Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697764805475.pdf (Fiji)
ANNUAL REPORT 2016 & 2017 ANNUAL REPORT 2016 & 2017 OFFICE OF THE AUDITOR GENERAL The Office of the Auditor General is an independent public office established and mandated by the Fijian Constitution to inspect, audit and report on the public accounts, property and transactions of the State.

Vision Excellence in Public Sector Auditing Mission   To provide world class, independent and objective value adding services; To provide a working environment that allows our people to excel.
Our Values     Impartiality, objectivity and fairness in our reports; Due diligence and 3Es in all facets of our auditing which encompasses reducing costs of inputs (economy), the right effort allocation (efficiency) and to achieve the goals (effectiveness); Continuously align all processes and procedures to international best practices; and Utmost of honesty and integrity displayed by our people.
Our Logo 1 Table of Contents 1.0 2.0 3.0 4.0 5.0 6.0 7.0 AUDITOR-GENERAL’S FOREWORD ............................................................................................... 3 REPORTING BY FINANCIAL YEAR (FY) ........................................................................................... 4 ACHIEVEMENTS AND REFLECTIONS FOR FY 2016 & 2017 ........................................................... 4 GOVERNANCE .............................................................................................................................. 9 REPORTS TO PARLIAMENT ......................................................................................................... 14 OUR PEOPLE ............................................................................................................................... 17 OUR FINANCES ........................................................................................................................... 27 APPENDIX 1: EXTERNAL AUDIT SERVICE PROVIDERS – FY 2016 & 2017 ................................................ 51 APPENDIX 2: AUDIT CLIENTS SURVEY INDICATORS FOR FY 2016 & 2017 ............................................. 52 APPENDIX 3: ORGANISATIONAL STRUCTURE FOR FY 2016 & 2017 ....................................................... 53 2 1.0 AUDITOR-GENERAL’S FOREWORD The period 1 January 2016 to 16 January 2017 prior to my appointment as Auditor-General have been eventful for the Office of the Auditor General (OAG) for a number of reasons.
The Twinning Project with the Tasmanian Audit Office (TAO) for which work commenced in 2013 was brought to finalization and the financial audit manual, aligned to the international standards on auditing was formally adopted.

I commend Management and staffs for all the good work done for OAG during the period the position of the Auditor General was vacant.
The months following my appointment have been very challenging in view of the significant back log of audits which existed due to varying reasons, operational issues and low staff morale.

Consequently, resource allocation was revised, projects were re-prioritized and a performance management system which was open and transparent and designed to recognise and reward high performers was introduced.

A new Management team was also appointed and established.
With the strong support of the new Management team and staffs, the audit of accounts of Whole of Government for financial years 2015 and 2016 was completed and reported to Parliament.

I also commend the audit service providers who are an integral part in our delivery of audit services to our clients.

I thank Parliament, Permanent Secretaries, Chief Executive Officers and their staffs and other stakeholders for their active interaction with OAG during the year.
The existing OAG Strategic Plan was revised following extensive consultations with all staffs.

A revised Strategic Plan for the period FY 2018-FY 2020 with plans for achievement, regular monitoring and evaluation has been approved.

The coming years present both opportunities and challenges for us.

I remain committed to working with OAG Management and staffs and our stakeholders to achieve our strategic intent which include the following: • • • • • improving audit service delivery and reporting.
creating awareness on our roles and responsibilities and how we deliver them.

achieving operational efficiency.

implementing and improving the performance management system put into place.

achieving high employee satisfaction and by creating equal opportunities for our people to excel.
Other opportunities which exist include OAG moving towards full autonomy by bringing in-house, functions such as, processing of staff payroll, accounting and email and internet services, office accommodation and vehicles which currently provided by government, opening an office in the Western Division, review of the Audit Act 1969, and hosting of international public sector audit forums.

Our major challenges include loss of key employees, managing information security and business continuity risks.
However, measures have been put into place to address these challenges.

D R O W E R O F Ajay Nand AUDITOR GENERAL 3 S T N E M E V E I H C A 2.0 REPORTING BY FINANCIAL YEAR (FY) This annual report covers both financial years 2016 and 2017.

For the purpose of reporting for the financial year 2016, Section 84 of the Financial Management (Amendment) Act 2016 outlined that the 2016 financial year commenced from 1 January 2016 to 31 July 2016.
The activities for financial year 2017 is from 1 August 2016 to 31 July 2017.
3.0 ACHIEVEMENTS AND REFLECTIONS FOR FY 2016 & 2017 Progress of initiatives by financial year are reflected in the tables below: Financial Year (FY) 2017 Strategic Initiatives Our Stakeholders Impartial timeframes reports circulated within stipulated  Achievements & Reflections - FY 2017 through Client Survey Questionnaires Feedback highlighted the need to improve content and tone of the report for clarity; Reports are completed within stipulated timeframes Regular meetings and interactive engagement with PAC, Media & General Public Our Customers Internal QA review process conducted on audits whilst QARC is conducted on high risk audits Audits to be completed within stipulated timeframe; Regular provision of value adding service to customers  Awareness to clients on how audits are carried out and in the understanding on our audit processes is still work in progress; Initial work on developing policy for Quality Control and Quality Assurance began as part of the Twinning program1 with Tasmania Audit Office.
To be fully implemented from FY 2017-2018.

  Office faces challenges of financial statements not being submitted for audit on time resulting in back log of audits  Meetings with Public Accounts Committee were held when requested by the Committee for FY 2017;  A presentation was made to the Committee in April 2017 highlighting Key findings in 2015 Auditor-General’s Report and planned initiatives for OAG.
 Planned revamping of OAG website and development of communication strategy and plan in FY 2017 - 2018.

 Policies and procedures for Quality Assurance to be fully implemented from FY 2018  A total of 37 and 38 audits were completed and reported during FY 2016 and 2017, respectively.
These related to Volumes 1 to 4 on the Reports on Whole of Government Financial Statements and audit of Ministries & Departments which were presented to Parliament in March and July 2017;  Provision of value adding service was not the form of audits carried out in FY 2016 & 2017 but would be pursued in 2017/2018.

