auditing issued by the Fiji Institute of Accountants or other relevant standards considered appropriate.
Following the completion of an audit, the Auditor-General must give an opinion on each set of financial statements audited.

In addition, a management letter should be issued to the responsible authority for each entity audited.

The Auditor-General’s responsibility is to express an opinion on these financial statements based on his or her audit in accordance with the International Standards on Auditing (ISA).
The public sector equivalent standard is International Standards for Supreme Audit Institutions (ISSAI).

Those standards require the Auditor-General to comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the figures and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 14 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 2.5 Reporting to Parliament At least once every year, the Auditor-General must report to Parliament on audits completed under the Audit Act 1969.
In addition, a report of the Auditor-General to Parliament about an audit must be submitted to the Speaker to Parliament within 9 months after the financial year in which the audit relates or within a longer period appointed by resolution of Parliament.

The Act also requires 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 this report, include control weaknesses which could cause or is causing severe disruption to the process or on the ability of an auditee to achieve process objectives and comply with relevant legislation.

It is likely that these issues may have an impact on the operations of the entities in future, if necessary action is not taken to address them.
If any time in the opinion of the Auditor-General, serious irregularities have occurred in the receipt, custody or expenditure of public moneys or in the receipt, custody, issue sale, transfer or delivery of any stamps, securities, stores or other Government property or in the accounting for the same, he or she shall bring the matter to the notice of the - (a) (b) Minister responsible for finance; and Responsible authority and the Minister of the entity subject to audit.
2.6 Types of Audit Opinion In accordance with ISA, we express an unmodified opinion when the financial statements are prepared in accordance with the International Public Sector Accounting Standards (IPSAS) under the cash-basis of accounting and with relevant legislative requirements.

This type of opinion indicates that material misstatements, individually or in the aggregate, were not noted in our audit, which would affect the financial statements of an agency.
Modified Opinions: We issue a qualified opinion when having obtained sufficient appropriate audit evidence, we conclude that misstatements, individually or in the aggregate, are material, but not pervasive, to the financial statements; or we are unable to obtain sufficient appropriate audit evidence on which to base the opinion, but the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive.
An adverse opinion is expressed when we, having obtained sufficient appropriate audit evidence, conclude that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.

We issue a Disclaimer of Opinion when we are unable to obtain sufficient appropriate audit evidence on which to base the opinion, and we conclude that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.
We include an Emphasis of Matter and / or Other Matter paragraph in the audit report to highlight an issue that will help the users better understand the financial statements.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 15 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 3.0 RESULTS OF OUR AUDITS – MINISTRIES & DEPARTMENTS We audit the financial statements of Ministries and Departments to provide reasonable assurance about whether the financial statements are free from material misstatements.
3.1 Key Findings and Audit Conclusion We issued 36 audit opinions on the 2019 financial statements of Ministries and Departments out of which 19 or 53% were unmodified opinions while 17 or 47% were modified opinions.

This indicated that 19 agency financial statements did not contain material misstatements.

Introduction In addition to the Financial Statements of Government, each year, we also audit the financial statements of Ministries and Departments to provide assurance on their reliability.
The Ministry of Economy advised all Ministries and Departments to provide the 2019 draft agency financial statements to the Auditor-General by 31 October 2019.

If an agency complies with the monthly and quarterly reporting requirements set by the FI 2010 throughout the year, it should be able to prepare and present a high-quality financial statement in a timely manner.
We assessed the quality and timeliness of financial statements by considering: • Year - end closing process – whether accounts were closed-off by the due date; • Timeliness – whether completed 2019 draft financial statements were submitted for audit by the agreed date; • Quality – the extent of accounting and auditing adjustments made during the audit; • Management comments – time taken (in days) by Ministries/Departments to submit management comments on audit findings; and • Signing of financial statements – time taken (in days) to submit signed audited financial statements.
Our assessment criteria and the result for each Ministry/Department are included in Appendix C and the summary of the whole of government assessments of timeliness and quality are shown in Table 3.1 below.

Table 3.1: Summary of Timeliness and Quality Assessment Compliance to Year-End Process No.
of Ministries/Departments Timeliness of Financial Statement Timeliness of Management Comments Quality of Financial Statements Effective Generally Effective Ineffective Total 12 17 7 36 24 2 10 36 12 9 15 36 16 6 14 36 Timeliness of Signing of Financial Statements 20 4 12 36 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 16 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI It is noted that most Ministries/Departments were effective or generally effective in complying with the year-end closing processes, quality of the financial statements and timeliness of signing audited financial statements.
However, some Ministries/Departments were rated as ineffective as follows: • untimely submission of draft financial statements – 42% of the 36 Ministries/Departments • untimely submission of management comments – 39% of the 36 Ministries/Departments • untimely signing of audited financial statements -33% of the 36 Ministries/Departments Audit Opinion Results Table 3.2 summarises the types of audit opinions issued on the 2018-2019 financial statements by sectors.
Table 3.2: Audit Opinions Issued for FY 2018 - 2019 Sector General Administration Social Services Economic Services Infrastructure Services Total Modified Opinion (Qualified) 7 3 5 2 17 Unmodified Opinion 14 2 3 - 19 The summary and details of the agencies that fall under each sector and the opinion issued on the financial statements have been reported in the four sector reports submitted to Parliament.
Modified Opinions We issued modified opinions on 17 (47%) of the 36 financial statements of Ministries and Departments.

The key reasons for the modified audit opinions, as discussed in Appendix D have been reported to the management of the respective agencies and in the various sector reports to Parliament.

Refer to Table 3.3 for Ministries/Departments with modified audit opinion and the key areas.
Table 3.3: Key Areas for Modified Audit Opinion – Auditor’s Reports New Key Area/emphasis of matter  Recurring Key Area/emphasis of matter Ministries/Departments Revenue Main Trust Fund Account Expenditure Key Areas for Modified Audit Opinion Record Management the Prime Minister and General Administration Office of Department of Immigration Ministry of Employment, Productivity and Industrials Relations Ministry of Foreign Affairs Judiciary Ministry of Disaster Management and Meteorological Office           TMA Cash Receivables Board of Survey  Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 17 Expenditure Key Areas for Modified Audit Opinion Record Management TMA Cash Receivables Board of Survey REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Ministries/Departments Revenue      Republic of Fiji Military Forces Fiji Police Social Services Ministry of Education, Heritage and Arts Ministry of Health and Medical Services Ministry of Women, Children and Poverty Alleviation Economic Services Ministry of Agriculture Ministry of Fisheries Ministry of Forests Ministry of Lands and Mineral Resources Ministry of Sugar Industry Infrastructure Services Ministry of Infrastructure and Transport Ministry Environment of Waterways and Unmodified Opinions Main Trust Fund Account                                     We issued unmodified opinions on 19 or 53% of the 36 financial statements for Ministries and Departments with emphasis of matters and other matters in a number of Auditor’s Reports.
Refer to Table 3.4 for Ministries/Departments with unmodified audit opinion and with emphasis of matter/other matter.

Table 3.4: Ministries/Departments with Unmodified Audit Opinion ✔ Unmodified with emphasis of matter and/or other matter Ministry/Department 1.

Office of the President 2.

Office of the Attorney General 3.

Ministry of Economy 4.

Ministry of iTaukei Affairs 5.

Ministry of Defence and National Security 6.

Parliament 7.

Office of the Director of Public Prosecutions 8.


Ministry of Justice 9.

Fiji Corrections Service 10.

Ministry of Communication 11.

Department of Information, Technology and Computing Services (ITC) 12.

Ministry of Civil Service 13.

Ministry of Rural and Maritime Development 14.

Peacekeeping Missions 15.

Ministry of Housing and Community Development 16.

Ministry of Youth and Sports 17.

Ministry of Industry, Trade and Tourism 18.

Ministry of Public Enterprise 19.


Ministry of Local Government Emphasis of Matter/Other Matters ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 18 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Common Key Findings A total 236 common key findings were reported in the sector reports across the 36 Ministries and Departments.

The findings are categorised according to the account areas as shown in Figure 3.1 below.
Figure 3.1: Common Audit Findings across Ministries/Departments s a e r A t n u o c c A Others Main Trust Governance Payroll Underline Accounts PPE Revenue Expenditure Board of Survey FS Trading & Manufacturing Account Inventory Capital Projects Records Management Common Key Findings 10 7 23 22 19 1 3 3 8 8 10 0 27 26 16 63 20 30 40 50 60 70 No.of Audit Findings 3.2 Quality of Draft Agency Financial Statements We assessed the quality of financial statements by the extent of audit/accounting adjustments made to draft financial statements throughout the audit which indicate the effectiveness of the agency’s internal review processes to identify and correct errors before financial statements are provided for audit.
Refer to the table below for the rating.

