Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697642305093.pdf (Antigua and Barbuda)
OFFICE OF THE DIRECTOR OF AUDIT A AUDITED FINANCIAL REPORT 2012 AUDITED FINANCIAL REPORT TABLE OF CONTENTS SECTION PAGE Acknowledgement …………………………………………………………………….

3 Director of Audit Report ……………………………………………………………… 4 Statement of Revenue and Expenditure ………………………………………………….. 7 Statement of Assets and Liabilities ……………………………………………………… 11 Statement of Actual Revenue for 2011/2012 …………………………………………… 13 Statements of Public Debt ……………………………………………………………… 19 Statement of Special Fund …………………………………………………………….
21 Statement of Deposit Funds ………………………………………………………..…….

22 Statements of Advances …………………………………………………………………… 25 Statement of Contingent Liabilities ……………………………………………………….. 27 Notes to the Financial Statements ……………………………………………………………29 Introduction …………………………………………………………………………………..34 The Nature and Scope of the Audit …………………………………………………… …… 35 Audit Findings ……………………………………………………………………………….
40 SCHEDULE APPENDICES Authorities of Expenditures ………………………………………………………….. A – E Audited Ministries / Departments ………………………………………………………..G Status of Financial Statements of Statutory Bodies/Agencies …………………………..H 2 | P a g e AUDITED FINANCIAL REPORT ACKNOWLEDGEMENT I would like to express my gratitude and sincere appreciation for the work and support of the Audit staff, whose dedicated efforts have permitted the completion and submission of this report.
I also wish to thank the staff of the Government Printing office for their cooperation and courtesies extended to the Director of Audit and his staff.

3 | P a g e AUDITED FINANCIAL REPORT 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@antigua.gov.ag Ref: No 27th October, 2015 AUDITOR’S REPORT To: The Honourable Members of the House of Parliament Report on the Financial Statements I have audited the accompanying Public Accounts of the Government of Antigua and Barbuda as at December 31, 2012 which comprises the Statements of Assets and Liabilities, Revenue and Expenditure, Special Fund/Special Accounts, Deposit Funds, Public Debt, Contingent Liability and Advances as required by the Finance Administration Act, 2006 section 56.
Management’s Responsibility for the Financial Statements Under Part IX, 56 (2) of the Finance Administration Act, the Accountant General is responsible for preparing, maintaining and ensuring that a proper system of accounts is established and all public monies are accounted for and that the financial statements reflect the financial position of the government of Antigua and Barbuda at the end of the financial year.
This section of the Act also 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 4 | P a g e AUDITED FINANCIAL REPORT material misstatements due to error of fraud in accordance with International Financial Reporting Standards.

Auditor’s Responsibility The Director of Audit’s responsibility is to express an opinion on these Public Accounts.
This audit was guided by the International Standards for Supreme Audit Institutions (ISSAIs), 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 appropriateness of accounting policies used; the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the Public Accounts.
In making those 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 controls.
Opinion Although there has been some improvement in the quality of information presented in the financials, we found that there were many areas where policies and regulations were not fully adhered to.

The whole 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.

Revenue collection and reporting continue to be an area of high risk.
From our examination of the selected sample, there was a difference of $109,738,830.34 between the collections from the revenue departments and the Office of the Accountant General.

Additionally, an amount of $50,154,492.30 representing Supplementary Appropriation for special warrants that have not been approved by Parliament as stipulated by the Finance and Administration Act 2006 and an amount of $30,500 for undisclosed litigations were also listed among our audit findings.
5 | P a g e AUDITED FINANCIAL REPORT 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 2012.
Dean Evanson Director of Audit St Mary’s & Temple Street St John’s 27th October 2015 6 | P a g e AUDITED FINANCIAL REPORT 7 | P a g e AUDITED FINANCIAL REPORT 8 | P a g e AUDITED FINANCIAL REPORT 9 | P a g e AUDITED FINANCIAL REPORT 10 | P a g e AUDITED FINANCIAL REPORT 11 | P a g e AUDITED FINANCIAL REPORT 12 | P a g e AUDITED FINANCIAL REPORT 13 | P a g e AUDITED FINANCIAL REPORT 14 | P a g e AUDITED FINANCIAL REPORT 15 | P a g e AUDITED FINANCIAL REPORT 16 | P a g e AUDITED FINANCIAL REPORT 17 | P a g e AUDITED FINANCIAL REPORT 18 | P a g e AUDITED FINANCIAL REPORT 19 | P a g e AUDITED FINANCIAL REPORT 20 | P a g e AUDITED FINANCIAL REPORT 21 | P a g e AUDITED FINANCIAL REPORT 22 | P a g e AUDITED FINANCIAL REPORT 23 | P a g e AUDITED FINANCIAL REPORT 24 | P a g e AUDITED FINANCIAL REPORT 25 | P a g e AUDITED FINANCIAL REPORT 26 | P a g e AUDITED FINANCIAL REPORT 27 | P a g e AUDITED FINANCIAL REPORT 28 | P a g e AUDITED FINANCIAL REPORT 29 | P a g e AUDITED FINANCIAL REPORT 30 | P a g e AUDITED FINANCIAL REPORT 31 | P a g e AUDITED FINANCIAL REPORT 32 | P a g e AUDITED FINANCIAL REPORT REPORT OF THE DIRECTOR OF AUDIT ON THE ACCOUNTS OF ANTIGUA AND BARBUDA FOR THE YEAR ENDED DECEMBER 31, 2012 INTRODUCTION 1.1 This report is made to the Honourable Minister of Finance, the Economy and Public Administration 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, 2012.

The comments herein are accordingly confined to matters arising out of the Annual Financial Statements for the year ended December 31, 2012, 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 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 1.5 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.
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.
33 | P a g e AUDITED FINANCIAL REPORT 1.6 1.7 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 In the meantime, the Office of the Director of Audit Act of 2014 elaborates upon the Constitutional provisions.
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; and d) Adequate regulations, directions and instructions exist for the guidance of accounting officers and accountable officers.
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 34 | P a g e AUDITED FINANCIAL REPORT 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 3.1 PUBLIC ACCOUNTS 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 were made; 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; 35 | P a g e AUDITED FINANCIAL REPORT 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 2012 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.

Appendix (H) highlights the status of 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, 2012 was conducted based on the risk-based, materiality-driven approach to auditing.

Our planning materiality was set at $2 million dollars 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:- 36 | P a g e AUDITED FINANCIAL REPORT i.

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

Unauthorized bank overdraft iii.

Bank reconciliation statements not prepared iv.


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 2012.

Sampling method involved, extracting vouchers with amounts greater than or equal to our set materiality level of $2,324,161.94; 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 recorded on the vouchers.

Revenue 4.4 A process of comparative analysis was conducted on the financial statements to verify revenue amounts obtained from the different revenue departments.
The comparison of the 2012 revenue figures obtained from the selected ministries and the financial statement showed variances which are explained in our findings.

Assets and Liabilities 4.5 Amounts presented on the 2012 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 $1,343,052 (thirty percent (30%) planning materiality) 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 confirmed with the Attorney General’s office.