1 Refer to page 11 of the report 4 S T N E M E V E I H C A Strategic Initiatives Achievements & Reflections - FY 2017 Interactive engagement with Permanent Secretary/Chief Executive Officer.
 Regular interactions with Permanent Secretaries/Chief Executive Officers is an area to be improved.

Our Processes Review and enhance policies and procedures with assistance of Twinning partner Tasmanian Audit Office (TAO) Biennial self-assessment through available tools Financial Audit manual documents are uploaded into automated audit management system, TeamMate  Numerous policies were developed and approved during FY 2017.
 No self-assessment done during FY 2016  Self-assessment using Supreme Audit Institutions (SAI) Performance Management Framework facilitated by PASAI2 was completed during 2017;  Working Papers for audit manuals have been uploaded into TeamMate Annual review on ISSAI 3 compliance.
 This is work in progress Our People Working with Twinning partner to develop human resource and performance management framework; Wider consultations to protect government’s interest Collate needs analysis for professional development at each occupational level and match with available trainings;  Work in progress and rolled over to FY 2018;  Policies developed during FY 2017:   Conflict of Interest Policy  Mobile Policy  OAG Performance Management System (Policy & Procedures) Flexi Time Policy   Salary Increment Policy upon (Renewal of Contract)  Motor Vehicle Policy  Travel Policy  Materiality Policy  Medical Insurance Benefit Policy  Bond Administration Policy  Staff Innovation Policy  Team Building Policy  Registry Policy  Quality Assurance Policy  Attaché Policy  Staff Disciplinary Policy  All contract of services is vetted by Solicitor General’s  Office; Terms of Conditions under the General Orders used in the civil service were still being complied with during FY 2017 and would be discontinued once OAG develops its own policies as an independent office in FY 2017/2018.
 Development staff development plan at each occupational level was in progress during FY 2017.
 A comprehensive training plan based on INTOSAI competency framework is targeted to be completed in FY 2018 Facilitate a mentor/mentee program in-house for all staff to have a mentor for professional development;  Succession planning policy was approved on 20 July 2017 Individual Work Plans (IWP) to include a commitment from staff on areas requiring professional and personal development;  IWP were introduced to staffs from 1 April 2017 2 Pacific Association of Supreme Audit Institutions 3 International Standards of Supreme Audit Institutions 5 S T N E M E V E I H C A Strategic Initiatives Working with Twinning partner to develop human resource and performance management framework; Achievements & Reflections - FY 2017  Performance Management System (Policy & Procedure) was approved in March 2017  Development of Human Resource framework to be rolled over to FY 2017/2018 Staff consultations on development of Communication policy;  Communication Policy was in place by end of FY 2017  Awareness sessions have been conducted with staff Timely dissemination of decision taken.
 Dissemination of information is done during Staff Meetings  Staff Communique issued after the monthly Management Committee Meetings Financial Year (FY) 2016 Strategic Initiatives Our Stakeholders Development & timely implementation of stakeholder engagement Interactive engagement with parliamentary committees & other stakeholders Facilitate advocacy initiatives on the role and responsibilities of the Auditor General Our Customers Focus audit on risk exposures and issues of public interest Complete audits within the acceptable timeframe Achievements & Reflections – FY 2016  Development of Communication Strategy & Plan in process  Website to be fully revamped in FY 2017- 2018  Meeting with Standing Committee on Public Accounts were held as and when required by Committee  Not much progress made during the financial year  Work in progress  About 40% of audits were completed during first 7 months for 2016 FY in comparison to 138 audits planned for the 12 months; Provide value adding services to auditee  Rolled over to FY 2017/ 2018 Ensure professionalism and quality in the service provided Our Process Prioritize strategies for the adoption of the core principles of independence (International Standards of Supreme Audit Institutions 10 & 11) Continuous self-assessment and peer – review of best practices Encourage Innovation and technological enhancements Our People Development & Performance Management Framework Implementation of employee relations & Empower ownership of tasks and professional & personal development International Federation  Officers are required to comply with ethics as for required by International Accountants Code of Ethics, Organization of Supreme Audit Institutions (INTOSAI) and Fiji Institute of Accountants Code of ethics  Not completed  Full report on the SAI Performance Measurement Framework assessments was work in progress in FY 2016 and completed during FY 2017  Policy on innovation was yet to be developed.
 Not in place during FY 2016  Individual Work Plans not completed 6 Strategic Initiatives Interactive & participatory decision making process Facilitate continuous learning & development programs for all levels Achievements & Reflections – FY 2016  Staff Communique was compiled and circulated following Management Committee to staffs meetings  Concerns raised by staffs were discussed and clarified during Staff Meeting in the course of the financial year  Office continued to support staffs to continue with their professional development to meet minimum qualification requirement with the support of the Reimbursement allowed Policy reimbursement of 50% fees of tuition fees which was met by the Office.
which  Comprehensive training plan at each occupational level not in place S T N E M E V E I H C A 7 4.0 GOVERNANCE • Committees • External and Internal Review • Funding of OAG operations • Our Outcome and Outputs • Legislative and other framework E C N A N R E V O G Auditor General & Management Team (Deputy Auditor General & Director of Audit) Back (L-R) Director Mr Kuruwara Tunisalevu, Director Mr Moshin Ali, Director Mr Abele Saunivalu, Director Mr Dinesh Prasad Sitting (L-R) Auditor General Mr Ajay Nand, Director Ms Finau Nagera, Deputy Auditor General Mr Sairusi Dukuno 8 E C N A N R E V O G 4.0 GOVERNANCE OAG’s governance arrangements during the FY 2016 & 2017 were facilitated by the following committees: • • Management Committee (MC); and Audit Qualification Committee.
Objectives and composition of each committee is detailed below.

The committees are supplemented by various working groups that may be established for specific purposes from time to time.

Management Committee (MC) The Management Committee meets once every month and is responsible for reviewing and taking effective actions on the management and general operations of the Office.
The committee consists of the following members: Chairman: Auditor General (AG) Members: Deputy Auditor General & Directors of Audit During the FY 2016, the post of Auditor General was vacant, and the Deputy Auditor General chaired the Committee.

