Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697780072104.pdf (Fiji)
EXCELLENCE IN PUBLIC SECTOR AUDITING SUPPLEMENTARY REPORT TO THE AUDIT REPORT ON THE WHOLE OF GOVERNMENT FINANCIAL STATEMENTS AND ANNUAL APPROPRIATION STATEMENT OF THE REPUBLIC OF FIJI FOR THE YEAR ENDED 31 JULY 2016 PARLIAMENT OF FIJI PARLIAMENTARY PAPER NO.
115 OF 2017 EXCELLENCE IN PUBLIC SECTOR AUDITING SUPPLEMENTARY REPORT TO THE AUDIT REPORT ON THE WHOLE OF GOVERNMENT FINANCIAL STATEMENTS AND ANNUAL APPROPRIATION STATEMENT OF THE REPUBLIC OF FIJI FOR THE YEAR ENDED 31 JULY 2016 PARLIAMENT OF FIJI PARLIAMENTARY PAPER NO.
115 OF 2017 Table of Content 1.0 BACKGROUND ............................................................................................................................................................. i 1.1 Introduction..................................................................................................................................... i 1.2 OAG processes for preparation of reports to Parliament ............................................................... i 1.3 2016 Independent Audit Report .................................................................................................... ii 2.0 VOLUME 1: AUDIT REPORT OF THE WHOLE OF GOVERNMENT FINANCIAL STATEMENTS AND ANNUAL APPROPRIATON STATEMENT 2016 .......................................................................................................................... 1 2.1 Section 3.6 – Page 31: Misplaced Share Certificates ................................................................... 1 2.2 Section 6.4 – Page 45: Payment Anomalies................................................................................. 2 2.3 Supplementary Section 6.4 – Page 45: Payment Anomalies ....................................................... 5 3.0 VOLUME 2: AUDIT REPORT ON GENERAL ADMINISTRATION SECTOR 2016 ..................................................... 8 3.1 Section 18.18.6 – Page 40: No Documentation of Authority to Purchase Family Packs ............. 8 4.0 VOLUME 3: AUDIT REPORT ON SOCIAL SERVICE SECTOR 2016 ........................................................................ 9 4.1 Section 21.9 – Page 12: Backlog Audited Accounts for Grant recipients ..................................... 9 4.2 Supplementary Section 21.9 – Page 12: Backlog Audited Accounts for Grant recipients ......... 10 4.3 Section 24.11 – Page 14: Failure to Implement Internal Control - Payment Anomalies ............ 11 4.4 Supplementary Section 24.11 – Page 14: Failure to Implement Internal Control - Payment
 Anomalies.................................................................................................................................... 12 5.0 VOLUME 4: AUDIT REPORT ON ECONOMIC & INFRASTRUCTURE SECTOR 2016 ........................................... 14 5.1 Section 35.4 – Page 3: Grant to Fiji Sugar Corporation (FSCL) on Sugar Development ........... 14 5.2 Section 37.13 – Page 11: Backlog Financial Statements – Municipal Council and Statutory Authorities ................................................................................................................................... 15 5.3 Supplementary Section 37.13 – Page 11: Backlog Financial Statements – Municipal Council and Statutory Authorities .................................................................................................................... 17 APPENDIX 4.2: DETAILS OF NON-SUBMISSION OF AUDITED ACCOUNTS ....................................................................... 19 SUPPLEMENTARY APPENDIX 4.2: DETAILS OF NON-SUBMISSION OF AUDITED ACCOUNTS ...................................... 19 APPENDIX 4.4: DETAILS OF EXPENDITURES WITHOUT PROPER AUTHORISATION ...................................................... 21 SUPPLEMENTARY APPENDIX 4.4: DETAILS OF EXPENDITURES WITHOUT PROPER AUTHORISATION ..................... 21 APPENDIX 24.1: DETAILS OF PAYMENT ANOMALIES ......................................................................................................... 22 SUPPLEMENTARY APPENDIX 24.1: DETAILS OF PAYMENT ANOMALIES ........................................................................ 24 SUPPLEMENTARY REPORT ___________________________________________________________________________________ 1.0 BACKGROUND 1.1 Introduction In my meeting with representatives of Ministry of Economy and the Solicitor General’s Office at the Ministry of Economy on 31 August 2017, a number of errors were highlighted in the Audit Report on Whole of Government Financial Statements and Annual
 Appropriation Statement of the Republic of Fiji for the year ended 31 July 2016, which was tabled in Parliament on 11 July 2017.
As a result of my review of the evidence provided by the Ministry of Economy, I have revisited the relevant parts of the 2016 Report with corrections and clarifications to the audit issues reported.

This Supplementary Report to the 2016 Audit Report is issued to correct and clarify the errors identified so that proper scrutiny can take place during the Standing Committee on Public Accounts process.
To assist in reading the report, the page and section number and audit findings as reported in respective volume of the 2016 Audit Report is shown with error highlighted and reasons stated for exclusion.

This is immediately followed by the corrected (supplementary) audit finding.

1.2 OAG processes for preparation of reports to Parliament The following processes are adopted for preparation of all audit reports to Parliament: Step 1: Issue of Draft Audit Memorandum with audit findings.
Step 2: Exit Interview (Meeting) held with auditee management following receipt of comments.

In some cases, Auditee management may request for waiver of this process.

Step 3: Issue of Final Audit Memorandum with audit findings finalised.

Step 4: Audit Report issued with or without qualification for financial statement audits Step 5: Key audit findings included in draft Auditor-General’s Report to Parliament.
Step 6: Draft report reviewed by Auditor General and additional clarifications obtained where necessary.

Step 7: Proof – reading and review of facts in the report.

Step 8: Final Auditor General’s Report to Parliament sent to printers.

Step 9: Final check done before report is submitted for tabling in Parliament.

However, it is apparent that the above processes need to be further refined and improved so that errors and omissions are eliminated.
SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 2.0 VOLUME 1: AUDIT REPORT OF THE WHOLE OF GOVERNMENT FINANCIAL STATEMENTS AND ANNUAL APPROPRIATON STATEMENT 2016 2.1 Section 3.6 – Page 31: Misplaced Share Certificates The Minister may invest public money and other money within the meaning of the Financial Management Act in securities issued by a statutory authority.1 A share certificate confirms of legal ownership of the number of shares held by shareholders in a particular entity.
The audit noted that the share certificates for investments totalling $14,684,473 were misplaced by the Ministry of Economy.

These share certificates were also not available with the Ministry of Public Enterprise.

Refer to Table 3.7 for details.


Table 3.7: Details of Misplaced Share Certificates Entity Rewa Rice Limited Airports Fiji Limited Unit Trust of Fiji (Management) Limited International Bank for Reconstruction and Development International Finance Corporation Food Processor Fiji Limited Total Total No.
of Shares owned by Government Shares without Share Certificates Total Value of Shares without Share Certificates ($) 753,112 92,300,180 50,000 987 287 687,680 2 5,225,136 25,000 876 159 343,840 4 5,225,136 25,000 8,760,000 330,493 343,840 14,684,473 During the audit, confirmations were sought from entities in which government had investments to verify control or rights over government’s shares.

Details are reflected in Table 3.8.

Table 3.8: Status of Confirmation for Shareholding of Government No.
Names of Entities that did not provide confirmations Amount ($m) 1.

Post Fiji Limited 2.

