Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697631840423.pdf (Antigua and Barbuda)
2018 FINANCIAL AUDIT REPORT GOVERNMENT OF ANTIGUA AND BARBUDA OFFICE OF THE DIRECTOR OF AUDIT TABLE OF CONTENTS SECTION PAGES Acknowledgement …………………………………………………………………….

3 Director of Audit Report ……………………………………………………………… 4 Consolidated Statement of Revenue and Expenditure ………………………………….. 7 Statement of Assets and Liabilities ……………………………………………………… 10 Comprehensive Statement of Actual Revenue for 2018 & 2017…….
………………… 12 Statements of Public Debt……………………………………………………………… 17 Statement of Special Fund /Special Accounts………………………………………….

19 Statement of Deposit Funds………………………………………………………..…….
20 Statements of Advances …………………………………………………………………… 23 Statement of Contingent Liabilities……………………………………………………….. 25 Statement of Accounts Payable Other Government ………………………………………… 28 Statement of Nation Development Funds Source & Application of Funds ………………… 29 Statement of Variance Analyses Budget vs. Actual – Revenue and Expenditure…………… 30 Statement of Cash Flow……………………………………………………………………… 33 Notes to the Financial Statements …………………………………………………………… 36 Introduction ……………………………………………………………………………..…… 62 The Nature and Scope of the Audit……………………………………………………..…… 63 Audit Findings……………………………………………………………………………….. 68 Status of Financial Statements of Statutory Bodies/Agencies……………………..………… 87 SCHEDULE APPENDICES Authorities of Expenditures ………………………………………………………….. A – B Page | 2 ACKNOWLEDGEMENT I acknowledge that nothing could have been accomplished without the help of God who has given us the strength and wisdom needed to function.
I would therefore like to express my gratitude and sincere thanks to my staff, who has continued to work towards achieving our organizations goal, in spite of the challenges that we face year after year.

To the Accountant General and her staff, I wish to publicly thank you for working along with my department throughout the year(s) and we look forward our continued partnership.

Special thanks to the other Departments and Agencies who provided relevant information whenever it was requested.
Page | 3 GOVERNMENT OF ANTIGUA AND BARBUDA Office of the Director of Audit St. Mary’s and Temple Streets St. John’s, Antigua and Barbuda, W.I.
Tel: 1 (268) 462-0022 Fax: 1 (268) 460-5960 E-mail: audit@ab.gov.ag Ref: No December 31, 2020 DIRECTOR OF AUDIT REPORT To: The Honourable Prime Minister and Minister of Finance and Corporate Governance Report on the Financial Statements We have audited the accompanying Public Accounts of the Government of Antigua and Barbuda as at December 31, 2018 which comprises the Statements of Assets and Liabilities, Revenue and Expenditure, Special Fund/Special Accounts, Deposit Funds, Public Debt, Contingent Liabilities, Deposits and Advances as required by the Finance Administration Act, 2006 section 56.
Opinion The evaluation of the internal controls showed that in many cases the existence of policies and regulations were not disseminated to the relevant individuals therefore these laws and guidelines Page | 4 were not fully adhered to.

The issue of accountability and reliability is paramount in any financial institution and as such the financial statements of Antigua and Barbuda should be prepared and presented in a manner that promotes full disclosure by all the stakeholders.
The Revenue collection and Revenue reporting continue to be an area of high risk.

From all indication, our sample revealed a difference of $9,574,536 between the actual collections reported by the revenue departments and the amount reported on the statement from the Office of the Accountant General.
Additionally, for the financial year 2018, an unverified amount of $225,453,525.37 representing Supplementary Appropriation for special warrants was not approved by the House as stipulated by the Finance and Administration Act 2006.

These, along with our other findings, contribute to the opinion given by this office.

We did not find that the audit evidence present fairly the financial position of the Government of Antigua and Barbuda for the financial year ending 31st December, 2018.
Management’s Responsibility for the Financial Statements Under Parts II (7) and IX, 56 (2) of the Finance Administration Act, 2006, the Accountant General is responsible for preparing, maintaining and ensuring that a proper system of accounting is established, and all public monies are accounted for and reflect the financial position of Antigua and Barbuda at the end of the financial year.
Section 56(2) of the aforementioned Act requires the Accountant General, to certify the Public Accounts and submit these statements to the Director of Audit, not later than six (6) months after the end of every financial year.
The Accountant General’s responsibilities include the maintenance of adequate accounting records and internal controls relevant to determine if these Public Accounts are free from material misstatements due to error or fraud in accordance with Generally Accepted Accounting Principles.

Auditor’s Responsibility The Director of Audit’s responsibility is to express an opinion on the Public Accounts.
As with the previous years, this audit was guided by the International Standards for Supreme Audit Institutions (ISSAI) issued by the International Organization of Supreme Audit Institutions (INTOSAI).

The audit was conducted using tests and other procedures that are considered necessary for reporting as required by the Constitution of Antigua and Barbuda Section 97 subsection 2b.
The audit involved performing procedures to obtain audit evidence to support the amounts and disclosures in the Public Accounts.

An Audit assessment is based on the auditor’s judgment in determining the risk of material misstatements of the Public Accounts as well as the Page | 5 appropriateness of accounting policies used; the reasonableness of accounting estimates made by management and evaluating the overall presentation of the Public Accounts.
In making these risk assessments, the auditor considers internal controls relevant to the preparation and fair presentation of the financial statements with the view of designing audit procedures suitable under the given circumstances.

This is not to be used for the purpose of expressing an opinion on the effectiveness of the internal control.

Any Other Matters Arising There were no major issues outside the norm arising during the preparation of this report by this office.
We however advise that every effort be made to regularize the manner in which financial matters are handled and reported from the various Departments/Ministries, as it can impact the final financial report of the government.
………………………… Dean Evanson Director of Audit St Mary’s & Temple Street, St John’s December 31, 2020 Page | 6 Page | 7 Page | 8 Page | 9 Page | 10 Page | 11 Page | 12 Page | 13 Page | 14 Page | 15 Page | 16 Page | 17 Page | 18 Page | 19 Page | 20 Page | 21 Page | 22 Page | 23 Page | 24 Page | 25 Page | 26 Page | 27 Page | 28 Page | 29 Page | 30 Page | 31 Page | 32 Page | 33 Page | 34 Page | 35 Page | 36 Page | 37 Page | 38 Page | 39 Page | 40 Page | 41 Page | 42 Page | 43 Page | 44 Page | 45 Page | 46 Page | 47 Page | 48 Page | 49 Page | 50 Page | 51 Page | 52 Page | 53 Page | 54 Page | 55 Page | 56 Page | 57 Page | 58 Page | 59 Page | 60 Page | 61 REPORT OF THE DIRECTOR OF AUDIT ON THE ACCOUNTS OF ANTIGUA AND BARBUDA FOR THE YEAR ENDED DECEMBER 31, 2018 INTRODUCTION 1.1 This report is made to the Honourable Minister responsible for Finance in accordance with Section 97(5) of the Constitution of Antigua and Barbuda.
It does not report on the Ministerial/Divisional Accounts for the year ended December 31, 2018.

The comments herein are accordingly confined to matters arising out of the Annual Financial Statements for the year ended December 31, 2018, submitted by the Accountant General.
1.2 The principle function and responsibilities of the Director of Audit as provided in Section 97(1) of the Constitution of Antigua and Barbuda 1981 and The Office of the Director of Audit Act, 2014 Part 2 Section 9 (1) & (2) are as follows: - “The Director of Audit shall – a) Satisfy himself that all monies that have been appropriated by Parliament and disbursed have been applied to the purposes to which they were so appropriated, and that the expenditure conforms to the authority that governs it; and b) At least once every year audit and report on the public accounts of Antigua and Barbuda, the accounts of all officers and authorities of the Government, the accounts of all courts of law in Antigua and Barbuda (including any accounts of the Supreme Court maintained in Antigua and Barbuda), the accounts of every Commission established by this Constitution and the accounts of the Clerk to the House and the Clerk to the Senate.” 1.3 1.4 The Director of Audit shall have the power to carry out audits of the accounts, balance sheets and other financial statements of all enterprises that are owned or controlled by, or on behalf of Antigua and Barbuda.
The Director of Audit and any officer authorized by him shall have access to all books, records, returns, reports, and other documents, which, in his opinion relate to any of the accounts referred to in sub-section (2) and (3) of this section.
Page | 62 1.5 1.6 1.7 The Director of Audit shall submit every report made by him in pursuance of this section to the Minister for the time being responsible for Finance, who shall, after receiving such report, lay it before the House not later than seven (7) days after the House next meets.
If the Minister fails to lay a report before the House in accordance with the provision of sub-section (5) of this section, the Director of Audit shall transmit copies of the report to the Speaker, who shall as soon as practicable, present them to the House.
The Director of Audit shall exercise such other functions in relation to the accounts of Government, the accounts of other authorities or bodies established by law for public purposes or the accounts of enterprises that are owned or controlled by or on behalf of Antigua and Barbuda as may be prescribed by or under any law enacted by Parliament.

2.
2.

THE NATURE AND SCOPE OF THE AUDIT 2.1 Neither the Constitution of Antigua and Barbuda, 1981 nor the Finance Administration Act, 2006 defines the scope of the audit examination to be carried out.

Accordingly, the manner in which the audit examination is to be carried out is left to the discretion of the Director of Audit.
In this respect, it has been found practicable to carry out the examinations by way of a series of test checks varying in content and depth as are considered to be appropriate in enabling him to fulfill his functions .