The Auditor General took Office from January 2017.
The MC’s primary purpose is to work in the best interests of the Office for the long-term benefit of staff, clients and Parliament by: • developing in consultation with staff, the Office’s strategic plan including organisational values; • developing processes and monitoring arrangements to implement the strategic plan aimed at achieving the Office’s strategic objectives, including the development of annual corporate and business plans; • developing processes and monitoring arrangements aimed at identifying, mitigating and managing Office’s • strategic, operational and emerging risks; implementing processes and monitoring arrangements aimed at achieving Office’s corporate objectives, compliance with agreed values and satisfying our external responsibilities; and • providing a safe working environment for our staff and contractors, including advice from the OHS committee.
Audit Qualification Committee (AQC) The Audit Qualification Committee (AQC) is responsible for reviewing Audit Reports with proposed modified audit opinions.

During FY 2016, the membership of the AQC included: Chairperson: Director of Audit in the absence of the Auditor-General until January 2017 Members: Directors of Audit The Auditor-General issued a total of 64 audit opinions on financial statements during the FY 2016 of which 25 were modified.
During the FY 2017, there were 75 audit opinions issued out of which 29 were modified audit opinion.
The following is a summary of the number of audit opinions for the financial years 2016 & 2017 for various types of entities: 9 Financial Year 2016 Entity Total Issued Modified Percentage Modified Ministry/Department Statutory Authority Government Commercial Company/Commercial Statutory Authority & Off Budget State Entity Municipal Council Project Audit TOTAL 37 12 11 3 1 64 Financial Year 2017 Entity Total Issued Modified Ministry/Department Statutory Authority Government Commercial Company/Commercial Statutory Authority & Off Budget State Entity Municipal Council Project Audit TOTAL 36 19 12 7 1 75 17 1 4 3 0 25 13 5 5 6 0 29 46 8 36 100 0 39 Percentage Modified 36 26 42 86 0 39 E C N A N R E V O G EXTERNAL AND INTERNAL REVIEW The Office engaged internal and external reviewers to improve our business processes.
The key elements of external/internal review are: Internal Audit During FY 2015/2016, the Good Governance and Internal Audit Division of Ministry of Economy carried out internal audit.

The internal audit for FY 2017 would be facilitated by Ministry of Economy during FY2017/2018.

External Audit The Office engaged Ernst & Young (EY) to carry out audit of its financial statements for FY 2014 to 2016.The Chartered Accounting firm BDO has been appointed to audit the 2017-2019 financial reports.
The audit reports for FY 2016 and 2017 are in Part 7 – Our Finance of this report.

Benchmarking - Twinning Project The Twinning Project with the Tasmanian Audit Office (TAO) commenced in 2013.

Subsequently an initial review was carried out for which OAG was rated at Level 14.

Australasian Council of Auditors-General’s (ACAG) Governance and Audit Framework for self-assessment and external review was the main framework used in the initial assessment.
A report containing recommendations which would allow OAG to move to Level 35 by 2019 was submitted for consideration and action by management.

4 Meaning that OAG recognizes and follows requirements in some instances, but it does not have formal policies and procedures in place.
5 Meaning associated procedures and guidance for all aspects of its operations and functioning system to monitor their effectiveness and compliance 10 E C N A N R E V O G CLIENT SURVEY Clients’ survey regarding the services offered by the Office of the Auditor General (OAG) under six categories that are rated on a five point scale [with 1 being “totally disagree” and 5 being “totally agree”].

The 6 categories are: Characteristics of the OAG Services of the OAG Staff of the OAG A.
B. C. D. Most Recent Audit Audit Report E. Audit Recommendations F. During the FY 2016 & 2017, responses was a challenge to be obtained from our clients who have been audited.
The average overall ratings for each category are stated in the Table below: Category Description Average Rating A B C D E F Characteristics of OAG Services of OAG Staff of OAG Most Recent Audit Audit Report Audit Recommendations 4.41 4.33 4.3 4.28 4.37 4.41 The outcomes from the client survey indicators for FY 2016 & 2017 are reported in Appendix 2.

ORGANISATIONAL STRUCTURE During the FY 2016, the position of Auditor General continued to be vacant until January 2017.
The Deputy Auditor General was at the helm of heading the organisation prior to Auditor General taking Office.

The organisation structure for FY 2016 & 2017 is provided as Appendix 3.

FUNDING OF OAG OPERATIONS The Office is funded by an annual appropriation from government to undertake audits of public sector entities which are mandated financial audits, performance audits and special investigations.

The OAG was allocated a budget of $2.56 and $4.33 million for FY 2016 and 2017 respectively.
Outcomes of our financial performance against budget are comprehensively dealt with in the audited financial statements in the Our Finances (Section 7) of this report.

Operational costs include salaries, wages and other benefits, travel accommodation and communication, maintenance of office equipment, vehicle, books and publications, professional development electricity, international subscriptions, OHS, stationery and printing, training and directory expenses,.
Moreover, funds were also provided for outsourcing of audit services, where required.

11 E C N A N R E V O G OUR OUTPUTS The output that must be delivered are specified in Audit Act 1969 and the Audit (Amendment) Act 2006.

Subsidiary legislations of individual entities further provide for the mandate for the Auditor General to carry out other audits.
Annual audits are performed across the various state-owned entities which include Ministries, Departments and the Whole of Government Financial Statements and Annual Appropriation Statements, Statutory Authorities, Government Commercial Companies, Commercial Statutory Authorities, Provincial Councils, Municipal councils, Rural Local Authorities and for loan funded projects.

This output include our reporting function to the Parliament of the Republic of Fiji on all audits completed within the year.
Details of audit reports completed and tabled to Parliament during the financial year 2016 and 2017 are discussed in Report to Parliament Section (Section 5 of the report).
LEGISLATIVE AND OTHER FRAMEWORK Legal Framework The Office of the Auditor General (OAG) is established under section 151 of the Constitution of the Republic of Fiji whilst section 152 requires that at least once every year the Auditor General must inspect, audit and report to Parliament on the public accounts of the State, the control of public money and public property of the State; and on all transactions with or concerning public or public property of the State.
Moreover, the Audit Act 1969 further specifies the powers of the Auditor General to audit the whole of government financial statements and the reports of all entities of government.