Unit Trust of Fiji (Trustee) Ltd 3.

Unit Trust of Fiji (Management) Ltd 4.

Fiji Airways 5.

Viti Corps Company Ltd 6.

Yaqara Pastoral Company Ltd 7.

Copra Millers Fiji Ltd 8.

Yaqara Group Ltd 9.

Daily Post 10.

Air Fiji Ltd 11.

National Trading Corp Ltd Total 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

5.60 0.80 0.05 13.30 6.00 1.20 6.40 0.09 0.90 0.20 3.30 37.84 No.
Names of Entities that provided confirmations Amalgamated Telecom Holdings Limited Airports (Fiji) Limited Fiji Broadcasting Corporation Ltd Fiji Ports Corporation Limited Food Processors Fiji Limited Fiji Hardwood Corporation Fiji Pine Ltd Asian Development Bank Fiji Rice Limited Pacific Fishing Company Limited International Finance Corporation Air Terminal Services Fiji Sugar Corporation Ltd International Bank for Reconstruction Development Amount ($m) 80.30 92.30 --- 30.00 0.70 90.00 61.00 10.50 1.50 14.70 0.60 0.80 15.10 10.00 407.50 1 Financial Management Act 2004 , Section 55(1)(b) 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 1 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 In the absence of share certificates, the verification of government’s control or rights over the shares held cannot be confirmed.
Moreover, the absence of independent confirmations for investments worth $37.8 million or 8.5% of the total investment of $445.34 million entails that investments cannot be assured to be fairly stated.

The above findings indicates poor maintenance of government investment records by both the Ministry of Economy and the Ministry of Public Enterprise.
Recommendations  The Ministry of Economy through the Ministry of Public Enterprise should ensure that all investment records of government are properly maintained and kept in a secured location.

 The respective Ministries should also liaise with the companies for share certificates to be provided as evidence of shareholding and investments made.

Ministry’s Comments No comments were received when the report was sent for printing on 29 June 2017.
The comments below were later received from the Ministry of Public Enterprises through the Ministry of Economy on the 13 July 2017.

We note and agree with the recommendation made.

Please find attached the share certificates for Airport Fiji Limited, Unit Trust of Fiji (Management) Limited and Food Processors Fiji Limited.
With regards to International Bank for Reconstruction and Development and International Finance Corporation, MPE is not a shareholder in these entities and do not hold its share certificate.

The Ministry of Economy clarified that entities such as the International Finance Corporation and International Bank for Reconstruction and Development do not issue share certificates as such, the certificates cannot be missing.

This has been confirmed in writing by both organisations.
Moreover, third party confirmations were given by the State Owned Enterprises advising the value of investment by Government.

This gives the assurance and confirmation of Government’s investment as provided by the directors of the SOEs whose duties and liabilities are enshrined in the Companies Act 2015.
In addition, given that there was no new equity investment during the period of the report, the office, in line with modern audit practices, could have relied on the share certificates previously provided by the Ministry of Public Enterprises.

As a result the issue is resolved.

2.2 Section 6.4 – Page 45: Payment Anomalies At least once in every year, the Auditor General shall inspect, audit and report to Parliament on the public accounts of the State.
In the report, the Auditor General must state whether in his or her opinion expenditure has been applied for the purpose it was authorised.2 2 Constitution of the Republic of Fiji – Section 152 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 2 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 The Accounting Head of an agency is responsible to the Permanent Secretary for the effective design and operation of internal controls across the agency.3 Audit review of the expenditures incurred by the Ministries/Department noted the following anomalies:  Audited accounts were not always submitted for grant payments totalling $245,074,878 to various entities.
Refer to Appendix 4.2 for details.

 Capital projects were not properly monitored resulting in numerous anomalies in projects totalling $38,331,063.

Refer to Appendix 4.3 for details.

 Expenditures were not always properly authorised ($16,886,144) and budgeted ($5,272,698).

Refer to Appendix 4.4 and Appendix 4.5 for details.

Furthermore, expenditures amounting to $619,636 were posted to various SEGs against a zero revised budgeted provision.

Refer to Appendix 4.6 for details.


 Supporting documentations for procurements totalling $17,881,268 were not provided for audit verifications.

Refer to Appendix 4.7 for details.

 Equipment worth $2,940,133 were not updated in the Fixed Asset Register.

Refer to Appendix 4.8 for details.

 Incorrect posting of expenditure to various allocations amounted to $2,055,750.

Refer to Appendix 4.9 for details.


 Tenders were not always called and competitive quotes not obtained for procurements amounting to $2,039,322.

Refer to Appendix 4.10 for details.

 Outstanding accountable advance (SAG 57000) of $1,700,879 was not cleared for the period ending 31 July 2016.

Refer to Appendix 4.11.

 Journal vouchers raised by the Office of President for clearance of the outstanding accountable advances amounting to $832,4254 were not adequately supported.
 A variance of $620,099 was noted between FMIS general ledger and actual expenditure of the Foreign Missions.

 Provisional tax of $281,785 was not withheld on payment made for contract service.

Refer to Appendix 4.12 for details.

The above findings indicate the ineffective controls that exist across government.

Consequently, audit could not substantiate the accuracy and the completeness of the expenditure balance of $1,756,682,415.
Recommendations Ministries/Departments must ensure:  that all capital projects are properly planned and adequate arrangements made to implement the projects as quickly as possible when funds are provided;  ensure that supporting documents are maintained and provided for audit verifications; 3 Finance Instruction 2010 – Section 59 4 Balance carried forward from previous years 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 3 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017     that assets with a value in excess of $2,000 is recorded in the fixed asset register; that all advance accounts are cleared within the 7 days deadline.
Outstanding balances should be recovered from officers concerned through salary deduction; to comply with the changing requirements of FRCA for Provisional Tax deductions for all contract payments; and regular evaluation of internal control is carried out and corrective action is taken to address the any weaknesses identified.

Ministry’s Comments The decision to implement capital projects on time lies within the various Permanent Secretaries.

That includes planning and up to implementation.


We have no other powers as the Chief Financial Officer of an agency is the PS.

However, we continue to provide regular updates and advice to Ministries/Departments regarding their funding utilization.

On another note, Ministries are required to provide acquittals when requesting for release of funds.

This is part of the RIE Checklist.


The Ministries and Departments have to adhere to Procurement Regulation 2010, Finance Instructions and agency’s Finance Manual for its procurement of goods, services and works.

This has already been highlighted in Accounting Heads meeting.

It is the prerogative of Ministries and departments to update the fixed asset register as they need to maintain the list of assets the particular ministry/department holds.
However, Ministry of Economy through its FMIS user group and accounting heads meeting have also stressed the importance of keeping an up to date fixed asset register.

There is an Accountable Advance Policy in place and the issue of clearances is documented in all Ministries and Departments Finance Manuals duly endorsed by the respective Heads of Ministries and Departments.
The Permanent Secretaries under the Financial Management Act are also responsible for the effective system and effective internal controls in their various ministries and departments.

Changing requirements of FRCA are highlighted in accounting heads meeting that is held on monthly basis and respective accounting heads are responsible to adhere to all requirements of FRCA.

Furthermore, FRCA also makes presentations on the new changes in the accountings heads meetings.
As per Part 10 of Financial Instructions, section 59 (2), the prerogative is with the accounting heads to make recommendations to Permanent Secretaries for the effective design and operation of internal controls across the agency.