2.2 The Office of the Director of Audit Act No.


4 of 2014 was passed on 22nd May 2014 and under this enactment, the Director of Audit is enjoined to satisfy himself that: a) All reasonable precautions have been taken to safeguard the collection and custody of revenue and that the law, directions, and instructions relating thereto have been duly observed.

b) Expenditure has been incurred with due regards to economy and to the value obtained.
c) That public monies other than those which have been appropriated have been dealt with in accordance with proper authority.

d) All reasonable precautions are taken to safeguard the receipt, custody, issue and proper use of cash, stamps, securities and stores and that the regulations, directions and instructions relating thereto are duly observed; and Page | 63 e) That Adequate regulations, directions and instructions exist for the guidance of accounting officer.
2.3 With a view to dispel certain chronic misconceptions regarding the role of the Director of Audit, I must point out that the normal audit procedures employed are designed primarily for the purpose of forming an opinion on the accounts.

They are not intended to disclose each and every accounting error, nor for that matter, fraud, and the audit report cannot be regarded as a comprehensive statement of all weaknesses that exist or of all improvements that might be made.
Indeed, it is primarily the responsibility of Accounting Officers (Permanent Secretaries) and Heads of Departments/Divisions to ensure that effective systems of internal controls and safeguards are in place within their respective Ministries/Divisions so as to prevent and detect the occurrence of errors and fraud.
2.4 The Accountant General in her capacity as Chief Accounting Officer is required under the Finance Administration Act, 2006 Section 56 (2)(a) to: - “prepare the Public Accounts for the financial year in accordance with generally accepted accounting principles as determined in writing by the Minister, accounting for all public money and showing fully the financial position of Antigua and Barbuda at the end of the financial year.” 3 PUBLIC ACCOUNTS 3.1 The Public Accounts as outlined in the Finance Administration Act, 2006 subsection (1) shall include: - a) A summary statement of revenue and expenditure of the Consolidated Fund by standard object code.
b) A statement of assets and liabilities.

c) A comparative statement of actual and estimated revenue by details object code.

d) A statement of each Special Fund.

e) A statement of the balance in each Deposit Fund.

f) A statement of investment showing the funds on behalf of which the investment was made.

Page | 64 g) A statement of public debt and accumulated sinking funds h) A statement of the balance in any fund, other than a sinking fund, for which provision is made by or under an Act.
i) A statement of contingent liabilities of the Government.

j) A statement of balances on advance accounts from consolidated Fund and Deposit Funds analyzed under the various categories set out in section 35(1).

k) A statement of arrears of revenue by detailed object code.

l) A statement of losses of cash and stores.

m) The summary statements referred in section 19(1) and n) Any other statements that the House may require.
3.2 3.3 3.4 3.5 Section 97 (2)b of the Constitution of Antigua and Barbuda requires the Director of Audit to at least once every year to audit and report on the Public Accounts of Antigua and Barbuda, the accounts of all officers and authorities of the Government, the accounts of all Court maintained in Antigua and Barbuda (including any accounts of the Supreme Court maintained in Antigua and Barbuda), the accounts of every Commission established by this Constitution and the accounts of the Clerk to the House and the Clerk to the Senate.
The Director of Audit is required under Section 97 (5) of the Constitution of Antigua and Barbuda to submit every report made by him in pursuance of this section to the Minister for the time being responsible for Finance who shall, after receiving such report, lay it before the House not later than seven (7) days after the House next meets.
After the Public Accounts are laid before the house of Assembly, they are referred to the Public Accounts Committee which has the responsibility to examine and submit a report on the Public Accounts and the Director of Audit Report to the House of Assembly.

The Accountant General, Director of Audit and Representatives of the Government attend these Public Accounts Committee meetings and provide advice, testimony and other information as requested by the Committee.
I have audited the 2018 Public Accounts as outlined in the Constitution of Antigua and Barbuda and the Finance Administration Act, 2006 except for the accounts of Statutory Bodies.

These Bodies for the most part are audited by private firms in accordance with their enabling Acts.

The table attached to paragraph 20.5 highlights the status of Page | 65 Audited and Unaudited Financial Statements of Statutory Bodies for the year under review.
4 AUDIT APPROACH 4.1 4.2 The audit of the Annual Accounts of the Government of Antigua and Barbuda for the year ended December 31, 2018 continued to embrace the risk-based, materiality-driven approach to auditing.

Our planning materiality was set at $3,824,544 representing 0.3 percent of total expenditure for the year under review.

The risk of the accounts containing material misstatements was rated as high based on previous years’ experience.
Significant issues identified from audit of the accounts of previous years were: - i.

Supplementary Estimates required to cover appropriation over budgeted expenditure were not approved ii.

Bank overdraft iii.

Inability to determine the amount of revenue arrears since the required returns are not submitted by most entities Audit Procedures Expenditure 4.3 Physical check was done on a sample of expenditure vouchers generated in 2018.
Sampling method involved extracting vouchers with amounts greater than or equal to our set materiality level of $3,824,544, which represents 0.3% of the total expenditure.

Additionally, a sample of one tenth of the monthly vouchers was selected and a comparison of the actual voucher was done against the Freebalance system to verify the accuracy of the data set out on the vouchers.
Revenue 4.4 A process of comparative analysis was conducted on the financial statements to verify revenue amounts obtained from a few revenue departments.

This analysis of the 2018 revenue figures obtained from the generated ministries and the financial statement showed variances which are explained in our findings.
Page | 66 Assets and Liabilities 4.5 Amounts presented on the 2018 Financial Statements (Assets & Liabilities and Consolidated Statement of Revenue & Expenditures) were traced to the trial balance obtained from the Office of the Accountant General.

All balances and transactions exceeding $1,058,982 (planning materiality of 0.04%) were considered for verification procedures as well.
Additionally, expenditure and journal vouchers processed in period twelve (12) and thirteen (13) along with some high-risk transactions were selected for verification.

Contingent Liabilities 4.6 Pending and threatening litigation were presented by the Attorney General’s office.

These litigations will therefore be examined, and any findings will be reported within the report.
Advances & Deposits 4.7 Advance and Deposit accounts were verified to supporting documentations and further clarifications were made where necessary.

4.8 4.9 Electronic Software – Freebalance, SIGTAS and ASYCUDA Freebalance, SIGTAS and ASYCUDA are computer-based systems used by the Government of Antigua and Barbuda at the Treasury Department, Inland Revenue Department and the Customs and Excise Department respectively.
These departments utilize the electronic systems to record their daily transaction in respect to receipt from revenue, payments and warrants as well as generate data which is used in the preparation of the Public Accounts.

Reconciliation of SIGTAS and ASYCUDA It cannot be overly emphasized the importance of having the transactions transferred from SIGTAS and ASYCUDA agreeing to those generated through Freebalance.
This is of vital importance for the integrity and reliability of the financial statements of the Government of Antigua and Barbuda.

Findings of the reconciliation process have shown some differences between the figures from SIGTAS and Freebalance.

Page | 67 AUDIT FINDINGS 5.


STATEMENTS OF ASSETS AND LIABILITIES Cash in Hand – Accountant General 5.1 As per the Statement of Assets and Liabilities presented by the Accountant General as part of the financial statement, Cash in hand showed a balance of $2,712.00 as at 31st December 2018.
Additionally, we compared this information with the Internal Auditor’s Report dated 31st December 2018 which indicated that a total of $8,332,690.61 was deposited by night deposit to one of the major government accounts.

The cash amount of $2,712.05, as indicated by the Internal Auditor’s report, was retained for the continuity of business.
Bank Balances 5.2 The Cash at Bank was given as $(69,354,975) which represents regular and savings accounts and excludes balances on the fixed deposits account, overdraft accounts and short-term money market instruments.

As part of the notes to the financial statement it was stated: “The January 1st 2018 opening book balances are as per the reconciled closing balance as at December 31, 2017.

Balances included undrawn cheques for the years prior.
5.3 Once again, the process indicates a very significant reliance on the completeness of the Bank Statements.

One of the major bank accounts continues to show discrepancies in the closing amounts, therefore we cannot rely completely on the accuracy of the bank statements.
5.4 ISSAI 1510 section 6 outlining the audit procedures pertaining to opening balances states: “The auditor shall obtain sufficient appropriate audit evidence about whether opening balances contain misstatements that materially affect the current period’s financial statements by: (Ref: Para.
A1–A2) (a) Determining whether the prior period’s closing balances have been Page | 68 correctly brought forward to the current period or, when appropriate, have been restated; (b) Determining whether the opening balances reflect the application of appropriate accounting policies;” 5.5 In light of the proceeding paragraphs, I am unable to express an opinion on the accounting method used by the Accountant General.
Imprest 5.6 According to the Finance and Administration Act, 2006 Part V, Division 2 section 36(1) and (2) which states: 1) “Subject to the regulations, the Accountant General may on the authority of an imprest warrant issued under the hand of the Minister issue imprests from the Consolidated Fund to accounting officers for the purpose of making payments of small amounts that cannot conveniently be made through the Treasury” 2) “Any accounting officer to whom an imprest has been issued pursuant to subsection (1) shall retire that imprest not later than the end of the financial year in which the imprest was issued or, if some earlier date is specified in the imprest warrant or by the Accountant General, not later than that earlier date.” 5.7 5.8 5.9 As at 31st December, 2018 the Treasury Department, Ministry of Finance and Corporate Governance had eighteen (18) imprest holders in the amount of $2,089,487 and based on information obtained the full amount was retired during the financial year under review.
Unretired imprest on the government accounts gives misleading information based on the fact that unretired imprest may be fully or partially expressed in the previous year.