It also empowers the Auditor General to conduct performance audit of government entities to assure Parliament that the entities are achieving their objectives effectively and doing so economically and in compliance with all relevant legislation.
The Act also extends the scope of audits to include those that are specified under the Public Enterprise Act, comprising Government Commercial Companies (GCCs) and Commercial Statutory Authorities (CSAs); and agencies specified as Off-budget State Entities (OBSEs) in the Financial Management Act.

The Environment Management Act requires the Auditor General to conduct a sustainable development assurance audit on natural resources managed by ministries, departments, authorities or local authorities.
Professional Framework The audit practices of the Office of the Auditor General are aligned with the International Standards for Supreme Audit Institutions/International Standards on Auditing.

These standards guide the OAG in the conduct of its professional work.
In February 2017, the AFROSAI E Financial Audit Manual used by OAG for its financial audits was officially launched by the President of the Republic of Fiji Major-General (Retired) Jioji Konrote in the presence of Chargé d’ Affaires of the South African High Commission in Fiji His Excellency Velelo Kwepile.
The President of Fiji Major-General (Ret'd) Jioji Konrote sitting with Auditor General, Chargé d’ Affaires of the South African High Commission in Fiji Velelo Kwepile, AFROSAI-E Representative flanked by OAG Staff.
12 5.0 REPORTS TO PARLIAMENT • Reports to Parliament • Management of Financial Audits • Performance Audit T N E M A I L R A P O T S T R O P E R 13 T N E M A I L R A P O T S T R O P E R 5.0 REPORTS TO PARLIAMENT Section 152(13) of the Constitution of the Republic of Fiji provides that the Auditor General must submit a report to the Speaker of Parliament and a copy to the Minister responsible for Finance.
Section 152(14) of the Constitution of the Republic of Fiji states that within 30 days of receipt, or if Parliament is not sitting, on the first day after the end of that period, the Minister responsible for Finance must lay the report before Parliament.
These reports can be viewed and/or downloaded from: www.oag.gov.fj Reports to Parliament on the Outcomes of Financial Audits The audits for Whole of Government Financial Statements and Government Ministry/Departments for FY 2015 were tabled in March 2017 whilst audits carried out for FY 2016 were tabled during July 2017.
The Minister for Economy as required under Section 152(13) of the Constitution of the Republic of Fiji tabled the following reports: March 2017 • Volume 1- Audit Report on Whole of Government Financial Statements and Annual Appropriation Statements 2015; • Volume 2 – Audit Report on General Administration Sector 2015; • Volume 3 – Audit Report on Social Services Sector 2015; • Volume 4 – Audit Report on Economic & Infrastructure Sector 2015.
July 2017: • Volume 1- Audit Report on Whole of Government Financial Statements and Annual Appropriation Statements 2016; • Volume 2 – Audit Report on General Administration Sector 2016; • Volume 3 – Audit Report on Social Services Sector 2016; • Volume 4 – Audit Report on Economic & Infrastructure Sector 2016.
September 2017: • Supplementary report to the Audit Report on the Whole of Government Financial Statements & Annual Appropriation Statement of the Republic of Fiji for the year ended 31 July 2016 These volumes are prepared by Financial Audit Groups which manage Ministry/Departments.
the audit of Government Management of Financial Audits Under Section 13(1) of the Audit Act [Cap 70], the Auditor General may authorize any person publicly carrying on the profession of accountant to audit the books of accounts of a body corporate or other body established by the law which he is legally empowered to audit.

The selected firm will carry out the audit work.

However, the Auditor General retains responsibility for forming the audit opinion and issuing the audit report.
During the 2016 and 2017 financial year, the Office outsourced financial audits to the private sector.

Details of the outsourced audits to external audit service providers are provided in Appendix 1.

The Office has adopted a new strategic direction to reduce its reliance on contract audit service providers by FY 2020.

14 Performance Audits Section 6A of the Audit Amendment Act 2006 allows the Auditor- General to carry out performance audit.
The objectives of a performance audit are to determine whether a state entity was achieving its objectives effectively, economically and efficiently and in compliance with relevant Act.

.

During the FY 2016, the Performance Audits Group was de-established and staffs were assigned to carry out financial audits and other work.

The Office decided to re-establish the Group in August 2017.
The Office are in the process to review the current Performance Audit Manual to be compliant with the requirements of standard, ISSAI 3000 Standard for Performance Auditing.
T N E M A I L R A P O T S T R O P E R 15 E L P O E P R U O OUR PEOPLE 6.0 OUR PEOPLE Human resources plan Staff ethics Complaints about employees • Human Resources Employee profile • Professional Development Leave management • Staff Training & Development • Performance Management Recruitment and selection Graduate, cadetship and internship • Staff Ethics Programs Professional development • Full time Studies Study assistance • Employee Profile • Workplace Health, Safety and Welfare Performance management Workplace health, safety and Welfare • Internal Grievance Procedure Workplace diversity • Employee Participation • Social Information Industrial and workplace relations • Invitation or Speeches Internal grievance procedure Independent employee satisfaction Survey an State Service workforce Survey Directors & Deputy Auditor General with Team Corporate with Civil Service Ministry Trainers after the Open Merit Recruitment & Selection Guideline Training 38 38 38 39 40 41 42 43 44 44 45 46 46 47 51 48 48 48 50 16 6.0 OUR PEOPLE HUMAN RESOURCES (HR) Investment in our people is of significant importance with a strategic objective to nurture a conducive environment to motivate personnel towards professional and personal growth that will allow them to excel.
The strategic approach to the management of our people is achieved through:    Facilitating continuous learning and development programs for all levels; Empower ownership of tasks and professional development initiatives Implementation of a performance measurement framework.

The Corporate Services Group was responsible for ensuring our strategic initiatives are implemented with the outcomes measured.
PROFESSIONAL DEVELOPMENT The Office is committed to providing high quality learning and development opportunities for all our employees.

Meetings & Congress During the financial years 2016 and 2017, there were various local/overseas training and meetings that were attended by the staff.
Meetings were attended by members of the Management team which were organised by institutions such as International Organisation of Supreme Audit Institution (INTOSAI), Pacific Association of Supreme Audit Institution (PASAI) and Australasian Council of Auditor General (ACAG).

