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EXCELLENCE IN PUBLIC SECTOR AUDITING REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Volume 2 Audit Report on Government Ministries and Departments - 2013 EXCELLENCE IN PUBLIC SECTOR AUDITING REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Volume 2 Audit Ministries and Departments – 2013 on Government Report File: 102 30 September 2014 The Hon.
Dr. Jiko Luveni Speaker of the Parliament of the Republic of Fiji Parliament Fiji Dear Dr. Luveni AUDIT REPORT ON GOVERNMENT MINISTRIES AND DEPARTMENTS 2013 In accordance with section 152 (13) of the Constitution, I am pleased to transmit to you my report on the audit of Government Ministries and Departments of the Republic of Fiji for the year ended 31 December 2013.
A copy of the report has been submitted to the Minister for Finance who as required under section 152 (14) of the Constitution will lay the report before Parliament within 30 days of receipt, or if Parliament is not sitting, on the first day after the end of that period.
Tevita Bolanavanua AUDITOR-GENERAL FOREWORD This report covers the results of my audit of the Whole of Government (WOG) Financial Statements and the Annual Appropriation Statement for 2013 and its 38 ministries and departments in the 2013 Appropriation Decree.
The purposes of this report are to:     report on the audit of the WOG Financial Statements as at 31 December 2013, covered under volume 1 of the report; report on the audit of financial statements of ministries and departments as at 31 December 2013, covered under volume 2-4 of the report; report on the results of and matters arising from the 2013 audits of ministries and departments, also covered under volume 2-4; and raise others matters that warrant consideration by Parliament.
The WOG Financial Statements for 2013 have been presented in accordance with section 46 of the Financial Management Act and given the nature of Government’s quasi cash environment; the financial statements have been prepared on a modified accrual basis of accounting.

A qualified audit opinion was issued on the WOG Financial Statement for 2013.

Issues qualified are as follows:   inadequate systems of internal control over cash at bank which had an impact on cash at bank totaling $25.5 million.
accounts receivables balance of $18.7 million as at 31 December 2013 was not supported with reconciliations; and  no record was provided to validate $2.4 million relating to accountable advances for the Department of Agriculture as part of total prepayment and accrued income of $4.3 million as at 31 December 2013.
The attention of the Ministry of Finance was also drawn to:    term loan receivable of $58.4 million includes a negative balance of $12.7 million and NATCO loan balance of $1 million is yet to be regularized to equity following a Cabinet Decision in November 2009. trust fund account totaling $79.5 million includes various trust accounts with negative balances totaling $13.7 million contrary to the nature of the trust; inventory totaling $3.7 million includes Trading and Manufacturing Account (TMA) closing stock of finish goods of $1,058,578 that could not be validated as no independent stock take was carried out; and  various ministries and departments did not reconcile their respective expenditure with the Financial Management & Information System (FMIS) records.
All 35 ministries and departments appropriated in the 2013 Appropriation Decree submitted their draft agency financial statements for audit on time as required under section 70 (3).

Out of the agency financial statements audited, 18 were issued unqualified audit opinions while 17 were qualified.

Most issues qualified were the same as those highlighted in 2012 but at a lesser extent as some ministries and departments have shown much improvement.
There however remains a lot of work to improve the requirements of all stakeholders.

The result of matters arising from my audits of ministries and departments are covered under volumes 2-4 of the report.

The report for each ministry and department has 2 parts.

Part 1 discusses the audit of the financial statements and Part 2 discusses other matters arising from the audit.

Tevita Bolanavanua AUDITOR-GENERAL Suva, Republic of Fiji 30 September 2014.
EXECUTIVE SUMMARY The WOG Financial Statements and the Annual Appropriation Statement of the Government of the Republic of Fiji for the year ended 31 December 2013 has been audited in accordance with section 152(1) and 152(2) of the 2013 Constitution, Sections 46 & 47 of the Financial Management Act (2004) and Section 6 of the Audit Act.

The audit resulted in the issue of a qualified audit report.
The issues qualified are as follows:  Inadequate systems of internal control for cash at bank included (i) the absence of bank reconciliations for various overseas and domestic bank accounts; (ii) various general ledger cash balances for overseas and domestic balance do not have evidence of cash held; (iii) unrecorded cash relating to domestic bank balances; (iv) overdrawn domestic cash general ledger balances without satisfactory explanations provided during the audit; and (v) those unexplained variances between the drawings account general ledger and the respective board of survey reports.
These errors and omission provided a net impact for cash at bank totalling $25.5 million;  Accounts receivable balances totaling $18.7 million as at 31 December 2013 were not supported with reconciliations to be prepared by responsible Ministries/Departments.
 No record was provided to validate $2.4 million relating to accountable advances for Department of Agriculture as part of total prepayment and accrued income as at 31 December 2013 totaling $4.3 million as shown in the Statement of Assets and Liabilities.

Management attention was also drawn to the following matters:  Term Loan Receivable of $58.4 million includes a negative balance of $12.7million relating to Public Service Commission (PSC) Scholarship Funds were not fully supported.
The NATCO loan balance of $1million has yet to be regularized to equity following the Cabinet Decision in November 2009.

As such, the loan receivable in Note 7 is overstated by the same amount.

 Trust Fund account totalling $79.5 million includes various trust accounts with negative balances totalling $13.7 million contrary to the nature of the trust.
 Inventory totalling $3.7 million includes TMA Closing Stock of Finished Goods of $1,058,578 could not be validated because of Department of Agriculture did not carry out an independent stock take.

 Various Ministries/Departments did not reconcile their respective expenditure as recorded in the expenditure ledger with the Financial Management & Information System as required under section 15 of Finance Instruction 2010.
The following is a summary of the audit observations: 2013 Whole of Government Financial Statements Cash at Bank The Cash at Bank balance increased significantly from $96.6 million in 2012 to $206.7 million in 2013.

This increase was due to a significant increase in domestic bank balance and trust fund account cash at bank balance by 137% and 20% respectively.

There was a decrease in the overseas bank balance and TMA cash at bank balance by 5% and 14% respectively.
The net of errors and omissions in the cash at bank balance reflected in the Statement of Assets and Liabilities in the WOG financial statement totalled to $25.5 million.

Unpresented cheques have decreased by $32.2 million to $75.5 in 2013 compared to $107.7 million recorded in 2012.

The significant unpresented cheques balances in prior years indicated that spending for these Ministries and Departments were concentrated towards the end of the year.
Such spending often results in uneconomical purchases affecting the following year’s cash flows.

Accounts Receivables Accounts receivables decreased from $21.2 million in 2012 to $18.7 million in 2013.

The significant decline by 12% or $2.5 million noted in 2013 is attributed to the write off of dormant accounts in the general ledger amounting to $3,386,760 as approved by the Minister of Finance.
As at 31 December 2013, a total of $1,078,793 of accounts receivable showed credit balances which indicate that debtors have overpaid their accounts and there was no evidence of a review to ascertain the reasons for these credit balances.

Numerous Ministries and Departments did not prepare reconciliations nor did they maintain debtors register.

There were some instances balances in that reconciliation could not be explained nor supported.
Prepayments and Accrued Income Prepayments and accrued income decreased by $9.4 million or 68.6% from $13.7 million in 2012 to $4.3 million in 2013.

The significant decrease was noted for unclaimed monies, dishonoured cheques and surcharge balances attributed to a write-off of $9.9m as approved by the Minister of Finance.

An amount of $2.4 million or 56% of the total prepayments and accrued income amount in relation to advances for Ministry of Agriculture from prior years could not be substantiated.
Inventory The value of inventory held by Government has decreased by $3.5 million or 49% from $7.2 million in 2012 to $3.7 million in 2013.

Inventory is measured at cost.

The Ministry of Agriculture’s stock certificate report reflected closing stock of $1.1 million which were carried out by officers who are directly involved in maintaining and accounting the stock.
2 Term Loans Receivables The outstanding loans owed to Government have decreased by $9.4 million or 14% from $67.8 million in 2012 to $58.4 million in 2013.

The significant decline is attributed to the write off of dormant accounts in the general ledger amounting to $5.8 million as approved by the Minister of Finance.
Incorrect accounting entries being passed by the Public Service Commission to record transactions relating to its various scholarship loan accounts resulted in the negative balances of the scholarship accounts amounting to $12.7 million.

Recurring issues highlighted during the 2012 audits were not resolved by the Ministry in 2013.

Investments Government’s investments held in 26 companies in 2013 totalled $495.9 million.

This is an increase of $69.8 million compared to $426.1 million in 2012.
Only 6 entities remitted dividends to Government totalling $11.98 million in 2013 compared to a forecasted dividend income for year 2013 of $38.3 million.

The overall average rate of return on investment of 2% was recorded in 2013 which has remained constant over the last 3 years.

Governments’ record of shares held in three entities is understated by $3.97 million.

There were investments totalling $42.5 million for four entities, for which the share certificates could not be located.
Accounts Payable Accounts payable despite being a liability had a debit balance of $64,339, a decrease of $42,329 or 40% from ($106,668) as recorded during the financial year 2012.

Supporting documents to substantiate TMA trade & sundry creditors of $570,525 and the withholding tax of $152,417 were not produced for audit verification.
Deferred Income and Accrued Expenses Deferred income and accrued expenses had a balance of $0.3 million, an increase of $1.6 million or 128% from a debit balance of $1.3 million in 2012.

The increase resulted from the write off of $1.8 million of expenses in relation to the Telstat operations carried out by Republic of Fiji Military Forces (RFMF) in 2006 on behalf of Telecom Fiji to set up satellites in rural areas and outer islands.

Telecom Fiji was to reimburse the RFMF on the over spending.
Term Loans Payable (Borrowing Fund) Public debt owed in 2013 totalled $3,824.9 million and comprised of domestic borrowings of $2,641.5 million or 69% of total debt; overseas borrowings of $1,081.1 million or 28%; and treasury bills $102.3 million or 3%.

3 New loans raised in 2013 totalled $275.1 million of which $172.8 million were funded through domestic bonds and $102.3 million in treasury bills.
There were no new overseas loans raised but cash drawdowns from existing loan facilities during 2013 in the form of interest capitalisation and direct payment amounted to $99.9 million.

Trust Fund The trust fund account had a balance of $79.5 million as at 31/12/13, an increase of $5.8 million or 7.8% from 2012.
The increase is a result of new trust account opened for Ministry of Strategic Planning, National Development and Statistics and an increase in Chinese grants for the Prime Minister’s Office and immigration bond.

Trust accounts with debit general ledger balances amounted to $13.7 million and indicates that these trust accounts has been overdrawn.

A total of $4.1 million was written off for dormant and unreconciled trust accounts as approved by the Minister of Finance.
Contingent Liabilities A total of 14 entities were covered under Government guarantee in 2013, compared to 15 entities in 2012.

The total contingent liabilities as at 31/12/13 amounted to $2,191.2 million of which domestic loans accounted for $2,183.6 million or 99.7 % of total contingent liabilities and overseas loans accounted for $7.6 million or 0.3 %.
Revenue The total forecasted revenue by government in 2013 amounted to $2,507,382,200 comprising of $1,994,353,600 in operating revenue; $114,055,200 in investing revenue and $398,973,400 in borrowing revenue.

No forecast was provided for revenue generated from government trading and manufacturing operations.
The actual revenue collections made by government from its normal operations in 2013 totalled $2,293,114,628 thus recording a shortfall of $214,267,572 or 9% of the total estimated revenue collection.

A variance of $399,544,329 was noted between total revenue estimates as per the national budget and total revenue estimates as per the FMIS.

The total revenue estimates as per the national budget totalled $2,507,382,207 whereas the total revenue estimates as per the FMIS amounts to $2,107,847,871.
A variance of $19 million exists between Ministry of Finance general ledger balances and the FRCA revenue collection report for the year 2013.

While government recognizes the expenses and liability following loan disbursement, the revenues from the loan proceeds are not recognized hence it does not satisfy the matching principle.
4 Expenditure Government spending for the year ending 31st December 2013 as authorized under the National Budget totalled $2,315,635,533 an increase of $49,419,983 or 2% from $2,266,215,549 spent in 2012.

Government’s total expenditure for the last 10 years has been increasing at a steady rate even though there was a marked decrease in 2008, 2010 and 2012.
From 2004 to 2013 the incremental increase for operating expenditure over the 10 years period was $399.1 million with an average increment of $39.9 million.

Operating expenditure compared to 2012 recorded an incremental increase of $75.4 million or 5.2% during the year 2013.

TMA expenditure amounting to $18,921,609 reflected in the financial statements is inclusive of $1,045,778 which is the overall net loss incurred for the TMA operations of government.
Therefore at 31/12/13 the total expenditure is misstated by $1,045,778.

At Head (Ministry) level, the Ministry of Education, National Heritage, Culture and Arts and the Ministry of Health overspent their total budget appropriation in 2013.

Nineteen Ministries/Departments did not maintain an expenditure ledger to record payments made during the year for reconciliation purposes contrary to the requirements of the Finance Instructions 2010.
2013 Accounts of Ministries and Departments Major issues noted from the audit of some Ministries and Department include the followings: Office of the President The Office of the President incurred a total expenditure of $2,408,051 in 2013.

This includes a book entry for a budget carry-over of $453,070 to be spent in 2014.

Consequently the actual 2013 expenditure has been overstated by the same amount.

The Office Revolving Fund Account (RFA) had a credit balance of ($306,252) as at 31/12/2013.
The Office did not prepare any reconciliation for its revolving fund account as at 31/12/2013.

Office of the Prime Minister An unreconciled variance of $1,055,236 exists between the FMIS general ledger Trust cash at bank account and the bank reconciliation balance.

A further variance of $32,626 exists between the general ledger cash at bank account and the trust liability account balance.

Other anomalies include the non- receipting of direct deposits and overstatement of interest earned.
The nature of payments in the 2013 trust fund statement of receipts and payment were also not disclosed appropriately to ensure disclosure consistency and comparability to the 2012 figures.

Some accounting and administrative anomalies noted for the trust fund include poor reconciliations prepared, non-recording of bank charges, interest and non-submission of annual acquittal report to the donor.
The bank reconciliation errors resulted in an unreconciled variance of $9,964 between the bank reconciliation and the general ledger records.

Another variance of $11,797 was noted between the 5 cash at bank account and the Trust liability account in the general ledger.
An independent reconciliation carried out revealed a variance of $12,087 between the cash book reconciliation and the cash at bank balance As at 31 December 2013, the Office operating trust fund accounts had overdrawn balances totalling $194,646.

Most of the overdrawn balances were brought forward from previous years.

A variance of $6,392,023.79 exists in the drawings accounts balance between the Office reconciliation and the FMIS general ledger records.
The audit further noted that the Office did not submit the signed board of survey report for the drawings account.

Public Service Commission There were variances between the FMIS general ledger and the Commission’s reconciliation relating to the drawings account.

Verification of the FMIS general ledger records revealed that account allocation 1–02300–00000– 560000 – accounts receivable had a debit balance of $10,689,966.97.
However, no reconciliation was provided hence audit could not substantiate the correctness of the above balances.

A variance of ($112,009.91) exists between the FMIS and the Commission’s reconciliation relating to the operating trust fund account.

A variance of $297,487.74 exists in the TMA cash balance between the FMIS and the Commission’s reconciliation.

There were arrears of rent totalling $83,561.87 in the TMA as at December 2013.
Office of the Attorney General The department does not maintain an expenditure ledger.

As a result, the department could not reconcile the expenditure in the FMIS general ledger maintained by the Ministry of Finance and its records.

A variance of $41,075 exists between the drawings account balance of the department’s reconciliation and the general ledger (FMIS) records.
Ministry of i-Taukei Affairs The revenue recovered from bond monies totalling $509,934 was not reflected in the Statement of Receipts and Expenditure.

The Statement of Losses failed to disclose other losses as the Ministry failed to prepare a board of survey report contrary to section 49 (2) of the Finance Instructions 2010.

Details were not provided for the dormant trust fund cash at bank balance of $1,959,998 recorded in the general ledger system.
The Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

6 Only $7.2 million or 74% of the scholarships funds were utilized from the total of $9.7 million allocated for the year.

A total of $4.56 million is owed by sponsored and bonded students who have absconded.
Ministry of Defence, National Security and Immigration Variances of $181,505 and $149,299 exist for the cash receipts and cash payments respectively between the Department of Immigration trust fund account cash book and the FMIS general ledger balances.

There is an un-reconciled difference amounting to $1,794,695 between the FMIS general ledger cash at bank and bank statement balance.

The Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.
The Ministry prepared its financial statements from the FMIS general ledger.

The damaged passport books for 2013 totaled 228 costing $17,328.
More than 50% of the damages resulted from machine errors such as printing problems, improper lamination, overheating and inking problems while some were human errors arising from judgmental errors, typing errors, incorrectly placing the passport books in the machine The Ministry has poor control over the administration of the permit database where the system data for permit holders of foreigners does not have the issued and expiry dates of applications, the residential addresses in Fiji, and instances were noted where permit system data recorded the name of other countries as the local addresses of permit holders for foreigners in Fiji.
Ministry of Labour, Industrial Relations and Employment A variance of $485,641 exists between the trust fund account liability and the trust fund bank account balance in the general ledger.

In addition, the bank reconciliation balance differed from the general ledger bank balance by $427,280.

The Ministry’s arrears of revenue totalled $46,183 as at 31/12/14 compared to $38,592 in 2012.

The Ministry has several workmen’s compensation cases pending over the years.
An analysis carried out indicated that the largest number of cases was closed in 2010 whereas the following three years after that saw a reduction in the number of closed cases.

Ministry of Foreign Affairs and International Co-operation Board of surveys were not carried out for all Fiji Missions overseas contrary to section 49 (1) of the Finance Instructions 2010.

As such, the completeness and accuracy of the statement of losses cannot be ascertained.
An un-reconciled difference of $469,775 exists for expenditure recorded in the FMIS general ledger and the department expenditure ledger.

The Ministry did not perform any reconciliation for expenditure and as a result, the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.

The total expenditure includes a book entry for a budget carry-over of $1,150,747 to be spent in 2014.
Consequently, the actual expenditure in 2013 has been overstated by the same amount.

7 Established staff allocations have exceeded its allocated budget appropriation by $765,844.

The Ministry has poor control over payroll where there was overpayment of salary, excessive annual leave and diplomatic appointment contrary to diplomatic consular regulations.

Judicial Department The Department had total arrears of revenue of $11,968,031.00 as at 31/12/13 compared to $11,341,730 in 2012.
The audit of Court records noted that there is a substantial number of pending cases under each category of Court.

The highest number of pending cases was for Magistrates Court (136,634) followed by High Court (4,951) and then Family Court (2,863).

A Contractor Western Builders Limited was overpaid by $89,786.26 on the contract for the construction of new Tribunal Court 2 & Registry at Government Buildings.

There was no evidence of approved variations to the contract provided to audit.
Parliament The Department overpaid sitting allowance to the Public Accounts Committee members.

Office of the Director of Public Prosecutions The Office incurred a total expenditure of $3,946,975 in 2013 against a revised budget of $5,109,385 resulting in a saving of $1,162,410 or 23%.

There is an un-reconciled difference amounting to $102,465 between the FMIS general ledger expenditure and expenditure as per the cash book.
The Office did not reconcile the expenditure in FMIS general ledger to the cash book or any other separate record.

Ministry of Justice and Anti-Corruption There is an unreconciled difference of $892,480 between the FMIS general ledger expenditure and expenditure as per cash book.

The Department did not reconcile the expenditure in the general ledger (FMIS) to the cash book or any other separate record.
A variance of $41,979 exists between the FMIS general ledger and the Department’s reconciliation relating to the drawings account.

The Department’s RFA as at 31/12/13 had a balance of $52,337 out of which $47,973 was carried forward from previous years.

Record keeping in the Titles office needs to be improved.

The Office lacked a Disaster Recovery Plan and there was no certificate of fire proof by the National Fire Authority.
The Office current computer system (Titles, Deeds Registration System - TDRS) is very slow and cannot cater for the high day to day demand from customers.

No offsite storage or system generated backup is available for the TDRS.

For the 820 moneylenders on record who have been issued licenses up to 2012, 423 (or 52%) have yet to renew their licenses.

The department did not take any action or follow up on defaulting moneylenders.
8 The Registrar General did not have a Disaster Recovery Plan or a backup system for the BDM records.

Records prior 1910 were also not available the issue of blank certificates to Post Fiji was not reconciled.

Fiji Prisons and Correction Services The Ministry of Finance approved the carry-over of $431,039.73 for completion of CCTV installation for the Fiji Corrections Service to be utilized in year 2014.
The Ministry of Finance recorded expenditure under allocation of Fiji Corrections Service of $431,039.73 2013 contrary to the carry- over policy.

A variance of $21,442.62 exists in the sales figure between the FMIS general ledger and the Department’s records.

A variance of $63,394 exists in the bank balance between the Department records and the FMIS general ledger balance.

There is an un-reconciled difference of $928,393 between the FMIS general ledger expenditure and expenditure as per the cash book.
Fiji Corrections Service did not reconcile the expenditure in the FMIS general ledger to the cash book or any other separate record.

Prison officers were not surcharged for motor vehicle accidents caused by their own negligent.

In addition, the transport section did not properly maintain documents relating to the accident, such as motor vehicle accident report, the Police report and the records that surcharge have been imposed.
Instances has been noted where officers have been surcharged one or two years back but no deductions have been initiated to date.

Department of Communications The department does not maintain an expenditure ledger.

As a result, it could not reconcile the expenditure in the general ledger system maintained by the Ministry of Finance.

A variance of $13,523,173 was noted between the department’s cash at bank balance and the cash balance reported in the FMIS general ledger as at 31 December 2013.
The audit noted a variance of $10,198 between the trust fund cash at bank recorded in general ledger ($2,906,717) and the trust fund liability account balance ($2,896,519).

No Tender and no contract agreement signed for the engagement of City Security Services.

A total payment of $93,628 was made to the company in 2013.

Ministry of Information The Ministry did not maintain an expenditure ledger.
As a result, the Ministry could not reconcile its expenditure with the FMIS general ledger maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.
Ministry of Rural and Maritime Development and National Disaster Management A variance of $3.7 million exists between the trust fund cash at bank recorded in the FMIS general ledger ($6.2 million) and the trust fund liability account balance ($2.5 million) contrary to section 58 9 (3) of Finance Instructions 2010.

Therefore, the Trust Fund Account Statement of Receipts and Expenditures cannot be ascertained to be fairly stated.
A variance of $3.1 million exists between the Provincial Development trust fund cash at bank recorded in the general ledger ($5 million) and the Provincial Development bank statement balance ($1.9 million) contrary to section 32(6) of Finance Instructions 2010.

As such, the audit was not able to ascertain that all receipts and payments have been accurately accounted and disclosed in the main trust fund account.
In accordance with the government cash basis of accounting, total expenditure includes a book entry for a budget carry-over of $16,983,073 million to be spent in 2014.

Consequently the actual 2013 expenditure has been overstated by the same amount.

The Ministry did not reconcile its expenditure with the FMIS general ledger as no expenditure ledger was maintained.

The Ministry prepared its financial statements from the FMIS general ledger.
The Ministry did not reconcile the Prime Minister’s National Disaster Relief and Rehabilitation (PMNDRR) Trust Fund receipt and expenditure in the FMIS general ledger as no expenditure ledger was maintained.

The Ministry prepared its Statements of Trust Fund Receipt and Expenditure from the FMIS general ledger.
Projects were not yet initiated for individual and communities that have given their one third deposits for various programmes which were recorded on the Provincial Development Trust Fund Account totalling $359,139.
This comprise of seventy (70) Rural Housing Assistance Scheme II totaling $280,229, nine (9) Prime Ministers Relief and Rehabilitation Project totaling $77,230 and five (5) self-help project for individuals and communities totaling $1,680.The audit further noted that some contributions dated back to year 2003 hence a delay in project implementation of ten years.
The Commissioner Eastern Division was able to facilitate only thirty precent (30%) payment from the two million allocated to the Eastern Division to facilitate the implementation of the various project appropriated under the Public Sector Investment Program of the 2013 budget.

Poor record keeping for the Division regarding Public Sector Investment Program (PSIP) and other capital project undertaken were noted as project files were not maintained.

As such the status of the project cannot be ascertained.
The inspection of the stores held at Top-Yard, Walu Bay reveal that unaccounted project building materials and other items were stacked outside the yard which have been there for some years and are deteriorating due to wear and tear.

The items and materials declared unserviceable were still good and useable condition.
The Tropical Cyclone Tomas Rehabilitation materials that were received in 2011 were still stacked and stored at the top yard store and were not delivered to those affected by the cyclone in the Northern Division.

The Ministry has poor control over the administration and implementation of the Tropical Cyclone Evans Housing Rehabilitation operation in the Western Division where Purchase Orders (PO) were not issued however blanket approvals were issued to the suppliers to deliver materials.
The blanket approvals issued to the supplier did not contain any ceiling amount for the cost of building materials to be supplied.

A total of $227,028 was paid to Kasabia Ltd base on the invoice received for the thirty one (31) house material delivered and $543,251 was paid to R.C.

Manubhai for the forty four (44) house material delivered and $46,272 for the eleven (11) house material delivered.

The materials 10 purchased as recorded in the supplier’s invoice were not fully delivered to recipients.
The recipients of the assistance could not commence with the rehabilitation works due to part supply of materials from the supplier despite payment already made.

Fiji Military Forces The Force did not maintain an expenditure ledger for 2013.

As a result, the Force could not reconcile its expenditure with the FMIS general ledger maintained by the Ministry of Finance.
A sum of $3,900,342 from the 2013 Force budget allocation was approved by the Ministry of Finance as carry-over funds to be utilized in 2014.

The amount was disclosed in the FMIS general ledger and the Agency Financial Statement as actual expenditure incurred for 2013 resulting in total the expenditure being overstated by $3,900,342.
As at 31 December 2013, a total of $2.6 million is held in a bank account with the Bank of South Pacific (BSP) under the RFMF Engineers Project Fund Account.1 These are funds received from Ministries/Departments for capital works to be undertaken by the RFMF engineers.

The fund was not included in the Agency Financial Statements of the Force and proper records were not maintained.
An un-reconciled variance of $31,557 exists between the December reconciliation statement prepared by the Force ($2,139,824.87) and the general ledger balance ($2,171,381.79).

Reconciliation was not carried out on a monthly basis.

Instead, a three months reconciliation was prepared for the months of February, March and April and 2 months reconciliation were prepared for September to October and another for the months of November to December.
The advance account had a credit balance of $403,951 which had been carried forward from previous years.

No action had been taken by the accounting officers to clear this credit balance.

As at 31 December 2013, the Force Operating Trust Fund Accounts had overdrawn balances totalling $6,004,162 compared to $5,784,111 in 2012.

The Force did not include the labour cost and the cost of its plant and vehicles in its TMA for the year ended 31 December 2013.
A sum of $42,488 was disclosed as Direct Labour in the TMA for Plant Pool.

However, this does not relate to Labour but includes expenditure such as freight cartage for plants to outer islands, passage for machine operators, accommodation, meals and fuel cost.

Some RFMF Engineers projects lacked a MOU between the RMF Engineers unit and the Prime Minister’s Office regarding the Capital projects that was to be undertaken.
Despite budgetary provisions for the Sukanaivalu Barracks upgrade, no work was carried out as at 31 December 2013 on married quarters (26 and 54) and the mess hall.

Other anomalies noted include divergence of funds for other purposes, prepayments for building materials and lack of manpower to carry out the project.

Administration and accounting procedures were also not followed.
A sum of $1,841,166 was charged for the above programme in 2013, out of which $1,058,895 was rolled over to be utilized in 2014.

Only $212,256 was utilized from the rolled over sum of $1,058,895 leaving a balance of $846,639 as at 31/12/13.

1 BSP Bank Account Number 6652519 11 Fiji Police Force A variance of $872,812 exists between the Force’s Drawings bank account reconciliation and the FMIS general ledger balance.
The Drawings bank account reconciliation was not performed properly to account for the cheques issued, cheques presented and the un-presented cheques as at 31/12/13.

As such the completeness and accuracy of payments made and recorded in the Statement of Receipts and Expenditure could not be determined.

The Board of Survey was not carried out contrary to section 49 (1) and (2) of the Finance Instructions 2010.

As such the completeness and accuracy of the Statement of Losses cannot be ascertained.
The Force did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

The Ministry prepared its financial statements from the FMIS general ledger.

A total of $423,966 was written off for account balances of the Force deemed irrecoverable and unverifiable.

These include drawings, inter departmental clearing accounts, accounts receivables and trust fund accounts.
Yet despite the designated authorization provided by the Minister of Finance, there was no supporting documents produced to audit to consider the completeness of adjustments and the validity of the accounts in the financial statements A total of $2,720,509 in un-presented cheques were over six month old which were considered to be stale cheques however the force did not clear this stale cheques at the end of the year.
The Force has poor control over payroll where the audit could not ascertain salaries and wages totaling $3.45 million for Special Constables (SC) as certified salary and wages reconciliations were not maintained and provided for audit verification upon audit request.

In addition salaries totaling $10.1 million for established staff, $1.4 million for special constables and $266,525 wages were not reconciled on time.

The audit established that some salaries and wages were reconciled after one year.
The Force engaged excessive new recruits (PL08) and some contract workers contrary to the Public Service Commission approved staff establishment.

The Force has poor control over recruitment as application forms, supporting police clearance forms medical clearance forms and other supporting documents such as birth certificates and examination transcripts were not produce to audit.

The Fiji Police Force had unidentified contribution of $15,151 with FNPF as at 31/12/2013.
The Force did not provided payment vouchers and supporting documents for expenditures totaling $1,014,052.

The Force did not put in place a contract for the procurements of footwear worth $374,225 as per required by the Government Tender Board.

Ministry of Finance The general ledger balances totalling $8,149,574 in relation to TMA equity were not provided for audit and is a recurring audit issues in prior audit years.
A variance of $18,422,688 was noted in the drawings account with the Ministry and the general ledger (FMIS) balance.

12 A variance of $665,380 was noted in the trust fund account between the general ledger balance and bank statement balance as at 31/12/13.

The Ministry’s operating trust fund account had a variance between FMIS records and the Ministry’s record due to various postings to FMIS allocations which were not included by the Ministry’s reconciliations.
The Ministry did not have any acquittal guideline for the payment of the salaries to Cabinet Ministers.

The acquittal reports provided by the Ministry were not fully supported with supporting documents to be in agreement with Head 50 funds released by the Ministry of Finance.

Ministries/departments do not submit competitive quotes to the Ministry of Finance in their submission for request of Head 50 funds for the payment of airfares for the Ministers during 2013.
The ministry had incurred over-expenditure amounting to $2,393,242 during the year relating to Pensions, Gratuities & Compassionate Allowance from Head 51.

Payments made from Head 51 totaling $6,102,817 without any check or verification by the paying offices which include Judicial Department, Prime Minister’s Office and Fiji Military Forces.

These checks and verification would provide an assurance to Pension Office that payments have been made to bona fide recipients.
The first and second quarter reports for 2013 showed overpayment to pensioners for amount totaling $52,299.

Moreover, internal audit report highlighted overpaid pensioners during the year 2011 and 2012 which have not been recovered by the pension’s office at the time of the audit.

There was no internal audit review carried out for the Debt Unit in 2013.
The Ministry of Finance did not utilize the amount set aside for repayment for various loan accounts totaling $3,255,000 and $1,169,506 for the year ended 2012 and 2013 respectively.

Government Printing and Stationery Department (GPSD) The Department outsourced its printing services without any evidence of the approval of the Minister as required under section 32 of the Procurement Regulation 2010.
Fiji Procurement Office (FPO) TMA creditors for FPO showed debit balance of $597,668 contrary to the nature of the balance that the account should have.

Numerous agencies failed to submit their Annual Procurement Plan to Procurement Office as required by section 26.1 of the Procurement Regulations 2010.
Contract documents from the 2012 and 2013 approved tenders relating to Ministry of Education, Fiji Police Force, Fiji Navy, and Republic of Fiji Military Forces are not available at the Procurement Office as required under the Finance Circular No.

3/2013.

Numerous instances where the tender process from the advertisement of the tender to the board approval has gone over period of three months which may compromise the fairness and impartiality of the procurement process.
13 Information Technology and Computing Services (ITC) Numerous documents or information requested from ITC Steering Committee for audit were not made available.

The Public Private Partnership Agreement between the Government of Fiji and Yalamanchili International PTE Ltd on 28/09/2012.

The audit could not establish whether IT Strategy has been put in place as there was no response received from our enquiry.
The Annual Procurement Policy is yet to be in place by the ITC Steering Committee Ministry of Strategic Planning, National Development and Statistics National Planning Office The Ministry incurred expenditure totalling $10,147,496 during 2013 against a revised budget of $11,452,456 resulting in a savings of $1,304,960 or 11.4%.

The reconciliation statement for drawings accounts for Strategic Planning and National Development Office was not provided for audit.
The Integrated Human Resources Development Program (IHRDP) Trust Account is understated by $40,491 as a result of incorrect accounting of the community contributions received in 2012 that is still being reflected in the Consolidated Fund Account and is yet to be refunded into the IHRDP Trust account.
The Strategic Planning and National Development Office did not reconcile the expenditure recorded in the FMIS as no expenditure ledger was maintained and prepared its financial statement from the FMIS general ledger records.

As a result, the accuracy of expenditure totalling $4,012,618 as part of the Ministry’s total expenditure reflected in the Statement of Receipts and Expenditure could not be ascertained.
An Economic Planning officer (EDP 91254) who was on attachment with the Commissioner Northern Office was overpaid on the post of Acting Senior Economic Planning officer due to an input recorded in the FS01 form sent to the Ministry of Finance for Pay 04/13.
Bureau of Statistics The Bureau of Statistics paid out $54,743 being the wages and overtime pay owed to project officers for 2013 from the 2014 budgetary allocation under SEG 7 – Special Expenditure due to the Bureau’s inability to meet the deadline of 31/12/13 set by the Ministry of Finance for processing of all 2013 payments.

An officer (EDP 90791) who caused damage to the government vehicle was surcharged $5,629.
The Bureau has not activated the salary deduction as the Bureau is awaiting an advice from the Surcharge Unit of the Ministry of Finance on the amount to be deducted.

The Officer has only seven years of service left to reach the compulsory retirement age of 55.

Ministry of Works and Transport The ministry recorded $637,110 as expenditure for 2013 in the FMIS general ledger contrary to the carry-over policy of the Ministry of Finance.

14 Five of the eleven TMAs under the Ministry are inoperative.
TMAs that were still active had continuously been operated at a loss.

In addition, accounting records were inadequate to provide sufficient appropriate evidence to substantiate the balances reported in the financial statements.
The effectiveness of the reconciliation process and the reliability of information provided through the reconciliation of accounts were doubtful as there were un-reconciled variances noted between the reconciliations statements for various accounts prepared by the Ministry and the balances reflected in the FMIS general ledger.

These also resulted in the qualification of the Ministry’s Agency Financial Statement.
Revenue records for TMAs under the Divisional Engineer Central Eastern have been misplaced and other accounting records were not properly maintained and provided for audit, increasing the risk of mismanagement.

Poor inventory management was noted at the Divisional Engineer Western.

Determining the actual costs of projects from the expenditure records and verifying the costs was difficult due to the absence of audit trail and that unrelated costs were charged to any project accounts that had savings.
Adjustments to the general ledger without proper approval have been a recurring issue thus increasing the risk of manipulation of accounting records.

Procurement and payment procedures were being circumvented, increasing the risk of fraud and mismanagement of public funds.

The salary reconciliation process performed was ineffective as it failed to detect numerous incorrect payments of wages and salaries.
Ministry of Agriculture The Ministry did not maintain adequate accounting records to provide sufficient and appropriate evidence to substantiate balances reflected in the financial statements for Trading and Manufacturing Accounts (TMA).

The Ministry’s stock certificates reflected total closing stock of $1,058,577.

However, reliance on this balance was limited as the stock takes were carried out by officers directly involved in maintaining and accounting for the stock without an independent supervision.
Reconciliations of accounts were not carried out properly and correctly resulting in significant variances between the reconciliation statements and the FMIS general ledger.

In addition, balances in the reconciliation statements and the general ledger were not properly supported with relevant documents.

Overall financial performance of the TMAs from previous years has been poor.

Ineffective controls on the management of property, plant and equipment.
$688,334 or 85% of arrears of revenue have been outstanding for more than 5 years.

The arrears are mainly related to the outstanding repayments from farmers for assistance provided to them under different agricultural programs in previous years.

Unavailability of consolidated data/information on assistance provided to farmers/individual/groups under the various agricultural programs over the years and their current status had provided a limitation to the scope of the audit.
For the past five years, around $19.1 million have been utilized for the Demand Driven Approach (DDA) Agricultural programs.

In addition, it was difficult to determine 15 whether the general objectives of the DDA programs were being achieved due to the absence of consolidated data/information on the monitoring and evaluation of individual projects against their objectives.
Common irregularities were identified across 80 farms visited in the Central Division with total assistance valued at over $1.2 million.

Machines purchased and constructed at the Koronivia Research Station have not been utilized for a number of years.

Procurement and payment procedures were being circumvented, increasing the risk of fraud and mismanagement of public funds.

The salary reconciliation process performed was ineffective as it failed to detect numerous incorrect payments of wages and salaries.
Ministry of Lands and Mineral Resources The reliability of information provided through the reconciliation of accounts was doubtful as there were un-reconciled variances noted between the various reconciliation statements prepared by the Ministry and the balances reflected in the FMIS general ledger.

Adjustments to the FMIS general ledger without approval and without supporting documentation were prevalent which increases the risk of manipulation of accounting records.
Recovery of arrears of revenue for Crown land lease has been slow as the balances over the past five years have been increasing.

The arrears of revenue as at 31/12/13 totalled $25.2 million, an increase of $7.2 million or 40% since 2010.

The salary reconciliation process performed was ineffective as it failed to detect numerous incorrect payments of wages and salaries.
Adjustments to the general ledger without proper approval have been a recurring issue thus increasing the risk of manipulation of accounting records.

Procurement and payment procedures were being circumvented, increasing the risk of fraud and mismanagement of public funds.

Ministry of Fisheries and Forests Trading Manufacturing Accounts have continuously operated at a loss.
Accounting records were inadequate to provide sufficient appropriate evidence to substantiate the balances reported in the financial statements.

The reliability of information provided through the reconciliation of accounts was doubtful as there were un-reconciled variances noted between the various reconciliation statements prepared by the Ministry and the balances reflected in the FMIS general ledger.
The Ministry of Finance approved the carry-over of $180,704 for funds related to various projects to be utilized in 2014.

However, this was recorded as expenditure for 2013 contrary to the carry-over policy of the Ministry of Finance.

Contracts were endorsed by officers whose authorized procurement limits were below the contract sum.
16 The Department of Forests did not maintain a structured information database to consolidate and capture all information on the types licenses issued and details of licensee for all Divisions, to produce useful information that will aid decision-making.

In addition, there is potential risk for revenue leakage.

Officers occupying government quarters had substantial rental arrears as at 31 December 2013.
Ministry of Sugar Ineffective controls on the management and accounting of fixed assets (property, plant & equipment).

The reliability of information provided through the reconciliation of accounts was doubtful as there were significant un-reconciled variances noted between the various reconciliation statements prepared by the Ministry and the balances reflected in the FMIS general ledger.
Acquittal reports for government grants and subsidies paid to the Sugar Research Institute of Fiji and the South Pacific Fertilizer Limited were not provided to the Ministry.

Government Shipping Services Transactions in the FMIS general ledger totaling $1,187,178 could not be substantiated to any accounting records maintained by the Department.

There is a lack of records to substantiate the use of fuel and oil.
The Department incurred a total expenditure of $1.2 million on fuel and oil for both vehicles and vessels in 2013.

Procurement and payment procedures were being circumvented, increasing the risk of fraud and mismanagement of public funds.

Ministry of Health Headquarters A variance of $293,784 existed between the Ministry’s gross pay on which FNPF was paid and the audit calculations of gross pay subject to FNPF.
Amounts disclosed in the Appropriation Statement could not be substantiated as the virement files and the virement register was not maintained up to date.

The Ministry did not prepare drawings account reconciliation for the months of November and December 2012, thus audit could not substantiate the opening balance of $5,524,332 used to prepare drawings account reconciliation for January 2013.
A variance of $1,131,989 existed between the presented cheques list and the presented cheque amount in the drawing account reconciliation.

A variance of $4,306,641 existed between the Ministry’s drawings account reconciliation and the FMIS general ledger.

The Ministry’s un-presented cheques in the drawings account increased by $4,157,998 or 75% as at 31/12/13 compared to 2012.

A variance of $5,303,884 existed between the VAT paid to FRCA for the year 2013 and the general ledger.
17 A variance of $1,301,426 existed between the total revenue collected by the Ministry as per the bank statement and the FMIS general ledger.

The Ministry did not maintain an expenditure ledger to reconcile its records with the FMIS general ledger.

A variance of $465,725 existed between the Ministry’s main trust account reconciliation for December and the FMIS general ledger.
The main trust account bank reconciliation as at 31/12/13 comprised of $235,924 from previous years which could not be substantiated as no reconciliation was carried out in the previous years.

A variance of $131,794 existed between the Ministry’s main trust account receipts cash book and the FMIS general ledger.

A variance of $150,689 existed between the Ministry’s main trust account payments cash book and the FMIS general ledger.
The opening balance of $152,725 in the main trust fund account could not be verified as the main trust fund account for 2012 was not prepared.

The main trust fund was overdrawn by $77,075.59 as at 31/12/13.

A board of survey for the whole Ministry was not conducted.

A payment of $434,917 made by the BPS to the Ministry of Finance on 29/1/13 was not reflected in the equity account in the TMA balance sheet.

The TMA balance sheet as at 31/12/13 was not balanced and had a variance of$384,998.
The Ministry of Finance used TMA Surplus Capital Retained to CFA of $384,998 to balance the TMA balance sheet.

The balance of $384,998 disclosed as TMA Surplus Capital Retained to CFA in the balance sheet could not be substantiated.

The Ministry reported a VAT receivable of $142,425 in the TMA balance sheet as at 31/12/13.

However the VAT calculation performed by audit noted a VAT payable of $2,592.

The BPS does not hold any inventory stock and does not require a warehouse.
However the BPS was paying $1,500 per month or $18,000per annum to FPBS for 44.93 square meters of space for the warehouse.

In several occasions the Ministry charged VAT on zero rated revenue allocations and in other occasions it did not charge VAT on revenue allocations that are not zero rated resulting in loss of government revenue.

Several officers of the Ministry continued to receive salaries and allowances after the effective dates of their resignations, terminations and ceasing of acting allowances.
The Ministry did not maintain an up to date OPR registers for the Clinical and the Technical Officers.

In addition OPR register was not maintained for the headquarters staffs.

• The Ministry was not able to provide the total salaries overpaid during 2013.

Out of a total of $610,345 salaries overpaid for the years 2010 – 2012 the Ministry recovered only $27,018.91 or 4.4%.

The Ministry did not deduct the insurance excess of $3,000 from a drivers final pay totalling $7,188.31on termination.
18 The Ministry did not exclude the contingency sum from the total contract price, thus all the contracts were overpriced by the amount of contingency sum.

The Ministry paid the contractors the contingency sum without any variations in the project costs.

Retention sums deducted from the contractors claims were not deposited in the Trust Fund account with the Ministry.

The retention sums remained in the capital project allocation and were fully utilised.
The Ministry made several progress payments for projects undertaken without progress reports or inspection reports from the Architect/Supervising Officer.

The Ministry was not able to provide minutes of one meeting held on the project site for renovation and refurbishment of St. Giles Hospital.

The Ministry’s Clerk of Works were not based at the project site to provide direct supervision on the projects, instead the Clerk of Works were based at the Headquarters.
The Ministry did not appoint The Clerk of Works to oversee the construction of the Kamikamica Park Hub Centre in Lautoka.

completion of the Kamikamica Park Hub Centre in Lautoka was delayed by 6 months and the contractor was not held liable for the delays as there was no provision in the contract agreement.

In addition the Ministry overpaid the contractor by $2,002.50 in progress payments.
The Ministry made advance payment of $185,566 to Ministry of Works, Transport and Public Utilities prior to the commencement of the project.

The MOU between the Ministry and Ministry of Works, transport and Public Utilities did not state the commencement and completion dates for the project.

The project was not completed within 8 weeks of the effective date of Memorandum of Understanding, 19/09/13.
The Ministry paid for further treatment of patients in India since the surgeries conducted by local doctors failed due to their negligence.

The Ministry paid for overseas medical treatment costs which were higher than the amount initially quoted by the overseas Hospital.

The Ministry did not perform independent verification of the final claim sent by the overseas hospital to justify the variation in costs for patients sent for overseas medical treatment.
The Ministry did not have a Standard Operating Procedures for the charter of aircraft for medical evacuation of patients from maritime islands to CWM Hospital.

The Ministry to obtain Government Tender Board approval and a service agreement despite paying more than $50,000 to Northern Air Services, Island Hoppers and Fiji Navy annually.

failed The Ministry made payments to the charter service providers on photocopied and faxed invoices.

The Ministry paid a fuel surcharge to Island Hoppers.
However, there was no formal agreement or approval regarding the payment.

The Ministry paid 2012 invoices for charter of aircraft in 2013.

The invoices were certified by the receptionists, Ms. Alisi Ravosai and Eliza Qereqeretabua at CWM Hospital even though they did not have the authority to do so.

The Ministry paid $41,400 to Zuriel’s Security Services for sponsoring the Uprising 7’s even though the payment did not in any way relate to promoting awareness for Non-Communicable Diseases.
Several local purchase orders were raised by the Ministry after the goods and services and invoices were received.

The Ministry paid 2012 expenses totalling $130,597.71 in 2013.

Fiji Pharmaceuticals and Biomedical Services Stock balances of several drugs and consumables were either overstated or understated in the EPICOR system as opposed to the actual balance in stock as at 31/12/13.

19 Drugs and consumables worth $369,328 expired as at 31/12/13.
Drugs and consumables purchased by the Ministry were to expire in 1 to 9 months from the date of manufacture.

Items ordered in 2012 and 2013 totalling $8,911,839 from overseas suppliers were not received as of the date of audit.

Several drugs and consumables were out of stock as of the date of audit.

Drugs and consumables totalling $7,006,293.59 were held in excess of the predetermined maximum stock level.

Several drugs and consumables were below the predetermined minimum stock level requirement.
Laundry equipment was purchased at a cost $2.7millio in 2009 however 1 of the equipment was not utilized for 32 months.

The ironer of the laundry equipment was damaged in January 2012 due to flooding.

This was known after installation was carried out in May 2012.

The total cost incurred in installation of the laundry equipment was not provided by the Ministry.
Purchase order PO85101 000864 for the supply of various reagents and consumables for the whole year 2013 worth $1,051,264 from Medical South Pacifica Limited was not monitored by Ministry.

Colonial War Memorial Hospital Dry goods not stored properly in the storeroom.

Waste water pipes at the CWM kitchen were leaking due to poor plumbing works resulting in blocked drains that emit bad odor.

Several widows at CWM Hospital’s Kitchen had missing louver blades and toilet facilities not properly cleaned.
The storeroom had several items that had been written off in 2012.

In addition, other items were lying on the floor as there was inadequate space to store the items.

Items written off at CWM Hospital were not disposed by the Manager Administration and Finance.

The IT room at CWM Hospital did not have any security control for entry and exist.

Nadi Hospital Several items that have been boarded were not properly disposed by the Nadi Hospital management.
The Nadi Pharmacy was still holding on to expired drugs.

There was no proper storage space for the portable x- ray machine after use.

The hospital’s consumables were stored in the old hospital building which was deteriorated and inhabitable.

The hospital stored diesel and kerosene with electrical and other items in the generator room.
Lautoka Hospital There was no contract agreement between the Ministry and Public Works Department to carry out the associated works for the installation of two new elevators at the Lautoka Hospital.

There was no commencement and completion timeline and scope of works identified for installation of the two new elevators and communicated to the Ministry of Works Mechanical section.

There was no agreement for the disposal of the old elevators and its accessories.
The dismantling work had not been done as at the date of audit despite advance payment of $40,860.

• There was a delay of four months between the government tender board approval to OTIS Elevators on 15/08/12, and the first payment of $369,085 on 10/12/12.

There was a 6 months delay in the completion of the Kamikamica Park Health Centre which was to be completed on 03/01/13 as per the contract agreement.

The Kamikamica Health Centre does not have essential equipment.
The staffs at the Kamikamica Park Health Centre do not know how to use the fire extinguisher in case of emergency.

The Kamikamica Health Centre gets flooded when it rains due to its low lying floor.

There was no running sheet maintained for 16 of the 17 vehicles allocated to Lautoka Hospital.
20 Ministry of Social Welfare, Women and Poverty Alleviation The Ministry used only $1,770,702 from the Social Pension Allowances and $1,208,923 from Care and Protection Allowances thus had a savings of $1,469,298 or 45.4% in Social Pension Allowances and $4,781,077 or 79.8% in Care and Protection Allowances.

The Ministry used funds from PBS allocation to pay for the Social Pension Allowances and Care and Protection Allowances.
The Ministry was not able to provide the total amount paid for the Social Pension Allowances and Care and Protection Allowances from the PBS allocation.

The Ministry did not maintain appropriate and sufficient details in several PBS recipients case files.

The Ministry did not provide certain PBS recipient files for review as the Ministry could not locate the files.

The Ministry did not have any monitoring process in place to effectively monitor the status of recipients under the Social Pension Scheme.
The Ministry failed to maintain proper and separate files for the individual recipient of Social Pension Scheme.

The Ministry disbursed funds towards various women’s clubs to carry out income generating projects however the Ministry did not require these project owners to submit progress reports.

In addition no project inspections were carried out by the Ministry to review how the projects were progressing and assess whether funds were properly utilized.
Several officers of the Ministry who were given advances for official travel in 2013 did not retire their advance within 7 days upon returning from official tours.

The days advance not cleared ranged from 186 days to 4 days.

However, the Ministry did not commence salary deductions.

The Ministry’s budget indicated that aid in kind to be received from various international agencies totalled $1,204,335.

However, the Ministry was not aware of the aid in kind and did not receive such aid in kind during 2013.
In addition the Ministry did not follow up with Ministry of Finance on the aid in kind.

The Ministry on several instances allocated same reference numbers to more than one Family Assistance Allowance recipients.

Additionally on several instances the recipients of Family Assistance allowance had only their first name included in the list of payments submitted to the banks.
There was no evidence to indicate that the Family Assistance Allowance payment list was checked by a Senior Officer before it was loaded for payment.

The Ministry submitted to the bank the payment listing of Family Assistance Allowance for several recipients who had dual bank accounts.

In addition, the Ministry was paying Family Assistance Allowance to both bank accounts.
The Poverty Benefit System (PBS) system used by the Ministry is not interlinked with all other PC’s that has PBS database installed and in all the divisions.

All computers or laptops operate on their own as a result the Social Welfare Officer (SWO) has to review the applications on individual computers or laptops.

The Poverty Benefit Scheme System could not print the decisions made by the Senior Welfare Officer once the assessment was completed.
The Poverty Benefit Scheme system did not have adequate capacity to load more than one picture.

Hence pictures taken by Welfare Officers during their field visit as evidence of the state of welfare of Adequate records were not maintained in the Poverty the recipients were not stored in the system.

Benefit Scheme recipient’s case files in the Western Division.

Ministry of Education The board of survey for a number of schools, stations and sections were not carried out for the Ministry.
21 An unreconciled variance of $6,834,145 existed between the Ministry’s Drawings Account reconciliation and FMIS general ledger balance as at 31 December 2013.

The unpresented cheques as at 31 December 2013 increased to $8,143,657 compared to $4,367,708 in 2012.

This was due to large amount of purchases made towards the end of the year.

A variance of $811,209 existed in the Revolving Fund Account between the Ministry’s reconciliation balance and FMIS general ledger balance as at 31 December 2013.
There were weak controls over the administration of journal vouchers.

On several occasions, the journal vouchers were not approved by the Principal Accountant and were used to adjust expenditure account balances.

The Ministry did not maintain an expenditure ledger which could be used to ascertain that all receipts and payments had been accurately accounted for in the Financial Management Information System (FMIS) maintained by the Ministry of Finance.
The Ministry overpaid its staff in salaries totalling $91,051.03 as at 31/12/13.

The Ministry paid Hot Spring Investment Ltd $182,000 or 93% of the contract sum for upgrading and renovation works carried out at Ratu Kadavulevu School.

During the site inspection carried out by audit, it was noted that significant portion of the upgrading and renovation works were not carried out by the contractor.

Contingency sum was not set aside by the Ministry from the total contract price.
As a result the contract sum was overpriced by the amount of the contingency sum.

The respective District Education Officers did not provide the progress and acquittal reports for $200,000 used for repairs and maintenance work on 3 schools within the declared World Heritage Zones.

The contractual agreement for capital construction did not include the payment of performance bond clause and the agreements did not state the expected date of commencement and completion of the projects.
Bus fare coupons and ticket butts for the year 2013 were destroyed without proper approvals.

This has been the practice since the inception of the bus fare scheme in 2010.

The Ministry was not able to provide a breakdown of the total number of bus fare coupons processed and the total payments made by the divisions to the transport providers despite several requests.

The Ministry does not have a standard grant reporting framework for schools to indicate how the grant funds were utilized.
The Ministry paid $20,950 to Davui Printery for printing of TVET Achievement Level Booklets.

The purchase orders were split to ensure the amount is within the authorized limits of the Director TVET.

There were inadequate segregation of duties for purchase of goods and services in the TVET section resulting in double payments to vendors, unsubstantiated repair works, fraudulent dealings with Korea Auto Traders and fictitious quotations used for purchase of stationaries.
desktops Quotations from 2012 were used to procure goods and services in 2013.

Laptops computers were purchased from unauthorized suppliers.

Tenders were not called for contracts exceeding $50,000.

and Department of Water and Sewerage The Department purchased equipment worth $230,359 to carry out quality testing of water.

However, The consultant is yet to the Department is yet to set up the Laboratory to carry out the tests.
commence work to formulate the regulatory legislation for water and sewerage services.

22 Department of Energy An unreconciled variance of $981,333 existed between the main trust fund account general ledger and the bank statement as at 31/12/13.

The bank reconciliation for the main trust fund account was not prepared for 2013.

The Department reengaged retired officers without the approval of the Public Service Commission.
Prior approval for variations to the approved tender specification for the supply, installation and commissioning of 1200 Solar Photovoltaic Home Systems was not obtained from the Government Tender Board.

The Department paid $1,468,149.43 or 40% of the tender value to Powerlite Generators (Fiji) Limited before the components of Solar Photovoltaic Home Systems were delivered.
Payments for Mauna House Wiring Projects were made without inspection reports from the project supervisor and the contract document for Mauna House Wiring Projects did not outline the date of commencement and completion of the entire projects.

The Department purchased 15 complete sets of 50m Wind Monitoring System out of which only 1 has been installed as the Department is yet to identify the sites for installing the remaining 14 System.
The Department allowed variations totaling $365,739 for the construction of access road for the Somosomo Hydropower Station.

There was no contingency sum set aside to cater for the variation.

The Department on 05/08/13 paid $1,196,113 to Fiji Electricity Authority for the Nayala Grid Extension.

However as at 20/05/14, FEA was yet to commence with the work.
In addition the contract agreement signed between the Department and FEA did not include important clauses such as performance bond, retention sum, delay damages, project commencement and completion dates.

The Government Tender Board (GTB) approved the installation of PV Solar Home Systems for 649 households situated in Vanua Levu and 351 households situated in Maritime Areas.
During the installation phase the Department cancelled all 649 applications for the household situated in Vanua Levu without the approval of GTB.

The Department did not carry out proper due diligence exercise before setting up the Biofuel Testing Laboratory.

Ministry of Youth and Sports VAT returns filed by the Ministry and total expenses revealed a variance of $467,394.66.
The Ministry did not maintain an expenditure ledger that could be used to reconcile its expenditure with that recorded in the Financial Management Information System general ledger.

The Ministry paid consulting fees totalling $30,163 to Mr. James Smith to provide strategic direction and advice on the implementation of the Sports policy.

However, no report or evidence of task completed by the consultant was produced for audit verification.
The Ministry developed only 1 rural sports field out of the 8 planned for the year 2013.

In addition the contract agreement with contractor to develop the sports field did not outline penalty for late completion of projects and retention clause.

The Ministry failed to provide the scope of works and breakdown of the total cost incurred in terms of labour costs, material and plant hire for the upgrading works at Naleba and Naqere Training Centre.
23 The upgrading works at the National Youth Band was not supervised by an experienced builder as defects were noted during the site inspection carried out by audit.

Ministry of Local Government, Urban Development and Environment An unreconciled variance of $358,893 existed between the Environment’s main Trust Fund Account general ledger and bank statement balance as at 3/12/13.
The Ministry did not maintain an expenditure ledger that could be used to reconcile its expenditure with that recorded in the Financial Management Information System general ledger.

The Ministry re-engaged a retired technical officer and paid incorrect salary which resulted in an overpayment of $3,232.

There was poor management of funds allocated for the 9th Pacific Islands Conference on Nature Conservation and Protected Areas.
The Ministry did not properly manage the design and construction of Naboro Landfill Phase 2 project as an Engineer was not appointed to monitor and supervise the project and contractor did not use appropriate materials as required by the special conditions of the contract.

The revenues collected as gate fees from the operations of Naboro Landfill were not deposited into the nominated bank account by the contractor.
In addition, separate records were not kept and reconciliation prepared to ascertain the accuracy of the daily gate fees collected by the contractor.

The Ministry failed to obtain approval from Ministry of Finance to incur expenditure for organising Fiji National Faith Based Organisation Environment Stewardship Summit for which funds were not allocated in the budget.
Grant agreement between the Ministry and Suva City Council for $450,000 to construct the Market Shelter for weekend vendors was not made and Suva City Council failed to provide acquittals with details of grant money expended and the balance available.

Several instances were noted where funds allocated for implementing Environment Management Act were used for procuring goods and services not related to Environment Management Act.
Several journal vouchers were raised during the year without supporting documents and approval from Senior Accountant.

Department of Housing Review of the Omkar Squatter Upgrading Subdivision project revealed that the Department failed to renew the consultancy contract with Ian Macallan & Co (Fiji) Limited.

The People’s Community Network (PCN) received $642,447.17 for Lagilagi Housing Project.

The PCN failed to provide the audited financial statements for the funds received.
The contractor failed to complete the construction of 7 low cost houses at Wailekutu Settlement despite the contractor been paid $75,600 or 63% of the contract sum.

National Joint Committee paid capital grants totaling $116,826.44 to two City/Town Committees in 2012.

However, grant agreements were not entered into outlining essential particulars, including the purpose of capital grant, duration of the projects and monitoring processes.
24 CONTENTS Volume 1: Audit Report on the Whole of Government Financial Statements and Annual Appropriation Statement Part 1: Part 2: Volume 2: 1.

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Whole of Government Financial Statements and Annual Appropriation Statement for the Republic of Fiji for the Year Ended 31 December 2013 Report of the Whole of Government Financial Statements and Annual Appropriation Statement Office of the President Office of the Prime Minister and Public Service Commission Office of the Attorney General and the Solicitor General Ministry of Finance Ministry of i-Taukei Affairs Ministry of Defence, National Security and Immigration Ministry of Labour, Industrial Relations and Employment Ministry of Foreign Affairs, International Co-operation and Civil Aviation Elections Office Judiciary Legislature Office of Accountability and Transparency Office of the Director of Public Prosecutions Ministry of Justice Ministry of Information Ministry of National Planning Ministry of Rural and Maritime Development and National Disaster Management Fiji Military Forces Fiji Police Force Ministry of Education, National Heritage, Culture and Arts, and Higher Education Institution Ministry of Health Ministry of Local Government, Urban Development and Housing Ministry of Social Welfare, Women and Poverty Alleviation Department of Youth and Sports Government Shipping Services Ministry of Public Utilities and Energy Ministry of Industry and Trade Ministry of Public Enterprises, Tourism and Communication Ministry of Works and Transport Ministry of Agriculture Ministry of Lands and Mineral Resources Ministry of Fisheries and Forestry Ministry of Sugar VOLUME 2 1.
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Office of the President Office of the Prime Minister and Public Service Commission Office of the Attorney General and the Solicitor General Ministry of Finance Ministry of i-Taukei Affairs Ministry of Defence, National Security and Immigration Ministry of Labour, Industrial Relations and Employment Ministry of Foreign Affairs, International Co-operation and Civil Aviation Elections Office Judiciary Legislature Office of Accountability and Transparency Office of the Director of Public Prosecutions Ministry of Justice Ministry of Information Ministry of National Planning Ministry of Rural and Maritime Development and National Disaster Management Fiji Military Forces Fiji Police Force REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 1 Office of the President Roles and Responsibilities The Office of the President provides the necessary administrative support to His Excellency, the President in the performance of constitutional functions.
The President is vested with the Executive Authority of the State and is the Commander- in-Chief of the Republic of Fiji Military Forces and the Chancellor of the Order of Fiji.

In addition to the constitutional and ceremonial roles, the office plays a symbolic role in the promotion of national reconciliation to bring unity among the different ethnic groups in Fiji through the People’s Charter for Change, Peace and Progress.
Table of Contents 1.1 1.2 1.3 PART A: FINANCIAL STATEMENT ................................................................................................................................... 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 1 Appropriation Statement ....................................................................................................................................... 2 PART B: AUDIT FINDINGS ................................................................................................................................................. 3 Overstatement of Expenditure .............................................................................................................................. 3 Anomalies in Procurement and Accounting for Goods and Services .................................................................... 4 Chinese Aid – Main Trust Fund Account ............................................................................................................... 5 Overdrawn Operating Trust Fund Account ........................................................................................................... 5 Unverified Payments in the General Ledger ......................................................................................................... 6 Non- Preparation of Reconciliation and Clearance of Balances in Revolving Fund Account ............................... 7 .................................................................................................................................................................... 9 Appendix 1.1: Anomalies in Procurement and Accounting for Goods and Services .......................................................... 9 Appendix 1.2: Anomalies in Payment of Meal Claims ...................................................................................................... 11 1.4 1.5 1.6 1.7 1.8 1.9 APPENDICES PART A: FINANCIAL STATEMENT 1.1 Audit Opinion The audit of the 2013 accounts of the Office of the President resulted in the issue of an unqualified audit report.
The attention of the Office was however drawn to the following:  Outstanding advances totalling $146,818 was not reconciled and journalized to the relevant expenditure allocations during the year.

As such, expenditure is understated in the Statement of Receipts and Expenditure.

 The total expenditure includes a book entry for a budget carry-over of $453,070 to be spent in 2014.

Consequently actual expenditure has been overstated by the same amount in 2013.
1.2 Statement of Receipts and Expenditure The Office of the President incurred a total expenditure of $2,408,051 in 2013.

Refer to Table 1.1 for details.
Office of the President Section 01: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 1.1: Statement of Receipt and Expenditure for 2013 Description EXPENDITURES Operating Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchase Capital Grants and Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURES 2013 ($) 2012 ($) 444,303 259,016 289,067 325,939 137,730 --- 1,456,055 764,333 --- --- 764,333 187,663 2,408,051 468,649 191,250 217,211 239,703 76,150 --- 1,192,963 236,133 --- --- 236,133 109,473 1,538,569 Total expenditure increased by $869,482 or 57% in 2013 due to increases in government wage earner, travel, maintenance, and capital construction expenditure.
The increases were due to 10% increase in wages for all unestablished staff in the public service, overseas travel for His Excellency the President, up keeping of office and government house grounds, purchase of service medals, and capital construction work for the maisonette staff quarters.

The upgrading of roofing for the government house and the repair of swimming pool were also carried out.
1.3 Appropriation Statement The Office of the President incurred expenditure totalling $2,408,051 in 2013 against the budget of $2,475,120 resulting in a savings of $67,069 or 3%.

Details of expenditure against the budget estimates are provided in Table 1.2.
Table 1.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Total Operating Expenditure Capital Expenditure Capital Construction Total Capital Expenditure Budget Estimate ($) 507,965 204,320 291,900 330,377 147,775 1,482,337 Changes ($) (59,767) 57,475 10,000 (303) (9,697) (2,292) Revised Estimate ($) 448,198 261,795 301,900 330,074 138,078 1,480,045 Actual Expenditure ($) 444,303 259,016 289,067 325,939 137,730 1,456,055 Carry Over ($) Lapsed Appropriation ($) --- --- --- --- --- --- 3,895 2,779 12,833 4,135 348 23,990 300,000 300,000 465,147 465,147 765,147 765,147 764,333 764,333 393,974 393,974 814 814 13 Value Added Tax 160,500 69,428 229,928 187,663 59,096 42,265 TOTAL EXPENDITURE 1,942,837 532,283 2,475,120 2,408,051 453,070 67,069 Office of the President Section 01: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In 2013, the Cabinet approved the re-deployment of $532,283 from Office of the President’s Budget to other Ministries and Departments.
PART B: AUDIT FINDINGS 1.4 Overstatement of Expenditure If an amount appropriated by an Annual Appropriation Act for a financial year has not been used in that financial year; or is unlikely to be used in that financial year, the Minister may authorise the carry- over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date, and the amount authorised for carry-over may be used accordingly in that following year, subject to such conditions as the Minister specifies in the authorisation.1 The purpose of the carry-over policy is to ensure that funds requested for this initiative are reflected in the budget allocation of requesting Ministries and Departments for the respective year.2 The Ministry of Finance approved the carry-over of $453,070 for upgrading of roofing of government house, repair and maintenance of swimming pool and construction of quarters respectively for the Office of the President to be utilized in year 2014.
The audit noted that the Office of the President recorded $453,070 as expenditure for year 2013 in the general ledger (FMIS)3 contrary to the carry-over policy.

Refer to Table 1.3 for details.
Table 1.3: Accounting Entry for Carry – Over of Funds Description Allocation 1-01101-01101-080999 1-01101-01101-080222 1-01101-01101-080499 1-01101-01101-130101 1-01101-60999-840103 Total Bachelors Quarters Refurbishment Upgrade of Roofing of Government House Overhang Car Park Value Added Tax Input Tax Standard Liability Group 84 DR ($) 118,322 130,435 145,217 59,096 453,070 CR ($) 453,070 453,070 The audit was also unable to substantiate the capital construction payment of $400,000 to the Public Works Department since the acquittals and supporting documents were not provided for verification.
As such, the capital construction and Value Added Tax expenditure is overstated by $393,974 and $59,096 in the general ledger (FMIS).

Recommendations  The Principal Assistant Secretary in consultation with the Ministry of Finance should ensure that carry-over expenditure is appropriated in the budget of the following year.

 The Principal Assistant Secretary should ensure that all the records are kept properly by the Office and provided for audit verification upon request.
1 Financial Management Act 2004 – Section 19 (1) 2 Ministry of Finance – Carry-over Policy, January 2012 3 Financial Management Information System accessed on 27/01/14 Office of the President Section 01: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Office Comments The findings and recommendations are noted with appreciation.
The Office will ensure it complies with the relevant guidelines in the future through close and continuous consultation with the Ministry of Finance.

The issue has been discussed with staff of FMIS as the Office has no control of the GL system.

We were advised to declare the carryover sum in 2013 which we did.

We had struggled to improve our record keeping system in the past years but we have managed to improve.

If given the time, we may produce the documents for verification.
1.5 Anomalies in Procurement and Accounting for Goods and Services The accounts officer preparing payment voucher must ensure that all information required under Finance Instruction 14(1) has been included on the payment voucher or attached to it, before passing it to Accounting Head or accounts supervisor for certification.
The Accounting Head or accounts supervisor must not certify a payment as correct unless they are satisfied that: It is in accordance with the LPO, indent, contract, invoice or other authorization; i. ii.

There is documentation that the goods, services or works have been received; iii.

Sufficient uncommitted funds are available for payment of the contract; iv.
The accounts is not sufficient and has not been previously paid; v. The expenditure it is charged to is correct.4 Public tenders must be called for any procurement of goods, services or works valued at $50,001 or more, unless a Tender Board has approved an exemption in accordance with Procurement Regulations 30 (1).5 The audit noted that the Office failed to comply with its Finance Manual 2011 in accounting for the procurement of goods and services.

Refer to Appendix 1.1 for details.


In addition, the audit noted that the Office failed to properly scrutinize the meal claim payments.

Refer to Appendix 1.2 for details.

Any deviation from the established procedures increases the risk of loss of public funds and assets through misappropriation, mismanagement and fraud.

Recommendations  The Principal Assistant Secretary should ensure that it complies with its Finance Manual at all times.
Any deviation should be properly authorized and supported with documentary evidence.

 The Principal Assistant Secretary should ensure that all assets such as computers, when purchased, are properly taken on charge and all the relevant information are recorded in the Fixed Assets Register.
4 Office of the President, Finance Manual 2011 - Section 2.8.3 and 2.8.4 5 Office of the President, Finance Manual 2011 - Section 2.3.1 Office of the President Section 01: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The internal control procedure in the Accounts Section, specifically supervisory checks should be strengthened to avoid such discrepancies.
 The Principal Assistant Secretary should strengthen supervisory checks for the payment of meal allowances and travel claims.

Office Comments The findings and recommendation are noted with appreciation.

We will ensure that all relevant details pertinent to a payment voucher are attached and thoroughly checked and financial instruction duly followed.

1.6 Chinese Aid – Main Trust Fund Account The ledger reconciliation statement shall be forwarded to the Senior Assistant Secretary.
The Senior Assistant Secretary must ensure that all balances are accurate and adequately supported and any misallocations or outstanding balances from the previous month have been dealt with.6 The audit noted a total of $3,632,2427 operated as true trust fund account by the Office of the President.

However, this trust fund account balance relates to the Office of the Prime Minister.
Despite the balance being reflected under the Office of the President since 2007, the Office has not taken measures to rectify the error.

Failure to rectify general ledger balances misstates financial statement balances of the Office.

Recommendation The Senior Assistant Secretary in consultation with the Ministry of Finance and Office of the Prime Minister should rectify the main trust fund account balance to the correct general ledger account.
Office Comments The findings and recommendation are noted with appreciation.

We will approach the Accounts section of the Prime Minister’s Office to have the issue sorted.

1.7 Overdrawn Operating Trust Fund Account Trust Fund Accounts compromise monies, which are not the property of the state and not utilized for the purpose of government.

In addition, Trust money is to be accounted for separately from public money and other money,8 and by convention should always have credit balances.
Thus, the trust fund accounts should not at any time be overdrawn.9 Where charges are for payments to organizations through salary deductions, the relevant creditor account shall be credited.

When actual payment is made to the organization, the creditor account shall be debited.10 Within three days, the Executive Officer shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.
The ledger reconciliation statement shall be 6 Office of the President, Finance Manual 2011 – Section 16.3.6 7 Financial Management Information System, General Ledger Allocation, 9-01000-00000-890000 accessed on 15/04/14 8 Financial Management Act 2004 - Section 25 (1) 9 Finance Circular No.
4/98 of 30/03/98 10 Office of the President, Finance Manual 2011 – Section 4.7.3 Office of the President Section 01: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ prepared by the Executive Officer and forwarded to the Senior Assistant Secretary.
The Senior Assistant Secretary must ensure that all balances are accurate and adequately supported and any misallocations or outstanding balances from the previous month have been dealt with.11 The Office Operating Trust Fund Account as at 31/12/13 had an overdrawn (debit) balance of $39,137 compared to a balance of $14,287 in 2012.

Refer to Table 1.4 for details of balances over the five year period.
Table 1.4: Trust Fund Account Over The 5 Year Period Year Amount ($) (569) 11,357 23,160 14,287 39,137 2009 2010 2011 2012 2013 In addition, the trust fund account continues to be overdrawn since 2010.

This could be attributed to the Office failure to perform trust fund account reconciliation.

Despite this being highlighted in the previous year’s audit reports, the Office failed to reconcile the overdrawn balances.
Overdrawn trust fund accounts indicate that more payments have been made from the trust fund account then authorized.

Also, these could be operating expenditures paid from the trust fund account, understating expenditure reflected in the Statement of Revenue and Expenditure.

Recommendations  The Senior Assistant Secretary should ensure that monthly reconciliations are carried out and any overdrawn trust fund accounts are investigated and adjusted accordingly.
 The internal control procedures in the Accounts Sections, specifically supervisory checks should be strengthened to avoid such discrepancies.

Office Comments The findings and recommendations are noted with appreciation.

The monthly reconciliations are now being carried out as recommended.

The office will continue to ensure greater compliance in the future.
1.8 Unverified Payments in the General Ledger The Senior Assistant Secretary (SAS) is responsible for the safekeeping and proper maintenance of all accounting records or documents.12 The audit could not verify some of the financial transaction recorded in the general ledger totalling ($11,547) as the Office failed to provide the payment vouchers and supporting documents during the audit.

Refer to Table 1.5 for details.
11 Office of the President, Finance Manual 2011 – Section 16.3.3 to 16.3.6 12 Office of the President, Finance Manual 2011 – Section 18.1.3 Office of the President Section 01: Page 6 Trust Fund Account-5,00005,00010,00015,00020,00025,00030,00035,00040,00045,00020092010201120122013YearAmount ($) REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 1.5: Supporting documents not provided Period SLG 84 08/2013 09/2013 10/2013 11/2013 12/2013 12/2013 SAG 57 09/2013 12/2013 12/2013 TOTAL Voucher Reference No.
Amount ($) JV 12/08 101114 JV 02/10 10120 01030 10122 AP0043 01023 01024 (10,550.00) 10,541.68 (10,000.00) 10,874.00 5,587.77 12,000.00 10,000.00 (10,000.00) (30,000.00) (11,546.55) In the absence of vouchers, expenditure recorded in the Statement of Receipts and Expenditure could not be substantiated.

Recommendation The Principal Assistant Secretary should ensure that all the records are kept properly by the Office and provided for audit verification on request.
Office Comments The findings and recommendations are noted with appreciation.

We will ensure that all records are properly kept.

1.9 Non- Preparation of Reconciliation and Clearance of Balances in Revolving Fund Account Loans or advances may be provided to staff to assist in carrying out their official duties or as part of their approved remuneration.
The repayment of these advances must be actively pursued to reduce the risk of losses from irrecoverable debts.13 A travelling officer shall recoup the travel advance within seven days of completing travel by submission of an acquittal report with supporting documents.
If an advance has not been fully expended, the travelling officer must repay the balance within seven days of completing travel.14 Upon clearance of the advance, the Clerical Officer shall update the debtors register, offset the advance account and debit the appropriate expenditure account.15 The Office Revolving Fund Account (RFA) had a credit balance of ($306,252) as at 31/12/13.

Refer to Table 1.6 for the balances over the last five years.
13 Office of the President, Finance Manual 2011 – Part 10, Introductory Paragraph 14 Office of the President, Finance Manual 2011 – Section 10.1.11 and 10.1.2 15 Office of the President, Finance Manual 2011 – Section 10.1.15 Office of the President Section 01: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 1.6: RFA – Advance Account over the 5 Year Period Year 2009 2010 2011 2012 2013 Amount ($) 287,052 288,115 288,115 288,241 (306,252) The Office did not prepare the reconciliations to reconcile the revolving fund account.
In addition, the audit noted that none of the overseas accountable advance was retired.

Refer to Table 1.7 for few examples.

Table 1.7: Accountable Advances Not Retired Date 10/05/13 14/05/13 23/10/13 23/10/13 TOTAL Cheque No.
64816 68443 72131 72216 Description Payment of accountable advance to the Official Secretary for air fare charges for HE, A/OS, ADC and Chief Security whilst on TOD on 17 -27 May 2013 to Thailand Accountable advance whilst accompanying HE to Thailand on 17 – 27 May 2013 Accountable advance to cater for HE’s expenses while on visitation to the Solomon Island and Vanuatu on 20 – 26 October Payment of additional accountable advance to cater for accommodation in Vanuatu Amount ($) 20,419 30,000 20,000 30,000 100,419 The above shows that the Office has failed to maintain, record, reconcile and journalize advances to the relevant expenditure allocations.
Thus, the travel expenditure recorded in the Statement of Receipts and Expenditure of the Office’s financial statements cannot be relied upon to be fairly stated.

Recommendations  The Senior Assistant Secretary should ensure that the advance account balance is reconciled and immediate recovery instigated against officers who failed to retire advances.

Surcharge action should be instigated against officers for the un-reconciled and non- recovery of balances.
 Office Comments The findings and recommendations are noted with appreciation.

We will ensure that we act accordingly this year in the timely retirement of advances.

We had exhausted the travel vote of which the retirement was to be made.

We had requested Ministry of Finance for additional funds for the clearance of the same.
Office of the President Section 01: Page 8 (400,000) (300,000) (200,000) (100,000) - 100,000 200,000 300,000 400,00020092010201120122013Revolving Fund Account REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES Appendix 1.1: Anomalies in Procurement and Accounting for Goods and Services Date 01/03/13 13/09/13 16/12/13 12/03/13 Cheque No.
66749 071507 73345 66938 Payee Description Mercure Hotel Payment of accommodation Payment of accommodation Payment of accommodation Mercure Hotel Payment of accommodation Anomalies Amount ($) 2,046 No adequate supporting documents 2,898 3,879 1,806 Audit noted that 2012 accounts were detailing scope of travel 20/03/13 67133 Mercure Hotel Payment of accommodation 2,699  No memo/ minute sighted to detail paid in 2013 11/06/13 69222 Mercure Hotel Payment of accommodation Payment of airplane tickets for First Lady to attend the Red in Beijing, Cross Seminar China on 3-7/09/13 ticket Airline for Salesia Draunidalo and Mr. Alexandra Masuria Payment of account being air- plane ticket Reimbursement of airfare and perdiem allowance to High Commissioner, PNG whilst on official tour with the President Payment of account being airfares and entourage whilst attending ICCAP meet in Thailand H.E.
for scope of travel, officers and costs.

 No LPO sighted 7,616  No adequate supporting documents detailing reason for visit.

 No LPO & invoice sighted 15,706  Only one quotation obtained  No supporting documents sighted on First Daughter air passage from HK to China 15,706 Only one quotation obtained without justification of not obtaining any competitive quotations.
one 8,762  Only quotation obtained justification of not without any obtaining competitive quotations  No travel memo sighted 12,751 PV not signed by the authorising officer.

22,559  Only one quotation obtained justification of not without any obtaining competitive quotations;  No travel memo sighted;  PV not signed by authorising officer.
of perdiem Payment whilst allowance accompanying HE to Thailand 4,702  No adequate supporting documents 4,702 sighted detailing scope of travel;  PV not signed by the authorising officer.
4,702 PV not signed by the authorising for purchase of for cutter Payments 80kw08 brush landscape sections Purchase of gardening tools for the landscape section Repair of vehicle GN004 Catering services for Fiji Day Reception 10/10/13 Payment of account being for electrical for temporary necessities power officer Items not recorded in the Fixed Asset Register.
3,200 2,769 3,590 Payment voucher not stamped “paid” 3,750 No competitive quote sighted 7,522 No competitive quotations sighted Section 01: Page 9 12/09/13 71463 Lodhia Travel Services 12/09/13 71463 16/10/13 72105 23/10/13 72217 01/11/13 72432 Lodhia Travel Services Jad International Travel Services Ministry Foreign Affairs of Jad International 08/11/13 72581 08/11/13 072583 11/11/13 72589 09/08/13 70700 Ifereimi Sakumeni Penesio Baleinabuli Adrea Vasuitoga Carpenters Hardware 12/12/13 73276 Vinod Patel 17/08/13 09/10/13 71410 71994 14/10/13 72048 Automech Vitinia Buadromo Refrigeration Electrical Services Ltd Office of the President REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Payee Description Amount ($) Anomalies Date Cheque No.
14/10/13 72047 23/04/13 67993 23/08/13 071041 (R.E.S.L) Lincoln Refrigeration Ltd Carsdos Bar and Grill Vitinia Buadromo constitutional reception 6/9/13 Payment of being supply of 40kg ice-maker for household section Payment of account being provide with dinner and drinks hosted by H.E Payment of being provide catering for PPSEAWA on 26/08/13 09/10/13 71995 30/05/13 68914 Josaia Qalikaono Vitinia Buadromo 11/11/13 72618 Ula Tiko 10/09/13 71414 Ula Tiko 10/09/13 71417 Josaia Qalikaono 16/09/13 71508 Ula Tiko for during Payment of account being provide catering services for Fiji Day Reception Payment of account being provide catering the college of honour’s investitute awards on the 30/05/13 flower Payment arrangement the investiture ceremony 01/11/13 Payment for pot plants for Constitution Reception 06/09/13 Payment of finger food for 300 pax payment) Constitution Reception on 06/09/13 Payment flower arrangement for Constitution Reception 06/09/13 (balance for 4,990  No minute expenditure sighted detailing  Items not recorded in FAR  No minute expenditure sighted detailing 5,540 2,437  No minute expenditure.
sighted detailing  LPO raised after receipt of invoice  No competitive quotes sighted.

3,000  No minute expenditure sighted detailing  No competitive quote sighted 2,700  LPO raised after receipt of invoice.
1,435  No competitive quotes sighted 1,074  No quotation or competitive quotes sighted 2,283  No competitive quotes sighted  LPO was raised on 09/09/13 while invoice was received on 05/09/13 1,604  No quotation or competitive quotes sighted  LPO was raised on 06/09/13 while invoice was received on 05/09/13 Total 156,428 Office of the President Section 01: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 1.2: Anomalies in Payment of Meal Claims Cheque No.
Date Payee 67236 25/03/13 Saimoni Ratukadreu Anomalies Meal Allowance ($) 384  No evidence of travelling tickets and approvals prior to travelling  Incorrect recording of $240 travelling expense to meal allowance  Ambiguity in travel tickets.

Officer is claiming $15 return from Suva to Deuba, however as per enquiry with minivan operators, one way ticket to/from Suva from/to Deuba is $5.

67526 05-04-13 336  No evidence of travelling tickets.
68224 03-05-13  Incorrect recording of $210 travelling expense to meal allowance.

 Ambiguity in travel tickets.

Officer is claiming $15 return from Suva to Deuba; however as per enquiry with minivan operators, one way ticket to/from Suva from/to Deuba is $5.Officer was already paid for 2 days of meal and travel by cheque 67236 of 25/3/13 hence overpayment of $108 including extra travelling fare claims 147  Incorrect recording of $27 of meal allowance to subsistence allocation.
 No payment voucher prepared, prior approval of travelling and no evidence of travelling bus tickets 68800 24-05-13 279  Payment voucher not prepared and no evidence of travelling bus tickets.

 Incorrect recording of $180 travelling expenses to meal allowance allocation.

 Double payment of meal allowance for 16/5/13 and 17/5/13 which was already paid by cheque 68513 of 16/5/13.
 Details of meal claim missing and no independent verification of statutory declaration submitted by officer hence total overpayment of $65 68513 16-05-13 Official 476 Approval for 2 people only, however meal claim paid to 3 officers Secretary hence overpayment of $45.
66652 67751 68263 69230 69020 71249 71405 71562 72199 72649 73390 73538 TOTAL 26-02-13 ANZ 16-04-13 ANZ 07-05-13 ANZ 11-06-13 ANZ 04-06-13 ANZ 03-09-13 ANZ 10-09-13 ANZ 17-09-13 ANZ 22-10-13 ANZ 12-11-13 ANZ 17-12-13 ANZ 23-12-13 ANZ No meal claim forms prepared for all this payments.
315 288 468 378 324 594 701 792 738 297 621 324 7,462 Office of the President Section 01: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 2 Office of the Prime Minister and Public Service Commission Roles and Responsibilities Office of the Prime Minister The primary role of the Prime Minister’s Office is to provide sound policy and administrative support to the Prime Minister and to the Cabinet.
The Prime Minister’s Office has a central place in facilitating the decision-making responsibility of Cabinet and in ensuring the implementation of Government’s policies.

These responsibilities are undertaken through activities within the Prime Minister’s Office, namely Administration and the Cabinet Office.
This includes the facilitation of infrastructure development, administration of poverty alleviation programmes and the promotion and monitoring of government initiatives by the Strategic Framework for Change Coordinating Office are also relevant in this regard.

Public Service Commission The Public Service Commission under Section 12, subsection 1, 2, 4 and 5 of the State Services Decree 2009 (Decree No 6) is a central agency responsible for the following functions.
1. a) To make appointments to public officers; b) To remove persons from public offices; c) To take disciplinary action against holders of public offices.

2.

Appointments to positions in the public service at the rank of Director and above shall be made by the Public Service Commission upon agreement of the Prime Minister.

3.
3.

Disciplinary action against persons employed in the public service including the rank of Director and above shall be initiated by the Permanent Secretary responsible for the Public Service, and any such disciplinary action shall be heard and determined by the Public Service Commission.

4.
4.

Disciplinary action against persons employed in the public service below the rank of Director shall be initiated by the Permanent Secretary of the Ministry in which the person is employed, and any such disciplinary action shall be heard and determined by the Public Service Commission.

The Public Service Commission’s statutory function is under Section 11 of the Public Service Act, 1999.
Table of Contents 2.1 2.2 2.3 2.4 2.5 PART A: FINANCIAL STATEMENT ........................................................................................................................................ 2 Audit Opinion ............................................................................................................................................................. 2 Statement of Receipts and Expenditure .................................................................................................................... 2 Appropriation Statement ........................................................................................................................................... 3 Trust Fund Account Statement of Receipts and Payments ...................................................................................... 4 Trading and Manufacturing Account (TMA) – Government Quarters ....................................................................... 4 PART B: AUDIT FINDINGS ..................................................................................................................................................... 4 OFFICE OF THE PRIME MINISTER .......................................................................................................................................... 4 2.6 Main Trust Account – Taiwanese Grant .................................................................................................................... 4 2.7 Main Trust Account – Chinese Grant ........................................................................................................................ 6 2.8 Overdrawn Operating Trust Fund Accounts .............................................................................................................. 8 2.9 Drawings Account Reconciliation ............................................................................................................................ 10 2.10 Anomalies in Capital Projects Funded Under the Small Grant Scheme ................................................................. 10 Office of the Prime Minister and Public Service Commission Section 02: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 2.11 Maintenance of the Corporate Credit Card ............................................................................................................. 12 PUBLIC SERVICE COMMISSION ........................................................................................................................................... 13 2.12 Expenditure Ledger not maintained ........................................................................................................................ 13 2.13 Scholarship files not produced for audit .................................................................................................................. 14 2.14 Carry Over of Appropriation and Deposit of Funds in Trading and Manufacturing Account ................................... 14 2.15 TMA arrears of revenue .......................................................................................................................................... 16 APPENDICES ........................................................................................................................................................................... 17 Appendix 2.1: Trust Fund Account for 2013 - Chinese Grant .......................................................................................... 17 Appendix 2.2: Trust Fund Account for 2013 – Taiwan Grant ........................................................................................... 18 Appendix 2.3: Anomalies in Capital Projects Funded Under the Small Grant Scheme ................................................... 19 PART A: FINANCIAL STATEMENT 2.1 Audit Opinion The audit of the 2013 accounts of the Office of the Prime Minister and Public Service Commission resulted in the issue of a qualified audit report.
The bases of qualifications are as follows:  The Chinese Grant and Taiwan Grant trust funds shows ending balances of $4,654,853 and $68,127 respectively as shown in their Statement of Receipts and Payments.

Contrary to section 58 (3) of Finance Instruction 2010, the two trust general ledger accounts were not balanced nor reconciled with their respective bank reconciliations and other subsidiary records.
 There are un-reconciled differences of $6,392,024 between the Drawings account reconciliation with its subsidiary records and the general ledger (FMIS) balance for the Office of the Prime Minister.

Management attention was also drawn to that the Public Service Commission did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

It prepared its financial statements from the FMIS general ledger.
As a result audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

2.2 Statement of Receipts and Expenditure The Office of the Prime Minister and Public Service Commission collected revenue totalling $20,924 and incurred a total expenditure of $66,936,162 in 2013.
Table 2.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers 2013 ($) 2012 ($) 20,924 20,924 433,981 433,981 6,454,445 577,706 1,485,164 25,229,694 682,246 21,301,962 6,084,453 489,037 840,079 24,509,136 537,950 16,741,150 Office of the Prime Minister and Public Service Commission Section 02: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchase Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 1,262,187 56,993,404 2012 ($) 1,110,667 50,312,472 143,825 394,136 5,329,295 5,867,256 4,075,502 66,936,162 5,210,894 639,293 3,986,650 9,836,837 4,826,896 64,976,205 Revenue collection decreased by $413,057 or 95% in 2013 due to the rectification of trading and manufacturing income incorrectly recorded as miscellaneous revenue in previous years.
Total Expenditure increased by $1,959,957 or 3% in 2013 due to increases in overseas travel costs and communication, scholarship payments by the Public Service Commission and small grants assistance provided by the Office of the Prime Minister.