Rating Quality of draft financial statements assessment  Effective Generally effective  Ineffective No adjustments or resubmission of financial statements were required Adjustments on operating results/net assets were less than 1% (< 1%) • Adjustments on operating results/net assets were more than 1% (> 1%) • Re-submissions of draft financial statements Of the 36 Ministries and Departments, 26 or 72% submitted quality draft financial statements for audit.
The quality of draft financial statements submitted by 10 Ministries and Departments were considered unsatisfactory/ineffective.

Refer to Figure 3.2 for details.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 19 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 25 20 15 10 5 0 Figure 3.2: Quality of Draft Financial Statements Quality of Draft Financial Statements (Q) EFFECTIVE of Public Prosecutions, Ministry •Office of the President, Office of the Prime Minister, Office of the Attorney General, Ministry Defence and National Security, Ministry of Employment, Productivity and Industrial Relations, Ministry of Foreign Affairs, Judiciary, Parliament, Office of the Director of Disaster Management and Meteorological Services, Ministry of Justice, Fiji Corrections Service, Department of Information and Technology & Computing Communications, Ministry of Civil Service, Ministry of Rural and Maritime Development, Republic of Fiji Military Forces, Fiji Police Force, Peacekeeping Missions, Ministry of Youth and Sports, Ministry of Agriculture, Ministry of Industry, Trade and Tourism, Ministry of Sugar and Ministry of Public Enterprise Information, 24 10 2 Effective Generally effective Ineffective GENERALLY EFFECTIVE •Ministry of Infrastructure and Transport, Ministry of Local Goverment INEEFFECTIVE • Ministry of Economy, Ministry of iTaukei Affairs, Ministry of Education, Heritage and Arts, Ministry of Health and Medical Services,Ministry of Women,Children and Poverty Alleviation, Ministry of Fisheries, Ministry of Forests, Ministry of Lands and Mineral Resources, Ministry of Housing and Ministry of Waterways and Environment 3.3 Timeliness of Financial Reporting To assess the timeliness of acceptable draft financial statements, we have compared the date the draft financial statements were due according to the deadline stated in the Finance Instructions 2010 and the date it was received.
Rating  Effective  Generally effective  Ineffective Timeliness of draft financial statements assessment Acceptable draft financial statements received before or on 15 October 2019 Acceptable draft financial statements received on or before 31 October 2019 Acceptable draft financial statements received after 15 November 2019 15 or 42% of Ministries and Departments did not meet the due date for submission of draft financial statements for audit.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 20 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Refer to Table 3.5 below for details: Table 3.5: Submission of Draft Financial Statements by 31 October 2019 Met the timeline X Did not meet timeline Ministry/Department Meeting Timelines General Administration 1.

Office of the President 2.

Office of the Prime Minister and Department of Immigration 3.

Office of the Attorney General 4.

Ministry of Economy 5.


Ministry of iTaukei Affairs 6.

Ministry of Defence and National Security 7.

Ministry of Employment, Productivity and Industrial Relations 8.

Ministry of Foreign Affairs 9.

Judiciary 10.

Parliament 11.

Office of Director of Public Prosecution 12.

Ministry of Disaster Management and Metrological Service 13.

Ministry of Justice 14.

Fiji Corrections Service 15.

Department of Information and Communication 16.

Department of Information, Technology and Computing Services 17.
Ministry of Civil Service 18.

Ministry of Rural and Maritime Development 19.

Republic of Fiji Military Forces 20.

Fiji Police Force 21.

Peacekeeping Missions Social Services 22.

Ministry of Education, Heritage and Arts 23.

Ministry of Health and Medical Services 24.

Ministry of Housing and Community Development 25.

Ministry of Women, Children and Poverty Alleviation 26.

Ministry of Youth and Sports Economic Services 27.

Ministry of Agriculture 28.

Ministry of Fisheries 29.


Ministry of Forests 30.

Ministry of Lands and Mineral Resources 31.

Ministry of Industry, Trade and Tourism 32.

Ministry of Sugar Industry 33.

Ministry of Public Enterprises 34.

Ministry of Local Government Infrastructure Services 35.

Ministry of Infrastructure and Transport 36.
Ministry of Waterways and Environment     X X X X    X      X    X X X X  X X X     X X  Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 21 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Timeliness of provision of management comments and signing of 3.4 financial statements To assess the timeliness of provision of management comments and signing of financial statements, we have compared the date the draft management letter and audited financial statements were issued to the entity and the date management comments and signed accounts were received.
Rating Internal control assessment Timeliness of Management Comments  Effective  Generally effective  Ineffective Timeliness of Signed Accounts Received  Effective  Generally effective  Ineffective Within 14 days from the issue of Draft Management Letter Within 21 days from the issue of Draft Management Letter After 21 days from the issue of Draft Management Letter Within 5 days from the issue of Financial Statements for signing Within 15 days from the issue of Financial Statements for signing After 15 days from the issue of Financial Statements for signing Comments on draft management letters for 22 or 61% of Ministries/Departments were received on time and audited accounts for 24 or 67% of Ministries/Departments were signed and also returned on time.
Refer to Appendix C for details.

3.5 Year-End Closing Process A quality financial statements preparation process will reduce the risk of untimely, inaccurate and unreliable financial reporting.

On 29 May 2019, the Permanent Secretary for Economy issued Circular No.

09/2019 to Permanent Secretaries, Heads of Departments, High Commissioners and Ambassadors in Fiji Overseas Missions in which procedures for closing of 2019 accounts and timelines were detailed.
The key focus areas in the Circular include: • Cancellation of unprocessed purchase orders by 12 July 2019 • Retirement of imprests by 19 July 2019 • Processing of payments by 29 July 2019 • Clearance of stale cheques by 5 August 2019 • Closing date for journal adjustments by 7 August 2019 • Processing of virements by 23 August 2019 • Completion of reconciliations by 29 August 2019 • Submission of arrears of revenue returns by 30 August 2019 • Annual Board of Survey on Drawings Account cheques by 30 August 2019 • Clearance of Inter-departmental clearance accounts by 30 August 2019 When Ministries and Departments achieve the key focus areas by the due dates, they are more likely to prepare accurate and timely draft financial statements for audit.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 22 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI There were 10 key focus areas in the 2019 closing of accounts which we have classified into either effective, generally effective or ineffective as follows: Rating Year-end close process assessment  Effective  Generally effective  Ineffective All 10 key processes completed by due date Five of 10 key processes completed within two weeks of due date Less than five of 10 key processes completed within two weeks of due date Of the 36 Ministries and Departments, twelve (12) completed all processes by the due dates and seventeen (17) completed 5 of 10 key processes within 2 weeks of due dates and were categorised as effective and generally effective, respectively.
Seven (7) Ministries and Departments were ineffective as they completed less than 5 of 10 key processes within two weeks of the due date.

Refer to Figure 3.3 below.
Figure 3.3: Compliance with Year-End Closing Processes Compliance to Year End Procedures (YE) EFFECTIVE GENERALLY EFFECTIVE •Office of the President, Office of the Attorney General, Ministry of Defence and National Security, Ministry of Foreign Affairs, Parliament, Office of the Director of Public Prosecution, Ministry of Justice, Fiji Corrections Service, and Communication, Information, Technology & Computing Services, Peacekeeping Missions, Ministry of Industry, Trade and Tourism Department Information of of Department, Ministry Service, Ministry of Rural •Office of the Prime Minister and Department of Immigration, Ministry of Economy, Ministry of Employment, Productivity and Industrial Relations, Judiciary Disaster Management and Meteorological Services, Ministry of and Martime Civil Development, Republic of Fiji Military Forces, Fiji Police Forces, Ministry of Education, Hertiage and Arts, Ministry of Youth and Sports, Ministry of Agriculture, Ministry of Sugar, Ministry of Public Enterprise, Ministry of Local Government and Ministry of Infrastructure and Transport, Ministry of Waterways and Environment 7 INEEFFECTIVE •Ministry of iTaukei Affairs, Ministry of Health and Medical Services, Ministry of Women, Children and Poverty Alleviation, Ministry of Housing, Ministry of Fisheries, Ministry of Forests, Ministry of Lands and Mineral Resources.
18 16 14 12 10 8 6 4 2 0 17 12 Effective Generally Effective Ineffective Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 23 Report of the Auditor-General of the Republic of Fiji 4.0 FINANCIAL STATEMENTS OF GOVERNMENT 4.1 Introduction The Permanent Secretary for Economy prepares the consolidated financial statements of Government annually.
These financial statements are prepared in accordance with the Cash-basis IPSAS reporting requirements and Cabinet Decision 277 of 2010.