It is therefore commendable that all imprest were retired at the end of this financial year 2018 as stipulated in the Finance and Administration Act, 2006.
The Accountant General again must be commended on her efforts to hold Departments responsible and thereby instilling accountability and responsibility on the various Departmental Heads to ensure that the stipulations as set down in the Finance and Administration Act, 2006 are fully adhere to.
Page | 69 Savings Bank 5.10 The earliest available documented evidence of the existence of the St John’s Savings Bank of Antigua and Barbuda is the Savings Bank Act of 1846 enacted and ordained by the Governor, Council and Assembly of Antigua and addresses the rules and regulations established for the management of the institution.

The Savings Bank Act has been subsequently amended with the last amendment set out in Chapter 395 of the Laws of Antigua and Barbuda, Savings Bank Act of August 26, 1937.
5.11 The activities of the Saving Bank have remained the same as the previous eight years when it was reported that approximately ninety one percent (91%) of the accounts had an inactive status.

This status remained basically the same throughout the previous years, and during the financial year 2018 it was stated in the notes to the financial that “Savings bank balance has been reduced to comply with the records of depositors.
All cards have been updated to reflect interest earned.” Therefore, for this accounting year the status of these accounts has basically remained the same.

5.12 In light of Section 9 of the Act which states: - 1) Interest shall be payable on deposits at the rate of 2.5% per annum, or such other rate as may be fixed from time to time by the Cabinet: Provided that not less than three months’ notice of any change of rate shall be given in the Gazette.
2) Such interest shall not be payable on any amounts less than one dollar or on any fraction of one dollar and shall not commence to accrue until the first day of the month next following the day of deposit and shall cease on the last day of the month preceding that in which such deposits shall be withdrawn.
3) Interest on deposits shall, subject to the provisions of subsection (2) be calculated to the thirty-first day of December in every year and shall be added to and become part of any principal money remaining on deposit 5.13 The accounts which falls under the Savings Bank Act has become dormant over the years but has continued, by law, to generate interest at the rate of 2.5% annually.

For this financial year Savings Bank Funds was recorded as $380,640.
5.14 As was reported in my 2010 report, a sum of $4,681,945.00 was transferred to the Government general revenue fund from investments made with Crown Agents on behalf of the Government Savings Bank.
To date, my department has not been furnished with the desired documentation to support the transfer of funds in accordance with Cap.395 Sec 11 (1) which states: - “Subject to the provisions of this Act moneys in the Savings Bank shall not be applied in any way to the purposes of Antigua and Barbuda but, except so far as Page | 70 any sums may be prescribed to be kept in hand for the general purposes of the Savings Bank , shall be deposited in the Treasury of Antigua and Barbuda and shall, as far as practicable, be invested on behalf of the Savings Bank, under the direction of the Accountant General, in such securities or be employed at interest in such manner as shall be approved from time to time by the Cabinet, and any such investment may at any time be charged into other like securities: Provided that not more than one-third of such moneys shall at any time be or remain invested in securities of the Government.” 5.15 Having categorized the Saving Bank as non-existent, it is recommended, once again, that the required Parliamentary process be implemented so that the closure of this institution can be realized.
Accounts Payable 5.16 As at 31st December, 2018 the Statement of Assets and Liabilities reflected a balance of $268,913,167 as Accounts Payable.

An exercise was conducted to review the outstanding payables and it was revealed that at the end of the financial year Ministries still had commitments to suppliers.
Additionally, based on documented evidence received; Audit was able to determine that the Accounts Payable figure comprised amounts recorded for the past ten years (2009 – 2018) and can be seen below: - Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Trial Balance Amounts as at 2017 $40,866,373.87 $15,064,922.51 $31,902,592.23 $15,544,872.57 $32,411,646.46 $(1,441,968.82) $12,269,807.39 $75,453,501.05 $160,593,408.12 Statement Balances as at 2018 Trial Balance Amounts as at 2018 $ 39,168,512.45 $ 12,543,834 $ 15,064,922.51 $ 89,679,259 $ 31,902,592.23 $ 81,575,151 $ 15,544,872.57 $ 32,170,119.69 $319,613,930 $ (2,143,163.40) $131,629,287 $157,544,197 $ 12,117,365.97 $211,857,218 $ 61,510,983.46 $301,568,637 $ 59,607,522.97 $268,913,167 $ 85,065,856.70 5.17 Given the vast number of cheques that were still unpaid in the Office of the Accountant General as at 31st December 2018 we cannot place any reliance on the figure of Page | 71 $268,913,167 given in the Financial Statement of Assets and Liabilities.
It is therefore recommended that as at December 31 of every year, all outstanding cheques that are not paid to customers be compiled, tallied and continued to be treated as accounts payable.

6 Statement of Revenue 6.1 The total Recurrent and Capital Revenue for the financial year 2018 amounted to $1,180,881,275.

This reflects an increase in the collection of $36,852,133 from $1,144,029,142 reported in 2017.
From the Comprehensive Statement of Actual Revenues for 2017 & 2018 presented by the Accountant General it was observed that the performance of some individual revenue item showed significant changes which contributed to the increase of the revenue collection for the period under review.
[see table below] Revenue Item Income Tax Companies Tax on Gross Income for Unincorporated companies at 2% Property Tax Non-Citizen’s Undeveloped Land Tax Import Duties Export Duties Travel Tax Tax on Gross Income of Offshore Banks Environmental Tax Revenue Recovery Tax Sea Departure Tax Casino Licenses Professional License Fees Trade Licenses Motor Vehicle Licenses Antigua & Barbuda Sales Tax Liquor Licenses Interest on Advances Interest on Bank Accounts Share of W.I.O.C Profits Share of Profits – State Insurance Corp. Surplus Funds from Citizenship by Investment Programme Liqour License Licensing of Pharmacies Firearm Licenses Actual 2018 $ 72,975,807 Actual 2017 Difference $ 70,007,344 $ 2,968,463 $ 6,417,885 $ 20,211,746 $ 5,071,902 $ 18,867,479 $ 1,345,983 $ 1,344,267 $ 64,000 $ 92,624,845 $ 17,872 $ 6,335,396 $ 261,020 $ 3,374,748 $ 76,184,650 $ 324,612 $ 335,000 $ 2,000 $ 8,875 $ 1,819,539 $ 233,677,523 $ 707,060 $ 449,836 $ 185,546 $ 247,050 $ 96,051,914 $ 46,695 $ 7,517,838 $ 569,895 $ 3,453,827 $ 83,581,510 $ 428,424 $ 351,666 $ 5,500 $ 21,670 $ 2,109,054 $ 268,759,900 $ 773, 955 $ 546,474 $ 423,918 $ 5,324,801 $ 12,190,457 $ 22,505,427 $ 99 $ 21,550 $ 329,185 $ 2,005,427 $ 14,000 $ 323,715 $ 183,050 $ 3,427,069 $ 28,823 $ 1,182,442 $ 308,875 $ 79,079 $ 7,396,860 $ 103,812 $ 16,666 $ 3,500 $ 12,795 $ 289,515 $ 35,082,377 $ 66,895 $ 96,638 $ 238,372 $ 5,324,801 $ 12,190,457 $ 20,500,000 $ 99 $ 7,550 $ 5,470 Page | 72 Other Miscellaneous Licenses Registration and naturalization Fees Fees for certification of documents Sale of Articles Photocopying Police Certificate - Character Immigration Extension Police Reports Registration of Pharmacists Fees E-Visa Fees Airline Registration/Licensing Fees Parking Fees V.C.
Bird Airport Fees for DCA Services Customs Handling Charges Customs Officers Fees Market Dues and Fees Fish Processing Plant License Miscellaneous Receipts Creche Receipts Immigration Fees Transit Receipts Advice on Arrival of Parcels Receipts from Postal Meters Sale of Stamps (Net) Sale of Customs Forms Sale of Ice Sale of Cotton Lint & Seeds Sale of Seedlings Sundry Revenue – TV Sale of Hot Mix Other Court Fees Miscellaneous Receipts Sale of Land Issue of Government Securities Totals $ 42,220 $ 1,732,400 $ 15,470 $ 2,700 $ 317,783 $ 399,650 $ 3,022,785 $ 163,730 $ 24,450 $ 582,295 $ 26,190 $ 2,233 $ 737,483 $ 35,450 $ 845,072 $ 131,880 $ 82,119 $ 154,725 $ 4,815 $ 802,565 $ 21,449 $ 7,098 $ 104,800 $ 2,814,400 $ 44,561 $ 140,618 $ 2,736 $ 4,174 $ 588,351 $ 266,113 $ 319,266 $ 28,849,670 $ 63,594,771 $ 259,183,319 $ 969,933,588 $ 40,946 $ 1,324,392 $ 13,137 $ 248,266 $ 343,990 $ 2,404,475 $ 135,390 $ 17,400 $ 280,411 $ 850 $ 2,222 $ 603,164 $ 29,407 $ 679,888 $ 107,011 $ 68,453 $ 143,006 $ 3,140 $ 329,000 $ 20,691 $ 6,421 $ 54,900 $ 2,780,161 $ 13,212 $ 128,543 $ 1,274 $ 408,008 $ 2,333 $ 2,700 $ 69,517 $ 55,660 $ 618,310 $ 28,340 $ 7,050 $ 301,884 $ 25,340 $ 11 $ 134,319 $ 6,043 $ 165,184 $ 24,869 $ 13,666 $ 11,719 $ 1,675 $ 473,565 $ 758 $ 677 $ 49,900 $ 34,239 $ 31,349 $ 12,075 $ 2,736 $ 1,759 $ 2,415 $ 58,991 $ 529,360 $ 44,564 $ 221,549 $ 239,765 $ 79,501 $ 1,344,003 $ 27,505,667 $ 53,026,467 $ 10,568,304 $ 47,676,446 $ 211,506,873 $197,566,800 $ 772,366,788 6.2 The Comprehensive Statement of Actual Revenue reflected the combined collection of Revenue under specific categories.
In keeping with our audit approach, a variance analysis was performed on the revenue figures generated by specific departments [Inland Revenue and Customs] with the amounts represented on the financial statements.