The table below provides details of the local and overseas trainings/meetings by financial years attended by staff and Management.
E L P O E P R U O Financial Year 2016 Local Training/Workshops DATES VENUE TOPICS PARTICIPANTS 21/4-22/04/16 Sheraton Hotel FIA Congress 2016 22/07-23/07/16 5/12-09/12/16 Shangri – La Fijian Hotel Ro Lalabalavu House, Suva FIA Technical Workshop PASAI Workshop on “Communicating and Promoting Value and Benefits of Supreme Audit Institutions (SAIs) 2 Audit Directors 1 Senior Auditor 1 Audit Manager 1 Senior Auditor 2 Auditor All Directors, Audit Managers & Senior Auditors 17 Overseas Training/meetings Name Programme Duration Country Sairusi Bulai ITEC Training in India 05/03-27/03/2016 Delhi – India Atunaisa Nadakuitavuki Head of Financial Audit meeting 19/04-24/04/16 Melbourne, Australia Funded by Whom India Technical and Economic Cooperation (ITEC) OAG Elina Lomaloma TeamMate Workshop 02/05-06/05/2016 Auckland , New OAG Krishneel Lal IT Audits 16/05-27/05/16 Zealand National Audit Academy – Malaysia.
Malaysian Technical Cooperation Programme Sairusi Dukuno Pacific Association of Supreme Audit Institution (PASAI) meeting 14/06-18/06/16 Auckland New Zealand OAG Atunaisa Nadakuitavuki PASAI meeting 14/06-18/06/16 Auckland – New Zealand OAG E L P O E P R U O Apenisa Korodrau Tomasi Daunabuna Kuruwara Tunisalevu Mohammed Firoz Australasian Council of Auditor General (ACAG) information system meeting ACAG information system meeting Working Group on Public Debt (WGPD) meeting JICA training on Public Construction work 15/06-18/06/2016 Sydney- Australia 15/06-18/06/2016 Sydney – Australia OAG OAG 04/07-07/07/16 Nanjing – China OAG 19/06-09/07/16 Japan Angeleen Prasad JICA training on Public Construction 19/06-09/07/16 Japan Sairusi Dukuno 11th Technical Update & Update of FAM Apenisa Korodrau Teammate User Conference Tomasi Daunabuna Queensland Audit Office Visit Abele Saunivalu Ilaitia Varani PASAI PFTAC Regional Workshop on Strengthening Oversight Function of PFM PASAI PFTAC Regional Workshop on Strengthening Oversight Function of PFM 1/11/16 - 8/11/2016 6/11/2016- 10/11/2016 6/11/2016- 10/11/2016 5/12/2016- 9/12/2016 5/12/2016- 9/12/2016 Japan International Cooperation Agency (JICA) Japan International Cooperation Agency (JICA) OAG OAG OAG Pretoria, South Africa Brisbane, Australia Brisbane, Australia Solomon Islands OAG Solomon Islands OAG 18 Financial Year 2017 Attendance of Local & In-house Training and Meetings by Staff funded by the Office DATES VENUE TOPICS PARTICIPANTS 13/02/2017-17/02/2017 Novotel, Lami AFROSAI-E Manual Training 20/04/2017 - 21/04/2017 Novotel, Lami 21/04/2017 - 22/04/2017 Fijian Hotel National Asset Management Framework FIA Congress 2017 05/05/2017 - 06/05/2017 Marriott Hotel, Nadi IIA Congress 2017 29/05/2017-31/05/2017 23/06/2017-24/06/2017 Tanoa International Hotel, Nadi Warwick, Fiji PASAI Regional Leadership Program FIA Technical Workshop 27/06/2017-28/06/2017 Holiday Inn, Suva ADB - Forensic Auditing Workshop 11/07/2017-12/07/2017 USP 13/07/2017-14/07/2017 USP 26/07/17-28/07/2017
 Ministry of Civil Service Investigating Fraud in the Public Sector Tax Treatment of CGT SRT & VAT OHS Training E L P O E P R U O Ajay Nand, Atunaisa Nadakuitavuki, Sairusi Dukuno, Finau Nagera, Kuruwara T, Dinesh P, Raveena Kumar, Abele Saunivalu, Ilaitia Varani, Mosese Kanisewe, Moshin Ali, Firoz Mohammed, Unaisi Namositava, Seremaia Delana, Niraj Kumar, Jayant Ram, Nunia M, Krishneel Lal, Manish Dewan, Samuela T, Lowata Y. Kelemedi Tuione, Meresimani Vosawale, Sulueti Cakau, Emosi Rokoleakai, Apenisa Korodrau, Mitieli Nawaqavou, Ashika Chand, Farisha Bi, Angeleen Prasad, Amalaini Tikoduadua, Alani Draunidalo Atish Singh Sairusi Dukuno, Finau Nagera, Dineshwar Prasad, Moshin Ali Kuruwara Tunisalevu, Sairusi Dukuno, Ajay Nand Ajay Nand Shadab Ali, Makereta Dyer ,Krishneel Lal, Krithneel Singh, Sheetal Chand & Amit Pal Seremaia Delana, Emosi Q. Rokoleakai, Aminiasi Koroi, Krishneel Pal, Angeleen Prasad, Jane L. Motufaga, Anisa T. Nasome, Sairusi Bulai, Kelemedi Tuione, Sonam Prasad, Priya Priyashni Devi, Risiate Baba, Asish Chand, Saagrika Singh, Salaseini Naidrodro, Amit Singh, Anupriya Sharma, Sitiveni Naivota, Priyanka Prasad, Alani Draunidalo, Meresimani Vosawale, Manish Dewan, Vincent Daveta, Ama Gavidi, Ashika p Chand Sulueti D. Cakau Rehnuma Khan, Ilaitia Varani Krithneel Singh Firoz, Moshin, Shavneet Kumar, Makereta Sailo, Seremaia Delana, Ilaitia Varani, Sairusi B, Asish Chand, Rehnuma Khan, Manish Dewan, Samuela Tupou, Nai Tuiteci, Shadab Ali, Savneet Lal, Lote Naicavu 19 Online Trainings DATES 10/05- 4/07/ 2017 01/05 - 16/6/2017 TOPICS Invitation for IDI/PASAI LMS Administration course - Enhancing eLearning Capacity program PASAI/USP Online Course on IPSAS Cash Basis PARTICIPANTS Apenisa K Sulueti Cakau, Manish Dewan, Abele Saunivalu, Samuela Tupou Overseas Trainings and Meeting DURATION 23/02/2017-24/02/2017 21/03/2017-23/03/2017 COUNTRY Auckland, NZ New Delhi, India 04/04/2017 - 07/04/2017 Auckland, NZ 19/04/2017-21/04/2017 22/05/2017 -24/05/2017
 30/05/2017 - 02/06/2017 Brisbane ,Australia Seoul, South Korea Vienna, Austria 24/05/2017-25/05/2017 16/06/2017-07/07/2017 Australia Japan E L P O E P R U O PROGRAMME PARTICIPANTS PASAI Governing Body Meeting Ajay Nand 23rd Commonwealth Auditor Generals Conference PASAI Young Leaders Symposium ACAG Business Meeting Working Group on IT Audit UN/INTOSAI SYMPOSIUM "Digitization, open data and data mining Head of financial audit & FRAC Government Audit on Public Construction Works Ajay Nand Samuela Tupou Ajay Nand Ajay Nand Sairusi Dukuno Finau Nagera Farisha Bi OAG Staffs and PASAI Trainers during the “Communicating and Promoting Value and Benefits of Supreme Audit Institutions Workshop in December 5-9, 2016, Suva, Fiji with Permanent Secretary for Economy officially opening the Workshop .
STAFF TRAINING & DEVELOPMENT Part-time Studies and Reimbursement of Tuition Fees Policy (PSRTFP) was approved in 2015 for staff to upgrade their professional qualifications and meeting minimum qualification requirements for positions held or for career aspirations.