Two of the issues highlighted above have been resolved following the verification and correction carried out with the Ministry of Economy.

These include: i.

Audited accounts were not always submitted for grant payments totalling $245,074,878 to various entities; and ii.
Expenditures were not always properly authorised amounting to $16,886,144.

(Appendix 4.4) Reasons for the exclusion and amendment to the issues include the fact that a number of draft accounts were already submitted to the Auditor General’s Office and a number of agency reports have already been audited.

A Supplementary Appendix 4.2 on the 2016 Report is provided showing an updated status on the submission of audited financial statements.
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 4 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 In relation to Appendix 4.4, the procurement of Family Packs was done in accordance with the Procurement Regulations 2010, which permits the Ministry to make such purchases during times of emergency.
In addition, with regards to the budgeted purchases totalling $6,947,335, the Ministry of Economy does not have the power to approve transactions for other budget sector agencies.

Approval of transactions is granted by the relevant Permanent Secretary.

The Ministry of Economy merely confirms the availability of funds in the budget for the agency.
Furthermore, in relation to the use of funds to the tune of $4,600,000 for the cane replanting programme when the funds were earmarked for sugar rehabilitation post-Cyclone Winston.

This is not an issue as the use of funds for the “Sugar Development Program” (Head 35) for the purpose of cane replanting is within the ambit of the objective of the Sugar Development Program, which is to increase cane production.
2.3 Supplementary Section 6.4 – Page 45: Payment Anomalies At least once in every year, the Auditor General shall inspect, audit and report to Parliament on the public accounts of the State.
In the report, the Auditor General must state whether in his or her opinion expenditure has been applied for the purpose it was authorised.5 The Accounting Head of an agency is responsible to the Permanent Secretary for the effective design and operation of internal controls across the agency.6 Audit review of the expenditures incurred by the Ministries/Department noted the following anomalies:  Audited accounts were not always submitted for grant payments to various entities.
Refer to Supplementary Appendix 4.2 for details.

 Capital projects were not properly monitored resulting in numerous anomalies in projects totalling $38,331,063.

Refer to Appendix 4.3 for details.

 Expenditures were not always properly authorised ($2,745,435) and budgeted ($5,272,698).

Refer to Supplementary Appendix 4.4 and Appendix 4.5 for details.

Furthermore, expenditures amounting to $619,636 were posted to various SEGs against a zero revised budgeted provision.
Refer to Appendix 4.6 for details.

 Supporting documentations for procurements totalling $17,881,268 were not provided for audit verifications.

Refer to Appendix 4.7 for details.

 Equipment worth $2,940,133 were not updated in the Fixed Asset Register.

Refer to Appendix 4.8 for details.

 Incorrect posting of expenditure to various allocations amounted to $2,055,750.

Refer to Appendix 4.9 for details.


 Tenders were not always called and competitive quotes not obtained for procurements amounting to $2,039,322.

Refer to Appendix 4.10 for details.

 Outstanding accountable advance (SAG 57000) of $1,700,879 was not cleared for the period ending 31 July 2016.

Refer to Appendix 4.11.


5 Constitution of the Republic of Fiji – Section 152 6 Finance Instruction 2010 – Section 59 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 5 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017  Journal vouchers raised by the Office of President for clearance of the outstanding accountable advances amounting to $832,4257 were not adequately supported.
 A variance of $620,099 was noted between FMIS general ledger and actual expenditure of the Foreign Missions.

 Provisional tax of $281,785 was not withheld on payment made for contract service.

Refer to Appendix 4.12 for details.

The above findings indicate the ineffective controls that exist across government.
Recommendations Ministries/Departments must ensure:       that all capital projects are properly planned and adequate arrangements made to implement the projects as quickly as possible when funds are provided; ensure that supporting documents are maintained and provided for audit verifications; that assets with a value in excess of $2,000 is recorded in the fixed asset register; that all advance accounts are cleared within the 7 days deadline.
Outstanding balances should be recovered from officers concerned through salary deduction; to comply with the changing requirements of FRCA for Provisional Tax deductions for all contract payments; and regular evaluation of internal control is carried out and corrective action is taken to address the any weaknesses identified.

Ministry’s Comments The decision to implement capital projects on time lies within the various Permanent Secretaries.

That includes planning and up to implementation.


We have no other powers as the Chief Financial Officer of an agency is the PS.

However, we continue to provide regular updates and advice to Ministries/Departments regarding their funding utilization.

On another note, Ministries are required to provide acquittals when requesting for release of funds.

This is part of the RIE Checklist.


The Ministries and Departments have to adhere to Procurement Regulation 2010, Finance Instructions and agency’s Finance Manual for its procurement of goods, services and works.

This has already been highlighted in Accounting Heads meeting.

It is the prerogative of Ministries and departments to update the fixed asset register as they need to maintain the list of assets the particular ministry/department holds.
However, Ministry of Economy through its FMIS user group and accounting heads meeting have also stressed the importance of keeping an up to date fixed asset register.

There is an Accountable Advance Policy in place and the issue of clearances is documented in all Ministries and Departments Finance Manuals duly endorsed by the respective Heads of Ministries and Departments.
The Permanent Secretaries under the Financial Management Act are also responsible for the effective system and effective internal controls in their various ministries and departments.
7 Balance carried forward from previous years 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 6 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Changing requirements of FRCA are highlighted in accounting heads meeting that is held on monthly basis and respective accounting heads are responsible to adhere to all requirements of FRCA.

Furthermore, FRCA also makes presentations on the new changes in the accountings heads meetings.
As per Part 10 of Financial Instructions, section 59 (2), the prerogative is with the accounting heads to make recommendations to Permanent Secretaries for the effective design and operation of internal controls across the agency.
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 7 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 3.0 VOLUME 2: AUDIT REPORT ON GENERAL ADMINISTRATION SECTOR 2016 3.1 Section 18.18.6 – Page 40: No Documentation of Authority to Purchase Family Packs If a state of emergency is declared under a written law, the Minister of Economy may authorise such government expenditure to meet the emergency as is approved by the Cabinet, where (a) the money involved has not already been appropriated; or (b) the money has already been appropriated for another purpose.8 The audit noted that on 07/03/2016, the Division had started purchasing family packs rather than bulk purchases of rations at a rate of $41 per pack for the victims situated in the Districts of Lautoka, Ba, and Tavua.
No documentation was provided on the authority given to purchase the family packs and not bulk purchases.

Compared to purchases made in bulk, purchases made in family packs were found to be more expensive.

Details of purchases of family packs purchased as at 21/03/2016 are shown in Table 18.29.
Table 18.29: Family Packs 2 Weeks Ration Purchased for 3 divisions Date Vendor 07/03/16 07/03/16 07/03/16 07/03/16 07/03/16 07/03/16 07/03/16 15/03/16 15/03/16 15/03/16 14/03/16 Total Supplier A Supplier A Supplier A Supplier A Supplier A Supplier A Supplier A Supplier A Supplier A Supplier A Supplier A Purchase Order No.
92991-003816 92991-003820 92991-003821 92991-003822 92991-003823 92991-003824 92991-003825 92991-003872 92991-003872 92991-003872 92991-003862 Total Cost ($) 351,452 351,452 253,462 449,032 170,314 407,950 407,950 42,550 97,680 8,806 52,726 $2,593,374 It is prudent to create balance between need and financial implications of decisions made in state of emergency.
Recommendation The rationale and authority for decisions made in emergency situations which have financial implications should be properly documented for information and records.