Page | 73 6.3 Based on this analysis, the following amounts represent some minimal and substantial differences between the totals shown on the actual statement from the Treasury Department and the actual totals obtained from the Revenue Departments.
Income Income Tax Companies Tax for on Gross Unincorporated Companies at 2% Contribution Stabilization to Fund Property Tax Import Duties Tax on Gross Income of Offshore Banks Consumption Tax Throughput Levy-Fuel Products Sea Departure Tax Entertainment Tax & Arrears Stamp Duties Insurance Levy Other Licenses & Fees Telecommunications Licenses & Fees Motor Vehicle Licenses Liquor Licenses Sales Antigua & Barbuda Tax(Inland Revenue) Warehouse Rents - Customs Other Miscellaneous Licenses Registration & Naturalization fees Customs Handling Charges Customs Officer Fees Sale of Customs Forms Fines & Forfeitures Miscellaneous Receipts Antigua & Barbuda Sales Tax (Customs) National Management Totals Waste Solid Financial Statement $ Revenue Department $ Variance $ 72,975,807 6,417,885 71,386,825 6,428,969 1,588,982 (11,084) 525,032 420,073 104,959 20,211,746 96,051,914 20,205,876 96,612,395 5,870 (560,481) 569,895 444,027 125,868 46,274,661 4,378,594 428,424 687,369 41,149,290 5,357,693 563,276 105,206 52,574,867 4,378,598 422,359 749,015 41,182,901 5,338,830 561,836 106,826 (6,300,206) (4) 6,065 (61,646) (33,611) 18,863 1,440 (1,620) 2,109,054 773,955 2,108,254 756,600 800 17,355 268,759,900 138,314,861 130,445,039 53,235 42,220 1,732,400 35,450 845,072 44,561 1,336,267 28,849,670 55,860 38,135 1,732,600 (2,625) 4,085 (200) 35,460 842,447 7,720 237,961 1,312 (10) 2,625 36,841 1,098,306 28,848,358 139,994,390 (139,994,390) 5,765,043 (5,765,043) 600,278,576 590,704,040 9,574,536 Page | 74 Information received indicates that payments are made directly into the various bank accounts and the deposit slips along with a copy of the revenue statements are subsequently presented to the Treasury for their records.
This however does not explain the differences highlighted in the table above for the year under review and those presented in the Trial balance and the Financial Statements received from the office of the Accountant General.

There continue to be a breakdown in the process of reconciliation between the relevant agencies which has resulted in the differences reflected in the table above for the financial year under review.
6.4 Based on the information presented above, it can be deduced that the reported revenue amount shown on the financial statement does not reflect a true picture of the revenue collected and would therefore indicate that the total revenue figure in the Comprehensive Statement of Actual is not fairly stated.
7 Statement of Expenditure 7.1 7.2 7.3 7.4 Information taken from the budget estimate and the consolidated statement of revenue and expenditure for the financial year 2018 showed a recurrent budget of $1,478,933,375 while the actual expenditure was reported as $1,274,848,079.

The estimated amount for capital expenditure for the financial year according to the budget estimate was $197,017,772 whereas the actual capital expenditure was reported as $76,662,414.
Based on our calculations, the materiality figure was set at $3,824,544 and above for the examination of expenditure vouchers.

Sample vouchers were physically examined and compared with the information provided by the Treasury Department through its Financial System – Freebalance.

However, because of the magnitude of expense transaction processed during this financial year, the generation of a report reflecting any transactions of vouchers exceeding $500,000 and above was not obtained.
For the year 2018, approximately 40% of the expenditure vouchers representing expenses in the amount of $47,510,620.87 were examined.

The exercise also revealed expenditure vouchers with values of $500,000 or more.

Some of these vouchers have an aggregated total of $34,896,629 which represented payments to sundry vendors.

7.5 In light of the above, we are of the opinion that the information presented in the Consolidated Statement of Revenue and Expenditure is fairly stated.
Page | 75 Supplementary Provisions 7.6 Based on information gathered in our office an amount of $225,453,525 was identified for Supplementary provisions through the actual special warrants submitted to the department.

However, the information received from the Budget Office indicated that an additional amount of $149,943,705 was allocated to various Ministries/Departments though out the year under review.
It is therefore noted that a difference of $75,509,820 exist between figures obtained from our department and the Budget Office.

As stated in the Finance Administration Act 2006 section 27 (a) and (b): 27 “If in respect of any financial year it is found that the amount appropriated by the appropriation Act for any purposes is in sufficient or that a need has arisen for expenditure for a purpose to which no amount has been appropriated by that Act.
(a) “a supplementary estimate showing the sums required shall be laid before the House; and (b) when the supplementary estimate has been approved by the House, a supplementary appropriation Bill shall be introduced in the House providing for the issue of such sums from the Consolidated Fund and appropriating them to the purposes specified therein”.

7.7 From all indication, as well as based on past trend, it was deduced that no Supplementary Appropriation was presented to the House for approval.
This amount which was executed without parliamentary approval has a material effect on the financial statements which therefore means that I am unable to give an opinion.

7.8 During the financial year ending 31st December 2018 an amount of $313,790,039 was identified from the virement warrants submitted to the office and were processed and issued to various Ministries/Departments.
These warrants represent funds that were previously approved and are now transferred from one programme head to another within the specific Ministry or Department.

Surplus/Deficit for the Year under review 7.9 A review of the statements indicate that the consolidated statements of the revenue and expenditure for the year ended 31st December 2018 showed a deficit of $(93,966,803).
Given the understatement/overstatement of some Revenue and Expense figures presented within the financial statement; we are reasonably sure that the reported amount of $(93,966,803) does not present the true financial picture of the accounts for the Government of Antigua and Barbuda.

Page | 76 8.

Statements of Actual and Estimated Revenue 8.1 A Consolidated Statement showing the Actual and Estimated Revenue & Expenditure figures for 2017/ 2018 was prepared for the year under review.
Based on this statement we observed that there was an increase of $36,852,133 in revenue collected from the previous financial year (2017).

Additionally, during that same period, there was also an increase in the total expenditure of $4,520,725 resulting in an overall Deficit of ($220,265,015).

9.

Statement of Special Fund 9.1 The Statement of Special Funds/Special Account as at 31st December 2018 showed a balance of $23,446,459.
This amount represents the following: Description Administrator of Unrepresented Estates Administrator of Unrepresented Estates (Reserve Fund) Eldra Bachelor Licensed Banks Statutory Deposits Reserve A/C Financial Institutions Savings Bank Fund Statutory Deposits – Insurance Companies Stabilization Fund - Income Tax Total Amount $181,458.80 $4,767.31 - $11,633,094.67 $4,338,201.67 $380,639.54 $6,908,297.45 $24,257.43 $23,470,716.87 9.2 The Special Funds/Special Accounts consist of amounts for the financial years 2017 & 2018 and therefore reflect, to some measures, the cumulative balance of the fund.
In my opinion, the aforementioned overall total listed in the Statement and that calculated by my office, do not represent fairly the balance in the Special Fund/Account for the financial year 2018 and also the true picture of the general Fund.

Therefore, the statement is not fairly stated.

10 Statement of Deposit 10.1 As at 31st December, 2018 the Statement of Deposit Funds reported a balance of $149,422,799.
This amount represents net flows for the financial year 2018 and did not take into account the closing balances for previous financial years.

We can therefore conclude that the Statement of Deposits as at December 31, 2018 for the Government of Antigua and Barbuda does not represent a true picture of the deposit balances.
10.2 The Finance and Administration Act, 2006, Part VI section 45(5) states: Page | 77 “A Deposit Fund that is unclaimed for 5 years shall, subject to the provision of any law, cease to be a Deposit Fund and shall accrue to the Consolidated Fund, but the Minister may direct the refund of the amount of the Deposit Fund or any part of it to a person who subsequently satisfies the Minister that he is entitled to it.” 10.3 As at the date of this report, deposit accounts balance that have been inactive many years are outlined in paragraph 18.1 - table 1.
These inactive balances are amounts that represent un-reconciled totals by Ministries /Departments with the Accountant General.

All such amounts should be placed into the consolidated fund or be written off on the approval of the Cabinet of Antigua and Barbuda.

10.4 In light of the present situation, I cannot express an opinion on the Statement of Deposit balances.

11.
11.

Statement of Public Debt 11.1 During the financial year ending 31st December 2018, the Domestic Loans/Debt was reported as $1,422,116,833 while the External Loans/Debt was given as $1,151,656,318.