These litigations will be verified and the findings reported within the report.
37 | P a g e AUDITED FINANCIAL REPORT Advances & Deposits 4.7 Advance and Deposit accounts were verified with supporting documentations and further clarifications were made where necessary.

4.8 4.9 Electronic Software – Freebalance, SIGTAS and CASE Freebalance, SIGTAS and CASE are computer-based systems used by the Government of Antigua and Barbuda at the Treasury Department, the Inland Revenue Department and the Customs and Excise Department respectively.
These departments utilize the electronic systems to record their daily transactions 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 CASE It cannot be overly emphasized the importance of having the transactions transferred from SIGTAS and CASE agreeing to those generated through Freebalance.
This is of vital importance for the integrity and reliability of the accounts/financial statements for the Government of Antigua and Barbuda.

Findings of the reconciliation process have shown that there are major differences between the figures from SIGTAS and Freebalance.

38 | P a g e AUDITED FINANCIAL REPORT 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 report, Cash in hand showed a balance of $36,705.00 as at 31st December 2012.

Additionally, we compared this information with the Internal Auditor’s Report dated 2nd January 2013 and the breakdown is presented below: Revenue Collection ……………………………….

$ 80,057.88 US$ Cash ……………………………………….. $ 54.00 EC Cheques…………………………………….
$8,691,162.09 Total …………………………………………… $8,771,273.97 As can be seen from the above information, the figure of $36,705.00 that was reported on the financial statement, is much less than the figure of $8,771,273.97 reflected in the internal Auditors’ report.

We must once again reiterate the fact that the actual cash on hand should include the deposited amount, since that amount would not have been accounted for at the bank.
We can only then conclude that the Cash in Hand does not present fairly the correct figure in the financial statements.

Bank Balances 5.2 The Cash at Bank was given as ($50,908,751) 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 that: “….. opening book balances are as per the reconciled closing balance as at December 31, 2011.
Balances included undrawn cheques for the years prior including 2010”.

5.3 The process once again is indicating that too much reliance is being placed on the completeness of the bank statements.

The historical trend of making incorrect postings to government accounts is still an occurrence therefore, we cannot rely completely on the accuracy of the bank statements.
39 | P a g e AUDITED FINANCIAL REPORT 5.4 ISSAI 1510 Section 6, outlining the audit procedures pertaining to opening balances states that: “The auditor shall obtain sufficient appropriate audit evidence about whether the 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 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 preceding paragraphs, I am unable to express an opinion, based on this 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 imprest 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 As at 31st December, 2012 the Treasury Department, Ministry of Finance the Economy and Public Administration had nine (9) imprest holders in the amount of $623,430.56 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 have been fully or partially expressed in the previous year.

It is therefore commendable that all imprest were retired at the end of the financial year 2012, as stipulated in the Finance and Administration Act, 2006.
40 | P a g e AUDITED FINANCIAL REPORT 5.9 The Accountant General 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 adhered to.
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 Savings Bank have remained the same as the previous year 2010, when it was reported that approximately ninety one percent (91%) of the accounts had an inactive status.

This status remained basically the same for 2011 and now again in 2012.
5.12 In light of Section 9 of the Act which states:- 1) Interest shall be payable on deposits at the rate of 2½ per centum 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 fall under the Savings Bank Act have become dormant over the years, however, these balances have continued to generate interest at the rate of 2.5% annually.
For this financial year, Savings Bank Funds were recorded as $3,985,000.12 which would generate a calculated amount of interest of $99,625.00.

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, this department has not been furnished with the desired documentation to support the transfer of funds in accordance with Cap.395 Sec 11 which states that:- 41 | P a g e AUDITED FINANCIAL REPORT “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 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 like securities.” 5.15 Having categorized the Saving Bank as non-existent, it is recommended, once again, that the required Parliamentary process be enforced so that the closure of this Unit can be realized.
Accounts Payable 5.16 As at 31st December, 2012 the Statement of Assets and Liabilities reflected a balance of $81,574,151 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, we were able to determine that the Accounts Payable figure comprised amounts recorded for 2009 – 2012 and can be seen below:- Statement Balances Years 2009 2010 2011 2012 Totals * figure represents 2009 and 2010 payables Trial Balance Amounts $58,447,509.35 $15,980,540.84 $34,219,793.26 $46,054,885.27 $154,702,728.72 * $12,543,834 $89,679,259 $81,574,151 $183,797,244 5.17 Given the vast amount of cheques that were still unpaid in the Office of the Accountant General as at 31st December 2012, we cannot place any reliance on the figure of $81,574,151 given in the Financial Statement of Assets and Liabilities.
It is therefore recommended that as at December 31 of every year, outstanding cheques that are not paid to customers, be compiled, tallied and treated as accounts payable.

6 6.1 Statement of Revenue The total Recurrent and Capital Revenue for the financial year 2012 amounted to $759,649,346.

This reflected a decrease in the collection of $5,350,231 from $764,999,577 reported in 2011.
From the Comparative Statement of Actual Revenues for 2011 & 2012 presented by the Accountant General, it can be deduced that the 42 | P a g e AUDITED FINANCIAL REPORT performance of some revenue item indicated shortfalls, contributing to the reduction in the recorded revenue collection for the period under review.
[see table below] Revenue Item Actual 2012 Actual 2011 Difference Non Citizens Underdeveloped Land Tax Travel Tax $11,267 $5,804,827 - - $13,450,370 $2,423,532 $23,603,232 $16,591 $1,221,250 Embarkation Tax Environmental Tax Consumption Tax Crown Land Leases Interest on Advances Profit – Currency Authority Radio & Television Licenses $335,000 Casino Licenses $4,335 Beach Vendor’s Licenses $4,335 Trade Licenses $1,361,346 Motor Vehicle Licenses $112,180 Firearm Licenses $481,095 Marriage license fees $47,847 Other Miscellaneous licenses $34,371 Sale of Passports $4,345 Examination Fees $199,852 Photocopying $2,563,052 Immigration Extension $593,382 Registration & Examination Fees $3,500 Pesticide Registration Fee $95,578 Landing Fees $641,190 Customs Officers Fees Licensing & Inspection Fees - Veterinary Authority $110,763 $119,881 Fishing processing plant licensing fees $36,862 Local fishing vessel registration & licensing fees $76,726 Survey Fees $329,663 School Meals $383,788 Rental of Letter Boxes $58,296 Transit Receipts Parcel post receipts - $2,272 Gain on Remittances $8,700 Advice on Arrival of Parcels $210,132 Receipts from postal meters $6,841 Express Services $154,262 Bulk Postage $1,891,879 Sale of Stamps (Net) $33,116 Sale of Customs Forms $14,505 Sale of produce – Green Castle 43 | P a g e $29,572 $6,201,088 $15,603,482 $2,427,146 $39,252,889 $39,536 $1,604,501 $3,121,858 $16,000 $376,000 $8,060 $8,060 $1,613,860 $124,380 $498,560 $$65,511 $46,054 $29,626 $233,209 $2,596,958 $652,690 $31,500 $106,502 $822,302 $131,411 $135,189 $39,280 $92,758 $344,502 $455,669 $250,970 $65,000 $5,274 $11,176 $365,390 $20,370 $188,851 $2,392,457 $64,575 $37,385 $18,305 $396,261 $2,153,112 $3,614 $15,649,657 $22,945 $383,251 $3,121,858 $16,000 $41,000 $3,725 $3,725 $252,514 $12,200 $17,465 $17,664 $11,683 $25,281 $33,357 $33,906 $59,308 $28,000 $10,924 $181,112 $20,648 $15,308 $2,418 $16,032 $14,839 $71,881 $192,674 $65,000 $3,002 $2,476 $155,258 $13,529 $34,589 $500,578 $31,459 $22,880 AUDITED FINANCIAL REPORT Sale of Livestock Sundry Revenue – TV Sale of Aggregate Sale of Stones Sale of Marl Sale of Boulders Repayment of loans to small farmers Sale of Land Loans – Various Financial Institution $1,920 $734,827 $64 $19,430 - - $2,835 $1,929,885 - $9,422 $784,246 $10,327 $53,078 11,839 $4,324 $9,061 $3,074,157 $124,411,304 $7,502 $49,419 $10,263 $33,648 $11,839 $4,324 $6,226 $1,144,272 $124,411,304 6.2 For the year under review, no detailed Statement of Revenue by Ministries was presented to the Director of Audit for review.
The Consolidated Statement of Revenue reflected the combined collection of Revenue under specific categories.