Management Comments The decision to purchase family packs was from the Hon.

PM and the AG who is also the Minister of Economy together with the Commissioner West.
Reason for the exclusion of the issue was that the procurement of Family Packs was done in accordance with the Procurement Regulations 2010, which permits the Ministry to make such purchases during times of emergency.

As such the issue is resolved.
8 Financial Management Act 2004 Para 24 (1) 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 8 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 4.0 VOLUME 3: AUDIT REPORT ON SOCIAL SERVICE SECTOR 2016 4.1 Section 21.9 – Page 12: Backlog Audited Accounts for Grant recipients A grant agreement must provide for the organisation or person receiving the grant to agree to keep proper files and accounting records in relation to the grant and to make these files and records available upon request by the administering agency or the Auditor-General.
Grants must only be paid in accordance with the terms and conditions in the grant agreement.9 The audit noted that the grant recipients have not submitted the audited accounts and acquittals to the Ministry of Education.

Refer to Table 21.14 for details.

Table 21.14: Details of Submission of Audited Accounts and Acquittals Year 2015 2016 Total Grant Recipients Grant Amount ($) Remarks Fiji Museum Fiji Arts Council Fiji Arts Council 2015 audited accounts yet to be submitted.
330,000 200,000 280,183 2016 First quarter acquittal report not yet submitted even though the Ministry proceed to pay their 2nd quarter grant 2,310,183 In the absence of audited financial statements, the Ministry cannot substantiate whether grants were used for the intended purpose.

Recommendation  The Ministry should closely monitor the submission of acquittal reports and audited financials to ensure the grant money are utilised for the purpose it was appropriated for.
Management Comments Audit is noted.

The Department of Heritage and Arts provided financial assistance to the Fiji Museum in 2013 to update its accounts.

The Fiji Museum has therefore started on the process and has engaged Ernst and Young Company for auditing.

To date audit has been done for 2006 to 2009 accounts and they are currently updating 2010 to 2012 accounts for auditing.

Parts of their books are currently with FICAC as investigation against the former Director is still under way.
This process will continue until auditing of Fiji Museum accounts is updated.

The Fiji Arts Council account was last audited in 2003.

Several attempts have been made by FAC and the Auditor General’s Office to address the issue but have no in-road progress have been made till to date.

The latest correspondence with Auditor General was in December 2015 when FAC was advised to update its account before audit is undertaken.
The Department in consultation with the Fiji Arts Council has taken the matter seriously now and has treated the updating of the accounts as a special project with financial support from the Department.

A team has been mobilized comprising of 2 project staff to commence updating the FAC account as from March 2016.

This project will be monitored by the Department until all FAC accounts are updated so that auditing could commence as soon as possible.
The amendment to the issue is due to an addition error in the table of details of outstanding accounts.

A supplementary Table 21.14 on the 2016 Report is provided showing an updated status on the submission of audited financial statements.

9 Finance Instructions 2010 – Section 16 (3) & (4).
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 9 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 4.2 Supplementary Section 21.9 – Page 12: Backlog Audited Accounts for Grant recipients A grant agreement must provide for the organisation or person receiving the grant to agree to keep proper files and accounting records in relation to the grant and to make these files and records available upon request by the administering agency or the Auditor-General.
Grants must only be paid in accordance with the terms and conditions in the grant agreement.10 The audit noted that the grant recipients have not submitted the audited accounts and acquittals to the Ministry of Education.

Refer to Table 21.14 for details.

Table 21.14: Details of Submission of Audited Accounts and Acquittals Grant Recipients Fiji Museum Fiji Arts Council Remarks 2010 – 2016 audited accounts yet to be submitted to Ministry.
(Fiji Museum appoints its own external auditor) 2004 – 2016 audited accounts yet to be submitted to Ministry.

In the absence of audited financial statements, the Ministry cannot substantiate whether grants were used for the intended purpose.

Recommendation The Ministry should closely monitor the submission of acquittal reports and audited financials to ensure the grant money are utilised for the purpose it was appropriated for.

Management Comments Audit is noted.


The Department of Heritage and Arts provided financial assistance to the Fiji Museum in 2013 to update its accounts.

The Fiji Museum has therefore started on the process and has engaged Ernst and Young Company for auditing.

To date audit has been done for 2006 to 2009 accounts and they are currently updating 2010 to 2012 accounts for auditing.

Parts of their books are currently with FICAC as investigation against the former Director is still under way.
This process will continue until auditing of Fiji Museum accounts is updated.

The Fiji Arts Council account was last audited in 2003.

Several attempts have been made by FAC and the Auditor General’s Office to address the issue but have no in-road progress have been made till to date.

The latest correspondence with Auditor General was in December 2015 when FAC was advised to update its account before audit is undertaken.
The Department in consultation with the Fiji Arts Council has taken the matter seriously now and has treated the updating of the accounts as a special project with financial support from the Department.

A team has been mobilized comprising of 2 project staff to commence updating the FAC account as from March 2016.

This project will be monitored by the Department until all FAC accounts are updated so that auditing could commence as soon as possible.

10 Finance Instructions 2010 – Section 16 (3) & (4).
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 10 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 4.3 Section 24.11 – Page 14: Failure to Implement Internal Control - Payment Anomalies The quotation process is intended to ensure that the agencies receive value for money based on fair competition and ethical dealing.11 Quotations may be received verbally for the purchase of goods or services estimated to cost less than $1,000.
A minimum of three competitive quotes must be obtained for the procurement of goods, services or works valued at $1000 and more but $50,000 and less.12 These quotes must be recorded and certified by the officer receiving them.13 A local purchase order (LPO) shall be issued when procuring any goods, services or works from an organization within Fiji, unless a contract or agreement has been entered into.14 The Senior Accounts Officer must make sure the following checks are done before authorizing any payment and reviewing vendor invoices for accuracy by comparing charges to purchase order.15 All payments must be processed through payment vouchers prepared by the Accounts Clerk (Payment).
Separate vouchers are to be used for separate payees and for the payment of different services.

The Senior Accounts Officer and Accounts Officer must not certify a payment as correct unless they are satisfied that it is in accordance with an LPO, indent, contract, invoice, PSTA's or DSTA's authorization.
Immediately after payment has been effected, the Accounts Clerk (Payment) must stamp “paid” on all vouchers and supporting documentation to avoid any double payments.16 Upon receipt of the goods, services or works, the receiving officer shall verify that their receipt in good order and that the invoice is in accordance with the LPO and the receiving officer must be an officer other than the officer authorizing the LPO.
17 The audit noted the following anomalies upon review of the payment records maintained by the Ministry:  competitive quotations were not obtained from suppliers for purchases over $1,000 and instances were noted where verbal quotations were obtained for purchases costing more than $1,000;  Local Purchase Orders were not issued prior to making payments and invoices were not attached to payment vouchers; payment vouchers were found to be missing; payment vouchers are not verified and checked by authorized officers; details on the payment vouchers were incorrect and EFT/Cheque numbers were not stated on the payment voucher; payment vouchers were not stamped “PAID”; remittance advices were not attached and Ministry of Economy approval was also not attached where required; and invoices were not signed and delivery docket were not attached to the payment records.
      Refer to Appendix 24.1 for details of the above anomalies.