2.3 Appropriation Statement The Office of the Prime Minister and Public Service Commission incurred expenditure totalling $66,936,162 in 2013 against the revised budget of $68,511,733 resulting in a savings of $1,575,571.
Details of expenditure against the budget estimates are provided in Table 2.2.
Table 2.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Construction Purchase Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 6,612,905 554,385 971,576 25,380,510 582,515 17,194,300 2,438,100 53,734,291 --- 400,000 6,170,000 6,570,000 4,465,800 64,770,091 Appropriation Changes ($) (149,277) 41,235 532,886 Revised Estimate ($) 6,463,628 595,620 1,504,462 9,992 25,390,502 719,300 4,152,842 21,347,142 1,295,096 3,581,459 57,315,750 (1,143,004) 136,785 260,870 --- (20,000) 240,870 (80,687) 260,870 400,000 6,150,000 6,810,870 4,385,113 3,741,642 68,511,733 Actual Expenditure ($) Lapsed Appropriation ($) 6,454,445 577,706 1,485,164 25,229,694 682,246 21,301,962 1,262,187 56,993,404 143,825 394,136 5,329,295 5,867,256 4,075,502 66,936,162 9,183 17,914 19,298 160,808 37,504 45,180 32,909 322,346 117,045 5,864 820,705 943,614 309,611 1,575,571 In 2013, Cabinet approved the redeployment of $169,999 from the Office of the Prime Minister’s budget to other Ministries and Departments’ budget and $3,911,641 from other Ministries and Departments’ budget to the Public Service Commission budget.
Office of the Prime Minister and Public Service Commission Section 02: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 2.4 Trust Fund Account Statement of Receipts and Payments The Office of the Prime Minister utilized $1,712,021 in 2013 from the Chinese grant for various projects selected by the Office.

Refer to Appendix 2.1 for details.

In addition, the Office utilized $209,259 from Taiwan Grant on various projects selected by the Office.
Refer to Appendix 2.2 for details.
2.5 Trading and Manufacturing Account (TMA) – Government Quarters Table 2.3: Income Statement Description Income Rental Income Total Income Expenditure Direct Labour Travel and Communication Maintenance and Operations Purchase of Goods & Services Special Expenditures Total Expenditure Net Profit Table 2.4: Balance Sheet Description Asset Cash at Bank Total Asset Liability Deposits and Deductions Equity Accumulated Fund Total Equity and Liability 2013 ($) 2012 ($) 4,527,192 4,527,192 3,563,652 3,563,652 64,011 910 --- 3,812,669 7,960 3,885,550 641,642 7,601 --- (27,380) 3,229,508 322,769 3,532,498 31,154 2013 ($) 2012 ($) 1,873,827 1,873,827 951,157 951,157 58,566 31,150 1,815,261 1,873,827 920,007 951,157 PART B: AUDIT FINDINGS OFFICE OF THE PRIME MINISTER 2.6 Main Trust Account – Taiwanese Grant Each month, the Trust Account shall be balanced and reconciled with the Trust bank accounts.
The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.
Un-reconciled items must be investigated and resolved promptly.1 The audit noted the following anomalies in the Trust Fund reconciliations for the Taiwanese Grant: 1 Finance Instructions 2010 – Section 58(3) Office of the Prime Minister and Public Service Commission Section 02: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  An unreconciled variance of $9,964 exists between the general ledger cash at bank account and the bank reconciliation balance.
Refer to Table 2.5 for details.

Table 2.5: Variance in Taiwanese Grant Cash at Bank Balance Description Cash at bank balance as per general ledger Cash at bank balance as per bank reconciliation Variance Amount ($) 78,091.00 68,127.00 9,964.00  A variance of $11,796.50 exists between the general ledger cash at bank account and the liability account balance.

Refer to Table 2.6 for details.


Table 2.6: Variance in Taiwanese Grant Cash and Liability Description Cash at bank balance as per general ledger Trust fund liability account Variance Amount ($) 78,091.00 66,294.50 11,796.50 In addition, the following anomalies were also noted:  The office has not posted the bank charges and interest received into the general ledger system (FMIS.)

 Stale cheques totalling $17,370 are still shown under unpresented cheques and not adjusted to revenue.
 The independent bank reconciliation prepared by audit revealed variance of $12,086.77 between the cash book reconciliation and the cash at bank balance.

 The Office has not prepared its annual acquittal report to the Taiwan Trade and Mission Office for the year 2013.

The finding indicates that the Accounting Head did not reconcile the office reconciliation balances to the general ledger (FMIS).
As such, the audit was not able to ascertain that all receipts and payments have been accurately accounted and disclosed in the Main Trust Account – Taiwanese Grant.

Recommendations  The Accounting Head should ensure that the Trust Fund Account is reconciled with the FMIS general ledger balances at the end of each month.

 The Accounting Head must investigate and rectify the variances noted.
Office of the Prime Minister and Public Service Commission Section 02: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The 2013 balances for the Office in respect of the individual accounts are as follows:  Cash Book - $80,213.77  General Ledger - $66,294.37  Bank Statement - $101,892.42 The variance highlighted by Audit, the Office did not take action to rectify the difference as of to date.
This is due to the Office taking into account unaudited figure and the OAG are taking the audited figure.

The difference is from the closing balance of the previous years and the opening balance of the current year.

In 2014, the Office will work with OAG on the variances dated back to 2011 so that the record will be in line with the audit record.

The monthly reconciliation has been carried with the General ledger FMIS against the bank statement.
The office has processed the posting of bank charges and interest as per OPM – JV 04/06/2014(attached) The stale cheques totalling $17,370.00 has been written off vide OPM JV 06/06/2014(attached) Management has noted the audit recommendation.

The total said amount revealed as various the office managed to ascertain $11,796.50 which was originated in August 2011(as per attached) the said amount has been cleared vide cheques number ‘000063 dated 09/06/2014 the balance of the variance stands at $290.27.
the office have adjusted $17.00 ( cheque book & Deposit book fee) by JV 05/06/2014 and the interest charges for December 2013 amounting to $57.76 have been adjusted by OPM JV no 04/06/2014 the variance as of date is $215.51.

The annual acquittal report to Taiwan Trade and Mission office is handled by the DCFD unit.

The office whilst carrying out reconciliation is based on the general ledger FMIS balances and the bank statement of each month.
The Accounting head is now working on the rectification of the variances.

2.7 Main Trust Account – Chinese Grant Each month, the trust fund account shall be balanced and reconciled with the trust bank accounts.

The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.
Un-reconciled items must be investigated and resolved promptly.2 The audit noted the following anomalies in the Trust Fund reconciliations for the Chinese grants:  Variance was noted between the general ledger (FMIS) receipts and payments balance and the office cash book records.

Refer to Table 2.7 for details.


Table 2.7: Variance in Trust Fund Receipts and Payments Description Office Cash Book balances General Ledger (FMIS) balances Variance Total Receipts ($) 5,345,094.74 5,361,740.87 16,646.13 Total Payments ($) 1,712,020.97 1,525,303.30 186,717.67  An unreconciled variance of $1,055,235.93 exists between the general ledger cash at bank account and the bank reconciliation balance.

Refer to Table 2.8 for details.
2 Finance Instructions 2010 – Section 58(3) Office of the Prime Minister and Public Service Commission Section 02: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 2.8: Variance in Chinese Grant Cash at Bank Balance Description Cash at bank balance as per general ledger Cash at bank balance as per bank reconciliation Variance Amount ($) 3,599,616.84 4,654,852.77 1,055,235.93  A variance of $32,625.57 exists between the general ledger cash at bank account and the liability account balance.
Refer to Table 2.9 for details.

Table 2.9: Variance between Chinese Grant Cash and Liability Description Cash at bank balance as per general ledger (Net) Trust fund liability account Variance Amount ($) 3,599,616.84 3,632,242.41 32,625.57 In addition, the following anomalies were also noted:  The Chinese Grant Trust Fund Account cash at bank general ledger balance (FMIS) includes a sub account with a credit balance of $2,414,019.90.
 Stale cheques totalling $8,322.23 are still shown under unpresented cheques and not adjusted to revenue.

 The interest earned recorded in the general ledger exceeds the bank statement amount by $397.19.

 The office failed to receipt direct deposits to the bank of $5,308,233.21 resulting in the variances in record between the trust fund receipts and the bank statement balance.
 The nature of payments in the 2013 Trust Fund Statement of receipts and payments were not disclosed appropriately to ensure disclosure consistency and comparability to the 2012 figures.

As such, the audit was not able to ascertain that all receipts and payments have been accurately accounted and disclosed in the Main Trust Account – Chinese Grant.

Recommendations  The Accounting Head should ensure that the Trust Fund Account is reconciled with the FMIS general ledger balances at the end of each month.
 The Accounting Head must investigate and rectify the variances noted.

Management Comment The variance highlighted by audit the office did not take action to rectify the difference as of to date.

This is due to the office taking into account the unaudited figure and the OAG are taking the audited figure.

The difference is from the closing balance of the previous year and the opening balance of the current year.
In 2014 the office will work on the variances dated back to2011 so that the record will be in line with the audit record.

The stale cheques have been cleared by OPM JV 03/07/2014.
Office of the Prime Minister and Public Service Commission Section 02: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In June 2013 the interest amount was $496.49 but the resident withholding tax amount was $99.30 but the office stated the difference as the 2013 Credit Interest.

The office has adjusted the direct deposit amounting to $5,308,233.21 as in July 2013 bank statement.
The OPM JV# 16/10/2013 amounting to $5,312,050.86 inclusive of the direct deposit.

The OAG comment is noted for future disclosures of payments in different sectors.

The office has guaranteed that in future all receipts and payments will be accurately accounted and disclosed.

Management has noted the recommendation.

The monthly reconciliation has been carried with the General Ledger FMIS against the Bank Statement.
2.8 Overdrawn Operating Trust Fund Accounts Trust Fund Accounts compromise monies, which are not the property of the state and not utilized for the purpose of government.

In addition, Trust money is to be accounted for separately from public money and other money,3 and by convention should always have credit balances.

Thus, the trust fund accounts should not at any time be overdrawn.4 As at 31 December 2013, the Office Operating Trust Fund Accounts had overdrawn balances totalling $194,646.05.
Refer Table 2.10 for details: Table 2.10: Overdrawn Operating Trust Fund Accounts Account Description PD Insurance PD Loans & Advances PD Union & Association PD Maintenance 201 PD Tax Arrears/PAYE 390 PD Gov water rates 301 PD FPS credit union Uniform deduction 1-02100-00000-861200 1-02100-00000-861300 1-02100-00000-861500 1-02100-00000-861600 1-02100-00000-861901 1-02201-61999-861106 1-02201-61999-861151 1-02201-61999-861923 1-02201-61999-861924 M-paisa 1-02101-02101-899988 Total Sports trust account Amount ($) 134.98 140.75 140.00 92.00 2,031.59 163.00 97.50 201.92 240.00 191,404.31 194,646.05 Most of the overdrawn balances were brought forward from previous years.
The overdrawing of Operating Trust Funds Accounts may have resulted from incorrect journal entries passed to these accounts or through mis-postings.

Such finding indicates lack of adequate internal control, supervision and a disregard of the procedures in the Finance Instruction.

Recommendations  The Accounting Head should ensure that the Trust Fund Accounts are not overdrawn at any point in time in accordance with Finance Circular 4/98.
3 Financial Management Act 2004 - Section 25 (1) 4 Finance Circular No.

4/98 of 30/03/98 Office of the Prime Minister and Public Service Commission Section 02: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Accounting Head should investigate the overdrawn (debit) trust fund accounts and take appropriate action.
 The internal control procedures in the Accounts Sections, specifically supervisory checks should be strengthened to avoid such discrepancies.

Management Comment Management has noted the audit recommendation.

The office has identified the reasons for overdrawn and have adjusted accordingly.

Refer table below.
Account Description 1-02100-00000-861200 PD Insurance Amount $ 134.98 1-02100-00000-861300 PD Loans & Advances 140.75 1-02100-00000-861500 PD Union & Association 140.00 1-02100-00000-861600 PD Maintenance 92.00 1-02100-00000-861901 201 PD Tax Arrears/PAYE 1-02201-61999-861106 1-02201-61999-861151 1-02201-61999-861923 1-02201-61999-861924 1-02101-02101-899988 390 PD Gov water rates 301 PD FPS credit union Uniform deduction M-paisa Sports trust account Office Comments JV 25/07/2014 - $45.23 JV 12/07/2014 - $30.25 JV 11/07/2014 - $59.50 JV 29/07/2014- JV 15/07/2014- JV 20/07/2014 - $30.00 CR JV19/07/2014 - $50.00 JV 18/07/2014 – $120.00 JV 24/07/2014 - $40.00 JV 23/07/2014 - $40.00 JV 22/07/2014 - $12.00 The office currently rectifying the records.
JV 21/07/2014 2,031.59 163.00 97.50 JV 28/07/2014 201.92 240.00 191,404.31 JV 27/07/2014 JV 26/07/2014 For the Sports Trust A/C we have adjusted part of the misposting from 2012 as per JV 33/06 $342,672.11 resulting $151,267.80 credit Total 194,646.05 Office of the Prime Minister and Public Service Commission Section 02: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 2.9 Drawings Account Reconciliation All bank account must be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by the responsible officer.5 A variance of $6,392,023.79 exist in the Drawings accounts balance between the office reconciliation and the general ledger (FMIS) records.

Refer to Table 2.11 for details.


Table 2.11: Variance in Drawings Account Details FMIS (1-02103-00000-530000) Office’s Reconciliation Variance Amount ($) 25,061,106.30 31,453,130.09 6,392,023.79 The audit further noted that the office failed to produce the signed Board of Survey Report for the Drawings Account for audit.

Lack of supervisory checks in the Accounts section has resulted in the above variances and the non- submission of the signed Board of Survey Report for the Drawings Account.
Recommendations  The Accounting Head should reconcile its monthly Drawings Account reconciliations with the general ledger (FMIS) balances and any variance noted should be investigated and adjusted accordingly.

 The Accounting Head should ensure that the signed Board of Survey Report for the Drawings Account is submitted for audit.

Management Comment Managements has noted the audit recommendation.
As for the variance stated above, the reason being that for FMIS [Financial Management Information System] – it is the FMIS closing balance for the month of December 2013, whereas for the Office if the Prime Ministers Reconciliation – this the running balance as of December 2013.

The increases in the unpresented cheques amount was due to the processing of payments on the last working day of December 2013 and were not presented on the same day.
The total amount of cheques issued on 31/12/2013 stands at $30,775,921.03 and the unpresented cheque amount stands at $677,209.06 thus the office reconciliation of $31,453,130.09.

The Unpresented cheque for January 2014 was $986,766.78.
2.10 Anomalies in Capital Projects Funded Under the Small Grant Scheme It is the responsibility of the contractors or monitoring agencies in any projects carried out to provide: a) A completion report upon completion of the project; b) Work progress updates; c) Acquittals to account for the use of the funds provided towards the project by the funding agency.6 5 Finance Instruction 2010 – Section 32(6) 6 Extracted from the various Memorandum of Understanding between the Office of the Prime Minister and the stakeholders of the projects Office of the Prime Minister and Public Service Commission Section 02: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The funding agency is to draw up a Memorandum of Understanding with the relevant stakeholders to govern the operation of the projects undertaken.
The audit noted various anomalies in the capital projects funded under the Small Grant Scheme.

Refer to Appendix 2.3 for examples.

The absence of work progress reports, acquittals and completion reports makes it difficult to monitor projects and account for the use of government funds.

The non-preparation of Memorandum of Understanding can lead to abuse and corrupt practices in the undertaking of projects without holding those responsible accountable for their action.
Recommendations  The Office should ensure that project requirements are properly adhered to at all times.

 Memorandum of Understanding should be prepared for all projects undertaken by the Office.

Management Comment Management has noted the audit recommendation and will ensure that all future projects documentation and processes are properly followed.

Cost ($) Audit Remarks Response 1.

Project Name, Location & Description Nadoi Village Rewa, Drainage Rewa – excavation, desilting work Secondary 2.
Dawasamu School, – construction of 2 ×TQ, 1 ×3 classroom block Tailevu 3.

St Peter Chanel Primary School – 1 × ablution hardware block, materials for 2×TQ 156,687.50  No work progress updates filed.
 No completion project report attached  Absence of acquittals by monitoring agency (RFMFER) on the use of funds provided toward the project by the Funding Agency(OPM) 122,227.80  Monitoring report to the Funding Agency (OPM) by the owner ( School Committee) not filed  Acquittals for the project by the owner not in place 125,756.32  MOU with RFMFER not to building the teachers quarters not filed presented acquittals Relevant were to accounts as per the claims to Accounts Section.
This project was successfully completed and received by the was people commissioned by the Prime Minister on 20/02/14.

and We normally do not require MOUs with RFMFER since it is a government agency like PWD carrying out work on behalf of Government.

PA Namosi has been this monitoring 4.


Namosi School – Secondary 2 1 × 93,429.74  No update on work done on the staff Office of the Prime Minister and Public Service Commission Section 02: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Project Name, Location & Description classroom block, 1 × TQ Cost ($) Audit Remarks Response quarters by monitoring agency (PA Namosi) in the file.

5.
5.

Vatuwaqa School – works Primary renovation 373,480.25  MOU with RFMFER not filed  Acquittals on administration, ration and contingency costs not attached 6.

Nabitu Primary School, Navosa – Upgrading works 102,302.92  MOU with RFMFER not sighted in file an since project.

In fact there was update from PA received Namosi but it was not it was filed misplaced.

(A copy has been obtained and filed).

Acquittals are with RFMFER.


still We normally do not require MOUs with RFMFER since it is a agency government like PWD carrying out work on behalf of Government.
2.11 Maintenance of the Corporate Credit Card The purpose of the credit card policy is to:  Ensure that only official expenditure related to approved overseas trips are charged against the credit card;  Ensure that credit card reporting is monitored so that fraudulent transactions and misuse is kept to a minimum; and  Guide all credit card holders and accounting officers on the management and maintenance of corporate credit cards.
The Accounting Head must ensure that all authorised official expenses charged against the card are promptly paid for at the end of the month.

It is the responsibility of the designated reconciliation clerk within each ministry and department to examine and reconcile the credit card bank statement and the individual receipts produced by the card user on a monthly basis.
All receipts supplied by the card holder upon return must contain his/her signature to certify that the expense was incurred for official purposes.

Any transaction appearing on the credit card bank statement that is not supported by a signed receipt is to be personally reimbursed by the card holder 7 days upon return.

Proper justification needs to be provided to the reconciliation clerk and the accounting head to support the non-availability of the receipt.
The Office made a total payment of $49,212.85 to ANZ Bank for credit card expenses in 2013 however acquittals and supporting documents for some credit card payments were not made available for audit.

The credit card is used by the Prime minister mainly to facilitate payments for accommodation during his travel.

Table 2.12 outlines these anomalies.


Office of the Prime Minister and Public Service Commission Section 02: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 2.12: Weaknesses in the maintenance of the Credit Card Date Cheque No.
Particulars 18/11/13 72735 Payment to ANZ for top up of visa card 13/11/13 72664 As above 16/01/13 04/07/13 30/07/13 09/12/13 Total 65867 69040 70462 73179 As above As above As above As above Amount ($) 5,472.43 No acquittals of expenses were Remarks 1,539.60 attached.

Late payment fee of $20 was imposed.

No acquittals of expenses were attached.


7,165.97 As above 239.57 As above 6,955.74 As above 3,108.04 As above 24,481.35 The audit further noted that the Accounts Section failed to prepare monthly reconciliations of the credit card payment.

The completeness and accuracy of the credit card top up payments to the bank could not be substantiated due to the absence of acquittals and the non-performance of the reconciliations by the Accounts Section.
Non adherence to the credit card policy could result in misappropriation of funds.

Recommendations  The Personal Staff Officers of the Prime Minister or Officers who accompany the Prime Minister on official overseas trips must ensure that all supporting documents in relation to the trips are maintained and provided to the Accounts Section immediately after returning from the trip.

 The Principal Accounts Officer must prepare the monthly reconciliations of the credit card payments.
Management Comment No comment received from management.

PUBLIC SERVICE COMMISSION 2.12 Expenditure Ledger not maintained The Assistant Accounts Officer shall enter details on payment vouchers in an Expenditure Ledger.
The ledger shall record: (i) (ii) (iii) (iv) (v) Date of payment and name of payee; Type and amount of payment; Cheque and payment voucher number; Expenditure account; Cumulative totals.7 7 PSC Finance Manual 2011 – Section 2.8.11 Office of the Prime Minister and Public Service Commission Section 02: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The audit noted that the Commission does not maintain an expenditure ledger.
As a result, the Commission could not reconcile the expenditure in the FMIS maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Ministry should maintain an expenditure ledger up to date and reconcile its expenditure with the FMIS records on a monthly basis.
Management Comment The Auditors comment is noted, Accounts Section now maintain a register Ledger to highlight all payment made.
2.13 Scholarship files not produced for audit In the performance of his or her duties, the Auditor-General or a person authorized by him or her has access to all records, books, vouchers, stores or other government property in the possession or control of any person or authority.8 Audit made several requests to the Tertiary Scholarships and Loans Board (TSLB) for selected scholarship files of students to be provided for audit inspection however, these were not provided.
The files requested for audit included 25 awards for PSC scholarship and 15 awards for the Multi-ethnic scholarship.

The scholarship awarded in 2013 was not audited.

The audit could not verify whether the requirements or criteria of the two scholarships were met when selecting or awarding scholarships.

Recommendation The Commission should ensure that all documents necessary for the successful completion of an audit should be provided to the Auditor General or a person authorized by him.
Commission Comments All scholarship file is with the TSLB, Auditor General should liaised directly with them rather than PSC to ensure that all document is provided to OAG.
2.14 Carry Over of Appropriation and Deposit of Funds in Trading and Manufacturing Account If an amount appropriated by an Annual Appropriation Act for a financial year – (a) has not been used in that financial year; or (b) is unlikely to be used in that financial year; 8 Constitution of the Republic of Fiji – section 152(4) Office of the Prime Minister and Public Service Commission Section 02: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ the Minister may authorize the carry over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date and the amount authorised for carry over may be used accordingly in that following year.
Trading and manufacturing accounts (TMA) are operated on a semi commercial basis.

It should run on its own.

Therefore operating funds should not be deposited into the trading and manufacturing accounts.

The contract entered into by the Commission with Vinz Works, a contractor for the refurbishment of Kelton House did not clearly show the timeline for the project to be completed.

Discussions held with officers concerned revealed that the project was delayed by the Commission.
The Commission also entered into a contract with Classic Furniture Resort for the Carnarvon fencing in December 2013.

The audit noted that as the end of the year was approaching the Commission deposited funds for these projects into the trading and manufacturing account in order for these to be used the following year.

This was done as the Ministry of Finance would take back the funds that are not used at the end of the year.

Refer to Table 2.13 for details.


Table 2.13: Payment Details Chq # Chq Date Amount ($) Details 1.

036545 31.12.13.

67,366.00 Being payment refurbishment works House (final 50% payment) for the for Kelton 2.

16,841.50 Being 10% retention payment for the refurbishment works for Kelton House 3.

036467 20.12.13.

58,850.75 Being payment for Carnavon fencing The above indicates blatant disregard of rules and regulations.
Recommendation The Principal Accounts Officer should ensure that the Minister of Finance’s approval is sought before funds are carried over Commission’s Comments The Minister of Finance has been informed accordingly when Surplus from TMA was to remit back to MOF.
The payment of the mention companies should have come from the Operation Vote (Office Fitting) and the approval was given by the Minister of Finance but was delayed by Judicial Ministry since Minister of Justice wanted more clarification and confirmation on the work plan and agreement made before they move in to their new building.
As for Carnarvon Fencing, the work was delayed due to some misunderstanding between the contractors with Office Accommodation and the Suva City Council due to SCOPE of work to be done towards the end of the year (December).

In order for PSC to complete the work that was already approved by MOF (PM) during that the year, we transferred the total cost to TMA.
The approval have already been given by Minister of Finance, so if Funds was not transferred to TMA than PSC would have to go back and again request MOF in the following year.

(Evidence attached).

On 1/09/2014, a team from Auditor physically inspected the fencing project and were satisfied with the outcome of the completed project.

The building in Carnarvon is now occupied by the Prime Minister’s Office.
Office of the Prime Minister and Public Service Commission Section 02: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 2.15 TMA arrears of revenue Where goods or services are sold on credit, the TMA Accounts Officer must ensure the customer meets the following criteria: i. ii.

iii.

iv.
iii.

iv.

provision of contact addresses valid identification no previous arrears provision of guarantor or referees9 The trading and manufacturing account had arrears of revenue or rent totalling $83,561.87 as at December 2013.

The audit noted that some of these tenants owed rent but continued to occupy the quarters while some tenants were either evicted or have been given notices to vacate the quarters.

Refer to Table 2.14 below for details.

Table 2.14: Quarters Quarters # Tenant Monthly Rent 1.

2.
2.

3.

4.

14 Mr. Inoke Male 7 Mr. Luvu Tuinamoala 60 Mr. Amenatave Tagicakibau 52 Live & Learn ($) 500.00 1,000.00 1,000.00 1,950.00 Total Amount Owed ($) 13,669.23 7,000.00 7,000.00 3,900.00 Total Amount Owed in Months Vacation Date 27.33 28/05/13 7 08/08/13 7 10/05/13 2 - Mr. Luvu Tuinamoala occupied quarters 7 without any agreement.

Without strict recovery procedures, arrears of revenue will continue to increase.
Recommendation The Commission should take appropriate action to collect all outstanding rents.

Commission’s Comment The collection of revenue is done by Accounts and Finance where information is submitted to Office and Accommodation on a Monthly basis, the monitoring of Arrears is the responsibilities of OA where they have to inform the Tenants accordingly.
9 PSC Finance Manual 2011 – Section 6.4.4 Office of the Prime Minister and Public Service Commission Section 02: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ________________ APPENDICES Appendix 2.1: Trust Fund Account for 2013 - Chinese Grant RECEIPTS Interest Other Receipts Total Receipts PAYMENTS Assistance to Schools Installation – PM Office Others RFMF Engineers Tax Clearance Cheque Book Fees Assistance to various entities and projects Total Payments Net Surplus Balance as at 1 January 2013 ($) 3,232 5,341,863 5,345,095 --- --- --- --- --- --- 1,712,021 1,712,021 2012 ($) 618 1,227,621 1,228,239 177,298 9,150 28,396 66,618 107 8 --- 281,577 3,633,074 946,662 1,021,779 75,117 Closing Balance as at 31 December 4,654,853 1,021,779 Office of the Prime Minister and Public Service Commission Section 02: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ________________ Appendix 2.2: Trust Fund Account for 2013 – Taiwan Grant RECEIPTS Interest Received Total Receipts PAYMENTS Assistance to Community Projects Assistance to Schools Assistance to RFMF Gift – Fiji Government to the Solomon Island Office Equipment Resident Withholding Tax Water Supply – Rural Areas Total Payments 2013 ($) 2012 ($) 178 178 1,690 1,690 14,325 160,587 20,798 13,525 --- 24 --- 209,259 77,965 382,655 --- --- 9,630 --- 10,680 480,930 Net (Deficit)/Surplus (209,081) (479,240) Opening Balance as at 1 January 277,208 756,444 Closing Balance as at 31 December 68,127 277,208 Office of the Prime Minister and Public Service Commission Section 02: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ________________ Appendix 2.3: Anomalies in Capital Projects Funded Under the Small Grant Scheme Project Name/Location Nadoi Village, Rewa Dawasamu Secondary School, Tailevu St Peter Chanel Primary School Namosi Secondary School Vatuwaqa Primary School Nabitu Primary School, Navosa Tamasua Nursing Clinic, Yasawa Penang Sangam High School, Ra Navuso Agricultural
 School, Assistance Status as at 3rd Quarter 2013 Drainage excavation, desilting work Completed Cost ($) 156,687.50 Building materials for 02 x teachers quarters, 01 x 03 classroom block Completed opening and awaiting official 122,227.80 Remarks - - - No work progress updates filed No completion project report attached Absence of acquittals by the monitoring agency (RFMF Engineer) on the use of funds provided towards the project by the funding agency (Office of the PM) - Monitoring report to the funding agency (Office of the PM) by the owner (School Committee) not filed Acquittals for the project by the owner not in place - Construction of 01 x ablution block, Hardware materials for 02 x staff quarters, contingency, ration, admin cost to RFMF Building materials for 01x 02 classroom building and a staff quarter Ablution block completed, 1 quarters completed and 1 under construction 125,756.32 Memorandum of understanding with RFMF Engineer to build the teachers quarters not filed Classroom completed and staff quarter under construction 93,429.74 No update on work done on the staff quarters by monitoring agency (PA Namosi) in the file Various work Some of the work completed while some in progress 373,480.25 - Memorandum of Understanding with RFMF - Engineers not filed Acquittals on contingency costs not attached administration, ration and for upgrading works, Hardware materials contingency, ration, admin cost to RFMF to do the work Building materials for construction of Nursing Station Clinic Construction of new replacement building Various works RFMF Troops deployed to the site in the 3rd week of September 102,302.92 Memorandum of Understanding with RFMF Engineer not sighted in the file MOU signed on 13/06/13.
Works in progress 102,501.91 The last inspection report noted was for 13-14/06/13.
No other work progress update filed MOU signed on 05/06/13 with funds released and which is around 95% complete RFMF Engineer deployed to the site from 1st week of Sept – work in progress 178,000.00 Progress report from the owner (School committee) to the funding agency not attached 247,188.05 Memorandum of Understanding with RFMF Engineer not sighted Section 02: Page 19 Office of the Prime Minister and Public Service Commission REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ________________ Project Name/Location Naitasiri Vunidawa Sanatan Primary School Vunidawa District School, Naitasiri Assistance Status as at 3rd Quarter 2013 Cost ($) Remarks for classroom Building materials renovation, building materials for 01 x 02 bedroom staff quarters, contingency, admin and ration cost to RFMF Engineer for this work Building materials for 01 x 03 classroom block, building materials 01 x 02 bedroom quarters, contingency, admin and ration cost to RFMF Engineer Fund provided to RFMF Engineer on 23/04/13.Work to commence in mid- November after Vunidawa District School work Funds given to RFMF Engineer on 23/04/13 – work in progress with 70% completion 92,078.97 Memorandum of Understanding with RFMF Engineers not filed 137,435.90 Memorandum of Understanding with RFMF Engineers not filed Office of the Prime Minister and Public Service Commission Section 02: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 3 Office of the Attorney General and the Solicitor General Roles and Responsibilities Office of the Attorney & Solicitor General The Attorney General is the Chief Advisor to the Government.
He or she is assisted by the Solicitor General, who is also the Permanent Secretary of the Attorney General’s Chambers.
The Office of the Solicitor General is responsible for providing quality legal advice to all ministries and departments; drafting Government Bills and Subsidiary Legislations; undertaking systematic review; reform and development of laws in Fiji Islands; undertaking Statutory Law Revision; providing to impoverished persons in family and criminal laws through legal representation and advice.
The administration of the Registrar of Companies, Registrar General’s Office, Registrar of Titles, Official Receivers Office, and Stamp Duties Office has all been assigned to the Solicitor General’s Office.
legal assistance Roles and Responsibilities Department of Civil Aviation The Department of Civil Aviation is responsible for economic regulation of air transport and facilitates processes for the development of air safety, security and infrastructure Table of Contents 3.1 3.2 3.3 3.4 3.5 3.6 OFFICE OF THE ATTORNEY GENERAL ................................................................................................................................. 2 PART A: FINANCIAL STATEMENT ...................................................................................................................................... 2 Audit Opinion ........................................................................................................................................................... 2 Statement of Receipts and Expenditure .................................................................................................................. 2 Appropriation Statement ......................................................................................................................................... 3 PART B: AUDIT FINDINGS ................................................................................................................................................... 3 Transfer of Funds from the Elections Office ............................................................................................................ 3 Expenditure Ledger Not Maintained ........................................................................................................................ 5 Legal Aid Commission Grant .................................................................................................................................. 6 DEPARTMENT OF CIVIL AVIATION ......................................................................................................................................... 7 PART C: FINANCIAL STATEMENT ...................................................................................................................................... 7 Audit Opinion ........................................................................................................................................................... 7 Statement of Receipts and Expenditure .................................................................................................................. 7 Appropriation Statement ......................................................................................................................................... 8 PART D: AUDIT FINDINGS ................................................................................................................................................... 9 Expenditure Ledger Not Maintained ........................................................................................................................ 9 3.7 3.8 3.9 3.10 Office of the Attorney General Section 03: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ OFFICE OF THE ATTORNEY GENERAL PART A: FINANCIAL STATEMENT 3.1 Audit Opinion The audit of the 2013 financial statement of the Office of the Attorney General resulted in the issue of an unqualified audit report.
Management attention was however drawn to the following matters:  Note 4 disclose that a sum of $1million was transferred from the Elections Office for the consultation and printing of the 2013 Constitution.

The $1million is not charged to the Special Expenditure – SEG 7 hence understating 2013 expenditure by the same amount.

 The department did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.
The department prepared its financial statements from the FMIS general ledger.

As a result, audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

3.2 Statement of Receipts and Expenditure The Office of the Attorney General and the Solicitor General collected revenue totalling $365,864 and incurred a total expenditure of $7,012,877 in 2013.

Refer Table 3.1 for details.
Table 3.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Hotel License Trademark and Patent Registration Liquor License Miscellaneous Fees Other Total State Revenue Agency Revenue Miscellaneous TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Office of the Attorney General 2013 ($) 2012 ($) Section 03: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Total revenue increased by $93,200 or 34% in 2013 compared to 2012 as a result of increases in hotel license, other licenses and registration of patents revenue collection.
Total expenditure increased by $2,383,434 or 51% in 2013 compared to 2012 due to increases in travel and communication costs, maintenance and operations costs, operating grant and transfer and capital construction costs.

3.3 Appropriation Statement The Office of the Attorney General and the Solicitor General incurred expenditure totalling $7,012,877 in 2013 against a budget of $8,125,800 resulting in a savings of $1,112,923 or 14%.
Details of expenditures against the budget estimates are provided in Table 3.2.
Table 3.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 2,897,774 131,189 135,700 268,500 1,551,673 2,305,400 997,000 8,287,236 - 79,117 - 79,117 454,800 8,821,153 Changes ($) (79,400) 79,400 102,733 542,248 (987,843) (93,360) (569,705) (1,005,927) 397,501 - - 397,501 (86,927) (695,353) Revised Estimate ($) Actual Expenditure ($) 2,818,374 210,589 238,433 810,748 563,830 2,212,040 427,295 7,281,309 397,501 79,117 - 476,618 367,873 8,125,800 2,017,037 197,338 238,266 784,834 529,059 2,208,691 240,784 6,216,009 394,387 75,868 - 470,255 326,613 7,012,877 Lapsed Appropriation ($) 801,337 13,251 167 25,914 34,771 3,349 186,511 1,065,300 3,114 3,249 - 6,363 41,260 1,112,923 In 2013, Cabinet approved the redeployment of $695,353 from the Department’s budget to other Ministries and Department.
PART B: AUDIT FINDINGS 3.4 Transfer of Funds from the Elections Office The Minister may, with the approval of Cabinet, authorize the redeployment of amounts appropriated by the most recent Annual Appropriation Act for administration by the Ministry of Finance to the heads of appropriation and appropriation categories to be administered by one or more other budget sector agencies.
The Minister may authorize the redeployment of amounts appropriated by the most recent Annual Appropriation Act for administration by a budget sector agency (other than the Ministry of Finance) to the heads of appropriation and appropriation categories to be administered by one or more other budget sector agencies.
The power of the Minister to give authorizations under this section cannot be delegated under this Act.1 1 Financial Management Act 2004 22 Office of the Attorney General Section 03: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Acting Permanent Secretary for Justice on 24/04/13 approved the transfer of $1,000,000 from the Elections Office budget allocation to the Office of the Attorney General for the printing and consultation of the 2013 Constitution.
A journal voucher was raised to facilitate this transfer of fund.

Details of budget allocations affected are shown in Table 3.3.

Table 3.3: Allocations affected with the payment of the $1million from the Elections office.
Department Budget Allocation Details of Account Elections Office Office of the Attorney General 110101-10999-070601 Preparation for General Election 103101-03101-840101 Drafts Constitution Consultation The audit noted that a sum of $1,000,000 was reflected in the Elections Office’s General Ledger as its expenditure even though the expenditure was related to the Office of the Attorney General.
Hence, the 2013 expenditure in the Agency Financial Statements for the Office of the Attorney General and the Elections Office was understated and overstated respectively by one million dollars.

Recommendation Proper consultations should be made prior to the transfer and allocation of funds to ensure that funds are correctly allocated and disclosed in the general ledger.

Management Comments The recommendation is noted and appreciated.
There is a process in place that accommodates Ministries and Departments performing works and services for and on behalf of other Ministries and Departments.

In previous years this would be accommodated by the issue of Departmental Warrants (DW) where a department would issue a warrant to another department for goods and services required and debits and credits pertaining to the ‘job’ would be passed between the two ministry/department through the Inter-Departmental Account (IDC).
These days, DWs are no longer in use and the general process is to use the SLG84 accounts.

The SLG84 are to be zerorised at the end of the year, meaning that if funds are not expensed, they are returned to the originating department.

The receiving department is expected to send acquittals to the issuing department on a monthly basis.
In this instance, the Office of the Attorney General received $1m from Elections Office and performed a service as well as provided goods (New Constitution) for and on behalf of the Elections Office.

Acquittals were sent to the Elections Office on a regular basis detailing the expenditure incurred.

There was no gain to the Office of the Attorney General in terms of its core outputs, therefore it cannot be said that the AG’s Office benefitted from the funds received.
The benefit is to the Elections Office in that work was done for them by the AG’s Office.

The Elections Office can indeed account for the $1m in their core output in terms of the Consultation works done for the Draft Constitution and the Production of the New Constitution.

The Elections Office can show this in their General Ledger Accounts because they have tangible evidences accounting for the use of the funds.
Further OAG comments The budget for the production of the new constitution is provided through the Office of the Attorney General on allocation 103101-03101-840101-Draft Constitution Consultation as shown on Table 3.3.
Office of the Attorney General Section 03: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 3.5 Expenditure Ledger Not Maintained All payments, including VAT, must be immediately recorded in the Financial Management Information System (FMIS) and an Expenditure Ledger.2 A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.3 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.4 Audit noted that the Department does not maintain an expenditure ledger and prepared its financial statements from the FMIS general ledger.
Thus, the audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure as the expenditure in FMIS could not be reconciled.

Recommendations The Department should:  maintained an up to date expenditure ledger up to date; and  reconcile its expenditure ledger with FMIS on a monthly basis.
Management Comment Since the introduction of the FMIS in 2006 Ministries and Departments have done away with Commitment Ledger and Expenditure Ledger because all these transactions are available on line.

To introduce this again is likened to going back to pre-computer days.

Every transaction is done on line from the creation of a Payment Voucher (PV) to printing of cheques.

There is no manual transaction to be recorded in the Ledgers.
Various panels are available on line on which to view outstanding Purchase orders and Outstanding Payment Vouchers as follows:  PO525 report shows all outstanding and overdue purchase orders.

This is printed on a regular basis and is used by the Purchase Order clerk to follow up with relevant persons with regards to the supply of goods and services requisitioned through the POs and the progress of the purchase.
 PO881 is a report that details Purchase Orders that have been received (goods delivered) but is still pending for payment.

This report is used to remind the PO clerk to complete the payment process for the orders.

 PO556 is printed and used to check on PO still outstanding and overdue for payment.

The report is used to age the PO status report and a control tool for the officer in Charge.

 AP711 is printed for “Open Payables’.


These are PV that has been created in the system (FMIS) but the cheques are yet to be printed.

This report is printed out and processed/cleared on a regular basis.

The report mainly shows payments that are due and payable on the following months eg.

FNPF.

 AP471 is Undisbursed Vouchers report which list payments for which cheques have been printed but are still to hit the GL; an indication that the process is incomplete.
This report is used to complete the payment process and close off each transaction.
2 Finance Instructions 2010 s15 3 Office of the Attorney General Finance Manual 16.3.1 4 Office of the Attorney General Finance Manual 16.3.2 Office of the Attorney General Section 03: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 3.6 Legal Aid Commission Grant The Legal Aid Commission was established with the objective to assist economically disadvantaged people, to understand and protect their rights and have equal access to the legal system.
The operating expenses of the Legal Aid Commission is met from the interest earned from the lawyers’ Trust Account and expenses pertaining to salary and wages are met from Government Grant.
Unless otherwise approved by Ministry of Finance, all grants over $10,000 must be paid in monthly or quarterly instalments to ensure that: a) There is an incentive for the organisation to comply with the conditions of the grant; and b) Government financing costs are minimised.5 The Legal Aid Commission in 2013 was allocated $2,010,000 as operating grant.

However, audit noted that the Office did not pay the operating grant on a monthly or quarterly basis.
The Principal Accounts Officer revealed that Legal Aid Commission does not have the proper mechanism in place to administrate the grant money, as a result the wages and salaries were processed and managed by the Office of the Attorney General and Solicitor General.

Our review of the current arrangement of managing the Legal Aid Commission grant noted the following.
 The Commission is yet to be fully established to have its own corporate functions thus all corporate activities are carried out by the Office of the Attorney General and Solicitor General.

 The entire wages and salaries for all staffs at Legal Aid Commission were processed and managed by the Office of the Attorney General and Solicitor General.

 The budgetary allocation for Legal Aid Commission has increased from $800,000 in 2012 to  $2,000,000 in 2013.
11 out of the 71 staffs’ salary of the total Legal Aid Commission payroll are processed in the government’s payroll system while the salaries for 60 staffs are processed manually.

The delay in fully setting up the Commission as a separate entity strains the department resources.

In addition, manual payments of the Commission wages and salaries for the remaining 60 staff increases the risk of fraud and error.
Recommendations   The Solicitor General as the Chairman of the Legal Aid Commission should take appropriate measures to set the mechanisms to allow the Commission to manage its operating grant.
Should the Office of the Attorney and Solicitor General decide to continue operating with the current arrangement, The Solicitor General should: - - seek approval from Ministry of Finance for not paying the operating grant on monthly or quarterly basis; and all the Legal Aid staffs are placed on an automated payroll system.
5 Finance Instruction 2010 – s16 (7) Office of the Attorney General Section 03: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comments The Legal Aid Commission has this year, purchased and installed an accounting system called JIWA Financial.

The system is CPA approved and was in full operation from August.
The system has the following applications:  Payroll system;  Human Resource Management system;  Purchasing system;  Payments system.

The system is also linked to Fiji Revenue and Customs Authority as well as to Fiji National Provident Fund and ensures that correct and accurate tax and FNPF payments are made.

Since the system has been installed, the Office of the Attorney-General has ceased processing all accounting functions for the Legal Aid Commission.
The Office is now paying grant on a quarterly basis beginning with the third quarter payment.

DEPARTMENT OF CIVIL AVIATION PART C: FINANCIAL STATEMENT 3.7 Audit Opinion The audit of the 2013 financial statement of the Department of Civil Aviation resulted in the issue of an unqualified audit report.

However attention was drawn to the following:  The department did not reconcile the expenditure in the Financial Management Information System (FMIS) general ledger as no expenditure ledger was maintained.
The Department prepared its financial statements from the FMIS general ledger.

As a result, audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

 A board of survey was not carried out contrary to section 49 (2) of the Finance Instructions 2010.

As such the completeness and accuracy of losses recorded in the Statement of Losses cannot be ascertained.
3.8 Statement of Receipts and Expenditure The Department of Civil Aviation collected revenue totalling $6,540 and incurred a total expenditure of $2,235,850 in 2013.

Refer Table 3.5 for details.
Table 3.5: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Civil Aviation Licence Total State Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communications 2013 ($) 2012 ($) 6,540 6,540 6,540 2,200 2,200 2,200 47,445 10,692 18,201 157,618 9,574 13,622 Office of the Attorney General Section 03: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 19,640 136,979 1,713,568 16,165 1,962,690 - 222,481 222,481 50,679 2,235,850 2012 ($) 9,076 3,238 1,664,732 15,619 1,873,479 - 1,320,223 1,320,223 3,124 3,196,826 Total expenditure declined by $960,976 or 30% in 2013 compared to 2012.
The decrease was mainly due to the decrease in established staff and capital grants and transfers.

3.9 Appropriation Statement The Department of Civil Aviation incurred expenditures totalling $2,235,850 in 2013 against a budget of $2,342,379 resulting in a savings of $106,529 or 5%.

Details of expenditures against the budget estimates are provided in Table 3.6.
Table 3.6: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 170,911 17,068 24,600 45,300 228,700 965,000 40,000 1,491,579 - - 800,000 800,000 50,800 2,342,379 Changes ($) (119,300) (6,300) (5,900) (24,700) (90,900) 749,714 (23,800) (478,814) - - (478,814) (478,814) - - Revised Estimate ($) 51,611 10,768 18,700 20,600 137,800 1,714,714 16,200 1,970,393 - - 321,186 321,186 50,800 2,342,379 Actual Expenditure ($) Lapsed Appropriation ($) 47,445 10,692 18,201 19,640 136,979 1,713,568 16,165 1,962,690 - - 222,481 222,481 50,679 2,235,850 4,166 76 499 960 821 1,146 35 7,703 - - 98,705 98,705 121 106,529 Office of the Attorney General Section 03: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ PART D: AUDIT FINDINGS 3.10 Expenditure Ledger Not Maintained All payments including VAT must be immediately recorded in the Financial Management Information System (FMIS) and an expenditure ledger.6 A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.7 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.8 Audit noted that the Department of Civil Aviation did not maintain an expenditure ledger.
Thus, audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure as the expenditure in FMIS could not be reconciled.

Recommendation The department should maintain an expenditure ledger and reconcile it to FMIS records on a monthly basis.

Management Comment As explained in paragraph 3.6 above, the introduction of Financial Information Management System has automated all accounting processes.
Maintaining an expenditure ledger is not necessary as it would be time consuming for the limited staff available in the Section.
GL874 gives an accurate status of funds for any allocation at any given time as follows:  Appropriation (YTD provision) - A  Encumbrances (Vouchered but still not fully released) - B  Commitments (Purchase Orders raised but goods not yet received) - C  Actuals (Paid and closed off) - D  Available funds (Funds available for expenditure- the balance of A-(B+C+D)) GL876 gives the detailed breakdown of commitments and encumbrances listed in GL874 at any given point.
GL 671 also gives the actual expenditure figure at any given time for any allocation.

I believe these are the main purposes for keeping ledgers in the Accounts Section; to view commitments and actuals for each allocation for the purpose of determining whether funds are available for further expenditure.
6 Finance Instructions 2010 Section 15 7 Office of the Attorney General Finance Manual 16.3.1 8 Office of the Attorney General Finance Manual 16.3.2 Office of the Attorney General Section 03: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 4 Ministry of Finance Role and Responsibilities The Ministry is responsible for formulating and implementing fiscal, financial and monetary policies.
Its main functions are the collection and disbursement of public revenue, raising and repayment of loans, and developments of economic policies.

It also provides various services to other departments, which include provision of printing and stationery services by the Government Printer, procurement and processing of supplies through Fiji Procurement Office.

Also coming under the ambit of the Ministry of Finance are the several statutory bodies namely the Fiji Revenue & Customs Authority.
Table of Contents 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 PART A: FINANCIAL STATEMENT ....................................................................................................................................... 2 Audit Opinion ............................................................................................................................................................ 2 Head 4 - Statement of Receipts and Expenditure .................................................................................................... 2 Appropriation Statement .......................................................................................................................................... 4 Statement of Losses ................................................................................................................................................ 6 Consolidated Manufacturing Account – Trading & Manufacturing Activity .............................................................. 6 Consolidated Trading Account – Trading & Manufacturing Activity ......................................................................... 7 Consolidated Profit & Loss Statement – Trading & Manufacturing Activity.............................................................. 7 Balance Sheet – Consolidated Trading & Manufacturing Activity ............................................................................ 8 Consolidated Trust Account Statement .................................................................................................................... 9 MINISTRY OF FINANCE ............................................................................................................................................................ 9 Budget Allocation For 2013 ...................................................................................................................................... 9 Miscellaneous Payments of Government – Head 50 ............................................................................................. 10 Head 51 – Pensions and Other related Payments ................................................................................................. 11 Debt Repayment Expenditures - Head 52 ............................................................................................................. 12 Absence of a Guideline for Salaries Paid from Head 50 ........................................................................................ 13 Over - Expenditure ................................................................................................................................................. 14 Unsubstantiated Equity balances ........................................................................................................................... 15 Variances in Drawings Account Balances ............................................................................................................. 16 Trust Fund Account Reconciliation ........................................................................................................................ 18 Variances in Operating Account Balances ............................................................................................................. 18 Overpayment of Salaries and Overtime ................................................................................................................. 19 Supporting Document of Acquittal Report provided by Ministry/Department being incomplete ............................. 21 Competitive Quotes not submitted with Ministry Request ...................................................................................... 22 Absence of Guidelines on Pension Payments ....................................................................................................... 23 Overpayments of Pensions .................................................................................................................................... 25 No Internal Audit Function ...................................................................................................................................... 27 Unutilized Funds – Loan Repayment allocations ................................................................................................... 28 Foreign Exchange Losses ..................................................................................................................................... 29 FIJI PROCUREMENT OFFICE ................................................................................................................................................ 30 Budget Allocation For 2013 .................................................................................................................................... 30 4.28 Un-authorized Holding of Excess TMA Profit ......................................................................................................... 31 4.29 4.30 Variance between the Arrears of Revenue Records .............................................................................................. 32 Absence of Board Member during Tender Box Opening ....................................................................................... 33 4.31 Non-performance of reconciliations for Vision Core and FMIS Balances .............................................................. 34 4.32 GOVERNMENT PRINTING & STATIONERY DEPARTMENT ................................................................................................ 35 4.33 Budget Allocation For 2013 ..................................................................................................................................... 35 4.34 Variances between Departmental Records and General Ledger Account Balances ................................................. 36 4.35 Variances between General Ledger and Department Records ............................................................................. 36 4.36 Urgent Printing Services without Approval .............................................................................................................. 38 4.37 Anomalies in Stock Tally Cards .............................................................................................................................. 40 4.38 Fixed Assets Register Anomalies ........................................................................................................................... 42 INFORMATION TECHNOLOGY AND COMPUTING SERVICES ........................................................................................... 43 Ministry of Finance Section 04: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 4.39 Budget Allocation For 2013 ..................................................................................................................................... 43 4.40 Limitation of Scope .................................................................................................................................................. 45 4.41 Absence of Information Technology (IT) Strategy ................................................................................................... 46 4.42 Contracts awarded without Approved Procurement Policy ..................................................................................... 47 APPENDICES ........................................................................................................................................................................... 49 Appendix 4.1: Approved contracts without approved ICT procurement policy ................................................................... 49 PART A: FINANCIAL STATEMENT 4.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Finance resulted in the issue of a qualified audit report.
The qualifications are as follow: Trading & Manufacturing Account (TMA) Records to substantiate $4.9 million for the surplus capital transferred to Operating Fund Account and $13 million as TMA accumulated surplus were lacking for the TMA operated by the Government Printing & Stationery Department and the Fiji Procurement Office in the Trading & Manufacturing Account.
Records to substantiate accounts payable of $0.59 million and account receivable balance of $2.9 million reflected in TMA Balance Sheet in the Trading & Manufacturing Account were not provided for audit.

Management attention was also drawn to the following matters: Head 50 In the absence of any guideline for salary payments paid from Head 50, the correctness of the payment of Cabinet Ministers salary paid from Head 50 totalling $1.7 million could not be substantiated.
In addition, the contract documents detailing the terms and conditions for the salaries of Cabinet Ministers were not made available for audit.

Head 51 Expenditure totalling $6.1 million was disbursed by the Ministry of Finance from Head 51 for pension payments facilitated by the Judicial Department, Prime Minister’s Office and Fiji Military Forces.
In the absence of a guideline for the acquittal report to be provided by these paying agencies under Head 51, the correctness of the amounts utilized could be not verified.

4.2 Head 4 - Statement of Receipts and Expenditure The Ministry of Finance budget is appropriated as Head 4 in the 2013 Budget Appropriation Authority with Government Printing & Stationery Department (GPSD), Fiji Procurement Authority (FPO) and Information Technology and Computing Services (ITCS).
The Ministry of Finance budget is also appropriated as Head 50, Head 51 and Head 52 in the 2013 Budget Appropriation Authority.

Ministry of Finance Section 04: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The consolidated revenue for the Ministry totalled $2,220,368,660 while it incurred a consolidated expenditure of $69,395,219 during 2013 from Head 4.
Table 4.1: Head 4 – Consolidated Statement of Receipts and Expenditure in 2013 Description RECEIPTS State Revenue Operating Revenue Investing Revenue Borrowing Revenue Total State Revenue Agency Revenue Board Member Fee Miscellaneous Revenue Sales of Publications Total Agency Revenue TOTAL REVENUE EXPENDITURE Operating Established staff Government Wage Earners Travel & communication Maintenance & Operations Purchase of goods & services Operating grants & transfers Special expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) --- 1,192,291 2,800,000 3,992,291 938,888 67,192,476 Total revenue increased by $136,807,342 or 6.6% in 2013 due to the increase in operating revenue by $179,845,382 or 10%.
Miscellaneous revenue also increased by $3,035,488 or 196.7% relating to crown agents payments, receipt of guarantee fee from Fiji Electricity Authority and unclaimed monies.

Total expenditure increased by $2,202,743 or 3.3% due to the increase in operating grants and transfers by $2,499,995 or 5.7%, increase in maintenance and operations cost by $129,034 or 5.1% and established staff expenditure also increased by $617,054 or 7.1% in 2013 compared to 2012.
The Ministry incurred expenditure of $84,234,539 in 2013 from Head 50.
Refer to Table 4.2 for details: Table 4.2: Head 50 - Statement of Receipts and Expenditure in 2013 Description EXPENDITURE Operating Expenditure Established staff Travel & communications Ministry of Finance 2013 ($) 2012 ($) 2,149,734 1,880,356 2,234,540 1,975,824 Section 04: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Purchase of goods & services Operating grants & transfers Special expenditures Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 3,082,814 11,726,815 5,472,386 24,312,105 0 11,057,666 45,819,004 56,876,670 3,045,764 84,234,539 2012 ($) 1,869,180 11,248,900 4,914,064 22,242,508 200,000 7,358,135 101,151,762 108,709,897 2,477,766 133,430,171 Total expenditure under Head 50 decreased by $49,195,632 or 36.9%.
This was related to the decline in miscellaneous expenditure under capital grants and transfers by $55,332,758 or 54.7%.
Table 4.3: Head 51 - Statement of Receipts and Expenditure in 2013 Description EXPENDITURE Operating Expenditure Pensions Gratuities Compassionate Allowance Total Operating Costs TOTAL EXPENDITURE 2013 ($) 2012 ($) 25,893,960 1,061,235 8,385,446 35,340,641 35,340,641 27,059,294 1,204,758 8,107,071 36,371,123 36,371,123 Total expenditure under Head 51 decreased by $1,030,482 or 2.8% in 2013 compared to 2012.

This was due to the decrease in pensions by $1,165,334 or 4.3%, gratuities $143,523 or 11.9%.
Table 4.4: Head 52 - Statement of Receipts and Expenditure in 2013 Description 2013 ($) 2012 ($) EXPENDITURE Operating Expenditure Finance Charges on Public debt – Miscellaneous Payment Finance Charges on Public debt – Overseas Loans Finance Charges on Public debt – Domestic Loans TOTAL EXPENDITURE 967,595 71,628,964 367,174,356 439,770,915 1,003,298 65,538,656 443,802,849 510,344,803 The finance charges on public debt decreased by $70,573,888 or 13.8% compared to 2012 due to decreases in finance charges on public debt for domestic loans by $76,628,493 or 17.3% and finance charges on public debt for miscellaneous payments by $35,703 or 3.6%.
4.3 Appropriation Statement The Ministry incurred expenditure totalling $69,395,219 in Head 4 in 2013 against a revised budget of $74,303,041, resulting in a saving of $4,907,822 or 6.6%.

The Ministry approved the transfer of funds totalling $3,456,489 (out) and $58,227 (in) of Head 4.
Refer to Table 4.5 for details: Ministry of Finance Section 04: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 4.5: Appropriation Statement for 2013 – Head 4 SEG Item & Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants Transfers Special Expenditure Total Operating Costs Capital Construction Capital Purchases Capital Grants Transfers Total Expenditure Value Added Tax TOTAL Capital and Budget Estimate ($) 10,551,781 581,317 1,637,409 Changes ($) (92,717) 25,393 (676) Revised Estimate ($) 10,459,064 606,710 1,636,733 Actual Expenditure ($) 9,252,677 573,628 1,594,679 Lapsed Appropriation ($) 1,206,387 33,082 42,054 3,341,104 32,834 3,373,938 2,675,850 698,088 6,702,551 (846,624) 5,855,927 5,473,937 381,990 46,381,640 1,655,000 70,850,802 350,000 2,997,801 --- (11,000) (892,790) --- (2,062,220) 46,381,640 1,644,000 69,958,012 350,000 935,581 46,381,640 2,874 65,955,285 258,616 720,511 --- 1,641,126 4,002,727 91,384 215,070 1,000,000 - 1,000,000 1,000,000 --- 4,347,801 2,502,700 77,701,303 (2,062,220) (443,252) (3,398,262) 2,285,581 2,059,448 74,303,041 1,979,127 1,460,807 69,395,219 306,454 598,641 4,907,822 The Ministry incurred expenditure totalling $84,234,539 in Head 50 in 2013 against a revised budget of $92,529,443 resulting in a savings of $8,294,904 or 9%.
The Ministry approved the redeployment of funds out from Head 50 totalling $4,620,114 and $7,042,423 was re-deployed into Head 50.
Refer to Table 4.6 for details: Table 4.6: Appropriation Statement for 2013 – Head 50 SEG Item of Goods & Established Staff Travel & Communication Purchase Services Operating Transfers Special Expenditure Grants Budget Estimate ($) 5,000,000 2,500,000 Changes ($) (2,538,747) (524,044) Revised Estimate ($) 2,461,253 1,975,956 Actual Expenditure ($) 2,149,734 1,880,356 Lapsed Appropriation ($) 311,519 95,600 2,962,800 2,386,851 5,349,651 3,082,814 2,266,837 & 12,595,000 (813,006) 11,781,994 11,726,815 55,179 Total Operating Costs Capital Construction Capital Purchases Capital Grants and Transfers Total Capital Expenditure Value Added Tax TOTAL 7,152,100 30,209,900 --- 11,565,710 44,704,424 56,270,134 3,627,100 90,107,134 (744,317) (2,233,263) --- --- 6,407,783 27,976,637 --- 11,565,710 4,655,572 49,359,996 60,925,706 4,655,572 3,627,100 --- 92,529,443 2,422,309 5,472,386 24,312,105 11,057,666 45,819,004 56,876,670 3,045,764 84,234,539 935,397 3,664,532 --- 508,044 3,540,992 4,049,036 581,336 8,294,904 1 3 Ministry of Finance Section 04: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Ministry incurred expenditure totalling $35,340,641 in Head 51 in 2013 against a revised budget of $32,947,400 resulting in over expenditure of $2,393,241 or 7%.
The Ministry approved the transfer of funds totalling $8,900,000 being redeployed out from Head 51.
Refer Table 4.7 for details: Table 4.7: Appropriation Statement for 2013 – Head 51 SEG Item 11 Pensions, Gratuities and Compassionate allowance TOTAL Budget Estimate ($) Changes ($) Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) 41,847,400 41,847,400 (8,900,000) (8,900,000) 32,947,400 32,947,400 35,340,641 35,340,641 (2,393,241) (2,393,241) The Ministry incurred expenditure totalling $439,770,915 in Head 52 in 2013 against a revised budget of $451,549,100 resulting in a savings of $11,778,185 or 2.7%.
The Ministry approved the transfer of funds totalling $2,000,000 being redeployed out from Head 52.
Refer to Table 4.8 for details: Table 4.8: Appropriation Statement for 2013 – Head 52 SEG Item 12 Finance Charges on Public Debt TOTAL Budget Estimate ($) Changes ($) Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) 453,549,100 453,549,100 (2,000,000) (2,000,000) 451,549,100 451,549,100 439,770,915 439,770,915 11,778,185 11,778,185 4.4 Statement of Losses The Ministry of Finance recorded no loss in 2013 however the Annual Board of Survey wrote off various assets totalling $568,006.
Refer Table 4.9 for details: Table 4.9: Assets written off in 2013 Ministry/Department Ministry of Finance Fiji Procurement Office Information Technology and Computing Services Government Printing and Stationery Department Total BOS No.
Various Various Various Various Amount ($) 419,819 79,995 40,280 27,912 568,006 Date Approved Various Various Various Various Item Various Various Various Various 4.5 Activity Consolidated Manufacturing Account – Trading & Manufacturing The Consolidated Manufacturing Account is for both Government Printing & Stationery Department and the Fiji Procurement Office.
Total production costs in 2013 amounted to $3.28 million, of which $0.6 million was for raw materials used during the year, $2.2 million for directs costs and $0.3 million for direct labour costs.
Ministry of Finance Section 04: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Refer to Table 4.10 for details: Table 4.10: Consolidated Manufacturing Account Description Raw Materials (01/01/13) Add: Purchases Less: Raw Materials (31/12/13) Raw Materials Used Direct Costs Direct Labor Cost of Manufactured Goods Transferred to Trading Account 31 December 2013 ($) 31 December 2012 ($) 820,547 1,003,223 1,823,770 1,158,751 665,019 2,289,988 331,907 3,286,914 873,049 1,007,597 1,880,646 820,547 1,060,099 27,836 89,420 1,177,355 4.6 Consolidated Trading Account – Trading & Manufacturing Activity The Consolidated Trading Account is a consolidation of both Government Printing & Stationery Department and Fiji Procurement Office accounts.
The cost of goods sold amounted to $5.91 million whilst sales income was only $3.20 million, resulting in a gross loss of $2.71 million.
Refer Table 4.11 for details: Table 4.11: Trading Account Description Sales Stock of Finished Goods (01/01/13) Add: Cost of Manufactured Goods Less: Stock of Finished Goods (31/12/12) Cost of Finished Goods Sold Gross (loss) Profit Transferred to Profit/(Loss) Account 31 December 2013 ($) 3,202,136 3,352,273 3,286,914 6,639,187 724,080 5,915,017 (2,712,971) 31 December 2012 ($) 3,445,512 3,340,409 1,177,355 4,517,764 3,352,273 1,165,491 2,280,021 4.7 Activity Consolidated Profit & Loss Statement – Trading & Manufacturing The consolidated profit & loss statement showed a consolidated net loss of $3.41 million compared to a profit of $1.55 million in 2012.
Total expense for 2013 was $701,817 with the major components of expenses being incurred on maintenance & operations.
Refer Table 4.12 for details: Table 4.12: Profit & Loss Statement Description 31 December 2013 ($) 31 December 2012 ($) Income Gross (Loss)/Profit transferred from Trading Account Expenses Travel & Communication (2,712,971) 2,280,021 4,679 2,549 Ministry of Finance Section 04: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Maintenance & Operations Other Expenses Value Added Tax Total Expenses Net (Loss)/Profit 31 December 2013 ($) 482,059 211,062 4,017 701,817 (3,414,788) 31 December 2012 ($) 655,195 68,450 --- 726,194 1,553,827 4.8 Balance Sheet – Consolidated Trading & Manufacturing Activity The consolidated net assets of the Ministry during the year 2013 totalled $7.5 million which declined by $2.4 million (24%) compared to 2012.
This was attributed to a reduction in finished goods by $2.6 million (78%).
Refer Table 4.13 for details: Table 4.13: Balance Sheet Description 31 December 2013 ($) 31 December 2012 ($) Liabilities Accounts Payable Deposits & Deductions Total Liabilities Equities TMA Surplus Capital Returned to Consolidated Fund TMA Accumulated Deficit Capital Expenditure Total Equity TOTAL LIABILITIES & EQUITY ASSETS Current Assets Bank Raw Materials Finished Gods Accounts Receivable Fixed Assets TOTAL ASSETS 597,668 20,173 617,841 552,955 28,435 581,390 4,919,470 4,699,380 (13,069,044) 0 (8,149,574) 7,531,731 (15,065,915) (150,000) (10,516,535) 9,935,145 2,484,273 1,158,751 724,080 2,981,775 182,852 7,531,731 2,756,441 820,547 3,352,273 3,005,884 --- 9,935,145 The cash at bank balance decreased by $272,168 or 10% due to decline in sales revenue by the Government Printing & Stationery Department in 2013 compared to 2012 as Ministries/Departments have opted to request other printing companies for their printing needs.
In addition, raw materials increased by $338,204 or 41% due to increase of unused printing material as at 31/12/13.

The sale of finished goods led to the decrease of $2,628,193 or 78% in 2013 compared to 2012 which was attributed to Ministries/Departments having to outsource their printing needs to other printing companies.

The fixed assets of $182,852 during the year 2013 resulted from new printing machines purchased for the Department.
Ministry of Finance Section 04: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 4.9 Consolidated Trust Account Statement Total trust funds for the Ministry declined by $1,901,187 or 17.7% in 2013 due to the increase in refunds of performance bonds by $3,234,652 or 69.8%.
Refer Table 4.14 for details: Table 4.14: Trust Account Description Opening Balance 1 January Receipts Receipts from Performance Bonds Total Receipts Payments Payments of Performance Bonds Total Payments Closing Balance 31 December 2013 ($) 10,748,700 31 December 2012 ($) 9,147,931 5,968,560 5,968,560 7,869,747 7,869,747 8,847,513 6,235,864 6,235,864 4,635,095 4,635,095 10,748,700 MINISTRY OF FINANCE 4.10 Budget Allocation For 2013 The Ministry’s revised budget was $55.2 million for the year ended 31/12/13 excluding Government Printing & Stationery Department, Fiji Procurement Office and Information Technology and Computing Services which are also discussed later in the report.
The distribution of the Ministry’s budget into the various Standard Expenditure Groups (SEGs) is shown in the figure 4.1: Figure 4.1: Budget Allocation - Ministry of Finance The Ministry’s budgetary allocation was divided into operating expenditure totalling $51.9 million, capital expenditure totalling $2.9 million and VAT expenditure totalling $0.4 million.
Refer Table 4.15 below for details of budgeted expenditure to the actual expenditure incurred in 2013: Ministry of Finance Section 04: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 4.15: Revised Budgeted Expenditure vs. Actual Expenditure - Ministry of Finance SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Capital Purchases Capital Grants and Transfers Value Added Tax Revised Estimate ($) 5,284,063 144,093 171,531 594,300 1,761,579 43,881,645 34,936 162,860 2,800,000 393,600 Actual Expenditure ($) 4,616,732 144,354 153,865 542,641 1,355,191 43,881,645 14,309 141,868 2,800,000 293,369 53,943,974 There was a savings of $1.2 million or 2.3% of the budgeted expenditure.
55,228,607 Total Savings %age ($) 667,331 (261) 17,666 51,659 406,388 0 20,627 20,992 0 100,231 1,284,633 12.6 (0.2) 10.3 8.7 23.1 0 59.0 12.9 0 25.5 2.3 4.11 Miscellaneous Payments of Government – Head 50 The budget estimates and budget statements are to be prepared as far as practicable in accordance with internationally accepted standards.1 The revised budget for Miscellaneous Expenditure (Head 50) was $92.5 million for the year ended 31/12/13.
The distribution of the budget into the various Standard Expenditure Groups (SEGs) is shown in Figure 4.2: Figure 4.2: Budget Allocation – Miscellaneous Expenditure of Government [Head 50] The Head 50 budget allocation was divided into operating expenditure totalling to $27.9 million or 30.2%, capital expenditure totalling $60.9 million or 65.8% and VAT expenditure totalling to $3.7 million or 4%.
Refer Table 4.16 below for details of budgeted expenditure to the actual expenditure incurred in 2013: Table 4.16: Revised Estimate versus Actual Expenditure – Head 50 1 Financial Management Act 2004, Section 13 (3) Ministry of Finance Section 04: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ SEG Item Savings %age Revised Estimate ($) 2,461,253 Actual Expenditure ($) 2,149,734 ($) 311,519 95,600 Established Staff Travel & Communication 1,975,956 1,880,356 Purchase of Goods & Services 5,349,651 3,082,814 2,266,837 Operating Grants & Transfers 11,781,994 11,726,815 Special Expenditure Capital Purchases 6,407,783 5,472,386 11,565,710 11,057,666 55,179 935,397 508,044 Capital Grants and Transfers 49,359,996 45,819,004 3,540,992 Value Added Tax 3,627,100 3,045,764 581,336 Total 92,529,443 84,234,539 8,294,904 1 3 5 6 7 9 10 13 12.7 4.8 42.4 0.5 14.6 4.4 7.2 16.0 8.9 There was a savings of $8.2 million or 8.9% of the budgeted expenditure.
4.12 Head 51 – Pensions and Other related Payments The revised budget for pension and other related payments was $32.9 million for the year ended 31/12/13.

The distribution of the Pension’s budget into the various Standard Expenditure Groups (SEGs) is shown in Figure 4.3: Figure 4.3: Budget Allocation of the Pensions and Other Related Payment The Head 51 budget allocation was divided into operating expenditure totalling $32.9 million comprising of Pensions, Gratuity and Compassionate allowances.
Refer Table 4.17 below for details of budgeted expenditure against the actual expenditure incurred in 2013: Ministry of Finance Section 04: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 4.17: Revised Expenditure versus Actual Expenditure Item Pensions Civil & Compassionate Revised Estimate ($) 10,000,000 Actual Expenditure ($) 12,244,324 Savings %age ($) (2,244,324) (22.4) Payment Of Benefits To Dependents 7,404,000 7,403,702 Pensions to Widows & Orphans 140,500 139,653 War Pensions FMF pensions 1,900 1,794 3,678,300 3,670,079 Ex-Governor General, President 122,800 122,723 Ex-Parliamentarians 2,124,900 2,118,872 Pension To Former Chief Justice Prison Gratuities Contract Officers Gratuities 193,100 120,500 941,000 192,813 120,250 940,985 298 847 106 8,221 77 6,028 287 250 15 COLA To Pensioners 8,220,400 8,385,446 (165,046) Total 32,947,400 35,340,641 (2,393,241) 0.0 0.6 5.6 0.2 0.1 0.3 0.1 0.2 0.0 (2.0) (7.3) There was an over expenditure of $2.39 million or 7.3% in excess of the budgeted expenditure.
4.13 Debt Repayment Expenditures - Head 52 The revised budget for repayments of debt was $451.5 million for the year ended 31/12/13.

The distribution of the budget into the various Standard Expenditure Groups (SEGs) is shown in Figure 4.4.
Figure 4.4: Budget Allocation of the repayment of debt The Head 52 budget allocation was divided into Finance Charge on Public Debt for Miscellaneous Payment of $4.0 million or 1%, Finance charges on Public Debt for Domestic Loan of $368.0 million or 81% and Finance charges on Public Debt for Overseas Loan of $79.5 million or 18% of the budgeted expenditure.
Refer Table 4.18 for details of budgeted expenditure to the actual expenditure incurred in 2013: Ministry of Finance Section 04: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 4.18: Revised Expenditure versus Actual Expenditure Item Interest treasury bills Provision for contingent liability RBF fees & charges Agency & Management Fees Revised Estimate ($) 2,000,000 1,000,000 150,000 850,000 Actual Expenditure ($) 722,946 Savings %age ($) 1,277,054 63.9 0 1,000,000 100.0 108,043 136,606 41,957 713,394 Financial charges on public debt-overseas loans 79,505,499 71,628,964 7,876,535 Financial charges on public debt-domestic loans 368,043,601 367,174,356 869,245 Total 451,549,100 439,770,915 11,778,185 There was a saving of $11.7 million or 2.6% of the budgeted expenditure.
4.14 Absence of a Guideline for Salaries Paid from Head 50 28.0 83.9 9.9 0.2 2.6 The Chief Accountant Treasury is responsible for the safekeeping and proper maintenance of all accounting records or documents.2 For all payments made from Head 50 to Ministries and Departments, the Ministry of Finance must ensure appropriate acquittals are submitted.

This ensures that funds have been expended for the intended purpose by; Ministries and Departments.
It is imperative for the Ministry to strongly implement and maintain its role of monitoring the utilization of funds disbursed.

Our review of the Head 50 expenditure revealed that the Ministry paid a total $1,860,947 as Cabinet Ministers salary in 2013.

The audit noted that the Ministry did not have any acquittal guideline for the payment of the salaries to Cabinet Ministers with the exception of the contract agreement for Mr. Inia Seruiratu which was made available for during our review.
Discussions revealed that the salaries are processed based on the amounts provided by the Alizpacific (Chartered Accountants & Business Advisors).

Refer to the table below for the payment details.
Table 4.19: Details of Cabinet Ministers Salary for 2013 EDP # 21915 90321 04074 12504 47948 90420 92495 53795 90510 90771 2013 Gross Salary as per Payroll Report3 ($) 278,750.16 184,999.92 150,000.00 135,000.00 135,000.00 130,000.08 130,000.08 135,000.00 135,000.00 150,000.00 2 Finance Manual 2011, section 18.1.3 3 Dated 10/01/14 Ministry of Finance Section 04: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ EDP # 93150 Total Ministers Gross Salary Total adjustment for mis - posting of Ministers pay Additional Ministers payroll expenditure Total payment for Minister Salaries Total additional funding to Ministry of Fisheries & Forests Total as pay as per FMIS 2013 Gross Salary as per Payroll Report3 ($) 130,000.00 1,693,750.24 30,045.66 137,150.74 1,860,946.64 286,996.38 2,147, 943.02 In addition, on 20/02/14, the Prime Minster received gratuity payment of $57,5004 for the year ended 2013.
The audit was verbally advised that the contract documents are with the Office of the Prime Minister.

We made a formal request on 14/01/14 to the Office of the Prime Minister for the verification of the contract documents however we were not furnished with the contracts despite follow up emails made on 27/01/14 and 31/01/14.

The Ministry of Finance also made request with the Office of the Prime Minister but was not provided with the documents.
In the absence of an acquittal guideline for salaries paid from Head 50, the audit was unable to provide an assurance that payments made were correct.

Recommendations The Ministry should develop a guideline for the proper accounting of the Head 50 payments and to ensure that payments made from Head 50 in the general ledger are fully supported with relevant documents.
The Ministry should liaise with the Prime Minister’s Office to obtain copies of the contract agreements and to be maintained for audit review purposes.

Management Comments Similar to OAG, we have also requested for this information from the Prime Minister’s Office.

In these e-mail correspondences, the staffs of OAG have also been copied and as such they are aware of our attempts.

We have even suggested to PM’s Office to allow the auditors to view these documents.
4.15 Over - Expenditure Each year, the Appropriation Act and Budget Estimates set out details of the appropriations that Cabinet approves for spending by each agency.

No officer may incur expenditure, which results in the agency’s appropriation being exceeded without the authorization of the Ministry of Finance, pending approval by Cabinet.5 The audit noted that the Ministry had incurred over-expenditures amounting to $2,393,241 in 2013 for Pensions, Gratuities & Compassionate Allowance.
Refer to Table 4.20 for details.
4 from vote 1-51101-51999-110204 (BSP EFT cheque # 077 dated 20/02/14) 5 Section 7 – Finance Instruction 2010 Ministry of Finance Section 04: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 4.20: Over – Expenditure Account ID Description 1-51000-00000-110000 Pensions, Gratuities & Compassionate Allowance Total Revised Budget ($) 32,947,400 Actual ($) 35,340,641 Over-Expenditure ($) 2,393,241 $2,393,241 Discussion with Assistant Accounts Officer Jonathan Dunn during audit revealed that the over- expenditure resulted during the redeployment of funds.6 Incurring expenditures in excess of the budgetary allocation indicate poor financial management.
In addition, over-expenditure affects the Government’s liquidity position and if not controlled may lead to cash flow problems.

Recommendation The Ministry of Finance should monitor its utilization of its allocated funds and take remedial action to ensure that it does not incur over-expenditure as required under the Finance Instruction.

Management Comments The redeployment of funds was to meet Fiji’s peacekeeping mission to the Golan Heights which was a priority at the time.
4.16 Unsubstantiated Equity balances The Accounting Head is responsible for the safekeeping and proper maintenance of all accounting records or documents.7 The following general ledger balances were not provided for audit and have been a recurring audit issues in prior audit years.
Refer to Table 4.21 below for details: Table 4.21: Unsubstantiated TMA Equity Balances Account Description 4-04000-00000-940300 4-04000-00000-940400 Total TMA Surplus capital returned to consolidated fund TMA Accumulated surplus/deficit Balance as at 31/12/13 ($) 4,919,470 (13,069,044) ( 8,149,574) Balance as at 31/12/12 ($) 4,699,380 (15,065,915) (10,366,535) Movement ($) 220,090 1,996,871 2,216,961 As a result, the issues were highlighted in the audit report of the Ministry for 2013.
Recommendation The Ministry should take remedial action to ensure that these general ledger balances are cleared or supported with documentary evidences.

6 Email from Jonathan Dunn dated 08/04/14 7 Ministry’s Finance Manual – Section 18.1.3 Ministry of Finance Section 04: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comments The Equity accounts above consist of FPO and GPSD TMAs Equity.
The $220,090 variance in 940300 accounts was due to the following: 1.

2012 remittance of $373, 017.33 that was submitted by GPSD (AP6459) which reduce the amount in the account.

2.

The corrective measures that was undertaken to correctly post the incorrect posting of GPSD $150,000 which was added to the account (TMA020) 3.

The transfer of $2,962.65 to Fund 1 due to inter-fund transactions which increase the account.
However, GPSD did not manage to provide evidence to substantiate this amount but the Ministry is currently undertaking corrective measures to eliminate this inter-fund transactions.

(TMA032) 4.

The corrective measure that was undertaken to reverse a mis-posting of GPSD $36.05 that reduce the account.

(TMA035) The $1,996,871 variance in 940400 accounts was due to the following: 1.

FPO made an adjustment of $872,072.10 which reduce the account (JV 04F006 & 04F007) 2.
AMU made a reverse entry of misposting worth of $1,114,133.22 (JV TMA037) 3.

Posting of FPO profits of $907,042.97 in 2013(JV TMA012, TMA015, TMA024 &TMA039) and 4.

GPSD loss of $2,031,842.09 in 2013 (TMA023) 4.17 Variances in Drawings Account Balances All bank accounts shall be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by the responsible officer.8 The audit noted of a variance of $18,422,687.82 in the Drawing Account with the Ministry and the general ledger (FMIS) balance.

Refer to Table 4.22 below for details.


Table 4.22: Variance between FMIS and Ministry’s Reconciliation Allocation Description FMIS ($) Ministry Records ($) Variance ($) 1-04102-04202-530301 Drawings BSP Suva 1-04102-04202-530302 Drawings BSP Treasury 1-04301-65101-510108 COGS Australian Bank 1-04301-65101-510505 COGS New Zealand Bank 4,329,329.32 13,303,356.20 699,191.34 90,810.96 18,422,687.82 *Reconciliation ending balance was disclosed in $AUS & $NZ.
Using the exchange rate of 0.58 and 0.65, the above two balances were converted to $FJ (512,179.80) (2,150,099.56) 838,171.36 145,673.82 (1,678,434.18) 3,817,149.52 11,153,256.64 138,980.02* 54,862.26* 15,164,248.44 The Ministry did not provide a respond to our enquiry through email dated 02/05/14.

The anomalies imply ineffective internal controls over the recording of bank records and supervisory checks to perform reconciliations are lacking.
Recommendations  The Ministry should ensure that monthly reconciliations are carried and any variances identified are adjusted accordingly.

8 Finance Instructions 2010 – Section 32 (6) Ministry of Finance Section 04: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Supervisory checks on monthly reconciliations should be improved to ensure the accuracy of the balances reflected in the reconciliations and that it is reconciled to FMIS balances.
Management Comments Table 4.22: Variance between FMIS and Ministry’s Reconciliation Ministry Records $ Allocation Description FMIS Variance Comments 1-04102-04202- 530301 1-04102-04202- 530302 1-04301-65101- 510108 1-04301-65101- 510505 Drawings BSP Suva $ (512,179.80) $ 3,817,149.52 4,329,329.32 As per below Drawings Treasury COGS Australian Bank BSP COGS New Zealand Bank (2,150,099.56) 11,153,256.64 13,303,356.20 As per below 838,171.36 138,980.02* 699,191.34 145,673.82 54,862.26* 90,810.96 (1,678,434.18) 15,164,248.44 18,422,687.82 *Reconciliation ending balance was disclosed in $AUS & $NZ.
Using the exchange rate of 0.58 and 0.65, the above two balances were converted to $FJ 1-04102-04202-530301- Drawings BSP Suva The $3,817,149.52 is referring to the UP Listing and the FMIS Balance of -$512,179.80 is incorrectly written- it should in fact be -$236,884.80.

The variance between the UP Listing of $3817149.52 & the FMIS balance of - $236884.80 is mostly due to the cheque control function in the AP process not being properly followed which is leading to the cheque mismatch as they get presented.
When the List of Presented Cheques is compared to the List of Un-presented Cheques, the same cheque may not be marking off because they have different cheque numbers.

Furthermore, there is also the issue of un-posted Bank Sweeps and Bank Fees.

Furthermore, the stale cheques have not yet been removed from the UP List.
We decided not to remove the Stale Cheques yet as we wanted to look at the holistic picture of the Reconciliation- the stale cheques will be removed when everything in the Drawings Account has been rectified.

1-04102-04202-530302- Drawings BSP Treasury The UP List is $$14,206,823.31 and not $11,153,256.64 as stated in the table above.

The variance is a result of the Cheque control function in the AP process not being properly followed which is leading to the Cheque mismatch as they get presented.
When the List of Presented Cheques is compared to the List of Un-presented Cheques, the same cheque may not be marking off because they have different Cheque Numbers.

Furthermore, there is also the issue of un-posted Bank Sweeps and Bank Fees.

Furthermore, the stale cheques have not yet been removed from the UP List.
We decided not to remove the Stale Cheques yet as we wanted to look at the holistic picture of the Reconciliation- the stale cheques will be removed when everything in the Drawings Account has been rectified.

1-04301-65101-510108 & 104301-65101-510505 The above two accounts are for overseas bank accounts.

These two accounts acts as clearing accounts for pension paid to overseas Pensioners.
The reconciliation performed was usually against the Bank statement and not against the GL balance thus the noted variance.

Adjustment to past years accounts will be challenging since they have been closed.

FMIS Section and Pensions Unit are closely liaising on this issue and Principal Accountant (FMIS) confirmed that adjustments for previous years will be done through equity allocations in 2014.
The same reconciliation arrangement that was applied to CFA reconciliation will be applied to the overseas bank accounts reconciliation.

Ministry of Finance Section 04: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 4.18 Trust Fund Account Reconciliation Each month, the trust account must be balanced and reconciled with the trust bank account.
The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.

Un-reconciled items must be investigated and resolved promptly.9 The audit noted a variance of $665,379.72 between the general ledger balance and bank statement balance as at 31/12/13.
Details of the variances are shown in Table 4.23 below: Table 4.23: Trust Account Variances Trust Account Balance as per financial statements (GL) Bank statement balance as at 31/12/13 Variance Amount ($) 9,792,212.00 9,126,832.28 665,379.72 In addition, the audit noted that the Ministry is not using the correct bank reconciliation format to reconcile the Consolidated Trust Fund Account 9-04101-04001-520501 in 2013.
The above issues clearly indicate laxity in supervisory checks to ensure that reconciliations are carried out correctly.

Hence, the Trust account balances in the financial statements are not fairly stated.

Recommendations Supervisory checks on monthly reconciliations should be improved to ensure the accuracy of the balances reflected in the reconciliations and that it matches with FMIS.
The Ministry should immediately reconcile and adjust the variances noted between the general ledger (FMIS) and the bank statement balance.

The Ministry should ensure the use of the correct format of bank reconciliation and reconciliation of the trust account should be undertaken on a monthly basis.

Management Comments The amounts reflected in the FMIS are extracted from the revenue account.
As this is compared to the bank statement account there will always be a difference because other factors such as interest, bank charges and cheque fees that appear in the bank statement would have been posted to other appropriate revenue/expenditure votes.

We had been reconciling the bank statements by identifying and posting the difference between the bank opening and closing balances against the difference in GL postings.

The new format that is now used is to reconcile both bank and GL balances.
This is the preferred format by OAG.

4.19 Variances in Operating Account Balances Each month, the trust account must be balanced and reconciled with the trust bank account.

The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.
Un-reconciled items must be investigated and resolved promptly.10 9 Finance Instructions 2010 Section 58 (3) 10 Finance Instruction, Part 9, Section 58(3) Ministry of Finance Section 04: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Ministry’s operating trust fund account had a variance of $421,938.52 between FMIS records and the Ministry’s record due to various postings to allocations in FMIS which were also not included by the Ministry in the reconciliations.
Refer to the table below for details of general ledger allocation not included in Ministry’s trust account reconciliation.
Table 4.24: Trust Accounts Not Included in Ministry’s Records Allocation Account 1-04101-04101-860107 1-04101-04999-861101 1-04102-04999-861101 1-04102-04201-861102 1-04102-04999-861102 1-04102-04999-861309 1-04102-04999-861601 1-04102-04999-861602 1-04102-04202-861901 1-04102-04203-861901 1-04102-04201-861902 1-04102-04999-861902 1-04102-04999-861920 1-04105-04502-861920 1-04102-04999-861923 1-04101-04999-863201 1-04102-04999-863201 Total Retention 202 PD OPR current year 202 PD OPR current year 384 PD OPR previous year 384 PD OPR previous year 388 PD PSC scholarship loan 341 PD maintenance – Suva 342 PD maintenance – Nausori 201 PD tax arrears/PAYE Leave allowance PAYE 204 PD depst a/c recoverable 204 PD depst a/c recoverable 501 PD employees FNPF 501 PD employees FNPF Payroll deduction uniform VAT on revenue VAT from provision of goods & services Amount ($) (61,940.33) 31.03 (291.99) 1.8 (341.33) (1,363.60) 40 (3,545.00) (4,727.20) (1,361.00) (30) 841.11 (76,109.86) (15.76) (2,610.95) 265,000.51 (535,515.95) (421,938.52) The Ministry could not provide a satisfactory explanation on the above variances and this was a recurring audit issue.
The above anomalies indicate ineffective controls and lack of supervisory checks for trust account.

Recommendations The Ministry should ensure that monthly reconciliations are carried out and any variances noted are adjusted accordingly.

The internal control procedures in the Accounts Section, specifically supervisory checks should be strengthened to avoid such discrepancies.
Management Comments The identified variances occurred due mis-postings and are being verified and appropriate actions taken to resolve the issue.
4.20 Overpayment of Salaries and Overtime Salary advices must be submitted promptly to the Ministry of Finance where there is any change to personnel emoluments or deductions such as appointments, promotions, transfers, acting allowances, Ministry of Finance Section 04: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ dismissals and resignations, income tax allowances, housing deductions, or other authorized charges or deductions.11 The salaries officer shall prepare the appropriate input form for ceasing or reversing salary payments as well as a journal voucher (in duplicate) to reverse or cease all deductions for that particular pay period.12 Our review of payroll records revealed the following anomalies:  The Public Service Commission in its letter dated 22/04/2013 approved that Officer (EDP # 61475) to be seconded to World Bank with effect from 01/05/2013.
The audit noted that the Ministry continued to pay his salary until 30/07/2013 resulting in overpayment of $14,972.91.

While the Ministry has recovered $11,619.30, the balance of $4,551.37 is still outstanding from the Officer.

 The Ministry of Finance in its letter dated 05/04/12 approved that Senior Economic Planning Officer (SEPO) (EDP # 91524) to be seconded to Central Coordination Agency for Roads (CCAR) as Principal Economic Planning Officer (PEPO) with effect from 06/01/12 to 31/12/12.
The Ministry continued to pay him on PEPO salary until 24/03/13 resulting in overpayment of 83 days totaling to $2,209.73.

The Ministry recovered $853.60 from the Officer while $1,356.13 remains outstanding.

The Officer has resigned from the Ministry on 06/01/14.

 The salaries file for Officer (EDP #17485) was not provided for audit.

The audit noted that it could not be located at the salaries section.

Hence, the audit could not verify the accuracy of the retirement date for final salary payment.
The above findings indicate the lack of coordination and communication between Administration Section and the Accounts Section and the lack of proper supervision.

Recommendations      The Ministry should ensure that timely coordination and communication exist between the Corporate Division and Salary Division to activate ceasing of acting appointments, appointment, and retirement on effective dates.

Surcharge action should be taken against Officers responsible for the salary overpayment.
The Ministry should make a concerted effort to recover the salary overpayments from the Officer(s) concerned.

Supervising Officers with Salaries section should carry out supervisory checks on salary input forms prior to any salary processing.

The Ministry’s Payroll Section should ensure that salary files of officers are secured and location of these files can be easily traced by a file movement register.
11 Finance Instructions 2010 –Section (17)(1) 12 Finance Manual 2011, Section 4.10.2 Ministry of Finance Section 04: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comments In the past, timely submission of advises to Salaries Section form Administration has been a problem.

Although not completely eliminated, there has been a big improvement.
61475 and 91524 - In points one and two above, advices for cessation of salary were sent to Salaries Section rather late resulting in overpayments.