In line with our audit approach, a variance analysis was performed on the revenue figures generated by three specific departments [Inland Revenue, Customs and the General Post Office with the amounts represented on the financial statements.
6.3 Based on this analysis, the following amounts represent large differences between the totals shown on the actual statement from the Treasury Department and the actual totals obtained from the Revenue Departments.
Income Tax Companies Contribution to Stabilization Fund Property Tax Travel Tax Money Transfer Levy Passenger Facility Charge Banking & Insurance Licenses Telecommunication Licenses fees Casino Licenses Motor Vehicle Licenses Other Miscellaneous Licenses Entertainment Tax & Arrears Stamp Duties Insurance Levy Business Tax Other Licenses & Fees Antigua & Barbuda Sales Tax Bulk Postage Rental of Letter Boxes Transit Receipt Philatelic Sales 44 | P a g e Revenue Department $ 34,690,796.80 39,572,658.10 16,996,941.97 5,717,155.34 1,528,240.10 15,793,177.50 690,500.00 342,691.40 453,500.00 1,226,951.04 436,231.40 2,381,872.44 37,443,517.02 3,364,103.08 63,000.00 504,828.93 99,371,976.48 166,705.42 453,627.50 76,498.77 39,440 Financial Statement $ 40,347,719 37,615,968 17,334,672 5,804,827 1,629,286 430,988 870,500 356,672 335,000 1,361,346 47,847 676,294 39,298,859 4,023,365 567,839 209,709,980 154,262 383,788 58,296 26,440 Difference $ $5,656,922.20 $(1,956,690.10) 337,730.03 87,671.66 101,045.90 (15,362,189.50) 180,000.00 13,980.60 (118,500.00) 134,394.96 (388,384.40) (1,705,578.44) 1,855,341.98 659,261.92 (63,000.00) 63,010.07 110,338,003.52 (12,443.42) (69,839.50) (18,202.77) (13,000.00) AUDITED FINANCIAL REPORT Receipts from Postal Meters Sale of Stamps Import Duties Export Duties Embarkation Tax Cruise Passenger Tax Environmental Tax/Levy Revenue Recovery Tax Consumption Tax Customs Service Tax Throughput Levy on fuel Products Liquor Licenses Customs Handling Charges Customs Officer Fees Fines & Penalties/Forfeitures Totals (41,341.80) (132,069.28) 8,631,899.02 434,331.39 (156,646.46) (5,546,369.62) 96,146.36 6,173,831.52 (745,243.60) (46,542.78) 501,819.06 43,860.00 16,939.65 44,795.09 743,887.08 109,738,830.34 Information received indicates that although payments are made directly into the various bank accounts, the deposit slips along with a copy of the revenue statements are presented to the Treasury for their records.
It is therefore quite mind-boggling that we see the wide gaps in the figures presented by the revenue departments for the year under review and those presented in the Trial Balance and the Financial Statements received from the office of the Accountant General.

From all indication, it can be clearly stated that there appears to be no form of reconciliation being done between the Revenue Department and the Treasury during the year to identify and correct data obtained.
Based on the information presented above, it is clear 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 Comparative Statement of Actual and Estimated Revenue is not fairly stated.
Statement of Expenditure A comparative statement of Actual and Estimated Expenditure for the financial year was not presented for review, however, information taken from the budget estimate and the consolidated statement of revenue and expenditure for the financial year 2012, showed a recurrent budget of $752,591,253 while the actual expenditure was $774,720,645.
The estimated amount for capital expenditure for the financial year according to the budget estimate was $74,514,429 whereas the actual capital expenditure was reported as $20,039,517.

6.4 7 7.1 7.2 45 | P a g e AUDITED FINANCIAL REPORT 7.3 7.4 Based on our calculations, the materiality figure was set at $2,324,162 and above for the examination of expenditure vouchers.
The relevant vouchers were physically examined and compared with the information provided by the Treasury Department through its Financial System – Freebalance.

During our audit examination exercise we were unable to evaluate the internal controls of the Freebalance system since we were not given full viewing access of the system.

This therefore contributed to our decision to set our risk assessment level and our level of reliability on the system as high.
The previous year’s report revealed that a large percentage of vouchers were created and approved by the same officer at the Treasury Department.

For this year we were informed that this practice has been discontinued, however, we were unable to ascertain the authenticity of this claim due to our limited access to the System.

7.5 During our audit examination we realized that a significant amount of transactions were misallocated to the Public Debt head.
These represented payments for Child Maintenance, Arrears-Risk Allowance, Arrears of Computers and Medical which resulted in an amount of $1,432,563.37.

7.6 7.7 7.8 Additionally, it was observed that vouchers were approved for payment in 2009 but was paid in 2012, however, the total of $1,393,962.50, which represent the collective amounts of the sample vouchers, were not reflected in the 2012 General Ledger.

For the year 2012, approximately 35% of the expenditure vouchers were examined.
The exercise did not reveal any expenditure vouchers with a value of $2,000,000 or more.

This does not indicate that there weren’t any vouchers created with that value, since an extraction of the total amount of vouchers with the set materiality value and above was not presented for our examination.

This therefore means that we could not indicate what percentage of transactions was above the materiality.
It was observed that vouchers were posted under the incorrect Department Head and also vouchers were seen that were created in 2009, stamped as paid in 2012 but were not reflected in the Freebalance system.

Additionally, from the sample vouchers examined we found that in respect to the description quoted discrepancies existed in more than 10% of the vouchers.
In light of the above, we are of the opinion that the information presented in the Consolidated Statement of Revenue and Expenditure is not fairly stated.