Additional disclosures are also made in accordance with the requirements of FMA 2004.

Some statements forming part of the financial statements were drawn up using modified-cash basis balances from the FMIS general ledger.
Consolidated Fund Reporting The FMA 2004 requires that all public money is to be paid into the Consolidated Fund unless it is required to be paid to another fund or retained by the authority receiving it by written law.

Trust money is not payable into the Consolidated Fund, except for payments made in error or not public money and refunds of unclaimed money.

Withdrawals can only be made from the Consolidated Fund under an appropriation made by law.
This report covers the following transactions for the financial year: • Operating revenue including taxes, dividend revenue from investments including those from TMA operations; • Expenditures incurred for unallocable items; • Government borrowings and repayments; • Government guarantees and other contingent liabilities; and • Government assets and liabilities.
Consolidated Trust Account FMA 2004 states that trust money is to be accounted for separately from public money and other money and is to be kept in a separate bank account.

Trust monies are to be utilised for purposes related to the objectives of the trust and accounted for, banked, invested, reported and otherwise controlled in accordance with FI 2010.

This report covers the trust fund receipts and payments for the financial year.
Appropriation Statement Expenditure of money appropriated by an Appropriation Act from the Consolidated Fund or any other fund can be incurred only in accordance with the authorisation effected by the Appropriation Act.

Ministries and Departments specified in the Appropriation Act concerned are responsible for its administration.
The Permanent Secretary for agencies may authorise the transfer or virement of any unspent amount in an appropriation category administered by a Budget Sector agency other than for a Constitutional body to another appropriation category within the head of appropriation.
Report on 2018- 2019 Financial Statements of Government & Appropriation Statement 24 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI An appropriation made by an Annual Appropriation Act lapses at the end of the financial year to which it relates except where the Minister has authorised the carry over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date, for use in the following year, subject to such conditions as the Minister specifies in the authorisation.
The Minister may with the approval of Cabinet, authorise the redeployment of amounts appropriated by the most recent Annual Appropriation Act for administration by the Ministry to the heads of appropriation and appropriation categories to one or more Ministries and Departments.
As per section 10 (1) of the FI 2010, the Permanent Secretaries of the agencies may authorise the transfer of budgeted funds as follows: (a) out from SEG 1 or 2 (Established and Unestablished Staff) but shall not transfer funds into SEG 1 or 2; (b) into and out of one or more of the following operating SEGs (SEGs 3, 4, 5, 6, or 7); (c) from the operating SEGs (SEGs 1, 2, 3, 4, 5, 6, or 7) to the capital SEGs (SEGs 8, 9, or 10) but not from capital to operating or from capital to capital; and (d) virement within SEG 13 to meet the consequential VAT component of the virements in (a), (b) and (c) above.
In addition, the Permanent Secretary for Economy may authorise the transfer of the following budgeted funds in respect of all agencies: (a) within each of SEGs 1 or 2 or from SEG 1 into SEG 2 or vice versa; (b) within each of capital expenditure SEGs (SEGs 8, 9, or 10) or from SEG 8 into either SEG 8, 9, or 10 or vice versa, as the case may be; and (c) virement within SEG 13 to meet the consequential VAT component of the virements in (a) and (b) above.
This report covers payments to Ministries and Departments through appropriation, redeployment of funds, virements, expenditures incurred and unspent balances.

Quality of Financial Report The quality of the Financial Statements of Government largely depends on the reliability of the information provided to the Ministry of Economy by other Ministries and Departments.
4.2 Submission of Draft Financial Statements of Government We received the first complete draft Financial Statements of Government for audit on 30 April 2020.

Following this, amendments were made on additional disclosures and correction of errors and omissions.

Refer to Table 4.1 below for details.
Table 4.1: Various Submission of Draft Financial Statements of Government for Audit Draft Financial Statements First draft Second draft Third draft Final draft Date Received 30/04/20 05/10/21 25/10/21 19/11/21 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 25 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 4.3 Results of our Audits The Permanent Secretary for Economy signed the 2018/2019 Financial Statements of Government on 06 January 2022.
A modified audit opinion with emphasis of matters and other matters on the financial statements was issued after the legislative deadline of 30 April 2020.

Basis for Qualified Audit Opinion Included in the Trust Fund Account balance of $205,478,333 in the Statement of Assets and Liabilities (Schedule 3) is Consolidated Main Trust Fund of $164,604,625 (Note 33).

Main Trust Fund Account balances totalling $76,959,364 were not supported with detailed listing of claimants of monies held in trust.
As a result, I was not able to satisfy myself on the accuracy and completeness of the component of Trust Fund Account balance of $76,959,364 as at 31 July 2019.

Emphasis of Matters • Reflected in the Statement of Assets and Liabilities (Schedule 3) is cash and cash equivalent of $344,074,924.
A total unreconciled variance of $2,641,670 and $3,346,001 existed between the balances in the FMIS general ledger, and bank statements of foreign bank accounts and the bank confirmation for domestic cash, respectively.

In addition, domestic cash balance of $251,944 was not booked in the FMIS general ledger and therefore not accounted for in the financial statements.
• Established Staff and Government Wage Earners Payroll expenditure in the Statement of Cash Receipts and Payments (Schedule 1) amounted to $1,016,971,896.

A total unreconciled variance of $17,571,867 existed between the FMIS general ledger and the payroll reports of Ministries and Departments.

On 29 /09/21, the Ministry of Economy issued Circular 01/2021 – 2022 requiring Ministries and Departments to reconcile and justify the variances between the payroll reports and the FMIS general ledger balances.
• Reflected in the Statement of Revenue and Expenses (Schedule 4) is total revenue of $3,198,302,185.

A total unreconciled variance of $2,463,484 existed between the FMIS general ledger and the revenue reports of Ministries and Departments.

• Reflected in the Statement of Revenue and Expenses (Schedule 4) is total expenditure of $3,613,376,316.
The Ministry of Education, Heritage and Arts, Ministry of Fisheries, Ministry of Lands and Mineral Resources and the Ministry of Health and Medical Services were not able to provide appropriate supporting documents including payments vouchers and journal vouchers for payments totalling $15,172,129.

• The Trading and Manufacturing Accounts are operating on semi-accrual accounting basis instead of full accrual accounting.
Property, plant and equipment for TMA operations are not disclosed in the Statement of Assets and Liabilities (Schedule 3) under Assets.

• Note 52 of the financial statements disclosed the novel Coronavirus (COVID-19) global pandemic impact subsequent to 31 July 2019 and also describes a number of measures and initiatives taken by the Government to ensure the safety of the population and to support the economy and those affected.
No adjustments have been made to the financial statements as at 31 July 2019 for the financial implication, if any, that may be arising in future.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 26 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Other Matters • Internal controls were generally found to be weak for the Ministry of Disaster Management and Meteorological Services, Republic of Fiji Military Forces, Ministry of Foreign Affairs, Ministry of Agriculture, Ministry of Fisheries, Ministry of Forestry, Ministry of Lands and Mineral Resources, Ministry of Infrastructure and Transport, Ministry of Education, Heritage and Arts, Ministry of Health and Medical Services, Ministry of Civil Service, Fiji Police Force, Ministry of Rural and Maritime Development, Ministry of Defence and National Security, Ministry of Women, Children and Poverty Alleviation, Ministry of Housing and Community Development and Ministry of Local Government.
If internal control issues are not addressed promptly, these can result in material misstatements and fraud, in the future.

The Ministry of Economy has put in place a process of preparing Reconciliation Compliance Reports for Permanent Secretaries.

The reports include both internal and external audit issues.

• There were various Ministries and Departments that did not have in place policies on risk management.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 27 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 5.0 ASSESSMENT OF INTERNAL CONTROLS 5.1 Introduction In this chapter, we detail our assessment of the strength of the internal controls designed, implemented and maintained by the 36 Ministries and Departments to ensure reliable financial reporting.
We assess financial controls using the guidelines provided in the International Standards on Auditing/International Standards for Supreme Audit Institutions.