Their payments will be reconciled and if overpayments are yet to be recovered, we will attempt to do so.

17485 – The officer’s salary was terminated from the payroll on 26/01/2013.

This date was fed into the payroll system in pay 04/2010 and can be verified from the Master-file Edit Report which is available on-line.

The file however, could not be located.


Audit recommendations are noted.

All efforts will be made to recover any overpayments.

All filings are now done on a regular basis and documents are filed in individual officers’ files.

Changes have already been implemented whereby supervisors are required check, verify and sign all inputs forms before they are submitted for data- entry.

Inputs forms are not punched unless they are signed and countersigned.
Further OAG Comments The overpayments for 61475 and 91524 have yet to be recovered.

The salary file for 17485 could not be located upon request.

4.21 Ministry/Department being incomplete Supporting Document of Acquittal Report provided by The need to improve record management in all agencies is vital for promoting good governance, transparency and accountability in the public sector.
Accounting staffs are responsible for proper maintenance and safekeeping of accounting records and documents, giving the Accounting Head the responsibility in implementing a sound internal control system to oversee this matter.

The audit noted the acquittal reports provided by the Ministry were not fully supported with relevant documents to support the funds released by the Ministry from general reserve allocations.

Refer to Table 4.25 for details.
Table 4.25: Examples of payments without full acquittal of expenses submitted by Ministry Date Funds Transferred 06/06/13 Ministry Amount ($) Remarks Ministry of Youth and Sports 42,608.14 Supporting documents amounting to$38,513.20 are not with the Budget Division 13/09/13 Ministry of Youth and Sports 463,382 Supporting documents amounting to $22,085.90 are not with the Budget Division 29/01/13 Ministry of Youth and Sports 49,126 Supporting documents amounting to $17,698.91 are not with the Budget Division 06/06/13 Ministry of Youth and Sports 289,565.22 Supporting documents amounting to $57,709.06 are not with the Budget Division 30/08/13 Ministry of Youth & Sports 108,017.82 Supporting documents amounting to $86,070.12 are not with the Budget Division Ministry of Finance Section 04: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Funds Transferred 30/08/13 27/03/13 07/11/13 31/01/13 Ministry Amount ($) Remarks Ministry of Fisheries and Forests Public Service Commission 139,685.65 Supporting documents amounting to $133,540.06 are not with the Budget Division 189,130.43 Supporting documents amounting to &84,676.26 are of Security Ministry National Immigration Ministry of Foreign Affairs Defense, & not with the Budget Division 24,348.00 Supporting documents amounting to $6,107.62 are not with the Budget Division 119,443.40 Supporting documents amounting to $119,443.40 are not with the Budget Division 23/07/13 Ministry of Foreign Affairs 42,528.28 Supporting documents amounting to $42,528.28 are not with the Budget Division 13/02/13 Ministry of Agriculture 19,232.42 Supporting documents amounting to $15,647.57 are not with the Budget Division 31/07/13 Ministry of Education 69,662.29 Supporting documents amounting to $69,662.29 are not with the Budget Division 20/02/13 Ministry of Works, Transport and Public Utilities 21,739.13 Supporting documents amounting to $8,455.38 are not with the Budget Division The Senior Economic Planning Officers of the Budget Division revealed that the payment vouchers are only sent to the Budget Division while the supporting documents are maintained by respective Ministries/Departments.
Weak record management hinders the achievement of high levels of good governance, accountability and transparency for the Ministry.

Hence, the risk of fraud and misappropriation of funds are possible if the Ministry continues to disregard internal controls in place.

Recommendation The Ministry’s Budget Division should carry out due diligence checks and to ensure that acquittals are received for the total amount requested by Ministries/Departments.
Management Comments Ministry of Finance notes that this is a recurring audit query and will put in mechanisms to ensure that the acquittals for funds disbursed from Head 50 are acquitted on a timely basis.
4.22 Competitive Quotes not submitted with Ministry Request A minimum of three competitive quotes must be obtained for the procurement of goods, services or works valued at $1,000 and more but $50,000 and less.13 The quotation process is intended to ensure that the agencies receive value for money based on fair competition and ethical dealing.14 The audit noted that the Ministries/Departments do not submit competitive quotes to the Ministry of Finance in their submission for the payment of airfares for the Ministers during 2013.
Refer to Table 4.26 for details.

13 Procurement Amendments Regulations 2012 - Section 4 (a) 14 Guide To Procurement Process for Purchases up to $50,000 - Section 4 Ministry of Finance Section 04: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 4.26: Examples of Competitive Quotes not provided during Head 50 fund submission Date Cheque No.
Payee 14/02/13 049035 17/04/13 050206 30/04/13 050445 22/06/13 21581 26/09/13 022086 29/04/13 286576 25/03/13 284438 21/02/13 018336 Total One World Flight Centre Qantas Travel Centre Jad International Discount Flight Centre Jad International Jad International Jad International Macquarie Travel World Services Amount ($) 7,398.00 11,572.10 10,850.00 10,981.20 12,436.00 26,109.00 6,153.00 40,225.99 125,725.29 Similarly, competitive quotes were not obtained for the payment on 19/09/13 totaling $8,472 (cheque # 295050) to Devos on the park for the Humanitarian Coordination Training for the Ministry of Health.
The audit noted that due to urgency of the trips the Ministry was not able to obtain competitive quotations.

The findings indicate that due diligence is not properly carried out by the Ministry to ensure that service required was from the most economical source.

Recommendation The Ministry of Finance should consider that Ministries/Departments submit competitive quotations when making requests for Head 50 funds.
Management Comments Recommendation is noted and necessary checks will be put in place to ensure compliance with regulations.

4.23 Absence of Guidelines on Pension Payments Each agency must have in place a cost effective system of internal controls which safeguards money and property against loss.
The Accounting Head of an agency is responsible to the Permanent Secretary for the effective design and operation of internal controls across the agency.15 Each appropriation is to be administered by the budget sector agency specified in the appropriation Act concerned or the budget estimates tabled with the Bill for that Act as being responsible for its administration or the Ministry of Finance if no agency is so specified.16 It is important to check and verify the calculations on the RFMF Re-engagement and Prison Re- engagement award forms which are then submitted to Minister of Finance for approval17.
The audit noted payments were made from Head 51 totaling $6,102,817 without any check or verification by the paying offices which include Judicial Department, Prime Minister’s Office and Fiji 15 Finance Instruction 2010,Section 59(1) (a) & 2 16 Financial Management Act 2004, Section 14 (2) 17 Finance Manual – Section 20.2.9 Ministry of Finance Section 04: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Military Forces.
Such checks and verification would provide an assurance to Pension Office that payments have been made to bona fide recipients.

Discussions with Jonathan Dunn at the Pensions Office revealed that the award forms are submitted to pension’s office by the respective ministries for processing payment18.

The pension’s office relies on the award forms to process such payments since the records are maintained at respective ministries.
Refer to Table 4.27 details of payments processed by pension’s office without any verifications being made to pensioners file records.
Table 4.27: Details of payments made from Head 51 by other Ministries Payment Type Ministry/Department maintaining file records Amount paid ($) Pension to Ex Chief Justice& Retired Judge Ex-Governor General, Presidents, ex-PM Pension Prime Minister's Office Prime Minister's Office Ex Parliamentarians FMF Pensions RFMF Total Judicial 192,812 122,723 2,118,871 3,668,411 6,102,817 In addition, the audit noted that the reconciliations were also not provided by Judicial Department, Prime Minister’s Office and Fiji Military Forces to the Pension Office for verification.
Moreover, the awards forms for payments being made from January 2013 to June 2013 for Fiji Military Force’s retired servicemen processed by the Pension Office were not provided for audit.

The above shows poor internal controls in relation to payments made from Head 51.

There is a risk of overpayment and misappropriation of public funds when appropriate documents to support payments are not verified.
Recommendations The Ministry should enter into a Memorandum of Understanding with the respective Ministries/Departments to take responsibility for the proper accounting of the pension payments and to ensure that they are correct.

The Ministry must verify all the details entered in the award forms to eliminate any risk of overpayment.
Management Comments The current practice is that the proper verification for payment is handled by each Ministry who later on submit their payment vouchers and awards forms to Pension for processing.

If the pension office were to again verify these payments, then we will have to be provided with all documentation and personal files from these respective ministries for each and every individual officer.
This would result in duplication of work and at the same time require unnecessary additional storage space.

The continuous movement of personal files provides a risk of loss of documents.

Each Ministry has their own internal control procedures set up to which these payments apply.
18 Email from Jonathan Dunn dated 23/01/12 Ministry of Finance Section 04: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ For reconciliation purposes, a request could be put forward to the respective Ministry for them to provide us with a list of confirmed payments directed into the officer’s bank.

Further OAG Comments Proper verification of payments promotes accountability & transparency of the use of public funds.
Irrespective of OAG conducting the audit of respective Ministries, the issue will still arise in the absence of the non-performance of the reconciliation.

4.24 Overpayments of Pensions All overpayments must be recovered fully before the dependant pension is processed.

Banks are to be notified of the overpayment and to reverse or refund any pension left in pensioner’s bank account.
Immediate families of deceased pensioner should be notified about overpayment, if they can recover or refund the overpaid amount.19 The Senior Accounts Officer shall prepare a quarterly report on the level of outstanding and overdue debts20 The audit noted that the first and second quarter reports for 2013 showed overpayment amounting to $52,298.56.

However the Pension Office failed to prepare the third and fourth quarter reports for 2013.

Refer to Table 4.28 for details of overpayment for 2013.
Table 4.28: Details of Overpayment for 2013 PN# Date of Death Pay Balance to be recovered Amount ($) 10542 21972 20468 30130 13587 13241 21118 11538 21309 11637 12647 12284 10941 21903 21683 13446 21609 12693 21635 13471 20768 21756 22092 01-08-13 02-03-13 20/02/13 02-05-13 26/02/13 02-03-13 13/02/13 22/02/13 18/04/13 04-10-13 05-01-13 05-05-13 24/4/13 24/05/13 05-01-13 06-04-13 03-05-13 26/05/13 16/06/13 07-03-13 07-05-13 07-06- 19Finance Manual – Section 20.13 20 Finance Manual – Section 9.3.1 Ministry of Finance Section 04: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ PN# Date of Death Pay Balance to be recovered Amount ($) 21697 11428 12204 12093 11681 20615 30298 20255 13358 20286 20795 30335 40015 10666 20814 21016 21495 23/07/13 26/07/13 17/06/13 29/07/13 07-10-13 16/10/13 16/10/13 29/09/13 31/03/13 26/04/13 15/09/13 15/09/13 17/04/13 26/10/2013 17/09/13 24/10/13 06-09- $52,298.56 In addition to the above, the Pension Office also failed to include these overpaid pensioners as highlighted by the internal audit report dated May 2013.21 Refer to Table 4.29 for examples: Table 4.29: Details of Pensioners not included in overpayment list Pension # Date of Death Widows – 60% 20600 21182 21488 Civil Pensioners 10594 11365 11548 11692 11913 12275 12466 12782 13534 21412 Total 12/11/2012 11/11/2012 06/05/2012 30/04/2012 21/08/2012 28/06/2012 11/07/2012 23/11/2012 01/01/2013 01/10/2012 03/07/2012 06/02/2013 07/01/2013 Overpayment Amount ($) 1,769.34 1,324.65 2,111.60 0 1,295.98 4,867.61 970.88 1,256.75 3,438.46 529.15 179.80 213.65 592.66 2,302.60 20,853.13 Table 4.30: Details of Overpayment not recovered Year 2011 2012 Total Amount ($) 17,161.40 37,908.43 55,069.83 21 Internal Audit report dated 13/0513 – File Ref:SI01/2013 Ministry of Finance Section 04: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Moreover, our review of the internal audit report22 noted that the pension’s office overpaid these pensioners during the year 2011 and 2012 totaling $55,069.83 which have not been recovered as at the time of audit23.
Refer to table 4.30 for details of overpayment not recovered.

The Pensions Office - Assistant Accounts Officer revealed that the accessibility of data from BDM (Birth, Deaths and Marriage) system is yet to be put in place.

The above anomalies indicate the Ministry’s laxity in maintaining records for pensioners not included in the pension’s overpayment listing.

Hence, the Ministry will continue to face similar situations through irrevocable overpayment if proactive action is not taken up by the Ministry.
Recommendations     The Ministry should seek avenues to recover the amount overpaid.

The Solicitor General’s views can be sought to prosecute relatives/family members for withdrawing pensioner’s funds after their death.

The Ministry must ensure that the outstanding quarterly reports for the Pensions Section are prepared and checked by the Supervisors.

The Supervisors must ensure that the overpayment list is correctly prepared including all the details of the pensioners.
The Ministry should liaise with Ministry of Justice to consider a memorandum of understanding on possibility of having view access to the Birth, Death and Marriages system to verify the status of the pensions.

Management Comments The Pension Payments Section is in the process of completing the Arrears of Revenue for the final quarters of 2013.

Delay was due to staff rotation and closed files being transferred to Archives, during clean-up.
Approval has already being given by BDM for link-up between the 2 database and, the necessary configuration to be done by ITC Services.

Request already sent to ITC, but no response yet.

Recovery letters written to banks are sometimes successful as there sufficient funds in the deceased pensioners accounts, but some are unsuccessful.

Requests to next of kin are unsuccessful as some are unemployed and some are just ignorant of our requests.
Pension Office has already liaised with Small Claims Tribunal regarding the overpayments, but the steps and costs recommended are more than some of the overpaid amount.

The overpayment amount of $52,298.56 includes the $29,000 case which is under Police investigation.

4.25 No Internal Audit Function The Permanent Secretary for Finance must authorize the conduct of any audit that he/she deems necessary to determine whether – a.)
The operations or activities of all Budget Sector Agencies are being performed effectively, economically and efficiently and in compliance with all relevant written laws; 22 Internal Audit report dated 13/0513 – File Ref:SI01/2013 23 06/01/14 Ministry of Finance Section 04: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ b.)
The financial affairs of all budget sector agencies is in compliance with all relevant written laws and with due regard to the principles of responsible financial management.24 Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.
It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The audit noted that there was no internal audit done for the Debt Unit in 2013.

The Debt Unit is an important section of the Ministry since the division deals with borrowings on behalf of the government and their responsibilities plays a huge part on determining the financial standing of the economy.
The absence of an internal audit indicates lack of internal controls assurance in place for the Unit.

This gives room for complacency on the unit as their functions are not checked on a regular basis.

Recommendation The Ministry should ensure that internal audits are done annually before external audit to improve the processes and procedures within the Debt Unit.

Management Comments Internal audit is a separate Unit under MOF.

It carries out its risk analysis and accordingly undertaken its audit.
4.26 Unutilized Funds – Loan Repayment allocations Each year the Appropriation Act and the Budget Estimates set out details of the appropriations that the Cabinet approves for spending by each Agency.25 The Accounting Head is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.
Our review of the debt portfolios noted that the Ministry did not utilize the amount set aside for repayment for various loan accounts totaling $3,255,000 and $1,169,506 for the year ended 2012 and 2013 respectively.
Refer to Table 4.31 below for details: Table 4.31: Budgeted Allocation for 2013 Loan Repayments Left Unutilized Loan Account Allocation Exchange and Interest Rate Fluctuations 1989 Interest Rate Proc Loan No 2 1990 Interest Free Proc Loan No 3 Provision For exchange rate fluctuation 2004 ADB Suva/Nausori Water Supply ADB 3rd Road Upgrade 2010 ADB Loan 2603 Total 1-52101-04402-141199 1-52102-04402-141207 1-52102-‘04402-141213 1-52102-04402-143218 1-52101-04402-143110 1-52101-04402-143116 1-52101-04402-143117 2012 2013 Budgeted Actual 256,000 234,200 658,000 - 1,071,100 759,000 276,700 3,255,000 Actual ($) Budgeted ($) 183,001 234,100 658,000 94,405 - - - 1,169,506 - - - - - - - Actual ($) - - - - - - - - 24 Finance Instructions 2010 – Section 72(1) 25 Finance Instructions 2010, Section 7 Ministry of Finance Section 04: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Discussions with the Debt Unit revealed that it is likely that repayment will commence from 2015 since the Government of China has extended the loan.
Providing unrealistic budget submission indicates poor planning by Debt Unit and hence provides an unnecessary burden to manage the debt.

This will further lead to increase in government borrowings.

Recommendation The Ministry should make realistic budget estimates as it could lead to budget deficits and increase in borrowings.
Management Comments A review was undertaken on this issue and more care and verifications is now being undertaken to ensure that budget estimates are accurate and more precise for future budget estimates.
4.27 Foreign Exchange Losses The Minister may, on behalf of the State, enter into a hedging transaction or hedging arrangement, for the purpose of avoiding or reducing the effect of currency or interest rate fluctuations, on such terms and conditions as the Minister thinks fit and whether within or outside the Fiji Islands.26 A cash flow hedge is defined as hedging the exposure to variability in cash flows that is attributable to a particular risk with a recognized asset or liability.
Therefore, the hedge is intended to protect the entity against the unfavorable impact on future cash flows from a change in exchange rates27.

Our review of Overseas Loans noted that the Ministry incurred substantial amount of foreign exchange losses totaling $70,711,949.77 in 2013.

The audit noted that these foreign exchange losses were incurred due to fluctuations in exchange rates.

Table 4.32 shows details of the Loans incurring foreign exchange losses.
Table 4.32: Exchange Rates Losses Incurred from Overseas Loans Loan Description Loan Revaluation Before Revaluation Losses Loan After Revaluation Balance as at 31/12/13 ADB Loan 2514 FRUP 3 Supplementary Fiji Road Upgrading Project Stage 3 Loan 1530 Suva Nausori Regional Water Supply Project Suva Nausori Water Supplementary ADB Loan 2541 Flood Recovery EXIM Bank Of China E-Government Loan Fiji Low Cost Housing Project Fiji Public Rental Housing Project Sigatoka Valley and Sawani Serea Road Buca Bay and Moto Roads Nabouwalu and Dreketi Road Upgrading Project Queens Highway Road Development Project Fiji Government Global Borrowing Total ($) 42,711,911.76 50,833,039.16 75,811,039.10 30,739,545.99 21,499,371.86 39,574,491.20 37,274,857.29 8,984,886.91 59,889,602.97 73,680,025.56 58,131,226.91 32,258,792.24 446,825,000 978,213,790.95 ($) 2,413,946.88 3,290,714.89 4,768,367.72 1,574,455.31 1,154,012.13 3,505,412.02 4,544,884.31 770,939.02 6,150,657.50 7,413,294.87 6,044,755.21 1,430,509.91 27,650,000 70,711,949.77 ($) 45,125,858.64 54,123,754.05 80,579,406.82 32,314,001.30 22,653,383.90 43,079,903.22 41,819,741.60 9,755,825.93 66,040,260.47 81,093,320.43 64,175,982.12 33,689,302.15 474,475,000 1,048,925,740.63 26 Financial Management Act 2004 Section 60(1) 27 International Accountant Standards 39 Paragraph 71-102 Ministry of Finance Section 04: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Discussions revealed that the losses are due to changes in foreign currency exchange rates.
Exchange rate variations overtime are a potential source of risk to cross-border financial obligations.

The above findings indicate that the Ministry Officials failed to discuss on the hedging exposures with the Overseas Lenders to avoid foreign exchange losses.

Recommendation The Ministry shall ensure that foreign exchange losses are kept at minimum level while borrowing overseas.

Management Comments The Unit is assessing a number of foreign risk mitigation measures including hedging.
It already has had discussions with a number of financial institutions.

Some financial institutions are working on their hedge offer.

MOF would be in a position to commend on the offer once all the analysis is completed.

FIJI PROCUREMENT OFFICE 4.28 Budget Allocation For 2013 The Department’s revised budget of $1.4 million in 2013 included payroll, non-payroll and VAT expenditure.
The distribution of the Department’s budget into the various Standard Expenditure Groups (SEGs) is shown in figure 4.5: Figure 4.5: Budgetary Allocation by Standard Expenditure Group The Department’s budgetary allocation was divided into operating expenditure of $1.3 million, capital expenditure of $11,284 and VAT expenditure of $37,000.
Refer Table 4.33 for details of budgeted expenditure to the actual expenditure incurred in year 2013: Table 4.33: Budgeted Expenditure vs Actual Expenditure SEG Item 1 2 3 Established Staff Government Wage Earners Travel & Communications Ministry of Finance Revised Estimate ($) 981,089 127,388 35,716 Actual Expenditure ($) 971,015 125,278 29,462 Savings % ($) 10,074 2,110 6,254 1.0 1.7 17.5 Section 04: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ SEG Item 4 5 9 Maintenance & Operations Purchase of Goods & Services Capital Purchase 13 Value Added Tax Total Expenditure Revised Estimate ($) 139,000 60,500 11,284 37,000 Actual Expenditure ($) 124,983 54,612 11,109 35,657 Savings % ($) 14,017 5,888 175 1,343 10.1 9.7 1.6 3.6 2.9 1,391,977 1,352,116 39,861 A savings of $39,861 or 3% of the total budgeted expenditure was noted at the end of 2013.
4.29 Un-authorized Holding of Excess TMA Profit When the operation of Trading and Manufacturing Accounts are approved by the Minister of Finance, a financial ceiling is set for the purposes of operating this account and at no point in time the Chief Accounting Officers who are controlling officers responsible for the operation of this account in the department/ministry can exceed the financial ceiling, as this may be unauthorized and officers responsible may be liable for a surcharge.28 The Ministry of Finance advised all agencies operating TMA that all excess of TMA cash for the financial year ended 2012 are to be remitted to the Ministry of Finance before the 15/01/13.29 The Fiji Procurement Office TMA has a financial ceiling of $500,000.30 The audit noted that the TMA had an excess profit of $1,025,448.45 for the year ended 2012.
The following anomalies were noted: (1) The Fiji Procurement Office paid excess TMA profit of only $872,072.10 to the Consolidated Fund on 04/06/13 (cheque # 4350) contrary to Ministry of Finance circular dated 20/12/2012.

(2) Of the excess profit of $1,025,448.45, a sum of $153,376.35 was retained by the Procurement Office.

It was noted that the Office held the excess profit for its capital projects for 2013.
The Permanent Secretary for Finance approved only $45,385.80 to be retained for the cementing of the Suva Yard.

The audit noted that there was no approval of amount totalling $107,990.55 of TMA profit to be retained.

The above indicates breach of financial regulations put in place to ensure safeguard of TMA funds from being misused.

Recommendations   The Office must ensure that excess profit is deposited into the Consolidated Fund in accordance with Finance Regulation.
The Office must obtain approval from the Permanent Secretary for Finance for retaining any excess TMA profit.

28 Finance Circular No.

37 of 1984 – Operation of Manufacturing and Trading Account 29 Memorandum from Permanent Secretary Finance dated 20/12/12 – File 60/22 30 TMA 2012 Remittance Update dated 11/02/13 Ministry of Finance Section 04: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comments The comments are noted.
However, please note that the delay in payment was due to the delay in approval of FPO projects which was to be funded from TMA.

Copies of relevant documentation as a testament to this are with us.
4.30 Variance between the Arrears of Revenue Records Each agency must maintain a Debtors Register within the FMIS or an accounts receivable ledger for licenses, debts, court fees and other State or agency revenues receivable.31 The audit noted that the Fiji Procurement Office (FPO) uses Vision Core accounting software to record its daily transactions which is then uploaded onto the Financial Management Information System (FMIS) general ledger on a monthly basis.
The audit noted of a variance of $2.2 million exists between the Fiji Procurement Office’s (FPO) records and those balances reflected in the general ledger (FMIS).

Refer to Table 4.34 for details: Table 4.34: Fiji Procurement Office Record vs. General Ledger Particulars Balance as per General Ledger (FMIS) Balance as per Office record (Arrears of revenue return) Variance Amount ($) 2,337,960 113,548 2,224,412 The Office is yet to reconcile the general ledger balance to facilitate necessary adjustments.
The composition of debt owed as per the arrears of revenue return is outlined at Table 4.35: Table 4.35: Composition of Debt Owed as per the Arrears of Revenue Return Debtor Status on Recovery Hola Security Services Vanua Designs & Associates Total Small Claims Tribunal Fiji Police Force Amount ($) 2,152 111,397 113,549 Non-reconciliation of balances in the general ledger has resulted in the accumulated balance hence, the overstatement of accounts receivable as at 31/12/13.
Recommendation The Procurement Office should ensure that regular reconciliation of the debtor balance is carried out with the source documents and rectify the variances between the FMIS balances and the Office records and adjustment made accordingly.

Management Comments The variance derived from previous years carried forward balance has been and ongoing query on the TMA balances.

A proposal has been submitted to AMU requesting for the write off of the variance of the TMA allocations.
31Finance Instructions, Section 40 Ministry of Finance Section 04: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The correct figure for Arrears of Revenue is the balance as per FPO records amounting to $113,549 is to be maintained.

4.31 Absence of Board Member during Tender Box Opening The Board Secretary and Board Secretariat have a key to the tender box.
On the day tenders are opened, the Board Secretary opens the tender box in the presence of one board member and bidders.

When tenders are opened, the Board Secretary records all the bids received in a Tender Register.

Bids are stamped and initialed by the Board Secretary and the member present during the opening.
Every page of the bids received are stamped and initialed and dispatched to the procuring agency for evaluation.32 The above processes and procedures is fundamental for promoting open and fair competition amongst suppliers and contractors, promoting the integrity of fairness and public confidence in the procurement process and achieving accountability and transparency in the public sector.
Our audit review of the tender opening attendance register for the year 2013 revealed that on numerous occasions a Board Member was not present during the tender box opening.

In addition, the tender documents were not initialled before the tenders are evaluated.

Refer to the Table 36 below for examples: The Director Procurement Office and Manager Tenders confirmed that board members were not always available when the tender boxes are opened.
Table 4.36: Examples of tenders opened without the presence of a Board Member Tender No.
CTN 01/2013 CTN 13/2013 CTN 19/2013 CTN 35/2013 CTN 44/2013 CTN 138/2013 CTN 105/2013 Tender Opening Date 27/02/13 20/02/13 27/02/13 27/03/13 27/03/13 25/09/13 17/07/13 Tender For Purchase of Laboratory Equipment Contract of Supply of Equipment Contract of Supply of Computer to Plate (CtP) Machine Contract for the Supply of Vaccines for Fiji Military Forces Contract of Supply of Multi Beam Echo Sounder System (MBES) Contract of Data Communication Networking Equipment Contract of Supply of Forensic Deoxyribose Nucleic Acid (DNA) Database Tender Amount 257,009.31 207,135.00 239,512.05 178,230.07 609,710 117,143.73 Withdrawn The above practices indicate that the integrity of fairness and public confidence in the procurement process and achieving accountability and transparency is being compromised.
Recommendations   The Procurement Office should ensure that a board member is present during tender box opening.

The Procurement Office should develop alternative procedures to ensure that the integrity of fairness and public confidence in the procurement process and achieving accountability and transparency in the public sector is maintained.

Management Comments FPO notes the recommendation made.
32 Guide to the Tender Board Procedures – Section 4.1.1 to 4.1.4 Ministry of Finance Section 04: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ It should be noted that the membership of the GTB was amended which reduced the membership from 8 to 5.

As such, given the reduced membership and their hectic schedules, it was difficult to have a GTB member present as highlighted.
On that note, however, the GTB are quite aware of the requirement to have a member present and a roster has been drawn up to ensure that a GTB member is present during tender box opening.

It must also be noted that some bidders are also present during tender opening and when bids are opened company names are called out which are recorded by FPO and bidders alike.
This in our view despite the absence of a member leaves no room for manoeuvre and is an indication of a fair, transparent and accountable process.

The GTB regulates its own proceedings and as such, the decision for an alternative is their decision and should not compromise the integrity and fairness of the procurement process.
4.32 Balances Non-performance of reconciliations for Vision Core and FMIS Within 3 days of receiving the monthly general ledger reports from Payment Section, the CO Vote Book shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.

Any errors or misallocations must be immediately adjusted by way of journal vouchers.

The ledger reconciliation statement shall be forwarded to the Accounts Officer Treasury.
The Accounts Officer Treasury must ensure that all balances are accurate and adequately supported; any misallocations or outstanding balances from the previous month have been dealt with.33 The audit noted that the Fiji Procurement Office (FPO) uses Vision Core accounting software to record its daily transactions which is then uploaded onto the Financial Management Information System (FMIS) general ledger.
However, there were no reconciliations prepared and maintained for accounts receivable, accounts payable and vision core revenue batches that were uploaded from Vision core to FMIS.

The following anomalies were attributed to differences arising as a result of balances uploaded from Government Supplies System to the FMIS general ledger:  TMA creditors for Procurement Office showed debit balance of $597,668 contrary to the nature of the balance that the account should have.
 TMA debtors for the Procurement Office totals to $2,337,960 whereas the arrears of revenue as at 31/12/2013 showed arrears of $113,548 only.

Failure to reconcile these uploaded balances made it difficult to rectify balances for the correct presentation of the TMA financial performance and position.
The audit was not provided with satisfactory explanation from the Office despite attempt to obtain comments.34 Recommendation The Procurement Office should ensure that the uploaded balances from the Vision Core accounting system to the general ledger (FMIS) are reconciled on a monthly basis.
33Finance Manual 2011, Section 16.3.3, 16.3.4 & 16.3.6 34 E-mail dated 01/04/14 Ministry of Finance Section 04: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comments No comments received.

GOVERNMENT PRINTING & STATIONERY DEPARTMENT 4.33 Budget Allocation For 2013 The Department’s revised budget in 2013 totalled $2.77 million.
The distribution of the Department’s budget into the various Standard Expenditure Groups (SEGs) is represented in figure 4.6: Figure 4.6: Budgetary Allocation by Standard Expenditure Group The Department’s budget allocation was divided into operating expenditure totalling $2.1 million or 75%, capital expenditure totalling $0.5 million or 20% and VAT expenditure totalling to $0.1 million or 5%.
Refer Table 4.37 for details of budgeted expenditure to the actual expenditure incurred in 2013: Table 4.37: Budgeted Expenditure versus Actual Expenditure SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Capital Purchase 13 Value Added Tax 283,110 15,400 443,207 27,631 550,993 155,600 Savings %age Revised Estimate ($) 1,303,572 Actual Expenditure ($) 1,100,427 ($) 203,145 269,674 13,436 15,226 174 327,820 115,387 26.0 25,657 1,974 550,993 0 136,248 19,352 15.6 4.7 1.1 7.1 0.0 12.4 12.7 2,779,513 2,426,045 353,468 Ministry of Finance Section 04: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 4.34 Account Balances Variances between Departmental Records and General Ledger Within five working days when Ministry of Finance issues the monthly general ledger reports, the Accounts Officer shall reconcile the revenue figures in the report to the Revenue Statement.35 The audit noted of a variance of $21,628.06 between Departmental records and the Financial Management Information System (FMIS) general ledger records.
Refer to table below for details.

Table 4.38 Balance Variance between Trading & Manufacturing Account (TMA) Sales and FMIS Details Sales as per General Leger (FMIS) Sales as per Quarterly report 2013 Variance Amount ($) 1,696,679.80 1,718,307.86 21,628.06 The above variance was noted during the audit which was not rectified when the Department carried out its monthly reconciliation.
In addition, the audit noted that expenditure of $9,175.97 was wrongly posted to TMA liability allocation of Unearned Income (4-04451-66999-850201) instead of a TMA expense allocation.

The above variance clearly indicates the laxity in supervisory checks to ensure that reconciliations are carried out correctly.

Recommendation The Department must ensure that these variances are investigated and rectified as required under the Government Printing Department Finance Manual.
Department Comments For the variance noted in Table above, we would like to state that we have been preparing monthly reconciliations and at that point in time both our reconciliations and the general ledger figures were the same.

We have now determined that the variance is reflected in April - $20,587.30 and December - $1,040.76.

This adjustment was raised and posted by AMU of Ministry of Finance vide Journal ID TMA016 as per screen shot below.
We have been advising them to reverse this journal as the double posting was done by them.
4.35 Variances between General Ledger and Department Records Within one month after the end of each quarter, each agency with accounts receivable must submit a quarterly report on outstanding and overdue debts to the Ministry of Finance.36 35 GPSD Finance Manual 2011 - Section 5.5.12 Ministry of Finance Section 04: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The audit noted an unexplained variance of $275,448 in the arrears of revenue return submitted by the Government Printing & Stationery Department (GPSD) to Ministry of Finance with the general ledger records.
Refer to Table 4.39 for details: Table 4.39: Variance between the Department Records versus General Ledger Records Description Arrears of Revenue as per the Department record (Arrears of Revenue Return) Arrears of Revenue as per the General Ledger (4-04400-00000-560000) Variance Amount ($) 368,368 643,816 275,448 Figure 4.7: Arrears of Revenue Trend Analysis for the past 6 years The Department Accounts Officer revealed that the Department is liaising with Ministry of Finance (FMIS Division) to rectify to the abovementioned variance.
Despite being raised in previous years audit reports, the Department has yet to resolve this issue.

Recommendation The Department should consult Ministry of Finance (FMIS) Unit and reconcile these variances between the Departmental records and the general ledger records.

Department Comments The variance is due to the following: (i) On some occasions we invoice customers for the normal printing charges plus a component of overtime payment.
(ii) On other occasions customers raise one cheque for normal printing jobs plus payment for gazette subscriptions.

When receipting is done in the 2 scenarios above, the total amount inclusive of overtime payment and subscription payment is initially receipted into Fund 4 (TMA).

However, overtime payment and subscriptions needs to be accounted for in Fund 1.
Thus, we normally raise a cheque from the general ledger (Fund 4) and this is then paid into Fund 1 to offset the overtime payment made from SEG 1 and also to record the subscription as government revenue in Fund 1.

The effect of the above transactions is that the Arrears of Revenue in the G/L will always be less than the amount shown in the Aged Arrears Report maintained by the Department because the payment amount initially recorded in the G/L has been split and a portion of it has been paid to Fund 1.
36 Finance Instruction 2010, section 43 (1) Ministry of Finance Section 04: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Aged Arrears Report is not affected because the raising of cheques and subsequent payment into Fund 1 is not reflected in that report but only in the G/L.
4.36 Urgent Printing Services without Approval Outsourcing is the business process of contracting third-party providers to supply products or services which are delivered and paid for.
A tender must be called for the procurement of goods, services or works valued at $50,001 and more.37 Where there is an urgent need for goods, services or civil works and engaging in tender proceedings would be impractical due to time constraints or cost factors, but provided that the circumstances giving rise to that urgency were not foreseeable by the procuring ministry or department.

Agencies must seek approval of the Minister before undertaking any emergency procurement.
These submissions must be processed and analyzed by the Fiji Procurement Office before submission to the Minister38.

There will be properly vetted contracts through the Office of the Solicitor General prepared and entered into for any outsourced function of Government39.

The audit noted that the Department outsourced its urgent printing services to Max Marketing & Publishing Ltd during 2013.
The following anomalies were noted:  There was no agreement with Max Marketing & Publishing Ltd for the outsourced services during the year 2013; and  The Department did not request the approval of the Minister due to the urgency of the services which was not foreseeable as required under section 32 of the Procurement Regulation 2010;  Total outsourcing incurred by the Department for the printing of these books was $85,118.03 and tender should have been called for as required under the section 30 of the Procurement Regulation.
Refer to Table 4.40 for details.
Table 4.40 Detail of Outsourced Services without Approval Date Cheque # 06/02/13 12/02/13 04245 04255 Amount ($) 11,600.00 18,580.00 26/03/13 04282 19,579.99 13/06/13 04323 7,550.04 10/09/13 20/06/13 04366 04397 2,100.00 10,820.00 Payment for  Printing of Link 3 text book (2,000)  Maths Class 8B (1,000)  Elementary Science 5 Workbook (1,010)      Soopan 2 Class 3 (2,000)  150gsm Matt Art SRA1 (20 pkts)  Printing of Civil List cover (150) Link 4 Pupils Book (1,750) Link 1 Pupils Book (1,000) Link 4 Pupils Book (1,000) Listen, Speak, Read and Write (1,000) 37 Procurement (Amendment) Regulations 2012 – Section 30(1) 38 Procurement Regulations 2010 – Section 32(1)-(4) 39 PSC Circular No: 15/2011 – Section 6.1 Ministry of Finance Section 04: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Cheque # Amount ($) Payment for 22/11/13 07/11/13 04424 04426 720.00 14,168.00  Viti Makawa (600)  Agriculture posters (500)  2014 Diary (8,000)  Burning of plates for school magazine (48)  A4 Exercise Book 100pgs (3,000)  A4 Exercise Book 200pgs (3,000)  Maths 4C A4 200pgs (1,500)  Maths 4C B5 100pgs (1,500)  A4 TD Workbook 40pgs (1,000)  B5 Exercise Book 80pgs (2,000)  B5 Exercise Book 100pgs (1,000)  B5 Exercise Book160pgs (1,000)  B1 Note Book 120pgs (500) Total for 2013 85,118.03 The Manager Tenders at Fiji Procurement Office verbally confirmed that tender should have been called for40.
Proper procurement procedures were not followed by the Department as it did not comply with the Procurement Regulations.

Recommendation    The Department should ensure that prior approval of the Minister as required under section 32 of the Procurement Regulation 2010 is obtain for all urgent printing.
The Department should obtain the Tender Board Approval if the procurement of goods and services are valued at $50,000 or more as required under Section 30(1) of the Procurement (Amendment) Regulations 2012.

The Department should enter into contractual agreement with printing company to supply the printing products or services.

Department Comments Firstly, we do not understand why the Auditors never asked management to comment on this.

Let us give the background to this case.


The Department normally receives order from Post Fiji Ltd around November and December every year to print school text books for the next school year.

However, we had deliberately held on to the printing of text books since Post Fiji Ltd owed us $20,691.94 for prior printing jobs.

When the all clear was given to print, our main commercial printer (SM74) developed mechanical problems.

The other printers we had did not have the capacity to print such a big order.
In order to meet the delivery dates of these school text books we had no other options but to outsource the printing to commercial printers.

Most of the printing was done during January and February 2014.

Since the first term for 2014 commenced on 20/01/14, time was not on our side, hence outsourcing was the only viable option.
The process undertaken to print each of the text book is summarized below:  Three quotations were obtained for each text book  Job awarded based on the lowest quote received  GPSD adds its 15% mark up  LPO issued to printer to print which was within Government Printer’s authority limits  Invoices sent to Post Fiji Ltd upon successful delivery of text books 40Email from Josua Rabukawaqa dated 26/03/14 Ministry of Finance Section 04: Page 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The point we would like to stress is that the Department needed to deliver its output on the due date and going through the tender process would have considerably delayed the availability of text books to Post Fiji Ltd and subsequently to students for the 2014 school year.
4.37 Anomalies in Stock Tally Cards The Government Printer shall nominate officers to undertake an annual board of survey of fixed assets and expendable items to determine whether government plant, equipment and inventories under his or her control are in working condition or serviceable, unserviceable or obsolete or surplus to the requirement of that agency.41 When inventory items are purchased, the inventory clerk shall record them in the inventory register or non-expendable register.
Inventories kept for sale must be recorded on tally cards.

The inventory clerk or Store man or any officer responsible for stores or stock shall ensure that tally cards and non- expendable items or Assets register are kept up to date at all times.42 The stock take officers shall count the stock and verify it to the inventory register or tally card.
Details of the stock take must be recorded on inventory stock take sheets, which must be signed by the stock take officers after completing the stock count.43 The following anomalies were noted on the stock tally records: (i) The Department did not update the tally cards for those items purchased during the year.

Refer to Table 4.41 for details.


Table 4.41 Details of Purchased Items not entered in the Tally Card Date Cheque # Description Remarks 05/03/13 04239 Envelopes (6*4) 60 boxes were purchased but only 54 boxes were recorded in the tally card.

6 boxes were not recorded costing $180.00 15/11/13 04404 Envelopes (9*4) 50 boxes not recorded in tally card costing $1,932.00.

(ii) Moreover, a random check of selected items revealed that those items in stock did not tally with the tally card records.
Refer to Table 4.42 for details.
Table 4.42 Discrepancies in Tally Cards Description A5 Diaries Physical Count 0 Paper Stores – General Tally Card Balance 148 Bank Paper 50GSM SRAI Blue Green Bond Paper 70 GSM SRAI Sunshine Yellow BD SRA2 Wood Free 120GSM SRA2 Legal Papers Green Board 230GSM SRAI 6,365 18,506 4,815 33,750 633 6,288 18,424 4,690 33,000 617 Variance 148 77 82 125 750 16 41 GPSD - Finance Manual 2011, Section 11.4.1 42 GPSD Finance Manual 2011 - Section 8.1.2 & 8.1.4 43 GPSD Finance Manual 2011 – Section 8.3.2 Ministry of Finance Section 04: Page 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Green Board 230GSM SRAI Red Board 280MIC SRA2 Art Paper Pancote Sticker 1000x700 Gloss 130GSM SRAI Gloss 150GSM SRAI Gloss 200GSM SRAI 1 Side C/Coated BD 300GSM NCR Paper Blue CFB NCR Paper Pink CF White CB Green CF Parchment Paper 140GSM SRA1 Blue Marble Paper Dark Brown Light Green Physical Count 1,756 363 1,579 2,840 3,045 403 2,348 5,960 11,642 12,282 35,830 19,372 Studies 7 Mathematics Commercial Workbook Form Solution Manual Island Dolphins Maths 7 – EA101310 the of Blue 45 400 Bookshop 59 8 113 79 Tally Card Balance 1,759 360 1,522 2,830 3,040 400 2,332 5,689 11,536 12,280 35,750 19,375 47 403 24 10 104 238 Variance 3 3 57 10 5 3 16 271 106 2 80 3 2 3 35 2 9 159 (iii) A stock take report for the year ended 31/12/13 revealed that the stores records for Stationery and Factory Stores revealed huge deficit and surplus of inventory balances to records maintained by the Department during an actual physical count.
Refer to Table below for details of these: Table 4.43: Discrepancies in Inventory Balances Name of Stores Stationery Factory Stores Total Deficits ($) 89,565 22 89,587 Surplus ($) 2,340 816 3,156 Inventory surplus/deficits are indications of tally cards not being updated and laxity in inventory control system hence there are risks of losses and theft.

The above indicate the lack of proper supervision and control procedures for handling inventories records have not been strengthened.
Recommendations  The department should ensure that the management of inventory is strengthened and surprise inventory count could be considered to ensure that deficit and surplus being reduced to acceptable level.
Ministry of Finance Section 04: Page 41 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Any disparity in the tally cards to the physical stock balances are investigated and surcharge action taken against the store man for laxity in record keeping.

Department Comments We did conduct the 2013 BOS contrary to your comments.
However, since we have started reporting to the Ministry of Public Enterprise from the beginning of 2014, there had been a delay in the approval of the BOS team, thus the BOS has not been endorsed during the time of audit.

We have taken your second recommendation on board.

Consequently, we have carried out another stock take on 30/06/14.
Through this stock take we have updated all the stock cards and going forward, we will conduct surprise inventory count to ensure that stock cards are being updated on time.

Finally, staffs responsible for handling stock will be advised to be more vigilant and to update stock cards as soon as there is a movement in stock.

4.38 Fixed Assets Register Anomalies All assets acquired with a cost in excess of $2000, shall be recorded in a fixed assets register44.
The designated asset clerk must ensure that the fixed assets register is kept updated.45Relevant Discrepancy and Unserviceable Schedules shall be prepared and submitted to the Permanent Secretary of Finance (PSF) for approval46.

The audit noted the following anomalies: (i) The Department did not update its fixed asset register during the year 2013.

Refer to Table 4.44 for the details of the items purchased not recorded in the fixed asset register.
Table 4.44 Details of Items purchased during the year but recorded in FAR Date Cheque # Vendor Details 14/06/13 04301 04/09/13 04352 12/04/13 04264 Office Products Bio security access control Office Products Multimedia projector Logical System 3 Mac Computers Total Amount ($) 6,000.00 4,195.00 30,256.66 40,451.66 (ii) The Department failed to prepare the unserviceable schedule to be submitted to Permanent Secretary for Finance for write-off approval.
The following items were disposed as scrap by the Department but still recorded in the fixed asset register as at 31/12/13.

Refer to Table 4.45 for details: Table 4.45 Unserviceable Items Still Recorded in FAR Item Description Wohlenberg – Guillotine Serial #: 3010-008 Wizard GW 12000 Numbering Machine Original Cost ($) Unserviceable Item as per Board of Survey (BOS) 140,000 BOS dated 5/12/11 noted that the item is uneconomical to repair.
10,000 BOS dated 25/7/12 noted that the item is uneconomical to repair.

44GPSD Finance Manual 2011 – Section 11.1.


45 GPSD Finance Manual 2011 - Section 11.2.2 46GPSD Finance Manual 2011 – Section 8.3.1 Ministry of Finance Section 04: Page 42 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Item Description Total Original Cost ($) 150,000 Unserviceable Item as per Board of Survey (BOS) There are some obsolete items still maintained by the Department and recorded in its fixed asset register.

Refer to Table 4.46 for details.


Table 4.46 Obsolete Items Still Recorded in FAR Item Description Bourg BST10 Collating Tower Kord Printer Roland Favourit Printer KSBAZ Heidelberg Machine Original Cost ($) Obsolete Item as per Audit Inspection 42,000 Machine was purchased on 20/09/06 with an estimated useful life of 5 years.

As per audit inspection on 02/03/14, the machine was no longer working but kept in the Department store.
The machine is no longer in use as the electronic program is corrupted by faulty electronic boards and it will be a costly exercise to maintain the machine as per BOS Machine Report 2013.

75,000 Machine was purchased on 18/07/60 with an estimated useful life of 5 years.

As per audit inspection on 02/03/14, the machine was no longer working but kept in the Department production area.

63,000 Machine was purchased on 05/09/69 with an estimated useful life of 5 years.
As per audit inspection on 02/03/14, the machine was no longer working but kept in the Department production area.

Machine is obsolete and uneconomical to repair as per BOS Report 2011.

50,000 Machine was purchased on 05/09/60 with an estimated useful life of 10 years.

As per audit machine on 02/03/14, the machine was no longer working but kept in the Department production area.

Machine is beyond repair due to the unavailability of parts as per BOS Machine Report 2013.
Total 230,000 The above findings indicate that the Department has continued to maintain unserviceable items and machines which are uneconomical to repair thus occupying spaces unnecessarily Recommendations The Department must ensure to maintain and update the fixed assets register after every purchase of new assets and disposal of obsolete assets.

The Department should dispose all equipment that has been authorized for write off.

Department Comments Your comments are noted.


We had carried out the first step of identifying which machines needs to be written off but haven’t proceeded to request for approval as all the GPSD assets are due for sale in 2014 and those machines that are no longer working would be disposed in the process.

INFORMATION TECHNOLOGY AND COMPUTING SERVICES 4.39 Budget Allocation For 2013 The proper management of expenditure is fundamental to ensuring value-for-money in delivering services to the community.
As well, having cost-effective internal controls within the purchasing and Ministry of Finance Section 04: Page 43 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ payments system plays an important part in ensuring that waste of funds, over-expenditures and corruption do not occur.47 The Department’s budget was revised to $13.8 million during the year.
The distribution of the Department’s budget into the various Standard Expenditure Groups (SEGs) is shown in Figure 4.8: Figure 4.8: Budgetary Allocation by Standard Expenditure Group The Department’s budget allocation was divided into operating expenditure totalling to $11.9 million or 86%, capital expenditure totalling to $453,503 or 3% and VAT expenditure totalling to $1.4 million or 11%.
Refer Table 4.47 for details of budgeted expenditure to the actual expenditure incurred in 2013: Table 4.47: Budgeted Expenditure vs Actual Expenditure SEG Item Established Staff Savings %age Revised Estimate ($) 2,743,458 Actual Expenditure ($) 1,852,136 ($) 891,322 Government Wage Earners 35,052 34,146 906 Travel & Communications 1,376,000 1,353,529 22,471 Maintenance & Operations 2,180,300 1,634,118 546,182 Purchase of Goods & Services 3,974,907 3,916,735 58,172 Special Expenditure Capital Construction Capital Purchase 1,640,000 350,000 103,503 0 1,640,000 100 258,616 100,181 91,384 3,322 13 Value Added Tax Input Tax 1,443,748 1,099,709 344,039 Total Expenditure 13,846,968 10,249,170 3,597,798 32 3 2 25 1 26 3 24 26 A savings of $3.6 million or 26% of the total budgeted expenditure was noted at the end of 2013.
47 Finance Manual 2011 – Part 2 Expenditure Ministry of Finance Section 04: Page 44 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 4.40 Limitation of Scope In the performance of his functions and duties under the Audit Act, the Auditor-General or any person duly authorized by the Auditor - General shall be entitled: a) to have access to all records, books, accounts, vouchers, documents, cash, stamps, securities, stores or other Government property under the control of any officer; b) to send for and have the custody of any records, books, accounts, vouchers or documents under the control of any officer, and to keep such records, books, accounts, vouchers or documents for such time as he or she may require them.48 In the performance of his or her duties, the Auditor General or a person authorized by him or her has access to all records, books, vouchers, stores or other Government property in the possession, custody or control of any person or authority.49 The Steering Committee shall ensure that ITC as a separate entity is audited at least once a year.50 At the commencement, the following documents were requested from ITC for audit purposes however it was not being made available for our review.
Refer below for details:  IT policy for the Government of Fiji to be completed by Yalamanchili International PTE Ltd in accordance with section 6.2.1 of the Head Agreement;  The Revenue sharing agreement between the Government of Fiji & Yalamanchili International PTE Ltd in accordance with 3.3 of the Head Agreement;  Approved ICT procurement policy in accordance with section 14(3) of the ITC Decree;  Internal audit report/compliance team report for the year 2013.
During the meeting on 11/02/14 with ITC Manager Messrs Nisar Ali and the Accounts Officer Atin Chan it was revealed that these documents are available with the Steering Committee.

The audit made request to the Secretary of the Steering Committee which was not successful.51 The Department did not comply with the provision of the Audit Act and section 152(4) of the Constitution of the Republic of Fiji.
Hence, audit was unable to verify whether sound procurement process was followed by the Committee and whether Yalamanchili International PTE Ltd has complied with the head agreement.

Recommendation The Department must ensure that the all requested documents are produced for audit purposes.

Management Comments 1.
It must be noted that the Reform of Information Technology and Computing Services Decree 2013 (‘Decree’) came into effect on 10 May 2013 and the ITC Steering Committee first convened on the last week 48Section 7.2: Audit Act 49Section 152(4): Constitution of the Republic of Fiji 2013 50Reform of ITC Decree No.17 of 2013 51Email to Tupoutua'h Baravilala dated 29/01/14 and 13/02/14 Ministry of Finance Section 04: Page 45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ of August 2013.
Therefore, ITC was going through a transitional period and attending to urgent ICT matters for whole of government.

2.

The Revenue Sharing Agreement was not provided by the Secretary to the Steering Committee at the time of the audit query as it was not yet finalised.

We can confirm that there is no Revenue Sharing Agreement and that the Head Agreement was terminated on 24 April 2014.
However, the Software and Management Agreement were both executed on April 2014 and it contains the relevant provisions from the Head Agreement.

3.

The issue of the ITC Procurement Policy not being provided by the Secretary to the Steering Committee at the time of the audit query will be discussed in detail in the comments for issue 7.4 4.
In any event, the Management reiterates that the provisions of the Decree are complied with and that the provisions of the Software and Management Agreements are also complied with.

5.

With regards to the IT Policy and the Internal Audit Report/Compliance Team Report for the year 2013 not being provided by the Secretary to the Steering Committee at the time of the audit query, our response is that we are not in a position to formulate such a policy and Report.
It must be noted that ITC is undergoing an ISO 27001 Certification “Information Security Management System and Quality Management System”.
These certifications will address the following:  Systematically examine the organization’s information security risks, taking account of the threats, vulnerabilities, and impacts;  Design and implement a coherent and comprehensive suite of information security controls and/or other forms of risk treatment (such as risk avoidance or risk transfer) to address those risks that are deemed unacceptable; and  Adopt an overarching management process to ensure that the information security controls continue to meet the organization’s information security needs on an on-going basis.
Further OAG Comments The comments provided are noted however, audit was not able to fully cover the planned scope of the audit work for the 2013 engagement due to the non-availability of required information.

4.41 Absence of Information Technology (IT) Strategy IT strategy is a comprehensive plan that information technology management professionals use to guide their organizations.

Once the steering committee agrees on a future direction for IT, the decisions should be formalised and documented in a plan.
The future direction agreed by the IT steering committee is normally set out in a document known as the IT strategy.

The IT strategy is in effect the starting point for an IT investment as it identifies future changes which have to be budgeted for.

The decisions and planned changes specified within the IT strategy would then be fed into the Ministry’s and Department’s annual plan.
The Public Private Partnership agreement was signed between the Government of Fiji and Yalamanchili International PTE Ltd on 28/09/12.
Ministry of Finance Section 04: Page 46 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Under the agreement, Yalamanchili was to provide the strategy and develop an overall blueprint of the Governments Technology Road map; identify, conceptualize, design, build and implement all the necessary software applications, enhance and implement the current applications and ensure seamless integration of all applications, current and new, so as to deliver services to government departments, its employees, citizens and end users as part of the Fijian Government e-governance programs.52 The audit made request to the Secretary to the steering committee to confirm whether the IT strategy have been put in place but a response to our request were not forthcoming.53 In the absence of an IT strategy would indicate that the head agreement for the public private partnership have not been adhered to and there is no blue print for the Government technology roadmap.
Recommendation The Department must ensure that the Head agreement provisions are complied with.

Management Comments 1.

Preparatory work on the ISO certification has commenced.

Our plan is to work for ISO audit and certification towards the end of the year.

On completion of the ISO Certification, this will set the international standards for the Government to build and develop IT policies.

2.
2.

It must also be noted that the Government Technology Roadmap and Blueprint 2012 which was presented to and approved by the Prime Minister, also carried out a preliminary “As Is” audit of ITC and reported its findings in the report together with its recommendations.

Please note that ITC has been implementing the recommendations of the report.
4.42 Contracts awarded without Approved Procurement Policy The Steering Committee shall formulate a procurement policy for the procurement of all ICT goods, services and works by ITC.
All ICT goods and services procured by the Steering Committee shall be in accordance with the procurement policy.54 The following anomalies were noted: (i) (ii) An annual procurement policy is yet to be put in place; There have been various purchases approved by the Steering committee without any reference to a procurement plan or aligned to the procurement policy.

Refer to Appendix 4.1 for details.


Discussions revealed that there was a draft procurement policy which is yet to be approved by the steering committee.55 In addition audit made an effort for copies of the procurement policy for review but it was not made available.
In the absence of a procurement policy, the Department may not be able to put in place strategies in terms of planning on the steps to carry out any purchases for ICT equipment and also those measures to ensure that there is value for monies on those purchases.
52 Head Agreement for Public Private Partnership Agreement in Fijian Government – Section 7.1.1 53Email to Tupoutua'h Baravilala dated 29/01/14 and 13/02/14 54 Reform of ITC Decree No.17 of 2013 – Section 14.1 & 14.3 55 Email from Ponijese Bainimoli dated 29/01/14 Ministry of Finance Section 04: Page 47 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendation The Annual Procurement Policy to be in put in place by the Steering Committee as required under the Reform of ITC Decree relating to ICT equipment.
Management Comments 1.

The Procurement Policy was not provided at the time of the audit query, as it was still being finalized.

Notwithstanding this, ITC and the Steering Committee has continued to follow the standard government procurement process during this transition period.

This is in-line with the process requirement of the Procurement Regulation 2010 (‘Regulation’).

Procurement process in-terms of Tender, Quotation and waiver of tender on sole supplier basis and urgent procurements.
Also, all budgeted spending under the RIE goes through the normal process.

2.

Since the promulgation of the Decree and establishing of the Steering Committee, the evaluation process has been significantly improved and enhanced, particularly, that all procurement undertaken (RFT & RFQ) had proper referencing such as invitation letters for submission of proposal, closing date and time, evaluation, recommendation and submission for management and ultimately, ITC Steering Committee approval.
Furthermore, negotiations conducted by ITC – part of the Regulation requirements – resulted in government saving more than $1 million last year.

3.

As highlighted in your memorandum, the draft policy has yet to be finalized and endorsed by the Steering Committee; therefore it could not be disclosed at the time of the audit query.
As highlighted in the 2013 minutes (which was disclosed to your office as an attachment to the 24 January 2014 letter), the draft Procurement Policy had gone through several rounds of vetting by the Office of the Solicitor General and it is anticipated to be finalized soon.

4.

It is our position that the current interim process and practice undertaken by ITC, complies with the Decree and relevant legislations.
Further OAG Comments The audit is still not able to verify tenders processed in 2013 against the approved ITC procurement policy.
Ministry of Finance Section 04: Page 48 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES Appendix 4.1: Policy Approved Contracts Without Approved ICT Procurement Contracted Amount ($) Contract Term $23,184.00 3 Years Fire Fighting Enterprise Ltd $30,406.50 Automatic Fire System Fiji Ltd $4,212.00 3 Years 3 Years Contract Name Service Provider Eagle Cleaning Service (SP) Ltd Jaibul General Maintenance Kooline Refrigeration Ltd Eagle Cleaning Service (SP) Ltd External Cleaning the Fire Telecom Fiji Limited Danz Electrical Fiji Ltd Facilities Contract Maintenance & Support of the Data Center Electrical System Maintenance & Support of the Data Center Fire Systems Maintenance & Support of Alarm Systems for the Data Center Indoor Cleaning Services Contract for the Data Center Contract for Maintenance for Data Centre Contract for Government Data Centre Ventilation and Air Conditioning Unit Maintenance Contract for Government Data Centre Water Blasting Services Communication Contract GOVNET Private Network Service - MPLS Contract IP Transit Service (Internet Services) Private Network Services MPLS – Suva, Nausori, Savusavu, Rotuma.
VSAT Satellite C-Band Up and Downlink for GOVNET Connection ICT Core Infrastructure Primary Cisco Networking Equipment Maintenance & Support services VeriSign SSL Secure Site Pro Websense for Web-Content Filtering & Management Solution - CA Arc Serve Licensing for Backup Solutions Software Licensing Microsoft Enterprise Agreement Oracle Licensing Oracle Short Conversion Payroll Application Net Express and Server for COBOL Support Payroll Maintenance & Support Upgrade Solutions For Business Smart Draw 2013 Iron Speed designer SmartDraw Iron Speed Pty Limited Australia Communication Pty Ltd Data#3 Oracle Australia Symantec Australia Oracle Australia e-Communities VT Solution Licensing DIGICEL Fall & SignLab FINTEL Data#3 MicroFocus Pty Ltd Australia Satellite $41,124.60 3 Years $4,020.00 3 Years $6,954.00 3 Years $4,300 3 years $56,685.35 $12,650.00 $8,550.00 1 Year 3 Years 3 Years US $5,060.00 3 Years $150,293.01 1 year AUD $13,580.00 3 Years $108,767.00 1 year $90,440.17 3 years $10,645,415.35 AU$58,534.77 $393,075.95 AU$5,193.30 $30,000.00 US $999.00 US $2,400.00 3 years Annual Annual Annual Annual Annual Annual Ministry of Finance Section 04: Page 49 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 5 Ministry of i-Taukei Affairs Role and Responsibilities The Ministry of i-Taukei Affairs is responsible for developing, implementing and monitoring policy advice and programmes focused on the ‘good governance and well being of the i-Taukei people’ as stipulated in the i-Taukei Affairs Act (Cap 120).
MTA provides the link between the government and various units of the i-Taukei Administration that cascades to the fourteen (14) provinces throughout Fiji.

The Ministry is the custodian of official records of i-Taukei intellectual properties and various registers significant to the i-Taukei community and culture, and acts as the judiciary for all i-Taukei disputes on land, customary fishing grounds and traditional headship titles.
The Ministry facilitates and promotes programmes aimed at safeguarding i-Taukei traditional knowledge and expression of cultures.

An additional role of the Ministry is to administer scholarship awards for i-Taukei and Rotuman students, with the objective to facilitate academic development that will hasten an “enlightened vanua for a progressive Fiji”.
Table of Contents PART A: 5.1 5.2 5.3 PART B: 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 FINANCIAL STATEMENT..................................................................................................................................... 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 2 Appropriation Statement ........................................................................................................................................ 3 AUDIT FINDINGS .................................................................................................................................................. 3 Expenditure Ledger Not Maintained ...................................................................................................................... 3 Uncleared and Significant Un-presented Cheques ................................................................................................ 4 Non-reconciliation of Cash Collection recorded in the General Ledger ................................................................. 6 Revenue Collected from Recovery of Bonds not reflected in the Agency Financial Statement............................. 7 Unreconciled Trust Cash at Bank Fund Account ................................................................................................... 8 Operating Trust Fund Account – Unresolved Carried Forward Balances .............................................................. 9 Revenue Not Included in VAT Assessment ......................................................................................................... 11 Unauthorized In-Service Training ........................................................................................................................ 12 Fail Internal Control for Telecommunication ........................................................................................................ 13 Absence of Planned Spending for Scholarship Funds......................................................................................... 14 Failure to Instigate the Recovery of Bond ............................................................................................................ 15 Failure to Submit Progress Report on Key Result Areas ..................................................................................... 17 Significant Unutilized Grant in Provincial Council ................................................................................................ 18 PART A: FINANCIAL STATEMENT 5.1 Audit Opinion The audit of the 2013 accounts of the Ministry of i-Taukei Affairs resulted in the issue of a qualified audit report as supporting documents for an adjustment of $507,905 made to the cash at bank was not provided during audit.
As a result the audit was unable to verify the completeness and accuracy of the revenue recorded in the Statement of Receipts and Expenditure.

Without further qualifying the accounts, attention was also drawn to the following matters: Ministry of i-Taukei Affairs Section 05: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ (i) The revenue recovered from bond monies totalling $509,934 was not reflected in the Statement of Receipts and Expenditure.
(ii) The Statement of Losses failed to disclose other losses as the Ministry failed to prepare the board of survey report contrary to section 49 (2) of the Finance Instructions 2010.

(iii) Details were not provided for the dormant Trust Fund Cash at Bank balance of $1,959,998 recorded in the general ledger system.

The Ministry did not disclose any trust receipts and payments in the financial statement.
As such, the audit was unable to determine the impact on the financial statement if any, adjustment which may be necessary if Trust Receipts and Payments were included in the financial statements.

(iv) The Ministry did not reconcile the expenditure in the Financial Management Information System (FMIS) general ledger as no expenditure ledger was maintained.

The Ministry prepared its financial statements from the FMIS general ledger.
As a result the audit was not able to ascertain the accuracy of the amounts stated in the Statements of Receipts and Expenditure.

5.2 Statement of Receipts and Expenditure The Ministry of i-Taukei Affairs collected total revenue of $12,691 and incurred total expenditure of $15,270,002 in 2013.
Table 5.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Agency Revenue TOTAL REVENUE EXPENDITURES Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) 3,705 8,986 12,691 5,222 --- 5,222 2,040,303 117,420 52,053 233,122 45,213 11,938,243 433,514 14,859,868 1,901,642 67,647 52,676 198,362 36,972 13,393,169 471,299 16,121,767 317,250 317,250 92,884 15,270,002 438,406 438,406 82,141 16,642,314 Total expenditure declined by $1,372,312 or 8% in 2013 compared to 2012 due to re-deployment of scholarship fund to Public Service Commission Scholarship fund, unutilized funding for Child Protection, decrease in budget allocation provided to i-Taukei Land Trust Board for Native Reserve Commission and the one off capital commitment in 2012 for the construction of fish pond and dairy farm in Nadave (Centre of Appropriate Technology and Development) for which cost were fully disbursed in 2012.
Ministry of i-Taukei Affairs Section 05: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 5.3 Appropriation Statement The Ministry of i-Taukei Affairs incurred expenditure totalling $15,270,002 against the revised budget of $18,188,131 resulting in a savings of $2,918,129 or 16%.

Details of expenditure against the budget estimates are provided in Table 5.2.
Table 5.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 2,240,795 111,996 70,542 269,500 50,587 14,750,700 534,850 18,028,970 348,586 348,586 132,800 18,510,356 Changes ($) --- --- --- --- --- (322,225) --- (322,225) Revised Estimate ($) 2,240,795 111,996 70,542 269,500 50,587 14,428,475 534,850 17,706,745 --- --- --- (322,225) 348,586 348,586 132,800 18,188,131 Actual Expenditure ($) 2,040,303 117,420 52,053 233,122 45,213 11,938,243 433,514 14,859,868 317,250 317,250 92,884 15,270,002 Lapsed Appropriation ($) 200,492 (5,424) 18,489 36,378 5,374 2,490,232 101,336 2,846,877 31,336 31,336 39,916 2,918,129 In 2013, Cabinet approved the redeployment of $322,225 from Ministry of i-Taukei Affairs to Public Service Commission.
PART B: AUDIT FINDINGS 5.4 Expenditure Ledger Not Maintained All payments, including value added tax (VAT), must be immediately recorded in the Financial Management Information System (FMIS) and an Expenditure Ledger.1 A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.2 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.3 The audit noted that the Ministry does not maintain an expenditure ledger.
As a result, the Ministry could not reconcile its expenditure with that of the FMIS general ledger4 maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Ministry should maintain an expenditure ledger and reconcile its expenditure with the FMIS general ledger on a monthly basis.
1 Finance Instruction 2010 – Section 15 2 Ministry of i-Taukei Affairs Finance Manual 2011 - Section 13.3.1 3 Ministry of i-Taukei Affairs Finance Manual 2011 - Section 13.3.2 4 Financial Management Information System controlled by Ministry of Finance Ministry of i-Taukei Affairs Section 05: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment Recommendation is duly noted.
The unit has now established a Monitoring team to update and reconcile the Expenditure ledger and the General Ledger.
5.5 Uncleared and Significant Un-presented Cheques Ministries/ Departments are required to plan their expenditures well in order to avoid the accumulation of unpresented cheques at year end.5 The Accounts Officer shall prepare bank reconciliation within five days after the general ledger report is received from Ministry of Finance.6 If a replacement cheque is not required, the Accounts Officer shall clear the stale cheques to Expenditure Account and Revolving Fund Account (RFA) – Recoveries of Overpayment in Previous Years.7 As at 31/12/13, the Ministry’s unpresented cheques amounted to $246,830 compared to $1.1million as at 31/12/12, a decrease of $858,477.
Refer Table 5.3 below for details.

Table 5.3: Unpresented Cheques over the 5 Year Period Year 2009 2010 2011 2012 2013 Amount ($) 1,315,129 23,875 347,233 1,105,307 246,830 % Increase / (Decrease) (405,772) (1,291,254) (24) (98) 323,358 1,354 218 758,074 (78) (858,477) The audit noted a variance of $188,604 between the general ledger report and the Ministry’s records.

Refer to Table 5.4 below for details.


Table 5.4: Details of variances between General Ledger and the Ministry’s records Allocation 1-05101-05101-530301 Total General Ledger ($) 246,830 246,830 Ministry’s Records 58,226 58,226 Variance ($) 188,604 188,604 The audit further established that the Ministry did not prepare its reconciliations in a timely manner and as a result the variances were not always properly rectified.

Hence uncleared amount accumulates and were carried forward to the next period.
Refer Table 5.5 for details.
5 Finance Circular 13/2012 dated 19/10/12, paragraph 5.1.3 6 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 6.3.7 7 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 6.4.3 Ministry of i-Taukei Affairs Section 05: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 5.5: Uncleared Amounts Carried Forward From Past Years Year 2011 2012 2012 2012 2012 2012 2012 Description November cheques 2011 – voided in 2012 Excess Debit (Bank Statement – 01/10/12) Excess Debit (Bank Statement – 13/12/12) Excess Debit (Bank Statement – 24/12/12) Excess Credit (Bank Statement – 04/07/12) Bank Adjustment – Joape Saurewa (Bnk Stat.
15/10/12) Bank Adjustment – Joape Saurewa (Bnk Stat.

23/11/12) Total Amount ($) 132,269 (130) (59) (2,064) 685 145 145 130,991 The audit further noted that stale cheques amounting to $78,655 are appearing as a balancing item in the record maintain by the Ministry8 which were not cleared at year end and is contributing to the significant variance noted above.

Refer to Table 5.6 below for details.
Table 5.6: Details of stale cheques Date Payee Cheque Fiji National University Vodafone Fiji 06/08/2012 16/08/2012 16/08/2012 Water Sewerage Sangam Institute 31/08/2012 Cathay Hotel 29/10/2012 Ps Indegenous Affairs 02/11/2012 Josaia W 13/12/2012 Telecom 14/12/2012 USP Labasa Campus 20/12/2012 Brijlal 31/12/2012 31/01/2013 Luke V 05/04/2013 Orisi Vunivi 11/06/2013 18/06/2013 21/06/2013 Total ANZ Kalisito Vuki Kalisito Vuki 025234 025275 025276 025384 025769 025816 026153 026159 026173 026268 026399 026862 027272 68 92 Amount ($) 1,050 1,092 390 70,000 14 2,537 59 2,064 117 180 300 23 529 108 192 78,655 The above shows the laxities of the Accounting Head to ensure the timely preparation of reconciliation to allow clearance of identified variance in a timely manner.
Recommendations  The Senior Accounts Officer should ensure that drawing account reconciliation is prepared in a timely manner.

 The Senior Accounts Officer should clear the variances identified to avoid significant variances reported in the drawing account reconciliation.

Management Comment The recommendations are duly noted.
The Ministry has always ensure that outputs are met as highlighted in Table 5 of the Ministry of i-Takei Affairs Annual Corporate Plan on the Ministry of Finance Deliverables and the preparation of the Drawings Accounts Reconciliation.

This is one strategy that we comply with.


8 2013 December Drawing Account Reconciliation Ministry of i-Taukei Affairs Section 05: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The variance highlighted comprises of the number of cheques/payments that did not hit the General Ledger even though the Accounts Payable (AP) processes were completed.
 Part of these includes payments from the Bond Repayments that were directly deposited into Drawings Account with Bank of South Pacific.

 Most of the Cheques were reflected in AP 470, but somehow missed out when scheduling into GL350.

These cheques will be rectified and Bond repayment cheques to be journalized in the correct Bond Repayment Account.

 The attempt to clear this variance is an ongoing issue in this Ministry.
Therefore once all these cheques are tabulated and submitted for cancellation or to be scheduled further, they automatically omitted from the Drawings report.

 One of the challengers we are also facing is the Financial Management Information System errors in terms of the General Ledger report that we receive monthly.

There seems to be a lot variances, and variations which are notable every now and then.

In that case we fall back to our manual records for confirmation.
5.6 Non-reconciliation of Cash Collection recorded in the General Ledger Within four days of receiving the monthly general ledger reports from the Ministry of Finance, the accounts supervisor shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.
A ledger reconciliation statement shall be signed and dated by the accounts supervisor.9 With the implementation of Financial Management Information System (FMIS), the recording required by the Ministry/Department for the receipt of revenue is a debit to cash at bank and credit to the revenue allocation.10 Thus, any increase in revenue should be met by the corresponding increase in cash at bank general ledger.
The audit noted that the Ministry failed to reconcile the increase in cash at bank general ledger11 to the revenue12 collected during the year.
Refer to Table 5.7 for the variances noted over the three year period: Table 5.7: Increase in Cash versus the Revenue Collections Year 2010 2011 2012 2013 Total Cash ($) 136,721 162,134 203,333 510,223 1,012,411 Movement ($) 136,721 25,413 41,199 306,890 510,223 Revenue ($) 16,148 14,061 5,222 12,691 48,122 Variance ($) 120,573 11,352 35,977 294,199 462,101 Variance (%) 88 45 87 96 91 9 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 13.3.3 and 13.3.5 10 Guide to Streamlining IDC Accounts 2006, Paragraph 3.4 11Financial Management Information System General Ledger Account BSP/CNB – Indigenous Affairs Scholarship - 1-05101-05101-520415 12 Financial Management Information System General Ledger Account - TOTAL REVENUE - 1-05000-00000-SDTR00 Ministry of i-Taukei Affairs Section 05: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In addition, the audit noted that an adjustment of $507,905 was recorded in the general ledger account13 inflating the cash at bank balance for the year.
The Accounting Head failed to adjust the cash at bank general ledger which is accumulating over the years, for which the cash at bank does not exist.

In the absence of reconciliation and the variances noted, the cash at bank balance in the general leger could not be substantiated.

As such, the balance reflected in the general ledger at the end of the financial year could not be relied upon.
Recommendation The Senior Accounts Officer in consultation with the Ministry of Finance should reconcile the increase in cash at bank general ledger to the revenue collected during the year and adjust the cash at bank general ledger for the actual cash held in the bank account.

Management Comment Recommendation of Audit is noted.
It was the practice from previous years that the Ministry of Finance reconciles all Government agencies Consolidated Fund Account (CFA) now Bank Lodgement Clearance Account (BLC) at the end of every month against the records of revenue received/deposited by the Ministry.

This record is forwarded to Ministry of Finance at the end of the month.

As for the reconciliation against General Ledger - Ministry sometimes post current pay-ins the following month which results in variances in the ledger.
These variations have been rectified and taken off.

As for the $507,905 highlighted by Audit – Audit to consult with Financial Management Information System Unit.

5.7 Revenue Collected from Recovery of Bonds not reflected in the Agency Financial Statement A bond is a legal undertaking between the student and the Ministry of i-Taukei Affairs specifying the course, time and cost to undertake the programme.
It requires the students to sign an undertaking to complete the course within the prescribed period, and to be employed in Fiji at the end of studies.

Failure to fulfil the obligations specified in the bond will make the student liable for penalties imposed under the bond.14 A total of $509,934 was recovered as bond monies from overseas sponsored students who failed to return to Fiji to serve their bond.

Refer Table 5.8 below for details of recoveries made for the past three years.
13Financial Management Information System General Ledger Account BSP/CNB – Indigenous Affairs Scholarship - 1- 05101-05101-520415 14 Policies and Management Guidelines of the Ministry of Fijian Affairs Scholarship Scheme 2006 – Part 6.15.1 Ministry of i-Taukei Affairs Section 05: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 5.8: Summary of Bonds Recovered by Country Country Year Fiji New Zealand Australia Great Britain Totals Total Recovered (F$) 2012 54,070 54,976 53,650 --- 162,696 2011 72,879 23,030 21,956 23,000 140,865 2013 246,924 150,804 89,206 23,000 509,934 The audit noted that the revenue collected has not been recorded in the general ledger and subsequently in the financial statements.
The Ministry agreed that the transaction would be accounted in the general ledger by processing a journal voucher in 2013 and follow up will be made to Ministry of Finance to ensure that Account Receivable is integrated in the general ledger system, however this did not eventuate.15 As such, revenue collected by the Ministry is materially understated in the Statement of Revenue and Expenditure in the agency financial statement.
Recommendations  The Senior Accounts Officer in consultation with the Ministry of Finance should journalize revenue collected from the recovery of bond to correctly reflect the financial performance of the Ministry.

 The Senior Accounts Officer and the Director Corporate Services should ensure that concerted effort is made to integrate the Account Receivable in the general ledger.

Management Comment This is noted.


The Ministry continues to receive bond repayments through specific Bank account that was opened by Ministry of Finance and solely maintained by them.

The only linkage between us is that we can access the Bank Statement and also that an account created under head 5.

In terms of reconciling these Bond Recoveries, this was an area that we lacked in 2013, however, revenue received from Drawings Account have been journalised accordingly.
The effort to implement the Accounts Receivable module here would be not necessary at this stage.

With the Scholarship Unit being transferred to Attorney General’s office, it would be more appropriate to transfer the reconciliation as well for monitoring purpose.
5.8 Unreconciled Trust Cash at Bank Fund Account The Ledger Clerk is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.16 The Assistant Account Officers shall keep a trust ledger to record movement of trust money.
The ledger shall record the name of the trust; date and amount of receipts and payee; date and amount paid and payer including reference number; balance to date.17 15 2012 Management Comments on the same issue reported.
16 Ministry of i-Taukei Affairs, Finance Manual 2011 – Part 13 17 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 12.3.2 Ministry of i-Taukei Affairs Section 05: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ As at 31/12/13, the Ministry’s trust cash at bank balance in the general ledger account (Provincial Development - 9-05201-68999-520301) totalled $1.9 million.
Refer Table 5.9 for details of cash at bank balance in the general ledger account for the last five years.

Table 5.9: Trust Cash at Bank Balance over the 5 Year Period Year 2009 2010 2011 2012 2013 Amount ($) 1,030,259 (494,122) (903,039) (1,959,998) (1,959,998) Increase/ (Decrease) - (1,524,381) (408,917) (1,056,959) 0 The audit noted that the Ministry did not maintain any financial records to reconcile the above general ledger balance.
The above shows the laxities of the Accounting Head to ensure that all general ledger account balances are reconcile to the department records.

Recommendation The Senior Accounts Officer should reconcile the cash at bank general ledger account balance in consultation with Ministry of Finance.

Management Comment The Ministry at this stage did not operate True Trust.

However, the amount highlighted by the Auditors belonged to the Ministry of Provincial Development.
This was when the two Ministries were under the same head.

These amounts have been verified with the Ministry of Finance and Provincial Development accordingly.
5.9 Operating Trust Fund Account – Unresolved Carried Forward Balances Within 10 days after the end of each month, the Assistant Accounts Officer shall prepare a trust reconciliation to reconcile trust account balances to the ledger total and the trust bank account.18 The ledger reconciliation statement shall be prepared by the Accounts Officer and forwarded to the Senior Accounts Officer and the Permanent Secretary.
The Senior Accounts Officer must ensure that all balances are accurate and adequately supported and any misallocations or outstanding balances from the previous month have been dealt with.19 Where charges are for payments to organizations through salary deductions, the relevant creditor account shall be credited.
When actual payment is made to the organization, the creditor account shall be debited.20 As at 31/12/13, the Ministry’s Operating Trust Fund Account (TFA) had a credit balance of $27,058 compared to $22,922 in 2012, an increase of $4,136 or 18%.

These comprise of direct payroll deductions made from employee salary and wages.

Refer Table 5.10 for details of balances over the 5 year period.
18 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 12.4.1 19 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 13.3.3 to 13.3.6 20 Ministry of i-Taukei Affairs, Finance Manual 2011 – Section 4.4.3 Ministry of i-Taukei Affairs Section 05: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 5.10: Trust Fund Account over the 5 Year Period Year 2009 2010 2011 2012 2013 Amount ($) 94,072 22,029 43,100 22,922 27,058 The increase resulted from an increase in bond recovery during the year; however unresolved carried forward balances were noted in Fiji National Provident Fund and Tax.
Refer Table 5.11 below for details.

Table 5.11: Unresolved Carried Forward Balances Description FNPF Tax Arrears Total Brought Forward Balance (10,843) Dr 35,681 Cr 24,838 Credit for the Month (December) 15,523 295 15,818 Debit for the Month (December) (38,589) (645) (39,234) Closing Balance (December) (33,909) Dr 35,331 Cr 1,422 The closing balance indicated that the Fiji National Provident Fund was overdrawn which indicate that more payments have been made from the trust fund account then authorized.
In addition, there could be operating expenditures paid from the trust fund account, understating expenditure reflected in the Statement of Revenue and Expenditure.

The above anomaly was reported in the 2012 audit report however the Ministry fail to take appropriate action to rectify the overdrawn balance noted.

The audit further noted that the monthly trust account reconciliations were not prepared within the required timeframe.
As a result a variance of $24,047 was noted between the Department records and the general ledger record as at 31/12/2013.

Refer Table 5.13 below for details.


Table 5.13: Details of Variances Between the General Ledger and the Ministry Record Account 1-05000-00000-860000 Total Department ($) 27,058 27,058 General Ledger ($) 3,011 3,011 Variance ($) 24,047 24,047 Failure to prepare trust fund reconciliations accurately and timely will result in the misstatement of the payroll expenditure recorded in the general ledger and in the statement of revenue and expenditure.
It is apparent that the Ministry may not rectify the variances in a timely manner if it continues to delay the preparation of the reconciliations.

Recommendations  The Senior Accounts Officer should ensure that reconciliations are prepared on time and reconcile accurately to allow the rectification of the variances in a timely manner.
Ministry of i-Taukei Affairs Section 05: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Senior Accounts Officer should ensure that any overdrawn trust fund account is investigated and rectified accordingly.

Management Comment Comments are duly noted.

The Ministry has been encountering some wrong postings from Ministry of Finance, that is, Trust Accounts that do not belong to us.

An example is the Parliamentary Premium.


Some of the allocations have also been identified and forwarded to Ministry of Finance to be closed.

As for Fiji National Provident Fund (FNPF), point taken.

These debits have been identified to be wrong postings and have been rectified accordingly.

Currently, the FNPF clerk is monitoring very closely the charges passed into trust especially FNPF which should always reflect same amount sitting as credits.
5.10 Revenue Not Included in VAT Assessment Subject to the provision of the Value Added Tax (VAT) decree 1991, the tax shall be charged in accordance with the provisions of the decree at the rate of fifteen per cent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.21 VAT is payable to the Commissioner of Inland Revenue for the supply of all goods and services with the exception of zero rated and exempted supplies.
Payments effected by government departments for goods and services are thus subjected to VAT.22 Under Section 71 of VAT Decree, penalties can be imposed on incorrect lodgement of VAT.

The Ministry’s VAT expenditure totalled $92,884 against a budget of $132,800 resulting in a savings of $39,916 or 30% for the year 2013.
The audit noted that revenue was not accounted in the VAT returns lodged to Fiji Revenue and Customs Authority (FRCA) for VAT assessment neither it was recorded in the general ledger VAT account of 1-05000-00000-863200.

Failure to account for VAT on revenue implies that the VAT payable to Inland Revenue was understated.

Recommendations  The Senior Accounts Officer should ensure that Revenue is included in the VAT Return submitted to FRCA for assessment.
 The Senior Accounts Officer should ensure that monthly VAT reconciliations are properly checked before payments are made to FRCA.

Management Comment Points noted.

The Revenue of this Ministry has not been included in the Vat Assessment due to the following: The attempts to implement Account Receivable Module were unsuccessful.

We had a few meetings with the Financial Management Information System Unit, who were supposed to advise us on the possibilities.
The 21 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – Section 15 (1) 22 Finance Circular, 09/95 Ministry of i-Taukei Affairs Section 05: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ accounting for revenue was something new to the Ministry whereby staffs were needed to be trained.

As a result Revenue were not accounted for nor assessed properly in terms of Vat payment.
5.11 Unauthorized In-Service Training An Officer who is granted study leave with salary shall be required to sign an undertaking to serve the Government for such period as specified in the rules governing bonding of recipients of in-service training.23 Officers applying for sponsorship with other scholarship agencies shall liaise with their Permanent Secretaries first regarding their release on study leave with or without salary.
The In-Service Training sponsorship will not cover any research thesis other than full course work (units) programmes.

All releases on study leave with or without salary for part-time/full-time studies must be done with the prior written approval of the Public Service Commission (PSC).

Successful awardees will be bonded and official release granted by PSC prior to commencement of studies.24 A ministry official (EDP No.
91588) was offered a partial scholarship from Ministry of i-Taukei Affairs for Master Program in Pacific Studies at the University of the South Pacific for three years effective from 09/02/2013 to 08/02/2015.

The officer was granted a study leave with full pay during his studies.
The audit noted the following anomalies with regards to the release of the officer prior to his In- Service Training:    There was no evidence of the official release with full pay from the Permanent Secretary of the Ministry of i-Taukei Affairs; The officer’s salaries were not bonded for on leave study with full pay contrary to the Public Service Regulations; There was no written approval from PSC regarding the release to undertake study.
Standing public service regulations were disregarded therefore the awarding of this in-service training for a Masters Research program was unauthorized.

Recommendations  The Director Corporate Services in consultation with the Permanent Secretary should immediately instigate an investigation and implement appropriate disciplinary actions for the laxity of the responsible officer(s) involved.
 The Director Corporate Service should ensure that Public Service Commission regulations are strictly complied with in regards to study leave.

Management Comment  There was laxity on the former Manager Corporate Services in providing proper release of the officer prior to his In-Service Training.

 However, a study leave letter was issued on 16/07/2014 after the officer signed the Ministry Scholarship Bond and other study leave requirements.
23 General Order 2011 – 711 (d) 24 Public Service Commission Circular No.30/2013 & 75/2012 – Appendix II, Section 1.5, 1.8, 1.13 & 2.6 Ministry of i-Taukei Affairs Section 05: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  A guiding tool in place in the Ministry is a Training Guide which is to be strictly followed by Corporate Service Division.

Conduct refresher training for all staffs to be aware on the In-Service Training Procedure.
This was developed in June, 2014 which includes Standard Operating Procedures (SOP) and study leave check list.

This will be used as a monitoring tool therefore the said problem will not incur again.

Director Corporate Service must also ensure compliance with Public Service Commission Regulation and to work closely with the Training Unit to monitor the release of staff prior to Study Leave.
Further OAG Comments The Ministry later issued study leave letter to the officer on 16/07/2014 after one year of in-service study leave regularising the in-service training from 09/02/2013 to 08/02/2015.

The Ministry had breach the PSC regulation by offering an in-service training on a full thesis program and hence disciplinary actions should be placed on responsible officers.
5.12 Fail Internal Control for Telecommunication The Compact Array Broadband Backend (CABB) software provided the list of outgoing calls from an officer’s unique telephone code to monitor personal or extravagant telephone charges per code.

The Ministry commences using the software in 2011 to monitor and control the telephone cost which was significant in the past years.

Despite the above, the audit noted that telecommunication expense continues to increase since 2011.
The audit noted that the Ministry loss the CABB software in February 2011 which was a contributing factor to the increase in trend of telephone cost since 2011.

Refer Table 5.14 below for telecommunication expenditure incurred over the 5 year period.
Table 5.14: Telephone Expenditure over the 5 Year Period Year 2009 2010 2011 2012 2013 Amount ($) 32,367 24,547 22,307 24,455 26,743 In addition, the Ministry does not have a policy on the telephone codes issued to officers for measures and responsibility to be taken when their codes are suspected to be misused.
The above anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Ministry on 19/07/2013 however the Ministry failed to take immediate action by not strengthening controls for telephone.

Failure to effectively monitor telephone could result in misuse and wastage of tax payers’ money.
Ministry of i-Taukei Affairs Section 05: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations  The Manager Corporate Services should implement internal controls to monitor telephone calls made.

 The Manager Corporate Services should ensure that telephone policy on the usage and responsibility of unique codes is prepared.
Management Comment  Director Corporate Service will be tasked to implement internal controls and to monitor phone calls;  A way forward for the Ministry; (1) Director Corporate Service is currently compiling the Telephone Policy which is to be presented to the Senior Management Board for approval.

(2) Purchase the telephone Call accounting system (CAABS software) to strictly monitor phone calls.
(3) Have disconnected mobile calls from all extension except for Permanent Secretary of i-Taukei Affairs and Deputy Secretary of i-Taukei Affairs.

(4) Energy Efficiency Audit Committee (currently monitoring the electricity usage) to also responsible for monitoring telephone calls.

(5) Liaise with ITC Services of using voice over IP to reduce cost when calling within Government Ministries and Department.

 TAB has ceased calling mobiles and making private calls through the switchboard.
5.13 Absence of Planned Spending for Scholarship Funds The principles of responsible financial management are to ensure value for money in the use of money and resources and to report transparently.25 The Ministry is to administer scholarship awards for i-Taukei and Rotuman students, with the objective to promote and develop excellence in academic performance of i-Taukei students thus facilitating academic development that will hasten an “enlightened vanua for a progressive Fiji”.26 A total of $9.7 million was allocated for the provision of scholarships for the year.
The i-Taukei Education Committee (TEC) is responsible for administering the Scholarships scheme, in particular the awarding of Scholarships.

The Committee is appointed by the Minister of i-Taukei Affairs and consists of the Chairman who is the Permanent Secretary for the Ministry and four other members.
The Committee conducts interviews for potential candidates and selects candidates to be awarded scholarships.27 The audit noted that only $7.2 million or 74% of the scholarships funds were utilized from the total of $9.7 million allocated for the year.

Refer Table 5.15 below for scholarship expenditure incurred over the 5 year period.
Table 5.15: Details of Scholarship Funds over the 5 Year Period Year Budgeted Expenditure ($) Actual Expenditure ($) 2009 2010 2011 9,691,602 10,899,601 10,000,000 9,691,339 10,897,391 9,984,236 Budget Savings 263 2,210 15,764 25 Financial Management Act 2004, Section 5 26 2013 Budget Estimates, Ministry of i-Taukei Affairs, Roles and Responsibilities, Page 43 27 Policies & Management Guidelines of the Ministry of i-Taukei Affairs Scholarships Schemes – Section 2.1 & 2.2 Ministry of i-Taukei Affairs Section 05: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Year Budgeted Expenditure ($) Actual Expenditure ($) Budget Savings 2012 2013 Total 10,000,000 9,677,775 50,268,978 8,742,469 7,188,443 46,503,878 1,257,531 2,489,332 3,765,100 In addition, the $9.7 million allocated did not have a plan for the number students that will be assisted in various categories – number of existing students, new students, and the number of various levels of diplomas and degrees that will be supported locally and overseas.
Furthermore, the Ministry did not carry out awareness of the scholarships that are available and therefore, is one of the contributing factors for the unspent budget.