This is evident based on the fact that of the thirty five percent (35%) transactions reviewed in Freebalance, our findings revealed that there were discrepancies with at least forty percent (40%) of this amount.
46 | P a g e AUDITED FINANCIAL REPORT Supplementary Provisions 7.9 During the financial year ending 31st December 2012 a total of three hundred (300) special warrants were issued in respect of supplements amounting to $51,324,305.08.
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 purpose is insufficient or that a need has arisen for expenditure for a purpose to which no amount has been appropriated by that Act, whether or not a special warrant has been issued” _ (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.” 7.10 Based on the aforementioned, no Supplementary Appropriation for Special Warrants, amounting to $51,324,305.08 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.

7.11 During 2012, a total of five hundred and fifty-four (554) virement warrants were approved by the Ministry of Finance.

These warrants were used to transfer approved funds of $18,830,834.30 from one programme head to another within the Ministry or Department.
Surplus/Deficit for the Year under review 7.12 A review of the statements indicate that the consolidated statements of the revenue and expenditure for the year ended 31st December 2012 showed a deficit of $(15,071,299).

This figure, as it is represented in the financial statement, does not present the true financial picture of the accounts for the Government of Antigua and Barbuda, therefore the balance is not fairly presented.

8.
8.

Statements of Actual and Estimated Revenue 8.1 A Consolidated Statement showing the Actual and Estimated Revenue & Expenditure figures for 2011/ 2012 was prepared for the year under review.

Based on this statement, 47 | P a g e AUDITED FINANCIAL REPORT we observed that there was a general decline of 99% revenue collected from the previous financial year.

Additionally, during that same period, there was also a decrease of 98% in expenditure.

9.
9.

Statement of Special Fund 9.1 The Statement of Special Funds/Special Account as at 31st December 2012 showed a balance of EC$30,572,616.64.
This amount represents the following: Description Administrator of Unrepresented Estates Administrator of Unrepresented Estates (Reserve Fund) Licensed Banks Statutory Deposits Reserve A/C Financial Institutions Savings Bank Fund Statutory Deposits – Insurance Companies Stabilization Fund – Income Tax Antigua Surplus Fund Crown Agents – JCF Total Amount $181,458.80 $4,767.31 $11,633,094.67 $4,025,256.39 $3,985,000.12 $6,908,297.45 $3,812,872.72 $1,286,930.06 $(1,265,060.88) $30,572,616.64 9.2 As stated once again in the note from the Accountant General: “Special Funds/Special Accounts Opening Balances to be adjusted on the completion of the 2009 Financial Statements.” 9.3 This is clearly an indication that the Special Funds/Special Accounts consist of amounts for the financial year 2012 only and does not reflect the cumulative balance of the fund.
In my opinion, the aforementioned total represents fairly the balance in the Special Fund/Account for the financial year 2012 but does not represent the true picture of the Fund.

Therefore the statement is not fairly stated.

10 Statement of Deposit 10.1 As at 31st December, 2012 the Statement of Deposit Funds reported a balance of $35,206,025.

This amount represents net flows for the financial year 2012 and did not take into account the closing balances for the financial years 2009 to 2011.
We can therefore conclude that the Statement of Deposits as at December 31, 2012 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: 48 | P a g e AUDITED FINANCIAL REPORT “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 balances that have been inactive for more than five (5) years are outlined in paragraph 18.1 - Table 1.
These inactive balances represent un-reconciled totals by Ministries /Departments with the Accountant General.

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

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 For the period under review, the Public Debt (domestic and external) was reported as $2,179,448,437; an increase of $ 59,817,533 from the amount given for the financial year 2011.

11.2 Domestic debt servicing for the year under review amounted to $154,429,302.

11.3 The following table highlights the interest and principal payments made in 2012 on the Government of Antigua and Barbuda debt stock.
Domestic Debt Stock External Debt Stock Total Interest and Principal Payments Interest Payment $57,434,414 $11,021,961.93 $68,456,375.93 Principal Payment $96,994,888 $154,429,302 Totals $15,199,598.31 $26,221,560.24 $112,194,486.31 $180,650,862.24 11.4 During the period ending 31st December, 2012; the external principal and interest arrears amounted to $40,831,086.39 and $19,447,287.23 respectively.
The domestic principal and interest arrears for the period under review amounted to $1,515,388 and $365,409 respectively.

11.5 Based on information presented above, it was determined that the Government of Antigua and Barbuda paid $180,650,862.24 in interest and principal payments for the financial year 2012.
The principal and interest arrears on the debt stock of $62,159,170.62 is quite significant and represent approximately thirty four point four 49 | P a g e AUDITED FINANCIAL REPORT percent (34.4%) of the total amount paid towards Public Debt during the financial year 2012.
This continues to create a huge indebtedness for the country, but we are satisfied with the information presented in the financial statement on the Government of Antigua and Barbuda debt stocks and can reasonably state that they are fairly presented.

12.

Statement of Contingent Liabilities 12.1 Contingent Liabilities as at December 31, 2012 was reported as $336,330,000.

The amount of $68,667,000 comprises Domestic principle and interest amounts which were not disclosed.
12.2 For the financial year ending 31st December, 2012 the total Contingent Liabilities quoted above, represents loan guarantees primarily to Statutory Bodies.

During this period there were twenty nine (29) loan accounts guaranteed by the Government of Antigua and Barbuda for ten (10) Statutory Bodies.

12.3 Comparatively, the records indicate that there was a reduction in the total amount reported for 2010, 2011 and 2012 of $58,700,000.
The principal and interest payments were remarkably higher in respect of the domestic loans.

This would indicate that over the years servicing of loans were not in accordance with the loan agreement, thus the high level of arrears.

12.4 As with the previous year, the Accountant General did not submit any pending or threatened litigations against the Government for the financial year 2012.
Request to obtain information from the Office of the Attorney General was made and it was revealed that during this financial year; there were three (3) cases that were adjudicated, resulting in judgment of $30,500.

12.5 Since we were not able to verify the significance of the suspected amount, it can be concluded that the Statement of Contingent Liabilities is not fairly presented.
12.6 Once again, it is recommended that for future reporting requirements, pending and threatened litigations against the Government are included in the financial statements.

13.

Statement of Advances 13.1 The table below shows Advances – Other Government, which represents payments or receipt of Pension and Gratuity from other Governments as at 31st December 2012.

13.2 The amounts in Table 1 represent the balances for the financial years 2012, 2011 and 2010.
This gives a clearer picture of the current standing of the Government’s liabilities to the various countries, as well as the assets expected from the said countries.