11 Ministry of Economy Procurement Regulations 2010, Section 4 12 Ministry of Economy Procurement Regulations 2010, Section 29 (1) 13 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.3.1.

14 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.5.1.
15 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 17.2.1 16 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.8.1, 2.8.4 and 2.8.5.
17 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.5.9 and 2.5.10 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 11 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 The audit findings indicate that proper payment procedures were not followed by the Ministry and internal controls were overlooked in the purchase and payments systems.
Failure to implement internal control already in place and processing payments without proper documentation increases the risk of double, unauthorized and fraudulent payments which allows room for corrupt practices.

Also, in the absence of records and supporting documents, transactions recorded in the general ledger are unauthenticated.

Recommendation The Ministry should strengthen compliance with internal controls over payments and take appropriate action for any breaches.
Management Comment The Ministry’s has noted the auditor’s recommendation and has verified and takes necessary actions in all incomplete documents.

Currently vouchers are being ensured that it completes all necessary checking and verification by the supervising officer before payment is made.
The issue of budgeted purchases totalling $6,947,335 requiring the approval of the Ministry of Economy is excluded as the Ministry of Economy does not have the power to approve transactions for other budget sector agencies.

Approval of transactions is granted by the relevant Permanent Secretary.

The Ministry of Economy merely confirms the availability of funds in the budget for the agency.

A Supplementary Appendix 24.1 is provided below.


4.4 Supplementary Section 24.11 – Page 14: Failure to Implement Internal Control - Payment Anomalies The quotation process is intended to ensure that the agencies receive value for money based on fair competition and ethical dealing.18 Quotations may be received verbally for the purchase of goods or services estimated to cost less than $1,000.
A minimum of three competitive quotes must be obtained for the procurement of goods, services or works valued at $1000 and more but $50,000 and less.19 These quotes must be recorded and certified by the officer receiving them.20 A local purchase order (LPO) shall be issued when procuring any goods, services or works from an organization within Fiji, unless a contract or agreement has been entered into.21 The Senior Accounts Officer must make sure the following checks are done before authorizing any payment and reviewing vendor invoices for accuracy by comparing charges to purchase order.22 All payments must be processed through payment vouchers prepared by the Accounts Clerk (Payment).
Separate vouchers are to be used for separate payees and for the payment of different services.

The Senior Accounts Officer and Accounts Officer must not certify a payment as correct unless they are satisfied that it is in accordance with an LPO, indent, contract, invoice, PSTA's or DSTA's authorization.
18 Ministry of Economy Procurement Regulations 2010, Section 4 19 Ministry of Economy Procurement Regulations 2010, Section 29 (1) 20 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.3.1.

21 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.5.1.
22 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 17.2.1 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 12 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Immediately after payment has been effected, the Accounts Clerk (Payment) must stamp “paid” on all vouchers and supporting documentation to avoid any double payments.23 Upon receipt of the goods, services or works, the receiving officer shall verify that their receipt in good order and that the invoice is in accordance with the LPO and the receiving officer must be an officer other than the officer authorizing the LPO.
24 The audit noted the following anomalies upon review of the payment records maintained by the Ministry:        competitive quotations were not obtained from suppliers for purchases over $1,000 and instances were noted where verbal quotations were obtained for purchases costing more than $1,000; Local Purchase Orders were not issued prior to making payments and invoices were not attached to payment vouchers; payment vouchers were found to be missing; payment vouchers are not verified and checked by authorized officers; details on the payment vouchers were incorrect and EFT/Cheque numbers were not stated on the payment voucher; payment vouchers were not stamped “PAID”; and invoices were not signed and delivery docket were not attached to the payment records.
Refer to Supplementary Appendix 24.1 for details of the above anomalies.

The audit findings indicate that proper payment procedures were not followed by the Ministry and internal controls were overlooked in the purchase and payments systems.

Failure to implement internal control already in place and processing payments without proper documentation increases the risk of double, unauthorized and fraudulent payments which allows room for corrupt practices.
Also, in the absence of records and supporting documents, transactions recorded in the general ledger are unauthenticated.

Recommendation The Ministry should strengthen compliance with internal controls over payments and take appropriate action for any breaches.

Management Comment The Ministry’s has noted the auditor’s recommendation and has verified and takes necessary actions in all incomplete documents.
Currently vouchers are being ensured that it completes all necessary checking and verification by the supervising officer before payment is made.

23 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.8.1, 2.8.4 and 2.8.5.
24 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual 2013, section 2.5.9 and 2.5.10 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 13 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 5.0 VOLUME 4: AUDIT REPORT ON ECONOMIC & INFRASTRUCTURE SECTOR 2016 5.1 Section 35.4 – Page 3: Grant to Fiji Sugar Corporation (FSCL) on Sugar Development Grants that are administered by agencies should only be used for the purpose for which Parliamentary or Cabinet approval has been given.25 On 3 May 2016, the Ministry signed an agreement with the Fiji Sugar Corporation Limited (FSCL) for the rehabilitation of the 2016 crops which were damaged by Tropical Cyclone Winston.
The objectives of the grant were as follows.

 To rehabilitate 18,000 hectares of sugarcane which was drastically affected by Category 5 Tropical Cyclone Winston that hit Fiji on Saturday 20/02/16 in the sugarcane district of Rakiraki, Tavua, Rarawai and parts of Lautoka.
The following components to be provided: Fertilizer – Blend C and Herbicides for 18,000 hectares totaling $3,636,000.26  To plant 682 hectares of cane by the end of 2016 planting season with the following component: Land preparation, Seed cane, Fertilizer – Blend A, Herbicide and Drainage for 682 hectares totaling $1,364,000.27 Audit Review of the program records revealed the following anomalies:  The grant of $4.6 million paid to FSCL for the rehabilitation as per the grant agreement, was actually utilised for cane planting program for which Cabinet approval was not obtained by the Ministry.
The grant agreement was also not revised to reflect the changes made to the initial objectives of the grant.

 The cane planting program facilitated by the FSCL included payment for fallow and replant of a total area of 3,425 hectares.

The total payment made by the FSCL in this regard was approximately $6.2million and exceeded the total grant amount received by $1.6million.

Refer to Table 8.1 for details.


Table 35.3: Utilisation of Grant as at 31 December 2016 Mill Lautoka Rarawai Labasa Penang Total of No.

Growers 356 1,230 1,473 280 3,339 Total Grant Paid Out ($) 521,425 2,082,740 3,107,582 486,935 6,198,682 Hectares Paid (Unit) Fallow 235 1,013 1,088 258 2,595 Replant 62 163 592 14 831 Hectares Paid (Unit) 297 1,176 1,681 272 3,425  Project reports were not submitted to the Ministry on a quarterly basis.
Instead, only one progress report was submitted on 31 December 2016, which was for work carried out for the whole year.

The audit findings indicate that proper procedures were not followed in utilisation of government grant by FSCL.

25 Ministry of Sugar Finance Manual 2013: Part 3 Introductory Paragraph 26 Grant Agreement between MOS and FSCL for Sugar Development Plan 2016 – Clause 2.1.

