Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697777697527.pdf (Fiji)
2016-2017 Financial Year: Volume 2 General Administration Sector – Government Ministries and Departments 1.

Head No.

1 – Office of the President 2.

Head No.

2 – Office of the Prime Minister 3.

Head No.

10 – Fijian Elections Office 4.

Head No.

16 – Ministry of Communication, Department of Information & Communication 5.

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Head No.

16A – Department of Information Technology and Computing Services OFFICE OF THE PRESIDENT The Office of the President duly acknowledges with appreciation the opportunity to respond to the Office of the Auditor General Report - 2017 Audit Report on General Administration Sector (Parliamentary Paper No.

07 of 2019).

The following questions were raised to which the Office has responded accordingly.

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1 – Office of the President Appropriation Statement A saving of $1,586,607 or 45% of the total budget was noted for financial year 2017.

The majority saving was from the funds allocated for Capital Construction.

Q1.

What were the reasons for the deferment of capital projects namely the Coronation Ground Drainage, upgrading of the Vakatunuloa and installation of the Fire alarm system?

The Office incurred significant savings in its Capital Construction allocation for the said period.
A revised budget of $1,432,672 was approved to be used during the financial year.

However, the fund was not utilised resulting in a saving of $1,432,672 or 100%.

This was due to the Office deferring the Coronation Ground Drainage Phase 2 project until the Master Plan for the upgrading of the entire Presidential Compound has been considered and funded by Government.
in the 2017-2018 The upgrading of the Vakatunuloa and the installation of the fire alarm system projects were commenced only financial year under Government’s revised approach to upgrading the Executive Residences comprising of the State House, the Prime Minister’s Residence, the Chief Justice’s Residence and the Borron House.

Under the new approach to managing the transferred all upgrading of responsibilities of the projects to the Construction Implementation Unit (CIU) under the Ministry of Economy.
This meant that the Office of the President had to return all the project funds that were allocated in the 2016-2017 financial year.

the Executive Residences, Government 1 | P a g e Timelines of draft financial statements The Committee notes that the draft financial statements were submitted for audit late (after 16 October 2017).
Question 2 What were the reasons for the delay in submission and what mechanisms have the Office put in place to ensure that draft financial statement are submitted to OAG on time?

The delay in submission of the Office’s draft financial statements was due to the transition and familiarization period of the newly appointed Manager Finance upon the resignation of his predecessor in July 2017 to join the Office of the Prime Minister.
The new Manager Finance commenced duties at the end of August 2017 and he was recruited from the private sector following the Open Merit Recruitment Process, hence he had to quickly manage and resolve the closing of all the Accounts and to also submit the Financial Statement on 16 October, 2017.
The mechanisms that the Office has implemented to ensure that the draft financial statements are submitted to the Office of the Auditor General in a timely manner is to strictly adhere with MOE’s Timeline for Closing of Accounts and to improve its financial management operations in accordance with the Finance Management Act of 2004, the Financial Instructions and the Office’s Finance Manual.

The Timeline for Closing of Accounts and submission of Financial Statement is enclosed as Annex 1.
The Office of the President through the continued support of the Ministry of Economy and findings/recommendations of the Auditor-General over the years has enhanced the office to elevate and improve its financial management operations up to par through a collaboration of efforts in relation to: a. the recruitment of a qualified and highly experienced Accounts Officer/Manager Finance and Clerical Officers also in 2014 and in 2017 consecutively; b. the establishment of a self-accounting operation by 2015; c. the clearance of all outstanding reconciliations by 2016; and d. the ongoing recruitment and training of replacement accounting personnel including a new Finance Manager who is not only experienced but is also highly qualified.
2 | P a g e Timelines of signing the audited financial statements The Committee notes that the audited financial statements were signed after 15 days from issue for signing.