13.3 There has not been any indication of a reduction in the outstanding balances over the three year span represented below in the table.
50 | P a g e AUDITED FINANCIAL REPORT Table 1 Countries / Government Anguilla Barbados British Virgin Island Dominica Grenada Montserrat St Kitts St Lucia St Vincent Trinidad & Tobago Jamaica Totals Balance as at 31.
12.2012 Balance as at 31.12.2011 Balances as at 31.12.2010 281,744.39 315,044.11 490,115.46 (139,525.02) 24,623.07 633,854.02 1,968,328.43 (1,109,497.14) 155,243.51 (283,604.88) (122,242.41) 2,214,083.54 $2,100.00 $51,512.33 $38,568.41 $7,140.00 ($24,413.71) $58,183.41 $118,640.59 $7,876.96 $7,140.00 ($20,425.44) $1,050.00 $51,512.33 $19,549.37 $3,570.00 ($24,413.71) $35,819.31 $80,554.57 $4,306.96 $3,570.00 ($20,425.44) $246,322.55 $155,093.39 13.4 Additionally, for the period under review, we were not provided with a reconciliation statement of these accounts in respect of pensions paid on behalf of the eleven (11) countries listed above or of amounts reimbursed from any country.
No confirmation letters were sent out to the various countries; therefore we were unable to verify the year- end balances.
13.5 The Finance and Administration Act, 2006 Part V, Division 2 Section 35 (1) (f) states that: (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.” 13.6 Government employees continue to benefit from this section in which personal loans under the following categories namely medical treatment, funeral expenses, education expenses, purchase of vehicles and domestic expenses are granted to them.
Such advances should be repaid monthly with a 1% interest charged on the reducing balance.

13.7 Outlined below in Table 2 is the list of personal advances granted to civil servants during the financial year ended 31st December, 2012.

Advances to the approximate value of 51 | P a g e AUDITED FINANCIAL REPORT $2,387,819.00 were reportedly issued during 2012 and interest on these personal loans at the end of the financial year was reported as $316,625.53.
Table 2 Personal Advances – Advances Issued in 2012 – Medical Domestic Vehicle Totals $967,019.00 $1,284,800.00 $136,000.00 $2,387,819.00 Payment made on Advances during 2012 $1,407,664.75 $9,891,765.14 $430,896.73 $11,730,326.62 Balance as at 31.12.2012 $440,645.75 $8,606,965.14 $294,896.73 $9,342,507.62 13.8 For the period under review, no reconciliation statement or a breakdown of the individual accounts were presented.
We were therefore unable to ascertain the level of delinquent accounts and their value.

Notwithstanding the foregoing information, I am reasonably assured that the statement of advances for public servants is fairly presented.

14.

Statement of Investment 14.1 No Statement of Investment for the Government of Antigua and Barbuda was presented as at the date of this report.
This is in breach of the Financial and Administration Act, 2006 Part IX Section 56 subsection 4(f), which states that: (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 The Office of the Director of Audit is cognizant of the fact that the Government of Antigua and Barbuda has investments in local and regional companies.
The Government has shares in the Leeward Island Air Transport (LIAT) Limited and the West Indies Oil Company (WIOC) Limited; therefore, it is quite relevant that the 2012 annual financial statements have a material deficiency.

14.3 I am once again recommending that the Accountant General ensure that all Government investments be supported by the required documented evidence.

15.
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 was presented as outlined in the Finance and Administration Act, 2006 Part IX Section 56 subsection 4(l).

The Audit Department has recognized that over the last decade the Permanent Secretaries 52 | P a g e AUDITED FINANCIAL REPORT and Heads of Departments have not submitted statements of losses of cash and stores to the Accountant General.
15.2 From all accounts, there has been no documented evidence to indicate that the responsible Ministries/Departments are actively investigating cases with a reasonable conclusion.

15.3 Therefore, based on the above statement, the presentation of the 2012 public accounts are incomplete.

16.

Bank Reconciliation 16.1 For the financial year 2012 we received information on forty six (46) bank accounts.
Of this amount, no reconciliation information was provided that indicates the difference between the bank and book balances for thirteen (13) of the accounts and five (5) indicated that they were closed.

The total amount of 46 bank accounts is also inclusive of the fixed accounts.

16.2 From our calculation we were able to affix a value of ($4,714,765.22) to the thirteen (13) un-reconciled bank accounts.

These account reflected closing balances as at 31st December, 2012.
16.3 Of the total number of Bank accounts examined, it was observed that as at 31st December 2012 nine (9) of total of ($26,058,660.88).

It was also observed that some of the book balances reflected a significant difference to that of the bank balances, which would indicate that limited or no reconciliation was carried out on the accounts.
the accounts were overdrawn and represented a 16.4 We can therefore conclude that the bank reconciliation process was not adequately completed based entirely on our sample.

This process has indicated a material effect on the financial statements; therefore an opinion cannot be given.

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 2012 were basically the same as of the previous year.
There are still areas that can be further developed to give the stakeholders greater insight into the circumstances leading up to the preparation and submission of the finances.

Many areas might in fact improve on the presentation and content of the statements and aid in my office’s role of determining what opinion to give on the finances.
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 53 | P a g e AUDITED FINANCIAL REPORT responsibility of the Accountant General to list and outline the basis of preparation and summary of significant accounting policies of the financial statements.

17.3 More detail is still required to strengthen my reliance on the financial notes presented especially where it relates to determining the use of judgment and the interpretation or amendments used.
17.4 Based on the preceding paragraphs, it is my opinion that more in-depth notes to the 2012 Financial Statements are a necessity to guarantee my reliance on the Financial Statements presented.

18.

Unauthorised 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 previously mentioned in my 2010 report, 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 table 1 below.
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 12,754,671.58 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 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 54 | P a g e AUDITED FINANCIAL REPORT Nil 7,917,253.34 (5,262.23) Nil Nil Development Aid (CD&W) Other Special Funds 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 88,364,382.76 2,806,892.78 *1,059,889.69 *17,041,808.69 *3,976,147.48 *(9,351.64) *52,144,175.28 1,059,889.69 9,124,555.65 3,970,885.25 (9,351.64) 52,144,175.28 *300,094,358.00 302,901,250.78 971,703.98 1,330,330,802.30 Nil 1,306,770,131.67 18.3 In light of the information represented in the table above, the 2012 Annual Accounts presented by the Accountant General does not represent a 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.

Status of Statutory Bodies Financial Statements and Audits Analysis of Status 19.1 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.
19.2 In May of 2014, letters were sent to these statutory bodies requesting the submission of their last two (2) years of audited financial statements.

The result of our review indicates that while several statutory bodies have current audited financial statements and must be commended, others do not.
Our analysis indicates that twenty eight (28) statutory bodies were contacted:-  Eleven (11) presented audited financial statements  Six (6) presented unaudited financial statements  Eleven (11) did not respond to the request 19.3 These results should be of concern to Parliament as well as other stakeholders of this country since many of these statutory bodies receive sizable subventions from the government.
The audited annual financial statements provide the assurance that this funding was used as intended.

Additionally, up to date financial statements are required to enlighten the government of any contingent liabilities that statutory bodies have incurred which is a potential liability to the government.

55 | P a g e AUDITED FINANCIAL REPORT 19.4 It is my recommendation that all statutory bodies take the necessary action to have their financial statements audited and up to date by December 31, 2014.
Additionally, those bodies that did not receive favorable audit opinions should formulate an action plan to correct identified accounting and financial reporting deficiencies as quickly as possible.