The Office reimbursed 50% of tuition fees upon successful completion of each unit towards their program of studies.
This policy was withdrawn in February 2017 since staffs were rewarded (salary increments) upon achievement of the qualification which was partially funded by the Office, instead of performance.

20 E L P O E P R U O A Performance Measurement Framework was introduced to ensure that high performing employees were recognised and rewarded in an open and transparent manner.

The following table summarises the costs incurred from 2015 to 2017 under the PSRTFP.
Reimbursement Cost Profiling Reimbursements of part time studies by years Number of Officers 2015 $22,771 23 2016 (7 Months) 2017 $6,531 12 $9,435 18 In addition to the above, the following officers were approved to undertake full-time studies with full pay during FY 2016.
OFFICERS NAME Nacanieli Lilidamu Elina Lomaloma Esala Niubalavu POST Clerical Officer Manager Audit Manager Audit PROGRAM Bachelor of Commerce Masters of Auditing Masters of Auditing INSTITUTION USP Nanjing University, China Nanjing University, China These Officers have been bonded and are anticipated to complete their studies in FY 2018 and re-join the Office.

PERFORMANCE MANAGEMENT A Performance Management System was introduced in April 2017.
Individual Work Plans (IWP) were also prepared for all staffs.

This IWP provides the following: • • • • • Sets clear expectations of work required.

Shows direct correlation between the individual’s role and Office’s strategic direction.

Rewards and recognises accomplishments and achievements.

Addresses issues of any weaknesses.

Gives weight and relevance to individual development.

Additional focus was placed on individual learning and development on plans for all employees in FY 2018.
Accomplishments of tasks stated in respective Staff IWP would be rewarded in accordance with the Performance Management Framework.

The reward payment for accomplishment of task for FY 2017 from 1 April 2017 to 31 July 2017 would be paid by the Office in December 2017 from funding provided by government in the 2017/2018 Budget.

STAFF ETHICS All our employees must adhere to the values and principles of State Services as provided under section 123 of the Constitution of the Republic of Fiji.
In FY 2016 and 2017, the Office continued to comply with the General Orders which are the terms and condition of employment for Fiji public service.

Formal procedures require disclosure of any real or apparent conflict of interest and in this regard employees are required to take no part in decisions or audits where real or apparent conflicts of interest may arise.
All employees must sign an annual declaration stating that they will conduct their work in accordance with codes, policies and values and must state real or apparent conflicts of interest.

Conflicts are also documented and assessed prior to the commencement of each audit.

Our annual performance appraisal process also includes an assessment of performance against our values.
21 EMPLOYEE PROFILE Financial Year Size of the workforce Number of employees who left during the year Number of employees who were recruited during the year Number of permanent staff Number of contracted employees 2015 76 7 8 12 64 2016 85 3 11 10 75 2017 81 10 8 8 73 A breakdown of our employees by gender is set out in the table below: E L P O E P R U O 2017 2016 2015 Breakdown of Employees by Gender 51% 49% 47% 53% 42% 58% 0% 10% 20% 30% 40% 50% 60% 70% Number of Females as a % Number of Males as a % The gender profile continued to reflect an increasing trend of recruiting more females over the 3 years and by FY 2017, the number of females by percentage was 51% compared to 47% during FY 2016.
During FY 2016, 8 of the 11 officers recruited were females whilst during FY 2017, 5 from the 8 that were recruited were females.

WORKPLACE HEALTH, SAFETY OHS Representative are required to undergo training before becoming a OHS Committee member as a requirement of Health and Safety at Work (HASAW) Act which states that training of the health and safety representatives and committee members is a legal requirement.

First-aid training which is imperative for our first aid officers was held in August 2017.
Workplace health, safety and welfare is paramount and it is the Office’s responsibility to continue to be active in managing workplace health and safety by identifying risks and addressing them promptly.

The Office’s Health and Wellbeing program was not fully implemented during FY 2016 and 2017.However, from FY2017/2018 this has been included in the Key Performance Indicators for all staffs to improve work-life balance & team building.
Staffs are encouraged to participate in team building activities to improve team bonding as well as to engage in more physical activity.

Other initiatives like six-monthly in-house health screenings continue to be offered to all staff.

22 INTERNAL GRIEVANCE PROCEDURE During FY 2016 & 2017, the Office used the grievance procedure as outlined in the General Orders.

These procedures encourage that grievances be addressed at the earliest possible opportunity to avoid escalation to a formal grievance process.
It is hoped that through consultation, co–operation, mediation and amicable resolutions can be achieved.