We have noted the similarities of the controls in these standards with that of the internal control framework of the Committee of the Sponsoring Organisations of the Treadway Commission (COSO), which is widely recognised as a benchmark for designing and evaluating internal controls.
Internal controls are processes designed and implemented by Permanent Secretaries, Heads of Departments and other personnel of Ministries and Departments to provide reasonable assurance about the achievement of a Ministry or Department’s objectives with regard to reliability of financial reporting effectiveness and efficiency of operations, and compliance with applicable laws and regulations.

The term “control” refers to any aspects of one or more components of internal control.
Permanent Secretaries, Heads of Departments and other personnel of Ministries and Departments are responsible for the preparation of the financial statements in accordance with the Financial Management Act 2004, and Finance Instructions 2010, and for such internal controls as they determine is necessary to enable preparation of financial statements that are free from material misstatements, whether due to fraud or error.
Internal control issues arising during our audit were reported to the Permanent Secretary or Head of Department of Ministries and Departments.

Summary of our internal control assessments for the 36 Ministries and Departments against each element of internal controls is in Appendix C 5.2 Internal Control Framework During our audits, we assessed the design and implementation of controls to ensure that they are suitably designed to prevent, detect and correct material misstatements.
Where audit strategy requires, we also test the operating effectiveness to ensure the internal controls are functioning as designed.

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 alone or in combination with multiple deficiencies may lead to a material misstatement in the financial statements.

It requires immediate management action.
Internal controls are categorised against the following five components and assessed as either effective, generally effective or ineffective as follows: Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 28 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Rating Internal control assessment  Effective  Generally effective  Ineffective No deficiencies identified in internal controls Deficiencies identified in internal controls Significant deficiencies identified in internal controls Control Environment (CE) Control environment is the set of standards, processes and structures that provide the basis for carrying out internal controls across the entity.
These include commitment to integrity and ethical values, independence of management to exercise oversight for the development and performance of internal control, documented structures, reporting lines and appropriate authorities such as delegated levels of authority and responsibilities in the pursuit of the entity’s objectives.

It is also including commitment to attract, develop and retain competent individuals and holding them accountable for their internal control responsibilities.
Examples of issues which fall under this category are ethical breaches, gaps in internal controls or controls are non-existent, individuals are not held accountable for breaches in control or the entities’ code of ethics, staff recruitment, training and professional development, performance assessment and succession planning matters.
Figure 5.1: Categories of Control Environment 20 18 16 14 12 10 8 6 4 2 0 Control Environment (CE) EFFECTIVE 20 iTaukei Affairs, Office of • Office of the Attorney General, Ministry of Economy, Ministry the Director of Public of Prosecution, Ministry and Meteorological Services, Ministry of Youth and Sports, Ministry of Industry, Trade and Tourism, Ministry of Public Enterprise of Disaster Managment GENERALLY EFFECTIVE • Ministry of Defence and National Security, Ministry of Foreign Affais,Judiciary Department, Parliament Office, Ministry of Justice, Fiji Corrections Service, Department of Information and Communication, Information, Technology& Computing Services, Ministry of Rural and Maritime Development, Fiji Police Force, Peacekeeping Missions, Ministry of Education, Heritage and Arts and Higher Education Institutions, Ministry of Women, Children, and Poverty Alleviation, Ministry of Fisheries, Ministries of Forests, Ministry of Lands and Mineral Resources, Ministry of Sugar, Ministry of Local Government, Ministry of Infrastructure and Transport, Ministry of Waterways and Environment 8 8 Effective Generally effective Ineffective INEEFFECTIVE • Office of the President, Department of Immigration, Ministry of Employment, Productivity and Industrial Relations, Ministry of Civil Service, Republic of Fiji Military Forces, Ministry of Health and Medical Services, Ministry of Housing, Ministry of Agriculture Of the Ministries and Departments reported, the control environment for 28 (78%) agencies were regarded as effective.
Eight Ministries and Departments require improvement in setting standards, processes and structures for carrying out internal control across the agency.

Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 29 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Risk Assessment (RA) Risk assessment involves a dynamic process for identifying and analysing risks to achieve the entity’s objectives, forming a basis for determining how risks should be managed.
Examples of issues which would fall under this category are absence of risk management framework, operational including fraud and enterprise risks not identified, assessed and mitigated and impact of changes in business processes on controls not identified and assessed.
Figure 5.2: Categories of risk assessment Risk Assessment 15 15 EFFECTIVE • Office of the Attorney General, Ministry of iTaukei Affairs, Office of the Director of Public Prosecution, Ministry of Youth and Sports, Ministry of Industry, Trade and Tourism, Ministry of Public Enterprise GENERALLY EFFECTIVE • Office of the President, Ministry of Economy, Ministry Defence and National Security, Judiciary, Parliament Office, Ministry of Justice, Fiji Corrections Service, Department of Information and Communication, Fiji Police Force, Peacekeeping Missions, Ministry of Women, Children and Poverty Alleviation, Ministry of Fisheries, Ministry of Lands and Mineral Resources, Ministry of Sugar, Ministry of Local Government 6 INEEFFECTIVE of • Department of Disaster Management Immigration,Ministry of Employment, Productivity and Industrial Relations, Ministry of Foreign and Affairs, Ministry Meteorological Services, Information, Technology & Computing Services, Ministry of Civil Service, Ministry of Rural and Maritime Development, Republic of Fiji Military Forces, Ministry of Education,Heritage and Arts, Ministry of Health and Medical Services, Ministry of Housing, Ministry of Agriculture, Ministry of Forests, Ministry of Infrastructure and Transport, Ministry of Waterways and Environment 16 14 12 10 8 6 4 2 0 Of the 36 Ministries and Departments reported, the risk assessment for 21 (58%) agencies were regarded as effective.
Fifteen Ministries and Departments require improvement in the process for identifying and analysing risks including determining how risks should be managed.

Control Activities (CA) Control activities are established by policies and procedures to help ensure that management’s directives to mitigate risks to the achievement of objectives are carried out.

Control activities are performed at all levels of an entity and at various stages within business processes, and over the environment.
Examples of issues which would fall under this category are general controls relating to information technology, documentation of procedures which have in-built checks and balances which are aligned Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 30 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI to the policies of the entity.
Specific control activities include those relating to authorisation, performance reviews, information processing, physical controls, and segregation of duties.
Figure 5.3: Categories of control activities Control Activities (CA) EFFECTIVE • Office of the President, Office of the Attorney General, Ministry of Defence and National Security, Parliament Office, Office of the Director of Public Prosecution, Fiji Corrections Service, Ministry of Youth and Sports, Ministry of Industry, Trade and Tourism, Ministry of Sugar and Ministry of Public Enterprises 14 12 10 8 6 4 2 0 14 12 10 GENERALLY EFFECTIVE • Ministry of Economy, Ministry of iTaukei Affairs, Ministry of Employment, Productivity, and Industrial Relations, Ministry of Foreign Affairs, Judiciary Department, Ministry of Disaster Managment and Justice, Services, Ministry Meteorological Information and Communication, Department of Information Information, Technological & Computing Services, Ministry of Rural and Maritime Development, Ministry of Lands and Mineral Resources, Ministry of Infrastructure and Transport, Ministry of Local Government, Ministry of Waterways and Environment Communication, and of Effective Generally Effective Ineffective INEEFFECTIVE • Department of Immigration, Ministry of Civil Service, Republic of Fiji Military Forces, Fiji Police Force, of Education, Peacekeeping Missions, Ministry Heritage and Arts, Ministry of Health and Medical Services, Ministry of Housing, Ministry of Women, Children of Agriculture, Ministry of Forests and Ministry of Fisheries and Poverty Alleviation, Ministry Of the 36 Ministries and Departments reported, the control activities for 24 (67%) agencies were considered effective.
Twelve Ministries and Departments require in the establishment of policies and procedures to help ensure that management’s directives to mitigate risks to the achievement of objectives.

improvement Information and Communication Control (IC) Information is necessary for the entity to carry out internal control responsibilities in support of achievement of its objectives.

Communication occurs both internally and externally and provides the entity with the information needed to carry out day-to-day controls.
Communication enables personnel to understand internal control responsibilities and their importance for the achievement of objectives.