These figures reflected a total Public Debt of $2,573,773,152.
11.2 During the year under review information obtained in relation to debt servicing showed the following: Principal Repayment Interest Payment Principal Arrears Interest Arrears Domestic Government Central $187,975,866 $ 64,520,098 $ 37,198,432 $ 23,118,548 Domestic Government Guaranteed $ 30,154,313 $ 31,535,695 $ 16,739,214 $ 1,193,222 Total Domestic Debt $218,130,178 $ 96,055,793 $ 53,937,646 $ 24,311,770 External Central Government External Government Guaranteed $142,263,767 $ 22,633,625 $133,744,360 $ 57,041,673 $ 11,530,540 $ 5,947,699 $ 11,063,835 $ 2,994,327 Total External Debt $153,794,307 $ 28,581,324 $144,808,194 $ 60,036,000 Total Debt $371,924,485 $124,637,117 $198,745,840 $ 84,347,770 Page | 78 11.3 The Public Debt continues to be a huge indebtedness for the country, but I am satisfied with the information presented in the financial statement on the Government of Antigua and Barbuda debt stocks and can reasonable state that they are fairly presented.
12.

Statement of Contingent Liabilities 12.1 Contingent Liabilities as at December 31, 2018 was reported as $507,759.

This consisted of $325,798 in respect of Domestic liabilities and $181,961 for the External liabilities respectively.

12.2 For the financial year ending 31st December, 2018 the total Contingent Liabilities quoted above represents loan guarantees primarily to Statutory Bodies.
During this period there were twenty-five (25) loan accounts guaranteed by the Government of Antigua and Barbuda for fifteen (15) Statutory Bodies.

12.3 For the financial year 2018, the figure reported in The Statement of Contingent Liabilities for the External Loan guaranteed indicated an increase while the Domestic Loan guaranteed indicated a decrease in the amount incurred.

12.4 For this financial year, a list of pending or threatened litigations was presented by the Accountant General.
Information received from the Office of the Attorney General for this financial year 2018 gave no indication that any judgment had been reached on the list of cases identified in the notes to the accounts presented.

Based on this information we can conclude that the Statement of Contingent Liabilities is not fairly presented.

12.5 We continue to recommend that pending and threatened litigations against the Government of Antigua and Barbuda be included in the financial statements.
Additionally, greater detail must be provided by the Office of the Attorney General in regard to any judgment made within the financial year.

13.

Statement of Advances 13.1 As at 31st December 2018, the table below show Advances – Other Government which represents payments or receipt of Pension and Gratuity from other Governments.

Page | 79 13.2 The amounts in Table 1 represent the balances for the financial years 2015 - 2018.
This gives a clearer picture of the current standing of the Governments liabilities to the various countries or its assets from same.

Confirmation of balances from one of the eleven countries in the amount of ($7,114.37) was received for this financial year 2018 and is outlined in the table below.

Additionally, the records show that efforts were made to disburse $4,928,271 as payables to eleven of the Countries listed in the table.
Countries/ Government Balances as at 31.12.18 $ Balances as at 31.12.17 $ Balance as at 31.12.16 $ Balance as at 31.12.15 $ Pension Payables 2017 Pension Payables 2018 Confirm Balances by Countries – 2018 Anguilla 23,853 23,853 23,853 284,894.39 - - Barbados 266,340 12,267 12,267 305,984.91 2,975 4,068 (7,114.37) British Virgin Island 93,954 92,759 91,482 464,788.33 369,006 381,904 Dominica 1,350 1,350 1,350 (12,354.18) 600,388 624,274 Grenada Jamaica - - - - - - (12,418.29) 180,776 195,954 - 122,242 122,242 St Kitts 2,599,277 2,585,857 2,571,900 1,923,971.50 1,734,782 1,762,709 St Lucia 497,555 497,555 497,555 (33,768.06) 1,186,482 1,186,482 Montserrat 618,117 614,178 669,867 664,875.41 - - Trinidad & Tobago - - - (3,484.09) 335,158 336,214 St Vincent 230,801 230,801 230,801 165,953.51 314,423 314,423 Totals 4,331,246 4,058,620 $4,099,075 $3,748,443.43 4,846,232 4,928,271 13.3 For the period under review, the Audit Department received letters from one (1) of the eleven (11) countries indicating their respective book balances.
Over the past two or three years we have had limited verification of the amounts quoted for the different territories.

This is in spite of the effort made by the Accountant General’s Office in requesting that the different countries to provide the necessary information to my office.
13.4 In accordance with the Finance and Administration Act, 2006 Part V, Division 2 section 35 (1) (f) which states: Page | 80 (1) (f) “Subject to this section, the Accountant General may under the authority of an advance warrant issued under the hand of the Minister, from the Consolidated Fund or from money held as Deposit Funds, make advances of money- “to a public officer for such purposes as may be prescribed by General Orders in an amount not exceeding 0.00135% of the recurrent revenue in the annual estimates or such amount as may be prescribed, but the aggregate of such advances in the financial year shall not exceed 0.02885% of the recurrent revenue in the annual estimates.” 13.5 Government employees continue to benefit from this section of the Act in which personal loans under the following categories namely medical treatment, domestic (domestic, funeral expenses, education expenses) and purchase of vehicles are granted to them.
Such advances should be repaid monthly with a 1% interest charged on the reducing balance.

13.6 Outlined below in Table 2 is the list of personal advances granted to public servants during the financial year ended 31st December 2018.

Payments on Personal Advances to the value of $5,015,763 were reportedly made during 2018 and interest on these personal loans at the end of the financial year was reported as $546,474.
Table 2 Description Advance Warrants Audited Advances Medical Domestic Home Repairs $ 701,360 $ 2,631,270 $ 83,000 (Financial Statement) $ 1,854,935 $ 12,169,696 Purchase of Vehicle/Repair $ 18,800 $ (32,492) Education Funeral Personal $ 600,698 $ 27,200 $ 526,100 Gratuity/Pension $ 427,335 TOTAL $5,015,763 $13,992,139 Page | 81 14.

Statement of Investment 14.1 As reported in previous years, no Statement of Investment for the Government of Antigua and Barbuda was presented as at the date of this report.
This continues to be in breach of the Financial and Administration Act, 2006 Part IX Section 56 subsection 1 & 4(f) which states “(1) All public money shall be accounted for in the Public Accounts of Antigua and Barbuda; and (4) The Public Accounts referred to in subsection (1) shall include— (f) a statement of investments showing the funds on behalf of which the investments were made.
14.2 As part of the notes to the financial statement, the Accountant General presented a list of entities in which the Government has invested.

[See table listing below] It was also stated that “at the point of completion of the accounts valuations have not been completed.

As far as possible we have included the percentage ownership by the Government of Antigua and Barbuda.
The value of shareholdings and any movement in them will be presented in subsequent financial statements.” Company Shareholding LIAT 1974 Ltd 30% Cedar Valley Golf Club Ltd. $1,772,019 (Share value) West Indies Oil Company Eastern Caribbean Amalgamated Bank 51% 25% Lee wind Paints NAMCO CUB No documentation available Treasury 100% $30,000,000 to the .
14.3 Having started the process of documenting the entities and the level of investment that the government has, it is only prudent that the exercise be completed as promised so as to provide full disclosure of the Governments financial credentials.

15.

Statement of Losses of Cash and Stores 15.1 As at the date of this report, no statement of losses of cash and stores were presented as outlined in the Finance and Administration Act, 2006 Part IX Section 56 subsection 4(l).
Page | 82 The Audit Department has recognized that over the past years the Permanent Secretaries and Heads of Departments have not submitted statements of losses of cash and stores to the Accountant General.

15.2 For the period under review, there has been no documented evidence to indicate that Ministries/Departments heads are actively investigating cases where shortage of cash or stores has been uncovered.
15.3 Therefore, based on the above statement, the presentation of the 2018 public accounts are incomplete.

16.

Bank Reconciliation 16.1 For the financial year 2018 information indicates an amount of eighty-three (83) bank accounts which is inclusive of the fixed and short-term accounts.

The government currently operates about thirty (30) active bank accounts, which showed a closing balance of approximately ($37,125,861).
Of this amount reconciliation information was provided to indicate that twenty-six (26) of these accounts had been reconciled throughout the year.

16.2 Of the total number of Bank accounts operated by the Government of Antigua & Barbuda, it was observed from an examination of a sample of the statements for the year ended 31st December 2018 a total amount of $868,380.16 represented Overdraft Interest charges.
Additionally, $154,546.52 represents Service Charges and fees while $618,869 represents amounts for other fees and charges were levied on eight (8) of the major bank accounts of the Government of Antigua & Barbuda.

16.3 The reconciliation process has improved tremendously over the years; however, it is still critical that all accounts continue to be reconciled in order to identify and eliminate or reduce bank charges/errors that may have occurred in posting.

17.
17.

Notes to the Financial Statements 17.1 The notes presented in the Financial Statements for Antigua and Barbuda for the year ended 31st December 2018 continues to disclose greater details in some areas compared to those of previous years.
17.2 As outlined earlier in this report, the Accountant General’s responsibilities include the maintenance of adequate accounting records and internal controls relevant to determine if these Public Accounts are free from material misstatements due to fraud or errors in accordance with International Financial Reporting Standards.
It is also the responsibility of the Accountant General to continue to list and outline the basis of preparation and summary of significant accounting policies of the financial statements.