Question 3 What mechanisms have the Office put in place to ensure that audited financial statement are signed on timely basis and returned to OAG for issue of audit opinion?
The Office through the Manager Finance are strictly adhering and implementing the aforementioned Timelines matrix in Annex 1 to monitor and ensure that the Audit report shall be signed off within 48 hours upon receiving of audited financial statement and returned to OAG for issue of the audit opinion.
To conclude, the Office of the President is always guided by the Ministry of Economy and the Office of the Auditor General’s recommendation and guidance which has immensely assisted the Office to improve its financial management capabilities and to be in-line with the whole-of-Government approach to improve public sector management and remains committed to fulfilling its roles guided by appropriate accounting processes and procedures.
__________________________________________________ 3 | P a g e Appendix 1: Timelines for Closing of Accounts and Submission of FS Activity Cut-off date for issue of LPO's Cancelled outstanding PO's to be completed Payments for essential items only Complete all payments for all outstanding invoices and commitments Cut-off date for Excess Approval submission for current financial year Open payables and undisbursed vouchers for August to May to be cleared Lodgement of all Revenues BLC account zerorised Clearance of unpresented cheques Clearance of all stale cheques July Journals to be processed Initial GL report Supplementary Journals Final GL Report Unutilized SLG 84 funds returned IDC Clearance IDC reconciliation submission Retired of Imprest Virement submission to Budget & Planning Virement submission to FMIS Tender Board approval obtained from FPO for RIE release Final submission for approval of applications for RIE Submission of all Reconciliation to MOE Misallocation/over-expenditure to be regularised Arrears of revenue return Last day for payment of deductions Submission of Agency Financial Statement to Auditor General Dates 31-May 23-Jul 29-Jul 29-Jul 16-Jul 6-Mar 31-Jul 8-Jul 31-Jul 8-May 8-Jul 8-Dec 19-Aug 23-Aug 7-Oct 8-May 30-Aug 19-Jul 16-Aug 23-Aug 31-May 17-Jun 15-Aug 23-Aug 30-Aug 29-Jul 31-Oct Within 48 Hours Signed Off Agency Financial Statement to Auditor General and Return Submission of Agency Annual Report to Minister 31-Dec Officer Responsible Official Secretary Manager Finance Official Secretary Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Manager Finance Official Secretary Official Secretary Official Secretary Office of the Prime Minister Management Comment on 2017 Audit Report No Audit
 Issue Committee The notes that a sum of $5,818,901 relating grant to was projects carried over.
small Audit Recommendation the What were reasons the funds had to be carried over into the 2018 financial year 1 2 3 Committee The notes the draft financial statement were submitted for audit late after 16 October 2017 the What were the reasons for in delay submission and what mechanism have the OPM put in place to ensure that draft fi5ncial statement are submitted to OAG on time Committee The the that notes management comments provided to OAG were after 21days from the date the draft management letter was issued What mechanism the Office have in place to put ensure that management are comments provided on a timely manner to OAG OPM Management response Way Forward The OPM was appropriated $9m for the Small Grant Projects in the 2016/17 budget estimate.
Towards the end of the financial year -31 July 2017, $5.82m in small grant projects were un-utilized (not paid/spent) but had projects that were committed for -work had commenced that were ‘’in progress’’ and therefore funds were needed for these projects .These included 38 projects.
There was no carry over as OPM only utilized the fund allocated in the 2016/17 budget The late submission was due to the internal process taken to finalize the report since OPM needed to take all reasonable measures in ensuring that information provided in AFS was accurate and reliable The OPM will that ensure funds allocated for Small Grant in a given financial year are fully utilized In that year.

that The OPM will ensure it prioritize submission of its AFS in future to meet submission timeline.
The late submission was due to the delay in signing of the AFS by OPM management they were since officially engaged abroad.

We have to await for their return to office in order to sign the AFS before submitting it to OAG’s Office.

that The OPM will it ensure prioritize the submission of its AFS to meet submission timeline.
Information Technology & Computing Services 31 Loftus Street, Kelton House, PO Box 784 Suva, Republic of Fiji Telephone: (679) 3306005, Facsimile: (679) 3300954, Email: info@itc.gov.fj, Website: www.itc.gov.fj Service Excellence through e-Governance External Memorandum From: The Manager ITC Services To: The Permanent Secretary for Communications, Information & ITC Services Date: 06/09/2019 Ref: ITC 10/05 Subject: CLARIFICATIONS OF ISSUES – 2017 AUDIT REPORT ON GENERAL ADMINISTRATION SECTOR This is in reference to Parliament of Fiji correspondence to ITC via memorandum REF 611-7/15 dated 26th August 2019 on the above subject.
We hereby attach the department’s responses to the queries raised by the Office of the Auditor General in the 2017 Audit Report.

We will be more than happy to give an oral presentation to the Public Accounts Committee or provide more information for clarifications.
………………............. Nisar Ali Manager ITC Services All correspondence to be addressed to: The Manager ITC Services Section 16A: Department of Information Technology and Computing Services ANSWERS TO AUDIT QUESTIONS QUESTIONS Part A: Financial Statements Section 16A.3 Appropriation Statement 1.