Examples of issues which would fall under this category are reporting to Permanent Secretaries and line Ministers of entities on matters relating to internal controls.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 31 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 5.4: Categories of information and communication control Information and Communication Control (IC) EFFECTIVE • Office of the President, Office of the Attorney General, Ministry of Economy, Ministry of Defence and National Security, Ministry of Foreign Affairs, Parliament Office, Office of the Director of Public Prosecution, Ministry of Disaster Management and Meteorological Services, Ministry of Justice, Fiji Corrections Service, Department of Information and Communication, Ministry of Rural and Maritime Development, Peacekeeping Missions, Ministry of Women, Children and Poverty Alleviation, Ministry of Youth and Sports, Ministry of Industry, Trade and Tourism, Ministry of Sugar, Ministry of Public Enterprises, Ministry of Waterways and Environment 19 20 18 16 14 12 10 8 6 4 2 0 8 9 GENERALLY EFFECTIVE • Ministry of iTaukei Affairs, Ministry of Employment, Productivity and Industrial Relations, Judiciary Department, Ministry of Education,Heritage and Arts, Ministry of Forests, Ministry Lands and Mineral Resources, Ministry of Infrastructure and Transport and Ministry of Local Government Effective Generally Effective Ineffective INEFFECTIVE • Department of Immigration, Information, Technology & Computing Services, Ministry of Civil Service, Republic of Fiji Military Forces, Fiji Police Force, Ministry of Health and Medical Services, Ministry of Agriculture, Ministry of Fisheries and Ministry of Housing Of the 36 Ministries and Departments reported, the information and communication control for 27 (75%) agencies were considered as effective.
Nine Ministries and Departments require improvement in the information and communication control to help ensure the achievement of objectives.

Monitoring Activities (MA) On-going evaluations, separate evaluations or some combination of the two are used to ascertain whether controls are present and functioning.

Findings are evaluated and deficiencies are communicated in a timely manner.
Examples of issues which would fall under this category are self-assessment by entities to determine whether internal controls are present and functioning.

This may include the establishment of independent internal audit functions within entities which would assist in identifying any gaps in controls.

The monitoring activities of Ministries and Departments was assessed and categorised as effective, generally effective and ineffective in the graph below.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 32 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 5.5: Categories of monitoring activities Monitoring Activities (MA) EFFECTIVE • Ofice of the Attorney General, Ministry of Economy, Office of the Director of Public Prosecutions, Ministry of Disaster Management and Meteorological Services, Ministry of Youth and Sports, Ministry of Industry, Trade and Tourism and Ministry of Public Enterprises 19 7 20 18 16 14 12 10 8 6 4 2 0 10 GENERALLY EFFECTIVE Effective Generally Effective Ineffective INEFFECTIVE • Office of the President, Ministry of iTaukei Affairs, Ministry of Defence and National Security, Ministry of Foreign Affairs, Judiciary Department, Praliament Office, Ministry of Justice, Fiji Corrections Service, Department of Information and Communication, Information, Technology & Computing Services, Ministry of Rural and Maritime Development, Fiji Police Force, Peacekeeping Missions, Ministry of Women, Children and Poverty Alleviation.
Ministry of Fisheries and Ministry of Forests and Ministry of Lands and Mineral Resources, Ministry of Local Government, Ministry of Waterways and Environment of • Department and Productivity Immigration, Ministry of Employment, Industrial Relations, Ministry of Civil Service, Republic of Fiji Military Forces, Ministry of Education, Heritage and Arts, Ministry of Health and Medical Services, Ministry of Housing, Ministry of Agriculture, Ministry of Sugar Industry, Ministry of Infrastructure and Transport Of the 36 Ministries and Departments reported, the monitoring activities for 26 (72%) agencies were regarded as effective.
Ten Ministries and Departments require improvement in the on-going evaluations, separate evaluations to ascertain whether controls are present and functioning.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 33 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 6.0 SIGNIFICANT AUDIT MATTERS Significant audit matters highlighted in this report, include control weaknesses, which could cause or is causing severe disruptions to processes or the ability of the agencies to achieve process objectives and comply with relevant legislations.
In this chapter, we discuss significant audit matters in the 2019 Financial Statements of Government.

The significant audit matters for Ministries and Departments have also been reported in the following Sector Reports.

1.

2019 Audit Report on Economic Services Sector (Parliamentary Paper No.

24 of 2021) 2.

2019 Audit Report on General Administration Sector (Parliamentary Paper No.

25 of 2021) 3.

2019 Audit Report on Infrastructure Sector (Parliamentary Paper No.

26 of 2021) 4.
26 of 2021) 4.

2019 Audit Report on Social Services Sector (Parliamentary Paper No.

27 of 2021) 5.

Remaining 2019 Audit Report on General Administration, Social Services and Economic Services Sectors (Parliamentary Paper No.
109 of 2021) FINANCIAL STATEMENTS OF GOVERNMENT 6.1 Accounting policies Contrary to Section 30(2) of the Finance Instructions, requiring the preparation of profit and loss statement and balance sheet on accrual basis, property, plant and equipment for the Trading Manufacturing Accounts were expensed and not capitalised.

Root Cause/Implication The Ministry’s Finance Manual does not specify the accounting policy and guideline to properly account for property, plant and equipment for TMA.
In addition, TMA Policy is not aligned to the requirements of the Finance Instructions 2010.

As a result, the Ministry did not capitalise the cost of fixed assets acquired during the period.

Recommendation The Ministry should review the Finance Instructions and clearly document the accounting policies to include accounting treatment of property, plant and equipment for TMA.

Agreed Management Action Comments not provided.


CONSOLIDATED ISSUES – MINISTRIES AND DEPARTMENT 6.2 Variances in Revenue The audit noted a total variance of $2.5 million between the revenue recorded in the FMIS general ledger and Revenue Reports of Ministries and Departments.
Refer to the table below: Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 34 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Table 6.1: Variances in Revenue Ministry Fiji Police Force Ministry of Education, Heritage and Arts Variance ($) 217,930 54,514 Ministry of Lands & Mineral Resources 1,025,482 Ministry of Justice Ministry of Forest Ministry of Economy Total Variance 893,620 167,998 103,940 2,463,484 Refer to Appendix F for details – Sourced from 2019 Reports for Ministries and Departments.
Root Cause/Implication Absence of monthly revenue reconciliation.

This may impact the accuracy of the total revenue recorded and highlighted in the Auditor’s Report.

Recommendation Ministries/Department must ensure that revenue reconciliations are carried out and variances noted are investigated and adjusted accordingly.

Agreed Management Action Refer to Appendix F for the agreed management action from the respective Ministries and Departments.
6.3 Records Not Provided From the review of payments made by Ministries and Departments, we noted that records/supporting documents for payments totalling $15.2 million were not provided for audit.

Refer to the table below for detail – Sourced from 2019 Reports for Ministries and Departments.
Table 6.2: Records not Provided Ministry/ Department Ministry of Education, Heritage and Arts Ministry of Fisheries Ministry of Lands and Mineral Resources Ministry of Health and Medical Services Total Balance ($) 8,336,585 1,198,854 201,387 5,435,303 15,172,129 Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 35 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Root Cause/Implication Accounting records were not properly maintained.
Thus, the accuracy and completeness of the expenditure balances recorded in the financial statements could not be ascertained.

Recommendation Ministries concerned should strengthen its records management to ensure that all accounting records are properly maintained and presented for audit.
Agreed Management Action Refer to Appendix G for the agreed management action from the respective Ministries and Department 6.4 Detailed Listing not maintained for Main Trust Fund Account - Recurring Section 58(3) of the Finance Instructions 2010 states that, the names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.

Unreconciled items must be investigated and resolved promptly.
The audit noted that the detailed listings for Main Trust Fund accounts totaling $76.96 million.

Refer to Appendix H below for detail – Sourced from 2019 Reports for Ministries and Departments.

Root Cause/Implication Poor records management and the lack of reconciliations has resulted in the issue.

As such, the audit could not ascertain the accuracy and completeness of the component of Trust Fund account balance of $76.96 million as at 31 July 2019.
This issue was also included as a qualification in the audit report for the year ended 31 July 2018.

The respective Ministries have agreed to the recommendations provided in their management letters.

Recommendations • Ministries/Departments should strengthen its records management and reconciliation of Trust Fund accounts.