27 Grant Agreement between MOS and FSCL for Sugar Development Plan 2016 – Clause 2.2.
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 14 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Recommendations The Ministry should ensure that:  proper approvals are obtained before the funds are utilised for other purposes and grant agreements are revised accordingly.

 physical inspections are carried out in the field to verify that the works carried out are in line with the requirement of the grant agreement.
 the grant is released on a quarterly basis after quarterly reports have been received and verified.

Ministry’s Comment The overall objective of this cane planting/development grant was to increase cane production.

However, after TC Winston struck the decision was made to assist those worst hit by TC Winston in Rakiraki, Tavua, Rarawai and parts of Lautoka.
However, by the time the grant agreement was signed (May 2016), it was discovered that the cane crop on farms initially identified in these priority areas had recovered and there was no need for rehabilitation, and so the fund was utilized for cane replanting.

For that reason, there was no need to obtain approval.

The Ministry notes and agrees that this is an area needing improvement which it will undertake to address jointly with FSCL and Sugar Cane Growers Council representatives.
The Ministry also notes the three recommendations which it will address in future.

The issue above is excluded as the use of funds for the “Sugar Development Program” (Head 35) for the purpose of cane replanting is within the ambit of the objective of the Sugar Development Program, which is to increase cane production.
5.2 Section 37.13 – Page 11: Backlog Financial Statements – Municipal Council and Statutory Authorities The recipient of the Grant Assistance shall provide financial statement (audited if practicable) for grants of $20,000 or more.28 The Ministry provided grants to various Municipal Councils and to National Fire Authority for capital works.
The audit noted that the following Municipal Councils and National Fire Authority have not provided audited financial statements for the grants received from the Ministry to carry out capital projects.

Refer to Table 37.13 for details.
Table 37.13: Examples of Municipals that Failed to Submit Audited Financial Statements Grant Recipient Nadi Town Council Last Audited Account Grant Provided Since Last Audited Account 2011 2012 2013 2014 2015 2016 ($) ($) ($) ($) ($) ($) Total Grant Provided ($) 2013 - - - 844,000 295,410 755,000 1,894,410 28 Ministry of Local Government, Housing and Environment Finance Manual 2013, Section 3.3.1 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 15 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Grant Recipient Last Audited Account Grant Provided Since Last Audited Account 2011 2012 2013 2014 2015 2016 ($) ($) ($) ($) ($) ($) Total Grant Provided ($) Lami Town Council Savusavu Town Council Tavua Town Council Ba Town Council Sigatoka Town Council Lautoka City Council Suva City Council National Fire Authority 2013 - - - 143,160 613,000 198,072 954,232 2010 - - - 75,000 162,035 250,000 487,035 2014 - - 2014 - - 2015 - - - - - - 158,685 488,000 646,685 - 203,500 1,463,928 1,667,428 - - 845,000 845,000 2013 - - - 500,000 293,250 2,814,240 3,607,490 2010 - - 452,355 - 10,000,000 7,000,000 17,452,355 2013 - - 1,746,329 3,900,000 3,476,088 5,300,000 14,422,417 In the absence of audited financial statements, the Ministry cannot substantiate whether grants were used for the authorised purpose.
Recommendation The Ministry should ensure that grant recipients provide the audited financial statements on a timely basis.

Ministry’s Comments Department of Local Government and Municipal Councils have been meeting on the subject.

During the meeting held in February, 2017 all Municipal Councils have agreed to submit draft accounts for external audit before 30th August, 2017.
Reason for delay in submission over the last two to three years has been that Municipal Councils have been informed to upgrade financial statements to International Financial Reporting Standards to avoid disclaimer opinion.

National Fire Authority annual accounts 2014 shall be submitted to the Office of the Auditor General in April, 2017, 2015 and 2016 draft annual accounts are planned to be submitted before end of August 2017.
National Fire Authority has been traditionally waiting for the clearance of a financial year report before submitting the following year draft accounts to ensure verified opening balances are captured.

Department of Local Government has informed National Fire Authority to submit all previous year draft accounts to office of the Auditor General and following audit carry upgrade following year’s accounts as deemed necessary.
Reasons for the exclusion and amendments to the issues include the fact that a number of draft accounts were already submitted to the Auditor General’s Office and a number of agency reports have already been audited.

A Supplementary Table 37.13 of the 2016 Report is provided showing an updated status on the submission of audited financial statements.
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 16 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 5.3 Supplementary Section 37.13 – Page 11: Backlog Financial Statements – Municipal Council and Statutory Authorities The recipient of the Grant Assistance shall provide financial statement (audited if practicable) for grants of $20,000 or more.29 The Ministry provided grants to various Municipal Councils and to National Fire Authority for capital works.
The audit noted that the following Municipal Councils and National Fire Authority have not provided audited financial statements for the grants received from the Ministry to carry out capital projects.

Refer to Table 37.13 for details.
Table 37.13: Examples of Municipals and Statutory authority that Failed to Submit Audited Financial Statements Grant Recipient Nadi Town Council Lami Town Council Savusavu Town Council Tavua Town Council Ba Town Council Lautoka City Council Suva City Council Nasinu Town Council Levuka Town Council Nausori Town Council Rakiraki Town Council Labasa Town Council National Fire Authority Status                        2015 and 2016 draft financial statements yet to be received for audit.
2014 draft financial statements received on 03/08/17.

2015 and 2016 draft financial statements yet to be received for audit.

2011 - 2014 draft financial statements to be resubmitted to OAG.

2015 and 2016 draft financial statements yet to be received for audit.

2014 draft financial statements to be resubmitted to OAG.

2015 & 2016 draft financial statements yet to be received for audit.

2016 draft financial statements yet to be received for audit.

2014 and 2015 draft account received 31/07/17.


2016 accounts yet to be received for audit.

2012 – 2016 draft financial statements yet to be received for audit.

2010 draft financial statements resubmitted audit on 07/08/17.

2011 draft financial statements to be re-submitted.

2012 draft financial statements received on 29/08/17.

2013 - 2016 draft financial statements yet to be received for audit.

2012 and 2013 draft financial statements to be resubmitted to OAG.
2014, 2015 & 2016 financial statements yet to be received for audit.

2015 draft financial statements received on 16/12/16.

2016 draft financial statements yet to be received for audit.

2015 draft financial statements received on 06/04/17.

2016 draft financial statements received on 19/06/17.

2016 draft financial statements received on 30/08/17.

2014 - 2016 draft financial statements yet to be received for audit.
In the absence of audited financial statements, the Ministry cannot substantiate whether grants were used for the authorised purpose.

Recommendation The Ministry should ensure that grant recipients provide the audited financial statements on a timely basis.

Ministry’s Comments Department of Local Government and Municipal Councils have been meeting on the subject.
During the meeting held in February, 2017 all Municipal Councils have agreed to submit draft accounts for external audit before 30th August, 2017.
Reason for delay in submission over the last two to three years has been that Municipal Councils 29 Ministry of Local Government, Housing and Environment Finance Manual 2013, Section 3.3.1 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 17 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 have been informed to upgrade financial statements to International Financial Reporting Standards to avoid disclaimer opinion.
National Fire Authority annual accounts 2014 shall be submitted to the Office of the Auditor General in April, 2017, 2015 and 2016 draft annual accounts are planned to be submitted before end of August 2017.