19.5 The Government of Antigua and Barbuda is actively working towards bringing the Public Accounts up to date, therefore, the statutory bodies are encouraged to do likewise.
This can only be achieved when the House of Representatives and the general public hold these bodies accountable for the disclosure of their financial positions and the presentation of audited accounts.

56 | P a g e AUDITED FINANCIAL REPORT SCHEDULE OF APPENDICES APPENDIX A TREASURY FUND Authorities for Expenditure 1.

Provisional (Appropriation Warrant) Issued by the Minister of Finance on the 6th January, 2012.

2.

Estimates Passed by the House of Representatives 16th December, 2011.
Passed by the Senate on the 21st December, 2011.

Assented to by the Governor General on the 6th January, 2012 3.

Appropriation Act (No.

18 of 2011) Passed by the House of Representatives 16th December, 2012.

Passed by the Senate on the 21st December, 2012.

Assented to by the Governor General on the 6th January, 2012 4.

Appropriation Warrant Issued by the Minister of Finance on the 6th January, 2012 5.
Supplementary Appropriation Act, 2013 not approved 57 | P a g e AUDITED FINANCIAL REPORT APPENDIX B Unauthorized excess expenditure for the last six (6) years Year Amounts not covered by Supplementary Appropriation ($) 2006 Recurrent Expenditure 53,241,215.93 2007 Recurrent Expenditure 174,108,881.07 2008 Recurrent Expenditure 198,238,936.39 2009 Recurrent Expenditure no information given 2010 Recurrent Expenditure 64,802,691.00 2011 Recurrent Expenditure 34,095,873.00 58 | P a g e AUDITED FINANCIAL REPORT APPENDIX C DEVELOPMENT FUND Authorities for Expenditure 1.
Provisional (Appropriation Warrant) Issued by the Minister of Finance on the 1st January, 2012.

2.

Estimates Passed by the House of Representatives 16th December, 2011.

Passed by the Senate on the 21st December, 2011.

Assented to by the Governor General on the 6th January, 2012 3.

Appropriation Act (No.

18 of 2011) Passed by the House of Representatives 16th December, 2011.

Passed by the Senate on the 21st December, 2011.

Assented to by the Governor General on the 6th January, 2012 4.
Appropriation Warrant Issued by the Minister of Finance on the 6th January, 2012 5.