• The FMIS Division should ensure that Ministries/Departments are submitting the detailed listing of claimants of the monies held in trust in its monthly reconciliation.
Agreed Management Action • Ministry of Economy through its Financial Reporting and Monitoring & Evaluation (FR and M&E) Unit have • developed a Reconciliation Compliance Report (RCR) The RCR identifies whether compliance are met in accordance with the provisions of the FMA 2004, FI 2010, Finance Circulars and Finance Manuals including improvements needed to meet the standards of regulations or internal controls.
The RCR covers all accounts including Cash at BANK (Domestic and Overseas), Drawings, Inter-Departmental Charges (IDC), Bank Lodgement Clearance (BLC), Accounts Payable, Operating Trust, Main Trust, Imprest, Accounts Receivable and Refundable Advances (RFA).

This report is sent to the respective Accounting Heads (AHs) and Permanent Secretaries (PSs) on a monthly basis.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 36 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI • Ministry of Economy had conducted Reconciliation Trainings for respective Ministries and Departments during FY 2020-2021.

The training evolved around performing reconciliation, importance of reconciliations and the importance of rectifying anomalies in a timely manner.
Additionally, the training also emphasised on the source documents and ascertaining the correctness and accuracy of the closing General Ledger (GL) balances.

Furthermore, Ministry of Economy will continue to conduct trainings on performing reconciliation every financial year.
6.5 Variances between FMIS GL and Bank Reconciliation Statement The review of Cash and cash equivalent held by the government revealed an unreconciled variance of $2.6 million and $3.3 million existed between the balances in the FMIS general ledger, and the bank statements of foreign bank accounts and the bank confirmation for domestic cash respectively.

Refer to Appendix I for details.


In addition, Domestic cash totalling $251,944 was not recorded in the FMIS general ledger and has not been accounted in the financial statements.

Refer to table below for details.


Table 6.3: Domestic Cash not Recorded in FMIS Type of Cash Details Amount ($) Domestic Cash Business Interest Bearing Cheque 251,944 Root Cause/Implication The finding indicates the lack of monitoring of bank reconciliations carried out at by the respective ministries responsible for the cash accounts.

This has resulted in the misstatement of cash and cash equivalent.
A reason provided for bank reconciliations not prepared was that there were no movements in certain cash general ledger accounts.

As a result, there is a risk that movement in the bank accounts may not be correctly reflected in the general ledgers and the financial statements.

Recommendations • Ministries holding cash accounts should ensure that the FMIS general ledger is reconciled on a monthly basis and any variances are investigated and resolved.
• The Ministry should prepare bank reconciliations despite no movements in the ledger accounts as bank fees and interest are charged on monthly basis.

Movements in the bank accounts will need to be accounted for in the general ledger.

Agreed Management Action Management noted comments and recommendation.

Ministry of Economy (MOE) through the Monitoring & Evaluation Unit reviews all reconciliations submitted by the respective Ministries/Departments.
Further follows ups and meetings are convened to address such issues.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 37 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 6.6 Internal Control Weaknesses for Ministries and Departments Section 59(1) of the Finance Instructions 2010 states that, each agency must have in place a cost- effective system of internal controls which safeguards money and property against loss, avoids or detects accounting errors and avoids unfavourable audit reports.
The audit noted that internal controls were generally found to be weak in agencies.

In addition, the board of survey for agencies were not carried out for the financial year 31 July 2019.

Refer to Appendix J for details.

– Sourced from 2019 Reports for Ministries and Departments.

Root Cause/Implication Failure to strengthen internal controls may result in material misstatements and possible financial losses in the future.
Material misstatements at Ministry level will impact on the audit report for the financial statements of Government.

Recommendations Ministries and Departments should: • regularly evaluate its internal controls to determine its effectiveness and identify weaknesses so that corrective action can be taken and; • ensure that the Board of Survey is carried out annually as required under the Finance Instructions.
Agreed Management Action The Accounting Head of Agency is responsible to the Permanent Secretary for the effective design and operation of internal controls across the agency.

Thus, the Permanent Secretaries for the Government Ministries/Departments are responsible for the audit matters related to their agencies and as enshrined in the 2013 Constitution of the Republic of Fiji, section 127.

Hence, the audit matters of agencies are not proper to be placed on Ministry of Economy.
Ministry of Economy through the Monitoring & Evaluation department have been highlighting anomalies identified during the reconciliation review process to the respective Accounting Heads and Permanent Secretaries.

Further, in Ministry of Economy roles and responsibilities, we are placing the behaviour of highest accountability wherever we can but cannot look into the finer processing of transactional issues of respective agencies.
These are responsibilities of the respective Head of Agencies and is fair to report with the line Ministries.

6.7 Variance in Payroll An unreconciled variance of $17.6 million exists between FMIS general ledger and the Ministry’s Payroll Report for both Established Staff and Government Wage Earner.

Refer to Appendix K for variances in the respective Ministries.

Root Cause/Implication The Finance Manual and Finance Instructions does not require the reconciliation of these two records.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 38 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Variances between critical records may indicate the existence of errors and omissions and may result in ministries failing to detect possible irregularities in the payment of salaries in a timely manner.

Recommendations The Ministries should: consider incorporating this requirement into the Finance Manual of ministries/departments.
• • ensure that identified errors and variances arising from Monthly reconciliations are rectified.

Agreed Management Action Payroll and FMIS are two separate systems that do not communicate with each other and variance between the two systems are mainly due to the following: • The manual payments and salary reversals are processed in FMIS and these payments are not reflected in payroll.

• Officers who are not on the payroll ([i.e., NEC volunteers) are directly paid via FMIS.
• • Project Officers are paid from SEG 1 and later adjustments are made to SEG 7, 8, 9 and 10.

Project Officers whose salary are funded by donor agencies are paid from payroll and later these charges are adjusted to correct GL in FMIS.

The line agencies are responsible to carry out its GL reconciliation and ensure that necessary adjustments are made to salary components of its staffs.
• Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 39 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI APPENDIX A: AUDIT OPINION RESULTS The following Tables present the results of our audit of the 2018-2019 financial statements for Ministries and Departments.

Consistent with presentation in this report, the results have been summarised by sectors.

The legislated timeframe for issuing of audit opinion for 2019 was 31 December 2019.
General Administration Ministry/Department Date audit report signed Audit Opinion Type 1.

Office of the President 2.

Office of the Prime Minister and Department of Immigration 3.

Office of the Attorney General 4.

Ministry of Economy 6 July 2020 22 April 2021 21 May 2020 27 October 2021 5.

Ministry of iTaukei Affairs 6.

Ministry of Defence and National 15 April 2020 10 November 2020 Security 7.

Ministry of Employment, 19 March 2021 Productivity and Industrial Relations 8.
Ministry of Foreign Affairs 9.

Judiciary 10.

Parliament 11.

Office of the Director of Public Prosecutions 12.

Ministry of Disaster Management and Meteorological Services 18 March 2021 10 November 2020 10 August 2020 6 May 2020 Unmodified with Other Matter Modified Unmodified Unmodified with Emphasis of Matter and Other Matter Unmodified with Other Matter Unmodified with Emphasis of Matter and Other Matter Modified Modified Modified Unmodified with Other Matter Unmodified 19 March 2021 Modified 13.
Ministry of Justice 1 March 2021 14.

Fiji Corrections Service 11 February 2021 15.

Department of Information and 14 January 2021 Unmodified with Emphasis of Matter Unmodified with Emphasis of Matter Unmodified 25 March 2021 Unmodified Communication 16.

Department of Information, Technology and Computing Services (ITC) 17.

Ministry of Civil Service 21 April 2021 18.

Ministry of Rural and Maritime 25 March 2021 Development 19.

Republic of Fiji Military Forces 20.

Fiji Police Force 21.


Peacekeeping Missions 6 August 2020 22 May 2020 8 February 2021 Unmodified with Emphasis of Matter and Other Matter Unmodified with Emphasis of Matter Modified Modified Unmodified with Emphasis of Matter Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 40 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Social Services Ministry/Department Date audit report signed Audit Opinion Type 22.
Ministry of Education, Heritage and 14 April 2021 Modified Arts and Higher Education Institutions 23.

Ministry of Health and Medical 18 March 2021 Modified Services 24.

Ministry of Housing and Community 15 November 2021 Development 25.

Ministry of Women, Children and 14 January 2021 Poverty Alleviation Unmodified with Emphasis of Matter Modified 26.

Ministry of Youth and Sports 11 August 2020 Unmodified Economic Services Ministry/Department Date audit report signed Audit Opinion Type 27.
Ministry of Agriculture 28.

Ministry of Fisheries 29 Ministry of Forests 30.