National Fire Authority has been traditionally waiting for the clearance of a financial year report before submitting the following year draft accounts to ensure verified opening balances are captured.
Department of Local Government has informed National Fire Authority to submit all previous year draft accounts to office of the Auditor General and following audit carry upgrade following year’s accounts as deemed necessary.
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 18 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Appendix 4.2: Details of Non-Submission of Audited Accounts Head Ministry Description 3 5 21 30 34 37 Office of the Attorney General Ministry of I Taukei Affairs Ministry of Education, Heritage and Arts Ministry of Agriculture Ministry of Industry, Trade and Tourism Ministry of Local Government, Housing & Environment The Fiji Human Rights Commission accounts has not been audited since 2008 - 2016; total grant provided since 2008 to 2016 Legal Aid Commission has not submitted audited accounts to Office of the Attorney General since 2014; total grant provided since 2014 to 2016 The Ministry has been providing grant to ITaukei Affairs Board for which audit has been pending since 2003.
Total grant provided since 2003 to 2016 Backlog of audited accounts of higher institutions not submitted to Higher Education Commission Backlog of audited accounts since 2015 of statutory authorities not submitted to Ministry (Fiji Museum , Fiji Arts Council, Fiji Higher Education Commission) Non-submission of annual audited accounts of Agriculture Marketing Authority for 2010, 2011, 2014, 2015 and 2016 Backlog of audits for various authorities receiving operating grant from the Ministry since 2013 to 2015 Municipal councils namely, Nadi Town Council, Lami Town Council, Savusavu Town Council, Tavua Town Council, Ba Town Council, Sigatoka Town Council, Lautoka City Council, Suva City Council and National Fire Authority failed to provide AFS for the grants received from the Ministry.
Total Amount ($) 4,701,367 9,504,868 145,969,149 1,505,000 2,310,183 9,628,647 29,478,612 41,977,052 245,074,878 Supplementary Appendix 4.2: Details of Non-Submission of Audited Accounts Head 5 Ministry Ministry of I Taukei Affairs Ministry of Education, Heritage and Arts Description The Ministry has been providing grant to ITaukei Affairs Board for which audit has been pending.
Higher Education Institutions namely Centre for Appropriate Technology, Montfort Boys Town Veisari, Montfort Boys Institute Savusavu and Fulton College yet to provide audited accounts to the Higher Education Commission.
Backlog of audited accounts of statutory authorities not submitted to Ministry (Fiji Museum , Fiji Arts Council) Independent Commission Ministry of Agriculture Ministry of Industry, Trade and Tourism The Fiji Human Rights Commission accounts has not been audited since 2008 Non-submission of annual audited accounts of Agriculture Marketing Authority for 2010 – 2016.

Backlog of audits for various authorities receiving operating grant from the Ministry from 2013 – 2016.
21 13 30 34 Status –  2008 draft 2016 financial statements yet to be received for audit 2016 draft financial statements yet to be received for audit Fiji Arts Council: 2004 – 2016 draft financial statements still outstanding.

Fiji Museum: 2010 – 2016 draft accounts still outstanding Draft financial statements yet to be received for audit Draft financial statements yet to be received for audit  NCSMED: 2013, 2014 and 2015 account: External auditor appointed by the Centre.
 Tourism Fiji: 2014 draft financial statements received on 02/08/17.
2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 19 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Head Ministry Description Status 37 Ministry of Local Government, Housing & Environment Municipal councils namely, Nadi Town Council, Lami Town Council, Savusavu Town Council, Tavua Town Council, Ba Town Council, Lautoka City Council, Suva City Council, Nasinu Town Council, Levuka Town Council and National Fire Authority failed to provide AFS for the grants received from the Ministry.
 2015 and 2016 draft financial statements yet to be received for audit.

 Nadi Town Council: 2015 and 2016 draft financial statements yet to be received for audit.

 Lami Town Council: 2014 draft financial statements received on 03/08/17.

2015 and 2016 draft financial statements yet to be received for audit.

 Savusavu Town Council: 2011 – 2014 draft financial statements to be resubmitted to OAG.

2015 and 2016 draft financial statements yet to be received for audit.
 Tavua Town Council: 2014 draft financial be statements resubmitted to OAG.

2015 & 2016 draft financial statements yet to be received for audit.

to  Ba Town Council: 2016 draft financial statements yet to be received for audit.

 Lautoka City Council: 2014 and 2015 draft financial statements received 31/07/17.

2016 accounts yet to be received for audit.

 Suva City Council: 2012 – 2016 draft to be financial statements yet received for audit.
 Nasinu Town Council:  2010 draft financial statements resubmitted audit on 07/08/17.

 2011 draft financial statements to be re-submitted.

 2012 draft financial statements  2013 received on 29/08/17.

- 2016 draft financial statements yet to be received for audit.

 Levuka Town Council: 2012 and 2013 draft financial statements to be resubmitted to OAG.

2014, 2015 & 2016 draft financial statements yet to be received for audit.
draft 2016  Nausori Town Council: 2015 draft received on financial financial statements 16/12/16.

statements received on 16/08/17.

 Rakiraki Town Council: 2015 draft received on financial financial statements 06/04/17.

statements received on 19/06/17.


2016 draft 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 20 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Head Ministry Description Status  Labasa Town Council: 2016 draft received on financial statements 30/08/17.