In the absence of proper planning, the students to be assisted are open and subject to the discretion of i-Taukei Education Committee.

As such the students selected for scholarships cannot be deduced to be fair and without favouritism.
Unutilized scholarship funds denies students a chance of higher education and thus has undermine its objective to facilitate academic development that will hasten an enlightened state for a progressive Fiji.

Recommendations  The Manager Scholarships should ensure that annual plans are prepared for the categories in which the scholarships that will be provided so that scholarship funds are fully utilized.
 The Manager Scholarship should ensure that more public awareness programmes are undertaken for the availability of the scholarships for i-Taukei and the Rotumans.

Management Comment  Manager Scholarships to review Awards Management Systems for effective bond recovery and more public awareness on availability of scholarships.

Annual categories of awards plan was developed and followed.
 Awareness was conducted in all parts of Fiji including interiors of Viti Levu and Vanua Levu, outer Islands and Rotuma.

The responsibility is on the teachers and students to meet the passing marks.

The Government at the beginning of this year 2014 has instructed that the administration of scholarship to be transferred to the Tertiary Scholarship and Loans Board.
5.14 Failure to Instigate the Recovery of Bond A bond is a legal undertaking between the student and the Ministry of i-Taukei Affairs specifying the course, time and cost to undertake the programme.

It requires the students to sign an undertaking to complete the course within the prescribed period, and to be employed in Fiji at the end of studies.
Failure to fulfil the obligations specified in the bond will make the student liable for penalties imposed under the bond.28 28 Policies and Management Guidelines of the Ministry of Fijian Affairs Scholarship Scheme 2006 – Part 6.15.1 Ministry of i-Taukei Affairs Section 05: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Awards Management System is the scholarship system that records various details of sponsored students.
The audit noted that a total of $4.56 million is owed by sponsored students who have absconded their bonds.

Refer Table 5.16 below for details.
Table 5.16: Summary of Bonds to Be Recovered by Country Country Year Fiji New Zealand Australia Great Britain Totals Number of Applicants Bond Amount (F$) Total Recovered (F$) Bond Amount Owed (F$) 2012 9 16 13 1 39 2013 29 21 15 1 66 2012 322,982 2,320,987 1,820,781 200,003 4,664,753 2013 509,362 2,502,369 1,842,736 223,003 5,077,470 2012 54,070 54,976 53,650 --- 162,696 2013 246,924 150,804 89,206 23,000 509,934 2012 268,912 2,266,011 1,767,131 200,003 4,502,057 2013 262,438 2,351,565 1,753,530 200,003 4,567,536 The followings anomalies were noted:  The total amount owed in recovery of bonds increased by $65,479 or 1% from 2012 to 2013;  The bond recovered for the year 2013 was $509,934 or 10% of the total outstanding;  The scholarship award management system failed to provide record of students who have absconded their bond; and The report to instigate the recovery of bond is generated manually.
 In the absence of strengthened controls, the total recovery to be made is yet to be ascertained and could result being abandoned with the lapse in time.

Also, the investment made in students to enhance the nation’s human resource is lost.

Recommendations  The Manager Scholarship and Information Technology should review the Awards Management System to extract reports on students that have absconded their bonds.
 The Manager Scholarship should benchmark scholarship operations with other scholarship providers such as the Public Service Commission to effectively manage its scholarships.

Management Comment Review Awards Management Systems for effective bond recover and Benchmark operations with other scholarship providers for effective management of scholarships.

Please note that the Bond recovery was strengthened in late 2011 and operational in 2012.
This is approval by respective agencies on the following: after i) ii) iii) Solicitors General’s office on the Bond Recovery Agreement; Bank Account and deduction code by the Ministry of Finance; and Watch list by the Dept.

of Immigration.

Also on the same note we have been working closely with PSC and other Institutions on the effective management of scholarship.
However, these Scholarship operations came to an end from the beginning of this year, 2014 after the full administration of scholarship has been transferred to the Tertiary Scholarship and Loans Board.
Ministry of i-Taukei Affairs Section 05: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 5.15 Failure to Submit Progress Report on Key Result Areas Within the end of each quarter, i-Taukei Affairs Board will provide a comprehensive report to the Minister of i-Taukei Affairs of the operation of the i-Taukei Affairs Board and the i-Taukei institutions of that quarter.
Each report must detail the progress report on the programmes undertaken for each of the key results areas.29 Similarly, the Centre for Appropriate Technology and Development (CATD) will provide the progress report of the grant utilized.30 A grant agreement must provide for the organization or person receiving the grant to agree to keep proper files and accounting records in relation to the grant and to make these files and records available upon request by the administering agency or the Auditor-General.31 The Ministry paid a total of $4.75 million of grants to i-Taukei Affairs Board and CATD.
Refer Table 5.17 below for details.
Table 5.17: Details of CATD & i-Taukei Affairs Board Grant Disbursement Grant Recipient Amount ($) CATD (Nadave) i-Taukei Affairs Board Provincial Council Na Mata Turaga-ni-Koro Allowance Mata ni Tikina Allowance i-Taukei Affairs Board Total Actual Vote 627,500 2,000,000 1,000,000 50,000 722,300 350,000 Sub Total 627,500 4,122,300 4,749,800 The audit was not provided with progress reports of the fund utilized on the programmes undertaken for each of the key results areas.
The above anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Ministry on 19/07/2013 however the Ministry failed to take immediate action by not strengthening controls for disbursing grants to i-Taukei Affairs Board and CATD.

The above denotes that controls relating to disbursement of grants is lacking exacerbated by the lack of follow up for progress reports prior to the release of the quarterly grant.
As a result, the audit could not determine whether both organisations have achieved the required key result.

Failure to implement controls indicates a passive role of the Ministry to monitor and account for the yearly budget appropriated and the required services to be delivered.
Recommendation As an administering agency, the Director Administration and Finance should ensure that Statement of acquittals and progress reports are received and reviewed prior to the release of the quarterly grant to the respective organization.
Management Comment Comments noted 29 Grant Agreement between the Fiji Government & the i-Taukei Affairs Board – 6.1(a) 30 Grant Agreement between Government and CATD, paragraph 6 31 Finance Instruction 2010 – 16 (3) Ministry of i-Taukei Affairs Section 05: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Statement of acquittals and progress report has been complied with by i-taukei Affairs Board (TAB).
All quarterly Requests to Incur Expenditure (RIE) Forms are prepared and submitted by TAB to MTA account departments with acquittals and progress reports.

A copy of acquittals is filled with TAB Registry.

Perhaps the external auditors were not provided with the acquittals and progress reports by MTA at the time of audit.
Further OAG Comments The Ministry did not provide progress reports of the fund utilized on the programmes undertaken for each of the key results areas upon further audit inquiries on 26/09/2014.

5.16 Significant Unutilized Grant in Provincial Council Administering agencies must review each grant scheme each year to determine whether it is achieving its specified outcomes as efficiently and effectively as possible and, where it is not, must take action necessary to improve its efficiency and effectiveness.
The administering agency must ensure that each grant has been used only for the purpose for which it was provided.32 The audit noted significant unutilized grant of $167,799 or 17% of the total grant disburse for Provincial Council operation.

The i-Taukei Affairs Board reveal that vacant post were not filled since the beginning of the year which have contributed to the savings.

Refer Table 5.18 below for details.
Table 5.18: Details of Unutilized Grant in Provincial Council Acquittals 1st Quarter Acquittals 2nd Quarter Acquittals 3rd Quarter Acquittals 4th Quarter Acquittals Total Grant ($) 250,000 250,000 250,000 250,000 1,000,000 PC Staff Salary ($) 143,306 169,414 142,029 170,988 625,737 PC Operating Expenses ($) 51,336 49,767 57,052 48,309 206,464 Unutilized Grant ($) 55,358 30,819 50,919 30,703 167,799 Unutilized grant funds depicts improper management and administrations of funds by the board exacerbated by the lack of follow up by the Ministry to ensure that the councils have the full capacity to achieve all the outcomes and deliver the required services to the provinces.
Furthermore, significant unutilized grant increases the risk of misuse and fraud and wastage of taxpayers’ funds.

Recommendation As an administering agency, the Ministry should ensure that the i-Taukei Affairs Board fill all vacant post in all respective Provincial Councils.

Management Comment The i-Taukei Affairs Board (TAB) grant of $2.0M is allocated for TAB staff and Provincial Council (PC) staff (Roko Tui, Senior Assistant Roko Tui, Assistant Roko Tui and Provincial Treasurer).
This allocation is not enough to meet the personal emoluments of TAB and PCs officers.

Because of this, vacant post in TAB and PCs were not advertised for recruitment.

We have advertised vacant PC posts in 2014.

Positions been filled.

As for the 2013 savings from these vacant posts, funds were redirected to fund the 2013 TAB budget deficit particularly on the Personnel Emoluments.
32 Finance Instruction 2010 – Part 3, Division 4 – Section 16 (6 & 9) Ministry of i-Taukei Affairs Section 05: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 6 Ministry of Defence, National Security & Immigration Roles and Responsibilities The Ministry manages the nation’s security (a prerequisite to stability and peace) and delivers this through the formulation and implementation of legislation, policy initiatives, programmes and projects on matters of national security and public order, man-made national crises and emergencies, defence, aerial surveillance, search and rescue operations, national day and other celebrations.
The Ministry is also responsible for immigration matters that include citizenship, detention and deportation, passports, visa, permits, border control, combat trafficking in person, refugee status determination and migration.

It also provides a coordinating role through the Defence and Security Forces Liaison Unit on policy matters for the two disciplined services in the Fiji police Force and Republic of Fiji Military Forces.
Table of Contents 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 PART A: FINANCIAL STATEMENTS ................................................................................................................................ 1 Audit Opinion ....................................................................................................................................................... 1 Statement of Receipts and Expenditure .............................................................................................................. 2 Appropriation Statement ..................................................................................................................................... 3 Trust Fund Account Statement of Receipts & Payments .................................................................................... 3 PART B: AUDIT FINDINGS ............................................................................................................................................... 4 DEPARTMENT OF IMMIGRATION ........................................................................................................................................... 4 Expenditure Ledger Not Maintained .................................................................................................................... 4 Main Trust Account ............................................................................................................................................. 4 Payroll Overpayment and Excess Staffing Contrary to Approved Establishments ............................................. 5 Damage/Loss of Passport, Visas and Permit Due to Poor Administration of Records ....................................... 9 Anomalies Noted for Data Recorded in the Permit Database System .............................................................. 13 Decline in Child Protection Programme Funding Due to Non Utilisation of Funds ........................................... 15 Non-Submission of Overseas Training Reports ................................................................................................ 16 Unserviceable Vehicles ..................................................................................................................................... 17 DEPARTMENT OF DEFENCE ................................................................................................................................................. 18 Expenditure Ledger Not Maintained .................................................................................................................. 18 Lack of Acquittal, Supporting Documents and Payments Control ..................................................................... 18 Discrepancies in Meal Allowance Payments ..................................................................................................... 21 APPENDICES ........................................................................................................................................................................... 25 Appendix 6.1: System Data Without Issue Dates Of Applications ................................................................................... 25 Appendix 6.2: System Data Without Expiry Dates Of Applications .................................................................................. 27 Appendix 6.3: System Data Without Known Local Addresses Whilst On Visit ................................................................. 29 Appendix 6.4: Ambiguous System Data For Local Addresses ......................................................................................... 39 6.13 6.14 6.15 PART A: FINANCIAL STATEMENTS 6.1 Audit Opinion The audit of the financial statements of the Ministry of Defence, National Security & Immigration resulted in the issue of a qualified audit report for the year ended 31 December, 2013.
The issues qualified are as follow: Ministry of Defence, National Security & Immigration Section 06: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Variances of $181,505 and $149, 299 exist for the Cash Receipts and Cash Payments respectively between the Department of Immigration Trust Fund Account Cash Book and the Financial Management Information System (FMIS) general ledger balances.
As a result the audit was not able to ascertain that all receipts and payments had been accurately accounted for and disclosed in the Main Trust Fund Account.

 There is an un-reconciled difference amounting to $1,794,695 between the FMIS general ledger Cash at Bank and Bank Statement balance.

As a result the audit was not able to ascertain the accuracy and completeness of the Immigration Trust Fund Cash at Bank Account as at 31 December 2013.
Management attention was also drawn to the following matter:  The Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

The Ministry prepared its financial statements from the FMIS general ledger.
As a result the audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure 6.2 Statement of Receipts and Expenditure The Ministry collected revenue amounting to $9,718,596 and incurred expenditure totalling $5,971,936 in 2013.

Refer Table 6.1 below for details.
Table 6.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Agency Revenue TOTAL REVENUE EXPENDITURE Operating Established Staff Government Wage Earners Travel and Communications Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) Total revenue increased by $408,011 or 4% in 2013 compared to 2012.
The increase is attributed to the increase in demand for Fiji passports.

Total expenditure increased by $621,863 or 12% in 2013 compared to 2012.

This was due to the completion of the national war memorial museum and the implementation of the Integrated Boarder Management System.
Ministry of Defence, National Security & Immigration Section 06: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 6.3 Appropriation Statement The Ministry incurred expenditure totalling $5,971,936 against the revised budget of $6,019,770 resulting in a savings of $47,834 or 0.8%.

Details of expenditure against the budget estimate are provided in Table 6.2.
Table 6.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Costs Capital Expenditure Construction Purchase Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 3,056,348 200,853 171,300 398,837 753,762 29,200 300,000 4,910,300 200,000 554,270 754,270 355,200 6,019,770 Changes ($) (350,769) 60,760 73,626 72,759 (27,499) (3,530) 23,189 (151,464) --- 151,464 151,464 --- --- Revised Estimate ($) 2,705,579 261,613 244,926 471,596 726,263 25,670 323,189 4,758,836 200,000 705,734 905,734 355,200 6,019,770 Actual Expenditure ($) Lapsed Appropriation ($) 2,704,768 258,919 243,705 464,224 712,245 25,555 307,654 4,717,070 199,685 705,397 905,082 349,784 5,971,936 811 2,694 1,221 7,373 14,018 115 15,534 41,766 315 337 652 5,416 47,834 6.4 Trust Fund Account Statement of Receipts & Payments The Immigration Trust Fund Account records immigration bond received from permit holders.
Refer Table 6.3 for receipts and payments for the year ended 31/12/13.
Table 6.3: Trust Account Statement of Receipts & Payments for 2013 Description RECEIPTS Immigration Bond Received TOTAL Receipts PAYMENTS Immigration Bond Payment Description TOTAL PAYMENTS Net Surplus Opening Balance as at 1 January Closing Balance as at 31 December 2013 ($) 2012 ($) 4,877,245 4,877,245 3,670,459 3,670,459 2,204,760 2013 2,204,760 2,672,485 7,993,102 10,665,587 1,723,869 2012 1,723,869 1,946,590 6,046,512 7,993,102 Net surplus increased by $725,895 or 37% in 2013 compared to 2012 as a result of increase in bond receipts during the year.
Ministry of Defence, National Security & Immigration Section 06: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ PART B: AUDIT FINDINGS DEPARTMENT OF IMMIGRATION 6.5 Expenditure Ledger Not Maintained A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.1 Any transaction processed affecting these accounts shall be entered in the appropriate ledger.2 The audit noted that the Department does not maintain an expenditure ledger.
As a result, the Department could not reconcile its records with the expenditure recorded in the general ledger system3 maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the expenditure amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Department should maintain an expenditure ledger and reconcile its expenditure ledger with FMIS on a monthly basis.

Management Comment Comments are noted.


The department will ensure that it maintains an expenditure ledger and that it reconcile with General Ledger (FMIS) on a monthly basis.

6.6 Main Trust Account Each month, the trust account must be balanced and reconciled with the trust bank account.

The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.
Un-reconciled items must be investigated and resolved promptly.4 The audit noted that the Department failed to prepare monthly bank reconciliations for the Immigration Trust Fund Account – Bond.

As a result there was an un-reconciled variance of $1,794,695 between the cash at bank general ledger and bank statement balance.
In addition, the audit noted variances between the following records:  Departments cash book and the FMIS general ledger records;  Opening balance as per draft submitted Statement of Receipts and Payments and the audited FMIS general ledger.

Refer to Table 6.4 below for details.


Table 6.4: Variance in Trust Fund Account Balances Description Departments Cash Book balances Total Receipts ($) 4,695,740 Total Payments ($) 2,055,461 1 Immigration Department Finance Manual (2012) – Section 16.3.1 2 Immigration Department Finance Manual (2012) – Section 16.3.2 3 Financial Management Information System controlled by Ministry of Finance.
4 Finance Instruction (2010) – Section 58 (3) Ministry of Defence, National Security & Immigration Section 06: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description FMIS General Ledger balances Variance Total Receipts ($) 4,877,245 (181,505) Total Payments ($) 2,204,760 (149,299) Table 6.5: Variance in Trust Fund Account Opening Balance Description Draft Agency Statement of Receipts & Payments FMIS Audited General Ledger Variance Opening Balance ($) 9,060,923 7,993,102 1,067,821 The above findings indicate the laxity of the Accounting Head in ensuring that the trust receipts and payments recorded in the Department’s books reconcile with that recorded in the FMIS general ledger system and the bank records.
As such, audit was not able to ascertain that all receipts and payments have been accurately accounted and disclosed in the Main Trust Fund Accounts.

Recommendations  The Accounting Head should reconcile the trust receipts and payments recorded in the Department’s books with trust money recorded in the FMIS general ledger and the bank records.

 The Accounting Head should investigate and rectify the variances noted.
Management Comment The department have just completed updating the reconciliation from 2009 to 2012, and have just started with 2013.

However, your comments are noted.

The department will ensure that Trust Fund Account Bank Reconciliation is reconciled with General Ledger on a monthly basis.
6.7 Payroll Overpayment and Excess Staffing Contrary to Approved Establishments Each year the Appropriation Act and the Budget estimates set out details of the appropriations that Cabinet approves for spending by each agency.
No officer may incur expenditure which results in the agency’s appropriation being exceeded without the proper authorisation of the Ministry of Finance.5 Permanent Secretaries and Heads of Departments are to work within the number of Established and Government Wage Earner posts approved by the Commission that is recorded in the Staff Establishment Register.6 To ensure that only approved Government Wage Earner (GWE) staffs are paid from SEG 2 payroll.7 Salary advices must be submitted promptly to the Ministry of Finance where there is any change to personnel emoluments or deductions such as appointments, promotions, transfers, acting allowances, dismissals and resignations, income tax allowances, housing deductions, or other authorized charges or 5Finance Instructions (2010) – Section 7 6Public Service Commission Circular No.
78/2012 – Procedure 6.1 7Public Service Commission Circular No.

78/2012 – Procedure 6.5 Ministry of Defence, National Security & Immigration Section 06: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ deductions.8Overtime shall be approved only in essential circumstances and on specific approval by the Permanent Secretary and if is provided for in their Budgetary allocation.
Delegates shall ensure proper planning of work to avoid unnecessary overtime.9 The Minister of Finance announced that a Fringe Benefits Tax (FBT) is to come into effect on 1st January 201210.

The FBT is imposed on employers who has fringe benefits taxable amount by Section 5 of the Fringe Benefits Tax Decree 201211 for each quarter.

The audit noted the following anomalies for payroll;  The Department made an overpayment totaling $18,86812 of FBT to FRCA in 2012.
Despite the above overpayment, the Department continues to make payments to FRCA in 2013 totaling $4,45813;  The Department have a total of seven (7) GWE as per approve staff establishment.

The audit noted that the Department paid more than seven (7) GWE for the year, hence the payment of additional officers above the approved establishment of seven (7) are unauthorised.

Refer Figure 6.1 for detail examples of excess GWE paid for some of the pays.
Figure 6.1: Department of Immigration – Government Wage Earners  In addition, the department made a departmental virement14 of $15,000 from Capital Purchase to Wages for the year.

The audit noted that the transfer of funds was not approved by the Permanent Secretary of Finance and the transfer of funds has concealed the over-expenditure in SEG 2.
It is apparent that the Government Wage Earners (GWE) expenditure allocation would exceed the approved appropriations by 17% or $13,125 without the unauthorised transfer of funds.

Refer Table 6.6 and Figure 6.2 for detail of budget and actual expenditure for Government Wage Earners (GWE) with the unauthorised virement accounted in the revised budget concealing the over-expenditure.
8Finance Instructions (2010) – Section (17) (1) 9Public Service Commission Circular 70/2012 & Appendix 1 10The 2012 Budget Address 11Decree No.7 of 2012 dated 10 January 2012.

12Cheque No.

012059 13Cheque No.
13089 14Virement reference number - DV 660 – Transfers of funds from (1-06201-70999-090151, New Office Equipment) to (1-06201- 70999-020101, Wages) Ministry of Defence, National Security & Immigration Section 06: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 6.6 and Figure 6.2: Details of Budget and Actual Expenditure for GWE Year Revised Budget ($) 70,600 100,482 70,503 71,207 91,702 2009 2010 2011 2012 2013 Actual Spending ($) 56,202 92,038 92,046 65,506 89,827 Variance ($) 14,398 8,444 (21,543) 5,701 1,875  Some officers were substantively paid higher than their normal annual salaries and wages for the year.
The audit could not substantiate the significant increase in salaries and wages as approvals for overtime were not produced to audit.

Refer Table 6.7 below for details.
Table 6.7: Significant Overtime Paid During the Year EDP Number Normal Salary ($) Amount of Extra Hours paid ($) Amount of Meals paid ($) MY685 90031 JA114 90259 91774 64686 91223 91222 92598 92599 Total Total/Year Percentage Increase (%) ($) 23,445 20,215 29,629 21,370 20,560 20,986 18,486 24,443 20,033 18,472 142 178 205 108 108 96 80 137 95 72  The salary and wages reconciliations prepared were not dated hence the audit could not ascertain the timeliness of the preparation of the reconciliation which could detect and rectify the above overpayment and irregularities in a timely manner.
 Moreover, there were fifteen (15) vacancies from the total of 82 approved established posts hence the department’s human resource unit is hindered from delivering the required services and outputs to the public which has resulted in the substantial overtime noted above.

Refer Table 6.8 and Figure 6.3 below for details of the department’s salaries and wages expenditure for the past five year period.
Ministry of Defence, National Security & Immigration Section 06: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 6.8 and Figure 6.3: Salaries and Wages over Five (5) year Period Year 2009 2010 2011 2012 2013 Salaries Amount ($) 1,444,703 1,399,242 1,658,474 1,882,113 1,853,428 Wages Amount ($) 56,202 92,038 92,046 65,506 89,827 Total ($) 1,500,905 1,491,280 1,750,519 1,947,619 1,943,254 The anomalies highlighted indicate the laxity of the supervising officer in ensuring that adequate supervisory checks on payroll are made.
Excessive overtime hours may indicate poor human resource management and inadequate capacity of the Department in carrying out its operations with the current resources available.

Supervisors may also lack the drive in ensuring that the work targets are met by individual officers in accordance with the Individual Work Plans, Business Plans and Department’s Corporate Plans.
Unauthorised virement and payment of excess GWE contrary to the approved establishments post is a breach of Government Policy and Finance Instructions.

Overpayment in salary is unauthorised and failure to strengthen proper controls for salary payments increases the risk of fraudulent or unauthorized payments, inaccurate payroll reports and invalid pay rates.

This could be catalyst to abuse, misappropriation and could result in wastage of taxpayer’s funds.
Recommendations  The Department should ensure that salaries and wages reconciliation are prepared and checked properly in a timely manner.

 The Department should ensure that work targets are met by individual officers within the required time to minimize excessive overtime cost incurred.

 The Director Immigration should ensure that staff capacity and capability is assessed to ensure effective and efficient delivery of operation with the current resource available.
 The Department should liaise with FRCA to utilise the overpaid amount for other tax payables.

 The prior approval of the Director of Immigrations must be obtained for working overtime.

 The internal control procedures in the Accounts Section, specifically supervisory checks should be strengthened.

Management Comment  Recommendation is noted, Salaries and wages reconciliation are prepared and submitted on a timely manner, to avoid overpayment.
Ministry of Defence, National Security & Immigration Section 06: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Recommendation is noted.

With the demand from our clients/stakeholders/customers building up on a daily basis and the fact that the Department is required to mann our borders 24/7 and this will require officers to be rostered after hours and during weekends.
Drivers are also required to transport these officers when the need arises during these odd hours thus the accumulation of overtime hours.

It must be noted that names mentioned in table 6.9 are drivers.

 Recommendation is noted, the Department has put in place procedures and processes to ensure that work targets are met on a timely basis.

However it must be noted that vacancies still exist whereby vacant posts needed to be filled to ensure that all tasks assigned to the department is accounted for.
The Department has been allocated with additional 34 posts in the 2014 budget and this should address some of the HR concerns.

 Recommendation on FBT is noted.

Given that the staffs are now fully aware of the procedures and control measures have been put in place, no further payments will be made until full overpayment amount is expended.

 Overtime work at our borders is conducted on a routine basis, which does not require prior approval from the Director of Immigration.
6.8 Damage/Loss of Passport, Visas and Permit Due to Poor Administration of Records All Heads of Government bodies, Permanent Secretaries and Heads of Departments are responsible for endorsing the National Record Management Policy and integrating the guiding principles of the said policy within their recordkeeping systems.15 The need to improve record management in all agencies is vital for promoting Good Governance, Transparency and Accountability in the Public Sector.16 Every employer shall ensure the health and safety at work of all his or her workers.17 Each agency must have in place a cost effective system of internal control which safeguards money and property against loss.18 Passport is a current valid travel document which is issued by or on behalf of the Government of any country, containing a photograph and a personal description of the holder which purport to establish the identity and nationality or citizenship of the holder, or which gives a right of re-entry to that country.19 The Passport officer shall, upon application made to him in the appropriate form, issue to any citizen of Fiji who satisfies such conditions as may be prescribed, a passport in the appropriate form.20 Officers responsible for managing assets, revenue collection or cash shall prepare a loss report whenever a loss is incurred.
The loss report shall outline the nature of the loss, circumstances leading to it and recovery measures taken.
A copy of the loss report must be submitted to the Senior Accounts Officer who shall record details of each loss in the Losses Register.21 A surcharge must be imposed on an officer who is directly or indirectly responsible for the destruction, damage, theft or other loss of property.22 The audit noted the following anomalies in the administration of passports, visas and permits; 15 Public Service Commission Circular No.
10/2011 16 Finance Instructions (2010) – Section 59 17 OHS Act (1996) – Part II – Section 9 (1) 18 Finance Instruction (2010) – Section 59 (1) (a) 19 Passports Act [cap 89] Section 2 20 Passports Act [cap 89] Section 3 (1) 21 Department of Immigration Finance Manual (2012) – Section 14.1.1, 14.1.2 and 14.1.5 22 Finance Instructions (2010) - Section 63 (1) (b) Ministry of Defence, National Security & Immigration Section 06: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The damaged passport books for 2013 totalled 228 costing $17,328 and the audit noted that the number have decreased in year 2013 compared to 2012.
Refer Table 6.9 below for number of damaged passport books over the 8 year period: Table 6.9 and Figure 6.4: Damaged Passport Books From 2006 – 2013 Year 2006 2007 2008 2009 2010 2011 2012 2013 Total No.
of Damaged Passport Books 888 308 470 79 91 104 865 228 3,033 Amount ($) 65,712 22,792 34,780 5,846 6,734 7,904 65,740 17,328 226,836 Per cent (%)Change --- -65% 53% -83% 15% 14% 732% -74%  More than 50% of the errors resulted from machine errors such as printing problems, improper lamination, overheating and inking problems while some were human errors arising from judgemental errors, typing errors, incorrectly placing the passport books in the machine.

Refer Figure 6.5below for detail.


Figure 6.5: Damages Passports for 2013  With the continued increase in passport processing including applications from abroad, postal services and travel agents, the audit noted that the department insufficiently has only one computer set and passport printer in its custody to handle the increased work load.

 The passport applications received to be batched for filing were unsatisfactorily safeguarded and were placed on the floor.
 In addition, passport number 929648 was missing from the office and another replacement passport number of 935711 had to be re-issued as a result of negligence.
Ministry of Defence, National Security & Immigration Section 06: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  A loss report was not prepared for damaged books contrary to section 14 of the Finance Manual to instigate recovery of losses in accordance with section 63 (1) (b) of the Finance Instructions.

 Moreover all damaged books were stored in the strong room with those from the previous years.
 Furthermore, a manual visa register was not updated and there was unsatisfactory maintenance and safekeeping of visa files.

Refer Figure 6.6 below for details.

Figure 6.6: Unsatisfactory Maintenance of Visa files Visa files as part of the department records were sub-standardly maintained and stored, as files were scattered and left exposed on the shelves.

These are important government records and source of evidence for official transactions.
 In addition the visa and permit files were not produced for audit verifications upon audit request.

As such, the audit could not determine whether the permits were processed and approved in accordance with the “policies and management guidelines on permits and processing and issuance of non- citizen permits, visas and exemptions”.

Refer Table 6.10 below for details of files requested which were not produced to audit.
Table 6.10: Record Keeping Anomalies File Reference/ Passport # File Name Permit/ Visa Audit Remarks 307587338 Po Han Fang Residence Permit Not produced for audit verifications Ministry of Defence, National Security & Immigration Section 06: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ File Reference/ Passport # File Name Permit/ Visa Audit Remarks 302814 T268225 PWSM1369775/ L4125603 PWSS1302790/ G21588181 PWSM1389741/ G49824564 PWSM1354396/CGXPK4ZLN Betina Renner Milaneta Monterey Malifa Mikaele Lemi Ah Kuoi Asif Ismail Fuli Cao Tian Ke Not produced for audit verifications Not produced for audit verifications Not located as per records Student Permit Student Permit Permit Short term work permit Not produced for audit verifications Short term work permit Not produced for audit verifications Short term work permit Not produced for audit verifications  The audit also noted security failure on the first and second floor rear office entrances of the building.
People of different nationalities gain allowable entries easily into the office facilities and at times pass through the conference room and account section where cabinets, files are located along the walkway.

Hence there is a high risk of loss of data pertaining to the Integrated Boarder Management System (IBMS) servers in Suva.

The matter has been an on- going practice and state resources are prone to theft and misuse particularly the safety of data recorded in the IBMS.
The above shows the laxity on the part of the management in implementing proactive precautionary measures to prevent the potential and possible threats and incidents that are likely to occur in the Department operation centre.

Failure to produce records for audit inspection is a breach of constitutions hence it increases the risk of corrupt practises, breach of permit conditions and fraudulent collusion between employees and the applicants of permits and passports.
Recommendations  The Department should acquire another passport printer and computer set and ensures proper storing facilities for passport applications.

 The Manager should ensure efficiency of passport processing, reducing the damages made to passport processing to avoid wastage of taxpayers’ funds used on passport processing.

 The loss report should be prepared in accordance with the Finance Manual 2011 for all losses of passports.
 Disciplinary action should be instituted against officers for negligently damaging passports books and failure to keep confidential information properly and safely.

 The Manager Permits should improve on record keeping and avail all records when requested for audit.

 The Department must ensure the “National Policy for Records Managements” is complied with at all times.
 The Director Immigration should strengthened security control access into the Department’s operation centre such as Accounts and Administration section and ensure the safety of state resources.

Management Comment  Recommendation is noted.

A new passport computer and printer has been purchased and installed and applications for passport that are more than 10 years old will be destroyed to make space for proper storage of current passport applications.

 Recommendation is noted.


In an effort to try and reduce processing errors passport typists are now rotated on a quarterly basis.

Other staffs in the passport section are constantly reminded to ensure efficient passport processing.

Ministry of Defence, National Security & Immigration Section 06: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Recommendation is noted.
Efforts will be put in place to ensure that Loss report is prepared and policies are adhered to.

 Recommendation is noted.

There was an investigation done in 2013 on the damaged passports and a report submitted highlighting the way forward.

Apart from the above, warning letters are issued to officers who have committed these errors and recovery procedures are implemented.

 Recommendation is noted.


The Department is now opening company files to allow for proper filing and safe keeping of all permit records.

Old visa records will need to be destroyed to allow for proper safe keeping of current records.

 Recommendation is noted.

The Department will ensure to adhere to the National Policy.

 Recommendation is noted.


Policies are in place to ensure that access into the main office requires all staff to use electronic cards/keys and staff will be reminded to ensure that all doors are locked at all times.

Visitors to the office are normally escorted to the respective sections.
6.9 Anomalies Noted for Data Recorded in the Permit Database System The Policies and Management Guidelines on Processing and Issuance of non-citizen permits, visas and exemptions should assist in the conduct of the processing officer’s role in a fair and transparent manner.23 A total of 7,971 new permits were issued in 2013 compared to 10,362 in 2012, where majority of the permits were student permits, exemptions and work permits.

This was a reduction of 2,391 or 23%.


The audit assessments of the work permit records have identified the following inconsistencies;  The system data for permit holders of foreigners does not have the issued and expiry dates of applications.

Refer to Appendix 6.1 and 6.2 for details;   In addition, the system data for permit holders of foreigners does not have the residential addresses in Fiji, hence monitoring of these 828 foreigners within Fiji will prove futile.
Refer to Appendix 6.3 for details; Instances were noted where permit system data recorded the name of other countries as the local addresses of permit holders for foreigners in Fiji.

Refer to Appendix 6.4 for details;  Moreover, the audit noted variances for the data reported24 and the data recorded in the system.

Refer Table 6.11 below for details.
Table 6.11 and Figure 6.7: Differences in Department’s System and Reported Data Permit Type System data Reported data20 Work Permit Student Permits Residence Permits Exemption Short - Term Permits Extension of Visitors Permit 1,820 3,455 1,307 2,190 203 2,000 1,745 3,036 1,726 2,412 608 4,328 Unreconciled Differences -75 -419 419 222 405 2,328 23 Policies & Management guidelines on Processing and Issuance of Non- Citizen permits, visas & exemptions – Preface 24 Department of Immigration Annual Report for 2013 Ministry of Defence, National Security & Immigration Section 06: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit Type System data Reported data20 Investor Permits Research Total 262 0 11,237 303 9 14,167 Unreconciled Differences 41 9 2,930 The variances above highlight the inconsistency and probable unreliability of the system generated data.
Thus integrity and authenticity of reports generated by the current system appears dubious.

The Department may face difficulty in monitoring foreigners within Fiji as it will prove futile due to the unavailability of information and unreliability of data recorded in the database.

The above anomalies pose more challenges than solutions for the border control and security operations.
Recommendations  The Department should update the data recorded in the system to ensure that the database is reliable which will deliver quality, efficient and informed decisions.

 The Department should ensure proper data management including appropriate inputs into the system.

 Disciplinary actions should be instituted against officers for processing permits contrary to the policies and management guidelines for processing and issuance of non-citizen permits, visa and exemptions.
Management Comment  Recommendation is noted.

The Department will address the un-reconciled differences highlighted in table 6.13.

 Recommendation is noted.

The Department will ensure that all data is entered into the system.

 Recommendation is noted.

All permit processing officers are aware of policies and guidelines in place for the processing of permits and the consequences they could face should they breach any policy or guideline.
Ministry of Defence, National Security & Immigration Section 06: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 6.10 Decline in Child Protection Programme Funding Due to Non Utilisation of Funds In 2011, a whole of government approach was established known as the “National Plan of Action to Eradicate Trafficking in Persons (TIPs) and Child Trafficking in Fiji”.

This was speaerheded and co- ordinated by the the Department of Immigration.
Other stakeholders involved were – other Govt.

agencies (known as GWEN – Inter-Agency Working Group on People Trafficking), NGOs, NPOs and Indvidiuals.

The formulation of the action plan was to eradicate TIP, prosecute offenders and provides protection and assistance to victims of trafficking.
This also includes efforts or proactive awareness programs.25 The department was provided a budget for $10,000 for the Child Protection Program which was received from United Nation International Children Emergency Fund (UNICEF).26 The audit noted that the Department did not utilize the funds provided by UNICEF to formulate an action plan to eradicate trafficking in person.

As a result the funds received from UNICEF decline over the years due to the non- utilization of funds.
Refer Table 6.12 and Figure 6.8 below for details of funding and expenditure incurred for the past two years.

Table 6.12 and Figure 6.8: Program Funding and Department spending Year 2012 2013 Budget ($) 23,650 10,000 Actual ($) 0 0 The audit further established that funding declined to $5,000 in 2014.
The above denotes the Department failure to prepare an action plan to eradicate trafficking in person for Child Trafficking in Fiji and also indicate its laxity in ensuring that Child Trafficking in Fiji is prevented and reduced.

Failure to prepare an action plan will result in withdrawal of funding by the UNICEF and increase the risk of child trafficking in Fiji.
Recommendations  The Department should prepare an action plan to allow the continuous funding from the UINICEF and rectify child trafficking in Fiji.
25 Fiji National Plan of Action to Eradicate Trafficking in Persons - 2011 26 The funds were provided through the general ledger allocation 1-06201-70999-070409 Ministry of Defence, National Security & Immigration Section 06: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Director Immigration should ensure that staff capacity and capability is assessed to ensure that the Department have the capacity to prepare an action plan to eradicate trafficking in person for Child Trafficking in Fiji.
 The Department should inform and consult Ministry of Finance to allocate the funds to other agencies if it does not have the capacity to prepare an action plan.

Management Comments  Recommendation is noted.

The National Action Plan to eradicate trafficking in Fiji was launched in February 2011 and the Department and other stakeholders will work together as required in the plan to eradicate trafficking in Fiji.
Assistance will be sought from UNICEF and other donor agencies to assist in the implementation of the plan.

 Recommendation is noted.

There is a dedicated team within the Department to deal with all trafficking issues in collaboration with the Police trafficking team and other stakeholders.

 Recommendation is noted.
6.11 Non-Submission of Overseas Training Reports An officer who undertakes a course of instruction, attachment or visit shall submit a report in duplicate to the secretary for the Public Service through his Head of Department.27 Permanent Secretaries and Heads of Departments should examine the recommendations in the report and, wherever possible, take appropriate action and advice the secretary for the Service accordingly.28 The audit noted that the following Officers who attended overseas training, workshops and courses in 2013 failed to submit the reports to the department and the Public Service Commission.
Refer Table 6.13 below for details.
Table 6.13: Overseas Training, Workshop and Courses Reports not submitted Officer(s) Training/Workshop/Courses Period Country Nemani Vuniwaqa and Maika Koli Nemani Vuniwaqa Nemani Vuniwaqa Yogendra K Chanel Tuisawau PIDC ITC Community Practice Forum; High Level dialogue on International Migration & development Training course on Bilateral Training for Senior Civil Servants Secondment to the Pacific Transitional Co-coordinating Center (PTCCC) Pacific Director Conference Operational Placement Jone Ledua Attachment – Shanghai Alekisio Sela Edward Brown Nemani Vuniwaqa Litia S Navilesh C Interpol Capacity Building Programme PIDC Meeting Asia Pacific Regional Preparatory Meeting for the General Assembly High Level Dialogue on International Migration and Development.
18 - 20/2/13 3 - 4/10/13 11-22/11/13 Canberra, Australia New York China 11/2 -10/3/13 Apia, Samoa 27/5 - 1/6/13 14 - 20/10/13 21 - 28/10/13 4 - 5/11/13 29 - 31/5/13 Australia Shanghai China Asia Palau Bangkok, Thailand The findings indicate that the Officers attending overseas training did not comply with the provisions of the General Order by not submitting their training reports to PSC.
27 General Orders (2011) - Section 902 (a) 28 General Orders (2011) - Section 902 (b) Ministry of Defence, National Security & Immigration Section 06: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In addition, the benefits to the Department for sending officers for overseas training will not be evaluated and effectively measured if training reports are not submitted and assessed.
Moreover, the experience and knowledge gained from attending the courses and workshop are not being imparted to other members of the staffs.

Thus, vital information and knowledge which could be imparted and implemented to improve the efficiency and operation of the Department is not conveyed to other staff of the Department.

Recommendations  The Department should ensure that all Officers who attend trainings/workshops/conferences overseas submit a training report to the Public Service Commission.
 The Department should ensure that all Officers sent on overseas training strictly comply with General Orders 902 and necessary actions taken for non-compliance.

Management Comments Recommendation trainings/workshops/conferences overseas submit a training report as required under General Orders 902. noted.

The Department will all Officers who ensure that is attend 6.12 Unserviceable Vehicles The maintenance and replacement of government vehicles is a significant cost to Government.
The behaviour of drivers, usage of vehicles for private purposes and lack of proper care all contributes to the cost of maintaining vehicles.29 The audit noted that two (2) unserviceable vehicles registrations GN 714 and GN 727 were grounded at the Headquarters car park during the year.

Audit also noted that no reports were prepared outlining the history of the vehicle use, maintenance costs, results of the test or servicing and the estimated costs of replacing the vehicle.
As of the date of audit30 the Department did not make any decision whether to repair or dispose the vehicles.

It is evident from the dilapidated state of the vehicles that it would not be economical to repair and their disposal value also continues to decline.

The above reflect poor resource management by the Department and disregard to standing government regulations.

Recommendation The Department should prepare vehicle reports and take appropriate action to dispose the vehicles.
Management Comment The Department has contacted Ministry of Finance [Vehicle Control Unit] who has advised that a team will be sent to carry out the Board of Survey before the vehicles are removed.
29 Department of Immigration Finance Manual (2012) – Part 12 – Introduction; Section 12.1 30 June 2014 Ministry of Defence, National Security & Immigration Section 06: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ DEPARTMENT OF DEFENCE 6.13 Expenditure Ledger Not Maintained A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.31 Any transaction processed affecting these accounts shall be entered in the appropriate ledger.32 The Department of Defence maintains a vote book of expenditure however the audit noted that the Department does not maintain an expenditure ledger.
As a result, the Department could not reconcile the expenditure recorded in the general ledger system33 maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the expenditure amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Department should maintain an expenditure ledger and reconcile its expenditure ledger with FMIS on a monthly basis.
Management Comment The department has taken your audit findings into consideration as opportunities for improvement and way forward to ensure that:  an expenditure ledger is maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts and expenditure and commitment account.
 Monthly reports are extracted from the FMIS Reports folder and reconciled by the clerical officer monthly to ensure all payments and miss-postings or adjustments or clearances of advance and etc.

are recorded and reconciled.


6.14 Lack of Acquittal, Supporting Documents and Payments Control Immediately after payment has been effected, the Assistant Accounts Officer (Payments) must stamp “paid” on all vouchers and supporting documentation to avoid any double payments.34 A travelling officer shall recoup the travel advance within seven days of completing travel by submission of an acquittal report with supporting documents.
If an advance has not been fully expended, the travelling officer must repay the balance within seven days of completing travel.35 Competitive quotes, instead of public tenders, may be called for procurements below $50,000 unless the PS has approved an exemption in accordance with Procurement Regulation 29-(3).36 The audit noted the following anomalies in the payment made by the Ministry;  There was no stamp paid on vouchers and supporting documents; 31 Ministry of Defence Finance Manual (2011) – Section 16.3.1 32 Ministry of Defence Finance Manual (2011) – Section 16.3.2 33 Financial Management Information System controlled by Ministry of Finance.
34 Ministry of Defence Finance Manual (2011), Section 2.8.5 35 Ministry of Defence Finance Manual (2011), Section 10.1.11 & 10.1.12 36 Ministry of Defence Finance Manual (2011), Section 2.3.1 Ministry of Defence, National Security & Immigration Section 06: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Ministry did not obtain three competitive quotation for supplier of services;  Non submission of acquittals report with supporting documents such as receipts to substantiate the overseas travel expenditures incurred;  The payments made for the “Remembrance Day” were not acquitted by the organisers and various ex-servicemen association of the returned soldiers.
The Ministry was allocated37 $108,189 to fund the celebration of “Remembrance Day” for those who serve during the war and on peacekeeping duties.

Refer Table 6.14 for details.

Table 6.14: Details of Breach of Finance Policies Amount ($) Payee Details Remarks Date 22/06/13 Cheque No.
(Reference) 021581 10,981 Discount Flight Centre 26/9/13 022086 12,436 Jad International Travel Services 07/11/13 022288 100 PS Defence Airfare for Minister’s tour to Russia Airfare for Minister’s tour to New York Payment of contingent fund for workshop in Nadi Based on budget submitted for Remembrance Day No quotation attached.

competitive No acquittal provided on how fund was used.
There was no acquittals submitted by all the ex- serviceman organization for the funds disbursed the to them “remembrance day” celebration for 4,680 Aminiasi Vuase – Kadavu ex-servicemen association 3,620 PS Provincial Dev.

for Ovalau/Moturiki ex- servicemen association 1,210 Nacanieli Draunidalo – Moala ex-servicemen 3,825 Cakaudrove Returned Soldiers 20,100 PS- Provincial Dev.

– Western Division 2,514 PS – Provincial Dev.
– Tailevu North 5,000 Tebara Returned Soldiers Association 9,200 PS- Provincial – Bua/ Macuata ex-servicemen 6,000 Serua/Namosi/Beqa ex- servicemen association 1,200 Cicia ex- Servicemen 022255 (RD01/13) 000098 (RD02/13) 022256 (RD03/13) 000097 (RD04/13) 000098 (RD05/13) 000099 (RD06/13) 022275 (RD07/13) 000100 (RD11/13) 022277 (RD12/13) 022290 (RD28/13) 30/12/13 01/11/13 01/11/13 01/11/13 01/11/13 01/11/13 01/11/13 01/11/13 05/11/13 05/11/13 08/11/13 EFT – PV – 14619 EFT 000288 Total 378 Nemani Vakacabeqoli Overtime for closing of accounts.
Voucher were not stamp paid 30/12/13 207 Salesi Cama 81,451 The above indicates ignorance of governing procedures and breach finance instructions and policies in place which could result in double or fraudulent claim of payments.

This could also be catalyst to abuse, misappropriation and could result in wastage of taxpayer’s funds.
37 The funds were allocated through the SEG 7 – Special Expenditure Ministry of Defence, National Security & Immigration Section 06: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations  The Accounting Head should ensure that supervisory checks in the procurement of goods and services are strengthened and all records are stamp paid immediately after payments.
 The Accounting Head should ensure that funds paid for “Remembrance Day” and overseas travel advances are properly acquitted.

 The ministry may also need to review how the Remembrance day celebrations in the various centers were organized and plan for improvements to ensure effective and efficient use of funds allocated.

 The Accounting Head should ensure that all funds utilized are properly accounted for in the records of the Ministry.
Management Comment The Department notes your comment and submitted hereunder is the department’s response.

1.

Flight bookings for the Russian trip in June 2013 was in fact arranged and booked through Discount flight centre by the Prime Minister’s Office.

The Ministry was advice to make payments accordingly as communicated by the PM’s Office who was handling the travel arrangements.

The Ministry did not obtain the three required quotations as stated above.

2.
2.

JAD International travel Services is the Ministers preferred travel agent for his entire official trip.

Jad travel accommodates the changing itinerary needs and does not charge any extra cost even though the change occurs at the eleventh hour or when he is already en routed on his trip.

3.

We noted that officers attending to this workshop have yet to submit the relevant document to acquit the contingent funds provided and have agreed deduct at source from their salary the amount of $100.00.

4.
4.

We however noted the importance of providing the three quotations as per policy and will strictly adhere as advised.

5.

The detail for expenses used for R/Day in Kadavu was personally delivered to the Ministry HQ by Mr. A Vuase in May 2014.

6.

The details of expenses for R/Day in the Lomaiviti Group was acquitted to the Commissioner Eastern Office and forwarded to the Ministry of Defense Accounts Section on 16/01/14 7.
Despite the Ministry’s plea during the RSESA forums where all members around Fiji attend, there is still no improvement in respect to the submission of acquittal to the Ministry of Defense HQ.

Follow up reminder made with the RSESA HQ upon receipt of the Audit report.

8.

Despite the Ministry’s plea during the RSESA forums where all members around Fiji attend, there is still no improvement in respect to the submission of acquittal to the Ministry of Defense HQ.
Follow up reminder made with the RSESA HQ upon receipt of the Audit report.

The officials from Commissioner Northern’ s Office are following up on acquittal reports for R/Day.

9.

Despite the Ministry’s plea during the RSESA forums where all members around Fiji attend, there is still no improvement in respect to the submission of acquittal to the Ministry of Defense HQ.

Follow up reminder made with the RSESA HQ upon receipt of the Audit report.
The officials from Commissioner Western’s Office are following up on acquittal reports for R/Day.

10.

Despite the Ministry’s plea during the RSESA forums where all members around Fiji attend, there is still no improvement in respect to the submission of acquittal to the Ministry of Defense HQ.

Follow up reminder made with the RSESA HQ upon receipt of the Audit report.
Ministry of Defence, National Security & Immigration Section 06: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The officials from Commissioner Central’s Office following up on acquittal reports for R/Day.

11.

The detail for expenses used for R/Day in Tailevu was personally delivered to the Ministry HQ in Quarter 1 of 2014.

12.
12.

Despite the Ministry’s plea during the RSESA forums where all members around Fiji attend, there is still no improvement in respect to the submission of acquittal to the Ministry Defense HQ.

Follow up reminder made with the RSESA HQ upon receipt of the Audit report.

The officials from Commissioner Northern’ s Office following up on acquittal reports for R/Day.

13.

The detail for expenses used for R/Day in Serua/ Namosi/ Beqa was personally delivered to the Ministry HQ to MLO cell in July 2014.

14.
14.

Despite the Ministry’s plea during the RSESA forums where all members around Fiji attend, there is still no improvement in respect to the submission of acquittal to the Ministry of Defense HQ.

Follow up reminder made with the RSESA HQ upon receipt of the Audit report.

15.

Accounts are now complying with all accounting requirement, all vouchers related to above are now stamp paid on the date of payment.
6.15 Discrepancies in Meal Allowance Payments The proper management of expenditure is fundamental to ensuring value for money in delivering services to the community.
As well, having cost effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over expenditures and corruption do not occur.38 An officer shall be paid meal allowance under the following circumstances; a) If required to work or undertake official travel during the lunch meal period during normal working days.
An additional meal allowance for each successive period of 5 hours continuous work performed immediately after the initial meal break; b) In respect of Saturdays, Sundays and Gazetted public holidays, he shall be paid a meal allowance if he is required to work and/or undertake official travel continuously for each period of not less than five (5) hours.
39 From our review of records, the audit noted the following:    Accounts section officers continuously worked overtime for 2 months effective from 25/11/2013 to 15/02/2014 including lunch hour break.

Prior approval to work during lunch hour break could not be determined as the Ministry fail to produce approval to work during lunch hour.
The audit further established that officers continues to work overtime for the last two weeks of February and for the month of March 2014 hence overtime for this additional period were not approved and payments of meal allowance were unauthorised.
Reasons for working overtime included clearing payment vouchers, ledgers reconciliation from January to December, stamping vouchers, checking that all funds disbursed are properly acquitted, daily collection of revenue are lodged and recorded in the general ledger, salary & wages inputs, processing payments and cheques for all outstanding payments and closing of 38 Ministry of Defence Finance Manual (2011), Part 2 Expenditure – Introductory Statement 39 General Orders (2011) - Section 526 Ministry of Defence, National Security & Immigration Section 06: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ accounts, most of which are routine tasks that should have been carried out during official working hours.
The meal allowance claim submitted by the officers does not document the actual work done on each day; Taxi fare claims were also paid to all officers without submitting the taxi fare receipts.

  Refer Table 6.15 for some detail examples.
Table 6.15: Examples of Discrepancies in Payment of Meal Claim Name Marika Qalo – Clerical Officer Salesi Cama – Clerical Officer Payments Salesi Cama – Clerical Officer Payments Salesi Cama Cheque Number 020985 Date Amount ($) 05/03/13 133 020984 05/03/13 122 021014 11/03/13 114 020964 01/03/13 152 Details Audit Remarks Meal allowance for payments overtime compiling draft response to audit query from to 28/02/13 04/03/13 Meal allowance payments for overtime worked from 01/03/13 to 04/03/13 Meal allowance payments for overtime work from 08/03/13 to 10/03/13 Meal allowance for payments from overtime 25/02/13 to 28/02/13 - The overtime period of work were not within the approval period of overtime work; -The audit noted that there were unauthorised amendments for the time out in the attendance records that were used to process the payment of meal allowance; -Included in the meal allowance payment were taxi claim which does not have supporting documents such as receipts to validate the transport claim; -The officer were also paid allowance for working during lunch hour for which the audit could not determine the approval and evidence for working during lunch hour break.
- The overtime period of work were not within the approval period of overtime work; - There was no approval document attached to the payment voucher such as daily attendance records and reason for working overtime were not stated in the voucher claim form.
- Included in the meal allowance payment were taxi claim which does not have supporting documents such as receipts to validate the transport claim; -The officer claims two meal allowances per day even though the officer signs out at 7.00pm; -The officer were also paid allowance for working during lunch hour for which the audit could not determine the approval and evidence for working during lunch hour break.
-The overtime period of work were not within the approval period of overtime work; - There was no approval document attached to the payment voucher such as daily attendance records; - Included in the meal allowance payment were taxi claim which does not have supporting documents such as receipts to validate the transport claim.
-The overtime period of work were not within the approval period of overtime work; -There was no approval document attached to the payment voucher such as daily attendance records and reason for working overtime were not stated in the voucher claim form; - Included in the meal allowance payment were taxi claim which does not have supporting documents such as receipts to validate the transport claim; - The audit noted that there were unauthorised amendments for the time out in the attendance records that were used to process the payment of meal allowance.
Ministry of Defence, National Security & Immigration Section 06: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name Nemani Vakacabe qoli – AAO Cheque Number EFT – PV – 14619 Date Amount ($) 30/12/13 378 Meal allowance payments Details Audit Remarks Salesi Cama EFT 000288 30/12/13 207 Meal allowance payments Luisa Lomavatu Akata Motufaga Total 021463 31/05/13 81 021465 30/05/13 81 Meal allowance payments 1,268 includes closing of accounts and -Overtime work transporting overtime staff from 02/12/13 to 29/12/13; -The officer were paid allowance for working during lunch hour for which the audit could not determine the approval and evidence for working during lunch hour break.
-Overtime works includes compiling of ACP 2014 & assist in closing of accounts from 06/12/13 to 29/12/13; -The officer were paid allowance for working during lunch hour for which the audit could not determine the approval and evidence for working during lunch hour break.

There was no approval document attached to the payment voucher such as daily attendance records to substantiate the overtime work for the preparation & formatting of Defence Annual Report 2012 from 20/05/13 to 29/05/13.
The manner in which officers continuously worked overtime from November 2013 to March 2014 appeared suspicious as works undertaken during overtime are the normal routine tasks that should have been carried out during official working hours.

The Ministry does not have adequate internal controls to closely monitor overtime allowance payments or minimise overtime resulting from inefficiencies.
Although working overtime is necessary in certain circumstances, continuous overtime indicate that officers are unproductive during official working hours.

Recommendations  The Accounting head should ensure that all necessary supporting documents are provided by Officers when claiming for meal allowance.

 With substantial overtime hours worked by officers in the Department, management and those with supervisory roles need to proactively engage in management of overtime hours.
 Working overtime should be closely monitored and properly managed and procedures developed to closely monitor overtime costs.

 Prior approval should be sought from the Permanent Secretary to approve overtime.

 Routine tasks should be appropriately planned and allocated to be completed during official working hours.

 Processes for evaluating the efficiency and effectiveness of various work production should be developed.
Management Comments The Ministry noted the comments of the audit team and provide as follows the explanation: i.

The approval was provided under a separate cover and is now attached to the meal claims identified.

ii.

Since no transport was provided to take officers home after work, they reverted to Public Service vehicle as means for travel.
The officers who had taken this mode of transportation were unable to produce the required receipt and therefore will have these fares deducted at source from their salary.

iii.

Nemani Vakacabeqoli was requested to drive in the absence of the official driver and has submitted the vehicle running sheets as evidence.

His engagement as driver during official hours needed him to clear pending work during lunch.

The vehicle sheets are now attached to the meal claim for verification.
Ministry of Defence, National Security & Immigration Section 06: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ We will however adhere to the advice provided in the above and implement it according to improve work standards Further OAG Comment The Ministry did not submit the approval for overtime after the period 15/02/2014 upon further audit inquiry on 29/09/2014.
Ministry of Defence, National Security & Immigration Section 06: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES Appendix 6.1: System Data Without Issue Dates Of Applications Permit No Vapp Date Issue Date Exp Date Passport No Country Surname Full name Sex Birth Date Address In Fiji Dwc1300064 5/28/2013 Dwc1300066 5/28/2013 Pwll1302705 6/19/2013 Pwlm135397 6 1/11/2013 Pwlm138937 7 4/1/2013 Pwln1301659 6/3/2013 Pwln1307281 9/16/2013 Pwls1300083 5/7/2013 Pwls1300088 5/8/2013 Pwls1300295 5/14/2013 Pwls1300376 5/16/2013 Pwls1301758 6/4/2013 ?
?

?

?

?

?

?

?

?

?

?

?

Pwls1303850 7/10/2013 Pwls1303953 7/12/2013 Pwls1304786 7/30/2013 Pwls1304966 8/1/2013 ?

?

?

?
H1603210 India Ganguly J2651336 India Ganguly J9520843 India Garikipati 1/11/201 6 488351969 United States Irvin 4/1/2014 651419675 United Kingdo m Australi a M5025410 Luno Murgida Kr0353585 Republi Woo Parthiv Ganguly Jayashree Ganguly Phanindra Garikipati Andrew Grant Irvin Daniel Jerome Luno Mark Stewart Murgida Giha Woo La662149 La869042 N2157961 c Of Korea New Zealand New Zealand Australi a Patel Atin Patel Kiesanowsk i Clarke Craig Frances Kiesanowski Debra Leigh Clarke M F M M 8/15/2002 8/16/1964 12/25/198 3 10/5/1986 M 5/19/1984 M M M M F 1/3/1975 10/10/195 9 10/17/197 8 7/1/1965 9/29/1963 N6150844 K7703361 Australi a India James Kieran James Purohit Oh Kamleshkumka r Chhotalal Purohit Si Chun Oh M M 11/17/196 8 6/1/1968 M 9/2/1957 Republi c Of Korea Australi a Testppclrj E15530613 China Test Pplication Xu Sdfadf Test Pplication Wenyu Xu M M M M 6/3/1984 8/15/1981 8/9/1946 8/27/1944 7/30/201 5 1/10/201 7 505459078 United States Australi a N4421913 Ouaknine Davies Albert Alain Ouaknine John Cameron Davies Pwls1302712 6/19/2013 ?
7207787 35 Nayau Street Samabula,S uva 55 Mcgirath Crescent Nadi 12 Navatu Street Varadoli,Ba 223 Princes Road ,Suva 217 Grand Parade, Bonnells Bay, Nsw 2264, Australia 11 Tikaram Namadi Heights Suva Nabouwalu Section 2 Nawaca Villa Raiyawa Ratu Penaia Drive Taveuni Ministry of Defence, National Security & Immigration Section 06: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Vapp Date Issue Date Exp Date Passport No Country Surname Full name Sex Birth Date Address In Fiji Pwls1311030 12/6/2013 Pwls1311550 Pwls1311568 Pwsn130203 3 Pwss130004 1 Pwss130072 8 Pwss130169 6 12/18/201 3 12/18/201 3 6/8/2013 5/6/2013 5/22/2013 6/4/2013 Pwss130412 8 Pwss130549 6 7/17/2013 8/13/2013 Pwss130597 8 Pwss130597 9 Pwss130598 0 Pwss130598 1 Pwss130598 2 Pwss130614 7 Pwss130929 1 8/20/2013 8/20/2013 8/20/2013 8/20/2013 8/20/2013 8/22/2013 10/29/201 3 Pwss131051 6 11/26/201 3 6/17/2013 ?
Estates 4/10/1968 9/30/1985 Suva N1579568 G3760155 9 N5007419 La618948 Australi a China Australi a New Zealand Aah035934 Spain Ln692319 G4572521 2 New Zealand China Siddiqi Zhou Miskelly Herbert Gea Cabrera Caffell Gao Mohammed Irfan Siddiqi Zunping Zhou Preston John Sydney Miskelly Malcolm Andrew Herbert Roberto Gea Cabrera Anthony Francis Caffell Anhong Gao A03897106 Nigeria Asonibe Et331385 Ukraine Siusarenko Henry Uche Asonibe Andrii Siusarenko E24461379 China Shou Kuigang Shou E24460998 China Chen Jianhua Chen E24461376 China Shou Zhifang Shou E24461378 China Ma Haimin Ma E24461377 China He Qianjiang He M6762766 N3246991 Australi a Sri Lanka Underwood Melanie Jane Perera Underwood Kodikara Arachige Mary Bernadette Perera M M M M M M F M M M M F M M F F 5/18/1973 11/26/196 3 4/4/1983 6/22/1942 3/11/1976 6/5/1991 6/14/1966 5/17/1962 1/22/1970 5/6/1963 1/27/1969 1/17/1992 1/3/1978 2/1/1966 G5816686 3 R397747 China Zhu Binggui Zhu TONGA VEITUNA MELELUA FALETELE VEITUNA F F 1/23/1977 6/9/1967 C/-Heng Yuan Company Fiji Ltd Ukraine Donetsk 83077 Denisenko St 4/4 Nasinu Guest House,Fiji National University,N asinu Suva Ministry of Defence, National Security & Immigration Section 06: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 6.2: System Data Without Expiry Dates Of Applications Permit No Vapp Date Exp Date Issue Date Passport No Country Surname Full Name Sex Birth_ Date Address In Fiji Dwc1300064 5/28/2013 Dwc1300066 5/28/2013 Pwll1302705 6/19/2013 ?
H1603210 India Ganguly J2651336 India Ganguly J9520843 India Garikipati Pwlm135397 6 1/11/2013 1/11/201 6 488351969 United States Irvin Pwlm138937 7 4/1/2013 4/1/2014 Parthiv Ganguly Jayashree Ganguly Phanindra Garikipati Andrew Grant Irvin Daniel Jerome Luno Mark Stewart Murgida Giha Woo M F M M 8/15/2002 8/16/1964 12/25/198 3 10/5/1986 M 5/19/1984 M M M M F 1/3/1975 10/10/195 9 10/17/197 8 7/1/1965 9/29/1963 651419675 United Kingdo m Australi a M5025410 Luno Murgida Kr0353585 Republi Woo La662149 La869042 N2157961 c Of Korea New Zealand New Zealand Australi a Patel Atin Patel Kiesanowsk i Clarke Craig Frances Kiesanowski Debra Leigh Clarke ?
Pwln1301659 6/3/2013 Pwln1307281 9/16/2013 Pwls1300083 5/7/2013 Pwls1300088 5/8/2013 Pwls1300295 5/14/2013 Pwls1300376 5/16/2013 Pwls1301758 6/4/2013 Pwls1302712 6/19/2013 Pwls1303850 7/10/2013 Pwls1303953 7/12/2013 Pwls1304786 7/30/2013 Pwls1304966 8/1/2013 James Kieran James Purohit Oh Kamleshkumka r Chhotalal Purohit Si Chun Oh M M 11/17/196 8 6/1/1968 M 9/2/1957 N6150844 K7703361 Australi a India 7207787 Testppclrj Republi c Of Korea Australi a E15530613 China Test Pplication Xu Sdfadf Test Pplication Wenyu Xu M M M M 6/3/1984 8/15/1981 8/9/1946 8/27/1944 7/30/201 5 1/10/201 7 505459078 United States Australi a N4421913 Ouaknine Davies Albert Alain Ouaknine John Cameron Davies Pwls1311030 12/6/2013 ?
N1579568 Australi a Siddiqi Mohammed Irfan Siddiqi M 4/10/1968 Ministry of Defence, National Security & Immigration Section 06: Page 27 35 Nayau Street Samabula,S uva 55 Mcgirath Crescent Nadi 12 Navatu Street Varadoli,Ba 223 Princes Road ,Suva 217 Grand Parade, Bonnells Bay, Nsw 2264, Australia 11 Tikaram Namadi Heights Suva Nabouwalu Section 2 Nawaca Villa Raiyawa Ratu Penaia Drive Taveuni Estates Country Surname Full Name Sex Birth_ Date Address In Fiji China Zhou Zunping Zhou 9/30/1985 Suva REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Vapp Date Exp Date Issue Date Pwls1311550 Pwls1311568 Pwsn130203 3 Pwss130004 1 Pwss130072 8 Pwss130169 6 12/18/201 3 12/18/201 3 6/8/2013 5/6/2013 5/22/2013 6/4/2013 Pwss130412 8 Pwss130549 6 7/17/2013 8/13/2013 Pwss130597 8 Pwss130597 9 Pwss130598 0 Pwss130598 1 Pwss130598 2 Pwss130614 7 Pwss130929 1 8/20/2013 8/20/2013 8/20/2013 8/20/2013 8/20/2013 8/22/2013 10/29/201 3 Pwss131051 6 11/26/201 3 6/17/2013 ?
Passport No G3760155 9 N5007419 La618948 Australi a New Zealand Miskelly Herbert Gea Cabrera Caffell Gao Preston John Sydney Miskelly Malcolm Andrew Herbert Roberto Gea Cabrera Anthony Francis Caffell Anhong Gao Aah035934 Spain Ln692319 G4572521 2 New Zealand China A03897106 Nigeria Asonibe Et331385 Ukraine Siusarenko Henry Uche Asonibe Andrii Siusarenko E24461379 China Shou Kuigang Shou E24460998 China Chen Jianhua Chen E24461376 China Shou Zhifang Shou E24461378 China Ma Haimin Ma E24461377 China He Qianjiang He M6762766 N3246991 Australi a Sri Lanka Underwood Melanie Jane Perera Underwood Kodikara Arachige Mary Bernadette Perera M M M M M F M M M M F M M F F 5/18/1973 11/26/196 3 4/4/1983 6/22/1942 3/11/1976 6/5/1991 6/14/1966 5/17/1962 1/22/1970 5/6/1963 1/27/1969 1/17/1992 1/3/1978 2/1/1966 G5816686 3 R397747 China Zhu Binggui Zhu TONGA VEITUNA MELELUA FALETELE VEITUNA F F 1/23/1977 6/9/1967 C/-Heng Yuan Company Fiji Ltd Ukraine Donetsk 83077 Denisenko St 4/4 Nasinu Guest House,Fiji National University,N asinu Suva Ministry of Defence, National Security & Immigration Section 06: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 6.3: Visit System Data Without Known Local Addresses Whilst On Permit No Country Full Name Permit No Country Full Name PWSM1355513 Canada PWSM1354455 PWLS1307989 PWSM1354053 PWLM1353851 PWLM1354095 PWLM1354132 PWLM1354174 PWLM1354184 PWLM1354185 PWLM1354186 PWLM1354365 PWLM1354441 PWSM1353848 PWSM1353916 PWSM1354393 PWLM1389186 PWSM1354337 PWSM1354317 PWSM1354006 PWSM1354203 PWSM1354087 PWSM1354205 United States Indonesia Canada New Zealand Richard G Binkler Sr Sodikin Josephine Jane Olver Herring Matthew Paul William Aubrey Kevin Swift Australia United Kingdom Clare Elizabeth White Gerard Prevost Knight Australia Huiting Yin China Junzhou Feng China Anastasiia Slavytska Ukraine Shane Bond New Zealand Hui Li China Nikul Khatriu Australia Juri Mandla United States Natalie Louise Giofre Australia Kim Edward Brennan
 Australia Amy Caroline Grant New Zealand Lee Smith United Kingdom Zhuoye Chen China Michael Leslie White Australia Liu Mingsen China Sarah Elizabeth Hutchison New Zealand PWLM1354356 India PWLM1354439 PWLM1354537 PWLM1354589 PWLM1354592 PWLM1354793 PWSM1354118 PWSM1354179 PWSM1354396 PWLM1354581 PWLM1354582 PWLM1348345 PWSM1354214 PWSM1354233 PWSM1354539 China Papua New Guinea United States Malawi Papua New Guinea Pakistan Japan Unknown United States Australia Solomon Islands Ireland China Sri Lanka PWSM1354725 PWSS1304577 PWSM1354316 Canada China New Zealand Kevinkumar Yashwantbhai Hariawala Erpin Wu Joseph Kola Kelaga Duke Eric Long Noel Weddington Nyirenda Wilson Suku Mano Sheikh Nasir Sohail Ken Kawamura Betina Renner Robert Edward Wilkes Susan Elizabeth Jones Junior Toloau Laura Jane Houlihan Yang Liu Camerino Valance Bartholomeusz Riley Gibson Yang Liu Paul Muchada Makumbe PWLM1355215 PWLM1355222 PWSM1354358 PWSM1354450 PWLM1356368 PWSM1354458 PWSM1355310 PWLM1389021 PWSM1354606 PWLS1311169 PWLS1311170 PWSM1354841 PWLM1389070 PWLM1355384 PWLM1355607 PWLM1355993 PWLM1356365 PWLM1389071 PWLM1389854 PWLM1354843 PWSM1353898 PWLM1352243 PWLM1355227 PWLM1355308 PWLM1355397 PWLM1355398 PWLM1355699 PWLM1355309 PWLM1356129 PWLM1355965 PWSM1389563 PWLM1354738 PWLM1354739 PWLM1356039 PWLS1300226 PWSM1389595 PWLM1389113 Ursula Claudia Ingeborg Scheid Hayden Russell Anderson Philip William Casey Sulav Pradhanang Mirko Antonio De Giorgi Eika Fujita Koralalage Kalutara Jennifer Sarah Scott Sameel Haya Gachlem Zepharos Ngassaki-Zoni Ngoc Thang Nguyen Van Au Hoang New Zealand New Zealand Nepal Unknown Japan Sri Lanka United Kingdom Pakistan Congo Brazaville Vietnam Vietnam United Kingdom Carole Ann Vance Philippines Australia China Republic Of Korea Australia Lover Butalid Tyson James Bramwell Qianmei Xie Hany Yoon Michael Harold Ty Goulter Philippines China Australia Israel China Liberia Australia Canada Canada Rafael Lanon Chen Yunlong George Joffre Trinkler Guy Jakobi Liming
 Shen Clarence G Clarke Sachin Deobarama David Jonathan Murphy Jacqueline Susanne Murphy United Kingdom Simon Chadwick Jinks Indonesia China New Zealand Australia Nepal Nepal Australia Japan South Africa Canada Abdul Hakim Kadir Yasin Chuangqiu Chen Timothy Michael Langley Eric Gregory Cornell Arjun Sapkota Himnath Sapkota Darrien Brent Valler Takayuki Tanaka Dylan Anderson Burgers Emilie Marie Jeanne Simard Matthew Kirby Guosheng Zhang Ministry of Defence, National Security & Immigration Section 06: Page 29 PWLM1389131 PWLM1389144 Canada China REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWLM1389147 PWLM1389148 PWLM1389149 PWLM1389150 PWLM1389151 PWLM1389152 PWLM1389153 PWLM1389155 PWLM1389157 PWLM1389158 PWSS1304843 PWSS1304844 PWSS1304845 PWSS1304846 PWSS1304847 PWSS1304848 PWSS1304849 PWSS1304850 PWSS1304851 PWSS1304852 PWSS1304854 PWSM1389580 PWSM1389581 PWSM1389584 PWSS1304853 PWSS1304859 PWSS1304860 PWSM1310840 PWSM1312747 PWSM1324202 PWSM1389560 PWLM1389138 PWSM1389592 PWSM1389593 PWSM1389594 PWSM1389691 PWLM1389349 PWLM1389808 PWSM1389638 PWSM1389726 PWSM1389727 PWLM1355317 PWLM1389509 PWSM1389589 PWSM1352793 PWSM1389716 PWLM1389876 PWLM1389877 Qinjie Fu Bizheng Shou Guomin Wang Yingxian Zhao Laisheng Ai Feijun Du Liang He Qi Jiang Jiangang Sun Fangming Zhang Guosheng Zhang Yingxian Zhao Liang He Laisheng Ai Guomin Wang Bizheng Shou Jiangang Sun Fangming Zhang Feijun Du Qi Jiang Qinjie Fu Jianyong Zhou Guoyang Zhu Nengjun Fu Nengjun Fu Guoyang Zhu Jianyong Zhou China China China China China China China China China China China China China China China China China China China China China China China China China China China Unknown Unknown Unknown Pakistan Italy India India India Australia China China New Zealand Philippines Philippines United Kingdom Kristopher Williams China Philippines Syrian Arab Republic United States United States United States
 Zeeshan Riaz Davide Fivizzani Radha Kishan Gurjar Pappu X Kalyan Singh Gyaneshwaran Pillay Ying Shen Cen Weigen Alex Matthew Murray Ryan Jay Iiagan Dandy Farnazo Zhixuan Tian June Sibug Lagao Khaldoun Alsavah Craig Neal Williams Edwards Donald Edwards Jahine Morgan PWLM1389878 PWLM1389879 PWSM1389564 PWSM1389565 PWSS1301512 PWSM1389743 PWLM1389785 PWSS1300005 PWSS1300010 PWSM1354289 PWSS1301247 PWLM1389870 PWLM1389871 PWSM1389800 PWSM1389847 PWSS1300072 PWSS1300070 PWSS1300079 PWSS1300081 PWSS1300082 PWSS1300085 PWSN1305325 PWSN1305327 PWSS1300104 PWSS1300105 PWSS1300106 PWSS1300165 PWLS1300131 PWSS1300162 PWSS1304069 PWSM1389898 PWSS1300252 PWSS1300304 PWLN1302444 PWSS1300340 United States United States Philippines Philippines Portugal Switzerland China United States Australia Australia China China China France Australia China Ireland India Denmark Denmark Australia India India China China China Republic Of Korea China India China South Africa New Zealand China Australia Sri Lanka Mc Fadden Gary Albert Mc Fadden Kathleen Vicentino Igot Rogelio Estoquia Claudia Ferreira Rodrigues Sandro Zellweger Meiqi Yang Steven Carl Jaegers Brian Michael Sloane Gerrard Jack Jordan Mcnamara Feifei Deng Yushuang Liu Xiaowei Gong Fanny Valentine Castel Jacques Paul Louis Prouchandy Bian Xin Ronan Thomas Mc Gowan Ankur Surana Anders Bitsch Tai Kare Lund Joergensen Sandra Lee Harper Jatinder Singh Brar Mukesh Kumar Kumar Zhigang Sun Yongkang Cai Xufeng Lou Jinyoung Kim Dayong Cui Jayant Sawant Bo Huang Ian Shipman Maire Dwyer Zeming Lu One Work Testone Dhanushka Dhamruwan Basnayaka Basnayaka Mudiyanselage PWSS1300342 Australia James Alexander Ferguson PWSS1300588 PWSS1300600 New Zealand India PWSS1300693 PWSS1300707 PWSS1300708 PWSS1302823 Australia China China New Zealand Bevan John Clark Kamleshkumar Rasiklal Jogia James John Zannakis Ling Ye Yanfang Shen Warren Charles Tipa Ministry of Defence, National Security & Immigration Section 06: Page 30 REPORT OF THE AUDITOR GENERAL OF THE
 REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWSN1301126 PWSN1301134 PWSN1301151 PWSN1301152 PWSN1301277 PWSN1300922 PWSN1301266 PWSN1301281 PWSN1301282 PWSN1301284 PWSN1301345 PWSS1300568 PWSS1300850 PWSS1301240 PWSS1303144 PWLS1302293 PWLS1300110 PWLS1300111 PWLS1300112 PWLS1300113 PWLS1300140 PWLS1300163 PWLS1300177 PWLS1300185 PWLS1300186 PWLS1300209 PWLS1300210 PWLS1300369 PWLS1300370 PWLS1300371 PWLS1300372 PWLS1300373 PWLS1300374 PWLS1300429 PWLS1300587 PWLS1300601 PWLS1300673 Chien Kuo Chen United Kingdom Alexander John Jenks Monica Anne Keenan United States Laurence Yumi Sakai Minji Kim Yngve Muldal Maud Schreuders Nicolas Raymond Trotin Michel Robert Lambotte Stephane Hiromi Regner Jianwei Feng Guoxi Lin Slobodan Matic Japan Republic Of Korea Taiwan, Province Of China South Africa Netherland United States United Kingdom Nicola Claire Turville Belgium Canada China China Republic Of Serbia South Africa China Kiribati Kiribati Kiribati Kiribati Kiribati Indonesia China United States United States China China Indonesia Indonesia Indonesia China China China United States Philippines China United States Grant Stephen Budde Jiawen Zhan Falesa Toange David Biara Teratabu Bakanebo Mataba Teriki Mabubu Taenibela Winarto Wendong Wang Shirley Parker Jackson Alma De Wayne Jackson Xixue Yang Mawei Lin Sanusi Remon Pranyoto Sultoni Guojin Li Zhongjian Pan Changtuan Zheng Eric Paul Schwing Mallari Songpo Guo Ikaia Kalei O Keola Nawahine Annie Elizabeth Pyne Bhupesh Chandra Little Pattividanelqebandula Karunatilaka Sharad Kumar Mathur Subhasish Ganguly Zhiqiang Guo PWLS1301165 PWLS1301237 China New Zealand Kai Wang Antonio Junior Tu'i Motuliki PWLS1301238 PWLS1301365 PWLS1301382 PWSN1301405 PWLS1300375 PWLS1301227 PWLS1301228 PWLS1301229 PWLS1301232 PWLS1301233 PWLS1301234 PWLS1301235 PWLS1301236 PWLS1301551 PWLS1301683 PWSN1301880 PWSN1301901 PWSS1300431 PWSS1301562 PWSS1301814 PWSS1301876
 PWSS1301710 PWSS1301770 PWSS1302822 PWSS1301811 PWSS1302068 PWLS1302202 DWLS1300059 DWLS1300061 DWLS1300062 DWLS1300063 PWSN1302635 PWSS1302163 PWSS1302385 PWSS1302467 PWSS1302487 PWSS1304127 PWSN1302634 PWSN1302781 PWSS1302711 PWSS1302762 PWSS1302778 PWLS1300224 United States China China Tunisia China United States New Zealand Kiribati United States United States United States United States United States United States China South Africa France United States United States Australia Australia Canada China New Zealand Australia China China India India India India New Zealand China New Zealand Philippines China China United Kingdom South Africa China China China China Megan Emily Wright Tiangang Sun Zhitao Zong Selim Souissi Yun Li Shaun Kimball Morgan Makiha Moka Kantabu Moantewa Jarom Kimball Wall Kara Elizabeth Trammell Devon Jedediah Tenney Joseph Roy Tafunai Aaron Jason Peery Evelina Sooto Chaoda Zhong Jeffrey Stephen Gush Christelle Claude Jeanne Huet Peter Malvin Leininger Kenneth Stewart Ward Rodney J Lahrs Jill Denise Cuthbertson Marie Pia Fazio Bing Li Frank Andrew Van Der Sluys Amanda Joan Thompson Liang Shan Shitong Li Manju Gupta Durga Giri Devaguptapu Hiranya Devaguptapu Hiranmai Devaguptapu James Richard Davies Jianhua Zhao Johanna Michelle Forrest Abraham Agas Yuzhe Tian Yongdi Chen Lynn Mccowan Mohamed Coolam Hoosen Cassim Aicheng Liao Haiyang Tao Jianfeng Mo Jian Li PWLS1300926 PWLS1301019 PWLS1301020 United States India Sri Lanka PWLS1301021 PWLS1301269 PWLS1301513 India India China Ministry of Defence, National Security & Immigration Section 06: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWLS1300540 PWLS1301160 PWLS1301620 PWLS1301621 PWLS1301800 PWLS1301949 PWLS1301950 PWLS1301951 PWLS1301952 PWLS1301953 PWLS1302058 PWLS1302079 PWLS1302080 PWLS1302193 PWLS1302275 PWLS1302818 PWSS1302653 PWSS1302880 PWSS1303041 PWSS1303261
 PWLS1301907 PWSL1301749 PWSN1302763 PWSN1303053 PWSN1303054 PWSN1303082 PWSS1303262 PWLS1301829 PWLS1302782 PWSS1302875 PWSS1302703 PWSS1302791 PWSS1303155 PWLS1301744 PWLS1301745 PWSN1303206 PWSN1303207 PWLM1389885 PWLS1303538 PWSN1303111 PWSN1303114 PWSN1303181 PWSN1303388 PWSS1303307 PWSS1303362 PWSS1301889 Sandi Guo Wenfeng Lyu Huatai Jiang Huafeng Mai Yunpeng He Guoping Zhang Slamet Efendi P Hendro Purwanto P Tiar Jatnika Sunjana P Warman P Wayono Wayono Suwardi Joko Susanto Tajudin Tajudin Qinghe Zhang Ronghui Jiang Geoffrey Charles Lawrence China China China China China China Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia China China Australia China China Australia China India Guiping Wang Quanfang Luo Knox Coco Cullen Zhaokai Ti Rameshchandra Juthalal Unadkat Joakim Sven Zetterberg Christina Irene Spillane Rajiv Krishna Pai Uma Shankar Gupta Shaofu Chen Zhidou Ma Sulav Pradhanang Josephine Jane Olver Gouyan Zhao Cameron Colin Milliken United Kingdom Australia Australia India United Kingdom Ross Ziegelmier China China Nepal Canada China Australia United Kingdom Noel Thomas Lawlor John Stephen Kauta Malawi Mark Charles Meirs United States Miguel Echevarria Sese Spain Jie Wang China Dsfaf Sri Lanka Frances Lesley Parker Australia Michael Ronsley Parker Australia Nelson Olatunde Oladiji Nigeria Jeroen Van Bilsen Netherland Te Lin Tsai Taiwan, Province Of China Philippines Kiribati Jose Dena Tekinene Tetabo PWSS1301895 PWSS1301896 PWSS1303255 PWLN1301820 PWLN1301821 PWLS1303398 PWSS1303387 PWLS1303683 PWSS1303192 PWSS1303193 PWSS1303478 PWSS1303643 PWSS1303644 PWSS1303677 PWSS1303680 PWSS1303733 PWSS1303734 PWSS1303782 PWLS1302141 PWLS1303673 PWLS1303838 PWSS1303640 PWSS1303820 PWSS1303846 PWLS1301231 PWLS1302153 PWLS1302154 PWLS1302391 PWLS1302392 PWLS1302393 PWLS1302524 PWLS1302525 PWLS1302526 PWSN1302389 PWSN1302399 PWSS1303943 PWSS1304650 PWLS1301975 PWLS1303389 PWLS1303391 PWLS1303393 PWLS1301974 Kiribati Kiribati Australia
 Ireland Malaysia China Sri Lanka Sri Lanka China China China Sri Lanka Raoboia Iareta Taatau Urio Luke Wyley Patrick Padraic Sicora Harcharan Singh Shishuang Du Mudiyanselage Galapitagedara Nimal Kumar Attanayake Kiwon Shim Sdfasf Dsfvf Xiuxiu Yu Nannan Zhang Ziyuan Xiong Aranjan Lionel Karunanayake Julie Margaret Papps Singh Kanwaljeet Mandeep Goswai Xiaobin Lin Fei Yan Sirkka Beatriz Killmann Kisione Wesley Finau Guangqiang Lin Australia India India China China Germany, Fed.
Rep Of Republic Of Korea Tonga China United Kingdom Christopher John Daniel Australia New Zealand United States Tara Garrood Sarah Marie Collinson Sylvia Summer Kamakanoenoe Crowell Beverly Ray Walker United States Sazanne Challis Limburg United States Arthur Patrick Kiribati Tangiraua Kaioka Kiribati Boboia Berenato Kiribati Tom Timom Kiribati Ioane Kabeti Kiribati Raratu Tinou Kiribati Kim Robert Hudson New Zealand New Zealand Pauline Beth Ireland United Kingdom Susan Joan Kearton Zimbabwe United States Dakarai Prince Manjonjo Nelson Ryan Vasconcellos Indonesia Indonesia Indonesia United States Sumito Karyono Nasori Melissa Maggie Vasconcellos Ministry of Defence, National Security & Immigration Section 06: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWLS1302156 PWLS1302696 PWLS1302697 PWLS1302698 PWLS1302783 PWLS1303701 PWSL1302813 PWSL1303376 PWLS1304206 PWSN1303885 PWSN1303886 PWLS1303462 PWSN1302026 PWSS1304236 PWSN1304297 PWLS1302844 PWSN1302382 PWLS1304323 PWLS1304427 PWLS1304464 PWSS1304372 PWSS1304373 PWLS1304627 PWSN1304371 PWSS1304538 PWSS1304539 PWLS1301658 PWLS1302155 PWLS1302460 PWLS1302461 PWLS1303149 PWLS1303150 PWLS1303294 PWLS1303311 PWLS1303372 PWLS1303373 PWLS1303678 PWLS1303729 PWLS1303950 PWLS1303951 PWLS1304095 PWLS1304096 PWLS1304097 PWLS1304344 PWLS1304363 PWLS1304404 PWLS1304405 United States Indonesia Indonesia Indonesia United States China India New Zealand Sri Lanka Italy Australia Indonesia Japan Nepal New Zealand China Japan China New Zealand China China China China Japan China China France United States Philippines Philippines Indonesia Indonesia Tonga Germany Bangladesh New Zealand New Zealand Australia Indonesia Indonesia China Indonesia Indonesia Philippines Indonesia China China Lee Ren L Walker Nurapriyana Alik Saepudin Deden Aripin Dede Robert David Epstein Fengli Li Mohan Rao Daulath Rao Ryan Arthur Scott Sdfsaf Dsfasfds Mirka Caselli Sajeda Ashika Singh
 Asep Tatang Muhyidin Yuki Jimbo Sulav Pradhanang Ryan Alexander Bergman Xuekang Yu Reiko Takahashi Yili Xu Mark Brough Sims Bin Bin Chen Xingguo Ma Ying Wang Changchun Li Yuki Jimbo Shuling Han Yin Deng Melodie Hinaraurea Tuahivaatetonohiti Patricia Kathleen Newsom Jhondee Fernandez Garry Osal Nasroh Muhammad Supriono Sione Paea Manfred Ernst Al Mamun Kabir David Robert Aitchison Madhumita Bhattacharya Carl Howard Mooney Tosiron P Riski Pahrudin P Xijiang Wang La Ode Muhammad Sadam P Aep Saepul Rohman P Arniel Paradero Canillo Bambang Cipto Guode Li Yakui An PWLS1304440 PWLS1304728 PWLS1304768 PWSN1304537 PWSS1304007 PWSS1304293 PWSS1304307 PWSS1304610 PWLS1303034 PWLS1303073 PWSS1304576 PWSS1304704 PWLS1305029 PWLS1305019 PWSS1304855 PWSS1304997 PWLN1305078 PWLS1302189 PWLS1301890 PWLS1301892 PWLS1301893 PWLS1301894 PWLS1303641 PWSS1305046 PWSN1304365 PWSN1304705 PWSN1304797 PWSN1304798 PWSN1304799 PWSS1304086 PWSS1305171 PWSS1305183 PWSS1305195 PWSS1305200 PWLS1302625 PWLS1302626 PWLS1304273 PWLS1304661 PWLS1304689 PWLS1304690 PWLS1304691 PWLS1304739 PWLS1304740 PWLS1304790 PWLS1304791 China Australia Republic Of Korea Australia China Australia Australia Australia India India United States China India India China Australia Zhiqiang Peng Karen Elva Phillips Ross Seong Hyeon Kim Mark Anthony Landy Zhiwen Lin Simon Andrew Hendel Lok Yin Evelyn Cheng Kara Jane Campbell Jaya Vasudevan Suseela Konoorayar Konoorillam David Richard Zoellner Shengli He Babu Nadappilly Raman Bangkit Trio Laksono Liming Zhou Ezra David Mathew Williams Testing Bond Refund Robert John Arril Arawatau Mouata Raomati Taakam Titau Raurenti Botiko Ajantha Wijesinghe Perera Laura Jane Houlihan Sri Lanka Canada Kiribati Kiribati Kiribati Kiribati Sri Lanka Ireland United Kingdom Ronald Thompson India Boovaragavan Shanmugamoorthy Heather Elizabeth Pacey United States United States Daniel James Bowling United Kingdom Simon Alexander Hall Dompor Elisa Bongato Philippines Thomas Andrew Westgarth New
 Zealand New Zealand New Zealand Indonesia Indonesia Indonesia China China China Philippines Philippines Philippines Philippines China China Francis Maximan Butler Ross William Harper Hadi Pawazir Muhamad Akbar Mailani Di Zhang Junsheng Wang Longming Lin Jerry Tampos Alburoto Daniel Palomar Suarez Zosimo Heredero Gene Inguillo Chongqian He Chao Wei Ministry of Defence, National Security & Immigration Section 06: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWSN1305047 PWSN1305379 PWSN1305037 PWSN1305362 PWSN1305363 PWSN1305488 PWSS1304781 PWSS1304782 PWSS1305185 PWSS1305201 PWSS1305203 PWSS1305480 PWLS1304745 PWLS1304750 PWLS1304751 PWLS1304752 PWLS1304753 PWLS1304754 PWLS1304755 PWLS1304757 PWLS1304758 PWLS1304761 PWLS1304762 PWLS1304763 PWLS1304766 PWLS1304767 PWSN1305204 PWSN1305206 PWSL1305121 PWSL1305144 PWSS1300167 PWSS1305506 PWSS1305423 PWSN1305782 PWSS1304653 PWSS1304990 PWSS1305324 PWSS1305431 PWLS1303856 PWLS1304298 PWLS1304359 PWLS1304360 PWLS1304361 PWLS1304362 PWSS1305438 United Kingdom John Alexander Hughes Nuttal Regis Darricau France Wilson George Hamilton New Zealand Jack Niko Vanuatu Jean Kaltact Vanuatu Lee Smith United Kingdom Xingcha Huang China China Li Zhang United Kingdom George Henry Louis Jermy Shenghong Ni China Li Li China Mathew Russell Fleming New Zealand Ryland Johnson United States Joseph Cole Painter United States Seth Pita Po Ona New Zealand Daniel Tyler Pulli United States Drayvin Richard Raju Canada Courtney Carol Ann Rich United States Leroy Sitake Tanoai United States Maafi Joe Utaileuo Australia Taavao Junior Vole New Zealand Isaac Thomas Brouwer New Zealand Caleb Verl Brower United States Kiara Chong United States Riley Makan Higa United States Gabriel Hosea United States Jennifer Sarah Scott United Kingdom Paul Muchada Makumbe New Zealand Theresa Lea Gortan Australia Japan Chisato Fukuda United Kingdom
 Christine Coard Sri Lanka Lakshapathi Vidanalage Anton Nishantha Oscar De Mel China Australia United Kingdom Sri Lanka Tuvalu Nigeria United States India United States United States United States United States Pakistan Chi En Hung Aaron James Young Iling Kuo Jayantha Udaya Weerasinghe Luke Paeniu Gentility James Akpogbdi Fredric Christiansen Akash Dutt Dubey John Edward Collins Truman Myers Leishman Carol Leishman Joyce J Collins Hamza Malik PWLS1303611 PWLS1303858 PWLS1303883 PWLS1303960 PWLS1304294 PWSS1305914 PWSS1306111 PWSS1306143 PWSS1306190 PWLS1303639 PWSS1305967 PWSS1306150 PWLS1302370 PWLS1306439 PWLS1306549 PWLS1306569 PWSN1306216 PWSN1306218 PWLS1305042 PWLS1300477 PWLS1304770 PWLS1306585 PWLS1306586 PWLS1306643 PWLS1306649 PWSL1305880 PWSL1306481 PWSS1306445 PWSS1306465 PWSS1306601 PWSS1306602 PWSS1306603 PWSS1306604 PWSS1306605 PWSS1306606 PWLS1302739 PWLS1306739 PWLS1303035 PWLS1303038 Zhongguo Zhou Kathy Christiansen Sione Silongo Uluilakepa Yi Liu Akash Dutt Dubey Dipen Asvin Raniga Shaomin Zhou Wenjuan Li Haozhou Weng Rashmi Yadav Luming Sun Lynn Marie Pieper Santoso Santoso Luis Enriques Izaza Avila Daniel Louis Buck Hongliang Cong Hope Yvie Gaze China United States Tonga China India India China China China India China Australia Indonesia Mexico United States China Australia United Kingdom Samuel Paul Robertshaw Canada Australia Philippines China China Australia China Republic Of Korea United States France China China China China China China China Australia India India Sri Lanka Leigh Elizabeth Stewart Julie Leze Zhenxia Feng Jianhua Chen Haimin Ma Changxiao Xu Tiande Xu Qianjiang He Zhifang Shou Wendy Ann Draayers Akash Gupta Lokanath Mishra Mudiyanselage Galapitagedara Nimal Kumar Attanayake Marie Pia Fazio Scott James Macdonald Rayblas Conanan Quanhong Wu Bing Zhang Mark Komene Libin Tang Jang Po PWLS1303836 PWLS1304654 PWLS1304746 Indonesia Samoa Samoa PWLS1304748 PWLS1304749 PWLS1304756 France New Zealand Australia Mamur Khasani Desmond Uelese
 Amosa Daniella Manusavaii Ulusele Teraina Mataoa Dannica Irene Manga Saz Tonumaipe A Ministry of Defence, National Security & Immigration Section 06: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWLS1304759 PWLS1304760 PWLS1304764 PWLS1304765 PWSN1306362 PWSS1306540 PWSS1306743 PWSS1306757 PWSN1306775 PWSN1306776 PWSS1306561 PWSS1306562 PWLS1302196 PWLS1302197 PWSS1306685 PWLS1302815 PWLS1302819 PWLS1306482 PWLS1306921 PWSS1306746 PWSS1306950 PWLS1307261 PWSN1307059 PWLS1303037 PWSS1307190 PWSN1307139 PWSN1307158 PWSN1307238 PWSN1307358 PWSN1307583 PWSS1307332 PWSS1306994 PWSS1307494 PWLS1304969 PWLS1304970 PWLS1304971 PWSS1306800 PWSS1306972 PWSS1307124 PWSS1307125 PWSS1307126 PWSS1307127 PWSS1307128 PWSS1307129 PWSS1307130 PWSS1307133 Samoa United States United States United States Morocco Australia New Zealand Italy Australia Australia Australia Australia Australia Australia United Kingdom Steven Charles Arthur Tofiga Alofoe Kendal Rodney Banks Kaden Lane Day Adam Lee Henrickson Miriam Benslimane John Maurice Southwood Charlton Chang Tuiloma Federico Atzeri Geoffrey Greville Cooper Mark W Tregurtha Joel Shane Dawson Cydney Ann Atkins Robin Damien Mckenzie Jennifer Dawn Mckenzie Walker Lesley Carmen Lens Jie Wei Testing Test Qiangzhen Fan Gary John Martin Karl Osterreich Zhixing Chen Sandro Zellweger Yulia Tsepeleva Australia China Australia China New Zealand Austria China Switzerland Russian Federation Australia India Australia United Kingdom Stephen Frank Weller New Zealand Jane Alexandra Blakston Mahendra Saini Peter Glen Nolan Christian Andrew Burtscher Renato Purgatorio Glenn Wayne Browne Rudy Tablate Zhizhao Zheng Qiao Hu Yongsheng Gai Fuhong Li Gianni Bozzato Iis Kadarisman Ben Adam Richardson Christopher Seth Nelson Evashen Govender Francis Joseph Smith Gregory John Turton James Thomas Moses Jared Stickland Quinn Ian Robinson Philippines
 New Zealand Philippines China China China China Italy Indonesia New Zealand New Zealand South Africa New Zealand New Zealand New Zealand New Zealand New Zealand Ministry of Defence, National Security & Immigration PWSS1307138 PWSS1307140 PWSS1307517 PWSS1307041 PWSS1307042 PWSS1307194 PWSS1307286 PWSS1307288 PWSS1307316 PWSS1306447 PWSS1307314 PWSS1307131 PWSS1307132 PWSS1307136 PWSS1307137 PWSS1307141 PWSS1307492 PWSS1307648 PWSN1306473 PWSS1307477 PWSS1307487 PWSS1307745 PWLS1307150 PWLS1307233 PWLS1307974 PWSN1306906 PWSN1307668 PWSN1308279 PWLS1308294 PWSS1307300 PWSS1307984 PWSS1308172 PWSS1308185 PWSS1308273 PWSS1308274 PWSS1308275 PWSS1308297 PWSM1352156 PWSN1308219 PWSS1307577 PWSS1308058 PWSS1308283 PWSS1308371 PWSS1308373 PWSS1308542 Vernon Walker Corbin Gilbert Hart Liying Zhang Li Yang Yan Li Wei Chen Yan Li Yongzhi Guo Bin Gao New Zealand New Zealand China China China China China China China United Kingdom Ciara Luke Zheng Sun China John Desmond Hinton New Zealand Mason Richard Cowin New Zealand New Zealand Ryan Matthew Colthurst United Kingdom Simon Peter Marrs Aaron John O Brien New Zealand Jack Matthew French Australia Lifang Huang China Adrian Bernard Hickey Australia Kirean John Rabbitt Ireland Merriam Toalak Seth Vanuatu Meifeng Chen China Sanath Kumara Sri Lanka Ranathunga Arachchige Don Erman Kablama Benjamin Arthur Coutman Dylan Burgers Ying Shen Gurpreet Singh Dhillon Colin Charles Shelly Dipak Bahadur Singh Ying Han Sohail Zafar Edwin George Mee Uchenna Emelike Chinonso Nwankwo Paul Abejegah Steven James Airey Nishihara Nana Elysha Janne Hoyland Dorji Wangay Yinglin Tan Ashok Srinivasan Chieon Lee Unknown Australia South Africa China India Australia Nepal China Pakistan New Zealand Nigeria Nigeria Nigeria New Zealand Japan New Zealand Bhutan China India Republic Of Korea Australia United Kingdom Felix Sebastien De Paul Wright Wattripont Section 06: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014
 ____________________________ Permit No Country Full Name Permit No Country Full Name PWSS1308555 PWLS1306438 PWSS1308269 PWSS1308377 PWSN1308303 PWLN1306941 PWSN1308056 PWSN1308223 PWSS1308218 PWSS1308541 PWSS1308545 PWSS1308662 PWSS1310662 PWLS1304972 PWLS1307978 PWLS1308041 PWLS1308042 PWSS1308556 PWSS1308803 PWSS1308794 PWSS1308795 PWLS1307434 PWSL1308891 PWSN1308088 PWSN1308667 PWSS1308788 PWSN1308611 PWSN1308612 PWSN1308668 PWLL1304946 PWSN1308670 PWSS1309040 PWSS1309047 PWSS1309054 PWSL1308398 PWSL1309084 PWSN1306931 PWLS1309202 PWSS1308845 PWSN1308132 PWSN1309003 PWSN1308947 PWSS1308781 New Zealand India Republic Of Korea Sri Lanka Italy Tunisia China United Kingdom United States China China Pakistan Indonesia China Indonesia Indonesia Indonesia New Zealand China China China New Zealand Canada Australia China Australia Spain Nepal New Zealand Sri Lanka Liam Keith Cumberpatch Veejendra Kumar Yadav Taehwan Yoon Mapalagama Laleendra Senaka Kumarage Elisa Fusi Yassine Ouled Dlala Menggai Li Joanne Teresa Goodall Geoffrey David Deutschmann Delei Qiu Xianqin Zhu Javed Arshad Soni Gang Ren Hidayat P Kasirun Suleman Hugo William Gainor Jackson Maomao Sun Yanjie Wan Hui Liu Nirmala Devi Nath Victor Vishal Sharma Charmaine Yvette Tale Yang Yu Anthony Richard Healy Marco Vargas Guerrini Shailesh Kumar Gyawali Kim Robert Hudson Indika Menal Gankandage Don Guiying Ye Guiping Ye Lisa Mamone John Carl Raynar Rakesh Sharma Ningning Li Mathew Buckley Allan United Kingdom Ben Charles Cornick China China Australia United States India China New Zealand United Kingdom Samantha Beverley Revell New Zealand China United States Australia Andrew Hugh Griffiths Xiaomei Zhang Bern Hans Endres Ashwin Benjamin Maharaj Deo Zhenyu Chen PWSL1309359 PWSL1309360 New Zealand New Zealand PWSL1309361 PWSL1309362 PWSL1309363 New Zealand New Zealand New Zealand PWSN1309255 PWSN1309369 South Africa South Africa Nathan Timothy Rogers Joseph Bernard Michael Johnson Aaron Gordon Chatfield Daniel
 William Ross Laird Nooroa O Tere Tipuia Ki New Zea George Ian Shipman Stephen Hermanus Lemmer Sandra Lee Harper Brian Alcantara Zeeshan Riaz Cherie Reyes John Wesley Lawrence Barry John Carroll Subhendu Koner Xueping Jiao I-Ling Kuo Cynthia Cook Testing Hello Tstone Ranveer Singh Gill Jun Yu Lei Yu Xiaolin Lin Hengzi Ren Michael Mjaskalo Liguo Wang Riyanto Narito Tarmudi Warto Yoichi Sakaguchi Joshua Andrew Greene Fenghuan Lu Michael Leon Weiss Guoming Cheng Campbell Thomas Diack Miguel Mapilisan Peralta Genaro Merrero Balitbit Benjie Recto Canaveras Elmer Ancheta Tagudin Renato Tolentino Magno Australia Philippines Pakistan Philippines United States New Zealand India China Uk - National United States Australia India China China China China Australia China Indonesia Indonesia Indonesia Australia Australia China United States China New Zealand Philippines Philippines Philippines Philippines Philippines United Kingdom Douglas Alexander Shannon Duvosin Chad Joseph Murphy Mohannad Gouse Gaffar Jose Bol Jeffery Peter Allen Stephen Neil Laffey United States India Netherland United Kingdom Australia PWSN1309496 PWSS1308785 PWSS1309071 PWSS1309256 PWSS1309321 PWSS1309371 PWSN1309473 PWSS1309547 PWLS1306759 PWLS1308790 PWLS1309747 PWSN1309405 PWSS1309131 PWSS1309132 PWSS1309574 PWSS1309810 PWSS1309795 PWLS1309546 PWSS1309420 PWSS1309421 PWSS1309422 PWSS1309460 PWSS1309685 PWSS1309790 PWSS1309886 PWSS1309885 PWSN1309402 PWSN1309996 PWSN1309997 PWSN1309998 PWSN1309999 PWSN1310000 PWSN1309523 PWSN1309528 PWSN1309631 PWSN1310006 PWSN1310007 PWSN1310206 PWSS1308888 China Ministry of Defence, National Security & Immigration Section 06: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWSN1311432 France PWSS1310115 PWSS1310220 PWSS1310147 PWLS1309410 PWLS1309411 PWLS1307810 PWLS1310591 PWLS1310648 PWSN1310366 PWSN1310367 PWSS1309618 PWSS1310335 PWSS1310557 PWSS1310558
 PWSN1310233 PWSN1310266 PWSN1310267 PWSN1310268 PWSS1310616 PWSN1310269 PWSN1309316 PWSS1310563 PWSS1304998 PWSS1310772 PWLS1310976 PWSN1310672 PWSN1310712 PWSS1310844 PWSS1310848 PWSS1310340 PWSS1310711 PWLN1308903 PWLS1307747 PWLS1307919 PWLS1307920 PWLS1307921 PWLS1307922 PWLS1307923 PWLS1307925 PWLS1307926 PWSN1310761 PWSN1310800 PWSS1310835 PWSS1310836 PWSS1311113 PWSS1310372 PWSS1310864 Australia Tonga China China China China Australia Australia South Africa Spain Dean Swaagman Sulieti Malia Nive Havea Jintang Zhong Qizhou Xian Gang Yuan Shiyang Fu Testtttt Testing Testtttt Testing Jacques Louw Maria Cruces Truan De Pineda Sirilak Tansiri Thailand Athula Weerasingha Sri Lanka Qingjun Zhuang China Biao Xiang China Gagandeep Singh Gill India Paul Kenneth Tyers Australia Johan Martin Svan Sweden Italy Vincenzo Tremante United Kingdom Alistair Keith Miles Ian Graham Davies United Kingdom Jajhar Singh India Youlian Zhou China Jessica Sara Hawthorne United States Xin Wei China Dulce Deasa Philippines Kristiana Daugava Latvia Stephane Hiromi Regner Canada Qingxiang Qiu China Jenny Harry Papua New Guinea China China India China China China Indonesia Indonesia Indonesia China Indonesia India France Australia Australia China China New Zealand Yan Liu Shaomin Peng Vishwa Nath Maurya Zhirong Lin Dengfeng Wang Wang Nurma Relianto Jumaedi Jaka Setiawan Xu Purwanto Mohannad Gouse Gaffar Franck Michel Billion Angus Stewart Rowe Johanna Ruth Clapper Jian Zhou Lin Zhang Stephen Allen Wright PWSS1311444 PWLS1306859 PWLS1306860 PWLS1309094 PWLS1309870 PWLS1310405 PWLS1310406 PWLS1310407 PWLS1310455 PWLS1311072 PWSS1311216 PWSS1311217 PWSS1311470 PWSS1311504 PWLS1306518 PWLS1307428 PWLS1307429 PWLS1307499 PWLS1310108 PWLS1311560 PWSN1311255 PWSN1311256 Alexandre Marie Bruno Putois Jianhua Zhao Hongwei Zheng Caswanto Puji Muamar Baoqing Li Shaozhang Wu Mugiran Nasir Ridho Sudanto Tara Garrood Zhuangwei Zhai Siyu Chen China China China Indonesia China China Indonesia Indonesia
 Indonesia Indonesia Australia China Solomon Islands Sri Lanka Aranjan Lionel Karunanayake Keqi Sun Zishan Tian Bingjun Qu Chao Liu Chongjun Bi Dezhi Liu China China China China China China United Kingdom Rosemary Clare Fisher United Kingdom Edward Charles Lancelot PWSN1311306 United States Davidson Brett Christopher Freedom Ryan PWSN1311465 PWSN1311467 PWSN1311468 PWSS1310130 PWSS1311148 PWLS1310777 PWLS1311606 PWLS1311615 PWLS1311661 PWLN1311147 PWLN1311149 PWLN1311150 PWLS1308278 PWSS1311471 PWSS1311624 PWSS1311626 PWSS1311757 PWSS1311824 PWLS1308276 PWLS1307259 Verena Blanchet Emma Louise Olsen Ling Ye Greggy Tibang Toetu Tuia Keith Alan Nicholson Amanda Susan Kennedy Singh Harpreet A B M Shawkat Ali Mizhang Xiao Richard Kevin Coll Zhanjie Li Xia Li Awais Malik Germany Australia United Kingdom Benjamin John Pearcey China Philippines Samoa United States New Zealand India Australia China New Zealand China China Pakistan United Kingdom Rowena Johnson China China China China Meili Zhu Xiuwen Zheng Wenjie Lin Chongyang Ju Ministry of Defence, National Security & Immigration Section 06: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Country Full Name Permit No Country Full Name PWLS1311389 PWLS1311517 PWSS1311625 PWSS1311722 PWLS1304417 PWLS1309573 PWLS1309575 DWC1300064 DWC1300066 PWLL1302705 PWLN1301659 PWLN1307281 PWLS1300376 PWLS1301758 China China New Zealand Philippines Republic Of Korea United States New Zealand India India India Australia Republic Of Korea Australia India PWLS1303850 Australia Fulin Zhang Loqoang Zhou Wayne Melville Annan Abraham Agas Pyeong Il Yang Shandon Dion Sidebottom Shaun Laurence Glasier Parthiv Ganguly Jayashree Ganguly Phanindra Garikipati Mark Stewart Murgida Giha Woo Kieran James Kamleshkumkar Chhotalal Purohit Sdfadf Test Pplication PWLS1304786 United States Albert Alain Ouaknine PWLS1311030 Australia Mohammed Irfan Siddiqi PWLS1311568 Australia PWSN1302033 New
 Zealand Preston John Sydney Miskelly Malcolm Andrew Herbert PWSS1300041 PWSS1300728 Spain New Zealand Roberto Gea Cabrera Anthony Francis Caffell PWSS1304128 PWSS1305978 PWSS1305979 PWSS1305980 PWSS1305981 PWSS1305982 PWSS1306147 Nigeria China China China China China Australia Henry Uche Asonibe Kuigang Shou Jianhua Chen Zhifang Shou Haimin Ma Qianjiang He Melanie Jane Underwood Tonga Melelua Faletele Veituna Ministry of Defence, National Security & Immigration Section 06: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 6.4: Ambiguous System Data for Local Addresses Permit No Vapp Date Issue Date Exp Date Passport No Country Surname Full name Sex Birth Date Address In Fiji 6/21/13 11/22/13 3/31/14 LA425709 11/19/13 11/28/13 5/10/14 N2339606 New Zealand Australia Ludlow Brennan 11/26/13 11/29/13 11/29/16 084595 1/1/13 1/1/13 1/1/15 N7329271 Solomon Islands Australia 9/17/13 9/24/13 3/17/14 9/11/13 9/30/13 3/31/14 9/11/13 9/30/13 3/31/14 9/11/13 9/24/13 3/2/14 7/26/13 4/22/13 2/19/14 8/6/13 8/17/13 2/17/14 6/14/13 6/26/13 12/26/13 6/25/13 6/26/13 12/26/13 9/30/13 10/8/13 12/30/13 LN451372 467963926 South Africa New Zealand New Zealand New Zealand India LH045828 LN396958 K1802606 301740075 Taiwan, Province Of China 563130438 Republic Of Korea New Zealand India LA425709 J6932121 6/19/13 6/26/13 12/19/13 F4065196 India Rajalingam 4/1/13 4/1/13 10/1/13 E3003883 Australia Jalijali Robert Leonard Ludlow David Christopher Brennan Beverly Itea Itea Korare Dianne Korare Stebbing Gibbons Armstrong Ironside Shah Chung Rochelle Ashton Stebbing Richard Stephen Gibbons Ross Neil Armstrong Andrew Paul Ironside Sameer Mahendra Shah Chia-Chen Chung Wi Jong Chol Wi Ludlow Petchy Robert Leonard Ludlow Praveen Kumar Petchy Sambathkumar Rajalingam Eduardo Jalijali M M F F F M M M M M M M M M M F M M M F M 11/1/1986 NZL 6/17/1981 AUS 3/28/1991 3/30/1948 1/15/1982 10/8/1964 SOLOMON ISLANDS 19 MARCO POLO ST ESSENDON 3040
 VICTORIA AUSTRALIA SOUTH AFRICA NZL 1/8/1955 NZL 2/21/1986 NZL 12/5/1978 IND 7/29/1989 TWN 4/11/1972 KOR 11/1/1986 NZL 4/2/1979 INDIA 3/9/1985 INDIA 3/18/1958 8/9/1968 8 WOODRUFF COURT SANCTUAR Y LAKES VICTORIA AUSTRALIA CHINA 8/20/1979 AUSTRALIA CHINA 12/11/198 9 9/22/1963 10/7/1964 AUS 8/23/1979 GREECE 2/4/13 2/4/13 8/4/13 G32107592 China Zhang Guixiu Zhang 4/6/13 13:05 3/27/13 4/6/13 13:05 3/27/13 11/26/12 L4125603 Australia Ismail Asif Ismail 9/27/13 G54836900 China Luo Huan Luo 10/2/13 10/14/13 4/14/14 LN162244 New Wratt 11/5/13 11/8/13 5/4/14 12/5/13 12/17/13 6/17/14 Zealand M6676858 Australia Carroll AH258713 4 Greece Anagnostou Leslie James Wratt Lynette Jan Carroll Leonidas Anagnostou Ministry of Defence, National Security & Immigration Section 06: Page 39 PWLL13 02831 PWSN13 10172 PWLS13 10483 PWLM13 54195 PWSN13 07347 PWSS13 07134 PWSS13 07135 PWSS13 07123 PWSS13 04784 PWSL13 05113 PWSL13 02416 PWSN13 03047 PWSL13 08070 PWSL13 02639 PWLM13 56045 PWSM13 54286 PWSM13 69775 PWLM13 89059 PWSS13 08184 PWSN13 09577 PWSN13 10922 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Permit No Vapp Date Issue Date Exp Date Passport No Country Surname Full name Sex Birth Date Address In Fiji PWSS13 10839 PWLS13 08044 PWLS13 00812 PWLS13 01391 PWLS13 02176 PWLL13 02780 12/4/13 12/18/13 6/18/14 E10826953 China Xiao Xiaoyue Xiao F 11/4/1987 CHINA 9/30/13 9/30/13 10/9/15 G37402515 China Qin Yongzhang Qin M 6/13/1972 CHINA 5/22/13 6/4/2013 2/21/16 G37407500 China Qiao Xuetao Qiao 5/29/13 6/4/13 5/7/16 G36384248 China Yu Xiuling Yu M F 2/7/1963 CHINA 5/4/1988 CHINA 6/11/13 6/11/13 5/23/16 G20123879 China Zhang Jin Hong Zhang M 3/4/1972 CHINA 6/20/13 10/2/13 10/12/16 M2987481 8 Republic Of Korea Lee Ki Sun Lee F 5/2/1967 KOR (Same Indiviual - Different Permit Ids - Enquire) PWLS13 05792 PWLS13 01023 8/16/13 5/24/13 8/23/13 11/30/13 L5223240 India 9/17/13 11/30/13 L5223240 India Malik Malik Ravi Malik Ravi Malik M M 1/21/1948
 NASINU 1/21/1948 NASINU PWLS13 00295 5/14/13 N2157961 Australia Clarke Debra Leigh Clarke F 9/29/1963 PWLM13 56338 3/8/13 3/8/13 10/8/13 G37737981 China Wang Yingying Wang F 8/30/1977 217 GRAND PARADE, BONNELLS BAY, NSW 2264, AUSTRALIA CHINA Ministry of Defence, National Security & Immigration Section 06: Page 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 7 Ministry of Labour, Industrial Relations and Employment Role and Responsibilities The Ministry’s core responsibility is to pursue the attainment of decent work standards through; fair working conditions; stable and constructive labour relations; and an resource development and environment employment growth.
These responsibilities are achieved by focusing on developing an enabling environment supported by sound labour laws, policies and practices.
that encourages productivity, human Table of Contents 7.1 7.2 7.3 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.4 PART A: FINANCIAL STATEMENT .................................................................................................................................... 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 2 Trust Statement of Receipts and Expenditure ...................................................................................................... 2 Occupational Health and Safety Trust Statement of Receipts and Expenditure ................................................... 3 Child Labour Trust Statement of Receipts and Expenditure ................................................................................. 3 Employment Relations Trust Statement of Receipts and Expenditure ................................................................. 3 National Employment Centre Trust Statement of Receipts and Expenditure ....................................................... 4 Ministry of Labour Trust (WBC) Statement of Receipts and Expenditure ............................................................. 4 Appropriation Statement ....................................................................................................................................... 5 PART B: AUDIT FINDINGS ................................................................................................................................................. 6 Variance in Trust Fund Bank Account Balance ..................................................................................................... 6 Expenditure Ledger not maintained ...................................................................................................................... 7 Approving Local Purchase Orders above the Authorising Limit ............................................................................ 8 NEC Training Repayment Program ...................................................................................................................... 9 7.5 7.6 7.7 7.8 PART A: FINANCIAL STATEMENT 7.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Labour, Industrial Relations and Employment resulted in the issue of a qualified audit report.
The qualifications are as follows:  A variance of $485,641 exists between the trust fund cash at bank account balance and the trust fund liability account balance contrary to section 58 (3) of Finance Instructions 2010.