Page | 83 17.3 The detail information outlined in the notes contributed to the level of reliance that was placed on the accounts for 2018.

Officers must be commended for the quality of the notes and strive to maintain and enhance the preparation of future notes.
There is no limitation to the notes once they provide useful information to the understanding of the financials.

17.4 Based on the preceding paragraphs, it is my opinion that adequate background information was provided to substantiate the reliability of the information presented within the statements.

18.
18.

Unauthorized Removal of Balances 18.1 As outlined in the 2010 report, the presentation of the 2005 Public Accounts by the Accountant General revealed that millions of dollars were removed from various balance sheet line items.

Presented below are amounts that were removed from the accounts of the Government of Antigua and Barbuda without the required authority.
18.2 Additionally, as was mentioned in previous reports, the Audit of the 2008 Accounts revealed major differences between the balance submitted by the Accountant General and the balances calculated by the Director of Audit.

These balances were omitted from the annual accounts as of January 1, 2005 and the 2008 balances are resubmitted in the table below.
Account Personal Advances Other Balances (Advances Abnormal Balances (Advances) Dormant Balances (Advances) Dormant Balances (Deposits) Other Balances (Deposits) Social Security-Employee Social Security-Employer Medical Benefit – Employer Medical Benefit – Employee Education Levy Abnormal Balances (Deposits) Development Aid Suspense Account Miscellaneous Suspense Account Development Aid (CD&W) Other Special Funds Treasury Balances 31.12.08 ($) 4,516,241.57 1,098,936.04 (8,658,842.92) Audit Balances 31.12.08 ($) *27,520,542.50 *308,929,053.55 *(20,644,825.94) Differences ($) 23,004,300.93 307,830,117.51 (11,985,983.02) Nil Nil *12,754,671.58 *13,912,082.53 12,745,671.58 13,912,082.53 11,495,963.08 25,023,509.81 15,098,586.57 24,975,540.02 13,338,858.02 (32,557,403.57) 921,028.35 *96,557,073.22 *220,421,324.86 *152,873,179.28 *154,674,635.25 *50,541,608.11 *(120,397,548.87) 921,028.35 85.061,110.14 195,397,815.05 137,774,592.71 129,699,095.23 37,202,750.09 (87,840,145.30) Nil 12,762,535.00 *107,530,854.21 94,768,319.21 Nil 7,917,253.34 *1,059,889.69 *17,041,808.69 1,059,889.69 9,124,555.35 Page | 84 (5,262.23) Nil Nil Savings Bank Sugar Industry Fund (L.W.F) Development Fund-Dormant Balances (Advances) Development Fund (Deposit Balances) Statement of Losses Totals * Audit balance is greater than Treasury balance.
971,703.98 79,705,539.94 2,806,892.78 *3,976,147.48 *(9,351.64) *52,144,175.28 3,970,885.25 (9,351.64) 52,144,175.28 *300,094,358.00 297,287,465.22 971,703.98 1,380,872,410.11 Nil 1,301,147,345.81 18.3 At a part of the notes to the financials, it was stated that “the submission of the financial statements of 2015 saw the omission of a number of balances that were not given the appropriate treatment; however, they continue to be carried on the Treasury’s books.
A recommendation was made in March of 2013 that these balances be submitted to Parliament to be written off.

However due to extenuating circumstances, they have not been sent to Parliament for consideration.

The lists of balances were submitted to the Financial Secretary and are not a part of the figures used to produce the Financial Statements for the financial year 2018”, (see note 16 in the Notes for the Financial Statements).
18.4 In light of the information represented in the table above, and the preceding paragraph the 2018 Annual Accounts presented by the Accountant General does not represent a true and fair picture of the financial position of the Government of Antigua and Barbuda.

Therefore, I am unable to give an opinion because of the material effect on the statement.

19.

National Development Fund 19.1 The National Development Fund (CIP) was first initialized in 2014.
According to the notes to the financials, it was initially set up as a special fund; and monies deposited to the fund are recorded as revenue in the Treasury’s books and payments made out of the fund are expensed.

19.2 For the financial year ending December 31, 2018; total funds inflow was reported as $59,887,479; consisting of CIP Inflows of $52,358,727; CIP Surplus Funds of $7,178,752; and Interest Earned of $350,000.
The recorded Total Funds Outflows was $58,694,217 resulting in a Net Cash Inflow of $1,193,263.

20.

Status of Statutory Bodies Financial Statements and Audits - Analysis of Status 20.1 The Government of Antigua and Barbuda owns or controls thirty (30) State Owned Enterprises.

These Corporations or Agencies are either established by statute or by law in which the initial investment came from the Government Consolidated Funds.
Page | 85 20.2 For the financial year 2018 no additional information was received from the statutory bodies identified in the table below.

The data indicated that only two (2) Agencies presented its audited Financial Statements for the previous year.

To date some statutory bodies have never submitted their financial statements in spite of written request to do so over the years.
20.3 Given the sizable subventions these agencies continue to receive from the government, strong measures should be enforced to encourage the relevant individual to submit their financial reports on a yearly and timely basis.

The audited annual financial statements provide the assurance that this funding is being used as intended.
Additionally, up to date financial statements are required to enlighten the government of any contingent liability that statutory bodies may have incurred which represent potential liability to the government.

20.4 I am recommending that all statutory bodies take the necessary steps to have their financial statements audited and brought up to date.
Additionally, those bodies that did not receive favorable audit opinions should work to correct identified accounting and financial reporting deficiencies as quickly as possible.

20.5 The Government of Antigua and Barbuda continues to work diligently towards bringing the Public Accounts up to date; therefore, the statutory bodies are encouraged to do likewise.
This can only be achieved when the Parliament and the general public hold these bodies accountable for the disclosure of their financial positions and the presentation of audited accounts.
Page | 86 Status of Statutory Bodies / Agencies Financial Statements as at December 31, 2018 Statutory Body Auditor Most recent Audited Report Unaudited Type of Audit Opinion i 30th April, 2009 30th April, 2010 30th April, 2015 No opinion given Concord Business Associates Chartered Accountants Allen, Thomas & Associates 31st December, 2016 31st December, 2017 Concord Business Associates Chartered Accountants 31st December, 2012 31st December,2013 Unqualified Unqualified Unqualified with exception Unqualified 1.
Agricultural Development Corporation 2.

Antigua and Barbuda Investment Authority 3.

Antigua and Barbuda Port Authority 4.

Antigua and Barbuda Airport Authority 5.

Antigua & Barbuda Development of Marine Services & Merchant Shipping 6.

Antigua and Barbuda Development Bank 7.

Antigua and Barbuda Hospitality Training Institute 8.

Antigua and Barbuda Medical Council 9.

Antigua and Barbuda National Parks 10.

Antigua and Barbuda Social Security Fund 11.

Antigua and Barbuda Tourism Authority 12.


Antigua and Barbuda Transport Board PKF 31st December,2013 31st December,2014 31st December,2015 Unqualified with exceptions 13.

Antigua Carnival Committee /National Festivals Office 14.

Antigua Public Utilities Authority 15.

Barbuda Council 16.

Board of Education – PKF 31st December, 2014 Unqualified with exception Page | 87 1994 17.

Central Housing and Planning Authority 18.

Central Marketing Corporation 19.

Development Control Authority 20.


Financial Services Regulatory Commission 21.

Free Trade Processing Zone Allen Thomas & Associate 31st August,2007 31st August,2008 31st August,2009 Unqualified with emphasis of matters 31st December,2013 31st December,2014 31st December, 2015 31st December, 2013 31st December,2014 31st December,2015 22.

LIAT 23.

Medical Benefits Scheme KPMG 31st December,2011 31st December,2012 31st December,2013 24.

Mount St .John’s Medical Centre 25.


National Solid Waste Management Authority KPMG 26.

Office of National Drug & money Laundering Control Policy 27.

PDV Caribe Antigua and Barbuda Limited KPMG Allen, Thomas & Associates 28.

St. John’s Pier Group 29.


State Insurance Corporation 1 Unqualified, qualified, adverse, or disclaimer 31st December, 2004 31st December,2005 31st December,2006 31st December, 2013 31st December, 2014 31st December,2015 31st August,2012 31st August,2013 31st August,2014 31st August,2017 Unqualified with emphasis of matters Unqualified Unqualified with exceptions Unqualified Unqualified with matters Unqualified Page | 88 SCHEDULE OF APPENDICES APPENDIX A TREASURY FUND` Authorities for Expenditure 1.
Provisional (Appropriation Warrant) Issued by the Minister of Finance on the 1st January, 2018.

2.

Estimates Passed by the House of Representatives 5th February, 2018.

Passed by the Senate on the 15th February, 2018.

Assented to by the Governor General on the 21st February, 2018 3.

Appropriation Act (No.

1 of 2018) Passed by the House of Representatives 5th February, 2018.

Passed by the Senate on the 15th February 2018.

Assented to by the Governor General on the 21st February,2018 4.
Appropriation Warrant Issued by the Minister of Finance on the 22nd February, 2018 5.

Supplementary Appropriation Act, 2018 Not approved Page | 89 APPENDIX B DEVELOPMENT FUND Authorities for Expenditure 1.

Provisional (Appropriation Warrant) Issued by the Minister of Finance on the 1st January, 2018.

2.

Estimates Passed by the House of Representatives 5th February, 2018.

Passed by the Senate on the 15th February, 2018.

Assented to by the Governor General on the 21st February, 2018 3.
Appropriation Act,2018 (No.