The policies and procedures relating to grievance are currently being developed and will be formally adopted in FY 2018.

No internal grievance complaints were lodged during FY 2016 and 2017.

EMPLOYEE PARTICIPATION The recognition of involving employees in decisions that may affect them is of primary importance to us.
The Office promotes a culture based on mutual respect and trust, facilitating innovation, customer focus and continuous improvement.

There were various ways during FY 2016 & 2017 through which the Office engaged employee participation.

This included staff meetings/discussions, meetings with respective Group Directors and the release of staff communiques which are decisions approved during Management committee that affects all staff.
The Office newsletter which promotes office news, policies, procedures, staff profile and general information is an important forum which would be re-introduced in FY 2018.

During July 2017, the Office engaged all employees to participate towards the revision of strategic plan which resulted in a new OAG Strategic Plan for FY 2018-2021.

The plan was finalised in September 2017.


E L P O E P R U O SOCIAL INFORMATION Workforce and Community Committees and Bodies The Office encourages our employees to actively participate in all aspects of their work and professional lives.

The OAG Sports and Social Club Committee assists and facilitates the organizing of sporting and social activities.

The activities organised by the Committee give employees an opportunity to relax with colleagues and peers.
During the FY 2016 & 2017, the following activities were organised: • Celebrating religious events like Easter, Diwali, and Eid Celebrations; • Medical check-up; • Celebrating 100 years of Girmit; • Fiji Institute of Accountants (FIA) Games; • Year End Christmas Party; and • Traditional welcome of the Auditor General.
23 E L P O E P R U O OAG Staff during Diwali Celebration Social Club Activity - Rio Olympics Competition Traditional Welcome of Auditor-General Fiji Institute of Accountants Games Participation Medical Check of Staff 24 INVITATION TO FORUMS OR COMMITTEES During FY 2016, there were no invitations to participate in forums or committees.

However, the Office participated in the following events and committees relevant to the objectives of the Office during FY 2017.
Date April 2017 5 May 2017 10 May 2017 20 June 2017 Event Briefing for Standing Committee on Public Accounts Institute of Internal Audit Congress-Guest Speaker Presentation to the Standing Committee on Foreign Affairs & Defence Presentation – Standing Committee on Natural Resources Mr Sairusi Dukuno & Mr Kuruwara Presenter Mr Ajay Nand & Mr Sairusi Dukuno Mr Ajay Nand Mr Ajay Nand 27 June 2017 Presentation – Standing Committee on Natural Resources Mr Sairusi Dukuno & Mr Abele 27 June 2017 3 July 2017 Forensic Auditing Workshop - Guest Speaker Topic :Public Sector Accounting – USP Guest Speaker Saunivalu Mr Ajay Nand Mr Ajay Nand Tunisalevu E L P O E P R U O 25 7.0 OUR FINANCE OUR FINANCES • Financial Summary • Financial Performance • Audited Financial Statements – FY 2016 • Audited Financial Statements - FY 2017 Financial performance Financial Summary 68 68 Independent auditor’s report 73 75 76 80 Certification of financial statements Financial statements Notes to and forming part of the Financial Statements E C N A N I F R U O 26 E C N A N I F R U O 7.0 OUR FINANCES The Office is an Independent Office established under the Constitution and is funded through annual appropriation by Parliament.
The current financial objective of the Office is to move towards operational efficiencies and aim at recovering costs.

FINANCIAL SUMMARY The OAG was allocated a budget of $2.56 million for FY 2016 and a sum $4.33 million for FY 2017.
Tabulated below are the budget appropriation and actual expenditures incurred by the Office for the past 5 years: Financial Year Budget Appropriation ($) Total Expenditure ($) Percentage Budget Utilised (%) 2013 4,492,200 3,538,195 79 2014 4,020,859 3,613,591 90 2015 4,082,574 3,329,803 82 2016 2,564,712 1,957,050 76 2017 4,331,018 3,819,777 88 95% 90% 85% 80% 75% 70% 65% Percentage Budget Utilised (%) 90% 88% 79% 82% 76% 2013 2014 2015 2016 2017 Financial Year FINANCIAL PERFORMANCE Key highlights of our financial performance and position for the FY 2017 included: • The total revenue collected for the financial period ended 31 July 2017 was $549,965; • Arrears of Revenue for the period was only $51,532.
The reduction of arrears of revenue by 52% was due to introduction of proper debt recovery mechanisms and audited clients paying the audit fees charged on time.

Key highlights of our financial performance and position for the FY 2016 included: • The Statement of Financial operation presents information for the 7 months ended 31 July 2016 as a result of changes in the financial reporting period; • The Office also collects revenue in respect of audit services provided during the year.
These revenues are collected and deposited into Consolidated Fund Account of the government, controlled by Ministry of Economy.

For the FY 2016, the total revenue collected was $188,186 compared to arrears of revenue of $107,746.

27 AUDIT FEES REVENUE & TREND OVER 5 YEARS The total revenue collected for FY 2016 was $188,186 compared to $546,275 in year 2015, a decrease by $358,089 or 65.55%.

The decrease during FY 2016 was attributed to change in financial year 2016 which was for a period of 7 months.
$ s r a l l o D 600000 500000 400000 300000 200000 100000 0 Total Revenue $539,686 $563,238 $546,275 $549,965 $188,186 2013 2014 2015 Year 2016 2017 E C N A N I F R U O ARREARS OF REVENUE – AUDIT FEES TREND OVER THE 5 YEARS The arrears of revenue have been reflecting a decreasing trend which indicate the existence of effective debt recovery mechanism.
$ s r a l l o D 300000 250000 200000 150000 100000 50000 0 Arrears Of Revenue $275,125 $236,105 $107,746 $80,829 $51,532 2013 2014 2015 Year 2016 2017 28 EXPENDITURE vs. APPROPRIATIONS Our budgets are also part of Fiji Government Budget Estimates for the FY 2016 and 2017 under Head 9.