Supplementary Appropriation of 2013 not approved 59 | P a g e AUDITED FINANCIAL REPORT APPENDIX D Unauthorized excess expenditure not covered by Supplementary Appropriation for the last six (6) years.
Year Not covered by Supplementary Appropriation ($) 2006 Development Fund 7,549,894.28 2007 Development Fund 10,245,677.31 2008 Development Fund N/A 2009 Development Fund No information presented 2010 Development Fund 27,592,100.00 2011 Development Fund 1,901,983.00 60 | P a g e AUDITED FINANCIAL REPORT APPENDIX E UNAUTHORIZED RECURRENT AND CAPITAL EXPENDITURE HEAD / SUBHEAD GROSS EXCESS $ TOTAL $ 01 Governor General 390326 Custodial Services 30202 Wages 30301 Duty Allowance 30304 Housing Allowance 30711 Allowance to Deputy Governor General 31102 Food, Water & Refreshments 32001 Medals, Stationary, Seals & Gifts 02 Legislature 390366 Parliamentary Process 30203 Overtime 31601 Office Supplies 03 Cabinet 390302 Activities of State 30201 Salaries 30401 Duty Allowance 30405 Entertainment Allowance 30406 Travelling Allowance 0302 Cabinet Secretariat 390366 Parliamentary Process 34406 Funeral Expenses 04 Judicial 51,116.00 6,000.00 18,835.48 16,000.00 48,680.00 60,000.00 30,000.00 2,000.00 53,299.00 43,000.00 29,800.00 6,000.00 7,829.00 181,951.48 55,299.00 137,103.00 223,729.00 290353 Judiciary 33907 Contribution Administrative Expense – Caribbean Supreme Court 109,912.00 10,593.00 120,505.00 06 Audit 350690 Purchase of Minor Capital Item 40202 Purchase of Computer Software & Hardware 09 Electoral Commission 390690 Purchase of Minor Capital Item 61 | P a g e 3,600.00 3,600.00 AUDITED FINANCIAL REPORT 40202 Purchase of Capital Software & Hardware 364,000.00 390366 Parliamentary Process 30201 Salaries 30406 Travelling Allowance 39034 Expenses of Boards & Committees 35,000.00 16,000.00 66,000.00 390428 Registration Services 30201 Salaries 10 Prime Minister’s Office 390510 Ancillary Services 31001 Subsistence Allowance 31002 Ticket Expenses 37011 Grants to Individuals 1002 External/Foreign Affairs 283690 Purchase of Minor Capital 40203 Purchase of Office Equipment 283510 Ancillary Services 33902 Contribution & Subscription to Commonwealth Agencies 1006 Public Information & Broadcasting 410380 Public Broadcasting Services 30802 Compensation and Indemnities 30201 Salaries 30208 Severance pay 30401 Duty Allowance 30405 Entertainment Allowance 30406 Travelling Allowance 410656 40317 Purchase of telecommunications and broadcasting equipments 1011 O.N.D.C.P 290509 Monitoring, Regulations & Enforcement 33508 Household Sundries 15 Finance Headquarters 390510 Ancillary Services 30103 Overtime 62 | P a g e 60,000.00 541,000.00 950,000.00 250,000.00 250,000.00 450,000.00 5,055.75 290,709.00 139,000.00 434,764.75 50,000.00 115,000.00 11,000.00 20,000.00 12,500.00 17,500.00 500,000.00 726,000.00 2,250.00 2,250.00 3,000.00 AUDITED FINANCIAL REPORT 30203 Overtime 30701 Honorarium 30704 Medical treatment 37011 Grants to Individuals 37012 Grants to Organizations & Institutions 5,000.00 20,343.00 4,150.00 250,000.00 825,115.00 450,000.00 37014 Grants to Municipalities 700,000.00 2,257,608.00 1503 Inland Revenue 900690 30101 Salaries 40310 Purchase of Equipment n.e.c.
900439 Revenue Collection Services 30301 Duty Allowance 30306 Travelling Allowance 900510 Ancillary Services 30202 Wages 1505 Customs & Excise 900439 Revenue Collection Services 30103 Overtime 355,493.00 129,922.00 27,200.00 57,000.00 76,160.00 55,000.00 1,330,194.00 700,775.00 33403 Computer Software Licensing & 124,853.00 1,455,047.00 renewal 1507 Economic Policy & Planning 900441 Economic Policy, Planning & Development 30301 Duty Allowance 1509 Trade &Economic Development 280408 Trade & Investment Promotion 30802 Compensation and Indemnities 21,000.00 21,000.00 107,036.70 107,036.70 63 | P a g e AUDITED FINANCIAL REPORT 1513 Establishment Division 390344 Human Resource Management 30301 Duty Allowance 31001 Subsistence Allowance 31002 Ticket Expenses 2001 Agriculture Headquarters 300510 Ancillary Services 30101 Salaries 31303 Books & Periodicals 30716 Uniform Allowance 33001 Advertising & Promotion Costs 34109 Rent or lease n.e.c 31102 Food, Water & Refreshments 31804 Production Expenses 300508 Special Events & Activities 31102 Food, Water & refreshment 30,100.00 60,000.00 270,105.00 41,557.00 2,243.00 73,000.00 25,000.00 100,000.00 160,000.00 75,000.00 380,378.00 41,491.00 401,762.00 300369 Policy, Planning & Implementation 37012 Grants to Organizations & Institutions 32,234.00 889,346.00 2002 Agriculture Division 300301 Accounting 30406 Travelling Allowance 30106 Arrears of Salaries 30713 Payment in lieu of vacation leave 37015 Grants to Statutory Bodies & Corporations 2006 Lands Division 250354 Land Distribution management 30101 Salaries 30306 Traveling Allowance 30701 Honorarium 300626 Land Development 40515 Purchase of Utilities Infrastructure 2007 Agriculture Extension Division 309301 Accounting 30101 Salaries 64 | P a g e 3,027.00 40,000.00 7,452.00 300,000.00 41,689.00 8,313.00 300,000.00 8,002.00 10,440.00 400,481.00 300,000.00 618,442.00 84,786.00 AUDITED FINANCIAL REPORT 309472 Teaching, Training & Development 30101 Salaries 309354 Land Distribution management 30202 Wages 30207 Arrears of Wages
 28,538.00 27,305.00 6,752.00 147,381.00 2011 Environment Division 502334 Environmental Legislation & Monitoring 30709 Stipend 2012 Development Control Authority 250447 Building Regulation 30201 Salaries 30206 Arrears of salaries 30401 Duty Allowance 30404 Housing Allowance 30405 Entertainment Allowance 30406 Travelling Allowance 250510 Ancillary Services 30201 Salaries 30206 Arrears of salaries 31902 Spare Parts 2501 Health Headquarters 264518 40101 Purchase of vehicles 40202 Purchase of computer software and/or hardware 264460 30701 Honorarium 21,800.00 21,800.00 167,748.00 29,784.00 8,223.00 93,900.00 8,000.00 4,000.00 2,400.00 12,920.00 17,316.00 93,900.00 15,000.00 90,000.00 90,000.00 24,000.00 453,191.00 264690 40203 Purchase of office equipments 25,000.00 229,000.00 2502 Medical General Division 261316 Community Health Services 30101 Salaries 30713 Payment in lieu of vacation leave 384,000.00 9,500.00 65 | P a g e AUDITED FINANCIAL REPORT 30716 Uniform allowance 1,000,000.00 1,393,500.00 2503 Central Board of Health 266501 National Beautification 33502 Garbage Disposal Costs 266382 30802 Compensation and indemnities 266420 30202 Wages 30203 Overtime 2513 430317 30201 Salaries 30401 Duty allowance 30406 Travelling allowance 2515 Community Development Division 430318 Project Development 30203 Overtime 2517 433395 30202 Wages 3001 Education Headquarters 273472 30201 Salaries 30202 Wages 30401 Duty allowance 30406 Travelling allowance 270344 Human Resource Management 30713 Payment in lieu of vacation leave 270301 Accounting 30201 Salaries 30206 Arrears of Salaries 66 | P a g e 7,000,000.00 4,000,000.00 3,711.00 207,011.00 700,000.00 7,120.00 4,000.00 4,000.00 11,925,842.00 500.00 500.00 152,000.00 152,000.00 11,578.00 1,463,617.00 211,503.00 3,500.00 28,908.00 9,550.00 3,288.00 3,288.00 1,735,232.00 AUDITED FINANCIAL REPORT 3002 Administration of Education Services Adm. Unit 274344 Human Resource Management 30201 Salaries 30202 Wages 37034 Expenses of board and
 committees 3003 Primary Education Division 271344 Human Resource Management 30202 Wages 3005 State College 273498 Janitorial Services 30202 Wages 273402 Tertiary Education Services 30101 Salaries 273344 Human Resource 30101 Security Services 30202 Wages 3007 Antigua Archives 270490 Archiving 30202 Wages 3008 ABICE 275413 Vocational Training 30201 Salaries 3009 Boys Training School 430415 Youth Development Services 30709 30101 Salaries 30306 Travelling Allowance 67 | P a g e AUDITED FINANCIAL REPORT 3010 Youth Affairs 430344 Human Resource 30101 Salaries 3011 Sports 20,344.00 20,344.00 430396 National Sports Administration 33003 Public awareness expense 33604 Air freight expense 66,177.00 16,000.00 82,177.00 3013 Local Government 430317 Community Services & Planning 30202 Wages 4001 Public Works & Transportation Headquarters 255714 Outfitting of Government Offices 40201 Purchase of Office Furnishings 4002 Works Division 251630 Construction or Major Upgrade of Road, Street & Drains 41202 Purchase of Construction Supplies & Equip.
41204 Material Costs 255387 Repairs & Maintenance Services 30416 Risk Allowance 33203 Insurance – Motor Vehicles 251387 Repairs & Maintenance Services 34104 Rental or Lease - Vehicle 253665 Upgrade of the Traffic Management System 41204 Material Costs 5,412.00 5,412.00 101,365.92 101,365.92 350,000.00 162,340.20 947,700.00 729,000.00 122,900.00 1,448,700.00 200,000.00 65,757.00 65,757.00 4,092,154.00 4004 Equipment Maintenance & Funding Scheme 253387 Repairs & Maintenance Services 30416 Risk Allowance 414,000.00 414,000.00 5501 Attorney General & Legal Affairs HQ 291510 Ancillary Services 33508 Household Sundries 34009 Commitment Fees 115,460.00 634,285.00 425,426.00 1,739.00 68 | P a g e AUDITED FINANCIAL REPORT 33901 Contribution & Subscription to Caribbean Organizations 140103 11004 5502 Office of the Director of Public Prosecutions 390353 Judiciary 30101 Salaries 30301 Duty Allowance 30304 Housing Allowance 30310 Allowance in Lieu of Private Practice 5503 Printing Office 330375 Printing Services 30306 Travelling Allowance 30701 Honorarium 31102 Food, water and refreshments 31601 Office Supplies 33508 Household Sundries 5505 Industrial Court 390348 Industrial Dispute Services 30101 Salaries 5506 Registrar & Provost Marshall 390353 Judiciary 30201 Salaries 30307 Mileage Allowance 30716 Uniform Allowance 31102 Food, water & refreshments 31601 Office Supplies 31602 Computer Supplies 33604 Air Freight Expenses 5507 Magistrates Court 291353 Judiciary 30406 Travelling Allowance 69 | P a g e AUDITED FINANCIAL REPORT 30401 Duty allowance 30201 Salaries 291301 Accounting 30314 On-call Allowance 291353 Judiciary 30304 Housing Allowance 30306 Travelling Allowance 30310 Allowance in lieu of Private Practice 5508 Legal Aid & Advice Centre 290450 Legal Aid & Advice 30304 Housing Allowance 30310 Allowance in lieu of Private Practice 5509 Intellectual Property 291379 Public Awareness 30101 Salaries 6001 Office of the Ombudsman 390690 40312 Purchase of kitchen equipments 7002 Police 290352 Intelligence Gathering 30301 Duty Allowance 290358 Law Enforcement 30713 Payment in lieu of Vacation Leave | P a g e AUDITED FINANCIAL REPORT 31004 Leave Passage Grant 34406 Funeral Expenses 33102 Arms & Ammunition 30802 Compensation & Indemnities 30716 Uniform Allowance 33705 Course Costs & Fees 34010 Legal Fees 30704 Medical Treatment 33508 Household Sundries 36101 Repair or maintenance of vehicles 33206 Insurance – n.e.c.
290498 Janitorial Services 30202 Wages 7004 Fire Brigade 290337 Fire Protection Services 30101 Salaries 30713 Payment in lieu of vacation leave 36101 Repair or maintenance of vehicles 7006 Military 290510 Ancillary Services 33206 Insurance – n.e.c.
17,632.00 22,305.00 24,975.00 33,122.00 4,941.00 2,050.00 4,245.00 9,881.40 67,000.00 167,300,00 104,684.00 206,000.00 98,000.00 50,000.00 70,520.00 2,300.00 75,100.00 39,000.00 24,279.00 339,108.00 923,040.00 163,800.00 50,000.00 88,000.00 613,249.09 250,245.40 736,883.00 1,563,948.00 290327 National Defence 30425 Voluntary Unattached & Reserved Personnel 96,000.00 709,249.09 7010 Labour 392509 Monitoring & Enforcement 30716 Uniform Allowance 8001 Tourism & Civil Aviation Headquarters 71 | P a g e 6,000.00 6,000.00 AUDITED FINANCIAL REPORT 500510 Ancillary Services 30103 Overtime 30713 Payment in lieu of vacation leave 500451 Sports Tourism 30201 Salaries 500324 Cultural Development Services 30206 Arrears of Salaries 500405 Tourism Promotion & Marketing 33002 Marketing Costs 33003 Public Awareness Expenses 15,000.00 7,563.68 36,000.00 2,400.00 50,000.00 50,000.00 160,963.68 8008 Civil Aviation 390510 Ancillary Services 30203 Overtime 30103 Overtime 30801 Gratuities & Terminal Grants 37015 Grants to Statutory Bodies & Corporations 750.00 8,000.00 101,879.93 7,369,946.00 7,480,575.93 7,641,539.61 72 | P a g e AUDITED FINANCIAL REPORT APPENDIX (F) AUDIT OF MINISTRIES/DEPARTMENT DURING THE FINANCIAL YEAR 2012 No.
Entity 1.