1 of 2018) Passed by the House of Representatives on the 5th February, 2018.

Passed by the Senate on the 15th February, 2018.

Assented to by the Governor General on the 21st February, 2018 4.

Appropriation Warrant Issued by the Minister of Finance on the 22nd February, 2018 5.
Supplementary Appropriation of 2018 Not approved Page | 90 APPENDIX C UNAUTHORIZED RECURRENT AND CAPITAL EXPENDITURE HEAD / SUBHEAD GROSS/ EXCESS $ TOTAL $ 0101 Governor General Office 390326 Custodial Services 30301 Duty Allowance 30304 Housing Allowance 30711 Allowance to Deputy Governor General 0301 Cabinet 390302 Activities of State 30201 Salaries 0601 Auditor General’s Department 350310 Auditing 5,500.00 17,931.00 16,000.00 39,431.00 550,000.00 550,000.00 30713 Payment in Lieu of Vacation Leave 19,618.00 19,618.00 0901 Electoral Commission 390366 Parliamentary Process 34416 Election Expenses 1001 Prime Minister’s Office 390510 Ancillary Services 31001 Subsistence Allowance 31002 Ticket Expenses 36002 Maintenance of Public Grounds 1008 Military 290510 Ancillary Services 34406 Funeral Expenses 1010 Passport Division 330367 Passport & Visa Services 40316 330792 Introduction of E- Passports 41202 Contractors’ Costs 1101 External/Foreign Affairs 283510 Ancillary Services 30713 Payment in Lieu of Vacation 33910 1102 Overseas Diplomatic & Consular Section 390513 Foreign Services 37001 Payments to Overseas Offices 1501 Finance Headquarters 390510 Ancillary Services 37011 Grants to Individuals 1,658,400.00 1,658,400.00 775,000.00 400,000.00 67,500.00 1,242,500.00 10,000.00 10,000.00 28,000.00 28,000.00 1,358,721.00 1,358,721.00 20,000.00 2,510,786.00 2,530,786.00 395,021.00 395,021.00 6,400,000.00 Page | 91 33206 Insurance – n.e.c.
31601 Office Supplies 33901 Contribution & Subscription to Caribbean Organizations 900695 Computerization of Government Offices 40202 Purchase of Computer Software & Hardware 900494 IT Internal Services 31604 Maintenance Contact - Photocopiers 1502 Treasury 900301 Accounting 30103 Overtime 30203 Overtime 30206 30701 Honorarium 30106 1503 Inland Revenue 900439 Revenue Collection Services 30106 30301 Duty Allowance 30306 Travelling Allowance 40201 40202 40203 1504 Post Office 390301 Accounting 30101 Salaries 30301 Duty Allowance 30305 Entertainment Allowance 30308 Cashier Allowance 390371 Postal Services 30201 Salaries 30306 Travelling Allowance 1505 Customs & Excise 900439 Revenue Collection Services 30103 Overtime 31601 Office Supplies 2001 Agriculture Headquarters 300510 Ancillary Services 30103 Overtime 30208 33001 Advertising & Promotion Costs 33601 30203 Overtime 30716 Uniform Allowance 37012 Grants to Organizations & Institutions 300508 Special Events & Activities 31102 Food, Water & Refreshments 32001 Medals, Stationary, Seals & Gifts 31601 Office Supplies 33701 33705 34109 Rental or Lease – n.e.c.
(7,000.00) 41,200.00 6,000.00 1,800.00 3,000.00 1,500.00 74,751.00 75,400.00 295,900.00 842,460.00 117,535.00 12,190.00 Page | 92 300301 Accounting 30201 Salaries 250626 Land Development 41207 Land Cleaning Costs 2002 Agriculture Division 300301 Accounting 128,251.00 3,517.00 3,517.00 332,680.00 332,680.00 33101 Security Services 37015 Grant to Statutory Bodies & Corporations 100,000.00 300,000.00 400,000.00 300320 Conservation Management 30801 Gratuities & Terminal Grants 304455 Plant Quarantine & Inspection 30203 Overtime 30103 Overtime 304510 Ancillary Services 30709 Stipend 304795 Eradication of Giant African Snails 41204 Materials Costs 41202 Contractors’ Cost 302320 Conservation Management 30301 2003 Veterinary & Animal Husbandry 307301 Accounting 30301 Duty Allowance 30103 307412 Veterinary Services 30203 Overtime 307360 Livestock Improvement 36001 Maintaining Animal Pastures 33606 30713 Payment in Lieu of Vacation 30202 Wages 2005 Cotton Division 300388 Research and Development 30201 Salaries 2006 Lands Division 250626 Land Development 40515 Purchase of Utility Infrastructure 250354 Land Distribution Management 30201 Salaries 30301 Duty Allowance 31102 Food, water and refreshments 31601 Office Supplies 34401 37011 2007 Agriculture Extension Division 309418 Security Services 30203 Overtime Page | 93 2012 Development Control Authority 250510 Ancillary Services 30701 2013 Barbuda Administrative & General Services 390301 Accounting 37034 390418 Security Services 30202 Wages 2501 Health Headquarters 264460 Health Services Administration 30713 Payment in Lieu of Vacation Leave 30316 Risk Allowance 30208 Severance Pay 30801 Gratuities & Terminal Grants 30201 Salaries 30701 Honorarium 31102 Food, Water & Refreshments 31505 30202 Wages 30709 Stipend 40310 264413 Health Services 30701 264517 Emergency Medical Services 34109 Rent or Lease – n.e.c.
264542 Management of CARE Project 30203 Overtime 30103 Overtime 30202 Wages 36002 Maintenance of Public Grounds 36101 Repairs or Maintenance of vehicles, buses & trucks 30416 Risk Allowance 30411 Shift Allowance 30311 Shift Allowance 30316 Risk Allowance 31601 Office Supplies 31605 Repairs & Maintenance of Furniture & Equipment 36006 Maintenance of Buildings 2502 Medical General Division 261316 Community Health Services 30201 Salaries 30208 30316 Risk Allowance 30416 Medical Supplies 33701 Conference and Workshops 261510 Ancillary Services 30202 Wages 261328 Dentistry 30201 Salaries 30709 Stipend 2503 Central Board of Health (1,000.00) 139,712.00 Page | 94 266382 Public Health Services 37034 266410 Vector Control 30101 Salaries 30202 Wages 30802 266523 Environmental Health Risk Reduction & Sanitation 37015 Grants to Statutory Bodies & Corporations 33502 266510 Ancillary Services 30701 36003 Maintenance of Cemeteries 2506 Fiennes Institute 430389 Residential Care Services 30316 Risk Allowance 30416 Risk Allowance 30701 2522 Environment Division 502344 Environmental Legislation & Monitoring 30709 Stipend 34003 30201 502311 Biodiversity Action Plan 30201 Salaries 502379 Public Awareness 30101 Salaries 502398 Production of Official Statistics 30101 Salaries 30201 Salaries 502510 Ancillary Services 30101 Salaries 30201 Salaries 30202 Wages 3003 Primary & Secondary Education Division 271472 Teaching, Training & Development 30101 Salaries 30208 271510 Ancillary Services 30202 Wages 272472 Teaching, Training & Development 30101 Salaries 3005 State College 273344 Human Resource Management 30201 Salaries 30202 273402 Tertiary Education Services 30201 Salaries 30318 Acting Allowance 30406 Travelling Allowance Page | 95 3006 Public Library 274463 Library Services 30101 Salaries 30202 Wages 30406 33401 Computer Hardware Maintenance Costs 33402 Computer Software upgrade costs 33501 Office Cleaning 33508 Household Sundries 33604 Air Freight Expenses 33705 Course Costs & Fees 3012 National School Meals Programme 308443 School Meals Initiative 40312 Purchase of Kitchen Equipment 3015 ABITT 273472 Teaching and Training 30416 31506 32001 Medals, Stationary, Seals & Gifts 3016 School of Nursing 273341 Health Education 30306 Travelling Allowance 3501 Civil Aviation 390510 Ancillary Services 30801 Gratuities and Terminal Grants 30701 31601 Office Supplies 390301 Accounting 30201 Salaries 30406 Travelling Allowance 256706 Airport Development and Transportation 36206 Other Repairs and Maintenance 41202 Contractors’ Costs 3502 V.C.
Bird International Airport 256304 Air Traffic Control 30103 Overtime 36005 Airport Operation and Maintenance 30704 Medical Treatment 3503 Meteorological Office 502362 Meteorological Services 30103 Overtime 30106 Arrears of Salaries 4001 Public Works & Transportation Headquarters 250344 Human Resources Management 30416 Risk Allowance 30201 Salaries 30203 Overtime 30713 Payment in Lieu of Vacation 30802 Compensation and Indemnities 250445 Motor Pool Operations (2,000.00) 6,018,494.00 33,000.00 195,000.00 228,000.00 3,500,000.00 150,000.00 2,500,000.00 25,500.00 100,000.00 6,150,000.00 125,500.00 Page | 96 40101 Purchase of Vehicles 250399 Procurement 30202 Wages 250301 Accounting 30202 Wages 30201 Salaries 4002 Works Division 251333 Engineering Services 30201 Salaries 251387 Repairs & Maintenance Services 33203 Insurance – Motor Vehicles 36010 Repairs or Maintenance of Roads, Streets & Drains 30201 Salaries 251630 Construction or Major Upgrade of Roads, Streets & Drains 40310 Purchase of Equipment n.e.c.