Therefore, the Trust Fund Account Statement of Receipts and Expenditure cannot be ascertained to be fairly stated.
 A variance of $427,280 exists between the trust fund cash at bank recorded in the general ledger and the cash at bank balance as per bank reconciliation, contrary to section 32 (6) of Finance Instructions 2010.

As such, audit was not able to ascertain that all receipts and payments have been accurately accounted and disclosed in the Main Trust Fund Accounts.
Management attention was also drawn to that the Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

It prepared its financial statements from the FMIS general ledger.

As a result, the audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.
Ministry of Labour, Industrial Relations & Employment Section 07: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 7.2 Statement of Receipts and Expenditure The Ministry of Labour, Industrial Relations and Employment collected revenue totalling $333 and incurred expenditure totalling $8,493,664 in 2013.
Table 7.1: Statement of Receipts and Expenditure for 2013 Descriptions RECEIPTS State Revenue Commission Total State Revenue Agency Revenue Miscellaneous Total Agency Revenue Total Revenue EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Purchase Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) 333 333 - - 333 3,028,453 152,727 286,934 346,160 915,217 29,193 3,077,981 7,836,665 - - 656,999 8,493,664 343 343 129,890 129,890 130,233 2,687,442 145,559 243,803 363,502 781,570 39,618 3,071,328 7,332,822 50,000 50,000 642,222 8,025,044 The total expenditure increased by $468,620 or 5.8% in 2013 compared to 2012 mainly due to the Revolutionary Labour Reform and the undertaking of the National Minimum Wages Reform.
This resulted in the increase in the number of established position from 133 in 2012 to 149 in 2013.

7.3 Trust Statement of Receipts and Expenditure The Ministry of Labour, Industrial Relations and Employment has five trust accounts: 1.

Occupational Health and Safety Trust Account (OHS) 2.

Child Labour Trust Fund (CLU) 3.

Employment Relations Trust Account (ERT) 4.

National Employment Centre Trust Fund (NEC) 5.


Ministry of Labour Trust Account (WBC) Ministry of Labour, Industrial Relations & Employment Section 07: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 7.3.1 Occupational Health and Safety Trust Statement of Receipts and Expenditure The OHS Trust Account collected revenue totalling $1,372,500 and incurred expenditure totalling $972,036 in 2013.
Table 7.2: OHS Trust Statement of Receipts and Expenditure for 2013 Descriptions RECEIPTS OHS Trust Fund Total Receipts PAYMENTS OHS Trust Fund Total Payments Net Surplus Balance as at 1 January Closing Balance as at 31/12/13 2013 ($) 2012 ($) 1,372,500 1,372,500 972,036 972,036 400,464 4,360,893 4,761,357 2,022,872 2,022,872 1,033,088 1,033,088 989,784 3,371,110 4,360,893 The total expenditure decreased by $61,052 or 5.9% in 2013 compared to 2012 mainly due to the decreases in the payments of project officers, vat and training for OHS staffs.
7.3.2 Child Labour Trust Statement of Receipts and Expenditure The CLU Trust Account collected revenue totalling $20,010 and incurred expenditure totalling $88,293 in 2013.
Table 7.3: CLU Trust Statement of Receipts and Expenditure for 2013 Descriptions RECEIPTS CLU Trust Fund Total Receipts PAYMENTS CLU Trust Fund Total Payments Net Surplus Balance as at 1 January Closing Balance as at 31/12/13 2013 ($) 2012 ($) 20,010 20,010 88,293 88,293 (68,283) 48,383 (19,900) 264,029 264,029 232,827 232,827 31,202 17,181 48,383 The total expenditure decreased by $144,534 or 62.1% in 2013 compared to 2012 mainly due to the decrease in expenses for the operation of the Child Labour Unit within the Ministry.
The decrease in expenditure was also due to the decrease in contribution from the International Labour Organisation.

7.3.3 Employment Relations Trust Statement of Receipts and Expenditure The ERT Trust Account collected revenue totalling $72,267 and incurred expenditure totalling $81,364 in 2013.
Ministry of Labour, Industrial Relations & Employment Section 07: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 7.4: ERT Trust Statement of Receipts and Expenditure for 2013 Descriptions RECEIPTS ERT Trust Fund Total Receipts PAYMENTS ERT Trust Fund Total Payments Net Surplus Balance as at 1 January Closing Balance as at 31/12/13 2013 ($) 2012 ($) 138,225 138,225 4,332 4,332 133,893 41,561 175,454 61,414 61,414 23,464 23,464 37,950 3,610 41,561 The total expenditure decreased by $19,132 or 81.5% in 2013 compared to 2012.
Expenses were incurred were mainly on bank fees.

7.3.4 National Employment Centre Trust Statement of Receipts and Expenditure The NEC Trust Account collected revenue totalling $138,225 and incurred expenditure totalling $4,332 in 2013.
Table 7.5: NEC Trust Statement of Receipts and Expenditure for 2013 Descriptions RECEIPTS NEC Trust Fund Total Receipts PAYMENTS NEC Trust Fund Total Payments Net Surplus Balance as at 1 January Closing Balance as at 31/12/13 2013 ($) 2012 ($) 72,267 72,267 81,364 81,364 (9,097) 499,881 490,784 1,307,120 1,307,120 1,046,903 1,046,903 260,217 239,664 499,881 The total expenditure decreased by $965,539 or 92.2% in 2013 compared to 2012.
Expenses incurred were mainly for work attachment allowances together with general administration of NEC staffs.

7.3.5 Ministry of Labour Trust (WBC) Statement of Receipts and Expenditure This account comprises of Wages Disputes, Workmen’s Compensation and OHS Consultancy.

The WBC Trust Account collected revenue totalling $3,589,805 and incurred expenditure totalling $3,116,039 in 2013.
Table 7.6: WBC Trust Statement of Receipts and Expenditure for 2013 Descriptions RECEIPTS Workmen’s Compensation Wages Dispute OHS Consultancy 2013 ($) 2012 ($) 2,113,278 578,467 898,060 1,451,607 220,938 527,596 Ministry of Labour, Industrial Relations & Employment Section 07: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Descriptions Total Receipts PAYMENTS Workmen’s Compensation Wages Dispute OHS Consultancy Total Payments Net Surplus Balance as at 1 January Closing Balance as at 31/12/13 2013 ($) 3,589,805 2,057,196 558,160 500,683 3,116,039 473,766 286,408 760,174 2012 ($) 2,200,141 2,203,560 207,329 455,082 2,865,971 (665,830) 952,238 286,408 The total expenditure increased by $250,068 or 8.7% in 2013 compared to 2012.
Expenses incurred were mainly for workmen’s compensation, wages dispute and OHS consultancy:  Workmen’s compensation – compensation that is paid to workmen and their dependents are first placed in the trust account before it is paid to them.

 Wages dispute – has the arrears of wages owed by employers to workmen.

These are first placed in the trust account before it is paid out to them.

 OHS consultancy – OHS officers usually carry out overtime for clients.
Overtime is paid into the trust account by clients and is later paid out to OHS officers.

7.4 Appropriation Statement The Ministry of Labour, Industrial Relations and Employment incurred expenditure totalling $8,493,664 in 2013 against the revised budget of $8,525,336 resulting in a savings of $31,672 or 0.4%.

Details of expenditures against the budget estimates are provided in Table 7.7.
Table 7.7: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Purchase Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 3,227,837 178,020 219,500 294,300 824,900 55,000 3,068,779 7,868,336 - - 657,000 8,525,336 Changes ($) (199,379) (25,248) 68,401 52,323 92,322 (25,806) 37,387 0 - - - - Revised Estimate ($) 3,028,458 152,772 287,901 346,623 917,222 29,194 3,106,166 7,868,336 - - 657,000 8,525,336 Actual Expenditure ($) Lapsed Appropriation ($) 3,028,453 152,727 286,934 346,160 915,217 29,193 3,077,981 7,836,665 - - 656,999 8,493,664 5 45 967 463 2,005 1 28,185 31,671 - - 1 31,672 Ministry of Labour, Industrial Relations & Employment Section 07: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ PART B: AUDIT FINDINGS 7.5 Variance in Trust Fund Bank Account Balance Each month, the trust account must be balanced and reconciled with the trust bank account.
The names and balances of each account must be listed and the responsible officer shall sign the reconciliation.

Un-reconciled items must be investigated and resolved promptly.1 The Ministry has five main trust fund bank accounts, namely, the Workmen’s Compensation, OHS, National employment Centre, Employment Relations Agency, and Child Labour.

The audit noted a variance of $485,641 exists between the trust fund account and the trust fund bank account balance in the general ledger.
In addition, a variance of $427,280 exists between the trust fund bank account balance in the general ledger and the cash at bank balance as per bank reconciliations.

Refer Table 7.8 for details.
Table 7.8: Fund Bank Account in GL Variance between Trust Fund Bank Balance as per Bank Reconciliation and Trust Trust Fund Workmen’s Compensation, Wages Dispute & Consultancy Services (9-07101-07003-520301) OHS (9-07101-07006-520401) ERT (9-07101-07010-520401) Child Labour (9-07101-07011-520401) Total Cash at Bank (FMIS) ($) 1,218,603.85 4,735,999.19 179,948.82 429.78 6,134,981.64 Cash at Bank Balance as per Bank Reconciliation ($) Variance ($) 1,524,703.22 306,099.37 4,849,776.50 187,357.42 424.78 6,562,261.92 113,777.31 7,408.60 (5.00) 427,280.28 The above indicates that the Ministry failed to reconcile the cash at bank general ledger balance to the bank reconciliation balance, resulting in the variances.
As a consequence, the Trust Fund Statement of Receipts and Expenditure for the financial year cannot be relied upon.

Recommendations  The Accounting Head should ensure that proper reconciliations are carried out between the general ledger and the bank records and any error or variance noted should be investigated and adjusted accordingly.

 The Ministry should investigate and adjust the above variance in consultation with Ministry of Finance.
Management Comment The variance issue is an on-going issue with the Ministry of Labour since 2009.

The Office of the Auditor General highlighted this matter while auditing the 2013 accounts.

There was no clear guideline or procedure on how to rectify and reduce the variances in previous years.
1 Finance Instructions 2010 – Section 58 (3) Ministry of Labour, Industrial Relations & Employment Section 07: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ It was queried by the Auditor General’s Office in 2009 and reflected in the Public Accounts Committee for 2014.

In 2009 the Workman’s Compensation, Wages Disputes and Consultancy Services variances was $89,445.01.

In 2013 the variance increased to $306,099.


Below are steps to be taken for variance to be adjusted in order to rectify this issue before it is taken to Ministry of Finance for the.
No Procedures 1 Verifying names of clients who had not been paid in past years Verifying client names in accordance with their corresponding account (W/C, WD, OHS Con); and is to clear UP cheques Advertise the names of clients who have not been paid in the newspapers (twice) Confirm the unpresented cheque numbers with the banks Void all cheques until last 6 months Update FMIS for reconciliation – with approval from the Auditor General.
PIC Atish Kumar Remarks Completed Viliame N Banuve Atish Kumar Viliame N Banuve Viliame N Banuve Viliame N Banuve Updating of UP list completed to 2010.

1 completed 30/06/14 up to MOF on Sent 30/05/2012 Await confirmation of section 4 (above) To be completed by August As for OHS, ERT and Child Labour, we have visited Ministry of Finance (FMIS – Luke) on Friday (30/05/2014) and who confirmed these accounts will be journalized by the Auditors.
This is to balance the General Ledger and the Bank Statement.

We have adjusted our Standard Operating Procedures (SOP’s) for reconciliation accordingly to rectify this problem.

Currently we are working with the Ministry of Finance in reconciling the smaller variances in the Trust Account.

Attached please find a format that was raised by MOF and will be forwarded to Auditor General for approval to balance this account.
7.6 Expenditure Ledger not maintained The Accountant and the AAO OHS shall enter details on payment vouchers in an Expenditure Ledger.

The ledger shall record: (i) (ii) (iii) (iv) (v) date of payment and name of payee; type and amount of payment; cheque and payment voucher number; expenditure account; cumulative totals.2 The audit noted that the Ministry does not maintain an expenditure ledger.

As a result, the Ministry could not reconcile the expenditure in the FMIS maintained by the Ministry of Finance.
The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

2 Ministry of Labour Finance Manual 2011 – Section 2.8.11 Ministry of Labour, Industrial Relations & Employment Section 07: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Ministry should:  maintain an expenditure ledger; and  reconcile its expenditure ledger with FMIS on a monthly basis.
Management Comment Your recommendation is noted.

We have opened an Expenditure Ledger for 2014 and will reconcile with FMIS at the end of each month.

7.7 Approving Local Purchase Orders above the Authorising Limit The following officers are delegated authority to procure goods, services and works up to the following limits specified.
Refer Table 7.9 for details Table 7.9: Delegated Authority Approval Limits Designation Permanent Secretary for Labour Deputy Secretary Headquarters Deputy Secretary OHS Manager Corporate Services Senior Accounts Officer Accountant Authorised Limit $50,0003 $10,000 $10,000 $5,000 $3,000 $1,000 Any officer who authorizes expenditure exceeding his/her procurement limits, including by splitting purchase orders shall be liable for surcharge to repay the unauthorized amount.
4 The audit noted instances where officers authorized local purchase order beyond their authorized limit.

Refer to Table 7.10 for examples.
Table 7.10: Local Purchase Orders approved Date Cheque Number Payee Details 05/08/13 34105 20/09/13 34546 20/05/13 33331 Gumatua Builders Gumatua Builders Holiday Inn Hotel Payment to Gumatua Builders as 50% advance payment for the construction of mini library and Minister’s cabinet Payment for the 2nd and last stage of work for construction of library, Minister’s cabinet and shelves Payment system for the road show for providing sound 25/10/13 34890 Fiji Airways Payment of air fare for Mr. Lim for SMC training in Suva Remarks LPO Amount ($) 12,500.00 The Deputy Secretary’s authorizing limit is $10,000 but he approved this LPO of $12,500 11,000.00 The Deputy Secretary’s authorizing limit is $10,000 but he approved this LPO of $11,000 4,950.00 The Senior Accounts Officer’s limit is $3,000 but he approved this LPO of $4,950 15,129.00 The Deputy Secretary’s authorizing limit is $10,000 but he approved this LPO of $15,129 3 Amended from $30,000 to $50,000 after the revision of the Procurement Regulations 2010 in July 2012 4 Ministry ‘s Finance Manual 2011 – Section 2.3.3 Ministry of Labour, Industrial Relations & Employment Section 07: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The approval of expenditure above authorized limits shows total disregard of regulations in place which could result in abuse of office and misappropriation of public funds.
Recommendations  The Senior Accounts Officer should ensure that procurements are approved by the delegated officer.

 The Ministry of Finance should consider surcharge as per Finance Manual.

Management Comment We would like to acknowledge the recommendation by auditors.

 Please note during this time the Permanent Secretary for Labour, Industrial Relations & Employment was unavailable due to his busy schedule and we have to provide commitments to our clients due to the urgency of the tasks.
 Please be advised that for cheque number 33331 of 20/05/2013 payable to Holiday Inn Hotel, the PO was initially approved by DSHQ on the FMIS however, the Senior Accounts Officer signed on the PO.

 On the payment of Fiji Airways via cheque number 34890 of 25/10/2013 amounting to $15,129.00 there was no PO prepared.

A direct payment was made due to Fiji Airways requirement as the trip was close to the end of the month.
 However, on our way forward, the 2013 Ministry of Labour Finance Manual, we have been adjusted for cater of this problem.

We have increased the limit for the two Deputy Secretaries from $10,000 to $25,000.
7.8 NEC Training Repayment Program An unemployed person whose employment status changes must inform the National Employment Centre of that change within seven days of the change.5 The NEC shall maintain case files for each NEC trainee including the MOU for repayment, details of the trainees training and updated into the database.
All NEC trainees under the Formal Employment Service, the Self Employment Service and the Foreign Employment Service who are current employees or candidates to whom an offer of permanent employment or employees serving a contract of 1 year or more or employees serving on appointment for more than 6 months with a prospect of conversion to permanent appointments, are required under section 45 of the NEC (Administration) Regulations 2010 to repay all outstanding fees owed to the Centre.
This repayment Programme is applicable to all unemployed persons who have registered under the NEC and have undertaken Professional Counselling, Aptitude Assessment, Life Skills Training, Employment Skills Training and Work Attachment including Business Attachment and have been absorbed into permanent employment.

The audit noted that the Ministry failed to maintain records of the total amount spent on trainings and allowances for which 50% will be refunded.
As at the date of the audit6, 104 clients who were registered under NEC and found permanent employment in 2013, failed to make 50% repayment to the Centre.
5 National Employment Centre Decree 2009 – Section 39 (3) 6 07 January 2014 Ministry of Labour, Industrial Relations & Employment Section 07: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The above findings indicate laxity by the Ministry to maintain up to date records to initiate 50% recovery.

This can lead to wastage of public funds.


Recommendations  The NEC administrators should keep proper records of all money owed to them through the NEC Training program.

 Prompt recoveries should be instigated against all clients who have exited the NEC training program and those who have find permanent employment.
Management Comment Recommendation is acknowledged with appreciation The NEC Secretariat handling of its resources is clearly stipulated under the Section 96 (2) and Regulation 14 of the NEC Trust Fund Regulations 2012.

At the moment we are drafting an enforcement policy to assist in implementing this section.

It is basically putting in place a system and process to comply with this provision.

We will be tabling this policy to the next NEC board meeting.
At the moment we are organizing a unit to conduct this recovery processes whereby to identify, sorting and calling the NEC clients that had absorbed into permanent employment.

We are liaising with Employers to assist in the enforcing of this policy.

To date in good faith, the NEC clients are coming forward to pay their dues as was highlighted during the Life Skill training programs and other NEC promotion activities.
Ministry of Labour, Industrial Relations & Employment Section 07: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Section 8 Ministry of Foreign Affairs and International Co-operation Role and Responsibilities The role of the Ministry of Foreign Affairs and International Co-operation is to lead the formulation and conduct of Fiji’s Foreign Policy.
Major outputs are still being delivered in the conventional foreign relations activities of global intelligence gathering, especially through Fiji Missions abroad and the conduct of attendant analysis and guidance in such policy options that would maximize Fiji’s national gains from strategic future directions.

Emerging dimensions in international relations have resulted in newer outputs through Summit Diplomacy, Group Diplomacy and the Information Technology media.
In recent years, there has been an increasing range of outputs, including the communication of government policy choice and rationale to the international and domestic stakeholders for a stronger partnership in policy implementation.

These stakeholders international agencies, business sector, media, the academia, and civil societies.

This output class is expected to increase as greater civic responsibility generates interest and awareness in government’s policy processes and implementation.
include other government departments, The climate change unit is obligated to meet its Rio Conventions Obligations namely the United Nations Framework Conventions on Climate Change (UNFCCC).
Table of Contents 8.1 8.2 8.3 8.4 PART A: FINANCIAL STATEMENT ...................................................................................................................................... 2 Audit Opinion ........................................................................................................................................................... 2 Statement of Receipts and Expenditure .................................................................................................................. 2 Appropriation Statement ......................................................................................................................................... 3 Statement of Losses ............................................................................................................................................... 3 PART B: AUDIT FINDINGS ................................................................................................................................................... 4 Non-Reconciliation of Overseas Mission Bank Accounts ....................................................................................... 4 Overdrawn Trust Fund Account Balance ................................................................................................................ 6 Incomplete Board of Survey Report ........................................................................................................................ 6 Expenditure Ledger ................................................................................................................................................. 7 Unauthorised Balances in SLG 84 .......................................................................................................................... 8 Overstatement of Expenditure ................................................................................................................................ 9 Lack of salary deductions for late arrival ............................................................................................................... 10 Excessive Annual Leave ....................................................................................................................................... 11 Incorrect Remuneration of Post Allowances ......................................................................................................... 12 Anomalies in Procurement of Goods and Services ............................................................................................... 13 Failure to Maintain and Produce Proper Records for Audit Verification ................................................................ 15 Locally Engaged Staff (LES) in Seoul ................................................................................................................... 17 APPENDICES ......................................................................................................................................................................... 18 Appendix 8.1: Anomalies in Procurement and Accounting for Goods and Services................................................... 18 Headquarters ...................................................................................................................................................................... 18 Overseas Mission ............................................................................................................................................................... 18 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ PART A: FINANCIAL STATEMENT 8.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Foreign Affairs and International Co-operation resulted in the issue of a qualified audit report.
The Ministry did not reconcile the Overseas Missions cash at bank balance totalling $5.08 million as at 31 December 2013 contrary to section 32 (6) of the Finance Instruction 2010.

As such, audit cannot ascertain the completeness and correctness of the cash at bank account balance disclosed in the notes nor the expenditure and revenue recorded in the Statement of Receipts and Expenditure.
Management attention was also drawn to the following matter:  Board of surveys were not carried out for all Fiji Missions overseas contrary to section 49 (1) of the Finance Instructions 2010.

As such, the completeness and accuracy of the Statement of Losses could not be ascertained.

 An un-reconciled difference of $469,775 exists for expenditure recorded in the Financial Management Information System (FMIS) general ledger and the department expenditure ledger.
The Ministry did not perform any reconciliation for expenditure and as a result, the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.

 The total expenditure includes a book entry for a budget carry-over of $1,150,747 to be spent in 2014.

Consequently, the actual expenditure in 2013 has been overstated by the same amount.
8.2 Statement of Receipts and Expenditure The Ministry collected revenue totalling $30,900 and incurred expenditure totalling $34,870,144 in 2013.
Table 8.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Operating Revenue Total State Revenue Agency Revenue Miscellaneous Revenue Total Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure 2013 ($) 2012 ($) 30,471 30,471 429 429 30,900 23,759 23,759 --- --- 23,759 9,822,318 2,879,876 2,722,716 9,049,054 596,106 2,707,793 4,417,349 32,195,212 7,657,735 2,310,936 2,285,754 6,513,892 373,266 2,428,804 3,623,152 25,193,539 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Description Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 145,383 191,171 336,554 2,338,378 34,870,144 2012 ($) 226,544 165,625 392,169 1,559,735 27,145,443 The Ministry’s total revenue increased by $7,141 or 30% in 2013 compared to 2012.
This was due to increase in recovery of overpayments.

Total expenditure increased by $7,724,701 or 28% in 2013 compared to 2012.

This was mainly due to the upgrading of base salaries as per Public Service Commission Circular number 87/2012 and filling of vacant posts.

Postal allowances provision for the newly established Missions in South Korea and United Arab Emirates also contributed to the increase.
There were also increases in expenditure for repair and maintenance of fixed assets, lease and rent payments.

8.3 Appropriation Statement The Ministry incurred expenditure totalling $34,870,144 in 2013 against the revised budget of $38,652,573 resulting in a savings of $3,782,429 or 10%.

Details of expenditure against the budget estimates are provided in Table 8.2.
Table 8.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Capital Constructions Capital Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 8,016,462 3,231,129 1,663,564 10,162,027 700,902 3,307,223 7,646,579 34,727,886 300,000 0 300,000 2,410,900 37,438,786 Changes ($) 1,173,697 (350,159) 1,058,695 (1,110,792) (101,873) (599,128) 1,171,812 1,242,252 (148,995) 193,048 44,053 (72,518) 1,213,787 Revised Estimate ($) 9,190,159 2,880,970 2,722,259 9,051,235 599,029 2,708,095 8,818,391 35,970,138 151,005 193,048 344,053 2,338,382 38,652,573 Actual Expenditure ($) 9,822,318 2,879,876 2,722,716 9,049,054 596,106 2,707,793 4,417,349 32,195,212 145,383 191,171 336,554 2,338,378 34,870,144 Carry Over ($) 0 0 0 0 0 0 1,000,650 1,000,650 0 0 0 150,097 1,150,747 Lapsed Appropriation ($) (632,159) 1,094 (457) 2,181 2,923 302 4,401,042 3,774,926 5,622 1,877 7,499 4 3,782,429 In 2013, Cabinet approved a redeployment of $1,213,787 from other Ministries and Departments to the Ministry’s budget.
8.4 Statement of Losses There was no loss of fixed asset recorded for the year 2013.

However, the following items worth $87,706 were written off, following the Ministry’s and Overseas Mission’s Board of Survey conducted for the year ended 31 December 2013.

Refer Table 8.3 for details.
Ministry of Foreign Affairs & International Co-Operation Section 08: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Table 8.3: Value of Items Written off Mission Head Quarters Canberra London PRUN - New York PNG Tokyo, Japan Malaysia New Delhi Sydney Total Amount ($) 18,454 3,022 4,158 --- 36,542 20,629 2,130 881 1,890 87,706 PART B: AUDIT FINDINGS 8.5 Non-Reconciliation of Overseas Mission Bank Accounts The Senior Accounts Officer shall prepare bank reconciliation within 5 days of the end of the month.1 All bank accounts must be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and dated by the responsible officer.2 The Principal Accountant must verify the balances in the bank reconciliation to the cash book, bank statements, un-presented cheque list and the previous month’s bank reconciliation before certifying it.3 The overseas mission’s bank accounts facilitate the payment for mission expenditure and the transfer of monies from the consolidated fund account.
At the end of the month, the expenditure is journalized to respective budgetary expenditure allocation.

Cash held in overseas missions bank accounts as at 31/12/13 totalled $5,079,765 compared to $4,565,692 in 2012, an increase by $514,073 or 11%.

Refer Table 8.4 for details of bank balances with overseas missions.
Table 8.4: Overseas Missions Bank Balances Account Number Mission 1-08101-08101-510106 1-08103-80102-510106 1-08103-80101-510107 1-08103-81001-510202 1-08103-80501-510401 1-08103-80701-510502 1-08103-80201-510504 1-08103-80301-510601 1-08103-81001-510801 1-08103-81101-510801 1-08103-81102-510802 WASHINGTON FIJI TRADE COMMISSION SYDNEY FIJI CONSULATE GENERAL SYDNEY FIJI HIGH COMM.

CANBERRA FIJI HIGH COMM.
LONDON FIJI EMBASSY TOKYO DOM CASH FIJI HIGH COM WELLINGTON FIJI HIGH COMMISSION BEIJING FIJI MISSION BRUSSELS FIJI HIGH COMMISSION UN FIJI HIGH COMMISSION UN 2013 ($) --- 222,038 55,430 44,043 895,416 20,406 406,205 692,243 12,178 229,563 436,044 2012 ($) (2,027) 121,140 53,060 67,278 238,405 8,400 579,608 684,885 --- 270,689 378,770 Movement ($) 2,027 100,898 2,370 (23,235) 657,011 12,006 (173,403) 7,358 12,178 (41,126) 57,275 1 Ministry of Foreign Affairs and International Co-operation, Finance Manual 2011 – Section 5.3.7 and 5.3.10 2 Finance Instruction 2010 – Section 32 (6) 3 Ministry of Foreign Affairs & International Co-operation Finance Manual 2011 – Section 5.3.10 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Account Number Mission 1-08103-80301-510901 1-08103-80402-510901 1-08103-80405-510901 1-08103-80406-510901 1-08103-80601-510901 1-08103-80801-510902 1-08101-08101-510903 1-08103-80301-510903 1-08103-80401-510903 1-08103-80401-510905 1-08103-80402-510905 1-08103-80403-510905 1-08103-80404-510905 1-08103-80405-510905 1-08103-80406-510905 BANK IN KULAR LUMPUR BANK IN KULAR LUMPUR BANK IN KULAR LUMPUR BANK IN KULAR LUMPUR BANK IN KULAR LUMPUR CLOSING BALANCE FOR PNG FHC NEW DELHI FHC NEW DELHI FHC NEW DELHI FIJI EMBASY INDONESIA FIJI EMBASY INDONESIA FIJI EMBASY INDONESIA FIJI EMBASY INDONESIA FIJI EMBASY INDONESIA FIJI EMBASY INDONESIA Total The audit noted the following anomalies: 2013 ($) --- 63,274 42,616 43,473 549,010 (3,540) --- 809,590 24,642 --- 339,654 203,067 39,899 (45,486) --- 5,079,765 2012 ($) 11,544 (33,539) --- --- 595,424 99,570 26,023 395,773 406,479 (170,337) 303,874 79,740 230,649 349,090 -128,806 4,565,692 Movement ($) (11,544) 96,813 42,616 43,474 (46,414) (103,110) (26,023) 413,817 (381,837) 170,337 35,780 123,327 (190,750) (394,576) 128,806 514,073  The Principal Accountant failed to reconcile the cash at bank balances reflected in the general ledger to the actual cash held in the overseas mission bank accounts.
The cash balance relates to income less expenditure to the account.

As such, mission expenditure recorded in the Statement of Receipts and Expenditure could not be ascertained to be fairly stated.

 The Ministry did not provide satisfactory explanation to audit for missions that have more than one bank account in the general ledger, namely, Fiji embassy in New Delhi, Indonesia, United States and Kuala Lumpur.
 In addition, the Ministry did not provide satisfactory explanation to audit for missions that have overdrawn bank accounts in the general ledger, namely, PNG and Indonesia Thus, the receipts and expenditure recorded in respect of missions in the Statement of Receipts and Expenditure of the Ministry’s financial statements could not be relied upon to be fairly stated.
Recommendations  The Principal Accountant should ensure that bank balances in overseas mission accounts are reconciled with the overseas mission general ledger.

 The Ministry should ensure that mission expenditure is reconciled to the cash at bank and then recorded in the respective general ledger expenditure.

 The Ministry should seek the assistance of the Ministry of Finance to reconcile the accounts.
Management Comments Reconciliations of Missions bank accounts have been on going, however this have been a challenge at hand due to the increase in numbers of our Missions abroad.

Nonetheless we are in the process of strengthening our accounts sections in order to meet work demands at hand.

All our missions abroad are differentiated by various cost centers, as clearly reflected in drawing accounts highlighted.
Each mission has different costs centers even though FMIS narrations naming were the same in most cases.

Matters were highlighted to FMIS in some training we had, on the need to correctly reflect right naming against each FMIS allocations.
Ministry of Foreign Affairs & International Co-Operation Section 08: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ We have tried our best to address issue raised and the recruitment of additional staff will greatly assist with staff shortage currently experienced.

8.6 Overdrawn Trust Fund Account Balance Trust Fund Accounts compromise monies, which are not the property of the state and not utilized for the purpose of government.
In addition, Trust money is to be accounted for separately from public money and other money,4 and by convention should always have credit balances.

Thus, the trust fund accounts should not at any time be overdrawn.5 The Ministry’s Operating Trust Fund Account had overdrawn balances totalling $62,191 as at 31/12/14.

The following trust fund accounts had overdrawn balances.
Table 8.5: Overdrawn Trust Fund Accounts Account ID Description 1-08101-08101-861902 1-08103-80701-863101 1-08101-08101-864102 Totals 204 PD DEPST A/C Recoverable Admin Contributions Foreign Mission Sundries Amount ($) 8,799 53,253 140 62,191 The overdrawn trust funds indicate the lack of adequate internal control and supervision and a disregard for procedures in the Finance Instructions.

Recommendations  The Principal Accounts Officer must ensure that the Trust Funds are not overdrawn at any time.
 The Principal Accounts Officer must investigate these overdrawn (debit) Trust Funds and  take appropriate action.

Internal Control procedures such as supervisory checks in the Accounts Section should be strengthened to avoid such anomaly.

Management Comment Comments have been noted and corrective measures have been taken to address the overdrawn accounts.

Missions concerned have been advised accordingly to refrain from debiting these expenditure allocations.
8.7 Incomplete Board of Survey Report An annual board of survey must be conducted each year to verify the existence and condition of assets recorded on the asset register.6 The PSFA&IC and HOM shall nominate two boards of survey officers to undertake an annual board of survey of fixed assets and expendable items at a specified date as required by Procurement Regulations 24-(1).7 The audit noted that the Ministry failed to carry out the board of survey of the nine missions and embassies.
Refer Table 8.6 for Missions whose board of survey was not carried out.

4 Financial Management Act 2004 – Section 25 (1) 5 Finance Circular No.
4/98 of 30/03/98 6 Finance Instructions 2010 – Section 49 (1) 7 Ministry of Foreign Affairs & International Co-operation Finance Manual 2011 – Section 7.4.1 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Table 8.6: Board of Survey Not Carried Out for Overseas Missions Mission Abu Dhabi Brussels Brazil Wellington Washington Beijing Indonesia South Africa Taiwan Remarks No file sighted BOS 2012 report dated 30/09/13 No 2013 report Last BOS dated 16/12/2011 received in 2013, Report #23-27/4/13 No 2013 report No 2013 report Last BOS dated 03/03/11 No 2013 report No 2013 report Without a board of survey, the Statement of Losses (other than money) cannot be substantiated.
The risk of misappropriation of assets is also high and the statement of losses report reflected in the agency financial statement is not exhaustive.

Recommendation The Principal Accounts Officer must ensure that Section 49 of the Finance Instruction 2010 and section 7.4.1 of the Ministry’s Finance Manual 2011 are strictly complied with.

Management Comment Comments have been noted and we worked on a follow up process on Board of Survey as stipulated in the Ministry’s Finance Manual.
A correspondence already issued to the Heads of Missions to conduct Board of Survey (BOS).
8.8 Expenditure Ledger All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger.8 The Accountant is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.9 The special purpose financial statements of the Ministry of Foreign Affairs and International Co- operation for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) general ledger maintained by the Ministry of Finance.
The Ministry maintains the expenditure ledger for all the payments done during the year.

However, upon reconciliation of the expenditure ledger with the total expenditure as per FMIS general ledger, a variance of $469,775.11 was noted.

Also, the audit noted that the Ministry did not reconcile the expenditure in the FMIS general ledger to its expenditure ledger or any other separate record.
As a result the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.
8 Finance Instruction 2010 - Section 15 9 Ministry of Foreign Affairs & International Co-operation Finance Manual 2011, Part 12: Ledger Accounts – Introduction Paragraph Ministry of Foreign Affairs & International Co-Operation Section 08: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Recommendation The Senior Accounts Officer should ensure that the expenditure ledger is reconciled to the expenditure as per the FMIS general ledger on a monthly basis.
Management Comment Comments have been noted.

We have strengthened our manual expenditure ledger updating and ensure that these are balanced at the end of each month.
8.9 Unauthorised Balances in SLG 84 If an amount appropriated by an Annual Appropriation Act for a financial year has not been used in that financial year; or is unlikely to be used in that financial year, the Minister may authorise the carry- over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date, and the amount authorised for carry-over may be used accordingly in that following year, subject to such conditions as the Minister specifies in the authorisation.10 Natural account in Standard Liability Group (SLG) 84 relates to accounts payable balances that therefore should have a credit balance or zero balance at a particular point in time.11 The Ministry’s SLG 84 had a balance of $2.6 million as at 31/12/13, a 100% increase compared to 2012.
Due to unavailability of the relevant records, the audit was unable to substantiate the carry-over balances in SLG 84 with the revised budget and, approved carry-over by Ministry of Finance and carry-over requests from Ministry of Foreign Affairs.

The only Ministry of Finance approval provided to audit authorises the carry-over of $1,720,791.

Refer Table 8.7 for details of balances in SLG 84.
Table 8.7: Balances in SLG 84 Account Number Description 1-08101-08101-840102-002 MARINE AFFAIRS UNIT 1-08101-08101-840102-003 1-08101-08101-840102-004 1-08101-08101-840102-005 1-08101-08101-840102-006 1-08101-08101-840102-007 1-08101-08101-840102-008 1-08101-08101-840102-009 1-08101-08101-840102-010 1-08101-08101-840102-011 1-08101-08101-840103-001 1-08101-08101-840103-002 1-08101-08101-840103-003 1-08101-08101-840103-004 1-08101-08101-840602 1-08000-00000-840000 CDM PROJECT TNC PROJECT PIDF KUWAIT PIDF SNC PROJECT PIDF UAE PIDF RUSSIA PIDF TIMOR LESTE ITC RENOVATION -ABHU DHABI ESTABLISHMENT OF THE PIDF OFFICE G77 RELOCATION OF F.AFFAIRS TO ITC BLDG PSC CUBA SCHOLARSHIP WITHHOLDING TAX TOTAL Amount ($) (11,345.85) (2,556.47) (21,767.42) (172,320.46) (12,573.00) (84,613.98) (187,359.45) (189,609.40) (467,551.90) (252,611.33) (735,994.00) (64,382.75) (350,370.00) (89,253.83) (151.20) (2,642,461.04) As a result audit was not able to ascertain the accuracy and completeness of the amounts stated in SLG 84.
10 Financial Management Act 2004 – Section 19(1) 11 Chart of Accounts – Account Number Structure for Fiji Government Ministry of Foreign Affairs & International Co-Operation Section 08: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Recommendation The Principal Accounts Officer should ensure that all records and documentation are available for audit verification.
Management Comment The Ministry’s initial carry over request was submitted to Ministry of Finance (MOF) on 20th December 2013 and was approved for 2014 carry over.

Balance of fund released in 2013 was also part of the approved amount for carry over.

We have also included in the request, those funding that were provided by development partners at the Ministry of Finance (MOF) Treasury but was yet to be released to us due to fund shortage within Head 50 of MOF.
Since fund received are earmarked for our Ministry, we have included them in our carry over request too; including the amount of $1,097,132 reflected those that were provided by development partners in 2013 but was not released to the Ministry due to Head 50 fund shortage with the MOF, however these were made available to the Ministry in 2014, thus its reflections in 2014 SLG 84.
8.10 Overstatement of Expenditure If an amount appropriated by an Annual Appropriation Act for a financial year has not been used in that financial year; or is unlikely to be used in that financial year, the Minister may authorise the carry- over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date, and the amount authorised for carry-over may be used accordingly in that following year, subject to such conditions as the Minister specifies in the authorisation.12 The purpose of the carry-over policy is to ensure that funds requested for this initiative are reflected in the budget allocation of requesting Ministries and Departments for the respective year.13 The audit noted that the Ministry recorded $1,150,747 an amount authorised to be carried over under the carry-over-policy as expenditure for year 2013 in the FMIS general ledger contrary to the carry- over policy.
Refer Table 8.8 for details.
Table 8.8: Accounting Entry for Carry-Over of Funds Allocation Description 1-08103-81101-070101 1-08101-08101-070299 1-08101-08102-070299 1-08103-08101-130101 1-08101-08101-130101 1-08101-08101-840000 Government Hospitality Relocation of Foreign Affairs to ITC Establishment of Pac Island Dev Office Value Added Tax Input Tax Value Added Tax Input Tax Standard Liability Group 84 CR ($) DR ($) 55,985 321,291 623,374 104,397 45,700 1,150,747 As such, the Special Expenditure and Value Added Tax expenditure is overstated by $1,000,650 and $150,097 in the FMIS general ledger respectively.
Recommendation The Principal Accounts Officer in consultation with the Ministry of Finance should ensure that carry-over expenditure is appropriated in the budget of the following year.
12 Financial Management Act 2004 – Section 19(1) 13 Ministry of Finance – Carry-Over Policy, January 2012 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Management Comment Comments have been noted and will try to improve in the near future.
8.11 Lack of salary deductions for late arrival If the accumulated absence in a month exceeds one hour the monetary equivalent should be deducted from the officer’s salary.

The waiver for exemption depending on the circumstances of late arrival or early departure rests only with the Permanent Secretaries and Heads of Ministry.14 Review of payroll records revealed that staff’s salary were not deducted for staff who continues to arrive late to work by more than one (1) hour in a month.
Refer Table 8.9 for the sample reviewed during audit.

Table 8.9: Details of Unrecovered deductions for Late Arrival EDP No.
92465 53305 53364 91390 91389 92464 59930 63618 90182 Late Arrival Hours for the Month Jan - 1:15 2:35 6:45 3:13 5:40 2:46 1:15 - Feb 1:00 1:45 1:10 - 1:35 1:32 1:41 3:50 - Mar - 4:40 3:40 1:20 3:00 2:30 2:33 - - April May 2:10 6:10 5:59 - 3:19 1:40 2:15 1:40 2:10 1:00 5:10 10:00 - 4:55 - 1:15 June 5:20 - 1:30 2:00 - 6:25 2:38 3:40 Total Hours: Minutes 8:30 17:09 16:34 8:05 13:43 12:52 28:35 7:43 9:50 Salary Monetary Value ($) 47.38 398.62 265.49 43.24 129.88 68.83 254.17 64.81 137.20 ($) 10,724 44,720 30,833 10,292 18,218 10,292 17,109 16,160 26,845 In addition, the Ministry did not provide the late arrival return for the third and fourth quarter of the financial year 31/12/13.
Excessive late arrivals to work may have an effect on the work performance of the officers and the productivity of the Ministry.

Recommendations  The late arrivals should be recovered from the relevant officers and the Ministry should ensure that the late arrival returns for all the months are prepared.

 Supervision of staffs should be strengthened to avoid continuous late arrival for the staff of the Ministry.
Management Comment The Ministry is in the process of implementing the deduction of salaries and wages from staff in accordance with GO 304.

At the same time, the Ministry wishes to inform that some of these officers are required to work late due to pressing work commitments but this is not recognised for those who are not entitled to be paid overtime.
In terms of professionalism, fairness and natural justice, the Ministry is looking at ways and means to ensure the system does not unnecessarily punish the committed and hard-working officers in the process.
This in itself is 14 Public Service Commission Circular 58/2008 – Clause 6.0 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ staff retention strategy and a way forward for the Ministry in creating and building a work environment that is healthy, friendly, trusting, professional, fair and just.
8.12 Excessive Annual Leave The Permanent Secretary or Head of Ministry shall ensure scheduling of leave to avoid bulging of leave entitlements at any time of the year.
Officers may be allowed to carry over up to a maximum of ten working days leave entitlement from one leave year to the next.15 There should be no reason or justification for the accumulation of leave beyond what is permissible, nor payment in lieu, if leave were properly administered.16 Due to Government’s stringent control of funds, the compensation of accumulated leave will not be entertained and officers are encouraged to utilize their accumulated leave on a piece meal basis.17 The review of the leave records revealed that some officers have accumulated leave balances in excess of 10 working days carried over to the next leave year.
Refer Table 8.10 for examples.

Table 8.10: Excessive Annual Leave Carried Forward EDP No.
Balance B/F 64690 64691 91270 63618 92464 91389 53699 53305 13931 48863 40960 Total 20.5 16 16 49 36 42 50 37.5 59 52 43 Leave Due on Pro-rata18 19 7.5 21 21 7.5 12 5 1.5 3.5 0 10.5 Total Leave Taken Balance Due Consecutive Days Salary Leave Liability ($) 2,842 1,144 2,158 3,080 2,118 2,687 6,247 6,708 15,139 12,596 5,994 60,713 Due to excessive unutilised leaves, the Ministry accrued leave liability of $60,713 as at the date of audit.
It is important that scheduling of leave is carried out on a regular basis as an internal control mechanism.

The findings indicate that the Ministry lacks proper administration and management of leaves.

This may result in compensating for unutilized leaves days when Officers resigns or retire from the service.

Recommendations  The Ministry should ensure that Officers utilize their leave when due and only 10 annual leave days are carried forward to next leave year.
 The Ministry should request Officers with long outstanding leave days to utilize their leave.

15 General Order - Section 705 (c) 16 Public Service Commission Circular No.

09/2003 17 Public Service Commission Circular No.


53/2009 – Effective Leave Administration dated 03/11/09 18 Leave due on pro-rata is calculated till the month of June 2014 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________  The Ministry should comply with circulars issued by the Public Service Commission from time to time regarding the administration of leave.
Management Comment The Ministry has been working on having divisions plan/draw up their respective leave schedules and officers are taking leave on piece-meal basis in order to comply with the leave regulations.

While this is being adhered to, the Ministry would like to state that due to the current organisation’s staff establishment and the nature of work being carried out, it is often difficult to have officers taking leave on prolonged absences.
It is hoped that through the reconfigured structure, should it be approved, the new and additional positions will enable more cover to be available for staff to take their full annual leave entitlements.
8.13 Incorrect Remuneration of Post Allowances The Heads of Missions and officers posted overseas are entitled to post allowances.19 The Fiji Embassy in Abu Dhabi has an authorized establishment of an Ambassador, a counsellor in US04 salary grade, a first secretary in salary grade SS01 and a second secretary in salary grade SS02.20 The cost of gas, electricity, water and heating charges in respect of accommodation provided under sub-regulation 63(1) shall be borne by Government subject to a contribution of F$30 per fortnight by each single officer and F$50 per fortnight by each married officer deducted from post allowance.21 The audit noted that the Counsellor at Abu Dhabi was remunerated at an incorrect rate.
Refer Table 8.11 for details.

Table 8.11: Post Allowance Calculation Pays From pay 5 onwards underpayment For Pay 4 underpayment for 6 days only Total underpayment as at 31/12/13 Amount ($) 1,053 21 1,073 In addition, the audit noted that Mr. Emosi Rakai (First Secretary) was not remunerated on the approved married rate for First Secretary from Pay 24/13 onwards.

Refer Table 8.12 for details.
Table 8.12: Difference between Post Allowance Rates Postal Allowances Location Allowance Representational Supplement Representational Allowance Child Allowance Total Approved Rate ($) 58,961 18,544 14,624 8,249 Amount Paid ($) 49,001 15,411 4,051 7,618 Annually Difference ($) F/N Difference ($) 9,960 3,133 10,573 631 383 121 136 24 663 19 Public Service (Diplomatic and Consular Services) Regulations 2005 – Section 50 (1) 20 Public Service (Diplomatic and Consular Services) Regulations 2005 – Post Allowance for UAE – Abu Dhabi against Japan Tokyo 21 Public Service (Diplomatic and Consular Services) Regulations 2005 – Section 63 (2) Ministry of Foreign Affairs & International Co-Operation Section 08: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ As a result Mr. Rakai was underpaid for the period 19/11/13 to 31/12/13 totalling $1,990.
Furthermore, it was noted that utilities deduction was not made from Ambassador’s post allowance at Korea Mission resulting in overpayment of post allowance of $1,300 on yearly basis.

The above indicates the laxity of the supervising officer in ensuring that adequate supervisory checks on postal allowance payments are made.

Recommendations  The internal control procedure in the accounts and administration section, specifically supervisory checks should be strengthened to avoid such discrepancies.
 Overpayments should be recovered from relevant officers and the underpayments of salary should be paid to the relevant officers.

Management Comment Comments have been noted and furthermore, the Ministry is looking to strengthen human resource developments as missions abroad continue to expand.
8.14 Anomalies in Procurement of Goods and Services The accounts officer preparing payment voucher must ensure that all information required under Finance Instruction 14(1) has been included on the payment voucher or attached to it, before passing it to the SAO for certification.

22 The PAO, SAO & AO must not certify must not certify a payment as correct unless they are satisfied that: i. ii.

iii.

iv.
v. it is in accordance with the LPO, indent, contract, invoice or other authorization; there is documentation that the goods, services or works have been received; sufficient uncommitted funds are available for payment of the account; the account is not fraudulent and has not been previously paid; the expenditure account it is charged to is correct.23 Public tenders must be called for any procurement of goods, services or works valued at $50,001 or more, unless a Tender Board has approved an exemption in accordance with Procurement Regulations 30 (1).24 The audit noted that the Ministry failed to comply with its Finance Manual (2011) in accounting for the procurement of goods and services.
Refer below for details of anomalies noted;  Local purchase order were issued after the receipt of invoice from the supplier of services;  Local Purchase Order(LPO) were not generated and issued to the supplier;  Payment Voucher and other supporting payment records were not stamp paid, checked and  authorised by the supervising officer; Instances were noted where there was inadequate supporting documents attached to the payment records to justify the payment made to the supplier of goods and services;  Three quotations were not obtained; and 22 Ministry of Foreign Affairs and International Co-operation, Finance Manual 2011 – Section 2.8.3 23 Ministry of Foreign Affairs and International Co-operation, Finance Manual 2011 – Section 2.8.4 24 Ministry of Foreign Affairs and International Co-operation, Finance Manual 2011 – Section 2.3.1 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________  Tender Board Approvals were not obtained for payments above $50,000.
Refer to Appendix 8.1 for details.

Processing payments without proper documentation and authorisation increases the risk of double and fraudulent payments.

The Ministry would not receive value for money based on fair competitions and ethical dealings if it continues not to procure from the cheapest supplier for all the procurements.

It is apparent that the Ministry continues to ignore governing procedures and breach Finance Instructions and policies in place.
The deliberate disregard of rules and regulations by public servant is evident in the above anomaly which warrants disciplinary actions.

This could be catalyst to abuse, misappropriation and could result in wastage of taxpayer’s funds.

Recommendations  The Principal Accounts Officer should ensure that the Ministry complies with its Finance Manual at all times.

Any deviation should be properly authorized and supported with documentary evidence.
 The internal control procedure in the Accounts Section, specifically supervisory checks should be strengthened.

 The Principal Account Officer should ensure that procurement procedures and guidelines are followed.

 The Ministry should investigate the officers responsible for not adhering to the financial regulations and implement appropriate disciplinary actions if the responsible officers continue to breach financial regulations.
Management Comment Headquarters: Date 04/02/13 22/01/13 26/04/13 Chq # 25936 25844 26522 Jad international 20/02/13 31/01/13 31/01/13 28/03/13 26039 Jad international Vodafone Fiji Ltd Overseas Missions Payee Description Amount Anomalies Ministry’s comments Airfare Esala Nayasi, Rhadika Kumar Kumar & Minister Pmt airfare Litia Mawi & DJ Payment of Bills 11,840 10,854 10,145 LPO Raised After receipt of Invoice No paid stamp 37,708 8,318 5,500 10,970 LPO were raised on the same date the approval and invoice were given, however since funding was an issue, shifting and virements were necessary.
This contributes to the latter dates on LPO issued.

Comments have been noted and it must have been overlooked.

Measures are in place to see that all are complied with when making payments.
Missions Beijing Brazil South Africa PNG Korea Issues Raised Payments documents not stamp paid and not checked by supervisor Payment Voucher not stamped paid Payment Voucher authorized PV not stamped paid Supporting documents not attached have not been Ministry’s comments Comments have been noted and Missions will be reminded accordingly.

Missions were informed and there were improvements already.

Payments have been fully authorized.


Comments have been noted and Missions will be reminded accordingly Missions were informed and there were improvements already.
Ministry of Foreign Affairs & International Co-Operation Section 08: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Missions London Brussels Abu Dhabi Issues Raised Direct debits does not have details attached Competitive quote not attached PV not paid stamp Supporting documents not attached Ministry’s comments Comments have been noted and Missions will be reminded accordingly Comments have been noted and Missions will be reminded accordingly Comments have been noted and Missions will be reminded accordingly Documents for payment are attached and there were improvements already.
8.15 Failure to Maintain and Produce Proper Records for Audit Verification The Principal Accounts Officer is responsible for the safekeeping and proper maintenance of all accounting records or documents.25 The need to improve record management in all agencies is vital for promoting Good Governance, Transparency and Accountability in the public sector.
It is the responsibility of all staff hierarchy levels in each agency to integrate proper record management upkeep.26 All accounting staffs are responsible for proper maintenance and safekeeping of accounting records and documents, giving the Accounting Head the responsibility in implementing a sound internal control system to oversee this mater.27 The Senior Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents.28 The audit noted the following anomalies in the administration and maintenance of accounting records and documents pertaining to payments;  The Ministry did not provide to audit the acquittal files for Tokyo Mission for the month of April, May, August, September and October.
As a result audit was unable to verify expenditure totalling $1,028,132 for the respective months.

Refer Table 8.13 below for details.
Table 8.13: Missing Acquittal Files Expenditure Detail Account Description Allowance – Transfer Allowance – Education Wages Travel Subsistence Telephone Fuel and Oil Civil Vehicle Repair & Maintenance – Building Lease & Rental – Building Repair Fixtures Repair Others Office Books, Periodicals & Publication TOTAL Amount ($) 310,975 172,995 119,327 28,861 11,202 5,463 2,177 63,694 255,760 52,646 4,187 845 1,028,132  The audit further noted that personnel files and its pertinent records were not updated or maintained for mission employees to determine the accuracy of post and education allowances paid.
Refer Table 8.15 for summary of missing supporting documents; 25Ministry of Foreign Affairs and International Co-operation, Finance Manual 2011 - Section 14.1.3 26Public Service Commission Circular No.
10/2011 27Finance Instruction 2010 – Section 59 28Ministry Foreign Affairs and International Co-operation, Finance Manual 2011 – Section 17.1.3 Ministry of Foreign Affairs & International Co-Operation Section 08: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ o Marriage Certificates to vouch the payment of allowances at married or single rates; o Birth certificates of children to determine the eligibility of education allowances; and o Board papers to verify appointment of diplomats.
Refer Table 8.14 below for details.
Table 8.14: Details of Missing Records Name of Officer H.E Yogesh Jitendra Karan Post holder Ambassador (New Delhi) Ana Rokomokoti Counsellor (New Delhi) Om Prakash Gounder Emosi Rakai Second Secretary (New Delhi) First Secretary (Abu Dhabi) Remarks Total ($) 4,661 The marriage certificate and birth certificate of the 2 child were not produced to audit to substantiate the payments of locational allowance of $2,157, Representational Allowance of $931, Representation Allowance of $766, child allowance of $498 and Domestic Help Allowance of $308.
3,644 The marriage certificate and birth certificate of the 3 children were not produced to audit to substantiate the payments of locational allowance of $1,943, Representational Allowance of $736, Representation Allowance of $216 and child allowance of $748.

3,259 There were no appointment letter or board papers for appointment in the personal file.
The audit also noted that the marriage certificate and birth certificate of the 4 children were not produced to audit to substantiate the payments of locational allowance of $1,747, Representational Allowance of $400, Representation Allowance of $115 and child allowance of $998.
2,926 The audit noted that the marriage certificate and birth certificate of the child were not produced to audit to substantiate the payments of locational allowance of $1,885, Representational Allowance of $153, Representation Allowance of $593 and child allowance of $293.

Total 14,490 In addition, the Ministry failed to provide weekly wages reconciliation for pay 2, 3, 36, 37, 11 to 29 and 47 to 52.
The above shows the laxity of the accounts and administration section in implementing a sound internal control system.

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

Recommendations  The Principal Accounts Officer should ensure that all accounting records are properly maintained in accordance to section 14.1.3 of the Finance Manual.
 The Director Corporate Services should strengthen supervisory checks for records kept with the Accounts Division.

Management Comment Table 8.13:- Missing Acquittals Files Expenditure Detail  Processing of payment of allowances for each diplomat is cleared by the Admin section before any payments is processed.

However the comment is noted as Ministry sighted all their passports and personal details whilst processing their Visa applications and other postings logistics.
Table 8.14:- Details of Missing Records  Comments noted and Ministry will adhere to, however all Diplomats and family members passports and personal details whilst processing their Visa applications and other postings logistics.
Ministry of Foreign Affairs & International Co-Operation Section 08: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ 8.16 Locally Engaged Staff (LES) in Seoul The Permanent Secretary in consultation with the Head of Mission may appoint any person on contract basis to serve as locally recruited staff in any overseas mission.29 The audit of the Fiji Mission in Seoul, South Korea revealed that two (2) Fiji Nationals were recruited as locally engaged staff in 2013.
The first officer Rosalini Dalituicama (Personal Assistant) has since been promoted to Third secretary while the second officer Patrick Gork assumes the position of Office assistance.

The audit noted that the two Fiji national were also enagaged in protocol, consular and semi diplomatic duties but were not entitled to diplomatic privileged and working conditions and allowances.
The 2013 internal audit report stated that Rosalini Dalutuicama accompanied the Ambassador for overseas trip while Patrick Gork has also been performing consular and protocol duties such as receiving Fiji Government dignitaries at the airport in Seoul as also required by his Individual Work Plan.
The audit also noted that the two Fiji nationals engaged as LES also lacked proficiency in written and oral Korean language thus have little to offer in terms of communications and interpretations of Korea language.

Furthermore, accounting records revealed that the two Fiji nationals were paid Accountable Advances at the beginning of their contract to assist them with their 3 months security deposits for their rent and relocation to Seoul.
Ms Dalituicama was paid an advance of US$ 6,550.86 while Mr Gork received an advance of US$3,949 contrary to Finance regulations.

There are no guidelines in place to cater for employing Fiji residents as Locally Engaged Staff in the various Fiji missions overseas especially in respect to assistance for their relocation and other benefits for assuming other diplomatic related work.
Recommendation  The engagement of Fiji residents to take LES posts in overseas missions should be reviewed with the LES employment conditions, otherwise be discouraged.

Management Comment The Ministry believes the performance of the Fiji embassy in Seoul is the best gauge against which this issue should be measured.
The input of the Fijian national engaged as LES has been a strategic decision made by the Ambassador in liaison with the Ministry and the results have been very positive in terms of the huge investments and development commitments the Fiji embassy has been able to secure from the Republic of Korea.
The Ministry is reviewing the Foreign Officers Service Regulations (FOSR) especially with regards to terms and conditions of employment for LES in view of the dynamic geo-political and socio-economic environment we are facing in the world today and the challenge for the Ministry is to come up with a document that recognises the need to be flexible in order to be relevant and seize the opportunities when they present themselves.
29 Public Service (Diplomatic and Consular Services) Regulations 2005 – Section 6 (5) Ministry of Foreign Affairs & International Co-Operation Section 08: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Anomalies in Procurement and Accounting for Goods and APPENDICES Appendix 8.1: Services Headquarters Date 04/02/13 Cheque No.
25936 22/01/13 25844 20/02/13 26039 26/04/13 26522 Payee Description Jad International for Nayasi Airfares – Esala Accompanying Minister to their trip to Rome Payment for eco class travel – Radhika – 11/01 – 26/01 Payment for airfare for Mrs Litia Mawi & Daniel Johnson Payment for airfare for Minister to PNG 31/01/13 31/01/13 25908 25910 Vodafone Fiji Limited Payment for Ministers bill for Dec 2012 Payment for the months of Dec – 2012 28/03/13 26306 19/11/13 JV11/11/13 N/A 26713 Auto Mech 22/05/13 Total Payments for the executive bills for the month of Feb-2013 for Adjustment charged to Directories allocation Payment for the maintenance for the Ministry’s vehicle GN329 telecom payments Overseas Mission Amount ($) 11,840 LPO raised after receipt of Anomalies invoice 10,854 37,708 No paid stamp 10,145 LPO raised after receipt of invoice 8,318 No paid stamp 5,500 10,970 9,727 JV not approved by the supervising officer 3,480 No LPO issued.
108,542 Mission Date Cheque No.

Amount (FJD) Payee Description Anomalies Beijing 13/03/12 1346569 7,716 Commodore Esala Teleni 27/09/13 0421310 1,856 China Unicom 16/09/13 01421305 2,445 China Mobile Brazil 22/02/13 850714 15,083 Commissair Conquessor 22/03/13 850739 1,720 Commissair of payment Being the Ambassador’s (Advance) and to Hong Kong – perdiem Accompany The H.E.
President and meet potential investors & later join the Fiji national sevens team Being payment of rental, telephone & ADSL line for the Chancery the month for ending 31/08/13 Being of Ambassador & Counsellor’s mobile chargers for August 2013 Payment for return air ticket from BSB to Fiji in respect to to Ambassador with attend Ministries & Dept.

Payment towards the consultation payment Tuiloma Payments documents not stamp paid and inadequate supporting documents noted.
No paid stamp and Voucher not checked by supervisor.

Payments documents not stamp paid and no travel memo sighted Ministry of Foreign Affairs & International Co-Operation Section 08: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Mission Date Cheque No.
Amount (FJD) Payee Description Anomalies eventos Turismo 22/03/13 850740 9,062 Commissair eventos Turismo 22/03/13 850742 2,304 Commissair eventos Turismo e e e South Africa 05/07/13 EFT 11,964 Harvey World Travel PNG 16/01/13 004772 7,544 Air Niugini 12/07/13 0000137 6,496 HE Mr Romanu Tikotikoca towards Ambassadors return ticket to Chile to present his credentials Payment the Ambassadors return ticket to Washington DC to attend the HOM of the Americans that is schedules to be held on the 8 – 9th of April 2013 Madame Payment to Tuilomas Chile accompany Ambassador at presentation of credential ceremony Payment for return air ticket for High Commissioner to attend HOM meeting in Suva return airfare to of in Being payment made for 2 persons (Business class), HE Mr Romanu Tikotikoca and for presentation of Madam credentials Solomon Islands Payment being made for HC perdiem outstanding balance as per PGK7436.3 refund for purchasing of Airline ticket at PGK4001.60 Korea 28/03/13 130340 719 Rosalini Dalituicama Being the payment of perdiem for PA to Ambassador, for Fiji Korea Investment Tour London (Jan) London (Feb) London London 31/12/12 Direct Debit 1,759 Be Fuel cards Direct debit to Fuel cards Ltd 31/01/13 15/02/13 28/02/13 02/04/13 01/07/13 15/07/13 Ltd 1,006 825 1,119 1,253 1,445 1,005 PNG 14/03/13 000017 177 Canaan Service Station Payment being for fuel refill to Nissan patrol BDT478, the Mission official vehicle 16/03/13 000019 44 Canaan Service Station Payment being for fuel refill to the Nissan Patrol BDT478, not Payment voucher properly authorized Payments documents not stamp paid and no travel memo sighted.
Payments documents not stamp paid and inadequate supporting documents Inadequate supporting documents sighted Inadequate supporting attached.

The only supporting document attached is the bank statement showing direct debit.
Payments documents not stamp paid and properly authorized and passed by supervising officer Payments documents not Ministry of Foreign Affairs & International Co-Operation Section 08: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Mission Date Cheque No.
Amount (FJD) Payee Description Anomalies Mission official vehicle 19/03/13 000029 222 Canaan Service Station Payment being for fuel refill to the Nissan Patrol BDT478, Mission official vehicle Korea (Jan) Brussels (July) 14/01/13 130102 15/07/13 19/07/13 15 25 234 Samsung Electronics 444 Hale Tristan Being the payment and the purchase and installation of Hi-Pass for FES stand Mission support vehicle Maintenance work done at the office diplomats residence and at 7,945 Vandiest BVBA Supply of oil HQ 15/03/13 26211 24,164 Jad International PNG (March) 19/03/13 28 1,064 Mrs Loraini Bulivakkarua for central our system for heating Counsellor’s residence Payment of account for airfare to various offices for Payment being made vehicle hire by FHC for PM Port Moresby visit PNG (April) 24/04/13 56 3,710 JS Bula Hire Cars PNG (July) Korea (Nov) Beijing (July) Beijing (July) 31/07/13 173 593 Cash 26/11/13 131141 2,667 Kumho Centre Tyre 30/07/13 1407653 17/07/13 1407645 15,209 Mary’s Hospital for Women & Infants 3,042 Payment for hire of support vehicle Reg#BDV383 for PM’s state visit and trade mission to PNG Being made for purchase of vehicle necessaries the two official vehicles for Being payment o replacement of snow tyres for FES official & Mission support vehicle Being deposit for maternity expenses of the SS’s wife Payment of deposit for an immediate surgical operation for the first secretary’s wife – Mrs Tuima Ministry of Foreign Affairs & International Co-Operation Section 08: Page 20 not paid stamp payment voucher properly authorized Payments documents not stamp paid and no receipt or invoice sighted No competitive quotation sighted Misallocation of expenditure Payments documents not stamp paid and the payments 2012 were expenses.
and Payments documents not stamp paid and there was no competitive quote invoice.