Examination of the High Commission (March 2011) 2.

Examination of Property Valuation October 2010 – February 2012 Date of Issue 08.02.12 18.06.12 3.

Examination of Accounts for Toronto 21.08.12 4.

Examination of the Consulate General for 10.09.12 New York Summary - Misappropriation of $26,143.40 - Poor supervision of staff - Need for the implementation of a policy and procedure manual 5.
Examination of Cash Records and 25.09.12 Encouraged to continue be guided Counterfoil Receipt Books of the St. John's Police Station - January - December 2011 by the Finance Administration Act/Regulations 6.

Examination of the Tourism Office in Germany 2010 - September 2011 03.10.12 7.

Examination of the High Commission - 03.10.12 London 2011 8.

Examination of the Barbuda Council 2009 18.10.12 – 2010 9.

Examination of the Antigua and Barbuda 18.10.12 Development Corporation 2009 – 2011 10.
Examination of Cash Records of the Inland Revenue Department October 2010 – February 2012 11.

Examination of the High Commission 23.10.12 19.11.12 London 2011 - Non- compliance with the Financial Laws & Regulations - Increase awareness of the ADC Act.
- Introduction of an inventory control system Poor supervision of staff 73 | P a g e AUDITED FINANCIAL REPORT APPENDIX (G) Status of Statutory Bodies, / Agencies Financial Statements and Audits as at December 31, 2013 Statutory Body Auditor Most recent Audited Report 31st December, 2011 Unaudited Type of Audit Opinion i Concord Business Associates Chartered Accountants 30th April, 2011 30th April, 2012 30th April, 2013 December 31, 2008 Qualified Allen, Thomas & Associates 31st December, 2012 31st December 2013 31st December, 2011 31st December, 2013 PKF Concord Business Associates Chartered Accountants Unqualified Unqualified Qualified Unqualified KPMG 31st December, 2008 Qualified with exception F.A.C.T.S INC. Chartered Accountants 31st December, 2009 31st December, 2010 31st December, 2011 1.
Agricultural Development Corporation 2.

Antigua and Barbuda Investment Authority 3.

Antigua and Barbuda Airport Authority 4.

Antigua and Barbuda Department of Marine Services and Merchant Shipping 5.

Antigua and Barbuda Development Bank 6.

Antigua and Barbuda Hospitality Training Institute 7.

Antigua and Barbuda Medical Council 8.

Antigua and Barbuda National Parks 9.

Antigua and Barbuda Port Authority 10.


Antigua and Barbuda Social Security Fund 74 | P a g e 31st December,2006 31st December,2007 31st December,2008 31st December,2009 31st December,2010 Unqualified Unqualified Qualified with exception Qualified with exception Qualified with exception Qualified AUDITED FINANCIAL REPORT 31st December, 2011 31st December, 2012 11.

Antigua and Barbuda Tourism Authority KPMG 12.


Antigua and Barbuda Transport Board 31st December, 2011 31st December, 2012 31st December, 2008 31st December, 2009 31st December, 2011 13.

Antigua Carnival Committee /National Festivals Office 14.

Antigua Public Utilities Authority PKF 15.

Barbuda Council 16.

Board of Education - KPMG 1994 Concord Business Associates Chartered Accountants 17.

Central Housing and Planning Authority 18.

Central Marketing Corporation 19.

Development Control Authority 20.


Financial Services Regulatory Commission 21.

Free Trade Processing Zone 22.

LIAT 75 | P a g e PriceWaterhouse Coopers 31st December, 2011 31st December, 2011 Annual Returns no opinion given AUDITED FINANCIAL REPORT 23.

Medical Benefits Scheme 24.

Mount St .John’s Medical Centre Grant Thornton Chartered Accountants 25.

National Solid Waste Management Authority 26.

PDV Caribe Antigua and Barbuda Limited Allen, Thomas & Associates 27.
St. John’s Pier Group 31st December, 2011 31st December, 2011 31st August, 2011 31st August, 2012 28.

State Insurance Corporation PKF Chartered Accountants 31st December,2009 i Unqualified, qualified, adverse, or disclaimer.

Qualified Unqualified Unqualified Qualified 31st December,2003 31st December,2004 31st December,2005 31st December,2006 31st December,2007 31st December,2008 31st December,2009 76 | P a g e