Explain the reasons for the significant lapses in Appropriation which total to $8,290,118?
Management’s reply 1.1 Due to the number of vacant positions, there were savings in the SEG1Established staff and SEG2 Un-established staff allocations as follows:  Personal Emoluments (PE) - $1,649,172  Wages - $14,424 1.2 For the above reason, the following arose resulting in non-utilization of allocations  CAPEX Projects were delayed  Because of the delayed projects, there was savings in the following: o Overtime for established staff o Allowance for un-established staff 1.3 In terms of SEG3 Travel and Communications, there was reduction in: o Use of travel and subsistence expenses o Use of telephones and line rentals.
1.4 There was savings in the following allocations for SEG4 Maintenance and Operations o Use of vehicles, fuel and oil o Use of stationery and printing materials o Use and payment of computer rentals o Use of machines and power supply o Use of water 1.5 There was savings in SEG5 Purchase of Goods and Services allocations 1.6 In SEG7 Special Expenditures there were delays in receiving completed invoices with supporting documents for Consultancy payments 1.7 The funds allocated for capital projects SEG 9 Capital Purchases and SEG 10 Capital Grants & Transfers were not fully utilized due to partial completion of work or work in progress.
 Digitization - The utilization of these funds is based upon request(s) from the three offices (BDM, Registrar of Companies and Titles Office) for the purchase of computers, special scanners and UPS to scan very old documents that are in hard copies.
 Central VOIP - ITC was dependent on TFL for the changes to be made in the Alcatel PABX  Data Center Certification – majority of the policies for ISMS and QMS certification has been completed and further work on certification can commence once repairs to the Government Data Center have been completed.

 Government Fibre Network - ITC was dependent on Telnet and Fiji Roads Authority.
Telnet was the contracted company carrying out the project and Fiji Roads Authority was responsible for approvals to have any diggings done on the roads  National Switch / Fiji Pay.

ongoing discussions on this project.

1.8 Savings in SEG 11 Vallue Added Tax Input Tax was due to reduction in Actual Expenditure.

Part B: Assessment of Financial Governance Section16A.7 Timelines of Provision of Management Comments and Signing of Financial Statements 2.
Explain what measures have been taken to ensure that the Management responses and signed accounts are provided to the Office of the Auditor General on time?

Management’s reply 2.1 Monitoring and follow- up by the management to ensure that the deadlines are met.

2.2 A deadline has been set prior to the deadline given by the Ministry of economy by the accounts department in regards to the submissions to the Auditor general’s office.
2.3 Prioritizing the audit responses and urgency of providing signed accounts to the OAG’s on time as utmost important.

2.4 Proper planning and time management to ensure that the responses and statements are completed on time.

2.5 Effective communication between the management and the accounts team has been implemented to ensure that above gets completed on time.

Part C: Significant Audit Findings Section16A.8 Human Resources Constraint 3 Please provide the current update on the vacant posts.
If vacant posts still exist, would you advise the Committee on the measures taken to ensure that normal operations of the Department is not affected?
Management’s reply 3.1 The current total staff roll and vacant posts is detailed below: Staffs Available Vacant Posts Total Established Un-established 37 2 Established 68 GWEs 1 108 3.2 Status of Vacant posts Status of Interviews and Appointments Number of staff Appointees starting duty on 16.09.19 Posts processed and awaiting Steering Committee approval for the appointment Interviews conducted & HR paper under process Posts advertised & interviews to be conducted in September Total posts to be filled 2 5 3 4 14 Comments: By the end of 2019 year, these 14 posts will be filled and the total vacant posts will decrease to 55.
3.3.

The Civil Service Reform Management Unit (CSRMU) has engaged an Organization Design Adviser (ODA), who is now available to study and review the organization structure of ITC Services The review is in accordance with the strategic plan will assist in achieving the organization objectives, mission and vision.

3.4 ITC is multiskilling staff and ensuring that they are trained accordingly.
Although the department is operating below the number of staffing it has been allocated, ITC services continued to provide services to its users and there is barely any disruption in the services.

Staffs are trained to multi-task, where they are performing two or more tasks simultaneously and prioritizing work by effective planning to draw up a timeline for an action.

Where staff was assigned more responsibilities, the salary was adjusted accordingly.
3.5 The department will await the outcome of the review by the CSRMU on right sizing the department and then intend to advertise and fill up the vacant positions.

It is always a challenge to attract and retain IT staff at ITC as once they work in the state of the art Government Data Center; they get offered jobs in the private sector.

We mitigate this by ensuring that we continuously mentor staff to up-skill themselves through further education, both local and overseas training.