Payments documents not stamp paid and there was no competitive quote.

No competitive quote No Invoice and payment voucher supporting documents not stamped ‘Paid’ and REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 _________________________ Mission Date Cheque No.
Amount (FJD) Payee Description Anomalies Beijing (July) Abu Dhabi (April) 31/07/13 1407652 899 Josefa Tuima 14/04/13 30/04/13 306 308 154 Lumen Saeed 254 Sylvia Sagar Total 136,143 Reimbursement of medical expenses incurred for the first secretary’s wife Payment of compensation (Plan HSS) Payment compensation (Plan H55) insurance insurance of Inadequate supporting documents.
Payment voucher supporting documents not stamped ‘Paid’ and Ministry of Foreign Affairs & International Co-Operation Section 08: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 9 Elections Office Roles and Responsibilities The Supervisor of Elections administers the registration of voters and conducts election of members of the House of Representatives and Municipalities Councils or any such other elections as prescribed by law.
The supervisor is also responsible with providing its administrative support for both the electoral commission and the constituency boundaries commission in the discharge of its duties.
Table of Contents PART A: 9.1 9.2 9.3 PART B: 9.4 9.5 9.6 FINANCIAL STATEMENTS .................................................................................................................................. 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 1 Appropriation Statement ....................................................................................................................................... 2 AUDIT FINDINGS ................................................................................................................................................. 2 Transfer of Funds to the Office of the Attorney General ....................................................................................... 2 Overdrawn Operating Trust Fund Accounts .......................................................................................................... 3 Long Outstanding Revolving Fund Accounts ........................................................................................................ 5 PART A: FINANCIAL STATEMENTS 9.1 Audit Opinion The audit of the 2013 accounts of the Elections Office resulted in the issue of an unqualified audit report.
Management attention was however drawn to the following matter:  Note 3(f) discloses that a sum of $1million was transferred to the Office of the Attorney General’s trust fund allocation for the consultation and printing of the 2013 Constitution.

The $1million is charged to Special Expenditure, hence overstating 2013 expenditure by the same amount.

9.2 Statement of Receipts and Expenditure The office incurred a total expenditure of $3,799,984 in 2013 compared to $6,538,546 in 2012.
Refer to Table 9.1 for details.
Table 9.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS Commission Miscellaneous Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Unestablished Staff Travel & Communications Maintenance & Operations Elections Office 2013 ($) 2012 ($) 97 68,125 68,222 219,539 77,861 34,841 109,126 0 30 30 199,746 77,450 19,977 81,131 Section 09: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Purchase of Goods & Services Special Expenditures Total Operating Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 942 3,187,772 3,630,081 169,903 3,799,984 2012 ($) 25,087 5,895,983 6,299,374 239,172 6,538,546 Total expenditure declined by $2,738,562 (42%) in 2013 compared to 2012 due to the decrease in special expenditure by 46% in 2013.
9.3 Appropriation Statement The Office incurred expenditure totalling $3,799,984 in 2013 against a revised budget of $8,407,403 resulting in a savings of $4,607,419 or 55%.

Details of expenditure against the budget estimate are provided in Table 9.2.
Table 9.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Special Expenditures Total Operating Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 401,600 70,200 24,000 98,200 25,300 11,500,000 12,119,300 1,747,100 13,866,400 Changes ($) (7,661) 7,661 14,551 24,445 --- (4,785,950) (4,746,954) (712,043) (5,458,997) Revised Estimate ($) 393,939 77,861 38,551 122,645 25,300 6,714,050 7,372,346 1,035,057 8,407,403 Actual Expenditure ($) 219,539 77,861 34,841 109,126 942 3,187,772 3,630,081 169,903 3,799,984 Lapsed Appropriation ($) 174,400 0 3,710 13,519 24,358 3,526,278 3,742,265 865,154 4,607,419 PART B: AUDIT FINDINGS 9.4 Transfer of Funds to the Office of the Attorney General The Minister may, with the approval of Cabinet, authorize the redeployment of amounts appropriated by the most recent Annual Appropriation Act for administration by the Ministry of Finance to the heads of appropriation and appropriation categories to be administered by one or more other budget sector agencies.
The Minister may authorize the redeployment of amounts appropriated by the most recent Annual Appropriation Act for administration by a budget sector agency (other than the Ministry of Finance) to the heads of appropriation and appropriation categories to be administered by one or more other budget sector agencies.
The power of the Minister to give authorizations under this section cannot be delegated under this Act.1 The Acting Permanent Secretary for Justice on 24/04/13 approved the transfer of $1,000,000 from the Elections Office budget allocation to the Office of the Attorney General for the consultation and 1 Financial Management Act 2004 22 Elections Office Section 09: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ printing of the 2013 Constitution.
A Journal Voucher was raised to facilitate this transfer of fund.

Details of budget allocation affected are shown in Table 9.3 below.

Table 9.3: Budget Allocation Department Budget Allocation Details of Account Elections Office Office of the Attorney General 110101-10999-070601 Preparation for General Election 103101-03101-840101 Drafts Constitution Consultation The audit noted that there was no Cabinet approval for the transfer of the $1,000,000.
Furthermore, the same amount was reflected in the Elections Office’s General Ledger as its expenditure even though the expenditure was related to the Office of the Attorney General.

Hence, the 2013 expenditure in the Elections Office Agency Financial Statements was overstated by $1,000,000.

Proper approval was not followed in the transfer of the above fund, hence, unauthorised.

Recommendation Any redeployment of funds should be approved by Cabinet.
Management Comments We acknowledge your comments and will ensure that in future we will seek Cabinet approval for transfer of funds to another department.

Funds were transferred to accommodate cost of the printing and consultation expenses for the 2013 constitution.

This was done to allow unhindered operation during the preparation of the constitution.

The Solicitor General’s office provided proper acquittals and no funds were misused.

All such documents have already been provided.


9.5 Overdrawn Operating Trust Fund Accounts Trust Fund Accounts comprises monies, which are not the property of the state and not utilized for the purpose of Government.

In addition, trust money is to be accounted for separately from public money and other money,2 and by convention should always have credit balance.
Thus, the trust fund accounts should not at any time be overdrawn.3 As at 31 December 2013, the Office Operating Trust Fund Accounts had an overdrawn balance of $509,865 compared to $495,101 in 2012.

Refer to Table 9.4 for details.
Table 9.4: Overdrawn Trust Fund Accounts Allocation Description OPR Current Year Public Rental Board 1-10101-10999-840602 Withholding Tax 1-10101-10999-861101 1-10101-10999-861105 1-10101-10999-861106 Water rates 1-10101-10999-861201 1-10101-10999-861202 1-10101-10999-861204 1-10101-10999-861601 MAINT – SUVA Fiji Care Insurance CMLA LICI 2013 ($) 0 10.00 0 0 0 (29.56) 0 0 2012 ($) (84.00) 10.00 69.00 (70.00) (789.83) (29.56) 165.25 (12.50) 2 Sections 25 (1) of the Financial Management Act 2004 3 Finance Circular No 4/98 of 30/03/98 Elections Office Section 09: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Allocation Description 1-10101-10999-861901 1-10101-10999-861902 1-10101-10999-861920 1-10101-10999-861921 1-10101-10999-861924 MPAISA Total A/C Tax Arrears/PAYE Deposit Recoverable Employees FNPF Employers FNPF 2013 ($) 2012 ($) 398,028.45 398,078.23 (6,373.56) 0 111,675.75 0 0 98,886.91 5,419.20 (252.00) 509,684.64 495,101.14 These overdrawn balances were brought forward from previous years.
The trust accounts with zero balances highlighted in the table above were approved for write off by the Minister for Finance.

Despite the write off, the overdrawn balance continued to increase from $495,101 in 2012 to $509,685 in 2013 mainly due to the increase in Employees FNPF account.

The overdrawn of Operating Trust Fund Account may have resulted from incorrect journal entries passed to these accounts or through incorrect postings.
The above findings indicate that monthly reconciliations and independent checks by supervisors were not effectively carried out which may lead to substantial amount of write offs.

Recommendations  The Accounting Head should ensure that the Trust Account is not overdrawn at any point in time in accordance with Finance Circulars 4/98.

 The Accounting Head should ensure that all FNPF deductions are credited to the trust accounts.
 The Accounting Head must investigate the overdrawn (debit) trust fund accounts and take appropriate action.

 The internal control procedures in the Accounts Sections, specifically supervisory checks should be strengthened to avoid such discrepancies.
Management Comments We acknowledge your comments and we have established a system that a General Ledger report on the trust fund account will be printed and attached to the payment voucher for verification before the payment is passed and certified for payment.

Established staffs FNPF deductions was posted under the Prime Minister’s Office trust fund account in the previous years since Fijian Elections Office payments was managed by the Principal Accounts Officer at the Prime Minister Office.
We will reconcile the overdrawn amounts with the PM Office Trust Fund Account to regularise the debit balance and request for write off for unreconciled amounts.
Elections Office Section 09: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 9.6 Long Outstanding Revolving Fund Accounts The Accounts Officer is responsible for the safekeeping and proper maintenance of all accounting records or documents.4 The audit of Revolving Fund Account records noted that $50,751.58 had been carried forward from previous years which have not been cleared.

Refer to Table 9.5 for details.


Table 9.5: Revolving Fund Account Balances Allocation Description 1-10101-10999-560302 1-10101-10999-570101 1-10101-10999-570301 Total Employee Advances Prepaid Expenses Advances 2013 ($) 50,607.22 0 144.36 50,751.58 2012 ($) 51,683.35 1,730.00 7,874.50 61,287.85 The Revolving Fund Account balance declined by $10,536.27 or 17% in 2013 due to the write-off of $9,604 by the Minister of Finance.
Most of the employee advance balances had been carried forward since 2006 and that the proper records were not maintained by the previous Accounts Officer.

This account balance is unnecessarily overstating the Revolving Fund Account.

This issue was highlighted in the previous audit reports, however, no corrective action have been taken by the Office to clear these balances.

Recommendation The Accounting Head must investigate these long outstanding balances and take appropriate action.
Management Comments Advances issued to staff was manually done and updated in the Finance system from 2006-2011.

In 2012 the FMIS system was established in the Elections Office.

Accountable advance issued to staff in 2012 and 2013 was updated and reconciled with the amounts issued to staff.
Previous outstanding amount cannot be reconciled due to improper documents and request for write off of the outstanding amount of $50,607.22 will be submitted this year to Ministry of Finance as advised by the Principal Accounts Officer in FMIS.

Submission made in 2013 did not include the allocation 1-10101-10999-560302- $50,607.22 The outstanding advance of $144.36 was advance issued to officers conducting voter display in the month of December 2013.
Acquittals were submitted and journalised in the month of January 2014.
4 Elections Office Finance Manual 2011 – Section 18.1.3 Elections Office Section 09: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 10 Judiciary Role and Responsibilities The Judiciary Department is responsible for enhancing the quality of justice in the community by ensuring an effective and accessible court system and as the cornerstone of justice; the court system will uphold the principles of equality, fairness and access while protecting the dignity and rights of all members of the community.
Table of Contents PART A: 10.1 10.2 10.3 10.4 10.5 PART B: 10.6 10.7 10.8 10.9 10.10 10.11 FINANCIAL STATEMENT..................................................................................................................................... 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 1 Appropriation Statement ....................................................................................................................................... 2 Statement of Losses ............................................................................................................................................. 3 Trust Fund Account Statement of Receipts & Payments ...................................................................................... 3 AUDIT FINDINGS .................................................................................................................................................. 3 Arrears of Revenue ............................................................................................................................................... 3 Acting Appointments Contrary to PSC Regulations .............................................................................................. 5 Pending Court Cases ............................................................................................................................................ 8 Under-utilisation of Funds ..................................................................................................................................... 9 Fixed Asset Register not Updated ...................................................................................................................... 10 Capital Construction Works ................................................................................................................................. 11 10.11.1 New Contract ............................................................................................................................................... 11 Unofficial Use of Government Vehicle ................................................................................................................ 12 10.12 PART A: FINANCIAL STATEMENT 10.1 Audit Opinion The audit of the 2013 accounts of the Judiciary Department resulted in the issue of an unqualified audit report.
Management attention however was drawn to the Department that it owed arrears of revenue totalling $11,968,031 as at 31 December 2013 of which arrears of revenue of $9,485,449 are being considered for write off.

10.2 Statement of Receipts and Expenditure The department collected revenue totalling $4,174,717 and incurred expenditure totalling $21,567,478 in 2013.Refer to Table 10.1 for details.
Table 10.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Court Fines Court Fees Others Total State Revenue Judicial Department 2013 ($) 2012 ($) 2,651,192 1,304,990 5,462 3,961,644 2,284,711 1,261,619 15,525 3,561,855 Section 10: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Agency Revenue Miscellaneous Revenue from Surveys Total Agency Revenue Total Revenue EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) The department’s total revenue increased by $444,140 or 12 % in 2013 compared to 2012 due to the increases in court fees and fines.
The total expenditure increased by $3,944,060 or 22% in 2013 compared to 2012 due to increases in expenditure for established staff and capital construction.

10.3 Appropriation Statement The department incurred expenditure totalling $21,567,478 in 2013 against the revised budget of $22,706,577, resulting in a savings of $1,139,100 or 5%.

Details of expenditures against the budget estimates are provided in Table 10.2.
Table 10.2: Appropriation Statement for 2013 SEG Item Budget Estimate Changes Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Revised Estimate ($) ($) (702,000) 15,764,712 765,439 852,350 899,600 550,680 3,400 702,700 (1,330,805) 19,538,881 - (44,000) 176,000 5,445 - (766,250) Actual Expenditure ($) 14,898,751 650,141 810,798 878,698 512,491 - 683,933 18,434,812 Lapsed Appropriation ($) 865,961 115,298 41,552 20,902 38,189 3,400 18,767 1,104,069 ($) 16,466,712 765,439 896,350 723,600 545,235 3,400 1,468,950 20,869,686 6,250,000 300,000 6,550,000 1,526,200 28,945,886 (5,035,696) 896,016 (4,139,680) (768,824) 1,214,304 1,196,016 2,410,320 757,376 (6,239,309) 22,706,577 1,213,784 1,194,477 2,408,261 724,404 21,567,477 520 1,539 2,059 32,972 1,139,100 Judicial Department Section 10: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In 2013, Cabinet approved the redeployment of $6,239,309 from the Department’s budget to other Ministries and Departments 10.4 Statement of Losses The Department recorded loss of money amounting to $4,126.95 in 2013.
 Small Claims Tribunal – one of the Sheriff Officers embezzled $1,826.95.

This was reported to Police and investigation was carried out.

The officer failed to pay the sum; hence the department paid.

 Domestic Court Suva – one of the officers embezzled $2,300.

This was reported to Police and investigation was carried out.

The officer failed to pay; hence the department paid the sum.
10.5 Trust Fund Account Statement of Receipts & Payments Judiciary fund and Legal Practitioners’ trust fund accounts are used to record the interest received from the trust fund kept by the individual legal practitioners.

Suitors, maintenance and sundries trust fund accounts are used to deposit and make payments pursuant to the orders made by the courts.

Table 10.3 outlines the trust fund account receipts and payments for the year.
Table 10.3: Trust Fund Account Statement of Receipts & Payments for 2013 Description RECEIPTS Judiciary Trust Fund Account Legal Practitioners Unit Fund Suitors Fund Maintenance Fund Sundries Fund TOTAL REVENUE PAYMENTS Judiciary Trust Fund Account Legal Practitioners Unit Fund Suitors Fund Maintenance Fund Sundries Fund TOTAL PAYMENTS Net Surplus/(Deficits) Opening Balance as at 1 January Closing Balance as at 31 December 2013 ($) 2012 ($) The trust fund account balance increased to $17.5 million in year 2013 compared to $15.6 million in 2012, an increase by $1.9 million or 12% due mainly to the increase in collections from suitors fund.
PART B: AUDIT FINDINGS 10.6 Arrears of Revenue The credit officer must promptly follow up accounts that fall due.
If the recovery is unsuccessful after one month, the following actions shall be taken: Judicial Department Section 10: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________   a demand notice for payment shall be sent to the debtor after his/her debt has been overdue for more than a month; if the account still remains unpaid after the first demand notice was issued, a final notice shall be issued demanding payment within fourteen days.1 If a final notice had been issued to one of the debtors listed, the Principal Accounts Officer may approve the case to be referred to the Solicitor General or the Small Claims Tribunal, after considering the cost implication and the probability of recovery.2 The Department’s arrears of revenue amounted to $11,968,031 as at 31/12/13.
Refer Table 10.4 for details.

Table 10.4: Arrears of Revenue Year Balance ($) 2008 10,574,640 2009 10,828,342 2010 10,970,177 2011 11,397,061 2012 11,341,730 2013 11,968,031 The arrears of revenue comprises of Court Fees, fines and cost to State.

The Department has established a Fine Enforcement Unit to manage the arrears of revenue.

Despite this exercise, the arrears of revenue for the Department remained substantial.

Refer Table 10.5 for Aging of Debtors.


Table 10.5: Aging of Debtors Age of Debtors Amount Less than 1 year 1-2 Years 2-5 years More than 5 years Total Debtors ($) 957,297.00 365,727.00 1,159,558.00 9,485,449.00 11,968,031.00 Percentage of Total (%) 7.999 3.06 9.69 79.26 100 79% of the arrears of revenue are aged more than 5 years.

Further delay in collecting the outstanding revenue increases the risk of revenue not likely to be collected which may require writing it off.
Recommendations  A thorough review of the arrears should be undertaken and irrecoverable arrears should be considered for write off.

 The Chief Registrar should continue to seek Ministry of Finance’s assistance in enforcing appropriate actions to collect arrears of revenue since the fine is enforced by Court but the Police are warranted to collect the fines.
1 Judicial Department Finance Manual 2011 –s 9.2.1 2 Judicial Department Finance Manual 2011 – s 9.2.4 Judicial Department Section 10: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The Arrears of Revenue for the department arises due to the non-payment of fines and court costs.

Fines are imposed by the court are generally to be paid within fourteen (14) to twenty one (21) days.
Warrants are issued if these fines are not paid within the specified time frame.

The execution of warrants is undertaken by the Fiji Police Force.

It is pertinent to note that Judicial Department has neither authority nor control over the execution process, this is mainly vested with the Police Department.

If only Police is able to execute the warrant, then Arrears of Revenue will decrease.

Otherwise it will keep increasing.

The debtors of Judicial Department are the accused who appear in court.
They are fined.

If a fine is not paid a committal warrant is issued and handed over to Police.

There is no procedure to issue demand notice or take them to Solicitor General or SCT as they are apprehended only, they either pay the fine or are sent to prison.

The department has set up a FEU and hired rental cars to assist Police to go and execute warrants.

Some arrears have been cleared but it is difficult to collect the very old ones.
In most cases the accused seems to have changed their address and in some instances they might have passed away or migrated as the cases are quite old.

A team have been set up whereby all arrears are entered in the database.

Massive checks of all files are being carried out and the actual dollar value entered in the system.

Once this exercise is completed, recommendation will be made to Ministry of Finance for write off of irrecoverable Arrears aging more than 5 years.
The department has requested Ministry of Finance for vehicles whereby Police Officers can go and execute warrants.

There is also a Fine Enforcement Unit (FEU) set by the department that assists Police in arresting of the defaulters.

As already advised department has no authority over the execution process but can assist by means of providing resources such as manpower and vehicles.

Comments from the Auditors are noted.


The Principal Accountant depends on the figures provided by each court registry which is compiled and reflected in the quarterly returns.

The Court Registries maintain the records and the figures they provide to Accounts Section should be accurate at all times because the same figures are transferred to the quarterly return.

Accounts Section relies on each Officer in charge to provide the correct information.
The variance was only $500.00 whilst it was verified in the presence of the Audit Team and not $153,117.31.

The variance is based from the new records that were compiled early this year.

The Arrears of Revenue Returns for the last quarter i.e.

December 2013 were calculated from the old record books which were submitted to Accounts.

These figures could not be relied upon as it did not match with the source documents, thus a new set of records were prepared.
Apparently only the registry copy is the one where amendments take place upon receipt of the paid documents.

10.7 Acting Appointments Contrary to PSC Regulations The Public Service Commission in its circular dated delegated the appointment of officers on acting position and advertisement of the vacant positions as the earliest.

The Civil Service will not have acting appointments and temporary relieving officers beyond 3 months after 30th April, 2012.
All acting appointments will be strictly for up to three (3) months or the date the appointment is revoked whichever is earlier.

Extensions will only be granted in cases where the post has to be re- advertised due to lack of applications from suitable candidates.

Appointments to cease by Wednesday, 29th February 2012.

[2] The appointment of acting was re-delegated to Permanent Secretaries and Heads of Department on 29/10/12.
[3] The audit noted that acting appointment continued for officers contrary to PSC circular No 08/12 and 14/12.

Refer to Table 10.6 below for details.

[3] PSC Circular No.


70/2012 Judicial Department Section 10: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 10.6: Acting Appointments Acting Since from Acting position Name Kelerani Koroivueti Wati Vueti Shobna Lata Pretty Prasad Susau Mukund George Chand Jasima Bano Claude Whippy Maria Naceva Hirdeshni Kumari Losana Sanu Maria Dimaimuri EDP No.
63458 2006 92221 29/3/12 91567 07/02/12 Mid 2012 61020 49014 Late 2012 64163 Mid 2009 91848 Mid 2011 64165 Late 2012 92965 Late 2012 91351 Mid 2011 91345 Late 2012 91893 Late 2012 Secretary Secretary Secretary Senior Administration Officer Court Reporter Senior Administration Officer Administration Officer Assistant Statistician Court Reporter Court Officer Court Reporter Court Officer Period Of Acting3 More than 7 years More than 2years More than 2 years Almost 2 years More than 1 ½ years More than 5 years More than 3 years More than 1 ½ years More than 1 ½ years More than 3 years More than 1 ½ years More than 1 ½ years There was no evidence to indicate that the above positions have been advertised.
Appointments contrary to Public Service regulations are unauthorized.

Recommendation The Manager Corporate Services should ensure that Public Service Commission regulations are strictly adhered to and vacant positions are advertised and filled as soon as practical.

Management Comments Name of the Officer EDP No.


Kelerayani Koroivueti 63458 Acting since from 2006 Acting position Period Acting Secretary More than 7 years Wati Vueti 92221 29/3/12 Secretary More than 2years 3 As at 16 July 2014 Judicial Department of Comments from the Department Commenced acting as secretary from 19/6/06.

Acting was ceased in April 2009 due to suspension of Judicial Officers’ appointments as a result of the abrogation of the Constitution.

Acting re-activated from 30/11/09.


She requested for regularization of acting appointment but it was declined as there was a break in her service from 17/6/09 to 30/11/09 which fell short of the six months continuous acting criteria.

In 2011 she was posted to Family Court to act secretary to RM Ms Mua.

Post advertised on 31/10/12.

Staff Board’s decision to re-advertise there were no suitable the post, applicants.
Advertised the post again on awaiting Chief Registrar’s endorsement on Staff Board’s recommendation.

Commenced acting on 29/3/12.

Post substantively filled by Ms Anjani Lata – outside applicant.

FPSOC dated 31/10/12.

Upon the promotion of Ms Lata, Ms Vueti’s acting was to expire 30/01/2014, Section 10: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name of the Officer EDP No.
Acting since from Acting position Period Acting of Comments from the Department from 31/5/13.

RM Ms Hamza insisted to retain Ms Vueti as her secretary.

Ms Vueti’s acting was then tagged to in another vacant secretary post Magistrate’s Court at time.

the post again on Advertised 30/01/2014, awaiting Chief Registrar’s endorsement Board’s recommendation.

Staff that on Shobna Lata 91567 07/02/12 Secretary More than 2 years [broken acting appointments and not only on secretary’s post].
Pretty Prasad 61020 Mid 2012 Senior Administration Officer Almost 2 years Susau Mukund 49014 Late 2012 Court Reporter More than 1 ½ years George Chand 64163 Mid 2009 Senior Administration Officer More than 5 years (13 months) Jasima Bano 91848 Mid 2011 Administration Officer More than 3 years (15 months) Claude Whippy 64165 Late 2012 Assistant Statistician More than 1 ½ years (7 months) Judicial Department Commenced acting on this post on 7/2/12.

Acting ceased from 31/8/12 to 27/9/12 – overseas leave.
Acting re- activated to 31/1/13.

from 1/10/12 Again ceased on 22/11/13.

Acting as Court Reporter from 25/11/13.

Again ceased from 30/6/14 – maternity leave.

Advertised the post again on 30/01/2014, awaiting Chief Registrar’s endorsement on Staff Board’s recommendation.

Commenced acting on 1/8/12.

Post advertised on 30/04/13 (FPSOC).

SB on 13/3/14.

Chief Registrar’s decision that post be re-advertised.

Will advertise in the next vacancy circular.

Commenced acting on this post from 22/10/12.


Post advertised on October 2012, Staff Board decided that the post be re-advertised since there were no suitable candidates for the post.

Post advertised on 31/1/14.

Awaiting Chief Registrar’s decision on Staff Board recommendation.

Commenced acting as SAO –Asset from 24/6/13 after Mr. Salen Sharma was posted to PSC.

Prior to that he was acting on Admin Officer (Project Post) which was withdrawn by Ministry of Finance on 31/12/13.
The SAO post will be advertised in the next vacancy circular.

Commenced acting as AO from 4/4/13.

The post holder is still acting SAO.

Prior this Fine Commenced acting on post from Enforcement Project 01/01/14.

this acting to appointment, he was acting Executive Officer on a Public Relations Project Unit which was withdrawn by Ministry of Finance on 31/12/13.
Section 10: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name of the Officer Maria Naceva EDP No.
Acting since from 92965 Late 2012 Court Reporter More than 1 ½ years Acting position Period Acting of Comments from the Department Hirdeshni Kumari 91351 Mid 2011 Court Officer More than 3 years [broken acting appointments and not only on Court Officer’s post] Losana Sanu 91345 Late 2012 Court Reporter More than 1 ½ years Maria Dimaimuri 91893 Late 2012 Court Officer More than 1 ½ years Acting commenced on 22/10/12.

Post advertised on 31/1/14.


Awaiting Chief Registrar’s decision on Staff Board’s recommendation.

Been acting Court Officer at High Court, Suva since the post holder has been acting Senior Court Officer I since October 2010.

Awaiting Chief Registrar’s decision on Staff Board recommendation on the SCO I post.

Acting commenced on 22/10/12.

The post was advertised on October 2012, no suitable candidates based on the old MQR.

Post advertised on 31/01/14.


Awaiting Chief Registrar’s decision on Staff Board recommendation.

Acting commenced on 5/11/12.

Post was advertised March 2013, decision of the SB to re-advertised the post since there were no qualified candidates.

Post advertised again on 31/01/14 Staff Board completed.

(FPSOC).

Awaiting Chief Registrar’s decision on Staff Board recommendation.
10.8 Pending Court Cases The Judiciary Department is responsible for enhancing the quality of justice in the community by ensuring an effective and accessible Court System and as the cornerstone of Justice.4 The audit of Court records noted that there is a substantial number of pending cases under each category of Court.

Refer Table 10.7 for details.


Table 10.7: Pending Court Cases Court Supreme Court Court of Appeal High Court Magistrates Court Family Court Small Claims Tribunal Tax Court Other Tribunals Cases Initiated 21 209 4,704 94,173 9,397 8,822 20 13 Cases Disposed 25 98 3,839 59,485 9,848 8,662 40 23 Pending Cases 27 601 4,951 136,634 2,863 1,303 21 4 The table shows that highest number of pending cases was for Magistrates Court (136,634) followed by High Court (4,951) and then Family Court (2,863).
Lack of proper scheduling of cases could have resulted in substantial number of outstanding cases.

4 Judicial Programme Statement Judicial Department Section 10: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Chief Registrar must ensure that:  Cases are appropriately scheduled so that these are dealt with in a timely manner.
 An analysis of all the outstanding cases is carried out and strategies developed to clear the backlogs.

 All Courts should be well resourced to allow the cases to be heard on schedule.

Management Comment No comment received from the Department.

10.9 Under-utilisation of Funds The proper management of expenditure is fundamental to ensuring value-for-money in delivering services to the community.
As well, having cost-effective internal controls within the purchasing and payments system plays an important part in ensuring that wastage of funds, over-expenditures and corruption do not occur.5 The budget estimates and budget statements are to be prepared as far as practicable in accordance with internationally accepted standards.6 The Public Service carries out the Government's policies and programs effectively and efficiently and with due economy.7 An original budget of $4.5 million VEP in 2013 and $2 million VEP in 2012 were allocated to the Department for the extension of Lautoka High Court.
However, funds were not utilised and were redeployed8 to Ministry of Provincial Development and Disaster Management at the end of the year.

It was also noted that an original budget of $350,000 VEP was allocated to the Department for the relocation of Ba Magistrate Court for the year 2013.

However, only $6,043 was utilised and sum of $343,957 VEP was redeployed9 to Ministry of Provincial Development and Management at the end of the year.
There is urgency in the relocation of Ba Magistrate Court as the current location has been faced with flooding problems leading to damages to office furniture, equipment and documents.

Lack of proper planning and commitment by the Department is evident as funds allocated for capital works in the 2012 and 2013 budget were not utilised.

The delay in the extension and relocation of office may lead to further damages to office and its resources should there be any natural disasters.
Recommendation The Chief Registrar should ensure funds allocated in the budget are properly utilised for its purpose.

5 Judicial Finance Manual 2011 – Part 2 Introduction - Expenditure 6 Financial Management Act 2004 – Section 13 (3) 7 General Order 2011- Annexure II- Public Service Values- No.4 8 Cabinet Decision No.373 of 17/12/13.

9 Cabinet Decision No.373 of 17/12/13.


Judicial Department Section 10: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The funds requested were not unnecessary funds but it was requested for a purpose.

It was rather unfortunate that it was not utilised for the purpose it was requested for.

No department will waste time and energy requesting for funds as they know the government is very much committed.
It is not easy to carry out a project even though funds are allocated.

There are so many factors involved.

As for relocation of Ba Court, we had to first secure a land which we did in year 2013.

This land was secured on 20/06/13 from the Divisional Surveyor Western and endorsed by the Commissioner Western and Provincial Administrator Ba.

It is being envisaged that works may commence in 2014.
As for the extension of Lautoka High Court, the same is anticipated in 2014 as Tender works were being completed in 2013 which did not allow us ample time to commence with the project.
10.10 Fixed Asset Register not Updated All assets acquired with a cost in excess of $2,000, shall be recorded in the assets module of the Financial Management Information System (FMIS) or a fixed assets register for those without the FMIS.10 Each agency is required to maintain an asset register for assets valued at $2,000 and above.

Assets that are similar in nature may be grouped under a specific class of assets.
The description in the asset register should include the total quantity of assets and where applicable, the individual and total cost.11 The audit noted that capital items purchased totalling $62,127 were not recorded in the fixed assets register.

Refer to Table 10.8 below for details: Table 10.8: Fixed Asset Purchased During the Year Date Vendor Cheque No.
Item 20/02/13 Aldex Trading 72531 19/12/13 Sharma Music Centre EFT 415 20/12/13 Vinod Patel and EFT 428 Company Ltd 15 dark stained cabinets with glass for Magistrate Court and High Court Purchase of Audio system for High Court # 2, Suva, High Court Lautoka and High Court # 5 & 8, Suva Purchase of new Office Equipment valued at $6,454.80 however following fixed asset items were not recorded in:      3 medium back chairs- 5 steel racks with shelves 1 Ivan bench chair 1 Hunter blinds 3 M/Pedestral Aldex Trading 17/12/13 TOTAL 78236 Purchase of 7x4 way workstations for Nasinu Court Cost Price ($) 7,800.00 37,850.00 1,050.00 1,650.00 299.00 328.80 199.00 12,950.00 62,126.80 The above indicates the lack of control and management over fixed asset and there is risk of theft and misappropriation of assets.
10 Finance Instruction 2010 – Section 46 (1) 11 Judicial Finance Manual 2011 – Section 11, Subsection 11.5.17- Schedule 1 Judicial Department Section 10: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations   The Chief Administration Officer should ensure that fixed assets are recorded in the Fixed Assets Register.

The Department should strictly comply with section 46 of Finance Instruction 2010.
Department’s Comments The Fixed Assets Register will be updated as recommended.

The Department will strictly comply with section 46 of Finance Instruction 2010.

10.11 Capital Construction Works Government Tender Board (GTB) in its meeting No 23/2011 held on 13/09/11 awarded the tender for the Renovation of Courts & Facilities Phase 1 and 2 to Western Builders Ltd at the total cost of $997,604.84 (VIP).

GTB in its meeting No.


2/2012 held on 09/02/12 granted a further approval for additional works required amounting to a total cost of $34,298.37 (VIP) and on 23/02/12, the Minister of Finance granted a retrospective approval amounting to $77,421.43.

GTB in its meeting No.

22/2012 held on 18/9/12 approved to extend the scope of work for phase 2 amounting to $113,799.22.

Thus the revised cost for the project was $1,223,123.86 (VIP).
In 2013, as per Ministry of Finance Memorandum dated 25/04/2013, the Acting Prime Minister granted a retrospective approval amounting to $602,149.64 for additional works for phase 2 of the project.

Thus, the revised cost for the project was $1,825,273.50 (VIP).

Furthermore, GTB in its meeting No.

08/2013 held on 16/4/13 approved to award the tender for the construction of the New Tribunal Court No.2 and Registry at the Government Buildings amounting to $148,637.37 (VIP) to Western Builders Limited.
Hence, a total sum of $1,973,910.87 for capital works was awarded to Western Builders.

10.11.1 New Contract The Department was advised by the Ministry of Finance that:  Retrospective approval has been granted to engage the contractor, Western Builders Ltd for additional works for Phase II of the project amounting to FJD$602,149.64 (VIP) inclusive of the 10% contingency sum.
 Given the project valuation has increased dramatically (given various approvals) from FJD$997,604.84 (VIP) to FJD$1,825,273.50 (VIP); the Agency to formulate a new contract with revised performance bond in reflection to the revised contract sum.12 The audit noted that the Department did not formulate a new contract as advised by the Ministry of Finance.

The above indicates the lack of control in the management of the project.
There is lack of accountability without a signed contract as the contractor is left to dictates the contract works at its 12 Ministry of Finance Memorandum dated 25/04/2103, Retrospective Request for Additional Works to Government Building Phase II Renovation Works.

Judicial Department Section 10: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ own will and time.
This may greatly contribute to the considerable delay in the project completion and overpayment.

Recommendations  The Accounting Heads should ensure that a contract is formulated for all contract works.

 Disciplinary action should be taken against the project manager.

Management Comment All contracts are kept by Project Officers.

Accounts Section is responsible for the payment and this is done upon the approval of the Government Tender Board.
To our understanding everything is in order thus the approval granted.

We always ensure that payments are made correctly, on time and within the approved amount.

Nevertheless, this work was carried out under the DBGA’s instructions which were issued on 21st November 2012 to Western Builders to carry out variation works under Phase II – Renovations to High Court and Facilities.

This therefore did not require an additional contract.
10.12 Unofficial Use of Government Vehicle As per Section 10 of the Agreement of Service between the Government and Mr. Anthony Gates, an annual taxable motor vehicle allowance of $15,000 should be paid to him in fortnightly instalments.

Despite being paid fortnightly motor vehicle allowance, the Chief Justice uses the government vehicle, registration no GN 802 for his personal commitments.

The vehicle was mostly used to pick and drop the Chief Justice for his morning walk, lunch and after work.
Refer to Table 10.10 below for examples.
Table 10.10: Unofficial Use of Government Vehicle Date Time Discrepancies Vehicle Registration No GN 802 LR 534 14/01/2013 04/03/2013 22/06/2013 23/10/2013 11/11/2013 11/03/2013 12/03/2013 2.40pm 7.45am 1.05pm 4.25pm 7.20pm 7.45 am 7.20pm 4am GN 930 16/12/2013 7.45am 17/12/2013 1.25pm 2.45pm 4am 7.45am 1.25pm 2.05pm 8.10pm  Pick and drop body guard for Chief Justice  Pick up for Chief Justice  Pick Chief Justice from Government and drop at Domain for lunch, pick from Domain and drop at Government Buildings  Drop off Chief Justice at Domain and Park Car at Government Buildings  Pick Chief Justice from Government Buildings and drop off at Domain  Pick up for Chief Justice.
 Dropping off of Chief Justice’s bodyguard.

 Pick up for Chief Justice’s bodyguard for Chief Justice’s morning walk, and changing of clothes and return.

 Pick up Chief Justice from Domain, take Chief Justice for administration run to Market and back to Domain then to Government Buildings.

 Drop off and pick up Chief Justice for lunch from Government Buildings to Domain  Drop off Chief Justice’s laundry from Government Buildings to Domain.
 Pick up for Chief Justice’s bodyguard for Chief Justice’s morning walk, change clothes and return to Government Buildings  Pick up for Chief Justice from Domain  Drop off Chief Justice to Domain for lunch.

 Pick up Chief Justice from Domain for Chief Justice’s Bank run.

 Drop off Chief Justice and bodyguard Domain and Laucala Beach respectively.
Judicial Department Section 10: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Time Discrepancies Vehicle Registration No 20/12/2013 4am  Pick up Chief Justice’s bodyguard for Chief Justice’s morning walk, 8.20am 1.40pm 4.55pm change clothes and return to Government Buildings  Pick up for Chief Justice.

 Drop off and pick up for Chief Justice’s from Government Buildings to  Domain back to Government Buildings for lunch.
Transporting Chief Justice from Government Buildings to Prouds and then to Domain for Chief Justice to change clothes.

27/12/2013 1.40pm  Drop off and pick up of Chief Justice for lunch The issue was raised in previous audit and such practice continues to lead to extravagant and unnecessary expenditures incurred by the Department.
Recommendation The Chief Registrar should advise Chief Justice that government vehicle are to be used for official purposes only as he has already being paid with motor vehicle allowance.

Management Comment An official vehicle is assigned to Hon.

CJ (GN 802) for his daily runs.

The Hon.

CJ had approval from the Office of the President, to be allocated with an official vehicle which is above 3 litres.

The assigned bodyguard is picked up by Hon CJ’s driver everyday to go for Hon.
CJ’s morning walk from Mon-Saturdays except on Sundays.

Both the driver and the bodyguard are being paid meal claims and overtime for the past years.
Judicial Department Section 10: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 11 Legislature Department Role and Responsibilities The Legislature Department ensures provision of a well maintained, secured environment and facilities to be used as offices and venues for meetings, workshops and dialogues, etc, by ministries & departments and other government agencies as well as accommodating visits by students, public at large and visiting dignitaries from abroad.
It provides the secretariat which consists of administrative and support staff that service the daily meetings of the Public Accounts Committee.
Table of Contents 11.1 11.2 11.3 PART A: FINANCIAL STATEMENT .................................................................................................................................... 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 1 Appropriation Statement ....................................................................................................................................... 2 PART B: AUDIT FINDINGS ................................................................................................................................................. 2 Expenditure Ledger Not Maintained ...................................................................................................................... 2 Overpayment of Sitting Allowance - Public Accounts Committee ......................................................................... 3 11.4 11.5 PART A: FINANCIAL STATEMENT 11.1 Audit Opinion The audit of the 2013 accounts of the Legislature Department resulted in the issue of an unqualified audit report.
Management attention was however drawn to the accuracy of expenditure in the Statement of Receipts and Expenditure as the department did not reconcile the expenditure recorded in the FMIS general ledger as no expenditure ledger was maintained.

11.2 Statement of Receipts and Expenditure The Legislature Department recorded revenue totalling $2,984 and incurred expenditure totalling $1,025,906 in 2013.
Table 11.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Legislature Department 2013 ($) 2012 ($) 152 2,832 2,984 136 167,874 168,010 176,666 214,300 98,352 175,722 Section 11: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Travel & Communications Maintenance & Operations Purchase of Goods & Services Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 56,478 116,041 115,427 305,508 984,420 2012 ($) 38,030 97,249 25,922 291,585 726,860 - - 41,486 1,025,906 371,035 371,035 97,710 1,195,605 Total expenditure decreased by $169,699 or 14% in 2013 as the Department did not utilise funds allocated for capital expenditure during the year due to delay in the tender process.
11.3 Appropriation Statement The Department incurred a total expenditure of $1,025,906 in 2013 against the revised budget of $1,879,549 resulting in a savings of $853,643 or 45%.

Details of expenditure against the budget estimate are provided in Table 11.2.
Table 11.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Special Expenditures Total Operating Expenditure Capital Expenditure Capital Construction Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 175,712 168,305 67,000 165,100 113,500 300,000 989,617 Changes ($) - 46,000 (9,000) (45,000) 2,000 6,000 - 1,000,000 1,000,000 246,800 2,236,417 (310,320) (310,320) (46,548) (356,868) Revised Estimate ($) 175,712 214,305 58,000 120,100 115,500 306,000 989,617 689,680 689,680 200,252 1,879,549 Actual Expenditure ($) 176,666 214,300 56,478 116,041 115,427 305,508 984,420 - - 41,486 1,025,906 Lapsed Appropriation ($) (954) 5 1,522 4,059 73 492 5,197 689,680 689,680 158,766 853,643 In 2013, Cabinet approved the redeployment of $356,868 from the Department’s budget provision to Ministry of Rural and Maritime Development.
PART B: AUDIT FINDINGS 11.4 Expenditure Ledger Not Maintained All payments, including VAT, must be immediately recorded in the Financial Management Information System (FMIS) and an Expenditure Ledger1.
1 Finance Instruction 2010 – Section 15 Legislature Department Section 11: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.2 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.3 The Department did not maintain an expenditure ledger in 2013.
As a result, the Department could not reconcile its record with the expenditure in the general ledger system4 maintained by the Ministry of Finance.

Audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Department should maintain an expenditure ledger and reconcile the amount in its ledger to the expenditure recorded in the FMIS general ledger on a monthly basis.
Department’s Comments The Accounts unit has not maintained the expenditure ledger since 2007.

However, the Accounts Officer is maintaining a system generated Disbursement Report for all expenditure in 2014.

11.5 Overpayment of Sitting Allowance - Public Accounts Committee The Public Accounts Committee for the year 2013 consists of 6 members including a Chairman, a Deputy Chairperson and 4 other members.
The function of the Committee is to examine Government accounts in respect of each financial year and any report of the Auditor-General on such accounts submitted to the Minister pursuant to section 167 (7) of the Constitution.5 The Committee must keep its own minutes and such minutes must be included in its reports under regulation 5.6 A member of the Committee is entitled to $200 sitting allowances if the Committee sits for 6 hours or more in a day, and $150 sitting allowance if the Committee sits from 4 to 6 hours in a day.
No allowance shall be payable if the Committee sits for less than 4 hours in a day.7 Despite the above approve rate, the audit noted the following anomalies in the payment of sitting allowances to the Public Accounts Committee Members;  Members of the committee were paid $200 sittings for less than six (6) hours in a day.

As a result, the sitting allowances for these members were overpaid.

Refer Table 11.8 for details.

Table 11.8: Overpayment of Sitting Allowance Date Chq No.
Payee Particulars Hours Paid 25/10/13 22054 PAC Member Arrive late on 22/10/13 at 9.05am 6 Amoun t Paid ($) 200 Actual Hours 5 hrs.

To be Paid ($) 150 Over- payment [1]($) 50 2 Legislature Department, Finance Manual, 2011 - Section 16.3.1 3 Legislature Department, Finance Manual, 2011 - Section 16.3.2 4 Financial Management Information System controlled by Ministry of Finance.
5 Audit (Public Accounts Committee) Regulations 2007 – Section 3 6 Audit (Public Accounts Committee) Regulations 2007 – Section 7 (6) 7 Audit (Public Accounts Committee) Regulations 2007 – Section 9 [1] Overpayment to Public Account Committee Members Legislature Department Section 11: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Chq No.
Payee Particulars Hours Paid Amoun t Paid ($) 08/11/13 22107 08/11/13 22107 08/11/13 22107 08/11/13 22107 2 PAC Member 1 PAC Member 1 PAC Member 2 PAC Member 2 14/11/13 22133 Chairman 14/11/13 22133 14/11/13 22133 14/11/13 22133 14/11/13 22133 21/11/13 22148 21/11/13 22148 21/11/13 22148 21/11/13 22148 29/11/13 22177 29/11/13 22177 29/11/13 22177 12/12/13 22217 PAC Member 1 PAC Member 1 PAC Member 2 PAC Member 2 PAC Member 1 PAC Member 2 PAC Member 1 PAC Member 2 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 1 while meeting began at 8.30am to 2.30pm.
Arrive late on 06/11/13 at 8.39am while meeting began at 8.30am to 2.30pm.

Arrive late on 07/11/13 at 8.39am while meeting began at 8.35am to 2.35pm.

Arrive late on 01/11/13 at 8.45am while meeting began at 8.30am to 2.30pm.

Arrive late on 05/11/13 at 8.40am while meeting began at 8.35am to 2.35pm.

Left at 10.00am and returned at 12.00pm on 11/11/13 to attend ex- servicemen memorial parade while meeting began at 8.30am to 2.30pm.
Arrive late on 13/11/13 at 8.45am while meeting began at 8.35am to 2.35pm.

Arrive late on 14/11/13 at 10.00am while meeting began at 8.35am to 2.40pm.

Arrive late on 11/11/13 at 8.40am while meeting began at 8.30am to 2.30pm.

Arrive late on 14/11/13 at 8.55am while meeting began at 8.35am to 2.40pm.

Arrive late on 18/11/13 at 8.43am while meeting began at 8.30am to 2.30pm.

Arrive late on 18/11/13 at 9.12am while meeting began at 8.30am to 2.30pm.
Arrive late on 19/11/13 at 8.45am while meeting began at 8.30am to 2.30pm.

Arrive late on 19/11/13 at 8.40am while meeting began at 8.30am to 2.30pm.

Arrive late on 25/11/13 at 8.40am while meeting began at 8.35am to 2.35pm.

Arrive late on 27/11/13 at 8.40am while meeting began at 8.35am to 2.35pm.

Arrive late on 28/11/13 at 8.43am while meeting began at 8.30am to 2.30pm.

Arrive late on 12/12/13 at 8.45am while meeting began at 8.35am to 2.35pm.
6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Actual Hours 25 min 5 hrs.

51min 5 hrs.

56 min 5 hrs.

45 min 5 hrs.

55 min To be Paid ($) Over- payment [1]($) 150 50 150 50 150 50 150 50 200 200 200 200 200 4 hrs.

150 50 200 200 200 200 200 200 200 200 200 200 200 200 5 hrs.

50 min 4 hrs.

40min 5hrs.

50 min 5 hrs.

45 min 5 hrs.

47 min 5 hrs.

18 min 5hrs.

45 min 5 hrs.

50 min 5 hrs.

55 min 5 hrs.

55 min 5 hrs.

47 min 5 hrs.


50 min 150 50 150 50 150 50 150 50 150 50 150 50 150 50 150 50 150 50 150 50 150 50 150 50 Legislature Department Section 11: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Chq No.

Payee Particulars Hours Paid 12/12/13 22217 12/12/13 22217 12/12/13 22217 12/12/13 22217 PAC Member 2 PAC Member 2 PAC Member 2 PAC Member 4 Arrive late on 10/12/13 at 8.47am while meeting began at 8.30am to 2.30pm.
Arrive late on 11/12/13 at 9.04am while meeting began at 8.45am to 2.45pm.

Arrive late on 12/12/13 at 9.00am while meeting began at 8.35am to 2.35pm.

Arrive late on 09/12/13 at 9.00am while meeting began at 8.45am to 2.45pm.

6 6 6 6 Amoun t Paid ($) 200 200 200 200 Actual Hours 5 hrs.

43 min 5 hrs.

41 min 5 hrs.

35 min 5 hrs.


45 min To be Paid ($) 150 Over- payment [1]($) 50 150 50 150 50 150 50 Total 132 4,400 3,300 1,100  Members of the committee were also paid $200 and $150 for sittings less than four (4) hours in a day.

As a result these members were overpaid their allowances which have not been recovered.

Refer Table 11.9 below for details.

Table 11.9: Overpayment of Sitting Allowance Date Chq No.
Payee Particulars 29/11/13 22177 PAC Member 2 29/11/13 22177 PAC Member 1 21/11/13 22148 PAC Member 1 PAC Meeting on 26/11/13 began at 8.35am to 2.35pm but member left early at 10.30 am to attend a company board meeting.

PAC Meeting on 26/11/13 began at 8.35am to 2.35pm but member left early at 9.00 am to attend personal commitment at Holy Trinity Anglican School.

Arrive 8.43am and 11.30am interview for his daughter.
late on 21/11/13 at left early at to attend parent’s’ Hours Paid 6 AMT Paid ($) 200 Actual Hours 1hr.55 mins To be Paid ($) 0 Over- payment8 ($) 200 4 150 25 mins 0 150 6 200 2hr.47 mins 0 200 Total 550 0 550  The attendance sheets maintained for the committee did not have the provision for signing out when they complete a day’s cessions or when a member leaves the meeting early.

 On certain instances, the audit noted that all members do not sign in their time of arrival in the attendance sheets.
 Moreover late arrivals were not taken into account when paying the sittings allowances for the daily six (6) hourly meetings thus there were instances of overpayments as a result.

 Some members also did not record their time of arrival on the days they arrived late for the meetings.
Table 11.10 list such cases where the flat rate of $200 per day allowance was paid despite no time was recorded for arrival and departure even though the meeting minutes 8 Overpayment to Public Account Committee Members Legislature Department Section 11: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ revealed that members arrived late.
Given their late arrival and the meeting times in the minutes, the members would have been present for less than 6 hours.

Table 11.10: Allowances Paid for Late Arrival days as minuted Date Cheque No.
Payee Particulars Hours Paid Allowance Paid ($) 25/10/13 31/10/13 31/10/13 08/11/13 08/11/13 14/11/13 14/11/13 14/11/13 21/11/13 29/11/13 12/12/13 12/12/13 12/12/13 12/12/13 12/12/13 Total 22057 22079 22079 22107 22107 22133 22133 22133 22148 22177 22217 22217 22217 22217 22217 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 2 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 2 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 1 PAC Member 2 Meeting on 21/10/13 from 8.30am to 2.30pm Meeting on 28/10/13 from 8.35am to 2.35pm Meeting on 29/10/13 from 10.00am to 4.00pm Meeting on 05/11/13 from 8.35am to 2.35pm Meeting on 06/11/13 from 8.30am to 2.30pm Meeting on 08/11/13 from 8.35am to 2.35pm Meeting on 11/11/13 from 8.35am to 2.35pm Meeting on 12/11/13 from 8.35am to 2.35pm Meeting on 15/1113 from 8.40am to 2.40pm Meeting on 28/11/13 from 8.30am to 2.30pm Meeting on 06/12/13 from 8.40am to 2.35pm Meeting on 09/12/13 from 8.40am to 2.35pm Meeting on 10/12/13 from 8.30am to 2.30pm Meeting on 11/12/13 from 8.45am to 2.45pm Meeting on 09/12/13 from 8.45am to 2.45pm  In addition some payment vouchers were not certified by the Accounts Officer.
 The meeting times recorded in the attendance sheets that were used to calculate sitting allowances differs from those recorded in minutes of meeting.

Refer Table 11.11 for details.
Table 11.11: Discrepancy in Time of Meeting Date of Meeting Attendance Sheet (Meeting Hours) Minutes of Meeting (Meeting Hours) 28/10/13 05/11/13 08/11/13 11/11/13 12/11/13 14/11/13 22/11/13 06/12/13 09/12/13 10/12/13 8.35am – 2.35pm 8.30am – 2.30pm 8.35am – 2.35pm 8.45am – 2.45pm 8.40am – 2.40pm 8.30am – 2.30pm 8.30am – 2.30pm 8.30am – 2.30pm 8.40am – 2.40pm 8.45am – 2.45pm 8.30am – 2.30pm 8.35am – 2.35pm 8.30am – 2.35pm 8.30am – 2.30pm 8.30am – 2.30pm 8.35am – 2.40pm 8.40am – 2.40pm 8.40am – 2.35pm 8.45am – 2.45pm 8.30am – 2.30pm  The audit further noted that all filed minutes of meeting were not signed by Public Account Committee Secretary and Chairman.
Unsigned official minutes reduce the credibility of the minutes of meetings and create opportunity for unauthorised amendments.

Failure to record member’s time in attendance sheets increases the risk of inaccurate payment of sitting allowances resulting in overpayment of allowance.
Legislature Department Section 11: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The time recording system and processes for payments for siting allowances lack proper controls which have resulted in the overpayments.

Recommendations      The Accounting Head should instigate recovery of overpayment made to recover overpayment of sitting allowances.
The Accounting Head should ensure that Public Account Committee members are paid only for the hours they attend the meeting.

The Principal Administrative Officer should ensure that attendance register have the provisions for recording times for signing in and out for all meetings.

The Committee Secretariat should ensure that all members record their time of arrival and departure at each meeting.

The Committee Secretariat should ensure that all minutes of meeting are signed by the secretary and chairman.
Department’s Comments The Solicitor-General requested the Ministry of Finance Internal Audit Unit to conduct a special investigation into the PAC sitting allowance.

The report has been submitted by the team and the SG was requested to pursue the matter with the Court on the recovery of overpayment.

Since February 2014, the payment of allowances was prepared by the PAC Secretary (Hansard Reporter) and certified by the Principal Administrative Officer before processing payments.
Legislature Department Section 11: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 12 Office of Accountability and Transparency Role and Responsibilities The Office of Accountability and Transparency is a multi-faceted Office that will deal with freedom of information, code of conduct issues for public officials and other areas of law concerned with accountability, transparency and responsibility for public officials and institutions.
Table of Contents PART A: FINANCIAL STATEMENT ........................................................................................................................................ 1 12.1 Audit Opinion ............................................................................................................................................................. 1 12.2 Statement of Receipts and Expenditure .................................................................................................................... 1 12.3 Appropriation Statement ........................................................................................................................................... 2 PART A: FINANCIAL STATEMENTS 12.1 Audit Opinion The audit of the 2013 financial statement of the Office of Accountability and Transparency resulted in the issue of an unqualified audit report.
12.2 Statement of Receipts and Expenditure The Office incurred a total expenditure of $413,493 in 2013.

Refer Table 12.1 for details.
Table 12.1: Statement of Receipts and Expenditure for 2013 Description EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Total Operating Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) --- --- --- 64 801 412,500 413,365 128 413,493 40,020 --- 2,050 4,504 (698) 465,309 511,185 2,070 513,255 Total expenditure declined by $99,762 or 19% in 2013 due to the reduction of grant paid to the Fiji Human Rights Commission and redeployment of all staff away from the office.
The other recurrent expenditure incurred includes postal box rental and the telephone directory listing fees.

The operations of the office are yet to commence awaiting the promulgation or enactment of its governing regulations.

The annual budget provisions mainly consist of the grant to Fiji Human Rights Commission administered by the Office of the Prime Minister.
Office of Accountability & Transparency Section 12: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 12.3 Appropriation Statement The Office incurred expenditures totalling $413,493 against the revised budget of $652,694 resulting in a saving of $239,201 or 37%.

Details of expenditures against the budget estimates are provided in Table 12.2.
Table 12.2: Appropriation Statement for 2013 SEG Item Operating Expenditure Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) Changes ($) Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) 123,801 --- 21,800 44,600 34,793 550,000 --- 774,994 15,200 790,194 --- --- --- --- --- (137,500) --- (137,500) --- (137,500) 123,801 --- 21,800 44,600 34,793 412,500 --- 637,494 15,200 652,694 --- --- --- 64 801 412,500 --- 413,365 128 413,493 123,801 --- 21,800 44,536 33,992 --- --- 224,129 15,072 239,201 In 2013, Cabinet approved the re-deployment of $137,500 from Office of Accountability and Transparency’s Budget to other Ministries and Departments.
Office of Accountability & Transparency Section 12: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 13 Office of the Director of Public Prosecutions Role and Responsibilities The Office of the Director of Public Prosecutions is responsible for prosecuting appeals before the Fiji Court of Appeal and the Supreme Court.
In addition, all High Court trials are prosecuted by State Counsels who also handle appeals to the High Courts at Suva, Lautoka and Labasa.

Cases of special difficulty or of public interest in the Magistrates' Court are processed by the Director of Public Prosecutions Office.
Other significant works of the department includes the determination of complaints against police and prison officers, the provision of written advice to the Commissioner of Police, to the Director Criminal Investigation Department and to other government departments and statutory organisations, the delivery of lectures at the Police Academy, etc., and handling of complaints from members of public operating their cases.
The Director also considers written representations concerning criminal cases from aggrieved persons, defendants or from their counsels.
Table of Contents PART A: FINANCIAL STATEMENT ......................................................................................................................................... 1 13.1 Audit Opinion ............................................................................................................................................................... 1 13.2 Statement of Receipts and Expenditure ...................................................................................................................... 1 13.3 Appropriation Statement ............................................................................................................................................. 2 13.4 Statement of Losses ................................................................................................................................................... 2 13.5 Trust Fund Account Statement of Receipts and Payments ........................................................................................ 3 PART B: AUDIT FINDINGS ...................................................................................................................................................... 3 13.6 Expenditure Ledger ..................................................................................................................................................... 3 PART A: FINANCIAL STATEMENT 13.1 Audit Opinion The audit of the 2013 financial statements of the Office of the Director of Public Prosecutions (DPP) resulted in the issue of an unqualified audit report.
Management attention however was drawn to that there is an un-reconciled difference amounting to $102,465 between the general ledger (FMIS) expenditure and expenditure as per the cash book.

DPP did not reconcile the expenditure in general ledger (FMIS) to the cash book or any other separate record.

As a result, our audit was not able to ascertain the accuracy of the amounts stated as expenditure in the accounts.
13.2 Statement of Receipts and Expenditure The Office of the Director of Public Prosecutions collected revenue totalling $7,481 and incurred a total expenditure of $3,946,975 in 2013.
Office of the Director of Public Prosecutions Section 13: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 13.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS Commission TOTAL RECEIPTS EXPENDITURE Operating Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Special Expenditures Total Operating Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) 7,481 7,481 18,630 18,630 1,999,673 170,060 196,670 341,547 887,086 91,806 3,686,842 260,133 3,946,975 1,765,931 177,786 217,955 313,585 878,113 89,539 3,442,909 205,154 3,648,063 Total expenditure increased by $298,912 or 8% in 2013 compared to 2012.
The increased expenditure was attributed to the increases in cost of established staff, repairs and maintenance costs of office equipment, vehicles and increase in VAT.

13.3 Appropriation Statement The Office incurred expenditure totalling $3,946,975 in 2013 against the budget of $5,109,385 resulting in savings of $1,162,410 or 23%.

Details of expenditures against the budget estimates are provided in Table 13.2.
Table 13.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Special Expenditure Total Operating Expenditure Value Added Tax TOTAL EXPENDITURE 13.4 Statement of Losses Budget Estimate ($) 2,658,954 147,535 254,400 327,200 1,286,596 135,000 4,809,685 299,700 5,109,385 Changes ($) (32,000) 32,000 6,000 57,000 (63,000) 0 0 0 0 Revised Estimate ($) 2,626,954 179,535 260,400 384,200 1,223,596 135,000 4,809,685 299,700 5,109,385 Actual Expenditure ($) 1,999,673 170,060 196,670 341,547 887,086 91,806 3,686,842 260,133 3,946,975 Lapsed Appropriation ($) 627,281 9,475 63,730 42,653 336,510 43,194 1,122,843 39,567 1,162,410 The Office of the Director of Public Prosecutions did not report any loss of money or assets during the financial year ending 31/12/13.
Office of the Director of Public Prosecutions Section 13: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 13.5 Trust Fund Account Statement of Receipts and Payments Description RECEIPTS Forfeited Assets Fund DPP Trust Account Total Receipts PAYMENTS Forfeited Assets Fund DPP Trust Account Total Payments Net (Deficit)/Surplus Opening Balance as at 1 January Closing Balance as at 31 December 2013 ($) 2012 ($) 100,384 80 100,464 89,038 11,399 100,437 27 177,858 177,885 31,451 11,532 42,983 44,821 87 44,908 (1,925) 179,783 177,858 The Trust fund account consists of balances held for forfeited assets and Director of Public Prosecutions trust account.
PART B: AUDIT FINDINGS 13.6 Expenditure Ledger All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger.1 The Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.2 The special purpose financial statements of the Office of the Director of Public Prosecutions for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) maintained by Ministry of Finance.
The Office maintains the cash book for all the payments done during the year as a ledger for expenditure.

However, upon reconciliation of the cash book with the total expenditure as per FMIS, the audit noted a variance of $102,465.38.

We also noted that the Office does not reconcile the expenditure in the FMIS to the cash book or any other separate record.

As a result the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.
Recommendation The Office should ensure that the expenditure ledger is reconciled to the expenditure as per the general ledger (FMIS) on a monthly basis.

Office Comments The audit recommendation is noted.

For year 2013, an expenditure ledger was not maintained.

Audit was carried out using cash book.

Employers FNPF, void cheques and IDC charges weren’t taken into consideration thus leading to variance.
The accounts section will be maintaining expenditure ledger for 2014 and will be reconciling it monthly with the general ledger (FMIS).
1 Finance Instruction 2010, Section 15 2 Finance Manual 2013 Office of the Director of Public Prosecutions, Part 16: Ledger Accounts – Introduction Paragraph Office of the Director of Public Prosecutions Section 13: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 14 Ministry of Justice and Anti - Corruption Roles and Responsibilities Department of Justice The Department of Justice is responsible for the efficient and effective delivery of services relating to all the Registries.
The Justice Department will be the point of contact for all requiring registrations of properties, stamp duty, birth, death, marriage and company.

Prisons and Corrections Department The Fiji Corrections Service is responsible for the safe, secure and humane treatment of persons in custody by providing opportunities to correct offending behavior, develop work and life skills and perform community service.
Under the framework of the Fiji Prisons Act and Public Service Administration Guidelines, the Fiji Corrections Service works enhancing the quality of custodial responsibilities, improve inmate rehabilitation programmes, developing human resources, effective use of resources and modernizing the service.
Department of Communication Provides policy advice, implements initiatives and facilitates programs to improve the quality and delivery of cost-effective and competitive telecommunications and postal services throughout Fiji.
Table of Contents DEPARTMENT OF JUSTICE ..................................................................................................................................................... 2 PART A: FINANCIAL STATEMENTS ..................................................................................................................................... 2 14.1 Audit Opinion ............................................................................................................................................................ 2 14.2 Statement of Receipts and Expenditure ................................................................................................................... 2 14.3 Appropriation Statement .......................................................................................................................................... 3 PART B: AUDIT FINDINGS ..................................................................................................................................................... 3 14.4 Board of Survey Report not prepared ...................................................................................................................... 3 14.5 Expenditure Ledger .................................................................................................................................................. 4 14.6 Unreconciled Drawings Account .............................................................................................................................. 5 14.7 Anomalies noted in the Official Receivers Office ..................................................................................................... 6 PRISONS AND CORRECTIONS DEPARTMENT ..................................................................................................................... 7 PART A: FINANCIAL STATEMENTS ..................................................................................................................................... 7 14.8 Audit Opinion ............................................................................................................................................................ 7 14.9 Statement of Receipts and Expenditure ................................................................................................................... 8 14.10 Appropriation Statement .......................................................................................................................................... 8 14.11 Trust Account Statement of Receipts and Payments ............................................................................................... 9 PART B: AUDIT FINDINGS ..................................................................................................................................................... 9 14.12 Overstatement of Expenditure ................................................................................................................................. 9 14.13 Variance between Sales General Ledger Balance and the Department Record ................................................... 13 14.14 Variance between TMA Cash Book and General Ledger Bank Balance ............................................................... 14 14.15 Carried forward Items in the monthly Bank Reconciliations ................................................................................... 15 14.16 Expenditure Ledger ................................................................................................................................................ 16 14.17 Unauthorized Absence from Work ......................................................................................................................... 17 14.18 Exhausted Inpatient Sick Leaves ........................................................................................................................... 19 14.19 Quarters Records ................................................................................................................................................... 21 14.20 Anomalies in Motor Vehicles Record Keeping ....................................................................................................... 22 14.21 Failure to Instigate Surcharge for Motor Vehicle Accidents ................................................................................... 23 DEPARTMENT OF COMMUNICATIONS ................................................................................................................................ 24 PART A: FINANCIAL STATEMENTS ................................................................................................................................... 24 14.22 Audit Opinion ......................................................................................................................................................... 24 Section 14: Page 1 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 14.23 Statement of Receipts and Expenditure ................................................................................................................. 25 14.24 Appropriation Statement ........................................................................................................................................ 26 PART B: AUDIT FINDINGS ................................................................................................................................................... 26 14.25 Board of Survey Not Prepared ............................................................................................................................... 26 14.26 Expenditure Ledger Not Maintained ....................................................................................................................... 27 14.27 Non – Preparation of Main Trust Fund Account Statement.................................................................................... 27 14.28 Variance between Main Trust Cash Book and General Ledger Bank Balance ...................................................... 29 14.29 Tender Not Called and Absence of Contract Engagements for Services .............................................................. 30 APPENDICES ........................................................................................................................................................................... 32 PRISONS AND CORRECTIONS DEPARTMENT ................................................................................................................... 32 Appendix 14.1: Surcharge yet to be instigated for Motor Vehicle Accidents ...................................................................... 32 DEPARTMENT OF JUSTICE PART A: FINANCIAL STATEMENTS 14.1 Audit Opinion The audit of the 2013 accounts for the Department of Justice resulted in the issue of an unqualified audit report.
Management attention however was drawn to the following matters:  The Statement of Losses could not be substantiated as the board of survey was not undertaken.

 An unreconciled difference of $892,480 exists between the FMIS general ledger expenditure and expenditure as per cash book.

The Department did not reconcile the expenditure in the FMIS general ledger to the cash book or any other separate record.
As a result, the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.

14.2 Statement of Receipts and Expenditure The department collected revenue totaling $1,337,215 and incurred expenditure totaling $3,303,487 in 2012.

Refer Table 14.1 for details.
Table 14.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS Miscellaneous Fees Registration Fees Licenses Fees Other State Revenue Total State Revenue Agency revenue Other Agency Revenue TOTAL REVENUE EXPENDITURE Operating Established Staff Government Wage Earners 2013 ($) 2012 ($) 605,390 718,369 52,892 74 1,376,725 732,255 529,512 41,801 4,086 1,307,654 490 1,377,725 226 1,307,880 1,650,009 109,708 1,132,968 86,644 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Travel and Communications Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Construction Purchase Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 110,834 396,601 103,340 11,500 80,680 2,462,672 485,409 167,783 653,192 187,623 3,303,487 2012 ($) 75,611 443,511 57,156 11,500 68,718 1,876,108 7,277 127,471 134,748 116,684 2,127,540 Total revenue increased by $69,335 or 5.3% in 2013 due to increase in registration and licenses fees.
Total expenditure increased by $1,175,947 or 55% in 2013 compared to 2012 due to the upgrading of salaries of base grade officers and increases in staff establishment and capital expenditure.

14.3 Appropriation Statement The department incurred expenditure totaling $3,303,487 in 2013 against the revised budget of $3,460,524 resulting in a savings of 157,037 or 4.5%.

Details of expenditure against the budget estimate are provided in Table 14.2.
Table 14.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Construction Purchase Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 1,841,972 117,133 121,000 449,500 141,119 11,500 160,000 2,842,224 424,000 0 424,000 194,300 3,460,524 Changes ($) (138,535) 0 (10,000) (48,953) (30,000) 0 (69,416) (296,904) 120,061 176,843 296,904 0 0 Revised Estimate ($) 1,703,437 117,133 111,000 400,547 111,119 11,500 90,584 2,545,320 544,061 176,843 720,904 194,300 3,460,524 Actual Expenditure ($) Lapsed Appropriation ($) 1,650,009 109,708 110,834 396,601 103,340 11,500 80,680 2,462,672 485,409 167,783 653,192 187,623 3,303,487 53,428 7,425 166 3,946 7,779 0 9,904 82,648 58,652 9,060 67,712 6,677 157,037 PART B: AUDIT FINDINGS 14.4 Board of Survey Report not prepared Annual board of survey must be conducted by 3 officers who are independent of the officer responsible for the custody of the assets.
A written record must be kept of each board of survey and must be signed and dated by the officers undertaking it.1 1 Finance Instruction 2010 – Section 49(2) Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The audit noted that the Department conducted a board of survey in 2013 however, they failed to prepare a report about the survey.
In the absence of a board of survey report, the Statement of Losses (Other than money) could not be substantiated.

Recommendation The Accounting Head should ensure that a board of survey report is prepared in accordance with Section 49 of the Finance Instruction.

Management Comment The Board of Survey was carried out for 2013 but the report was not ready during the time of audit.

The report is now been finalized.
14.5 Expenditure Ledger All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger.2 The Senior Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.3 The special purpose financial statements of the Department of Justice for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) general ledger maintained by the Ministry of Finance.
The Department also maintains a cash book for all the payments done during the year as a ledger for expenditure.

Our review of the two records revealed a variance of $892,480.

The audit also noted that the Department did not reconcile the expenditure in the FMIS general ledger to its records.

As a result the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.
Recommendation The Senior Accounts Officer should ensure that the expenditure ledger is reconciled to the expenditure as per the general ledger (FMIS) on a monthly basis.

Management Comment The Ministry maintains a cash book for recording cheques issued and not as expenditure ledger.

Each month, the cash book is reconciled with Drawings Ledger Account generated by FMIS against the bank statement to identify cheques that are un-presented for the month and make a un- presented cheque listing.
The reconciliation of expenditure ledger produced by FMIS was done mostly on online rather than manual.

This was done through panels available in the FMIS system.

It was reconciled against the source documents and the cash book.

In addition, the drawings ledger account is the only ledger account produced by FMIS to be reconciled with cash book.
2 Finance Instruction 2010, Section 15 3 Justice Finance Manual 2013, Part 15: Ledger Accounts – Introduction Paragraph Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The departments and ministries were informed during the inception of the FMIS system in 2006 that it is to their discretion whether to maintain a manual expenditure ledger or fully rely on the FMIS expenditure ledger.
The option of relying on on-line expenditure was the best as it lessen the workload and produced timely report.

Therefore, the Ministry opted for computerized expenditure ledger.

The Ministry of Justice and the Department of Communication use the same cash book, same Drawings bank account and same Drawings Ledger Account but they have separate expenditure ledger account.
There would be variance in between cash book and general ledger because the general ledger also shows non-cheque transactions such as journals vouchers.

The amount stated in the Statement of Receipt and Expenditure in the Agency Financial Statement is extracted from the FMIS final report on expenditure for 2013 and it should be accepted as proper and true.

14.6 Unreconciled Drawings Account All bank account must be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by the responsible officer.4 The audit noted a variance of $41,978.88 between the FMIS general ledger and the Department’s reconciliation relating to drawings account.

Refer Table 14.3 for details.


Table 14.3: Variance in Drawings Account Details FMIS Department’s Reconciliation Variance Recommendation Amount ($) (345,001.40) (386,980.28) 41,978.88 The Accounting Head should undertake monthly reconciliation of its Drawings Account with the FMIS balances and any variances noted should be investigated and adjusted accordingly.
Management Comment The reconciliation of the cash book, the drawings account ledger generated by FMIS and the bank statement was done for each month.

However, the reconciliation was not done on time as the Accounts Unit encountered shortage of experience staff.

The Principal Accountant and the Accountant were posted to Election Office for almost seven months to clear the abuse of funds that were highlighted in the Election Office internal audit report and to setup proper accounting system.
The Ministry highlighted the variance of $ 41,978.88 in its reconciliation statement.

The variance was the total outstanding items in the reconciliation statement.

The outstanding items were not cleared during the closing of accounts due to an oversight on our part and some items needed to be cleared by BSP bank and Ministry of Finance which were beyond our control.
The Chief Accountant highlighted in an accounting heads meeting that adjustment of the 2013 financial books still could be done after the closing of accounts but through the auditors during the audit of the Agency Financial Statement.

The issue was discussed with Audit in which they agreed but the adjustment journals to be submitted to them before 30/05/14.The adjustment journals were raised and submitted to Audit on 28/05/14.
However, Audit informed us in June that they were not accepting the adjustment journals.
4 Finance Instruction 2010 – Section 32(6) Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 14.7 Anomalies noted in the Official Receivers Office No proceeding in bankruptcy shall be invalidated by any formal defect or by any irregularity; unless the court before which an objection is made to the proceeding is of opinion that substantial injustice has been caused by the defect or irregularity, and that the injustice cannot be remedied by any order of the court.5 All notices and other documents for the service of which no special mode is directed may be sent by post to the last known address of the person to be served therewith.6 The creditor will pay $150 for petition fees to the Revenue Collector at the Official Receiver’s Office.7 Once the debtor has not made any payment for one month and if a debtor has default repayment continuously for the period of two months than the office will declare the debtor as default.
The office will than adjudicate the debtor.8 The audit of the Official Receivers records noted the following anomalies:  No database is maintained by the Office to keep track of pending cases and its current status.

Hence, it would be a tedious task to look at individual files and determine their status, as there are thousands of files for bankruptcy and insolvency;  No identification such as photos is maintained in the files.
Most people have changed their address and employment which makes it difficult to track them or publish their identification in the newspaper.

This issue was raised in previous audit reports; however corrective action is yet to be taken by the Department;  There are no offsite backups and Disaster Recovery Plan maintained for all the Office documents.
Thus, if the records are destroyed in a natural disaster or fire the Office would lose all the vital records;  No monitoring tool is used by the office to trace the frequency of debtor payments and “red flags” to alert the office if a debtor has been defaulting in his payments; and  Large costs are incurred during debt recovery by the office and the petition fee of $150 is not sufficient to cover all the cost.
A review of the fees structure was submitted in 2012; however, no formal response has been received by the office.

Since its inception, the Office is following the fees structure outlined in the Bankruptcy Act 1978.

Apart from the VAT adjustment, the fees and charges has not been reviewed to reflect the current cost of providing the services.

Lack of resources and poor tracking system affects the service delivery of the Department.
Poor debt recovery mechanism could result in substantial loss of government revenue.

Recommendations  The Official Receiver should consider strengthening the current facilities of the Office of Official Receiver by providing them adequate resources.
5 Bankruptcy Act [Cap 48] – Section 128 (1) 6 Bankruptcy Act [Cap 48] – Section 127 7The Office of the Official Receiver’s Standard Office Procedure – Section 1(ii) 8 The Office of the Official Receiver Standard Office Procedure – Section 11 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Permanent Secretary should computerize their processes to enable the Office to easily track the cases referred to them.
 The Official Receiver Act (1978) should be revised to allow more powers to the Official Receiver to carry out his/her functions more effectively.

Proper records of the individuals/directors should be maintained.

  The Official Receiver should consider publishing and reporting to the Data Bureau the names of defaulters who cannot be located and notifying the Immigration Department for inclusion in the watch list.

Management Comment No comment received from management.
PRISONS AND CORRECTIONS DEPARTMENT PART A: FINANCIAL STATEMENTS 14.8 Audit Opinion The audit of the 2013 accounts of the Prisons and Corrections Department resulted in the issue of a qualified audit report.

The qualifications are as follows:  Included in the Trading and Manufacturing Account are Appropriations from CFA & TMA Operations and TMA Accumulated Surplus of $99,623 and $173,547 respectively and a credit balance of Direct Costs of $79,252 exists in the Consolidated Trade and Manufacturing Account.
The audit was unable to verify the amounts and numerous other adjustments as the Department was not able to provide appropriate audit evidence to support the balances.

Accordingly, audit was unable to ascertain the accuracy and completeness of the Trading and Manufacturing Account as at 31 December 2013.

Management attention was also drawn to the following matters:  An un-reconciled difference amounting to $21,443 exists between the FMIS general ledger and Fiji Corrections Service TMA sales balance.
Accordingly, the audit was unable to ascertain the accuracy and completeness of the TMA Sales account balance as at 31 December 2013.

 Contrary to Note 2 (a) total expenditure includes a book entry for a budget carry-over of $431,040 to be spent in 2014.

Consequently the actual 2013 expenditure has been overstated by the same amount.

 An un-reconciled difference amounting to $928,393 exists between the General Ledger (FMIS) expenditure and expenditure as per the cash book.
Fiji Corrections Service did not reconcile the expenditure in general ledger (FMIS) to the cash book or any other separate record.

As a result, the audit was not able to ascertain the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure.

 An un-reconciled difference amounting to $63,394 exists between the General Ledger (FMIS) and Fiji Corrections Service TMA bank reconciliation.
Accordingly, the audit was unable to ascertain the accuracy and completeness of the TMA Cash at Bank account balance as at 31 December 2013.

Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  An un-reconciled difference amounting to $178,302 exists between the General Ledger (FMIS) and Fiji Corrections Service TMA expenditure account balance.
Accordingly, the audit was unable to ascertain the accuracy and completeness of the TMA expenditure account balance as at 31 December 2013.

14.9 Statement of Receipts and Expenditure The Department collected a total revenue of $55,332 and incurred expenditure totaling $20,132,934 in 2013.

Refer to Table 14.4 for details.
Table 14.4: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Agency Revenue TOTAL REVENUE EXPENDITURE Operating Established Staff Unestablished Staff Travel and Communication Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) Total expenditure decline by $7,075,550 or 26% in 2013 compared to 2012 due to the decrease in capital construction.
14.10 Appropriation Statement The Department incurred a total expenditure of $20,132,934 against the revised budget of $21,186,118 resulting in a savings of $1,053,184.

Details of expenditure against the budget estimate are provided in Table 14.5.
Table 14.5: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfer Budget Estimate ($) 13,197,546 31,919 430,370 1,556,002 2,956,630 46,260 Change ($) (826,341) 3,959 46,700 134,266 685,013 (30,567) Revised Estimate ($) 12,371,205 35,878 477,070 1,690,268 3,641,643 15,693 Actual Expenditure ($) 12,265,202 34,139 419,803 1,570,242 3,113,837 13,300 Carry– Over ($) 0 0 0 0 0 0 Lapsed Appropriation ($) 106,003 1,739 57,267 120,026 527,806 2,393 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ SEG Item 7 8 9 13 Special Expenditure Total Operating Costs Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 400,000 18,618,727 1,535,591 0 1,535,591 1,031,800 21,186,118 Change ($) 90 13,120 (13,120) 0 (13,120) 0 0 Revised Estimate ($) 400,090 18,631,847 1,522,471 0 1,522,471 1,031,800 21,186,118 Carry– Over ($) Actual Expenditure ($) 399,516 0 0 17,816,038 1,384,515 374,817 0 0 1,384,515 374,817 56,223 20,132,934 431,040 932,381 Lapsed Appropriation ($) 574 815,808 137,956 0 137,956 99,419 1,053,184 14.11 Trust Account Statement of Receipts and Payments Table 14.6: Trust Account Statement for 2013 Trust Fund Account Receipts Prisoners Cash Total Receipts Payments Prisoners Cash Total Payments Balance as at 1 January 2010 CLOSING BALANCE 2013 ($) 2012 ($) 126,205 126,205 37,209 37,209 117,207 206,203 70,063 70,063 27,869 27,867 75,013 117,207 PART B: AUDIT FINDINGS 14.12 Overstatement of Expenditure If an amount appropriated by an Annual Appropriation Act for a financial year has not been used in that financial year; or is unlikely to be used in that financial year, the Minister may authorize the carry- over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date, and the amount authorised for carry-over may be used accordingly in that following year, subject to such conditions as the Minister specifies in the authorisation.9 The purpose of the carry-over policy is to ensure that funds requested for this initiative are reflected in the budget allocation of requesting Ministries and Departments for the respective year.10 The Ministry of Finance approved the carry-over of $431,039.73 for completion of CCTV installation for the Fiji Corrections Service to be utilized in year 2014.
The audit noted that Ministry of Finance recorded the expenditure under the allocation of Fiji Corrections Service for $431,039.73 in 2013 contrary to the carry-over policy.

Refer Table 14.7 for details.
9 Financial Management Act 2004 – Section 19 (1) 10 Ministry of Finance – Carry-over Policy, January 2012 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 14.7: Accounting Entry for Carry – Over of Funds Description Allocation 1-15201-71999-080453 1-15201-71999-130101 1-15201-71999-840103 Upgrading- Telecommunication& CCTV Value Added Tax Input Tax Standard Liability Group 84 CR ($) DR ($) 374,817.16 56,222.57 431,039.73 The capital construction and Value Added Tax expenditure is overstated by $431,039.73 in the Statement of Receipts and Expenditure.
Recommendation The Senior Accounts Officer in consultation with the Ministry of Finance should ensure that carry-over expenditure is appropriated in the budget of the following year.

Management Comment Security is paramount for Fiji Corrections Service and can be strengthened with the effective communication amongst FCS Institutions with Headquarter Operation Centre for adhoc advice and preventive measures.
A well- defined and organized corrections security is essential for the safety of offenders and the protection of the public at large.

The Security of corrections, institutions encompasses several relevant components including appropriately designed physical structure, modern technology and an efficient and effective manning.
Based on the urgent need to enhance and strengthen security within Corrections Institutions Cabinet had allocated $835,591(VEP) – (1-15201-71999-080453) for CCTV implementation within High Risk Prison Institutions and upgrade on Telecommunication Networks.

A Total of Five (5) R.I.Es’ were Approved in 2013 for disbursement of Funds for Security enhancement.
Details of CCTV and Telecommunication Upgrade status for 2013: Table A : Date 26.02.13 RIE # 105/13 Vendor CTN # PEL CTN 185/13 Phase 1 02.08.13 480/13 Pactok Contract VEP($) 318,620.94 Description CCTV Implementation – Naboro (Max , Min & Medium Cc) Upgrading of Comms Network 38,252 20.08.13 532/13 PEL - 07.10.13 691/13 Pactok - Sub – Total Additional CCTV Camera’s Naboro Cc 29,841 Set Handheld Commissioners Vehicle (GP274) – 6,269.57 $392,983.51 Completion Status Project Fully Completed and Paid in-line Accordingly with Tender Specs in 2013 Project Fully Completed and Paid in-line Accordingly with Contractual Agreement for 2013 Project Fully Completed and Paid Accordingly in 2013 Full Installed and Paid in 2013 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table B: Final RIE Approval 2013 Date RIE # Vendor CTN # Description 29.11.13 797/13 PEL CTN 93/2013 Phase 2 CCTV Implementation (Suva/Nasinu/Ltk & NHQ) VEP($) 422,607 Completion Status Project to be completed in May 2014 in- line with Contractual Obligation between FCS PEL.
& was Tender advertised & Closed on 3rd July 2013 but due to technical mis- understanding with FPO it later was to referred ITC steering Committee, which approved on 14.11.13.

RIE submitted on 15.11.13 and further Approved on 29.11.13.
Total Fund Approved for 2013 (Table A & B) $835,591(VEP) Table C : Request for Rollover for CCTV Implementation for Suva / Nasinu / Lautoka & NHQ (RIE Approval Ref : 797/13) Sites Cost (VIP) Paid/ Retained Balance Suva Prisons 178,112 52,188.15 125,923.85 Nasinu 163,346 0.00 163,346 Work Schedule & Completion Timeframe 25th Nov 2013 – 7th February 2014.

Work in Progress at Suva Prisons.

*Delivery of Equipment’s & Cabling Materials of and 100% work Cabling for Completed Suva Prisons as at 20.1.14.
27th January 2014 -24th March 2014 to and Work Yet be completed in 2014 in- line with Contractual Agreement *Cabling , Conduits & Fixtures other Civil Work (Stage 1 & 2) *Installation of CCTV Mounting and Termination *Testing Allowance Adjustments *Training of FCS Staffs *Commissioning and Handover *Delivery Equipment’s Materials *Cabling , Conduits & other Fixtures and for of and and Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Sites Cost (VIP) Paid/ Retained Balance Work Schedule & Completion Timeframe Lautoka 167,348 0.00 167,348 10th March 2014 – 29th April 2014 NHQ(Suva) 57,908.25 0.00 57,908.25 05th May 2014 – 26th May 2014 - Retention – 5% (WithHeld) 27,769.92 0.00 Total $566,714.25 $79,958.07 $486,756.18 To be paid six Months after all sites fully are commissioned (May Payable November 2014.
2014).
in to and of and and for Work Yet be completed in 2014 in- line with Contractual Agreement Civil Work (Stage 1 & 2) *Installation of CCTV Mounting and Termination *Testing Allowance Adjustments *Training of FCS Staffs *Commissioning and Handover *Delivery Equipments Materials *Cabling , Conduits & Fixtures other Civil Work (Stage 1 & 2) *Installation of CCTV Mounting and Termination *Testing Allowance Adjustments *Training of FCS Staffs *Commissioning and Handover *Delivery Equipments Materials *Cabling , Conduits & Fixtures other Civil Work (Stage 1 & 2) *Installation of CCTV Mounting and Termination *Testing Allowance Adjustments *Training of FCS Staffs *Commissioning and Handover Payable in November 2014. and for and for of and and Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Note: Rollover Required for Completion of Phase 2 (May 2014) Total Cost : $566,714.25 Less Payment/ Retention (2013) : $79,958.07 Total Obligation Payment (2014) $486,756.18 (VIP) Request for Rollover Savings (2013) $431,039.73 (VIP) * Rollover Request from 2013 Available Balance Balance Cost $55,716.45 * Balance to be facilitated from Funds Budgeted for Yr 2014.
Based on the above facts FCS had applied to Ministry of Finance for Rollover of Funds from Balance of 2013 CCTV Provisions and Part of its cost to be facilitated in 2014 out of its approved budget estimate of $850K.

Thus request for Rollover was approved by Ministry of Finance Rollover (Carry-over) Committee on 28/01/2014 and was further referred to FMIS Unit on the carry – over arrangements.
Funds are being posted into Departments SLG 84 Allocations (Liability) considering Departments contractual arrangements and are considered Governments Liability.

Comments have been further obtained from FMIS – Unit upon receiving of 2013 DAM and the department was advised on the arrangement for rollover Funds as follows; 1.

Government is practicing Hybrid Accounting, which is mixture of Cash and Accrual Accounting.

2.
2.

In accounting practice only the Balance Sheet items are carried over to the next Accounting Period so it is only prudent that we carry over the Funds, to an allocation where it will be debited and cash credited in the following year when it is spent.

Therefore, amongst Asset, Liability & Equity, Liability would best accommodate the intention as something like Accrued Expenses as in most cases Government has made commitment in principle but has not yet paid.

3.
3.

From the Perspective of Hybrid Accounting, that is the only method of carry over the budgetary provision to the following year that can be accommodated in the FMIS and all of these information are to disclosed in the notes 4.

In all cases, Government cannot change the Budgetary Appropriation because Budget for the following is announced in November of this year while the Carry over Committee sits in the next year and the Carry Over process is undertaken during the closing of accounts.
[Comments by Irimaia V K Rokosawa (PAO – FMIS)].

*Funds are prudently disbursed as stated in the Contractual Agreement Schedule C – Payments and Monthly reconciliations were submitted to Ministry of Finance (FMIS).
14.13 Variance between Sales General Ledger Balance and the Department Record The Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.11 A variance of $21,442.62 exists in the sales figure between the FMIS general ledger and the Department’s records.

Refer Table 14.8 for details.
11 Finance Manual 2013 Fiji Corrections Service, Part 16: Ledger Accounts – Introduction Paragraph Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 14.8: Variance in Sales Amount Account ID TMA 4-15251-91151-240199 4-15252-91151-240199 4-15253-91151-240199 4-15255-91151-240199 4-15256-91151-240199 4-15257-91151-240199 4-15258-91151-240199 4-15259-91151-240199 4-15254-91151-240199 Total Beef Bakery Crops Joinery Piggery Poultry Tailor Vegetables Honey FMIS ($) 270.00 407,691.74 22,607.00 30,843.60 212,715.20 373,210.00 160,320.85 50,686.14 0.00 1,258,344.53 Department ($) - 385,087.88 16,752.05 36,769.30 206,244.39 414,482.24 120,213.50 57,082.55 270.00 1,236,901.91 Variance ($) 270.00 22,603.86 5,854.95 -5,925.70 6,470.81 -41,272.24 40,107.35 -6,396.41 -270.00 21,442.62 This was due to the failure of the Department to properly reconcile the sales ledger to the actual receipts.
As a result, the sales figure is misstated in the financial statements.

Recommendation The TMA Clerk should ensure that the Department’s records are reconciled to the FMIS records on a monthly basis and any variances noted are checked and adjusted accordingly.

Management Comment For recording purposes in the FMIS we tally our bank statement with the Bank Lodgement form submitted by the different institutions.
Due to the distance of different Institution from our Headquarters we face delays in the submission of Lodgements by this different Institution thus in our monthly report we only record the receipts that we actually received.

However in the FMIS full loading of the sales lodgement for the particular month is done as per our JV which tallies with the FMIS system.
For example in JV 02/01/2013 for our Bakery Unit our total Sales that was loaded was $ 42,526.52 which is also reflected in the FMIS system as TMA is highly Cash Basis.