Provided below are total expenditure against appropriation for the period 2013 to 2017.
Total Expenditure against appropriation Year 2013 2014 2015 2016 2017 Appropriation $ 4,492,200.00 $ 4,020,859.00 $ 4,082,574.00 $ 2,564,712.00 $ 4,331,018.00 Actual Expenditure $ 3,538,195 $ 3,613,591 $ 3,329,803 $ 1,957,050 $ 3,819,777 TOTAL EXPENDITURE Appropriation Actual Expenditure $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 $- 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 The Office has been able to stay within budget and utilise 76% of fund appropriated by Parliament during FY 2016 while 88% of funds appropriated were utilised in FY 2017.
E C N A N I F R U O 29 AUDITED FINANCIAL STATEMENTS FINANCIAL YEAR 2016 E C N A N I F R U O 30 E C N A N I F R U O 31 E C N A N I F R U O 32 E C N A N I F R U O 33 E C N A N I F R U O 34 E C N A N I F R U O 35 E C N A N I F R U O 36 E C N A N I F R U O 37 E C N A N I F R U O 38 E C N A N I F R U O 39 AUDITED FINANCIAL STATEMENTS FINANCIAL YEAR 2017 E C N A N I F R U O 40 E C N A N I F R U O 41 E C N A N I F R U O 42 E C N A N I F R U O 43 E C N A N I F R U O 44 E C N A N I F R U O 45 E C N A N I F R U O 46 E C N A N I F R U O 47 E C N A N I F R U O 48 E C N A N I F R U O 49 E C N A N I F R U O 50 I 1 X D N E P P A APPENDIX 1: EXTERNAL AUDIT SERVICE PROVIDERS – FY 2016 & 2017 Under Section 13(1) of the Audit Act 1969, the Auditor General may authorize any person publicly carrying on the profession of accountant to audit the books of accounts of anybody corporate or other body established by the law which he is legally empowered to audit.
The following firms were engaged to carry out external audit services during FY 2016 and 2017: • BDO Deloitte • Ernst & Young • KPMG • PricewaterhouseCoopers • Aliz Pacific The following table sets out the details of external audit providers and audits which were outsourced by financial years.
FY 2017 Entity Fiji Electricity Authority Fiji Broadcasting Corporation Limited Fiji Development Bank Nadi Town Council Fiji Roads Authority Housing Authority of Fiji Food Processors (Fiji) Limited Airports Fiji Limited Suva City Council Yaqara Pastoral Company Limited FY 2016 Entity 1 Fiji Electricity Authority 2 Fiji Broadcasting Corporation Limited 3 Fiji Development Bank 4 Fiji Roads Authority 5 Housing Authority of Fiji 6 Food Processors (Fiji) Limited 7 Airports Fiji Limited 8 Yaqara Pastoral Company Limited Contract Auditor Service Provider BDO Deloitte KPMG KPMG Aliz Pacific Ernst & Young Ernst & Young Ernst & Young KPMG KPMG Ernst & Young Contract Auditor Service Provider BDO Deloitte KPMG KPMG Ernst & Young Ernst & Young Ernst & Young KPMG Ernst & Young 51 I 2 X D N E P P A APPENDIX 2: AUDIT CLIENTS SURVEY INDICATORS FOR FY 2016 & 2017 A.
The Characteristics of OAG A.1.

Is independent.

A.2.

Is balanced and objective in its approach.

A.3.

Is flexible, adaptable, and responsive to the needs of my organisation.

A.4.

Identifies relevant problems and issues.

A.5.

Suggests cost effective and relevant recommendations for the benefit of my organisation.

A.6.

Meets the auditing needs of my organisation.

A.7.

Adds value to my organisation.

Average B.

The OAG’s Services : B.1.

Facilitate accountability.

B.2.


Are timely (delivered promptly when needed).

B.3.

Demonstrate a high level of expertise.

B.4.

Are of high quality.

B.5.

The amount of time auditors spend in my office is sufficient.

B.6.

Are cost effective.

B.7.

Provide value for money.

Average C. The OAG Staff C.1.

Have sufficient understanding of the operations of my organization.

C.2.

Appear to have the relevant auditing experience and skills.

C.3.

Have good communication skills.

C.4.


Are approachable and can be easily contacted.

C.5.

Work openly with my organization and keep management informed of their work plans and progress.

C.6.

Discuss their audit results with management on a timely basis.

Average D. Most recent Audit D.1.

The number of audit staff employed was appropriate.

D.2.

The time spent in my organization by the auditors was appropriate.

D.3.
D.3.

The total time taken from the moment the audit started to the finish time was reasonable.

D.4.

The number of visits by senior management of OAG to my organization during the audit was appropriate.

D.5.

The number of meetings held with senior staff of my organization was appropriate.

D.6.

Staff conduct and behaviour was of high professional standards.

D.7.

Generally, the quality and quantity of audit done was of a high standard and met my expectations.
Average Average Rating 4.81 4.43 4.33 4.24 4.43 4.29 4.38 4.41 Average Rating 4.62 4.24 4.24 4.25 4.19 4.38 4.33 4.33 Average Rating 3.95 4.19 4.38 4.57 4.38 4.33 4.30 Average Rating 4.43 4.33 4.24 3.71 4.19 4.43 4.28 52 APPENDIX 2: AUDIT CLIENTS SURVEY INDICATORS FOR FY 2016 & 2017 (Continued) E. Most recent Audit report E.1.

Was useful.

E.2.

Was of high quality.

E.3.

Was objective.

E.4.

Contained only material issues.

E.5.

Fairly reflected my/our comments.

E.6.


Was concise (not bulky) and easy to read and understand.

Average F. Audit Recommendations F.1.

Specific.

F.2.

Relevant.

F.3.

Practicable to implement.

F.4.

Cost effective.

F.5.

Timely.

F.1.

Specific.


Average Ratings for each category are as follows: • • • • 1.0 – 2.9 3.0 - 3.5 3.6 - 4.5 4.6 – 5.0 : : : : Critical Acceptable Good Excellent I 2 X D N E P P A Average Rating 4.62 4.38 4.33 4.30 4.19 4.40 4.37 Average Rating 4.43 4.43 4.48 4.29 4.43 4.43 4.41 53 APPENDIX 3: ORGANISATIONAL STRUCTURE FOR FY 2016 & 2017 ORGANISATIONAL STRUCTURE 2016 54 ORGANISATIONAL STRUCTURE 2017 55