41202 Contractor’s Costs 41204 Material Costs 255418 Security Services 33101 Security Services 30401 Duty Allowance 251448 G.I.S.
& Planning 30201 Salaries 30202 Wages 255387 Repairs & Maintenance Services 31605 Repairs and Maintenance of Furniture & Equipment 33501 Office Cleaning 30202 Wages 255611 41202 253665 41204 40104 251652 41202 251446 Quarry Operations 36206 Other Repairs & Maintenance Costs 30201 Salaries 31202 Fuel and Oil 30202 Wages 255309 Apprenticeship Programme 30202 Wages 251459 Cuban Workers Initiative 31102 30203 Overtime 31002 Ticket Expenses 30202 Wages 34417 Bank Charges 34422 Contingency Costs 33206 Insurance – n.e.c.
4004 Equipment Maintenance and Funding Scheme 253309 Apprenticeship Programme Page | 97 30202 Wages 253387 Repairs and Maintenance Services 31902 Spare Parts 30201 Salaries 30202 Wages 30101 Salaries 31601 31202 Fuel and Oil 40401 4501 Social Transformation Headquarters 430317 Community Services & Planning 37011 Grants to Individuals 30401 Duty Allowance 30201 Salaries 30101 Salaries 30301 Duty Allowance 30305 Entertainment Allowance 30713 30406 Travelling Allowance 30801 430395 Social Welfare Services 31501 Medical Supplies 37034 Expenses of Boards and Committees 4502 Board of Guardians 433395 Social Welfare Services 30709 Stipend 4503 Community Development Division 430318 Project Development 30202 Wages 30201 Salaries 30709 4505 Family and Social Services Division 433317 Community Service and Planning 30201 Salaries 30401 Duty Allowance 30406Travelling Allowance 433323 Counseling Services 30101 Salaries 30306 Travelling Allowance 433376 Juvenile Probation Services 30301 Duty Allowance 433395 Social Welfare Services 30306 Travelling Allowance 4508 Social Policy Unit 430317 Community Services and Planning 30801 4509 Gender Affairs 435344 Human Resource Management 30101 Salaries 30106 30306 Travelling Allowance 250,000.00 250,000.00 2,500,000.00 4,000.00 1,000,000.00 2,700.00 1,000,000.00 80,000.00 2,000,000.00 15,000.00 9,000.00 174,913.00 22,200.00 5,200.00 1,700.00 57,200.00 4,500.00 47,000.00 1,500.00 205,200.00 6,586,700.00 15,000.00 331,513.00 206,700.00
 500,000.00 500,000.00 9,400.00 39,000.00 96,500.00 78,000.00 74,000.00 36,364.00 26,500.00 1,900.00 144,900.00 188,364.00 28,400.00 31,794.00 31,794.00 3,018.00 3,018.00 20,000.00 20,000.00 3,350.00 7,600.00 616.00 10,950.00 616.00 Page | 98 4510 Youth Affairs 430344 Human Resource Management 30201 Salaries 4512 Establishment Division 390344 Human Resource Management 31001 Subsistence Allowance 31002 Ticket Expenses 31102 30701 4514 Boys’ Training School 430415 Youth Development Services 30202 Wages 30203 Overtime 5501 Attorney General & Legal Affairs Headquarters 291510 Ancillary Services 33001 Advertising and Promotion Costs 30103 Overtime 34009 Commitment Fees 30201 Salaries 33003 Public Awareness Expenses 30203 Overtime 30106 Arrears of Salaries 30713 Payment in Lieu of Vacation Leave 30801 Gratuities and Terminal Grants 33901 Contribution and Subscription to Caribbean Organizations 33508 Household Sundries 36206 Other Repairs and Maintenance Costs 30709 Stipend 30101 Salaries 291353 Judiciary 30801 Gratuities and Terminal Grants 30709 Stipend 30106 Arrears of Salaries 291690 Purchase of Minor Capital Items 40315 5502 Office of the Director of Public Prosecutions 390510 Ancillary Services 30101 Salaries 30306 390353 Judiciary 30310 30106 30304 Housing Allowance 30101 Salaries 30306 Traveling Allowance 5504 Land Registry Division 390354 Land Distribution Management 30101 Salaries 30103 Overtime 30203 Overtime 10,827.00 10,827.00 1,050,000.00 300,000.00 3,000.00 5,000.00 1,358,000.00 10,800.00 50,487.00 61,287.00 1,400.00 5,200.00 2,230,549.00 17,100.00 400,000.00 2,410.00 426.00 24,100.00 54,900.00 204,166.00 80,000.00 1,400.00 15,000.00 (3,948.00) 15,102.00 10,000.00 7,453.00 3,032,703.00 25,102.00 7,453.00 13,850.00 13,850.00 12,318.00 3,624.00 12,000.00 11,291.00 3,500.00 26,724.00 1,134.00 21,388.00 29,634.00 4,930.00 15,942.00 54,649.00 55,952.00 Page | 99 390301 Accounting 30101 Salaries 390690 40203 5505 Industrial Courts 390348 Industrial Dispute Services
 30106 Arrears of Salaries 30201 Salaries 30306 Travelling Allowance 30713 Payment in Lieu of Vacation Leave 37034 Expenses of Boards and Committees 5506 High Court 390530 Court Services 30201 Salaries 390543 Civil Registry 30709 5507 Magistrates Court 291353 Judiciary 31601 Office Supplies 33508 Household Sundries 291301 Accounting 30314 On-Call Allowance 291690 40203 5509 Intellectual Property 291351 Intellectual Property Protection 30201 Salaries 30203 Overtime 30406 30401 Duty Allowance 30301 30103 Overtime 291690 40317 5510 Labour 392344 Human Resource Management 30202 Wages 392509 Monitoring and Enforcement 33701 Conference and Workshops 392531 Active Labour Market Initiatives 30101 Salaries 30106 Office Supplies 392690 40101 5511 National Security Headquarters 390418 Security Services 30801 Gratuities and Terminal Grants 30405 30713 40203 1,164.00 9,920.00 1,164.00 9,920.00 4,460.00 152,736.00 (3,624.00) 28,039.00 (836.00) Page | 100 40315 390546 31303 33707 5512 Police 290358 Law Enforcement Management 30713 Payment in Lieu of Vacation Leave 31004 Leave Passage Grant 30306 Travelling Allowance 34406 Funeral Expenses 30301 Duty Allowance 31001 Subsistence Allowance 30801 33103 Investigative Expenses 290352 Intelligence Gathering 30201 Salaries 30106 Arrears of Salaries 30401 Duty Allowance 30418 Acting Allowance 30716 Uniform Allowance 5514 Fire Brigade 290337 Fire Protection Services 30713 Payment in Lieu of Vacation Leave 36101 Repairs or Maintenance of vehicles ,buses & trucks 30716 Uniform Allowance 40310 5515 Prison 290432 Penal Reform 30301 Duty Allowance 40315 6001 Office of the Ombudsman 390491 Parliamentary
 Oversight 33701 Conference and Workshops 8001 Tourism Headquarters 500510 Ancillary Services 30401 Duty Allowance 30201 Salaries 30301 Duty Allowance 30101 Salaries 30203 Overtime 30208 Severance Pay 30713 Payment in Lieu of Vacation Leave 500451 Sports Tourism 30401 Duty Allowance 30406 Travelling Allowance 30201 Salaries 8003 Antigua Tourist Office 500407 Tourism Development Plan 30406 Travelling Allowance 30201 Salaries 30401 Duty Allowance (28,800.00) (12,000.00) (123,840.00) 7,200.00 108,000.00 12,000.00 260,119.00 (164,640.00) 7,200.00 Page | 101 30415 Other Allowances and Fees 500451 Sports Tourism 30201 Salaries 30401 Duty Allowance 30406 Travelling Allowance 500405 Tourism Promotion and Marketing 30201 Salaries 30401 Duty Allowance 500510 Ancillary Services 30203 Overtime 8009 Beach, Safety and Protection Unit 390301 Accounting 30203 Overtime 30418 390320 Conservation Management 30203 Overtime 30202 Wages 8501 Trade & Economic Development 280408 Trade & Investment Promotion 30801 280778 41206 390438 Trade Management 30401 30201 Salaries 8503 Price & Consumer Affairs 390379 Public Awareness 30201 Salaries 390322 Consumer Protection 30201 Salaries 390369 Policy, Planning and Implementation 30101 Salaries 390471 Consumer Education 30201 Salaries 8505 Sports 430396 National Sports Administration 30201 Salaries 30202 33714 33905 Contribution & Subscription to Local Organizations 37034 41202 430524 Management of Sir Vivian Richard’s Stadium 30202 Wages 33101 Security Services 9501 Public Information & Broadcasting 410510 Ancillary Services 30713 30801 410380 Public Broadcasting
 Services Page | 102 30713 Payment in Lieu of Vacation Leave 31902 Spare Parts 9502 Information Technology 410493 E-Government 40202 Purchase of Computer Software & Hardware 30201 Salaries 33402 Computer Software upgrade costs 33403 Computer Software licensing and renewal 30406 410695 40202 9503 Telecommunications Division 410509 Monitoring & Enforcement 40315 Total 11,500.00 162,000.00 173,500.00 324,000.00 652,590.00 1,467,000.00 900,000.00 82,596.00 3,426,186.00 1,155,450.00 1,155,450.00 135,000.00 135,000.00 $149,943,705.07 Page | 103