 NFA: 2014 – 2016: draft financial statements yet to be received for audit.
Appendix 4.4: Details of Expenditures without Proper Authorisation Head Ministry Anomalies 8 12 18 20 21 22 24 30 32 35 Ministry of Foreign Affairs Parliament Ministry of Rural and Maritime Development and Disaster Management Fiji Police Force Ministry of Education, Heritage and Arts Ministry of Health and Medical Services Ministry of Women, Children and Poverty Alleviation Ministry of Agriculture Ministry of Fisheries and Forests Ministry of Sugar Overpayment of per-diem allowance Inconsistent rate used in calculating travel allowances Travel made without Cabinet Approval Over-payment of per-diem allowances Rations purchased was more than what was required Purchase of family packs not authorised Approval not obtained from Chief Accountant for advance payment Excess supply compared to LPO for which payment was facilitated No LPO issued Loss due to condemned / damage Goods No LPO issued Fiji Teachers Registration Board staffs paid through Ministry’s budget allocation although the authority’s operation is totally autonomous from the Ministry Unauthorized procurement Procurement without approved RIE from other allocations Procurement above delegated authority Ministry of Economy approval not attached to payment Local Purchase Orders not issued Local Purchase Order not signed by the authorised personnel’s Local Purchase Orders not issued Payment of ineligible subsistence allowance to EDP # 93439 Funds for rehabilitation was used for cane planting program, no approval documents produced.
Total Amount ($) 24,934 36,003 10,099 4,270 503,726 2,593,374 23,324 456,655 33,520 21,337 7,257 214,739 71,347 62,397 535,318 6,947,335 270,727 48,888 407,510 13,384 4,600,000 16,886,144 Supplementary Appendix 4.4: Details of Expenditures without Proper Authorisation Head Ministry Anomalies Ministry of Foreign Affairs Parliament 8 12 18 Overpayment of per-diem allowance Inconsistent rate used in calculating travel allowances Travel made without Cabinet Approval Over-payment of per-diem allowances Rations purchased was more than what was required Amount ($) 24,934 36,003 10,099 4,270 503,726 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 21 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Head Ministry Anomalies Ministry of Rural and Maritime Development and Disaster Management 20 21 22 24 30 32 Fiji Police Force Ministry of Education, Heritage and Arts Ministry of Health and Medical Services Ministry of Women, Children and Poverty Alleviation Ministry of Agriculture Ministry of Fisheries and Forests Approval not obtained from Chief Accountant for advance payment Excess supply compared to LPO for which payment was facilitated No LPO issued Loss due to condemned / damage Goods No LPO issued Fiji Teachers Registration Board staffs paid through Ministry’s budget allocation although the authority’s operation is totally autonomous from the Ministry Unauthorized procurement Procurement without approved RIE from other allocations Procurement above delegated authority Local Purchase Orders not issued Local Purchase Order not signed by the authorised personnel’s Local Purchase Orders not issued Payment of ineligible subsistence allowance to EDP # 93439 Total Amount ($) 23,324 456,655 33,520 21,337 7,257 214,739 71,347 62,397 535,318 270,727 48,888 407,510 13,384 2,745,435 Appendix 24.1: Details of Payment Anomalies Date 04/04/16 04/04/16 04/04/16 04/07/16 20/07/16 04/01/16 04/01/16 04/01/16 08/06/16 30/06/16 02/06/16 19/07/16 13/01/16 14/01/16
 19/07/16 15/02/16 06/07/16 15/07/16 21/03/16 Cheque/ EFT # 61178 61181 61209 61549 61639 60879 60880 60881 10186 10512 61422 10760 60915 60921 61603 8827 61558 10692 61085 Payee AN DSW DSW WB GEM F L AN BS WB MH PF WB MH YCH PEH DM MH SP FVTTC - PwD SSS Amount ($) Remarks Missing Payment Vouchers Payment voucher not authorized 41,583 10,800 32,100 2,509,184 103,800 43,044 62,403 2,404,458 218,850 276,649 2,638,400 1,289,333 4,200 2,402 4,810 190,363 Payment voucher not stamped PAID.
997 Details on payment voucher is incorrect 4,360 13,605 Payment voucher is not passed for is only checked and it payment, authorized 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 22 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Date Cheque/ EFT # Payee Amount ($) Remarks 07/05/16 61301 22/06/16 02/02/16 02/02/16 02/02/16 04/07/16 20/07/16 20/07/16 20/07/16 20/07/16 21/06/16 22/07/16 22/07/16 26/04/16 06/05/16 13/05/16 10/06/16 21/03/16 07/05/16 09/05/16 17/03/16 09/06/16 29/02/16 15/07/16 19/07/16 21/07/16 13/07/16 20/07/16 21/03/16 07/05/16 09/05/16 21/06/16 05/07/16 15/07/16 19/07/16 22/07/16 22/07/16 13/01/16 14/01/16 20/07/16 19/07/16 15/07/16 21/06/ TH K AN BS WB WB GFL BS WB MH TA DM TA DM DM DM DM QR TH CTCL VP CTL DS DM RIL D GFL GFL SSS TH CTCL TA GAL DM SPRL DM TA Y C H L P E H G I F L S P R L D M L T A 7,580 Payment voucher is passed for payment without being checked 2,695 Remittance advice not attached Checking officer also the receiving officer Ministry of Economy approval not attached 42,531 61,778 2,417,901 2,509,184 103,800 68,763 2,545,546 1,720,042 7,125 8,540 7,125 Officer preparing the minute also signed the payment voucher as per receipt of cheque Invoice from supplier not authorized 40,500 34,000 34,100 7,125 2,200 7,580 9,000 Competitive Quotations not obtained Verbal Quotations for purchases costing more than $1,000 Local Purchase Orders not raised Invoices not obtained Missing invoices and delivery dockets 11,235 7,560 4,560 3,600 1,143 14,625 34,600 103,800 13,605 7,580 9,000 7,125 42,074 8,540 4,810 8,540 7,125 4,200 2,402 103,800 4,810 3,600 7,125 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 23 SUPPLEMENTARY REPORT OF
 THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Date Cheque/ EFT # Payee Amount ($) Remarks 09/05/16 21/03/16 21/03/16 61450 61148 61085 S W Q R S S S 1,404 2,200 13,605 Supplementary Appendix 24.1: Details of Payment Anomalies Date 04/04/16 04/04/16 04/04/16 04/07/16 20/07/16 04/01/16 04/01/16 04/01/16 08/06/16 30/06/16 02/06/16 19/07/16 13/01/16 14/01/16 19/07/16 15/02/16 06/07/16 15/07/16 21/03/16 Cheque/ EFT # 61178 61181 61209 61549 61639 60879 60880 60881 10186 10512 61422 10760 60915 60921 61603 8827 61558 10692 61085 Payee AN DSW DSW WB GEM F L AN BS WB MH PF WB MH YCH PEH DM MH SP FVTTC - PwD SSS 07/05/16 61301 22/06/16 02/02/16 02/02/16 02/02/16 21/06/16 22/07/16 22/07/16 26/04/16 06/05/16 13/05/16 10/06/16 21/03/16 07/05/16 09/05/16 10402 60990 60991 60992 61484 61679 61687 9463 9630 9807 10292 61148 61301 61313 TH K AN BS WB TA DM TA DM DM DM DM QR TH CTCL Amount ($) Remarks Missing Payment Vouchers Payment voucher not authorized 41,583 10,800 32,100 2,509,184 103,800 43,044 62,403 2,404,458 218,850 276,649 2,638,400 1,289,333 4,200 2,402 4,810 190,363 Payment voucher not stamped PAID.
997 Details on payment voucher is incorrect 4,360 13,605 Payment voucher is not passed for is only checked and it payment, authorized 7,580 Payment voucher is passed for payment without being checked 2,695 Remittance advice not attached 42,531 61,778 2,417,901 Checking officer also the receiving officer 7,125 8,540 7,125 Officer preparing the minute also signed the payment voucher as per receipt of cheque Invoice from supplier not authorized 40,500 34,000 34,100 7,125 2,200 7,580 9,000 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 24 SUPPLEMENTARY REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2017 Date Cheque/ EFT # Payee Amount ($) Remarks 17/03/16 09/06/16 29/02/16 15/07/16 19/07/16 21/07/16 13/07/16 20/07/16 21/03/16 07/05/16 09/05/16 21/06/16 05/07/16 15/07/16 19/07/16 22/07/16 22/07/16 13/01/16 14/01/16 20/07/16 19/07/16 15/07/16 21/06/16 09/05/16 21/03/16 21/03/16 9169 61356 61055 61602 61624 61648 61585 61639 61085 610301 61313 61484 10585 61603 61625 61679 61687 60915 60921 61639 61625 61602 61484 61450 61148 61085 VP CTL DS DM RIL D GFL GFL SSS TH CTCL TA GAL DM SPRL DM TA Y C H L P E H G I F L S P R L D M L T A S W Q R S S S Competitive Quotations not obtained Verbal Quotations for purchases costing more than $1,000 Local Purchase Orders not raised Invoices not obtained Missing invoices and delivery dockets 11,235 7,560 4,560 3,600 1,143 14,625 34,600 103,800 13,605 7,580 9,000 7,125 42,074 8,540 4,810 8,540 7,125 4,200 2,402 103,800 4,810 3,600 7,125 1,404 2,200 13,605 2016 Whole of Government Financial Statements and Annual Appropriation Statement Page 25