Also due to the changes in the TMA staffing we were not able to amend the records on time.
In order to get to the right track we have moved from monthly posting to weekly posting and we have also conducted training to allow officers to have knowledge of the importance of record keeping and also have a clear view on the importance of sending the Lodgement details on time.
However, the findings by auditors are noted to ensure department timely updates its internal records as reflected into the FMIS System with a full time clerk to TMA with relevant accounting back ground to ensure record are adequately maintained.

Thus figures in FMIS To further ensure accuracy department has started to maintain ledger books from 2014, which is reconciled and verified by Accounts officer with responsible TMA Clerk on monthly basis.
14.14 Variance between TMA Cash Book and General Ledger Bank Balance The Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.12 A variance of $63,394 exists in the bank balance between the Department records and the FMIS general ledger balance.

Refer Table 14.9 for details.
12 Finance Manual 2013 Fiji Corrections Service, Part 16: Ledger Accounts – Introduction Paragraph Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 14.9: Variance in Bank Balance Account ID Description 4-15251-71999-540101 TMA Dominion Cash ANZ Suva Recommendation FMIS ($) (7,533.77) Department ($) 55,860.30 Variance ($) (63,394.07) The TMA Clerk should ensure that the Department’s records are reconciled to the FMIS records on a monthly basis and any variances noted are checked and adjusted accordingly.
Management Comment We concur with audit findings that there was variance within TMA bank balance and Bank General Ledger, however this issue is not within the current year of audit as this was contributed through unbalanced reconciliations from 2010 when TMA was initially introduced with FMIS.

Consultations were made with AMU (FMIS) on equitable solution to the issue but due to records constraints efforts remain futile.
However , the department had made various efforts to ensure that significant variance are reconciled with assistance of AMU but with lack of information’s unjustified figures remains on the reconciliations and will continue unless seven years before it can be written off the books.

Request was made to MOF (AMU) upon discussions for posting of $67,037.95 for 2011, but was not approved due to insufficient documentations.
Thus, difference within Bank Balance and GL Bank Balance remains unsolved from 2010 but the gap has been reduced with strengthening timely FMIS postings of revenues.
14.15 Carried forward Items in the monthly Bank Reconciliations The Accounts Officer must verify balances in the bank reconciliation to the cash book, bank statements, unpresented cheque list and the previous month’s bank reconciliation before certifying it.13 The audit noted that the Trading and Manufacturing Account monthly bank reconciliations had items carried forward from 2010.

Refer Table 14.10 for details.


Table 14.10: Carried forward items Details Lodgments not credited Balance from Dec 2010 to post Honey banking Over banking Over banking Over banking Misallocation Double posting on GL Amount ($) 219.50 16,181.71 250.00 20.01 10.10 8.60 84.00 1,557.50 The Department had failed to verify these items and adjust them accordingly.
13 Finance Manual 2013 Fiji Corrections Service – Section 7.4.11 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendation The TMA Clerk should ensure that these items are cleared accordingly from the monthly TMA bank reconciliations.
Management Comment The Department could not verify the brought forward balances for 2010 due to the changes in the staff handling our TMA records.

As discussed with our TMA officers at the AMU Unit we have explained that we have tried to look for any of these records but could not locate it.

To get to the right track we have even move from monthly posting to weekly posting of Revenue to our FMIS.
But Our entire total sales receipts is matched and reconciled with our Bank Statement and Bank Also at that particular point in time all TMA records was handled by Accounts Officers who also handles the Operating Accounts.

The Department has also written a letter to MOF with the requirements in regards to the brought forward balance.
14.16 Expenditure Ledger All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger.14 The Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.15 The special purpose financial statements of the Fiji Corrections Service for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) maintained by the Ministry of Finance.
The Department maintains a cash book for all payments done during the year as a ledger for expenditure.

The reconciliation of the cash book with the total expenditure as per general ledger (FMIS) revealed a variance of $928,392.50.

The audit noted that the Department did not reconcile the expenditure in the FMIS general ledger to the cash book or any other separate record.

As a result the accuracy of the amounts stated as expenditure in the Statement of Receipts and Expenditure could not be ascertained.
Recommendation The Accounts Officer should ensure that the expenditure ledger is reconciled to the expenditure in the the FMIS general ledger on a monthly basis.

Management Comment The department acknowledges the audit finding and also further advises that FCS maintained Expenditure ledger for 2013 and ensured timely reconciliations with General Ledger allocations.
However, staff constraints have been a hindrance to this exercise but the department will ensure that audit recommendations are strongly adhered to.
14 Finance Instruction 2010, Section 15 15 Fiji Corrections Service Finance Manual 2013, Part 16: Ledger Accounts – Introduction Paragraph Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The cashbook maintained records all cheques written for the day including those also written out of FCS Operating Trust Funds for Payroll deductions or FCS Fines allocation.
Moreover, FCS has documented SOPs’ for Cashier to ensure all payments (Cheque or EFT) are recorded prior to signatories endorsing the Payment Runs into Manual Cashbook and reconciled accordingly as per Expenditure ledger SOP’s.

Thus, the department will ensure that processes are further strengthened to ensure accuracy within required process and procedures.

14.17 Unauthorized Absence from Work An Officer shall be entitled to outpatient sick leave up to 21 days in any one leave year of service.
Outpatient sick leave shall be supported by a medical certificate obtained from a registered Medical Practitioner.
This requirement shall be waived for absences on grounds of illness of not more than one day at a time; such absence shall not exceed an aggregate period of six days in any one leave year of Service.16 The medical certificate will be handed to the patient who is responsible for dispatching it immediately to the relevant Head of the Section.17 An Officer, who is absent without leave, is liable for disciplinary action.18 An Officer who has been found by a Medical Board to be medically unfit for further service, may be called upon to retire.19 The Assistant Accounts Officer (EDP number 64927) exhausted her sick leave in the leave year 24/09/12 – 23/09/13 for which no deductions was made.
The Officer had been absent from work from 29 October 2012 and resumed work from 08th August 2013.

In addition, it was noted that the Officer’s absence from 15/7/13 to 07/8/13 was not supported with any medical certificate.

Refer Table 14.11 for details.

Table 14.11: Details of Officer’s Absence from Work Dates Number of working days Remarks 01/05/13-10/05/13 13/5/13-07/06/13 10/6/13-12/7/13 15/7/13-07/8/13 August Total 8 All the sick leave entitlements (21 days) were taken by the officer by 30.4.13.
8 days sick leave recorded as without pay, however, the officer was fully paid.

20 Exhausted sick leaves with medical certificate provided.

25 Exhausted sick leaves.

Medical Certificate was provided for 27 days and the officer was supposed to resume work from 13.7.13.

18 Exhausted sick leaves with no medical certificate provided.

1 The sick leave was taken after the resumption of duty on 08.08.13; however, the officer did not have any entitlements.
72 Audit calculation of total exhausted sick leaves The audit noted that the Officer’s salary was not ceased at any time, even though she had exhausted her sick leave entitlement.

At the date20 of audit no recovery had been made.

Refer Table 14.12 for the salary payment that was done to the officer during the exhaustion period.
16 General Order 2011- Section 710 (b) 17 General Order 2011 – Section 1002 (a) 18 General Order 2011 – Section 304 (a) (i) 19 General Order 2011 – Section 215 (d) 20 As at the date of audit 15th November 2013 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 14.12: Details of Monetary Value for Officer’s Absence from Work Pay # Pay Period Absent period 09/ 2013 10/ 2013 11/ 2013 12/ 2013 13/2013 14/2013 15/2013 16/2013 24/04-06/05/13 01/05-06/05/13 21/05-03/06/13 04/06- 17/06/13 18/06- 01/07/13 02/07- 15/07/13 16/07- 29/07/13 30/07- 12/08/13 21/05-03/06/13 04/06-17/06/13 18/06-01/07/13 02/07-15/07/13 16/07-29/07/13 30/7-07/08/13 Annual Salary ($) 18,218 18,218 18,218 18,218 18,218 18,218 18,218 18,218 18/ 2013 27/08- 09/09/13 Total Overpayment Overpayment Remarks ($) 280.28 4 working days absence ---- No salary was paid 1,701.6421 700.69 700.69 700.69 700.69 490.49 7 working days absence 70.07 One day sick leave taken after resumption of duty without any entitlements 397.13 Additional payment done in pay 18 without any valid explanation 5,742.37 In addition, a sick sheet was issued to the officer on 05/07/13 by a doctor but pertaining to the period 10/06 – 12/07/13.
Issuance of sick sheet after the lapse of 3 weeks is fraudulent and cases in other ministries has resulted with termination of employment and withdrawal of license to practice for the doctor concerned.

Despite the officer’s unauthorised leaves, the Department has failed to rectify the absences in accordance with the General Order.

Recommendation The Director Corporate Services should review the officers’ absence and take appropriate action including salary deductions in accordance with the General Order.
Management Comment General Order Para 710 (a), (b) and (c) allows an officer to be medically treated for 21 days as an outpatient and then 60 days as an Inpatient.

General Order Para 710 (a), (b) and (c) allows an officer to be medically treated for 21 days as an outpatient and then 60 days as an Inpatient.

Procedure to be followed is laid down in GO 1003 and officer is entitled to full salary if sick leave is not from officer’s misconduct or negligent.
The officer had taken extra 10 days leave upon the approval by the Commissioner on the understanding that she had pending hours from overtime of closing of account of 2011 from November through to early March 2012.

The officer was never paid any overtime allowance due to her status of Acting Accounts Officer.

Therefore she had pending off hours owed to her for the overtime hours of supervision of closing of accounts for 2011.
Despite the above we have recovered the excess sick leave of 71 days through salary recovery.
21 Unpaid salary in Pay 10 was paid together with Pay 11 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 14.18 Exhausted Inpatient Sick Leaves An officer required to undergo treatment as an inpatient of a hospital or required by a registered Government Medical Practitioner to be confined to his home on grounds of illness shall, in addition to his outpatient sick leave, be entitled to a further period of up to 60 days sick leave on full salary in any one leave year of service.22 Our review of the leave records of Daniel Lagataki (EDP number 70578) revealed that the officer exhausted his inpatient sick leaves in consecutive three leave years.
However, no deduction was made for the exhausted sick leaves.

Refer to Table 14.13 for details.
Table 14.13: Details Of Officer’s Exhausted Inpatient Sick leave Leave Year Number of days Annual Salary ($) Monetary Value ($) 27/11/09-26/11/10 27/11/10- 26/11/11 27/11/11-26/11/12 Total 9 93 345 14,051 14,051 14,473 347.40 3,589.80 13,717.20 17,654.40 Also the review of minute regarding ‘medical status for COB D Lagataki and COC T Vakacegu’ revealed that Tautau Vakacegu (EDP number 71123) had exhausted his inpatient sick leaves totalling 204 days for the period 7 July 2011 to 16 January 2012 and 13 June 2012 to 23 June 2012.
However no deduction was done for the exhausted sick leave.

The officer’s leave schedule was also not updated as such; no reconciliation could be done to determine whether the absence period stated in the minute is correct.

Refer to Table14.14 for details.
Table 14.14: Details of Tatau Vakacegu’s Exhausted Inpatient Sick Leave Excess Inpatient leave period Excess consecutive days 07/07/11-15/01/12 (193 days) 13/06/12-23/06/12 178 15 11 Year Period since 3% increase w.e.f 01/01/12 07/7/11-31/12/11 01/1/12-15/01/12 Annual Salary Salary per day Monetary Value ($) 11,321 11,661 11,661 31.10 32.04 32.04 TOTAL OVERPAID ($) 5,536.09 480.54 352.39 6,369.02 The audit also noted that Tatau Vakacegu’s contract was renewed without any allowances, however he was paid Extra Duty and Kerosene allowances contrary to the renewal terms and conditions.
Refer Table 14.15 for details.
Table 14.15: Details of Allowances Paid Period exempted from allowances Extra Duty Allowance Kerosene Allowance 07/08/11-31/12/11 01/01/12-31/12/12 01/01/13-31/12/13 Total Allowances Paid: 567.31 1,457.50 1,457.50 3,482.31 98.03 244.40 244.40 586.83 22 General Order 2011- Section 710 (c) (i) Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Despite the officer taking the unentitled leave, the Department failed to rectify the absences in accordance with the General Order.
The above indicates poor communication and supervisory checks between the administration and the accounts section of the Department to ensure that salary payments are correct.

Non-timely action and non-supervision of salary paid contributes to wastage of taxpayer funds and may become irrecoverable.

Recommendation The Director Corporate Services should review the officers’ overpayments and take appropriate action in accordance with the General Order.
Management Comment General Order para 710 (a), (b) and (c) allows an officer to be medically treated for 21 days as an outpatient and then 60 days as an Inpatient.

Procedure to be followed is laid down in GO 1003 and officer is entitled to full salary if sick leave is not from officer’s misconduct or negligent.

Officer may be treated as an inpatient for up to 60 days in any one leave year on full salary.
On the recommendation of a medical board the in patient may be allowed a maximum of up to 180 days sick leave following which the payment of full salary shall be at the discretion of the Commissioner.

Please find table below for detail comments.

Officer Daniel Lagataki (EDP#70578) Excessive Sick Leave Comments 3 leave years Tatau Vakacegu (EDP# 71123) 204 days The maximum of 180 days sick leave applies here for the officer as explained on the above paragraph.
However the officer continued to work on intermittent basis, whenever his health conditions improve.

A policy was just approved by the Commissioner which will streamline the current process of 60 and180 days, medical board etc, with the intention of future cases.

The officer is engaged as approved by the Commissioner until he retires which will October 2014 .

The maximum of 180 days sick leave applies too for the officer.
He has also continued to work on intermittent basis also whenever his health conditions improve.

A policy was just approved by the Commissioner which will streamline the current process of 60 and180 days, medical board etc, with the intention of future cases.

However the excess of 24 days will be recovered from his annual leave entitlement.
Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 14.19 Quarters Records HQ FCS Admin to issue Tenancy Agreement paper on approval of occupancy.

This is to be signed by the occupants before moving into the quarters.
This has all the regulations governing the occupancy of quarters.23 Every employer shall ensure the health and safety at work of all his or her workers.24 As regards to any workplace under the employer's control: (i) to maintain it in a condition that is safe and without risks to health; or (ii) to provide and maintain means of access to and egress from it that are safe and without any such risks.25 Our inspection of Korovou and Naboro quarters revealed the following discrepancies:  The Quarter Master did not provide any Tenancy Agreement for the officers occupying the quarters.
 In addition, the following Occupational Health and Safety issues were noted for the Korovou quarters:  Holes in walls and ceilings in need of repair;  There are holes in walls and ceilings and are in need of repairs;  Windows cracked, windows nailed to shut thus no ventilation and window sashes need fixing;  Gutters need repairing and drainage insufficient;  Filthy smells coming from toilets;  Plenty cockroaches and spiders in the quarters;  Walk way paths unsafe; and  Toilets and bathrooms need maintenance.
The above indicates blatant disregard to the FCS Live in Policy and Health and Safety Act.

This can create ambiguity of the landlords and tenants rights and obligations since individual contracts are not drawn up and endorsed by the officers occupying the quarters.

This can further affect the strength of legal binding procedures in cases of disciplinary procedures.

Recommendation The administration section should ensure that individual contracts are drawn for each individual quarter.
Management Comment Quarters is the property of the FCS and not of the Public Service Commission whereby legal contract to be draw to state the term and conditions of tenancy.

On the other hand, the FCS Live In Policy is silence on the tenancy agreement.

However, the Live In Policy clear spell out that the Commissioner may at his discretion allocate quarters to other members of the FCS anytime he/she deem necessary.
On that note, the Commissioner decision supersede any other legal binding on that regards and all quarters are under the Commissioner prerogative to allocate.
23 FCS Live In Policy - Procedures 24 Health and Safety at Work Act 1996 – Section 9 (1) 25 Health and Safety at Work Act 1996 – Section 9 (2) (d) Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ On the issue of state of the Quarters, FCS through its Capital Project initiative have slowly upgrading and maintaining the quarters at various Correction Institution.
In addition, the OHS Officer is also identifying the hazard component of the institutional quarters and reported to Commissioners attention.

The improvement of the quarters and OHS Compliance is all incorporated in the maintenance scope of the quarters by our Engineering team.

This includes prior, current and future improvement.
14.20 Anomalies in Motor Vehicles Record Keeping Vehicle must only be used for official purposes unless approved in writing by the Commissioner of Corrections or Deputy Commissioner or permitted under an officer’s term of employment.26 It shall be the responsibility of the Supervisor of Transport to oversee all matters relating to vehicle usage.27 All drivers must ensure that their running sheets are properly filled in before signing and submitting them to the Supervisor of Transport at the end of the day.28 The Supervisor of Transport shall check the accuracy of all running sheets for the day and certify each sheet.29 At the end of each month, the Supervisor of Transport shall check the driver’s running sheets and reconcile it to the monthly mileage summary in the logbook, before signing the summary.
The audit noted that motor vehicle expenditure totaled $443,773 during 2013 compared to $357,789 in 2012, an increase by 24%.

Refer to Table 14.16 for details of expenditure over the 5 year period.
Table 14.16: Motor Vehicle Expenditure for the Five Year Period30 Year 2009 2010 2011 2012 2013 Total Average Fuel & Oil ($) 145,730 137,946 249,833 247,618 291,116 883,207 176,641 Repair & Maintenance ($) 113,980 68,606 131,820 110,172 152,657 529,038 105,808 Total Percent ($) 259,711 206,552 381,653 357,789 443,773 1,412,244 282,449 (%) 25.74 (20.47) 84.77 (6.25) 24.03 --- --- The audit noted the following anomalies from the review of running sheets: Instances were noted where trip mileage were not filled; Instances were noted where departure and arrival time were not filled properly;    There were instances where some days running sheets were missing;  The mileage at the start of the day were not correctly brought forward;  The drivers failed to sign the running sheets;  Evidence through initials by the officer-in-charge for monitoring daily motor vehicle running sheets on a monthly basis was lacking; and  The review of the running sheet for vehicle registration GM 865 noted unofficial use of vehicle, that is, transportation of officers wives for which the authorization was not provided.
In addition, audit noted the following anomalies from the review of log books: 26 Department’s Finance Manual 2011 – Section12.3.1 27 Department’s Finance Manual 2011 – Section12.1.1 28 Department’s Finance Manual 2011 – Section12.3.9 29 Department’s Finance Manual 2011 – Section 12.3.10 30 Financial Management Information System, General Ledger Allocation 1-15200-00000-040101 and 1-152000-00000-04361 and 1-152000-000000-04362, accessed on 17/01/14 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Instances were noted where log books for some months were not filled properly and for some months not filled at all;  The mileage at the start of the day were not correctly brought forward;  The closing mileage readings were incorrectly stated; and  Evidence through initials by the officer-in-charge for monitoring motor vehicle log books on a monthly basis was lacking.
The above shows the laxity by the Supervisor of Transport to manage and monitor motor vehicles in accordance with the transport rules and regulations.

Non-monitoring of vehicle use is one of the compounding factors for increased motor vehicle costs susceptible to extravagant use of public funds.

Recommendation The Supervisor of Transport should:  Scrutinize running sheets and ensure that running sheets and logbooks are updated on a timely basis for each vehicle.
 Ensure that drivers properly complete running sheets and ensure correct mileage is documented.

 Ensure that un-recorded description of motor vehicle mileage is reviewed and rectified.

 Institute Disciplinary actions on officers for unauthorised use of motor vehicles.

Management Comment The audit anomalies regarding the Transport Unit have been noted in that it will only help this unit develop and better monitor the FCS fleet according to transport and finance regulation.
The unit was also able to rectify problems like the proper takeover and handover of vehicles when moved the Transport Pool to other districts.

The unit has now an officer COB M. Bolatolu dedicated to the monitor and upkeep of the running sheets as approved by COMCOR.

The addition of the two other staff (PCO Lolo and COC Lo Dre) to our unit has eased the work load faced by the other drivers that caused lot of error in the running sheets due to long hours of work.
14.21 Failure to Instigate Surcharge for Motor Vehicle Accidents In the event of an accident involving a Government vehicle, the driver must immediately report the accident to Police and inform the Supervisor - Headquarters through the Supervisor of Transport.31 A driver involved in an accident may be surcharged if the surcharging authority believes the driver was at fault.32 The accident report, Police report, Solicitor General’s advice and the Supervisor’s recommendations will be taken into consideration by the surcharge authority before any surcharge is imposed.33 An employee must use Government resources and assets in a proper way.34 The audit noted that officers were not surcharged for motor vehicle accidents caused negligently as outlined below: 31 Fiji Corrections Service, Finance Manual 2011- Section 12.6.1 32 Fiji Corrections Service, Finance Manual 2011 - Section 12.6.7 33 Fiji Corrections Service, Finance Manual 2011 - Section 12.6.8 34 General Order 2011, Annexure II – Public Service Code of Conduct No.
8 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Driver fell asleep while driving;  Driver failed to negotiate wet surface and hit a coconut tree;  Parked vehicle was damaged by flood;  Drivers driving at a high speed and colliding with other motor vehicles;  Driver was driving at high speed, lost control and the vehicle flipped upside down;  Driver hit the vehicle from the back as a result of driving too closely;  Failure to use right-hand rule causing accident; and  Driver was driving without a valid license resulting in loss of control of the vehicle.
Refer Appendix 14.1 for details.

In addition, it was noted that the transport section failed to properly maintain documents relating to the accidents, such as, motor vehicle accident reports, Police reports and records showing that surcharge has been imposed.

Additionally, instances were noted where officers have been surcharged one or two years back but no deduction has been initiated to date.
It resulted in some officers leaving the service without any recovery of cost being done by the department as directed by the Ministry of Finance.

Improper and negligent use of resources has resulted in unnecessary use of public funds for repair and maintenance and if not reprimanded could be catalyst to future abuse and careless use of motor vehicles.
Recommendations  The Director Corporate Services should strengthen supervisory checks in accordance with section 12 – accident of motor vehicles of the Finance Manual 2011.

 Appropriate disciplinary actions should be taken against Officers found negligent during accidents whilst driving the official vehicles.

 For all accidents, the accident reports should be prepared and submitted to the Vehicle Control Unit at the Ministry of Finance to instigate recovery of damages.
 The Transport Officer should maintain all proper records including accident reports and surcharge actions.

 The Board of Inquiry should ensure that deductions commence as soon the officers are surcharged by the Ministry of Finance and Solicitor General’s Office.

Management Comment Copy of the report is given to FCS Inspectorate General (IG) Units.

The IG units will conduct their internal due process before any recovery will take place.
The recovery will be effective after IG internal report is produced.

IG is still reviewing the report to determine the standing of the surcharge and/or recovery.

DEPARTMENT OF COMMUNICATIONS PART A: FINANCIAL STATEMENTS 14.22 Audit Opinion The audit of the 2013 accounts of the Department of Communications resulted in the issue of a qualified audit report.
The qualifications are as follows: Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Department of Communication did not provide the following contrary to Finance Instructions 71(1): a.)

Statement of Losses; and b.)

Statement of Receipts and Payments for Telecommunication Development Trust Fund Account.
 Note 4 assert the cash at bank balance for the Telecommunication Development trust fund as $2.897million.

A variance of $13.523million exists between the cash at bank account balance in the Financial Management Information System (FMIS) and the bank statement balance as 31 December 2013.

Contrary to section 32(6) of Finance Instructions 2010 no reconciliation was provided for audit.
As such, the audit was not able to ascertain the trust fund cash at bank account balance or whether all receipts and payments have been accurately accounted in the Main Trust Fund Account.

Management attention was also drawn to that the Department did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

The Department prepared its financial statements from the FMIS general ledger.
As a result the audit was not able to ascertain the accuracy of the amounts stated in the statements of Receipts and Expenditure.

14.23 Statement of Receipts and Expenditure The Department collected revenue totaling $5,131,008 and incurred a total expenditure of $1,278,899 in 2013.

Refer Table 14.17 for details.
Table 14.17: Statement of Receipts and Expenditure for 2013 Description RECEIPTS Licence Fees – Telecom & Television License Arms Miscellaneous Fees TOTAL REVENUE EXPENDITURE Operating Established Staff Unestablished Staff Travel and Communication Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) 5,130,717 100 191 5,131,008 165,064 14,049 50,196 45,942 43,386 679,731 190,390 1,188,759 --- 40,909 40,909 49,231 1,278,899 500,963 --- --- 500,963 150,206 12,095 17,959 32,251 4,570 917,366 111,256 1,245,703 --- --- --- 20,651 1,266,354 Total revenue increased by $4,630,045 as result of increases in license fees for telecom and televisions.
No significant increase was noted for the Department’s expenditure.

Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 14.24 Appropriation Statement The Department incurred a total expenditure of $1,296,896 against the revised budget of $1,342,774 resulting in a savings of $63,875.
Details of expenditure against the budget estimate are provided in Table 14.19 Table 14.18: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfer Special Expenditure Total Operating Costs Capital Expenditure Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 183,238 15,174 50,516 68,200 51,500 1,622,500 330,000 2,321,128 Change ($) - - - - - (937,159) (139,105) (1,076,264) Revised Estimate ($) 183,238 15,174 50,516 68,200 51,500 685,341 190,895 1,244,864 Actual Expenditure ($) 165,064 14,049 50,196 45,942 43,386 679,731 190,390 1,188,759 --- --- 75,000 2,396,128 40,910 40,910 (18,000) (1,053,354) 40,910 40,910 57,000 1,342,774 40,909 40,909 49,231 1,278,899 Lapsed Appropriation ($) 18,174 1,125 319 22,258 8,114 5,610 505 56,105 1 1 7,769 63,875 In 2013, the Cabinet approved the redeployment of $1,053,354 from Department of Communications to Fiji Military Forces.
PART B: AUDIT FINDINGS 14.25 Board of Survey Not Prepared An annual board of survey must be conducted each year to verify the existence and condition of assets recorded on the asset register.35 Each agency must include in its annual financial statements a statement of losses.36 The audit noted that the board of survey report for the year 2013 was not prepared, resulting in the failure to disclose other losses in the Statement of Losses in the Agency Financial Statement.
Without a board of survey, the Statement of Losses (Other than money) could not be substantiated.

Recommendation The Accounting Head must ensure that Section 49 and section 71 (f) of the Finance Instruction 2010 are strictly complied with.
35 Finance Instructions 2010 – Section 49 (1) 36 Finance Instructions 2010 – Section 71 (1) (f) Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The board of survey was not carried out for 2013 because the Ministry of Public Enterprise failed to handover the inventory ledger despite numerous discussions and requests.
However, a physical check was carried out on expendable and non-expendable items and new inventory ledger was opened for each item (expandable & non-expendable).

Please note that the Department of Communication joined the Ministry in January 2013 from the Ministry of Public Enterprise.

Therefore, the board of survey will be effectively carried out for 2014.
14.26 Expenditure Ledger Not Maintained All payments, including VAT, must be immediately recorded in the Financial Management Information System (FMIS) and an Expenditure Ledger37.
A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.38 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.39 The audit noted that the Department did not maintain an expenditure ledger.

As a result, the Department could not reconcile its records with the expenditure in the general ledger system40 maintained by the Ministry of Finance.
The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Department should maintain an expenditure ledger and use it to reconcile its expenditure to that recorded in the FMIS general ledger on a monthly basis.
Management Comment When the FMIS system commenced in 2006, the Ministry of Finance advised Accounting Heads that it is to ‘the discretion of the ministries/departments whether to maintain the manual expenditure ledger or fully rely on the computerized one’.

The Department has chosen the computerized one as it is fast and accurate.
14.27 Non – Preparation of Main Trust Fund Account Statement Ministries and Departments that operate Fund 9 Main trust accounts should reconcile these accounts and send the reconciliations together with a copy of the bank statement to FMIS by 8th February 2013.41 Within five days after the end of each month, the Assistant Accounts Officer shall prepare a trust reconciliation to reconcile trust account balances to the ledger total and the trust bank account.
42 Details of balances must be attached to the reconciliation statement.43 37 Finance Instruction 2010 – Section 15 38 Department of Justice Finance Manual 2013 - Section 15.3.1 39 Department of Justice Finance Manual 2013 - Section 15.3.2 40 Financial Management Information System controlled by Ministry of Finance.
41 Finance Circular No.13/2012 - Clause 14.4 42 Department of Justice Finance Manual 2013- Section 14.4.1 43 Department of Justice Finance Manual 2013- Section 14.4.2 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Each agency must include the trust account statement of receipts and payments in its annual financial statements.
44 to The Telecommunication Development Trust Fund was established for telecommunications providers45 on “inbound international chargeable calls” under the Industry Reform objective to facilitate Government’s ICT Development programme.

According to information obtained during the audit, the Trust Fund account has been in existence since 2010 and levies are directly deposited by telecommunications providers into specific bank account.
The Telecommunication Development Trust Fund bank account is maintained with the Westpac Bank account (9803088989).

levies charged There were inadequate information provided for audit by the Ministry to determine the total levies that have been collected from telecommunication providers and how the funds have been utilised since the establishment of the Telecommunication Development Trust Fund in 2010.
Our review of available records pertaining to the trust fund revealed the the Department Main Trust Fund Account had a credit balance of $2,896,51946 as at 31/12/2013 for which the Department failed to prepare any reconciliation.

The above indicates weak monitoring of the department’s transactions and could result in undetected fraud and irregularities.
Recommendation  The Principal Accounts Officer should ensure that monthly reconciliations are performed for the main trust fund accounts and any variances noted are to be investigated and adjusted accordingly.

 A statement of receipts and payments for the trust fund should be included in the department’s agency financial statement.
Management Comment The monthly bank reconciliation was not done for 2013 as the Ministry of Public Enterprise failed to do the reconciliation from February 2011 (the month the account was established with Westpac) to December 2012.

We informed FMIS about the outstanding reconciliations and they instructed us to wait for the completion of the reconciliations by the Ministry of Public Enterprise before proceeding with 2013 reconciliation as there are outstanding items ( e.g.
un-presented cheques, outstanding items etc.)

that will be carried forward to January 2013 .

Unfortunately, the reconciliations were not done.

As the accounting responsibilities of the Department of Communication lies with the Ministry of Justice Accounts Unit, we made several requests to the Ministry of Public Enterprises Accounts Unit to provide the relevant document copies (payment voucher, bank statement, deposit slip and receipt) to proceed with reconciliation from February 2011till December 2012.
We faced with resistance but finally we received them on the first week of September 2014.

We will proceed with the reconciliation on the first week of October 2014 and targeting to complete them at the end of November 2014.

The exclusion of the trust account statement of receipts and payments in the financial statements was due to an oversight.
We will ensure that it is not repeated for 2014.Not all the information on the total levies that have been collected and the usage of funds since the existence of the Telecommunication Development Trust Fund were given to Audit during period of audit.

The Ministry provided information for 2013 only since this is the year 44 Finance Instruction 2010 –Section 71 (1) (g) 45 Digicel (Fiji) Ltd, Fintel, Telecom (Fiji) Ltd, Vodafone (Fiji) Ltd etc.
46 Financial Management Information System General Ledger Account Number 9-36000-00000-890000 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ the Ministry resume responsibility of the accounting work for the Department of Communication and from the establishment of the account in February 2011 to 2012; the Ministry of Public Enterprise is responsible to provide the necessary information.
14.28 Variance between Main Trust Cash Book and General Ledger Bank Balance The Senior Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.47 All bank accounts must be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by responsible officer.48 A variance of $13,523,173 was noted between the Department’s cash at bank balance and the cash balance reported in the FMIS general ledger as at 31 December 2013.

Refer to Table 14.19 below for details.


Table 14.19: Variance in Bank Balance Account ID Description 9-36301-36001-520301 Communications FMIS ($) 2,906,717 Bank Balance ($) 16,429,890 Variance ($) 13,523,173 As a result, the audit was not able to substantiate the accuracy of cash at bank balance as at 31 December 2013 for the Communication Development Trust Fund Account in the general Ledger Account.
Failure to carry out proper bank reconciliation increases the risk of misappropriation and fraud not being detected.

Recommendation The Principal Accounts Officer should ensure that the department’s bank account is reconciled to the FMIS records on a monthly basis and any variance noted is checked and adjusted accordingly.

Management Comment Refer to comments in 7.3.


In addition, we will be able to specifically identify the breakdown of the variance amount and take necessary actions for their clearance once the reconciliation is updated.

We anticipate completing the updating of the reconciliation in October 2014.
47 Department of Justice Finance Manual 2013, Part 15: Ledger Accounts – Introduction Paragraph 48 Finance Instructions 2010, section 32 (6) Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 14.29 Tender Not Called and Absence of Contract Engagements for Services A local purchase order shall be issued when procuring any goods, services or works from an organization within Fiji, unless a contract or agreement has been entered into.49 The Principal Accounts Officer, Senior Accounts Officer, Accounts Officer and Assistant Accounts Officer must not certify a payment as correct unless they are satisfied that it is in accordance with an LPO, indent, contract, invoice or other authorization.50 Public tenders must be called for any procurement of goods, services or works valued at $50,000 or more, unless a Tender Board has approve an exemption in accordance with Procurement Regulation 30 (1).51 Competitive quotes, instead of public tenders, may be called for procurements below $50,000 unless the PS has approved an exemption.52 The following anomalies were noted for the payment of $93,628 to City Security Services;  The Department of Communication did not sign a contract agreement when engaging the above company;  The Department did not tender the above services to the public before engaging the above company;  Competitive quotations were not obtained ; and  The Department did not seek any approval of exemption from the Permanent Secretary of Finance.
Refer Table 14.20 below for details.

Table 14.20: Payments Made To City Security Services without Tender and Contract Agreement Cheque No.

Payee Details City Security Services (Fiji) Ltd. Payment of security services for the various tele -centers in Fiji.
0207 0220 0274 0299 0480 0510 0521 Date 10/01/13 08/02/13 10/04/13 08/05/13 04/10/13 07/11/13 04/12/13 Total Amount ($) 26,533.26 22,782.42 7,174.62 6,756.44 9,766.26 10,453.50 10,161.63 93,628.13 While the need for services may have been necessary and urgent, it certainly does not require deviations from policies and guidelines governing the purchase of these good and services.

Failure to do so could result in unauthorised procurement and over expenditure.
Recommendations  The Head of Department and the Accounting Head should comply with the procurement guidelines and procedures and must call for annual tender for the offer of security services.
49 Ministry of Justice Finance Manual 2013 – Section 2.5.1 50 Ministry of Justice Finance Manual 2013 – Section 2.8.4 (i) 51 Ministry of Justice Finance Manual 2013 – Section 2.3.1 52 Ministry of Justice Finance Manual 2013 – Section 2.3.2 Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Head of Department and the Accounting Head should ensure that a contract agreement is develop for the offer of security services and the Ministry of Finance approval to be obtained for any exemption.
 Disciplinary action should be taken against officers who continue to disregard regulations governing the procurement of goods and services.

Management Comment No comments received from the department.
Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES PRISONS AND CORRECTIONS DEPARTMENT Appendix 14.1: Surcharge yet to be instigated for Motor Vehicle Accidents Date Vehicle number Place of accident Driver/ rank no Cause of Accident 04/05/09 GN 513 Wainigasau Bridge TRO Poasa Nacevalia Not Provided GN751 Court House, Nausori 03/6/09 GN 743 Dog Unit Naboro TR/PCO Lalakomacoi Manasa POC Martha Ranamu 17/9/09 GN645 Kennedy Avenue, Nadi POC Esala Nadruku 16/7/10 GM 927 Naimataga Veisari, Lami POC Mosese Bolatolu 17/11/08 GN 513 Bus stop, Naboro POC Filipe Tuilawalawa 13/9/10 GN 751 James Madivan Junction, Labasa POC Isoa Rawaico 29/9/10 FM 927 Tawayawa Ba POC Lino Naicoi Driver of the Corrections vehicle fell off to sleep while driving; vehicle veered off the road ramming onto the Wainigasau Bridge and tumbled into the creek.
Carelessness of the driver Driver failed to negotiate wet surface and the face of the vehicle hit a coconut tree.

Fault of the Driver as he was following too close to the car in front damaging the right face panel, lights.

Driver of the Corrections vehicle fell off to sleep; passenger pulled steering to avoid collusion, flipping vehicle to its side.
The driver was at fault as it hit the bus from the rear Driver failed to use right hand rule resulting in accident; damages to right fender, bumper, and grill.

The driver of Corrections vehicle was following too close, he was at fault for hitting the left side of rear of the private car.

Damage to the right side of bumper of vehicle FM 927.

Audit Remarks Cost of Damage53 ($) 54,000.00 The officer was surcharged by MOF on 27/09/11 and the concerned officer appealed on 21/05/12.
No further records in the file.

12,000.00 No records pertaining to the surcharge could be sighted.

2,500.00 The sum of $2,250 was not recovered as verified to the payroll and the office left service on 18/03/10.

2,623.00 The officer was surcharged by MOF on 31/12/09 and the concerned officer appealed on 18/02/13.

No further records in the file.

10,000.00 The driver was surcharged by MOF on 01/03/11 but no deduction initiated to date.
11,000.00 The officer was surcharged by MOF, however, no deductions were initiated and the officer left service on 29/01/13.

1,730 No records available in the file for audit verification.

8,694.53 The officer was surcharged on 23/04/12 whereas the officer left service on 03/12/11.

Thus, no recovery could be initiated.
53 Critical Analysis of Fiji Corrections Service, Motor Vehicle Accident Report Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Vehicle number Place of accident Driver/ rank no Cause of Accident 23/11/10 FM 927 Kings Road, Yaralevu, Ba POC Lino Naicoi 17/01/11 GN757 Marine Drive,Lami POC Kitione Cavalevu 16/2/11 GN752 Farm Road at Field 25 POC Suliasi Suguloco 15/10/11 GN512 Urata Hill, Savusavu COC Asif Mohammed 30/01/12 GN748 Votua Road Ba TRPOC Ramateni 05/10/12 GN748 Tau Village, Nadroga COC Rusiate Semate 16/03/10 GN751 Unknown and FM938 TRPOC Jone Ramateni and POB Vijay Nandan Fault of the driver who was driving too fast and failed to stop resulting in colliding with a locomotive crossing the road.
Driver was following too close to the vehicle in the front and collided causing 4 other vehicles in the front to bump into each other.

Driver had no driving licence and while driving up field 25, he lost control and the vehicle flipped to its side Driver was driving too fast and failed to negotiate the hill and lost control causing vehicle to flip upside down at the Urata Hill, Savusavu.

Vehicle was damaged by recent flood where the driver had parked.
Vehicle flipped to its left side and sustained damages to passenger side, roof and windscreen.

Negligence on the driver of FM938 2005 GM322 Newtown, Nasinu COC Simione Tabua Hit a dog and caused the damaged to the bumper 14/04/07 GN490 Sigatoka Police Station Ilisoni Waqanisoraki Unknown Audit Remarks Cost of Damage53 ($) 47,109.03 The officer was surcharged on 23/09/11, however, no deductions were initiated and the officer left service on 03/12/11.

Thus, no recovery could be initiated.


5,000.00 Finance date of submission to SG’s office was 02/03/11.

No further records in the file.

15,918.93 The officer was surcharged on 22/05/12, however, no deductions initiated to date.

8,063.00 The officer was surcharged on 23/04/12, however, no deductions initiated to date.

2,500.00 Appeal by the concerned officer on 13/03/13 to reduce the surcharge.

No further records in the file.


29,765.22 No records in the file pertaining to the accident and surcharge action undertaken.

523.25 Vijay Nandan surcharged on 10/08/11, however, no deductions initiated to date.

1,232.00 The officer was surcharged on 08/06/12, however, no deductions initiated to date.

Unknown Letter from MOF dated 20/01/13 sighted, requesting the department to provide the accident report.

No other details pertaining to the accident in the file.

The officer left service on 15/06/11.


Ministry of Justice and Anti – Corruption (Justice and Prisons & Corrections Department) Section 14: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 15 Ministry of Information Programme Statement The Ministry is Government's primary information agency providing the link between Government, the media and the public.
The Ministry's role is to better inform the public about government’s policies, programmes and plans.

It also has the responsibility of improving knowledge generation and distribution through the archives and libraries.
To undertake these responsibilities, the Ministry provides administrative support and policy advice, as well as collates, generates and disseminates government information through its film and television services/production facilities, its news and publication facilities, its depository for public records and the network of library services that it manages.
Table of Contents PART A: FINANCIAL STATEMENT ........................................................................................................................................ 1 15.1 Audit Opinion ............................................................................................................................................................. 1 15.2 Statement of Receipts and Expenditure .................................................................................................................... 1 15.3 Appropriation Statement ........................................................................................................................................... 2 15.4 Statement of Losses ................................................................................................................................................. 3 PART B: AUDIT FINDINGS ..................................................................................................................................................... 3 15.5 Expenditure Ledger not maintained .......................................................................................................................... 3 15.6 Anomalies for New Recruitment ................................................................................................................................ 3 15.7 Lack of Supporting Documents for Taxi Payments ................................................................................................... 4 15.8 Poor Maintenance of Motor Vehicle Records ............................................................................................................ 5 PART A: FINANCIAL STATEMENT 15.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Information has resulted in the issue of an unqualified audit report.
Management attention however was drawn to that the Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

It prepared its financial statements from the FMIS general ledger.

As a result, audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.
15.2 Statement of Receipts and Expenditure The Ministry of Information collected total revenue of $12,508 and incurred a total expenditure of $5,264,345 in 2013.
Table 15.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Library Fines Total State Revenue Ministry of Information 2013 ($) 2012 ($) 2,122 2,122 3,219 3,219 Section 15: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Agency Revenue Revenue from Sale of Production Film Miscellaneous Total Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchase Capital Grants and Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) Total expenditure increased by $1,422,422 or 37% in 2013 compared to 2012.
This was mainly due to the increase in capital purchase by 273% for the restoration and digitization of Fiji’s Audio Visual History and Film and Television Unit, capital construction by 100% for building maintenance and purchase of goods and services by 20%.

15.3 Appropriation Statement The Department incurred a total expenditure of $5,264,345 in 2013 against the budget of $5,837,986 resulting in a surplus of $573,641 or 9.8%.

A detail of expenditure against the budget estimate is provided in Table 15.2.
Table 15.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchase Capital Grants & Transfers Total Capital Expenditure Value Added Tax Total Expenditure Ministry of Information Budget Estimate ($) 1,802,223 271,987 228,392 294,593 1,330,496 18,695 64,676 4,011,062 Changes ($) 0 (23,590) 26,786 35,214 (38,410) 0 0 0 550,000 1,893,044 0 2,443,044 654,188 7,108,294 (286,403) (818,213) 0 (1,104,616) (165,692) (1,270,308) Revised Estimate ($) 1,802,223 248,397 255,178 329,807 1,292,086 18,695 64,676 4,011,062 263,597 1,074,831 0 1,338,428 488,496 5,837,986 Actual Expenditure ($) 1,619,316 235,178 221,800 277,392 1,182,018 14,432 45,176 3,595,312 198,771 1,050,142 0 1,248,913 420,120 5,264,345 Lapsed Appropriation ($) 182,907 13,219 33,378 52,415 110,068 4,263 19,500 415,750 64,826 24,689 0 89,515 68,376 573,641 Section 15: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 15.4 Statement of Losses There was no significant loss noted for 2013.
PART B: AUDIT FINDINGS 15.5 Expenditure Ledger not maintained The Clerical Officer Accounts shall enter details on payment vouchers in an Expenditure Ledger.

All payments raised during the month must be totalled and the figure noted in the expenditure ledger.

At the end of each month, the Accounts Officer shall prepare an expenditure and commitment statement.
The statement shall be submitted to the Senior Accountant for inclusion into the monthly management report.1 The audit noted that the Ministry does not maintain an expenditure ledger.

As a result, the Ministry could not reconcile its expenditure with that in the FMIS general ledger maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.
Recommendations The Accounting head should:  maintain an expenditure ledger; and  reconcile its expenditure ledger with FMIS on a monthly basis.

Management Comment Management acknowledges the findings highlighted in the Audit report for 2013.

Recommendations are also noted for improvement.

As required, reconciliations are carried out twice.

When monthly Vat is reconciled and returns are prepared and secondly before Expenditure reports are prepared.
FMIS GL reports are reconciled directly with payment vouchers in the absence of expenditure ledger.

Any errors and mispostings are adjusted immediately through journal vouchers before closing of each month.

A scan copy of the Expenditure and Commitment report for October 2013 has also been enclosed, which is normally prepared and submitted monthly by the Senior Accounts Officer together with monthly management report.

Other monthly reports are also available for audit verification if required.
Ministry in past has never maintained and expenditure ledger, based upon clarification from FMIS that reconciliation could be done online.

However, as per audit recommendation, an expenditure ledger will be maintained and prudent measure will be taken to ensure that Ministry continues to comply with the regulations.
15.6 Anomalies for New Recruitment Before either a letter of appointment or contract of appointment is issued a candidate selected must undergo a medical examination and be passed as being in all respects physically and mentally fit by an authorised officer.2 1 Ministry of Information Finance Manual 2011- section 2.8.11 – 2.8.14 2 General Orders 2011 – Section 203 (a) Ministry of Information Section 15: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The employee must have a satisfactory police record.3 The audit noted that the Ministry recruited three officers in 2013 without obtaining their police clearance or medical certificate.
Refer to Table 15.3 below for examples.

Table 15.3: Officers without Police clearance or Medical certificate EDP Numbers 93819 PF1638 93712 Date of Appointment 25/02/13 Position Remarks Senior Information Officer No police clearance and medical certificate.

09/09/13 Assistant Information Officer (Project) No police clearance.

02/09/13 Senior Information Assistant No police clearance and medical certificate.
The recruitment procedures of obtaining police clearance and medical certificates were not observed thus there are risks that the best candidates may have not been recruited.

The new officers may pose security and information risks while their physical and medical competencies are also yet to be resolved.

Recommendation The Ministry’s staff board should ensure that medical and police reports are obtained for all the new appointments as per the General Order 203.
Management Comment No comment received from the Ministry.

15.7 Lack of Supporting Documents for Taxi Payments All staff shall ensure that the correct official forms are used in the following areas: i.

Purchasing & Payments ii.

Receipting & banking iii.

Asset & liability recording iv.


v. Vehicle usage4 Stocktaking Particulars on any required form must be fully completed and signed by the preparing officer and supervisor before it is authorised.5 The Senior Accountant is responsible for the safe keeping and proper maintenance of all accounting records or documents.6 The audit noted that taxi payments made by the Ministry during the year lacked adequate supporting documents.

Refer to Table 15.4 below for detail.


3General Orders 2011 – Section 203 (b) 4Ministry of Information 2011 – Section 17.1.1 5Ministry of Information Finance Manual 2011 – Section 17.1.2 6Ministry of Information Finance Manual 2011 – Section 17.1.3 Ministry of Information Section 15: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 15.4: Lack of supporting documents for taxi payments Date 09/01/13 Cheque No.
213088 Payee Matua Taxis Amount ($) 1,843.00 20/02/13 213172 Matua Taxis 4,270.60 Detail Remarks Payment for hiring of taxi services for Media Monitor for the month of October 2012 Payment for providing transport to the Ministry for the month of December 2012 & January 2013 Missing taxi voucher and no proper minute to the Permanent Secretary to approve payment December taxi voucher missing.
As per January taxi voucher attached, Audit calculated taxi costs of $1,396.60 while Ministry paid $2,667.70 The above indicate that payment vouchers were not properly verified by the accounting officers before they are approved for payments.

Recommendation The Senior Accountant must ensure that all payments are verified with proper supporting documents before they are authorized.

Management Comment No comment received from the Ministry.
15.8 Poor Maintenance of Motor Vehicle Records When a driver’s running sheet is handed to the Supervisor of Transport at the end of the day, the total mileage for the day will be recorded in the logbook.7 At the end of each month the Assistant Secretary shall check the driver’s running sheets and reconcile it to the monthly mileage summary in the logbook, before signing the summary.8 The audit noted the following anomalies in the maintenance of the motor vehicle records:   the month of June running sheets for vehicle GN 670 were not updated; incorrect calculation of mileage.
Refer to Table 15.5 below for examples.

Table 15.5: Incorrect Mileage Record Vehicle Registration No.
GN 670 Month Opening Mileage as per Logbook Mileage for the Month Closing Mileage as per Ministry’s Calculation January February March April 133158 135511 137567 139869 1877 1832 2736 3135 135511 137533 139869 142912 Closing Mileage as per Audit Calculation 135035 137343 140303 143004 Variance 476 190 434 92 7Ministry of Information Finance Manual 2011 – Part 11.3.20 8Ministry of Information Finance Manual 2011 – Part 11.3.21 Ministry of Information Section 15: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Vehicle Registration No.
Month Opening Mileage as per Logbook Mileage for the Month Closing Mileage as per Ministry’s Calculation May October November 142912 153044 156717 December 16630 2725 1356 4972 3926 145741 156717 161630 163891 Closing Mileage as per Audit Calculation 145637 154400 161689 20556 Variance 104 2317 59 143335  variances in mileage record between the running sheets and the logbooks.

Refer to Table 15.6 below for detail.


Table 15.6: Variances in mileage between running sheets and logbook record Vehicle Registration No.

GN 670 Dates Mileage as per Running Sheet Record Mileage as per Logbook Record Variance 03/08/13 04/08/13 05/08/13 29/08/13 05/09/13 29/10/13 13/12/13 15/12/13 98 46 88 72 12 76 1731 1501 - - 66 131 - 29 - 215 98 46 22 59 12 47 1731 1286  log books for vehicle GP 095 were not signed for the months of March, May, July, October, November and December.
The anomalies demonstrate the laxity of the transport officer and his/her supervisor in ensuring that motor vehicle records are properly maintained up to date.

There is risk of misuse of motor vehicle when records are not properly updated.

Recommendations The Transport Officer should:  ensure that the motor vehicle records are accurately prepared and maintained according to the requirements of the transport rules and regulations.
 check the transport records for accuracy and consistency before signing it.

Ministry’s Comments No comment received from the Ministry.

Ministry of Information Section 15: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ Section 16 Ministry of Strategic Planning, National Development and Statistics Programme Statement The Ministry comprises of the Strategic Planning and National Development Office (SPND) and the Fiji Bureau of Statistics (FBOS).
The Strategic Planning Office co-ordinates and monitors all development efforts and formulates and monitors the implementation of the National Development Plan and Strategies.
It provides policy advice on Macroeconomic, Sectoral and Human Resources issues, undertakes economic aggregate forecasting, formulates the Public Sector Investment Programmes, coordinates Government’s reform agenda through its Good Governance Unit, coordinates manpower planning particularly in the identification of priority areas, chairs and provides secretariat services to the many committees it represents and other Government committees.
The major roles of Fiji Bureau of Statistics [FBOS] are to collect, compile, abstract analyse and publish statistical information relating to the commercial, industrial, agricultural, social, economic and general activities and conditions of the people of Fiji in a timely and coherent manner.

The Department organizes a coordinated scheme of social and economic statistics relating to Fiji and conducts a Census of the population of Fiji and Household Surveys as required.
FBOS collaborates with Government Ministries/Departments and other agencies in the collection, abstraction, analysis, and publications of statistical records.
Table of Contents 16.4 16.1 16.2 16.3 PART A: FINANCIAL STATEMENTS ................................................................................................................................. 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 2 Appropriation Statement ....................................................................................................................................... 3 PART B: AUDIT FINDINGS ...................................................................................................................................................... 3 STRATEGIC PLANNING AND NATIONAL DEVELOPMENT OFFICE (SPND) ....................................................................... 3 Payroll Expenditure ............................................................................................................................................... 3 16.4.1 Overpayment of Salaries ..................................................................................................................................... 3 Anomalies in Drawings Account ............................................................................................................................ 4 Anomalies in the maintenance of the IHRDP Trust account ................................................................................. 5 Anomalies in Operating Trust Accounts (Recurring Issue) ................................................................................... 6 FIJI BUREAU OF STATISTICS ................................................................................................................................................. 7 Payroll Expenditure ............................................................................................................................................... 7 16.8.1 Payment of Project Staff Wages and Allowances from the 2014 budgetary allocations ...................................... 7 16.8.2 Delay in surcharge action ................................................................................................................................... 8 APPENDICES ........................................................................................................................................................................... 10 Appendix 16.1: Overpayment Of Salary – EDP 91254 ..................................................................................................... 10 16.5 16.6 16.7 16.8 PART A: FINANCIAL STATEMENTS 16.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Strategic Planning, National Development and Statistic resulted in the issue of a qualified audit report as the reconciliation statement for Drawings Accounts for Strategic Planning and National Development Office was not provided for audit and as such the expenditure amounts in the accounts could either be under or overstated.
Ministry of Strategic Planning, National Development & Statistics Section 16: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ The Ministry’s attention was also drawn to the Integrated Human Resources Development Program (IHRDP) Trust Account which is understated by $40,491 as a result of incorrect accounting of the community contributions received in 2012 that is still being reflected in the Consolidated Fund Account and is yet to be refunded into the IHRDP Trust account.
In addition, the Strategic Planning and National Development Office did not reconcile the expenditure recorded in the Financial Management System (FMIS) as no expenditure ledger was maintained.

It prepared its financial statement from the FMIS general ledger records.

As a result, the accuracy of expenditure totalling $4,012,618 as part of the Ministry’s total expenditure reflected in the Statement of Receipts and Expenditure could not be ascertained.
16.2 Statement of Receipts and Expenditure The Ministry incurred a total expenditure of $10,147,496 during 2013 compared to $5,839,584 incurred in 2012.
Table 16.1: Statement of Receipts and Expenditure in 2013 Description Receipts Board Member Miscellaneous Revenue Sales of Publications Total Revenue Expenditure Established staff Government Wage Earners Travel & communication Maintenance & Operations Purchase of goods & services Operating grants & transfers Special expenditures Capital Purchase Capital Grants & Transfers Value Added Tax Total Expenditure 2013 ($) 2012 ($) --- 12,182 1,718 13,900 2,901,353 117,837 244,388 389,554 159,956 18,623 4,655,018 --- 1,000,000 660,767 10,147,496 25,020 67,819 2,995 95,834 2,283,428 104,105 192,643 264,061 109,585 20,000 1,562,215 34,103 1,000,000 269,444 5,839,584 Revenue declined by $81,934 (85%) in 2013 compared to 2012 due to incorrect receipting of IHRDP community contributions into Consolidated Fund Account during 2012 which is yet to be rectified.
Total expenditure increased by $4,307,912 (74%) in 2013.

Special Expenditure increased by 198% as a result of Bureau of Statistics conducting the Household Income & Expenditure Survey (HIES) and the Household Listing Exercise (HLE).

There were also increases in established staff expenditure (27%), government wage earners (13%), travel and communication expenditures (27%), purchase of goods, & services (46%), and maintenance and operations expenditures (48%).
Ministry of Strategic Planning, National Development & Statistics Section 16: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ 16.3 Appropriation Statement The Ministry incurred expenditure totalling $10,147,496 during the year 2013 against the revised budget of $11,452,456 resulting in a savings of $1,304,960 or 11.4%.

The details of expenditure against the budget estimates are provided in Table 16.2 below.
Table 16.2: Appropriation Statement for 2013 – Head 17 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Purchase Capital Grants and Transfers Total Capital Expenditure 13 Value Added Tax Budget Estimate ($) 3,365,001 115,785 260,300 336,400 133,781 20,000 5,325,489 9,556,756 --- 1,000,000 1,000,000 895,700 TOTAL EXPENDITURE 11,452,456 Changes ($) (318,358) 20,275 51,500 98,072 38,511 --- --- (110,000) Revised Estimate ($) Actual Expenditure ($) 3,046,643 136,060 311,800 434,472 172,292 20,000 5,325,489 9,446,756 2,901,353 117,837 244,388 389,554 159,956 18,623 4,655,018 8,486,729 Lapsed Appropriation ($) 145,290 18,223 67,412 44,918 12,336 1,377 670,471 960,027 110,000 --- 110,000 110,000 1,000,000 1,110,000 --- 1,000,000 1,000,000 110,000 --- 110,000 --- --- 895,700 660,767 234,933 11,452,456 10,147,496 1,304,960 PART B: AUDIT FINDINGS STRATEGIC PLANNING AND NATIONAL DEVELOPMENT OFFICE (SPND) 16.4 Payroll Expenditure 16.4.1 Overpayment of Salaries Upon completion of data entry into the Payroll System, the Ministry of Finance will print an edit report of the inputted data.1 The salaries officer shall reconcile entries in the edit report to the original input forms.
Any corrections shall be done by preparing new input forms.2 Where losses arise from overpayments to government officers, the Accounting Head shall, with the approval of the Deputy PS effect recovery through direct salary deduction.

Officers must be informed of the overpayment and the rate of deduction from their salary before the deduction is carried out.
3 The audit noted in 2013 that an Economic Planning officer (EDP 91254) who was on attachment with the Commissioner Northern Office was overpaid $6,078 on the post of Acting Senior Economic Planning officer.
1 4.2.10 2013 Pro-forma Finance Manual 2 4.2.13 2013 Pro-forma Finance Manual 3 14.2.5 2013 Pro-forma Finance Manual Ministry of Strategic Planning, National Development & Statistics Section 16: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ The overpayment occurred from an input recorded in the FS01 form sent to the Ministry of Finance for Pay 04/13.
The form FS01 was checked by the former Accounts Officer and approved by Principal Administration Officer.

The salary overpayment was detected after the preparation of the salary reconciliation but the salary officer did not take immediate action to rectify the error.

Refer to Appendix 16.1 for details.

This issue is exacerbated by the delays in the preparation of payroll reconciliations on time which is required to be prepared and checked within one week from the pay date.
Recommendations:  The National Planning office should immediately recover the overpaid salary from the officer;  Surcharge action to be taken against the responsible officers for taking a laxity approach in not checking the salary edit reports before it was submitted to Ministry of Finance; and  The Ministry should ensure that salary reconciliations are undertaken within one week from the pay date.
Management Comment No comment from Ministry 16.5 Anomalies in Drawings Account The accounts supervisor shall prepare bank reconciliation within 5 days of the end of the month.

Details of un-presented cheques and other reconciling items should be attached to the reconciliation statement.

Once the bank reconciliation is prepared, it should be signed and dated by the accounts supervisor and submitted to the Accounting Head.
The Accounting Head must verify balances in the bank reconciliation to the cashbook, bank statements, un-presented cheque list, and the previous month’s bank reconciliation before certifying it.

4 All payments, including VAT, must be immediately recorded in the financial management information system and an Expenditure Ledger.5 A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.
Any transaction raised affecting this accounts shall be entered in the appropriate ledger.6 The following anomalies were noted from the audit of the Drawings Account of the Strategic Planning and National Development Office:  The bank reconciliation for the whole year nor a list of un-presented cheques as at 31/12/13 were provided during the audit;  There was no expenditure ledger maintained for the year 2013 by the Strategic Planning and National Development Office (SPND).
The SPND relied solely on the financial management information system to maintain payment details; and  Board of survey on the drawings account as at 31/12/13 was not done.
4 Pro-forma Finance Manual 2013 – s7.4.8 to 7.4.11 5 2010 Finance Instruction Division 3 Part 15 6 S16.3 – 2013 Pro-forma Finance Manual Ministry of Strategic Planning, National Development & Statistics Section 16: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ The absence of proper records and reconciliations and using only FMIS records raises risks of misstatements of amounts in the agency financial statements.
Recommendations:  The Office should maintain an expenditure ledger and be reconciled monthly with FMIS records.

 Board of surveys of drawings account must be done annually as required by the Finance Instruction.

Management Comment No comment from Ministry 16.6 Anomalies in the maintenance of the IHRDP Trust account The trust officer must submit the trust reconciliation to the Accounting Head within 10 days after the end of the month.
The Trust reconciliation shall be in accordance with the format provided in Schedule 6.
A duplicate must also be submitted to Ministry of Finance.7 All payments from the trust account shall be adequately supported and made only for the purpose of the trust.8 Each year the trust officer shall prepare an annual trust receipts & payments statement within two weeks of the end of the year.9 The Integrated Human Resource Development Program (IHRDP) Trust account was set up in June 2013 to hold 1/3 community contribution for the IHRDP projects.
Once the 1/3 contribution has been provided by the recipient, Government then releases the remaining 2/3 along with the 1/3 contribution kept in Trust by National Planning Office.
The following anomalies were noted from the trust account:  The Trust reconciliation was not maintained during the year until the time of audit during April 2014;  There is a variance of $4,590 between the Trust general ledger (GL) (9-17101-63999-895054) and the Trust Cash GL (9-17101-63999-520401);  The 1/3 community contributions receipted in 2012 totaling $40,491 which were deposited into Consolidated Fund Account have yet to be replenished to the IHRDP trust account; and  There have been instances of utilizing the trust funds to pay wages and accountable advances which defeat the purpose of the trust.
These issues reflect on the lack of basic accounting and reconciliation knowledge of the officer handling the IHRDP funds.

It is exacerbated by the absence of checks by the IHRDP Manager on the maintenance of the Trust records.
7 15.4.4 – 2013 Pro-forma Finance Manual 8 15.2.3 – 2013 Pro-forma Finance Manual 9 15.4.5 – 2013 Pro-forma Finance Manual Ministry of Strategic Planning, National Development & Statistics Section 16: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ Recommendations:  The Ministry should replenish the 2012 receipts of 1/3 contribution from the Consolidated Fund Account into the IHRDP Trust account.
 Monthly Reconciliation should be prepared and checked to reconcile system (GL), cash book and bank records to ensure accuracy.

 The Ministry should consider up-skilling the Trust Officer on basic accounting knowledge; Management Comment No comments from Ministry.
16.7 Anomalies in Operating Trust Accounts (Recurring Issue) Trust Fund Accounts comprise monies, which are not the property of the State and are not utilized for the purposes of government.10 The audit noted that the operating trust fund account for the Strategic Planning and National Development Office had a credit balance of $78,148 as at 31/12/13.

The trust fund account increased by $13,023 or 20% compared to 2012.
Tabulated below is the trust fund account balances for the Office over the last four years.

Table 16.3: Operating Trust Fund Account Balance Year 2010 2011 2012 2013 Balance ($) 39,701 50,875 65,125 78,148 The majority of the trust fund account balance is made up of the outstanding FNPF deductions, PSC scholarship loan, and Service Worker Credit Union which have credit balances of $31,792, $17,417, and $23,946 respectively.
The audit noted that monthly reconciliation of the operating trust fund accounts failed to identify the particulars of the outstanding balance.

The increase in the trust fund account balances indicates that the monies held as trust have accumulated in 2013 and are not being cleared to respective entities on time.

Failure to clear trust monies reflects very poorly on the Accounts Officer in ensuring that all the trust fund accounts balances are cleared on a monthly basis.
Recommendation  The Office should ensure that the all the monies kept in the trust are cleared and paid to the respective payees accordingly on a timely basis during the monthly end; and 10 Finance Instructions 194 Ministry of Strategic Planning, National Development & Statistics Section 16: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________  The trust accounts should reflect amounts which can be supported with relevant data which is true and fair with proper supervision control checks.
Management Comment No comment from Ministry.
FIJI BUREAU OF STATISTICS 16.8 Payroll Expenditure 16.8.1 Payment of Project Staff Wages and Allowances from the 2014 budgetary allocations Under the terms and condition of employment for Government wage earners provides that wages and leave pay shall be paid on termination of employment or resignation provided appropriate notice has been given as soon as possible on the day following the date of termination.11 Payment in respect of annual leave shall be made a week in advance.12 The Project Worker shall be paid all accrued benefits at the end of the appointment or contract prior to re-engagement.
13 The appointment of the Project officers appointed from January to December 2013 was approved by the Permanent Secretary for Strategic Planning, National Development, and Statistics.14 However, the Bureau was temporarily employing these project officers whose contracts are renewed after a three months term.

The terms and conditions of services for these officers are governed by the provisions of the Joint Industrial Council (JIC) 2010.
However audit noted that these officers have been continuously re- engaged for the last 3 to 4 years.

The audit noted that on January 2014, the Bureau paid out $54,74315 being the wages and overtime pay owed to these project officers for 2013 from the 2014 budgetary allocation under SEG 7 – Special Expenditure.

The Bureau’s application to for these outstanding overtime hours and wages paid from the 2013 budget allocation was rejected by the Ministry of Finance.
This was due to the Bureau’s inability to meet the deadline of 31/12/13 set by the Ministry of Finance for processing of all 2013 payments.
Details of the payments are tabulated below: Table 16.4: Details of Payment made from 2014 Budget Allocation Division Household Income and Expenditure Survey (HIES) Household Listing Exercise (HLE) Economics Statistics Division Overtime ($) 14,513.21 2,470.90 3,010.97 4 Days’ Pay (26/12 – 31/12) ($) 15,233.45 12,663.82 4,825.52 Total ($) 29,746.66 15,134.72 7,836.49 11 Terms and Conditions of Employment for GWEs (JIC)2010 – s45(c) 12 Terms and Conditions of Employment for GWEs (JIC) 2010 – s50(f) 13 Terms and Conditions of Employment for GWEs (JIC) 2010 – s5e 14 Memorandum: Approval for Project Positions dated 14/01/13 15 Cheque number 023261 dated 2/1/2014 Ministry of Strategic Planning, National Development & Statistics Section 16: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ Division Social Statistics Division TOTAL Overtime ($) 1,303.26 21,298.34 4 Days’ Pay (26/12 – 31/12) ($) Total ($) 722.05 33,444.84 2,025.31 54,743.18 In addition, annual leave accrued by these officers amounting to $45,868 remained unpaid at the end of the appointment on 31/12/13 contradicting the terms and conditions of employment for Government Wage Earners 2010.
The utilisation of the 2014 budget to cater for outstanding 2013 payments does have financial implication on the Bureau’s 2014 budgetary allocations and cash flows and impact the planned project activities earmarked for 2014.

Recommendations The Bureau should:   Ensure that the Officer responsible for administering the leave is proactive and to ensure that the leave roster is drawn up by planning well the leave dates of officers and also to update them regularly.
In addition, officers are informed of their leave dates to avoid accumulation of leave towards the end of the financial year; Ensure that all payment of wages related expenses incurred during the year are paid in the same year.

Management Comment The findings on the above are true and it highlighted a weakness in our processes that in this instance had impacted the financial provision of our project funds for 2014.
The strengthening exercise by the Ministry of Finance in respect to its strict adherence to set timelines for the closure of accounts processes for 2013 really made its impact on the Bureau by shutting the window that over the years had allowed us the access to make last minute payment on closing day.

Whilst the Finance section did engage with all other divisions of the Bureau through visitation and advice to inform them on the position of the Ministry of Finance, this was not seriously considered.
The lesson learnt here was wakeup call that has resulted in the positive engagement of the divisional heads and supervisors to the memorandum (attached) issued early this year directing responsible and proper leave management plans be undertaken and monitored from the supervisors level and upwards.

It is hoped that this will prevent what has been noted from happening again.
16.8.2 Delay in surcharge action The Deputy Secretary of the Ministry of Finance has the authority to surcharge officers, other than the Permanent Secretary of an agency.16 For damage to or loss of government vehicles, 100% recovery of the full cost of repairs or replacement.17 The rate of recovery from the salary or wage of an officer or employee must not be less than 5% of their net salary or wage (that is, gross after tax) or $100.00, whichever is the lower.18 16 Finance Instruction 2010 Part 11.62.1 17 Finance Instruction 2010 part 11.64 18 Finance Instruction 2010 Part 11.65.1 Ministry of Strategic Planning, National Development & Statistics Section 16: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ Any surcharge recovery must be made in full within five years from the date of the surcharge or for a longer period as approved by the Permanent Secretary for Finance.
The audit noted that the officer (EDP 90791) who was suspended from official duties without salary from 10/11/12 was reinstated with effect from 28/10/13.

Moreover, a surcharge was imposed on the Officer for the damage caused to the government vehicle amounting to $5,629.25 after driving the vehicle without a valid driving license on 11/9/2012.
Despite clear instructions stipulated in Part 11 of the Finance Instructions of 2010, the Bureau is still awaiting an advice from the Surcharge Unit of the Ministry of Finance on the amount to be deducted from the officer’s salary in a fortnight.

The Officer has only seven years of service left to reach the compulsory retirement age of 55.

Failure to activate surcharge action by complying with the Finance Instruction 2010 may result in non- recovery of the damages and is a substantial loss to Government.
Recommendation: The Bureau should as soon as practical institute recovery action on the officer in accordance with Part 11 of the Finance Instruction 2010.

Management Comment The comments highlighted are acknowledged and the recommendation is noted.

We had written to Permanent Secretary Finance on 25th November 2013 regarding the surcharge for EDP 90791 in accordance with the decision of the Public Service Tribunal dated 28th October 2014.
Until to date, after numerous phone call reminders, we have yet to receive a response from Finance.

Follow up has been made again today [13/8/14] and hopefully we will receive a surcharge decision soon.
Ministry of Strategic Planning, National Development & Statistics Section 16: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF THE FIJI – SEPTEMBER 2014 ________________________ APPENDICES Appendix 16.1: Overpayment of Salary – EDP 91254 Pay No Normal Gross Acting Paid Arrears Total Arrears Amount paid Difference FNPF (EMPLYER) 215.58 215.58 215.58 215.58 215.58 215.58 123.19 215.58 215.58 46.00 - - - - - - 92.39 215.58 215.58 215.58 215.58 - - 169.58 215.58 215.58 215.58 215.58 - 954.71 830.17 1031.9 2012 - 26 2013 - - 215.58 - 215.58 - 215.58 - 215.58 - 215.58 215.58 215.58 215.58 123.2 92.38 - 215.58 - 215.58 - 215.58 - 215.58 - - - - 215.58 215.58 15.541 200.039 215.58 215.58 215.58 215.58 215.58 123.2 - 92.38 215.58 - - - - - 1139.49 3567.51 2,428.02 194.24 862.32 2,942.63 2,080.31 166.42 739.12 1,858.54 1,119.42 89.55 215.58 215.58 - 200.039 184.78 (384.82) 307.96 0.01 $5,627.75 TOTAL TO BE RECOVERED FROM EDP 91254 307.97 TOTALS $450.22 $6,077.97 Ministry of Strategic Planning, National Development & Statistics Section 16: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 17 Ministry of Rural and Maritime Development and National Disaster Management Role and Responsibilities is mandated The Ministry of Rural and Maritime Development and National Disaster Management to coordinate and manage government’s rural development programmes in support of Pillars 5 to 8 of the Peoples Charter for Change, Peace and Progress.
These programmes are targeted at generating economic growth and improving the standards of living within rural communities and include Rural and Outer Islands Development Programme; Rural Housing Programme; Schools Building Grant; Self-Help Programme; Committee on the Better Utilization of Land (CBUL) and the Rural Roads Programme.

Additionally, the Ministry is responsible for Disaster Management and Risk Reduction as required under the National Disaster Management Act.
Table of Contents PART A: 17.1 17.2 17.3 PART B: 17.4 17.5 17.6 FINANCIAL STATEMENTS .................................................................................................................................. 2 Audit Opinion ......................................................................................................................................................... 2 Statement of Receipts and Expenditure ................................................................................................................ 3 Appropriation Statement ....................................................................................................................................... 3 AUDIT FINDINGS .................................................................................................................................................. 4 Arrears of Revenue ............................................................................................................................................... 4 Expenditure Ledger Not Maintained ...................................................................................................................... 5 Trust Fund Cash Account Balance Anomalies ...................................................................................................... 6 17.6.1 Significant Variance between Trust Fund Cash and Liability Account Balance ................................................. 6 17.6.2 Significant Variance for Provincial Development Trust Fund Cash Account ..................................................... 7 17.6.3 Non – Maintenance of Cash Book for PMNDRR Trust Fund Account ............................................................... 9 17.6.4 Anomalies in the PMNDRR Trust Fund Cash Account Balance ...................................................................... 10 17.6.5 Pro-Long Unclaimed Wages Not Paid for Deceased Employee ...................................................................... 12 17.6.6 Trust Fund Expenses Paid From
 Operating Drawing Fund Account ............................................................... 13 17.7 Unspent Funds Held .............................................................................................................................................. 14 17.8 Underpayment of Value Added Tax (VAT) - Error in the Preparation of VAT Returns........................................... 15 HEADQUARTER ...................................................................................................................................................................... 16 17.9 Excessive Overtime for Government Wage Earners ............................................................................................. 16 17.10 Unauthorised Payment of Honorarium/ Overtime Allowance ................................................................................. 17 17.11 Unsubstantiated Established Payroll Expenditure ................................................................................................. 19 17.12 Unsubstantiated Government Wage Earners (GWE) Payroll Expenditure ............................................................ 21 17.13 Motor Vehicle Repairs and Maintenance Anomalies.............................................................................................. 24 17.14 Vehicle Quarterly Reports Not Provided ................................................................................................................ 26 Individual and Community Project Fund Received but Project Not Initiated .......................................................... 27 17.15 COMMISSIONER CENTRAL DIVISION .................................................................................................................................. 30 Inadequate Administration and Monitoring of Capital Projects .............................................................................. 30 COMMISSIONER EASTERN DIVISION
 .................................................................................................................................. 34 Inadequate/Poor Planning and Low Implementation Rate of PSIP Projects .......................................................... 34 17.17 17.18 Breach of Public Service Commission Regulation - Double Payment of Allowance .............................................. 39 17.19 Un-Reconciled Variance between Project’s Acquittal Statement and General Ledger .......................................... 40 Inadequate Management of Project Materials / Items at Top-Yard Store .............................................................. 41 17.20 17.20.1 Damage and Obsolete Materials ..................................................................................................................... 41 17.20.2 Non- Distribution of the Tropical Cyclone Tomas Rehabilitation Materials ..................................................... 42 17.20.3 Pro-Long Delay of Delivery of the “Vakatawa” Housing Project ...................................................................... 44 COMMISSIONER WESTERN DIVISION .................................................................................................................................. 45 17.21 Discrepancies for Reported Project Status versus Physical Project Visit .............................................................. 45 Irregularities in Tropical Cyclone (TC) Evans Housing Rehabilitation .................................................................... 47 17.21 17.21.1 Vetting and Assessment Anomalies (Identification of Damaged Household) ................................................. 47 17.21.2 Non-Issuance of Purchase Order for Tropical Cyclone Evans Rehabilitation Building Materials.................... 48 17.16 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014
 ____________________________ 17.21.3 Short Supply of Materials Delivered to Recipients .......................................................................................... 50 APPENDICES ........................................................................................................................................................................... 52 Appendix 17.1: Details of Error in Preparation of VAT Returns ......................................................................................... 52 Appendix 17.2: Honorarium Claims made during TC Evans – Established Officers .......................................................... 53 Appendix 17.3: Overtime & Meal Claims – Government Wage Earners ............................................................................ 55 Appendix 17.4: Topyard Store at Walubay ......................................................................................................................... 58 Appendix 17.5: Project Physical Status Upon Site Visit ..................................................................................................... 63 Appendix 17.6: TC Evans Housing Rehabilitation Materials Not Received ....................................................................... 67 Appendix 17.7: Tropical Cyclone (TC) Evans Victim Not Assisted .................................................................................... 70 ___________________________________________________________________________________________________ PART A: FINANCIAL STATEMENTS 17.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Rural and Maritime Development and National Disaster Management resulted in the issue of a qualified audit report.
The qualification issues are as follow:  A variance of $3.7 million exists between the trust fund cash at bank recorded in the Financial Management Information System (FMIS) general ledger ($6.2 million) and the trust fund liability account balance ($2.5 million) contrary to section 58 (3) of Finance Instructions 2010.

Therefore, the Trust Fund Account Statement of Receipts and Expenditures cannot be ascertained to be fairly stated.
 A variance of $3.1 million exists between the Provincial Development trust fund cash at bank recorded in the general ledger ($5 million) and the Provincial Development bank statement balance ($1.9 million) contrary to section 32(6) of Finance Instructions 2010.

As such, the audit was not able to ascertain that all receipts and payments have been accurately accounted and disclosed in the Main Trust Fund Account.
Management attention was also drawn to the following matters:    In accordance with the government cash basis of accounting, total expenditure includes a book entry for a budget carry-over of $16,983,073 to be spent in 2014.

Consequently the actual 2013 expenditure has been overstated by the same amount.

The Ministry did not reconcile the expenditure in the Financial Management Information System (FMIS) general ledger as no expenditure ledger was maintained.
The Ministry prepared its financial statements from the FMIS general ledger.

As a result, the audit was not able to ascertain the accuracy of the amounts stated in the Statements of Receipts and Expenditure.

The Ministry did not reconcile the Prime Minister’s National Disaster Relief and Rehabilitation (PMNDRR) Trust Fund receipt and expenditure in the FMIS general ledger as no expenditure ledger was maintained.
The Ministry prepared its Statements of Trust Fund Receipt and Expenditure from the FMIS general ledger.

As a result the audit was not able to ascertain the accuracy of the amounts stated in the Statements of Trust Fund Receipt and Expenditure.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.2 Statement of Receipts and Expenditure The Ministry of Rural and Maritime Development and National Disaster Management collected revenue totalling $1,528,241 and incurred a total expenditure of $47,398,287 in 2013.

Refer Table 17.1 for details.
Table 17.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue License Arms License Liquor License Trading Other State Revenue Total State Revenue Agency Revenue Miscellaneous TOTAL REVENUE EXPENDITURE Operating Established staff Unestablished staff Travel & communication Maintenance & Operations Purchase of goods & services Operating grants & transfers Special expenditures Total Operating Expenditure Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) 868 892,751 329,875 261,487 1,484,981 355 658,304 292,131 (357,830) The significant increase in revenue by $897,276 or 142% was mainly due to the increase in Liquor licenses and the debit adjustment recorded in Other State Revenue general ledger by the Ministry of Finance in 2012.
Total expenditure increased by $16,710,977 or 54% in 2013 compared to 2012 as result of the redeployment of funds towards the Tropical Cyclone Evans Rehabilitation Program.

17.3 Appropriation Statement The Ministry incurred expenditure totalling $47,398,287 against the revised budget of $48,171,290 resulting in a savings of $773,003 or 2%.

Details of expenditures against the budget estimates are provided in Table 17.2.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 17.2: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 4,267,190 1,227,519 303,980 727,142 595,709 40,000 803,900 7,965,440 Changes ($) 194,475 113,802 9,000 120,581 (122,581) 0 434,880 750,157 2,500,000 789,900 20,738,960 24,028,860 850,700 32,845,000 (1,071,320) 0 15,739,409 14,668,089 (91,956) 15,326,290 Revised Estimate ($) 4,461,665 1,341,321 312,980 847,723 473,128 40,000 1,238,780 8,715,597 1,428,680 789,900 36,478,369 38,696,949 758,744 48,171,290 Actual Expenditure ($) Carry Over ($) 4,461,592 1,341,489 307,159 803,867 437,396 35,518 1,060,204 8,447,225 0 0 0 0 0 0 0 0 Lapsed Appropriation ($) 73 (168) 5,821 43,856 35,732 4,482 178,576 268,372 1,403,609 729,352 36,235,194 38,368,155 582,907 47,398,287 0 0 16,983,073 16,983,073 0 16,983,073 25,071 60,548 243,175 328,794 175,837 773,003 A total of $17,679,908 was redeployed by Cabinet from other ministries and departments to the budget of the Ministry of Rural and Maritime Development and National Disaster Management while a total of $2,353,618 was redeployed from the budget of the Ministry of Rural and Maritime Development and National Disaster Management to other ministries and departments.
PART B: AUDIT FINDINGS 17.4 Arrears of Revenue The quarterly arrears of revenue report must outline the amount outstanding but not yet due, the total for each overdue age category; name of each debtor within each age category and the recovery actions taken for each overdue debt.1 As at 31/12/13, the Ministry’s arrears of revenue amounted to $656,688 compared to $495,059 in 2012, an increase of $161,629 or 33%.

Refer Table 17.3 for details of arrears of revenue for the past four years.
Table 17.3: Arrears of Revenue over the Four Year Period Year Amount ($) 507,898 499,358 495,059 656,688 2010 2011 2012 2013 Percentage Movement --- (1.7) (0.9) 33 1 Proforma Finance Manual 2011 – s9.3.3 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Arrears of revenue totalled to 43% of the revenue collected for the year.
Table 17.4 outlines the ageing of arrears of revenue.

Table 17.4: Ageing Of Arrears of Revenue Debt Category Less than 1 Year 1 – 2 Years 2 – 5 Years More than 5 Years Total Amount ($) 97,204 169,806 296,263 93,415 656,688 The above shows weak measures undertaken to collect these revenue and may become irrecoverable if not collected on a timely basis.

Recommendation The Manager Finance should ensure that revenue dues are collected on a timely basis to avoid further accumulation of arrears balance.
Management Comment Recommendations are noted and every effort will be taken to ensure that accumulation of arrears does not recur.

We are also working on determining that revenue that are irrecoverable and a request will be made to Cabinet for their write-off.

17.5 Expenditure Ledger Not Maintained All payments, including Value Added Tax (VAT), must be immediately recorded in the Financial Management Information System (FMIS) and an Expenditure Ledger2.
Audit noted that the Ministry does not maintain an expenditure ledger.

As a result, the Ministry could not reconcile the expenditure in the general ledger3 maintained by the Ministry of Finance.

Audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Ministry should maintain an expenditure ledger and reconcile the amount to the expenditure recorded in the general ledger system on a monthly basis.
Management Comment Recommendations are noted and all divisions including headquarters have been advised to maintain expenditure ledgers from 2014 and also to reconcile it with the general ledger system on a monthly basis.

2 Finance Instruction 2010 – s15 3 Financial Management Information System controlled by Ministry of Finance.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.6 Trust Fund Cash Account Balance Anomalies The Ministry has two trust bank accounts, namely, the Provincial Development and the Prime Minister National Disaster Relief and Rehabilitation (PMNDRR) Trust Account.
The public donations receive for Disaster Relief operations are recorded in the Prime Minister National Disaster Relief and Rehabilitation (PMNDRR) and are banked at the Bank of the South Pacific whereas other trust money such as community’s contribution and tender deposit received are recorded in the Provincial Development Trust Fund Account and are banked at Westpac Bank.

Our review of Trust Fund Account records revealed the following anomalies.
17.6.1 Significant Variance between Trust Fund Cash and Liability Account Balance The receipt and payment of trust money must be recorded in a separate cashbook or set of ledger account.

Each month, the trust account must be balanced and reconciled with the trust bank account.

The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.
Un-reconciled items must be investigated and resolved promptly.4 As at 31/12/13, the Ministry’s trust fund account amounted to $2,544,985 compared to $2,435,050 in 2012, an increase of $109,935 or 4%.

Refer Table 17.5 for details of Trust Fund account for the past four years.
Table 17.5: Trust Fund Account Balance over the Four Year Period Year 2010 2011 2012 2013 Trust Fund Cash ($) 1,948 (287,153) 6,198,769 6,288,800 Trust Fund Liability Account ($) 666,638 (692,218) 2,435,050 2,544,985 The audit noted a variance of $3.7 million between the trust fund cash at bank recorded in general ledger ($6.2 million) and the trust fund liability account balance ($2.5 million).

Refer Table 17.6 below for details.


Table 17.6: Details of Variance in Trust Fund Cash Account Balance Account Allocation Domestic Bank Balance - Provincial Development Trust Fund Liability Account Variance 9-18101-68999-520301 9-18000-00000-890000 Amount ($) 6,288,800 2,544,985 3,743,815 In the absence of reconciliations, non-maintenance of records and the variances noted, the cash at bank balance in the general ledger could not be substantiated.
As such, the Trust Fund Statement of Receipts and Expenditure for the financial year cannot be relied upon.
4 Ministry of Finance Instructions 2010, s58 (1- 4) Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendation The Manager Finance should ensure that proper monthly reconciliations between cash at bank general ledger balance and trust fund liability account are accurately carried out.

Any variance noted should be investigated and adjusted accordingly.
Management Comment Reconciliations are now being undertaken to ensure the anomalies are rectified and that general ledger (GL) balance and trust fund liability account are reconciled on a monthly basis.
17.6.2 Significant Variance for Provincial Development Trust Fund Cash Account The standard format for preparing bank reconciliation is depicted in the Ministry of Rural and Maritime Development and National Disaster Management Finance Manual Schedule 2 of Part 6.5 Any errors or misallocations in the general ledger reconciliation must be immediately adjusted by way of journal vouchers.6 The Manager Finance shall ensure that any misallocation or outstanding balances from the previous month reconciliations have been dealt with.7 The Accounts Officer shall review the un-presented cheques list and determine whether a replacement cheque should be issued for cheques that are stale.
If a replacement cheque is not required, the Accounts Officer shall clear the stale cheques to the expenditure account for current year and for previous year’s stale cheques to be cleared to the Revolving Fund Account (RFA) - Recoveries of Overpayment in Previous Years account.8 The audit noted the following anomalies for the Provincial Development Trust Fund Account cash balance:  Stale cheques amounting to $55,506 were noted as per December Bank Reconciliations.
The audit further noted that some of the cheques were not presented to the bank for more than 2 years.

Refer Table 17.7 for details.
Table 17.7: Details of Stale Cheques Date 06/10/11 30/12/11 30/12/11 29/05/11 29/06/11 03/08/12 09/08/12 04/09/12 04/09/12 02/11/12 15/11/12 27/11/12 27/11/12 Cheque Number 000531 000574 000576 000601 000604 000622 000623 000626 000635 000651 000652 000654 000659 Amount ($) 375 4,000 4,000 107 1,000 18,164 7,835 663 828 1,043 524 6,300 6,667 Length of time Not Presented Over 2 years Over 2 years Over 2 years Over 2 years Over 2 years Over 1 years Over 1 years Over 1 years Over 1 years Over 1 years Over 1 years Over 1 years Over 1 years 5 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011- Part 6, Schedule 2 6 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s14.3.4 7 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s14.3.6 8 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s 6.5.2 & 6.5.3 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date 28/11/12 Total Cheque Number 000661 Amount ($) 4,000 55,506 Length of time Not Presented Over 1 years  The Bank reconciliation prepared for the Trust Fund account was incorrect and was not able to reconcile the variance of $3,111,662 which was noted between the Ministry’s cash at bank balance and the cash balance reported in the FMIS general ledger as at 31 December 2013.
Refer Table 17.8 below for details.

Table 17.8: Details of Variance in Trust Fund Cash Account Balance Account Allocation Provincial Development 9-18101-68999-520301 Domestic Bank Balance (GL) ($) 5,072,760 Bank Balance Variance ($) 1,961,098 ($) 3,111,662 Non reversal of stale cheques on a timely basis implies that the cash balance in the books is misstated.
As a result, audit was not able to substantiate the accuracy of cash at bank balance as at 31 December 2013 for the Provincial Development Trust Fund Account in the General Ledger Account.

Failures to carry out proper bank reconciliations increase the risk of misappropriations and fraud not being detected.

There is also lack of independent checks by the Manager Finance to ensure the correctness of the reconciliation prior to certification.
Recommendations  The Manager Finance should ensure total receipts and payments are obtained from the general leger or cash book while preparing cash book reconciliation.

 The responsibility of carrying out bank reconciliations should be given to Accounts Officers with appropriate expertise.

 The list of un-presented cheques should be reviewed on a regular basis and cheques which have become stale should be reversed in a timely manner.
 The Manager Finance should provide appropriate training to Accounts Officers involved in carrying out reconciliations covering the areas of obtaining the correct data from the correct source, obtaining relevant reports and the purpose and nature of reconciliations.

 The Manager Finance and Permanent Secretary should comply with Finance Manual 14.3.4 and 14.3.6 before endorsing the reconciliation.
 The Manger Finance should ensure that stale cheques are cleared to expenditure account  before the end of the financial year.

Manager Finance should ensure that internal control procedures in the Accounts Section, specifically supervisory checks should be strengthened to avoid such anomaly.

Management Comment  All stale cheques have been journalized back to the respective allocations;  And the recommendations of the Auditor General are noted and we will endeavor to carry it out.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.6.3 Non – Maintenance of Cash Book for PMNDRR9 Trust Fund Account When trust money is received, the clerical officer (cashier) shall issue an official trust receipt to the payer.
Details of receipts shall be entered into the trust cashbook.10 The clerical Officer [trust account] shall keep a trust ledger to record movement of trust money.
The ledger shall record the name of trust account, date and amount of receipts and payee, date, amount paid and payer including reference number and balance to date.11 The public donations receive for Disaster Relief operations are recorded in the Prime Minister National Disaster Relief and Rehabilitation (PMNDRR) Trust Fund Bank Account and are banked at the Bank of the South Pacific.
Some of the donations are received at the Prime Minister’s Office and others are received by the Ministry of Provincial Development through the various Commissioners’ office and at Headquarters.

Majority of the donation received were directly deposited into the Prime Minister National Disaster Relief and Rehabilitation (PMNDRR) Trust Fund Bank Account at the Bank of the South Pacific.

Payments are administered at Headquarters and are facilitated through the various Commissioners’ Office.
The audit noted that the Headquarters does not maintain the payment cash book for the payment vouchers raised during the year and cash book for donations received during the year.

The Ministry recorded trust income of $2,077,502 and trust payment of $2,000,000 as at 31 December 2013 in the general ledger account.

Refer Table 17.9 below for details.