Ministry of Lands and Mineral Resources 19 March 2020 23 March 2021 12 February 2021 23April 2021 Modified Modified Modified Modified 31.

Ministry of Industry, Trade and 27 October 2020 Unmodified Tourism 32.

Ministry of Sugar Industry 13 October 2020 Modified 33.

Ministry of Public Enterprise 34.


Ministry of Local Government 1 June 2021 2 September 2021 Unmodified with Other Matter Unmodified with Emphasis of Matter Infrastructure Services Ministry/Department Date audit report signed Audit Opinion Type 35.

Ministry of Infrastructure and 30 September 2020 Modified Transport 36.
Ministry of Waterways and 18 November 2021 Modified Environment Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 41 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI APPENDIX B: OTHER MEASURES OF FINANCIAL VULNERABILITY Financial vulnerability is the measure of the degree of dependence of Government on sources of borrowing outside its control or influence.

A measure of vulnerability is the comparison of Overseas Borrowings to the total Government debt.
Overseas borrowings to total government debt for a period of eight years is shown in the table below.
Year Outstanding Overseas Borrowings Amount $’000 Government Debt Percentage Amount $’000 2012 2013 2014 2015 2016* 2017 2018 2019 * 7 months 935,530.60 3,678,829.20 1,081,097.40 3,824,940.00 1,254,277.30 4,083,194.80 1,241,407.40 4,221,151.90 1,258,728.40 4,502,423.80 1,367,960.90 4,667,607.50 1,455,292.80 5,216,728.20 1,455,397.80 5,725,459.00 25% 28% 31% 29% 28% 29% 28% 25% In 2019, overseas borrowings made up 25% of outstanding government borrowings which decreased by 3% when compared to 2018.
35% 30% 25% 20% 15% 10% 5% 0% 2012 2013 2014 2015 2016* Years 2017 2018 2019 e g a t n e c r e P *7 months The overall trend indicated an increasing reliance by Government on overseas borrowings.

Another measure of financial vulnerability is the comparison of overseas borrowings to Gross Domestic Product (GDP).

The table below compares overseas borrowings to GDP over a period of eight years.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 42 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Year 2012 2013 2014 2015 2016* 2017 2018 2019 Overseas Borrowings Amount $’000 Nominal GDP Amount $’000 Percentage of Overseas Borrowings/GDP 935,530.60 7,109,500.0[r] 1,081,097.40 7,715,700.0[r] 1,254,277.30 8,435,900.0[r] 1,241,407.40 9,210,800.0[p] 1,258,728.40 9,852,704.1[p] 1,367,960.90 9,865,489.8(p) 1,455,292.80 11,348,969.4[p] 1,455,397.80 11,778,330.3[p] 13% 14% 15% 13% 13% 14% 13% 12% [r]: GDP Revised Figure [p]: GDP Provisional Figure [*]: * 7 months e g a t n e c r e P 16% 14% 12% 10% 8% 6% 4% 2% 0% 2012 2013 2014 2015 2017 2018 2019 2016(7 months) Years Comparison of the domestic debt to GDP is another measure of financial vulnerability.
Domestic borrowings to GDP for a period of eight years is shown in the table below.
Year 2012 2013 2014 2015 2016* 2017 2018 2019 Domestic Borrowings Amount $’000 2,631,565.7 2,641,564.5 2,698,317.5 2,836,488.6 3,079,850.6 3,204,762.3 3,576,152.2 3,971,911.1 [r]: GDP Revised Figure [p]: GDP Provisional Figure [*]: 7 months Nominal GDP Amount $’000 7,109,500.0[r] 7,715,700.0[r] 8,435,900.0[r] 9,210,800.05[p] 9,852,704.1 9,865,489.8(p) 11,348,969.4(p) 11,778,330.3(p) % of Domestic Borrowings/GDP 37% 34% 32% 31% 31% 32% 32% 34% Domestic borrowing as a percentage of GDP remained constant at 32% in 2017 and 2018, however, slightly increased to 34% in 2019.
5 Excludes Treasury Bills outstanding at year end Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 43 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI ) % ( e g a t n e c r e P 38% 37% 36% 35% 34% 33% 32% 31% 30% 29% 28% 2012 2013 2014 2015 2016(7 months) Years 2017 2018 2019 The figure above shows that the Domestic Borrowing as a percentage of the GDP has been decreasing over the years which indicates the Government’s capability to meet its internal debt obligations when due.
However, a slight increase was noted in 2019.

The table and figure below show the comparison between tax revenue and the GDP.

The tax revenue as a percentage of GDP in the past eight years has been between 22% and 26%.

In 2019, this percentage decreased from 25% to 24%.
Year 2012 2013 2014 2015 2016* 2017 2018 2019 Tax Revenue Amount $’000 1,722,147.5 1,879,295.2 2,117,742.4 2,359,863.2 1,314,520.0 2,579,175.4 2,831,635.8 2,819,778.3 GDP Amount $’000 7,109,500.0[r] 7,715,700.0[r] 8,435,900.0[r] 9,210,800.0[p] 9,852,704.1 9,865,489.8(p) 11,348,969.4(p) 11,778,330.3(f) Percentage of Tax Revenue/GDP 24% 24% 25% 26% 13% 26% 25% 24% [r]: GDP Revised Figure [p]: GDP Provisional Figure [f]: GDP Forecasted Figure [*]: 7 months 30 25 20 15 10 5 ) % ( e g a t n e c r e P 0 2012 2013 2014 2015 2017 2018 2019 2016(7 months) Years Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 44 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Another measure of financial vulnerability is the comparison of tax revenue to debt.
The table below compares tax revenue to debt for a period of eight years.
Year 2012 2013 2014 2015 2016* 2017 2018 2019 [*]: 7 months Tax Revenue Amount $’000 1,722,147.5 1,879,295.2 2,117,742.4 2,359,863.2 1,314,520.0 2,579,175.4 2,831,635.8 2,819,778.3 Debt Amount $’000 3,678,829.2 3,824,940.0 4,083,194.8 4,221,151.9 4,502,423.8 4,667,607.5 5,216,728.2 5,725,459.0 Percentage of Tax Revenue/Debt 47% 49% 52% 56% 29% 55% 54% 49% The tax revenue as a percentage of debt has slightly decreased from 54% in 2018 to 49% in 2019, which indicate that 49% of total government debt in 2019 can be met from tax revenue.
60 50 40 30 20 10 ) % ( e g a t n e c r e P 0 2012 2013 2014 2015 2016 (7 months) Years 2017 2018 2019 The ability of tax revenue to meet the debt over the eight-year period gradually increased from 2012 to 2015 due to increase in tax collections during these years.

However, a sharp decrease in 2016 was due to the change in accounting period from 12 months to 7 months.

In 2019 there was a slight decrease from 54% to 49%.

The table below shows the comparison of government deficit to GDP.
Year 2012 2013 2014 2015 2016* 2017 2018 2019 GDP Amount $’000 Gross Surplus/ (Deficit) Amount $’000 7,109,500.0[r] (136,880.6) 7,715,700.0[r] (37,583.7) 8,435,900.0[r] (554,256.8) 9,210,800.0[p] (859,086.2) 9,852,704.1 (347,125.0) 9,865,489.8(p) (371,812.0) (492,092.8) 11,348,969.4(p) (415,074.1) 11,778,330.3(p) Percentage of Gross Surplus (Deficit) /GDP -1.9% -0.5% -6.6% -9.3% -3.5% -3.8% -4.3% -3.5% [r]: GDP Revised Figure [p]: GDP Provisional Figure [*]: 7 months Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 45 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI ) % ( t e g a n e c r e P 0 2012 -2 -4 -6 -8 -10 2013 2014 2015 2016(7 months) 2017 2018 2019 Years In 2019, the gross deficit as a percentage of GDP declined to 3.5%.
The table and the figure below compare interest payments to GDP for a period of eight years.

Interest payments as a percentage of GDP remained the same at 3% in 2017, 2018 and 2019.
Year 2012 2013 2014 2015 2016* 2017 2018 2019 Interest Payments Amount $’000 260,860.9 260,450.7 264,309.2 295,416.3 150,088.6 276,746.1 291,503.0 326,735.4 GDP Amount $’000 7,109,500.0[r] 7,715,700.0[r] 8,435,900.0[r] 9,210,800.0[p] 9,852,704.1 9,865,489.8(p) 11,348,969.4(p) 11,778,330.3(p) Percentage of Interest Payments /GDP 4% 3% 3% 3% 2% 3% 3% 3% [r]: GDP Revised Figure [p]: GDP Provisional Figure [*]: 7 months ) % ( e g a t n e c r e P 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2012 2013 2014 2015 2016 (7 months) 2017 2018 2019 Years The ability of tax revenue to meet interest payments on public debt over the eight year period reduced from 2011 to 2014.
It slightly increased by 1% in 2015 and reduced from 2016 to 2018.

For 2019, 12% of tax revenue was used to pay interest payment on public debt has decreased.

The table and the figure below compare interest payment to tax revenue for a period of eight years.
Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 46 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Year 2012 2013 2014 2015 2016* 2017 2018 2019 [*]: 7 months ) % ( e g a t n e c r e P 18 16 14 12 10 8 6 4 2 0 2012 Interest Payments Amount $’000 Tax Revenue Amount $’000 260,860.9 260,450.7 264,309.2 295,416.3 150,088.6 276,746.1 291,503.0 326,735.4 1,722,147.5 1,879,295.2 2,117,742.4 2,359,863.2 1,314,520.0 2,579,175.4 2,831,635.8 2,819,778.3 Percentag e of Interest Payments /Tax Revenue 15% 14% 12% 13% 11% 11% 10% 12% 2013 2014 2015 2016 (7 months) 2017 2018 2019 Years Overall outlook of the financial vulnerability is shown below: Indicator Overseas Borrowings/GDP Results 12% Overseas Borrowings/ Total Debt Domestic Debt/Nominal GDP Tax Revenue/GDP Tax Revenue/Total Debt Gross Deficit/GDP Interest Payment/GDP 25% 34% 24% 49% -3.5% 3% Interest Payment/Tax Revenue 12% Commentary Percentage of GDP output to meet overseas debt has decreased Percentage of overseas borrowings composition of the total Debt is less than Domestic borrowings Percentage of GDP output to meet domestic debt has decreased Percentage of GDP output been collected by government through tax has decreased Percentage of Tax Revenue ability to meet total debt has decreased Percentage of GDP output to meet Gross Deficit has decreased Percentage of GDP ability to meet interest payment has decreased Percentage of Tax Revenue ability to meet interest payment has decreased Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 47 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Global Bonds Refinancing Fiji’s first international bond was raised in September 2006 by the Government with a sum of US$150 million (FJ$300 million) which matured in September 2011.
This was issued at an interest rate of 6.875%.

In September 2011, the Government raised US$250 million through the second issue of Global Bond, to repay the first Global Bond.

The second issue was at a higher interest rate of 9% for a term of five years.

In 2015, US$200 million was raised by way of a third issue of Global Bond at an interest rate of 6.6% to refinance the Global Bond issued in 2011.

The third issue of Global Bond will mature on 2 October 2020.
Details of the of Global Bonds issued is shown below.

Year Bond Amount US ($) 2006 150m Borrowing Revenue for year end at FJD Amount $’000 260,460.0 Amount $’000 --- Principal Repayments FJD Interest Rate Comments 2011 250m 452,305.2 266,051.8 6.875% • 1st issue was in 2006 at an interest rate of 6.875%.

• $260,460,000 was raised in 2006 as borrowing revenue.
9% • 2nd issue of bonds was to refinance the 1st global funds issued in 2006 and the remainder finance priority capital investments in the 2011 budget.

to • $452,305,199 worth of global bonds raised in 2011 as borrowing revenue.

2015 200m 434,593.7 528,357.2 6.625% • 3rd issue of global bonds to assist in the repayment of the US$250m global bond issued in 2011.

• $425,440,000 was the outstanding global bond balance as at 31/12/2015.
• $434,593,655 worth of bonds were raised in 2015 as borrowing revenue from the issue of the US$200m worth of bonds the • $528,357,236 was total principal repayment made to pay off the 2011 global bonds • $63,563,241 was interest payments made to pay off the 2011 global bonds total the 2018 200m --- --- 6.625% • As at 31/07/2018, total interest payments 2019 --- made was $27,866,702 • No principal repayments made in 2018 • As per the 2015 Global Bond Terms and Conditions, the 2015 global bonds will mature on 2 October 2020 6.625% • As at 31/07/2019, total interest payments made was $29,094,699.
• No principal payments made in 2019.
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& - 8 1 0 2 n o t r o p e R REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI APPENDIX E: GLOSSARY Term Accountability Accounting estimates Appropriation Audit evidence Audit Memorandum Audit strategy Consolidated fund account Contingent liability Current ratio Deferred income Deficiencies Express an opinion Financial sustainability Financial flexibility Financial vulnerability Fraud Governance International Public Sector Accounting Standards (IPSAS) under cash basis of accounting Management Material misstatement Definition Responsibility of public sector entities to achieve their objectives in reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws.
An approximation of a monetary amount in the absence of a precise mean of measurement.

This term is used for an amount measured at fair value where there is estimation uncertainty, as well as for other amounts that require estimation.

A sum of total budget for the ordinary services of government for the financial year ending 31 July 2018.

All the information used by the auditor in arriving at the conclusions on which the audit opinion is based.
Audit evidence includes the information contained in the accounting records underlying the financial statements and other information.

Management Letter highlighting areas where improvements can be made by an entity following an audit.

The strategy that sets the scope, timing and direction of the audit, and guides the development of the more detailed audit plan.

The main bank account of the government where public monies are paid into for the operations of government.
Trust money is not paid into this account.

A contingent liability is a potential liability that may or may not become due, depending on whether a possible event occurs, such as a claim for compensation, an indemnity or other legal claims.

This ratio shows the amount of current assets available to meet current liabilities as they fall due.

Deferred income refers to money received by an entity before it provides the related goods or services to the customer.

Failings, weaknesses or shortcomings.


A written expression of the auditor’s overall conclusion on the financial report based on audit evidence obtained.

The ability of Government to maintain existing programs and meet existing creditor requirements without increasing the burden on the economy.

It is measured by the ratio of Government debt to the Gross Domestic Product (GDP).
A debt indicator that shows the increase in financial resources or revenue to respond to increasing financial commitments either by expanding revenue or increasing the debt burden.

Measures the total exposure of Government to exchange rates and other market risks through its dependence on external borrowings.

An intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.
The control arrangements in place at an entity that are used to govern and monitor its activities to achieve its strategic and operational goals.

Standards adopted by Government of Fiji for financial reporting of Financial Statements of Government.

Those with the executive responsibility for conducting an operation.
A significant difference between the amounts, classification, presentation, or disclosure of a reported financial statement item Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 65 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Term Misstatement Other significant matter Reasonable assurance Re-deployment Revaluation Risks Standards on auditing Trading and Manufacturing activities Unmodified audit opinion Value-adding Virements the applicable in accordance with Definition and the amount, classification, presentation, or disclosure that is required for the item to be in accordance with the applicable financial reporting framework.
A difference between the amounts, classification, presentation, or disclosure of a reported financial report item and the amount, classification, presentation, or disclosure that is required for the item financial reporting to be framework.

Misstatements can arise from error or fraud.

Include control weaknesses which could cause or is causing severe disruption of the process or severe adverse effect on the ability of an auditee to achieve process objectives and comply with relevant legislation.
It is likely that these issues may have an impact on the operations of the entities in future, if necessary action is not taken to address them.

A high but not absolute level of assurance.

Transfer of budgeted funds from one appropriation head to another which is approved by Cabinet.

An adjustment made to the recorded value of an asset to accurately reflect its current market value.
The probability or threat of quantifiable damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through pre- emptive action.

International Standards on Auditing adopted by Fiji Institute of Accountants and applied by Office of the Auditor-General for audits carried out.
Are operated on semi-commercial basis to increase the returns which are derived from them and to provide goods, services or works more cost-effectively.

The opinion is issued when the financial statements are prepared in accordance with International Public Sector Accounting Standards (IPSAS) under the cash-basis of accounting and with relevant legislative requirements.
This type of opinion indicates that material misstatements, individually or in the aggregate, were not noted in our audit, which would affect the financial statements of an agency.

Financial or non-financial gains arising from improved compliance or mitigation of risks.
Permanent Secretaries of Ministries and Departments may authorise the transfer of budgeted funds between Standard Expenditure Groups as per section 10(1) of the Finance Instructions 2010. the Report on 2018- 2019 Financial Statements of Government & Annual Appropriation Statement 66 .
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