Table 17.9: Details of PMNDRR Trust Fund Account Account Allocation Receipts ($) PMNDRR 9-18501-18001-520401 2,077,502 Payments ($) 2,000,000 In the absence of the cashbook, actual payments made and donations received during the year could not be reconciled to the expenditure and donation recorded in the FMIS general ledger system and the bank record.
Recommendation The Accounts Officer and the Manager Finance should ensure that cash book for payment and revenue is opened immediately and maintained at Headquarters.

Upon receipt of the donations, the receipts number and amount should be entered in the revenue cash book and similarly for payments in which cheque number, amount and date to be entered in the payment cashbook.
Management Comment A Cash book has now been opened for the PMNDRRF Trust Account as per the Auditor General’s recommendations and Trust Fund Receipts have also been issued for the Donations that had been directly deposited to the Bank by donors from this year, 2014.

9 Prime Minister Natural Disaster Relief and Rehabilitation Trust Fund Account maintained at the Bank of the South Pacific.
10Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s 13.2.1 11Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s 13.3.2 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.6.4 Anomalies in the PMNDRR12 Trust Fund Cash Account Balance The standard format for preparing bank reconciliation is depicted in the Ministry of Rural and Maritime Development and National Disaster Management Finance Manual Schedule 2 of Part 6.13 Where the gift is in the form of money, it shall be paid into the Consolidated Fund as revenue unless gift conditions specify that the money should be held in a trust account and used for a specific purpose.14 When trust money is received, the clerical officer (cashier) shall issue an official trust receipt to the payer.
Details of receipts shall be entered into the trust cashbook.15 The clerical Officer [trust account] shall keep a trust ledger to record movement of trust money.
The ledger shall record the name of trust account, date and amount of receipts and payee, date, amount paid and payer including reference number and balance to date.16 The clerical officer (data entry) must input data on a daily basis and ensure all transaction for the month are posted before the monthly cut-off date set by the Ministry of Finance.17 Within 5 days after the end of each month, the clerical officer (trust account) shall prepare a trust reconciliation to reconcile trust account balances to the ledger total and the trust bank account.18The audit noted the following anomalies for the Prime Minister National Disaster Relief and Rehabilitation (PMNDRR) Account Balance;  The Ministry failed to prepare bank reconciliation as per standard format reconciliation issued by Ministry of Finance19.
The total receipts and payments were obtained from bank statement to perform bank reconciliation hence the un-deposit receipts and un-presented cheques were not accounted.

The total payments were also obtained from the bank statement to perform cash book reconciliation whereas total revenue receipts and payment as per cash book were not accounted in the cash book reconciliation.
 All the monthly trust reconciliation from January to August 2013 were prepared in October 2013, hence the trust account balances were not reconcile to the ledger total and the trust bank account in a timely manner.

 The direct deposit for 2012 financial year amounting to $274,955 were not receipted and updated in the general ledger account at the end of the financial year 31st December 2012.

Audit further established that it was later updated on 02 October 2013 in the general ledger account.
Refer Table 17.10 for details.

Table 17.10: Details of 2012 Un-receipted Trust Fund Revenue Posted in 2013 Month September October November December Total Amount ($) 11,254 The 100,045 (1,983) 165,639 274,955 Remarks amounts were journalised on 02/10/2013 in the general ledger system through JV 52/09/13.
12 Prime Minister Natural Disaster Relief and Rehabilitation Trust Fund Account maintained at the Bank of the South Pacific 13 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011- Part 6, Schedule 2 14 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011- s5.5.13 to 16 15 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s13.2.1 16 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s 13.3.2 17 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s 14.2.4 18 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – s 13.4.1 19 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 - Part 6, Schedule 2 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The audit further noted that the direct deposits for 2013 financial year amounting to $790,153 were not receipted and timely updated in the general ledger account.
Audit further established that it was later updated on 03 October 2013 in the general ledger account.

Refer Table 17.11 below for details.

Table 17.11: Details of 2013 Un-receipted Trust Fund Revenue Posted in October 2013 Month January February March April May June July August September Total Remarks amounts were journalised on 03/10/2013 in the general ledger system through JV 56/09/13.
Amount ($) 353,530 The 60,271 180,773 20,240 120 51,111 123,888 190 30 790,153 As a result, the audit was not able to substantiate the accuracy of cash at bank balance as at 31 December 2013 for the Prime Minister National Disaster Relief and Rehabilitation (PMNDRR) Trust Fund Account in the General Ledger Account.

The above reflects laxity by the Ministry in ensuring that trust money receive from the public are properly accounted for and are timely recorded in the general ledger account.
Failure to receipt and record the trust money in a timely manner will result in the misstatement of the Ministry Financial Statement hence misstatement in the whole of government account financial statement.

Furthermore failures to receipt cash received and carry out proper bank reconciliation increase the risk of misappropriations of cash and fraud not being detected.
Recommendations  The Manager Finance should ensure total receipts and payments are obtained from the general leger or cash book while preparing cash book reconciliation.

 The Manager Finance should ensure that proper reconciliations are carried out in a timely manner and any errors are investigated and resolved promptly to avoid significant variations in the bank account reconciliation.
 Appropriate training to be conducted for Officers involved in carrying out reconciliations covering the areas of obtaining the correct data from the correct source, obtaining relevant reports and the purpose and nature of reconciliations.

 The Manager Finance should ensure that trust money receive are receipted and recorded in the cask book and general ledger account within 5 days at the end of each month to avoid misstatement in the general ledger for the next accounting period.
The internal control procedures in the Accounts Section especially supervisory checks should be strengthened to avoid such anomaly.

 Management Comment Recommendations have been noted and we are reconciling the account on a monthly basis now.

We have also issued receipts for donations directly deposited to the bank.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.6.5 Pro-Long Unclaimed Wages Not Paid for Deceased Employee The Accounting Head has the overall responsibility for ensuring that the accounting related controls identified herein operate effectively across the Ministry.
However, individual line managers and operational staff are accountable for the operation of the control within their own areas of responsibility.20 The proper management of expenditure is fundamental to ensuring value for money in delivering services to the community.
As well, having cost effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditure and corruption do not occur.21 The Ministry also receives the last wage pay (unclaimed wages) for the deceased workers of organisations if the organisation cannot identify the legal beneficiary of the deceased workers.
These unclaimed wages are then paid to the legal beneficiary through the District Officers once the Ministry identified the legal beneficiary.

The audit noted that there were unclaimed wages for deceased workers received from other organisation which have not been paid out to the beneficiary with some dated back to over a decade years ago.

Refer Table 17.12 below for details.

Table 17.12: Details of Pro-Longed Unclaimed Wages for Deceased Employee Not Yet Paid Date Receipt No.
Details Amount ($) Years Funds with the Ministry 11/07/2000 17/09/2001 27/12/2001 27/12/2001 28/01/2002 06/02/2002 20/11/2002 18/12/2002 03/04/2003 18/02/2004 26/07/2004 Total 555672 555684 586827 586830 586919 842189 217807 217877 281825 690150 900520 FSC – Ram Naresh FSC – Kelevi Daunawaqa FSC – Various FSC – Various FSC - N Daunawaqa Jamiran Bibi FSC – Ram Jattan FSC LTD FSC LTD EGM – Anil Kumar EGM – Siria N Readdy 156 922 277 775 221 115 493 128 349 265 36 3,737 13 12 12 12 11 11 11 11 10 9 9 The above indicates laxity of the Ministry in ensuring the timely pay out of unclaimed wages to the legal beneficiary.
Failure to pay out unclaimed wages on time increases the risk of fraud and misuse of funds.

Recommendations  The Ministry must ensure that proactive measures are taken to find beneficiaries of unclaimed wages and payout the wages.

 The Corporate Services sections should consult the relevant stakeholders to identify the legal beneficiary so that payment can be made to avoid carry forward of the balance to the next accounting period.
20 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011– Part 1: s1.3 21 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011– Part 2 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The Unclaimed wages are for the deceased employees of the various Companies in the Divisions e.g.
Fiji Sugar Corporation, Emperor Gold Mine.

We undertake to identify the next of kin and effect pay-outs immediately.

17.6.6 Trust Fund Expenses Paid From Operating Drawing Fund Account Trust money is money that the Ministry is holding in trust (it does not include creditor payments such as salary deductions or money that is held in a separate ‘trust fund” which is not a true trust).
As stipulated in the Act and Finance Instructions, trust money is to be kept in a separate bank account and accounted for separately from “public money” and “other money”.22 The audit noted that public money was used to finance the trust operation contrary to Part 13 of the Finance Manual 2011.

Refer Table 17.13 below for details of trust fund expenses paid from operating drawing fund account.

Table 17.13: Details of Trust Fund Expenses Paid From Operating Fund Account Date Voucher No.

Cheque No.
Details 12/03/2012 12/03/2012 12/03/2012 12/06/2012 12/07/2012 13/12/2012 21/12/2012 25/02/2013 25/02/2013 30/09/2013 Total 37962 37963 37964 38146 38148 38481 38890 41349 41434 47766 No details found 15381 No details found 15382 No details found 15385 No details found 15431 Rehab Program in Ono i Lau(Paint)-PO99011-002271 28856 No details found 15502 15575 Wages for the 2 carpenters 15946 15945 15561 Premix 20ltrs to Cikobia Chainsaw File to Cikobia Constructing concrete seal with 2hp submersible pump Amount ($) 566 95 100 526 42 13,338 1,000 171 60 2,000 17,898 Division Northern Northern Northern Northern Northern Northern Northern Northern Northern The above shows deliberate disregard of standing rules and regulation for the management of public funds.
In addition the above also indicates poor financial management planning, control and monitoring by the heads of the Account Sections which has resulted in such unauthorised diversion of funds.

Recommendations  The Ministry must ensure that trust fund expenses are paid only from trust fund account and appropriate adjustment made to reimburse the cash to operating fund account.
 The Ministry should investigate the officers responsible for not adhering to the financial regulations and implement appropriate disciplinary actions if the responsible officers continue to breach financial regulations.

Management Comment  Recommendations are noted and all Divisional Accountants have been advised that true trust payments will only be effected in Headquarters.
 The Divisions whilst processing purchases for Self-Help and Rural Housing Assistance Projects will have to issue 2 Purchase Orders (PO’s).
That is, one PO to be charged to the Operational Budget and the other to 22 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011 – Part 13 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ the Trust Fund Account for the communities/clients 1/3rd community contribution.
Payment from the Operating Fund Account for Trust Fund expenses is a result of the oversight by the Accounts Sections.
17.7 Unspent Funds Held If an amount appropriated by an Annual Appropriation Act for a financial year has not been used in that financial year; or is unlikely to be used in that financial year, the Minister of Finance may authorise the carry-over to the following year.23 Within three days of receiving the monthly general ledger reports from the Ministry of Finance, the Accountant shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.24 Unspent balances in Standard Liability Group (SLG) 84 are to be returned to the originating Ministry / department.25 Balances held in SLG 84 are funds received from the various Ministry/department for various projects.
As at 31/12/13, the Ministry’s Standard Liability Group (SLG) 84 amounted to $17 million compared to $6 million in 2012, an increase of $11million or 182%.

Refer Table 17.14 for details of account for the past four years.

Table 17.14: SLG 84 Balances Over the Four Year Period Year 2010 2011 2012 2013 SLG 84 Balance ($) 86,384 1,122,485 6,008,874 16,994,522 The audit noted that the Ministry did not reconcile the $17 million held in SLG 8426 account in 2013.
Refer to Table 17.15 for details of balance held.
Table 17.15: Standard Liability Group (SLG) 84 Compositions of Balances Account Number Account Description 1-18201-68999-840101 1-18201-99011-840101 1-18201-99012-840101 1-18201-99013-840101 1-18201-68999-840103-001 1-18201-68999-840103-002 1-18201-68999-840103-003 1-18000-00000-840602 Total State of Natural Disaster – 2012 DISMAC Cyclone Evan – 2012 TC Evan rehabilitation TC Evan ration Bau Island Seawall TC Evan Rehabilitation Lakeba Nursing Quarters Withholding Tax 2013 ($) 0 0 0 0 561,706 16,345,273 76,094 11,449 16,994,522 2012 ($) 141,094 3,858,233 1,000,000 1,000,000 0 0 0 9,547 6,008,874 Increase / (Decrease) ($) (141,094) (3,858,233) (1,000,000) (1,000,000) 561,706 16,345,273 76,094 1,902 10,985,648 23 Financial Management Act 2004 – s 19 (1) 24 Ministry of Rural and Maritime Development and National Disaster Management Finance Manual 2011– s 14.3.3 25 Finance Circular 13/2012, paragraph 3.2 26 Financial Management Information System General Ledger Account Number 1-18000-00000-840000 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Accumulated balances indicate lack of control and supervision to implement projects and have been held contrary to the Financial Management Act 2004 and Finance Circular 13/2012.
Also, unspent funds indicate overstated expenditures recorded in the Ministry/Department general ledger that provided the funds.

Recommendations  The Manager Finance should ensure that the Revolving Fund Account is reconciled with FMIS records on a monthly basis and any variances noted are adjusted accordingly.

 The Manager Finance should ensure that funds received and the purposes for the funds are made available upon request.
 The Manager Finance should prepare a statement of acquittal of the funds utilized and seek approval of the Minister of Finance for the carry-over of funds.

 The internal control procedures in the Accounts Section, specifically supervisory checks should be strengthened to avoid such discrepancies.

Management Comment  Government is practicing Hybrid Accounting, which is mixture of Cash and Accrual Accounting.
 In Accounting practice only the Balance Sheet items are carried over to the next Accounting Period so it is only Prudent that we carry over the Funds, to an allocation where it will be debited and Cash credited in the following year when it is spent.

Therefore, amongst Asset, Liability & Equity, Liability would best accommodate the intention as something like Accrued Expenses as in most cases.

Government has made commitment in principle but has not yet paid.
 From the Perspective of Hybrid Accounting, that is the only method of carry over the budgetary provision to the following year that can be accommodated in the Financial Management Information System (FMIS) and all of this information is to be disclosed in the notes.
In all cases, Government cannot change the Budgetary Appropriation because Budget for the following is announced in November of this year while the Carry over Committee sits in the next year and the Carry Over process is undertaken during the closing of accounts.
 17.8 Underpayment of Value Added Tax (VAT) - Error in the Preparation of VAT Returns Subject to the provision of the Vat Decree 1991, the tax shall be charged in accordance with the provisions of this Decree at the rate of fifteen precent on the supply (but not including an exempt supply) in Fiji of goods and services, by a registered person in the course or furtherance of a taxable activity carried on by that person, by reference to the value of that supply.27 When receipting revenue, the VAT portion should be credited to the new liability account (863201) and the balance to the revenue code.
At the end of the month, when making VAT return payments to Fiji Inland Revenue and Custom Authority (FIRCA), the VAT portion should be debited to the same liability account thus making it zero, whilst VAT on expenditure will continue to be met from agencies budgetary funds (SEG 13) as is the current practice.28 Review of the VAT Returns and supporting documents revealed that an un-reconciled balance of $37,074 was noted between the Vat payables as per VAT return calculated under FMIS data and the VAT Payable as per VAT Returns calculated by the Ministry.
27 Value Added Tax Decree 1991 4th edition revised to 30/04/04 – s15 (1) 28 Ministry of Finance Circular No: 10/2009 – s5.0 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The audit noted the following errors in the VAT returns prepared by the Ministry which resulted in the variance:  Revenue were not accounted in the computation of total vatable supplies;  Incorrect total vatable revenue and total vatable expenditure figures used;  Incorrect Vat Input (SEG 13) recorded; and  Negative Revenue and Vat balance in FMIS at the end of the month.
This suggests that VAT payable to Inland Revenue is understated by $37,074.

Refer Appendix 17.1 for details.

By not having proper reconciliation between the General Ledger and VAT returns, the Ministry is subject to the risk of under and over payment of VAT.

Recommendations The Manager Finance should ensure that:  Monthly reconciliation between the VAT returns and the general ledger are reviewed for its correctness.

 Vatable revenue and vatable expenditure are correctly calculated every month.
 VAT reconciliation is prepared every month and VAT payment done after reconciliation.

Management Comment VAT payments are done on a monthly basis, however the recommendations for the correct calculations are noted and we will ensure correctness in payment of vatable revenue and vatable expenditure.

HEADQUARTER 17.9 Excessive Overtime for Government Wage Earners Public Service Commission (PSC) Circular 52/2000 paragraph (6.2) – (6.3) clearly specifies the need for overtime payment.
Where funds are specifically provided in the Budget Estimates, overtime may be paid only when it is not practicable to grant time –off in lieu.

Overtime payment should only be remunerated if the nature of work is essential, unavoidable and worked on a regular basis.
Furthermore PSC circular 24/2007 of 06/08/07 must not be construed to be an avenue for payment of overtime for the work that ought to be conducted during the normal official hours.29 The audit noted that some officers were substantively paid higher than their normal annual wages in 2013 financial year.

Refer Table 17.16 below for details.
Table 17.16: Officers Receiving Higher than Their Normal Annual Pay for 2013 Department EDP # Annual Wages ($) Actual Wages (Paid) ($) HQ-GWE30 HQ-GWE 51957 KG701 9,953 9,953 25,368 14,850 Variance % Increase / (Decrease) ($) 15,415 4,897 155% 49% 29 Public Service Commission Circular 13/2009 of 13/03/09 30 Headquarter – Government Wage Earners Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Department EDP # LB579 HQ-GWE LN381 HQ-GWE LT198 HQ-GWE LT811 HQ-GWE NS214 HQ-GWE TL694 HQ-GWE CCD-GWE31 61743 CCD-GWE NR847 CND-GWE32 MD962 UV568 CND-GWE VP230 CND-GWE CND-GWE WU079 CWD-GWE33 NM139 OK822 CWD-GWE Established 92675 Totals Annual Wages ($) 10,365 10,090 9,564 10,136 10,044 12,218 9,953 9,976 9,907 9,907 9,655 9,907 9,953 9,701 10,292 171,574 Actual Wages (Paid) ($) 12,866 17,070 13,684 16,902 14,788 22,000 16,749 19,185 16,052 14,985 14,549 15,997 15,384 13,782 14,740 278,951 Variance % Increase / (Decrease) ($) The audit noted that the work involved for overtime include staff on standby during the cyclone and field work in rural and maritime zones.
Excessive overtime hours worked indicate poor human resource management.

The above indicates inadequate capacity of the Ministry in carrying out its operations with the current resources available.

It also indicates that Supervisors are not ensuring that work targets are met by individual officers in accordance with the Individual Work Plans, Business Plans and Ministry/Department’s Corporate Plans in order to avoid or minimize overtime and associated expenditures.
Recommendations  The Permanent Secretary should ensure that work targets are met by individual officers within the required time to minimize overtime.

 The Director Corporate Services should ensure that staff capacity and capability is assessed to ensure effective and efficient delivery of operation with the current resource available.

 The operations plan needs to factor in capacity issues during natural disasters.
 The Ministry may consider utilising the Ministry of Labour’s National Employment Centre (NEC) volunteers and temporary or casual appointments.

Management Comment No comment received from the Ministry.
17.10 Unauthorised Payment of Honorarium/ Overtime Allowance The Public Service Commission (PSC) have advised Permanent Secretaries and Heads of Departments that officers claiming payments of honorarium and overtime allowances shall have their time and 31 Commissioner Central Division – Government Wage Earners 32 Commissioner Northern Division – Government Wage Earners 33 Commissioner Western Division – Government Wage Earners Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ claims certified by the Permanent Secretary for Rural and Maritime Development and paid according to the Overtime Policy circulated under PSC 52/2011 of 26/09/2011 and PSC 16/2012 of 28/02/2012.34 Overtime work shall be approved only on special circumstances and on the specific approval of the Permanent Secretary or Head of Department.
An Officer who would be engaged in overtime shall be notified in advance.

35 The payment of Honorarium Allowances shall be in cases where services are genuinely and urgently needed.
Ministries/Departments shall seek prior approval from the Permanent Secretary for the Public Service Commission for eligible civil servants.36 The claims are to be calculated in the following manner:37 Category Salary Benchmark Median Salary Hourly Rate Category A Category B Category C $19,523 – $35,000 $35,001 – $55,000 $55,001 – $75,000 $27,261 $45,000 $65,000 $10 $15 $22 The audit noted the following overtime payment anomalies contrary to the PSC Circular Memo dated 29/01/2013 (Reference No.
29/632/03):  There was no evidence of prior approval of the Permanent Secretary for the overtime;  The audit could not scrutinise the payment records to substantiate the overtime payment despite several audit request to the payroll clerks;  The audit also noted that approval documents for processing the various overtime payments such as inputs forms (FS 04) and other supporting documents to authenticate the hours paid could not be verified as these were missing upon scrutiny of the officer’s salary files;  The audit further noted that the Permanent Secretary approved the overtime payment however the approval failed to detail the officers to be paid;  No approval was obtained from the Public Service Commission for overtime payment contrary to PSC circular 52/2011;  The audit further noted that some of the input forms were not checked or authorized (endorsed/signed) by the Senior Accounts Officer;  The audit further noted that the Permanent Secretary was also paid the overtime despite PSC circular 52/2011 which states that overtime allowance can only be paid to those officers earning below $75,000 per annum, however the Permanent Secretary was paid at the rate of $22/hour at a salary of $75,849/annum; and  The audit could not trace the payment of allowance from the Payroll Database to the FMIS general ledger system and to the payment voucher records.
Refer to Appendix 17.2 and Appendix 17.3 for details of the above anomaly.

As a result the audit could not substantiate the total overtime/honorarium allowance payments of $143,451 made to the establish and government wage earners during the Tropical Cyclone Evan operation early in 2013 as payment records and other related supporting documents were missing.

34 PSC Circular Memo dated 29/01/2013 (Reference No.29/632/03) – Payments of Honorarium & Overtime Allowance for TC Evans Disaster Operation.
35 Public Service Commission Circular No.

52/2011 – s 6.1.1 & 6.2.1 36 Public Service Commission Circular No.

52/2011 – s 6.7.1 & 6.7.3 37 Public Service Commission Circular No.

52/2011 – s 6.7.4 (and PSC Circular No.


24/2007 – s 3.0) Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Poor record keeping is evident which reflects the laxity of accounting officers responsible at the Ministry.
Recommendations  The Senior Accounts Officer and the payroll clerk should ensure that vital accounting records such as payment vouchers and other related documents are properly maintained at all times.

The filing system needs to be improved.

 The Senior Accounts Officer and the payroll clerk should make a concerted effort to locate the missing related payment records and explanation should be provided on the missing vouchers and other related records.
 The Director Corporate Services and the Senior Accounts Officer should ensure that prior approval are sought before commencing overtime and overtime payment are fully supported with appropriate documents and properly endorsed and sufficient authorisation and verification is completed before a payment is approved.

 The Ministry should comply with PSC Circular 52/2011 and 16/2012 for overtime operations and ensure that PSC approvals are sought before approving the overtime payment.
 The Senior Accounts Officer should recover the unauthorised payment made to the Permanent Secretary.

 The Director Corporate Services should ensure that the access to the Account Section should be restricted to unauthorised personnel or staffs from other sections.

All customers/staffs should be served at the counter.

Management Comment Retrospective Approval was obtained for the payment of the overtime worked during the Rehabilitation Exercise.
However, the comments are noted and we will ensure to abide by the rules and regulations.

The Permanent Secretary will be advised accordingly and recovery action will thence commence.

17.11 Unsubstantiated Established Payroll Expenditure The need to improve record management in all agencies is vital for promoting Good Governance, Transparency and Accountability in the Public Sector.
All accounting staffs are responsible for proper maintenance and safekeeping of accounting records and documents, giving the Accounting Head the responsibility in implementing a sound internal control system to oversee this mater.38 The Senior Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents.39 The Equal Employment Opportunity Policy is intended to provide all Public Service officers with a guide to fairness and equity in employment decisions in the areas of recruitment, promotion, transfer and training on the basis of merit.
40 The audit could not substantiate the various payroll expenditures below as payment records and other related source documents were missing.

Refer below for details.

 The audit could not ascertain the accuracy of the acting allowance payment as acting appointment letter was missing in the salaries file upon audit inspections neither it was produce to audit despite several audit request and reminders.

Refer Table 17.17 below for details.
38 Ministry of Finance Instruction 2010 – s 59 39 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s 17.1.3 40 Public Service Commission General Orders 2011 – 1224.B Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 17.17: Details of Missing Appointments / Extension Letters EDP # Substantive Post 18545 47366 53309 59856 90867 Total Permanent Secretary Director – Corporate Services SAO-Provincial Admin (Cakaudrove) EO-Assistant District Officer (Cakaudrove) EO-Planning (East) Salary ($) 189,923 56,419 26,845 16,160 16,160 Total Allowance Paid ($) Extensions Missing With Effect From (WEF) 5,218 21/12/13 to 30/12/13 292 04/12/13 to 30/12/13 1,769 22/10/13 to 30/12/13 874 22/10/13 to 30/12/13 2,398 06/10/13 to 30/12/13 10,551  The audit also could not ascertain the accuracy of the salary payment made to the officers below as appointment on promotion documents such as advertisement, interview records and basis of promotion were missing in the salaries file neither it was submitted to audit despite several audit request and reminders.
Refer Table 17.18 below for details.
Table 17.18: Details of Missing Appointment on Promotion Documents EDP # Post 41449 63352 SAO-Provincial Admin (Ra-West) AO-District Officer (Macuata) Salary ($) 26,845 20,945 Promotion Date 05/03/2013 06/05/2013  The late arrival return, absenteeism return and annual leave return as at 31st December 2013 were not submitted to audit despite several audit request and reminders hence audit cannot ascertain and determine whether any recovery was made from officers who were late or absent to work.
 The audit also could not ascertain and determine the following leave allowance and compensation payment as the accounts section could not provide any supporting documents to substantiate the payment of $29,633 below.

Refer Table 17.19 for details of the leave allowances and compensation payment for which no supporting document was provided to audit.

Table 17.19: Detail of Leave Allowances and Compensation Paid Dept.
EDP# HQ-GWE HQ-GWE HQ-GWE CND-GWE CWD-GWE CWD-GWE CWD-GWE Established Established Established Established Total Leave JT754 NS214 TL694 WU079 JY804 OK822 YY593 19354 47366 90670 18545 Annual Salary ($) 11,953 10,044 12,218 9,907 9,976 9,701 9,564 60,557 60,557 60,557 189,923 Leave Compensation ($) Payroll Database Code 7,471 454 330 2,169 1,654 84 2,303 880 880 9,908 3,500 29,633 901 901 901 901 901 901 901 07 07 06 06 Poor record keeping is again evident in the above anomaly which reflects the laxity of accounting officers responsible.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In the absence of the complete records it is difficult to authenticate the validity and the accuracy of the above payroll expenditure.
Recommendations  The Ministry should ensure that vital accounting records such as acting appointment, appointment on promotion letter and leave allowance and compensation records are properly filed and maintained at all times to avoid double payments.

The filing system needs to be improved.

 The Ministry should make a concerted effort to locate the missing records and explanation should be provided how and why the supporting payment records vouchers went missing.
 The Ministry should ensure that all records are readily made available for audit.

 The access to the Account Section should be restricted to unauthorised personnel or staffs from other sections.

All customers/staffs should be served at the counter.

Management Comment No comment was received from the Ministry.
17.12 Unsubstantiated Government Wage Earners (GWE) Payroll Expenditure The need to improve record management in all agencies is vital for promoting Good Governance, Transparency and Accountability in the Public Sector.
All accounting staffs are responsible for proper maintenance and safekeeping of accounting records and documents, giving the Accounting Head the responsibility in implementing a sound internal control system to oversee this mater.41 The Senior Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents.42 The Equal Employment Opportunity Policy is intended to provide all Public Service officers with a guide to fairness and equity in employment decisions in the areas of recruitment, promotion, transfer and training on the basis of merit.
43 Meal claim must be assessed and approval should be given for staffs who have submitted the full details of meals and subsistence allowance claimed.

The claims are to be provided on prescribed form which must be approve and certified by their Head of Sections.
44 Despite the above, the audit noted the following anomalies for payment of meal allowance;  The audit could not ascertain and determine the accuracy and authority of the payment of meal allowance as the payment records and other related supporting documents were not provided to audit despite several audit request and reminders to the payroll clerk;  The audit also noted that approval documents for processing the meal allowance payments such as inputs45 and other supporting documents to authenticate the allowance paid could not be verified as these were missing upon scrutiny of the officer’s salary files.
Refer Table 17.20 for details of unsubstantiated meal allowance.
41 Ministry of Finance Instruction 2010 – Section 59 42 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Section 17.1.3 43 Public Service Commission General Orders 2011 – 1224.B 44 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Section 7.1.22 45 FS04 form – Form sent to Ministry of Finance advising the change in pay of an officer Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 17.20: Details of Unsubstantiated Meal Allowance Department EDP# Pay # Meal Claim ($) HQ-GWE46 51957 LB579 LN381 LT198 LT811 NS214 17/2013 22/2013 22/2013 31/2013 20/2013 21/2013 22/2013 29/2013 17/2013 23/2013 26/2013 Total Meal Paid to HQ-GWEs CCD- GWE47 61743 Total Meal Paid to CCD-GWEs CND- GWE48 MD962 TD190 10/2013 16/2013 18/2013 18/2013 13/2013 18/2013 13/2013 18/2013 37/2013 16/2013 14/2013 09/2013 40/2013 38/2013 40/2013 30/2013 40/2013 40/2013 40/2013 40/2013 36/2013 31/2013 45/2013 31/2013 39/2013 13/2013 31/2013 JQ442 ML997 NR847 QU396 UV568 VF823 VP230 WR625 WU079 QG795 UU714 Total Meal Paid to CND-GWEs CWD- GWE49 JY804 NM139 Total Meal Paid to CWD-GWEs Total Meal Paid to GWEs Meals Claimed (Dividable by $9) Furthermore, the audit could not ascertain and determine the accuracy of the arrears of salary allowance and other allowance payment as payment records and other related source documents were not provided to audit.
Refer Table 17.21 for details.
46 Headquarter – Government Wage Earners 47 Commissioner Central Division – Government Wage Earners 48 Commissioner Northern Division – Government Wage Earners 49 Commissioner Western Division – Government Wage Earners Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 17.21: Details of Other Unsubstantiated GWE Allowances Department EDP# Name Pay # Allowance Type HQ-GWE 51957 LB579 LN381 LT811 TL694 Kitione Baleilodoni Viliame Seseni Kitione Save Sefanaia Ratulele Saiasi Sarau Total Allowances Paid to HQ-GWEs CND-GWE Total Allowances Paid to CND-GWEs CWD-GWE VF823 Jo Naqicatabua JY804 NM139 QG795 Mere Aditawake Keni Tuitoga Savenaca Racele UU714 Matereti Varea Waqa Josefa Tuiqere YY593 Total Allowances Paid to CWD-GWEs Total Allowances Paid to GWEs 23/2013 Non-Taxable Allowance 22/2013 Non-Taxable Allowance 22/2013 Non-Taxable Allowance 22/2013 Non-Taxable Allowance 09/2013 Country Allowance 22/2013 Non-Taxable Allowance 22/2013 Country Allowance 46/2013 Country Allowance 40/2013 Country Allowance 06/2013 Arrears of Salary 06/2013 Arrears of Salary 06/2013 Arrears of Salary 31/2013 Country Allowance 39/2013 Country Allowance 06/2013 Arrears of Salary 31/2013 Country Allowance 06/2013 Arrears of Salary Allowances Paid ($) 1,370 237 366 459 108 224 147 504 3,415 147 147 546 1,317 715 21 21 1,107 21 991 4,739 8,301 This finding indicates that officers in charge of payroll failed to discharge their duties as required under the regulations.
It is apparent that the payroll controls are weak exacerbated by the lack of proper and adequate filings system by the Ministry resulting in unverified payroll expenditures.

Failure to tighten up on the payroll system controls could result in unauthorised payroll payment.

This could be catalyst to abuse, misappropriation and fraud which could result in wastage of taxpayer’s funds.
In the absence of the complete records it is difficult to authenticate the validity and the accuracy of the above payroll expenditure.

Recommendations  The Ministry should ensure that payroll payment records such as meal and other allowance payment records are properly filed and maintained at all times to avoid double payments.

 The filing system needs to be improved.


 The Ministry should make a concerted effort to locate the missing records and explanation should be provided how and why the supporting payment records went missing.

 The Ministry should ensure that all records are readily made available for audit.

 The access to the Account Section should be restricted to authorised personnel only.

All customers and other staffs should be served at the counter.
Management Comment The comments are noted and filing system will be improved on as such.

The timesheets on which the meal claims were submitted have been located and filed accordingly.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.13 Motor Vehicle Repairs and Maintenance Anomalies The maintenance and replacement of motor vehicle is a significant cost to Government.
The behaviour of drivers, usage of vehicles for private purposes and lack of proper care all contributes to the cost of maintaining vehicles.50 It shall the responsibility of the Director Corporate Services to oversee all matters relating to vehicle usage.51 The Officer in Charge shall obtain at least three quotes for servicing or repair works.
Once quotes have been obtained, the Officer in Charge shall submit a requisition to the Manager Finance/Accounts Officers for approval to meet servicing or repair costs.52 One of the controls put in place under Advance Payment on Pro-forma Invoice is the need to ensure that payments are processed using invoices only and not through Pro-forma invoices or statements.
However where invoices cannot be obtained, all requests for payments through Pro-forma invoice shall be referred to Ministry of Finance.53A Purchase Order shall be issued when procuring any goods, services or works from an organisation within Fiji, unless a contract or agreement has been entered into.54Immediately after payment has been effected, the Accounts Officer must stamp “paid” on all vouchers and supporting documentation to avoid any double payments.55 The audit noted the following anomalies for the motor vehicles repairs and maintenance expenditure.
Supporting documents such as competitive quotes, purchase orders and evidence of inspections after repair (inspection form) were not attached to the payment vouchers;  Payments made on the strengths of the quotation in which Ministry of Finance approval was not sought; and  The expenditure continues to increase substantially over the years.

Refer Tables 17.22 and 17.23 below for details and trends noted.

Table 17.22: Anomalies for Repairs and Maintenance of Motor Vehicle Date Cheque No.
01/02/13 29257 31/05/13 29973 Payee Nivis Motors Ledua Transport Amount ($) 4,885 Three Quotations not obtained 1,478 Cheapest quotations not selected and wrong posting to fuel Remarks and oil allocation.

01/05/13 29774 Ledua Transport 5,913 No Purchase order for this payment and no evidence of 11/09/13 30735 21/03/13 29538 12/03/13 29498 All Make Auto Spares Automech Automech inspection after vehicle repair.
3,913 Expired quotation was used 8,376 Only two quotes obtained with variation in quote details 2,488 Only one quote obtained.

Payment was made based on quotation.

No Purchase Order, invoice and evidence of vehicle inspections after repair sighted.

Automech 17,968 No PAID Stamp on all documents and no evidence of 31/10/13 EFT 102 22/05/13 29918 Automech inspection of vehicle after repair sighted.
1,803 Cheapest quotation not selected and Automech quotation was used for the basis of obtaining the other two quotes from other two suppliers instead of internal inspection by the Traffic 50 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 - Part 10 51 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 -s 10.1.1 52 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s 10.5.2 53 Ministry of Finance Circular No: 15/10 54 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s 2.5.1 55 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s 2.8.9 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Cheque No.
Payee Total Amount ($) 46,824 Officer.

Remarks Table 17.23: Increase in Motor Vehicle Repairs & Maintenance over the four Year Period Year 2010 2011 2012 2013 Repairs & Maintenance ($) 71,669 112,603 120,163 174,001 Processing payments on quotation and documents not stamp “PAID” increases the risk of double payments.

In addition, the Ministry would not receive value for money based on fair competitions and ethical dealings if it continues not to obtain 3 quotes for all the procurements.
The advance payments above also increases the risk of payments made without the services rendered.

It is apparent that the Ministry continues to ignore governing procedures and breach Finance Instructions and policies in place.

The deliberate disregard of rules and regulations by public servant is a catalyst to abuse, misappropriation and could result in wastage of taxpayer’s funds and warrants disciplinary action.
Recommendations  The Officer in Charge must ensure that vehicles recommended for repair must first be thoroughly checked by a qualified vehicle engineer (Transport Officer) detailing parts and repair needed.

From the engineer recommendation list, three quotes must be obtained and a purchase order to be issued to the most efficient service provider after analyzing the three quotations.
 The Officer in Charge should ensure that a qualified engineer/Transport Officer inspects the vehicle after repairs and commence payment process when all repairs required are completed.

 The Account Section should ensure that payments are made upon receiving the invoice from the service provider and evidence of the inspections (reports) from the transport officer.

 The Account section should ensure that all vouchers paid are Stamp “PAID” to avoid double payments.
 The Administrative Section must ensure that vehicles incurring excessive and continuous repair cost and are found to be uneconomical to maintain are disposed of.

 The Ministry should investigate the officers responsible for not adhering to the financial regulations and implement appropriate disciplinary actions if the responsible officers continue to breach financial regulations.

 The Ministry should comply with financial instructions and regulations of Government.
Management Comment No comment received from the Ministry.

Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.14 Vehicle Quarterly Reports Not Provided The maintenance and replacement of motor vehicle is a significant cost to Government.
The behaviour of drivers, usage of vehicles for private purposes and lack of proper care all contributes to the cost of maintaining vehicles.56 It shall the responsibility of the Director Corporate Services to oversee all matters relating to vehicle usage.57 The Officer in Charge shall prepare a quarterly vehicle report on all Rural and Maritime Development and National Disaster Management vehicles.

The vehicle report must be prepared no later than one week after the end of the quarter.
58 The Officer in Charge must sign and date the vehicle report before forwarding to the Manager Finance for inclusion into the quarterly management report.59 A copy of the report shall be forwarded to the Ministry of Finance no later than two weeks after the end of the quarter.60 The Ministry did not provide and submit to audit a copy of the signed vehicle quarterly reports for the year 2013 despite numerous request and reminders.
Audit could not determine if the Ministry have been preparing and submitting these reports to Ministry of Finance.

As such the following could not be accurately determined;  Number of vehicles with the Ministry;  The age of the vehicles;  Mileage recorded as at 31/12/13;  The number of boarded vehicles and their age; and  Any major accidents and repairs and maintenance of vehicles.
Review of the motor vehicle related expenses reveal that the associated cost for motor vehicles continue to increase over the years.

This is clearly shown in the rise of motor vehicle expenses over the 4 year period depicted in Table 17.24 below.
Table 17.24 Increase in Motor Vehicle Expenditure over the four year period Year 2013 2012 2011 2010 Repairs & Maintenance ($) 174,001 120,163 112,603 71,669 Fuel & Oil Total ($) 181,052 197,436 140,725 117,183 ($) 355,053 317,599 253,328 188,852 This finding indicates that officers in charge of preparing vehicle quarterly returns did not discharge their duties as required under the regulations.

As a result, management did not effectively monitor the management of motor vehicles and its associated costs.
56 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 - Part 10 57 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 -s 10.1.1 58 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 –s 10.7.1 59 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s 10.7.3 60 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s 10.7.4 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ It is apparent that the Ministry will continue to incur substantial increase in motor vehicle cost if they continue not to effectively monitor the management of motor vehicles and its associated cost.
Recommendations  The Corporate Services should comply with financial instructions and regulations of Government.

 The Corporate Services must ensure that vehicle quarterly reports are prepared on time for management review and submitted to Ministry of Finance.

 The Administration Section should ensure that signed copies are submitted for review.

 The Ministry should investigate the officers responsible for not adhering to the financial regulations and implement appropriate disciplinary actions.
Management Comment No comment received from the Ministry.

17.15 Individual and Community Project Fund Received but Project Not Initiated The Ministry of Rural and Maritime Development and National Disaster Management is mandated to coordinate and manage government rural development programmes in support of Pillar five to eight of the Peoples Charter for Change, Peace and Progress.
These programmes are targeted at generating economic growth and improving the standards of living within rural communities and include Rural and Outer Islands Development Programme; Rural Housing Programme; Self-Help Programme; and the Rural Roads Programmes.61 The proper management of expenditure is fundamental to ensuring value for money in delivering services to the community.
As well, having cost effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditure and corruption do not occur62 The Accounting Head has the overall responsibility for ensuring that the accounting related controls identified herein operate effectively across the Ministry.
However, individual line managers and operational staff are accountable for the operation of the control within their own areas of responsibility.63 The other trust money such as community’s contribution and tender deposit received are recorded in the Provincial Development Trust Fund Account and are banked at Westpac Bank.
The review of Provincial Development Trust Fund Account records reveal the following anomalies for projects funds received from communities and individual;  Projects have yet to be initiated for those who have given their one third deposits for Self-Help Programme;  The audit further noted that some contributions dated back to year 2009 hence a delay in project implementation of five years;  Projects have yet to be initiated for communities that have given the full cost of project; 61 Ministry of Provincial Development & Disaster Management Roles & Responsibilities – Fiji Budget Estimates 2013, Page 103 62 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 2 63 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 1: Section 1.3 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The audit further noted that some contributions dated back to year 2003 hence a delay in project implementation of ten years.
Refer Table 17.25 below for details.

Table 17.25: Details of Project Funds Received but Project not Initiated Date Receipt No.
Details Rural Housing Assistance Scheme II 16/04/2012 21/06/2012 17/02/2012 17/02/2012 04/10/2012 27/12/2012 04/12/2012 04/10/2012 21/05/2012 08/06/2012 13/06/2012 08/06/2012 23/05/2012 25/05/2012 19/06/2012 13/12/2012 13/12/2012 24/12/2012 12/02/2013 23/01/2013 25/01/2013 13/02/2013 30/05/2013 23/05/2013 01/08/2006 08/08/2006 16/11/2012 14/12/2012 25/04/2012 22/08/2012 20/08/2012 20/08/2012 14/08/2012 30/08/2012 31/08/2012 19/07/2012 12/09/2012 14/09/2012 17/09/2012 18/09/2012 24/09/2012 05/11/2012 11/14/2012 11/14/2012 11/12/2012 10/24/2012 10/24/2012 11/23/ Uraia Naulumatua Semi Cakaunitavuki Temesi Tamanisau Taito Matasawalevu Robakeibau Nayacalevu Sevuloni Roko Tavani Waisea Bunawa Robakeibau Nayacalevu Lekima So – Lautoka Laisiasa Revaiwai – CWD Vetaia Qauqau – CWD Timoci Nacokula – CWD Sakenasa Sara – Nadroga Bale Moceiwai Naikaboa – Rakiraki Josua Naikatasavu – Rakiraki Lie Semantafa Lina Aisea Peni Duaniwai- Rakiraki Vinod Chand- CWD Joseva Tavutu- CWD Emosi Ratu-Lautoka Petero Semi- Lautoka Usaia Nataraku Marika Ratubuli Cikobia Tikina Marika Tukana Cikobia Tikina Manasa Lesu Josese Tokanaivalu Parwanand Josefa Diloi – Tubou Jese Kaveni Emitai Koto Vika Yalewanilau Jiosaia Fisioi Jitoko Sera Joji Maivi Eremasi Masivesi Maciu Yadraca Aloesi Kaleca Timoci Beitaki Joji Veilawa Jone Sokokivavalagi Taito Soko Alumeci Ratukele Joeli Kete Vanuaso Village Development Isireli Dugu No details found Suliasi Suka Amount ($) Division Unknown Western Western Western Western Western Western Western Western Western Western Western Western Western Western Western Western Northern Northern Northern Northern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Receipt No.
Details Amount ($) Division 670304 19/07/2012 655398 09/01/2013 655399 16/01/2013 655400 05/02/2013 670502 22/02/2013 670501 11/02/2013 670503 13/03/2013 670507 26/03/2013 670519 05/06/2013 670520 06/06/2013 670522 10/06/2013 670523 10/06/2013 670451 06/03/2013 670513 18/04/2013 670514 18/04/2013 670511 17/04/2013 670512 17/04/2013 670452 23/04/2013 670523 28/08/2013 670524 24/09/2013 670308 19/06/2013 05/02/2013 670306 PM's Relief & Rehab Lau 729526 27/03/2007 620581 08/09/2003 312178 28/07/2005 312182 18/08/2005 620806 15/09/2003 312155 18/05/2005 457994 16/01/2007 729534 12/06/2007 02/05/2007 129830 Self-Help: 1/3 Contribution 654801 30/07/2009 654802 04/09/2009 654083 21/09/2009 654804 30/09/2009 09/10/2009 654805 Total Lasarusa Ragasawalu Solomone Lewanavanua Filimoni Tikoibua Nemani Buliruarua Jone Manufau Koroi Vakanaivalu Neumi Waqa Tevita Saqaibobo Levuka I daku S/Transport Joeli Vakayatu Sepeti Qio Metuisela Waqabaca Antonio Tukuveli Iliese Vasukikadavu Sekonaia Qonu Apenisa Waqa Metuisela Motu Willam Whippy Maikeli Tabua Rt Jone Duikete Sailasa Leqeti Epeli Motini Daliconi Village comm Manuku Vill Sea Trsp Kabara Tikina Waciwaci Project FDFB Namuka-I-lau Co-op Tulaki Farm Mecahnisation Project Muaninuku Village Sea-Wall Project Navakaraunintu Village Comm Raviravi Village Committee, Matuku, Emasi Raulo Nakawa Village Brush Cutter Matadrawe Settlement Chainsaw Matadrawe Settlement Chainsaw Delaivunilagi Farm Project Chainsaw Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Unknown Accumulated balances of projects funds with project not initiated indicate lack of control and poor administrations to implement projects in a timely manner which have been held contrary to the financial regulations.
Also, pro-longed project funds held indicate inadequate capacity and capability of the divisions in implementing routine projects that have been with the division over the years.

The findings indicate laxity of the divisional and provincial administrators for timely implementation and monitoring of community projects.

Failure to deliver projects on time deteriorates the trust of communities to partner with Government on such projects.

Also, the risk of fraud and manipulation is high.


Non-implementation and monitoring of projects denies the infrastructure development for the community and the people for improved standard of living.

Also, it can be deduced that the Ministry’s operation are not efficiently and effectively conducted and delivered in a timely manner.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations  The Ministry must ensure that all the above pending projects are completed first before initiating new projects.

 The Divisions should ensure that projects are completed within the year or if later during the following year for all projects funds received from the individual and communities.
 The Divisions should ensure that proactive measures are taken in following up clients for the project initiation rather than request based for funds already received.

 The Development and Planning Section should monitor and ensure that projects are implemented in a timely manner to avoid additional cost (such as increase in prices of materials) required to complete the pending projects.
 The Director Corporate Services should ensure that staff capacity and capability is assessed to ensure effective and efficient management and timely implementation of projects.

 Disciplinary action should be instituted on officers for failing to justify the pro-longed delay in the completion of projects for which funds have been received.

Management Comment No comment received from the Ministry.
COMMISSIONER CENTRAL DIVISION 17.16 Inadequate Administration and Monitoring of Capital Projects The Ministry of Rural and Maritime Development and National Disaster Management is mandated to coordinate and manage government rural development programmes in support of Pillar five to eight of the Peoples Charter for Change, Peace and Progress.
These programmes are targeted at generating economic growth and improving the standards of living within rural communities and include Rural and Outer Islands Development Programme; Rural Housing Programme; Self-Help Programme; and the Rural Roads Programmes.64 A file should be opened upon receipt of the Application/Project Proposal, and the same file should be used when funding is approved.65 Monitoring and Evaluation are to be conducted by respective project management teams at the following four levels: community; provincial and district level; divisional level (Planning and Coordination Cell); and HQ (Development Unit).66 Upon completion of a project, Provincial Administrators and District Officers are to forward a physical acquittal report to the Divisional Commissioners in the form of Completion Certificate67 The audit noted poor record keeping for the Division regarding Public Sector Investment Project (PSIP) and other capital project undertaken.
As such the status of the project cannot be ascertained and the following could not be determined:     Monthly project status and monitoring report; Responsible Officers for monitoring projects; Certification on quality of project constructed; and Legal vetting of the Memorandum of Understanding (MOU) by the Solicitor General office.
64 Ministry of Rural and Maritime Development Roles & Responsibilities – Fiji Budget Estimates 2013, Page 103 65 Ministry of Rural and Maritime Development Standard Operating Procedure – Part IV, s 4.3 66 Ministry of Rural and Maritime Development Standard Operating Procedure – Part V, s 8.1 67 Ministry of Rural and Maritime Development Standard Operating Procedure – Part V, s 7.5 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Refer Table 17.26 for details of project reviewed.
Table 17.26: Details of Capital Projects with Inadequate Records and Documentation Date Program Cheque Payee Name of Project No.
30/06/13 Self-Help 13406 Roofing and Profiling Sumesh Poultry Farming 25/07/13 Boarding 13386 Facility 17/10/13 Boarding Facility EFT 0041 08/04/13 Boarding 12908 Facility 18/04/13 PSIP 12957 03/05/13 PSIP 13065 03/05/13 PSIP 30/07/13 PSIP 08/10/13 PSIP 30/07/13 PSIP 13064 13400 EFT 0029 (0002) 13401 Renovation of Naivucini District School Lomary Primary School Ablution Block Ratu Ravuama Memorial School Raviravi Nursing Station Naqelewai Nasoqo Access Road Serua Seawall Mataisuva Tourism Project Dakuibeqa Seawall Eco RFMF Engineer Regiment68 PS Works RFMF Engineer DECE69 Fiji Electricity Authority DECE Water Authority of Fiji Mataisuva Tourism Project Eco 2011 NCAR70 Public Works Department Farm Waisere Road, Wasere, Naitasiri Remarks Project Cost ($) 3,464  Building materials estimation not done by qualified engineer;  No Monthly Report as per MOU and Project File Not Updated.
7,622  No Monitoring Report and and certificate completion project file not updated; 1,248  MOU does not have a binding the School responsibility of Management.

31,559  No Monitoring Report;  No Completion Certificate;  Project File Not Updated.

200,000 250,000 200,000 99,409 15,000  No Completion Certificate;  Project Files Not Updated.

99,233  MOU not vetted by Solicitor General as per Ministry of Finance request;  No Monitoring Report and and Completion Certificate Project Files Not Updated.
complaint 20,000 Project paper was not produce to audit upon inquiry to investigate the the beneficiary of the project regarding the non- completion which has loss of government in resulted investment.

raise by Total 927,535 The above indicates laxity of the division in ensuring that projects are monitored and completed satisfactorily to the required standard.

Failure to monitor the progress of the projects may result in the delay in implementation and completion of the project in a timely manner.
Furthermore, completed project without proper completion certificate indicates that construction works completed were not properly evaluated and 68 Republic of Fiji Military Forces Engineer Regiment 69 Divisional Engineer Central Eastern - Public Works Department 70 Non-Cane Access Road Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ surveyed by the expert to ensure that it is completed satisfactorily to the required standard.
Also, the risk of fraud and manipulation is high.

Recommendations  The Divisional Officers, Provincial Administrator and Planning Officers should ensure that community projects are monitored on a monthly basis and reported to the Commissioner and the Permanent Secretary.

The reports are to be filed in the project files for records and status follow up.
 The Commissioner Central Division and the Provincial Administrator should ensure that all constructions works and project completed are certified by the Public Works Department Engineer to ensure that works are completed to the required standard.

 Lessons learnt from community projects are to be documented for replication of similar projects in the future through benchmarking and sustained success of future projects.
 Disciplinary action should be instituted on officers for failing to monitor projects on a monthly basis and providing reports accordingly and likewise for those without completion certificate.

 The Division’s planning section should ensure effective and efficient administrations and management of projects.

Management Comment Cheque No.


13406 13386 EFT 0041 12908 12957 13065 Payee Name of Project Project Cost($) Audit Remarks Ministry’s Remarks Roofing and Profiles Sumesh Poultry Farming 3,464  Building materials estimation not done qualified by engineer;  DOK admit that it was overlooked  No Monthly Report as per MOU and Project File Not Updated.

 Project completed but report no monthly submitted.
7,622  No  No comments given Renovation of Naivucini District School Lomary Primary School Ablution Block 1,248 Monitoring and and not file Report completion certificate project updated;  MOU does not have binding a responsibility of the School Management.

RFMF Engineer Regiment PS Works RFMF Engineer Ratu Ravuama Memorial School Raviravi Nursing Station Naqelewai Nasoqo Access Road 31,559  No Monitoring Report;  No Completion 200,000 Certificate;  Project File Not 250,000 Updated.
 File is updated and original with file Accounts for all PSIPs  Site inspection was done for all our PSIPs for two monthly basis Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Cheque No.
13064 13400 EFT 0029 (0002) Payee Name of Project DECE71 Fiji Electricity Authority DECE Eco Serua Seawall Mataisuva Tourism Project Dakuibeqa Seawall 13401 Water Authority of Fiji Mataisuva Tourism Project Eco PWD Waisere Farm Road, Wasere, Naitasiri Audit Remarks Ministry’s Remarks Project Cost($) 200,000 99,409  File  Site is updated and original with file Accounts for all PSIPs inspection was done for all PSIPs in two monthly basis  MOU vetted by SGs Office  Copy of completion with Accounts Project completed 15,000  No Completion Certificate;  Project Files Not Updated.
99,233  MOU not vetted by Solicitor General as per Ministry of Finance request;  No Monitoring and Report Completion Certificate and Project Files Not Updated.

20,000 Project paper was not produce to audit upon inquiry investigate the complaint raise by the beneficiary of the project the non- completion which has resulted in loss of government investment.
regarding to 927,535 The Division would like to admit the findings from the report with the recommendations submitted after the exercise was undertaken as recorded above.

We agree with the report in the lack of monitoring on our PSIP but we have an understanding that all of our projects are carried out by PWD and RFMF which provides standards and satisfaction.

For our Emergency Water Supply, our practice last year is to supply without Purchase Orders (PO) and once water is delivered then we raise the PO.
This was due to the nature of the requests where the Division is to provide the response during emergencies.

This again requires an adjustment from our end.

Capital Projects like Self Help and Non Cane Access Road are monitored by Planning and Provincial Administrators but is not factored in the folders as recommended.
The system in place for your information is to update and present to Commissioner Central Division (CCD) every Monday morning our District Progress which this provides the monitoring which is required as stated.

Presentation by each District is done and Planning and Accounts will take turn in questioning the slow progress or assist in advising way forward from issues identified.
Finally, one of the reasons for lack of monitoring was the lack of logistic support provided to both Planning and Development in order to carry out the regular check as and when required.
71 Divisional Engineer Central Eastern - Public Works Department Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Further OAG Comments The following documents were not produce to audit upon further audit enquiries and verification to the Commissioner Central office on 01/09/2014   completion certificate mention in the Management comments were not produced for audit verification; and; Evidence of vetting by the Solicitor General on the Memorandum of Understanding was not produced for verification.
COMMISSIONER EASTERN DIVISION 17.17 Inadequate/Poor Planning and Low Implementation Rate of PSIP Projects The Ministry of Rural and Maritime Development and National Disaster Management is mandated to coordinate and manage government rural development programmes in support of Pillar five to eight of the Peoples Charter for Change, Peace and Progress.
These programmes are targeted at generating economic growth and improving the standards of living within rural communities and include Rural and Outer Islands Development Programme; Rural Housing Programme; Self-Help Programme; and the Rural Roads Programmes.72 The proper management of expenditure is fundamental to ensuring value for money in delivering services to the community.
As well, having cost effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditure and corruption do not occur73 The Accounting Head has the overall responsibility for ensuring that the accounting related controls identified herein operate effectively across the Ministry.
However, individual line managers and operational staff are accountable for the operation of the control within their own areas of responsibility.74 The Annual Procurement Plan for each year must be prepared by the Permanent Secretary of each Ministry or Department and submitted to the Fiji Procurement Office after the announcement of the Budget.75 The Annual Procurement Plan of Ministry should identify all major projects, common items that can be contracted by Government based on the agencies needs and also the method of tender for all contract works.76 The audit noted the following anomalies in the administrations and implementations of the various capital projects and constructions for the Eastern Division;  The Division was able to facilitate only thirty precent (30%) payment from the two million allocated to it to facilitate the implementation of the various project appropriated under the Public Sector Investment Program (PSIP) in the 2013 budget.
Refer Table 17.36 for details;  The audit further noted that some of the project funds were redeployed and project implementations were carried forward to 2014 as a result of non-implementation of projects at year end due to pending project planning documentation from the Republic of Fiji Military 72Ministry of Rural and Development & National Disaster Management ‘s Roles & Responsibilities – Fiji Budget Estimates 2013 73 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 2 74 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 1: s 1.3 75 Fiji Procurement Regulations 2010 – s 26 (1) 76 Ministry of Finance Memorandum to all Ministries regarding Annual Procurement Plan, dated 14/09/2011 & Guides to APP Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Forces Engineer.
The evidence to show the efforts to implement the projects for the year was lacking.

Refer Table 17.27 for projects reviewed.

Table 17.27: Capital Projects Fails to Meet Plan Schedule Eastern Division Projects Nalotu, Gasele & Nauciwai Village Foot Crossing Jioma Foot Crossing Budget ($) 200,000 Actual ($) Plan Schedule Status Report 148 4th Quarter RFMF Engineers are still finalising drawings and project costs.

This has been carried forward to 2014.


100,000 0 4th Quarter Malawai Foot Crossing 155,960 0 4th Quarter Nairai Jetty 700,000 0 Institutional Strengthening Lakeba Quarters 50,000 51,031 3rd Quarter Nursing 590,000 586,283 2nd Vunisei/Daku/Soso/ Dravuwalu Road Total 300,000 0 2,095,960 637,462 Quarter to 3rd Quarter 4th Quarter The Division are still waiting for RFMF Engineers work- plan and signing of Memorandum Of Understanding (MOU).

The Project has been carried forward to 2014.


No physical progresses since RFMF Engineers are engaged in undertaking other projects.

Also there is Unavailability of project materials with suppliers and unavailability of vessel to deliver materials on time.

Funds redeployed because Fiji Roads Authority estimates of the total project cost amounted to $2 to $3 million Ablution block for PA Lomaiviti Office will commence in 2014.
However, purchase of a boat engine of $22,095 and $12,000 for office equipment was done in the current year.

Project fund was redeployed from 2012.

An amount of $227,103 has been used at the end of the second quarter of 2013.

However, due to transportation problem work has been delayed to 2014.

The release of funds was delayed from Ministry of Finance hence the project has been carried forward to 2014.
 The audit further noted poor record keeping for the Division regarding PSIP and other capital project undertaken.

Project files were not maintained for PSIP and other capital projects.
As such the status of the project cannot be ascertained and the following could not be determined: Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ o Expected project profiling and costing by the contractor; o Scope of work to be done; o Modifications made to the projects from the initial design; o Memorandum of Understanding between the Ministry and other Government Department performing works such as the Fiji Military Forces or the Fiji Road Authority; o Monthly project status and monitoring report; o Responsible Officers for monitoring projects; o Defect period; o Certification on quality of project constructed; and o Divisional Commissioner’s report on the successful deliverable of projects.
Refer Table 17.28 below for projects reviewed: Table 17.28: Capital Projects without Proper Project Files Date 28/08/13 Cheque No.

010121 Vinod Patel & Co. Ltd Payee Details 28/08/13 010127 09/09/13 010165 Vinod Patel & Co. Ltd Vinod Patel & Co. Ltd for building for Namalata Teachers Payment materials Central Quarters Payment materials house for Litiana Leba building for Payment materials for Ratu Finau Secondary School, Lau.
building 24x16 for for 01/05/13 009669 Water Authority of Fiji of Payment building for materials Nabukelevuira Concrete Water Tank 04/09/13 010147 Kasabias for for Payment materials Women’s Center, Kadavu.

building Tavuki Resource Amount ($) 25,344  No Project File; Remarks  No Status Report;  No Monitoring Unit Report;  Initial project cost does not fully cover total actual cost incurred.
9,220 40,878  No Project File;  No Status Report;  No Monitoring Unit Report;  MOU not signed by CED;  Initial project cost does not fully cover total actual cost incurred.

7,280  No Project File;  No Status Report;  No Monitoring Unit Report;  MOU not signed by CED;  Delay deliverance in services – 2010 PM’s visit.
of 9,407  No Project File;  No Status Report;  No Monitoring Unit Report;  Initial project cost does not fully cover total actual cost incurred;  No investigation in project shortfalls.

Total 92,129  Further review of the other capital projects reveal that community requested that their Self- Help 1/3 contribution to be refunded back as a result of delay in implementations.

Refer 17.29 below for details.


Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 17.29: Refund of Self-Help 1/3 Contribution Date Cheque No.

12/04/13 00689 Total Payee Details Amount ($) Remarks Kadavu Provincial Council Payment for refund for 1/3 self- help contribution – 30 HP Outboard Engine.
22,000 Contribution received since 2006 but due to non-implementation of project the Turaga ni Koro of the have concerned requested for refund.

villages 22,000  Audit further established that the above anomaly was further exacerbated by non-preparation of the 2013 Annual Procurement Plan before the commencement of the 2013 financial year.
Failure to prepare the Annual Procurement Plan for the Division results in the pro-longed delay and carried forward of PSIP and other capital projects to the next financial year thus affecting the new- year’s annual work program.

This anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Ministry on 10/05/2013 however the Division failed to take immediate action.
Failure to deliver projects on time: deteriorates the trust of communities to partner with Government on projects; increases the risk of fraud, misappropriation and manipulation; denies infrastructure development and results in public funds not being utilized efficiently, effectively and with economy.

Recommendations  The Development and Planning Section should ensure that all the pending projects are completed first before initiating new projects.
 The Division’s Planning Section should ensure that one year duration projects are completed within the year or if later during the following year for all projects funds received from the individual and communities.
 The Manager Finance in consultation with the Commissioner Eastern Division should ensure that the Divisional Planning Section open and maintains projects files so that project documents are filed accordingly including all payment, planning, monitoring and other records pertaining to the project.

Project files may be transferred and stored at the storeroom or archive room after the completion and audit of the project.
 The Development and Planning Section should monitor and ensure that projects are implemented in a timely manner to avoid additional cost (such as increase in prices of materials) required to complete the pending projects.

Evaluation reports are to be prepared by the Provincial Administrators and the District Officers and filed in the project files for records and status follow up.
 Disciplinary action should be instituted on officers for failing to justify the pro-longed delay in the completion of projects for which funds have already been received.

 The Commissioner should ensure that meetings are held with the Fiji Roads Authority and the Fiji Military Forces for concerted efforts to implement projects or otherwise tender projects.
 The Division’s Planning Section and Director Corporate Services should ensure that staff capacity and capability is assessed to ensure effective and efficient management and implementation of projects.
Management Comment (1) There is no development unit within the division, however each Provincial Administrator do take ownership of implementation of rural projects, hence forth completing of projects will be determined by the purpose of Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ the overall project (outcome assessment).
Our programs are based different sectors (agriculture, tourism, fishing sector) in which the different sectors have different variant in projects and for some sectors project will need to be carried to the following year based on the magnitude and the time frame that will depend on the weather and the isolation due to constrains in transportation availability.

This is projects for road excavation and maintenance, building infrastructure such as bridges and foot crossing.
Most of these projects are actually core function of different agencies (ministries) and subsequently the environment in the rural ascertains that these projects will need to be coordinated by the Commissioners.

This was further reinforced by the cabinet decision August 2009 with the understanding that implementation will remain with the lead agencies and that monitoring and evaluation will need to be taken over by the Commissioner’s Office.
(2) As for the rollover of funding as indicated, this is primarily for the projects that has line agencies (with core function) to build such a structure do need to take on board the projects that has been identified by the division.
At times the principal line agencies that needs to implement the projects, often tries to deliver their own project from time to time in order to ensure that their projects within the Annual Corporate Plan is completed first before they are able to manage other divisions project.
The divisions planning unit does not directly involved with the projects implementation phase and the district elements (Provincial Administrator and District Officer) are the leading elements in ensuring that projects are well underway, progressive reports are maintained and standard according to the specifications of the projects are met.

The planning unit are specifically based on the identification and selection of the capital projects that need to be planned for the future.
(3) The projects files were later identified to be one of the shortfalls in the year 2013 and basically the projects files were needed to be stored and recorded at district level.

It is the district level elements that will need to record progress and monitor projects that are specifically carried out in their areas of responsibility.
Communication has been beefed-up last year to cater for the transmission of paper work to the divisional Headquarter and such that the district levels have been affected by movement of personnel and the misplacement of project papers.

No handover procedure has been put in place to be able to ensure that proper documentation has been kept.

(4) In the Eastern the geographical location of the projects sites on the islands has been dilemma and such that limited transportation is a constraints in movement.
Timings for project completion has been delayed also due to change in weather conditions, extreme poor weather (2013 disasters) and such project timelines are not usually met.

Sincerely these are conditions that the maritime island projects will need to consider as a major risk factor in project completions.
(5) The prolonged projects and the inconsistency of project timelines are reasoned on the comments above, and in principal projects in the maritime islands based on transportation availability, difficult to accesses, unpredictable weather patterns and inconsistency of system of storage and supply chain, it is always expected that projects in the maritime islands will be difficult to implement in a timely fashion.

(6) The audit comment is noted.


We have carried out consultations with relevant stakeholders this year; tender with expression of interest was advertised for some major capital works.

(7) This is staffs that are related to project movement and monitoring.

The clerical officers will need to be re- assigned to other units while technical officers will need to be increased within the division.
The division has made an earlier submission in regards to the need to increase the number of technical staff in the division for proper monitoring and delivery of projects.

Another proposal will be submitted this year for the technical staff increase and the need to improve on project management.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.18 Breach of Public Service Commission Regulation - Double Payment of Allowance The proper management of expenditure is fundamental to ensuring value for money in delivering services to the community.
As well, having cost effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditure and corruption do not occur77.
No Officer, who is absent from his headquarters for a period of more than three months (90 consecutive days), may draw subsistence allowance in respect of the excess period unless prior approval has been obtained from the Permanent Secretary for the Public Service.78 A servicep erson is not entitled to remote location allowance while the member is entitled to seagoing allowance; field allowance; subsistence allowance; or travelling allowance.79 Despite the above, the audit noted that subsistence allowance and remote allowance were paid to Republic of Fiji Military Forces (RFMF) Engineer Mr. Tevita Poese to cater for his accommodation in Kadavu for the completions of the Tavuki Woman Resource Center.
Refer Table 17.30 below for details.

Table 17.30: Double Payment of Subsistence Allowance Date Ref.

EDP No.

Payee Payer 16/12/13 Voucher 27076 No.

51676 Tevita Poese of and Ministry Rural Maritime Development No.

Of Days Claim 93 days and 3 meals Period Covered 19/08/13 to 20/11/13 07/10/13 Pay 20 27076 Tevita Poese RFMF 14 days 24/09/13 to 07/10/13 Total Details Amount Payment of subsistence allowance for the construction of Women Tavuki Resource Center in Kadavu.

Payment of location allowance.
remote ($) 2,817 280 3,097 The audit further noted the following anomalies in the payment of subsistence and remote allowance:  Public Service Commission approval were not obtained for payment of subsistence allowance claim of more than 90 consecutive days contrary to Public Service Regulations General Order 502;  The subsistence allowance was directly deposit to RFMF Engineer, Mr. Tevita Poese personal bank account rather than the RFMF Engineer Bank Account;  The RFMF Engineer personnel were also paid remote allowance on the same period (24/09/13 to 07/10/13) of the subsistence claim.
The above practices indicate ignorance of governing procedures and breach of finance instructions and policies.

This could be catalyst to abuse, misappropriation and fraud which could result in wastage of taxpayer’s funds.
77 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 2 78 Public Service General Order 502 79 RFMF Correspondence J81/2/1 List B – s 39 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations  The Division Accounts Officer and the Senior Account Officer of the Ministry should take necessary action to recover money from the RFMF Engineer personnel and pay it to the RFMF Engineer sections.
 The Divisional Accounts Officer should ensure that PSC approval are sought prior to payment and that subsistence allowance is paid to the RFMF Engineer sections for future engagement of RFMF Engineer personnel.

 The Division and the Ministry should investigate the officers responsible for not adhering to the financial regulations and implement appropriate disciplinary actions.
Management Comment The oversight of the accounts section has been noted for laxity in the part of payment for over 90 days on subsistence and claims.

This has been taken into serious consideration and those responsible has notified for with a stand warning.

The RFMF will be notified in writing and the officer will be subjected for recovery of the double payment on allowances.
The Division accounts have been forewarned not to exceed payment for more than 90 days and the Division will ensure that all payments to RFMF personnel will be directed to RFMF accounts section, which in turn will compensate the individual.
17.19 Un-Reconciled Variance between Project’s Acquittal Statement and General Ledger Upon completion of the project, the grant must be properly acquitted.80 The Accounts Officer is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial information and the timeliness of management reports.81 The audit noted that the statement of acquittals prepared by the divisions for the various projects did not reconcile with the FMIS general ledger.
Refer Table 17.31 below for details of variances noted between the two records: Table 17.31: Detail of Variance – Review of Projects from Eastern Division Statement of Acquittals and the General Ledger Program Name Allocations Self – Help Rural Housing & Poverty Alleviation Program Building Grant Boarding Facilities Total 1-18301-94991-100110 1-18401-94991-100111 1-18301-94991-100143 1-18301-94991-080428 Total Expenditure as per General Ledger (FMIS) ($) Total Expenditure as per Statement of Acquittal ($) 80,353 67,964 7,922 0 156,239 293,508 187,567 273,673 135,106 889,854 Variance ($) (213,155) (119,603) (265,751) (135,106) (733,615) The above anomaly was further exacerbated by poor record keeping by the Divisional Planning Section which includes preparation of the projects acquittals.
80 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Standard Operating Procedures – s3.5 81 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 14 – Ledger Accounts Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Division failed to reconcile and rectify the variances between the two records.
In the absence of reconciled records, projects undertaken by the Division are not properly accounted.

Recommendations  The Divisional Planning Section should maintain proper payment records of all projects and ensure that the statement of acquittals prepared are accurate and reflect all the cost associated with the projects.

 The Divisional Planning and Accounts Section should investigate and rectify the variances noted between the statement of acquittals and the FMIS general ledger balance.
 The Planning section should ensure that the monthly reconciliations are carried out properly and accurately, checked by the Accounts Officer and verified by the Divisional Planning Officer and Divisional Commissioner.

Management Comment The audit comment is noted.

We will improve on our internal process where acquittals need to be verified from the Accounts Section before it’s submitted to Ministry of Finance.
The Finance and the Planning Cell will strengthen on its verification and reconciliation process for all projects to ensure quality acquittal report is formulated for submission.

17.20 Inadequate Management of Project Materials / Items at Top-Yard Store Inventory purchasing, storage and recording should be efficiently managed to ensure that there is a sufficient level of inventories when needed, while minimising the cost of holding inventory and the risk of stock becoming obsolete or damaged.
These responsibilities are assigned to the Permanent Secretary, Director Corporate Services, Manager Rural Housing, Top Yard Supervisor, Officer in Charge (PA/DO/ADO/AO), Storeman, Clerical Officer and Stocktake Officers.82 The audit noted the following anomalies in the management of inventory.

17.20.1 Damage and Obsolete Materials Storage of Inventories shall be the responsibility of the store man.
The Store man must ensure that adequate storage space is available for incoming stock as and when required, stocks are handled with care and well stored so as to reduce the risk of damage and quantity of stock is closely monitored to avoid excess holdings or shortages.83 The audit inspection of the store house at Top Yard Store, Walu Bay noted the following anomalies:  The store house does not have adequate space for the incoming project building materials and other items;  Project building materials and other project items are stacked outside the store house;  Unaccounted project building materials and other items were also noted to be stacked idly outside the yard which have been there for some years;  Unaccounted materials stacked idly outside the yard are deteriorating due to wear and tear.
Refer Figure 17.2 of Appendix 17.4  Damaged and obsolete items were not cleared away which were occupying most of the space within the yard.
Refer Figure 17.1 of Appendix 17.4 82Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 7 – Inventory Management 83 Ministry of Rural and Maritime Development and National Disaster Management, Finance Manual 2011 – s7.2.1 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 41 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Items and materials that were declared unserviceable were stacked inside the store room occupying good storage space for storing the building materials lying outside the yard.
The audit further established that some items and materials declared unserviceable were still good and useable condition.

Refer Figure 17.3 of Appendix 17.4 Recommendations  The Commissioner Eastern Division, Director Corporate Services, Director Development and Planning in consultation with the Permanent Secretary should immediately instigate a stock take of items at Top Yard Store.
 The Officer in Charge of the Top Yard Store should properly place items received in the shed or in a proper storage facility to avoid damages and deterioration.

 The Officer in Charge should ensure that unserviceable items, damaged and obsolete stock are removed from the yard to allow proper storage space for the new project building materials and other items.
 The Commissioner Eastern Division should make use of those unserviceable items (which are noted to be in good conditions and other unaccounted project building materials) for new projects which are yet to be initiated, hence reducing the project cost for the government and savings some of the taxpayers funds which could be used for other priority project.
 The Commissioner Eastern Division, Eastern Division Principal Planning officer and Director Corporate Services should strengthen supervisory checks in the management of stores at Top Yard Store.

Management Comment The Eastern Division items that have been identified at TOP YARD are projects that have been ceased due to changes in government policies for community hall and religious organization.
Currently there have been special teams from within the Eastern Division that are organizing the return of these materials and ensuring that they are properly accounted for, before it is delivered to those that are responsible.

The exercise will continue until the close of this month and that before the beginning of November 2014, the Eastern Division items are expected to be completely delivered from the TOP YARD storage centre.
17.20.2 Non- Distribution of the Tropical Cyclone Tomas Rehabilitation Materials The Officer in Charge shall maintain the inventory register to record incoming and outgoing inventories.

The inventory register shall provide the following information: date of acquisition and order number reference; number of items received and cost price; supplier details; date of issue of inventory and nature of issue; issue reference, quantity issued.
The Officer in Charge shall ensure that the register is kept up to date at all times.84 The Director Corporate Services shall appoint two stocktake officers, one of whom is independent of the inventory function, to undertake a stocktake of all inventories at least once a year.

The stock take Officers shall prepare their stock take report noting any surplus, damage, obsolete or unaccounted stock and their recommendations.
The stocktake report shall be signed by the Stocktake Officers and submitted to the Director Corporate Services together with the stocktake sheets.
The inventory register shall be adjusted only after the Director Corporate Services has endorsed the recommendations and approval has been given for any write-offs or write-ons.85 84 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s7.1.3 85 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s7.3.1 to 7.3.5 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 42 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Access to the inventory stores shall be limited to the Storeman.
All other officers shall be restricted from entering storage facilities unless approval is granted by the Storeman.86 Inventory purchasing, storage and recording should be efficiently managed to ensure that there is a sufficient level of inventories when needed, while minimising the cost of holding inventory and the risk of stock becoming obsolete or damaged.87 Storage of Inventories shall be the responsibility of the store man.
The Store man must ensure that adequate storage space is available for incoming stock as and when required, stocks are handled with care and well stored so as to reduce the risk of damage and quantity of stock is closely monitored to avoid excess holdings or shortages.88 The audit noted that Tropical Cyclone Tomas Rehabilitation materials that were received in 2011were still stacked and stored at the Top Yard Store and were not delivered to those affected by the cyclone.
Refer Figure 17.4 and 17.5 of Appendix 17.4.
In addition, the audit further noted the following anomalies in the documentation of materials stored at the Top Yard Store:  There was no proper Inventory Register;  Copies of supplier’s invoice detailing all materials supplied to the store were not kept by the store officer;  There was no proper delivery documents kept for dispatching materials to the rural areas;  There was no security stamp of receiving and despatching; and  There was no stocktake for the store.
The above anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Ministry on 10/05/2013 however the Division failed to take immediate action.

Holding of Tropical Cyclone Rehabilitations materials at the trop yard store without being distributed in a timely manner denies the timely government assistance to the communities and individuals affected by the tropical cyclone.
Recommendations  The Commissioner Eastern Division, Director Corporate Services, Director Development and Planning in consultation with the Permanent Secretary should immediately instigate a stock take of Tropical Cyclone Tomas Rehabilitation materials at the Top Yard Store.
 The Commissioner Eastern Division, Director Corporate Services, Director Development and Planning in consultation with the Permanent Secretary should make it a first-hand priority to deliver all Tropical Cyclone Tomas rehabilitation materials at Top Yard Store to its respective recipients.

 The Officer in Charge of the Top Yard Store should maintain a proper inventory register and ensure that the register are kept up to date at all times as per Finance Manual 7.1.3.
 The Officer in Charge of the Top Yard Store should ensure that all items received and dispatched at the yard are properly authorised.

 The Commissioner Eastern Division, Eastern Division Principal Planning Officer and Director Corporate Services should strengthen supervisory checks in the management of inventory at the Top Yard Store.
86 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – s7.2.2 87 Ministry of Rural and Maritime Development and National Disaster Management, Finance Manual 2011 – Part 7 – Inventory Management 88 Ministry of Rural and Maritime Development and National Disaster Management, Finance Manual 2011 – s7.2.1 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 43 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment No comment received from the Ministry 17.20.3 Pro-Long Delay of Delivery of the “Vakatawa” Housing Project The Ministry of Rural and Maritime Development and National Disaster Management is mandated to coordinate and manage government rural development programmes in support of Pillar five to eight of the Peoples Charter for Change, Peace and Progress.
These programmes are targeted at generating economic growth and improving the standards of living within rural communities and include Rural and Outer Islands Development Programme; Rural Housing Programme; Self-Help Programme; and the Rural Roads Programmes.89 The Accounting Head has the overall responsibility for ensuring that the accounting related controls identified herein operate effectively across the Ministry.
However, individual line managers and operational staff are accountable for the operation of the control within their own areas of responsibility.90 The audit noted that building materials for the “Vakatawa” Residential Project91 which were approved and assisted in 2009 were still stacked inside the store room and outside the yard.

Refer Figure 17.6 of Appendix 17.4 for details.


The above anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Ministry on 10/05/2013 however the Division failed to take any action.

Holding of project’s building materials at the Trop Yard Store without being distributed in a timely manner indicate poor administrations and inadequate capacity and capability of the divisions in implementing routine projects that have been with the division over the years.
Failure to deliver projects on time deteriorates the trust of communities to partner with Government on projects.

Also, the risk of fraud, misappropriation and manipulation is high.

Recommendations  The Commissioner Eastern Division, Director Corporate Services, Director Development and Planning in consultation with the Permanent Secretary should immediately instigate a stock take of Vakatawa Residential materials at Top Yard Store.
 The Commissioner Eastern Division, Director Corporate Services, Director Development and Planning in consultation with the Permanent Secretary should make it a first-hand priority to complete the project or refund the community 1/3 contributions.

Ministry’s Comments No comment received from the Ministry.
89 Ministry of Rural and Maritime Development and Disaster Management, Roles & Responsibilities – Fiji Budget Estimates 2013, Page 103 90 Ministry of Rural and Maritime Development and Disaster Management, Finance Manual 2011 – Part 1: s1.3 91 A self-help project which were approved in 2009 and financial assistance and implementation commence in 2009.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 44 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ COMMISSIONER WESTERN DIVISION 17.21 Discrepancies for Reported Project Status versus Physical Project Visit The preparation of management reports allows senior management to analyse the standing of the Ministry for a particular period and assist in meeting the management responsibilities imposed by the Act.
Timely and accurate management are necessary for effective management decisions.

As well, annual reports and financial statements act as an accountability tool for external stakeholders to assess the operations and performance of the Ministry.
The audit noted that the following Public Sector Investment Project (PSIP) were recorded one hundreds per cent (100%) complete as at 31st December 2013 however audit site visit verification revealed that construction works were in progress, incomplete while defects were noted for those completed projects.

Refer Table 17.32 below for details.

Table 17.32: Discrepancy of Project Information Reported Date Chq No.
Payee Name of Project 19/04/13 & 06/08/13 14518 & 15188 Divisional Engineer Works Cuvu Health Centre Project Cost ($) 700,000 Project Status on Paper on 31/12/13 Financial 100% Physical 100% 04/09/13 15441 Divisional Engineer Works ADO Korolevu Station 300,000 100% 100% 30/01/13 14589 17/09/13 15467 Divisional Engineer Works Keiyasi Health Centre 400,000 99% 100% 04/04/13 14427 RFMF Engineers Regiment Mare Access Road 100,000 100% 100% Audit Site Visit92 still Health Centre was incomplete with plumbing work left.
Refer Figure 17.7 of Appendix 17.5 for pictorial view.

Work was still in progress with the grade IV quarters and incomplete.

road work still Refer Figure 17.8 of Appendix 17.5 for pictorial view.

Health Centre was completed with 2 major defects: 1.

Wards without electricity power points; 2.

Septic tank socket tip not complete causing spilt.

Refer Figure 17.9 of Appendix 17.5 for pictorial view.

RFMF outsourced the work to Contracting Nands tight work to Limited due schedule.
As a result the road was not properly done due to limited funds.

allocated Defects sited includes: 1.

No gravel only soap Civil stones; 2.

Poor drainage system; 3.

Damaged Iris crossing not repaired.

Figure Refer of Appendix 17.5 for pictorial view.

17.10 Total 1,500,000 92 The audit site visit verification was done on 30/01/14 to 01/02/14.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The above indicates laxities of the Divisional and Provincial Administrators in reporting inaccurate information to the management and stakeholders.

It is apparent that capital projects were not progressively monitored to ensure the proper completion of the project to the required standard.
Reporting of inaccurate information misleads management and other stakeholders which may results in improper, ineffective and inefficient decisions making.

Poor Implementation of projects results in wastage of taxpayer’s fund which denies proper infrastructure development for the community and the people.

Hence it cannot be deduced that public funds have been utilized efficiently, effectively and with economy.

Also the risk of abuse, fraud and misappropriation is high.
Recommendations  The Senior Economic Planning Officer (SEPO) should ensure that correct and accurate information are reported for all the projects.

 The Divisional Planning Officer (DPO) should strengthen supervisory checks on projects report to ensure that accurate and reliable information are reported.

 Disciplinary action should be instituted if the responsible officer continues to provide false and misleading information to management and stakeholders.
Management Comment (1) Cuvu Health Centre: Ministry of Works confirms that the plumbing works have been completed but the slop hopper was yet to be fitted as it was burned in their transit store.

They have installed another one.

The handover Certificate for Cuvu Health Centre Phase 1 was issued on 23/12/13.It was confirmed the completion of the project in accordance with standard Department of Works construction plans and specifications.
It was understood that pending minor finishing works (if any) will be completed upon the commencement of Phase 2 and Final Phase in 2014.

(2) ADO Korolevu Station: Ministry of Works have also completed.

However, most of the gravel was washed away during the heavy rain.

The Handover certificate was signed on 23/12/13.It confirmed the completion of the project in accordance with the standard of Department of Works construction plans and specifications.
The funding was inadequate to complete a quarters and an administrational office.

As such, the funds were used to construct a Grade VI Quarters (timber), as well as roads for a new unsealed road.

(3) Keiyasi Health Centre: Ministry of Works have installed all power points and power was supplied to the Health Centre.

Septic tank has been repaired and completed.


The Handover certificate was signed on 23/12/13.It confirmed the completion of the project in accordance with standard of Department of Works construction plans and specifications.

Funds have been allocated this year to Ministry of Health to upgrade the Health centre.

(4) Mare Access Road: Ministry of Works confirmed that Mare Access Road was 4.3km.
The scope of work for Mare Access Road was in accordance with the allocation ($100,000.00) Due to the limitation of fund allocated towards an enormous task, there was not enough allocation to use so we resorted to soapstone.

Proper drainage was constructed on both sides however due to lack of maintenance and adverse weather, the condition of the drainage had deteriorated.

Allocation of $100,000.00 is not sufficient to upgrade a 4.3km road and repair the damaged Irish Crossing.
The actual cost to upgrade 1km road is $1,000,000.00.

The Divisional Commissioner Western and the team Leader Western, RFMFE Regiment had inspected the road and were both satisfied with the work done by NCCL.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 46 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 17.21 Irregularities in Tropical Cyclone (TC) Evans Housing Rehabilitation The Ministry was allocated an amount of $17,679,908 later in December 2013 in which funds were transferred from Ministry of Finance to cater for the Tropical Cyclone Evan Rehabilitation.
The Tropical Cyclone Evans Housing Rehabilitation operation commences later in December 2013 which will continue in 2014 due to the massive number of house partly and completely damaged.

The audit noted the following irregularities in the operation of Tropical Cyclone Evans Housing Rehabilitation.

17.21.1 Vetting and Assessment Anomalies (Identification of Damaged Household) Once application is received from the applicants, an assessment team is sent to assess and verify the damaged.
This assessment team will then estimate the required materials needed for the partly damaged house and those that need a complete new home.

After assessment, a project profile is created for those approve applicants.

The recipient project profile is then forwarded to Provincial Administrator or District Officer for recommendation for funding and then to Commissioner Western Division for endorsement.
The project profile includes the residential dwelling damage assessment form, verification report and issuance voucher which documents the description of materials to be issue, value of assistance to be provided to the applicant, and the respective payee.

Issue voucher are then endorsed and authorised for issue by the respective officer in charge for the verifications and assessments.
The audit noted the following anomalies in the vetting and assessment process:       Residential dwelling damage assessment form was not signed by witness; Issuance Voucher (IV) under verification report was not signed by the officer preparing the IV nor the officer authorizing the issue; Verification Team Leader did not signed the verification report; Changes to the material quantity in materials listing were not initialled; Incorrect assessment done by RFMF93 Engineer resulting in a second assessment by Rural Housing Unit; Recipients Project Profiles were not endorsed by Commissioner Western Division.
Unsigned official documents portraits carelessness, ignorance, unskilled and unprofessional conducts which increases the risk of fraudulent activities in the vetting and assessment process.

It is apparent that proper assessments were not properly done which have resulted in the second assessment by the Ministry.

Hence it cannot be deduced that vetting and assessment process of the rehabilitation works were conducted efficiently.
Recommendations  The Commissioner Western Division, Provincial Administrators and District Officers should ensure that all assessment forms and verification reports are properly signed and endorsed by authorized officers.

 The Commissioner Western Division, Provincial Administrators and District Officers should strengthen supervisory checks in the vetting and assessment of damaged households.
 The Commissioner Western Division should ensure that proper assessments are done by the experts to avoid re-assessment and its cost.

93 The Royal Fiji Military Force was engaged in the TC Evans Rehabilitation works.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 47 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Changes to any approved material listing should be properly authorised and documented for third party justifications.

Management Comment All recommendation submitted by the audit are noted.
All assessment forms, verification reports and issuance voucher not signed and endorsed by authorized officers was due negligence and comments by audit is noted.

Supervisory checks in the vetting and assessment were not done on this rehab exercise due to transportation problems, shortage of resources and also confirmation was done by the RFMF team.

Recommendation by audit for assessment to be done by experts is also noted.
17.21.2 Non-Issuance of Purchase Order for Tropical Cyclone Evans Rehabilitation Building Materials A Purchase Order (PO) shall be issued when procuring any goods, services or works from an organization within Fiji, unless a contract or agreement has been entered into.94 The Accounts Officers must initial any alteration to a payment voucher95 Within 30 days after a state of natural disaster has been declared, the Permanent Secretaries of Ministries given special responsibilities under the Disaster Management Control Act can procure goods, services or works for immediate relief assistance such as food items and access to clean and safe water, medical supplies, temporary shelter materials and seeds for subsistence purposes, provided that the procurement has been endorsed by the National Disaster Management Controller.
The National Disaster Management Controller is the Permanent Secretary of National Disaster.

When procuring these goods, services or civil works, relevant agencies must first utilize existing standing offer contracts before procuring goods, services or civil works from other suppliers.
At the end of the immediate relief period, these Ministries must submit a report to the Minister of Finance stating the amounts of funds that have been used on the immediate relief assistance.96 Procuring Ministries or Departments must comply with competitive procurement procedures when procuring goods, services or civil works for ongoing relief assistance and rehabilitation purposes.97 Permanent Secretaries must ensure that all standing offer contracts executed by the Fiji Procurement Office on behalf of Government pursuant to sub regulations (1) and (2) are complied with at all times.98 This includes the contract for supply of roofing products from Roofing and Profile Ltd (CTN 147/12), contract for the supply of pine post from Green Gold Post & Pole Ltd (CTN244/2012), and contract for the supply of plywood from Carpenters Hardware (CTN119/2013).
Written confirmation must be obtained from the primary supplier of inability to supply before procurement can be sourced from the secondary supplier.99 The audit noted the following anomalies in the procurement of materials for TC Evans Rehabilitation;  Purchase Order (PO) was not issued however blanket approval was issued to the suppliers to deliver materials;  The Ministry reveal that blanket approvals were issued on the strengths of powers given to the Ministry which is within the 30 days after the declaration of the state of the natural disaster in 94 Ministry of Rural and Maritime Development and National Disaster Management, Finance Manual 2011 – Part 2.5.1 95 Ministry of Rural and Maritime Development and National Disaster Management, Finance Manual 2011 – Part 2.8.5 96 Ministry of Finance Procurement Regulation 2010 – s33(1) to s33 (3) – Immediate Relief Assistance 97 Ministry of Finance Procurement Regulation 2010 – s34 (1) – Ongoing Relief Assistance and Rehabilitation 98 Ministry of Finance Procurement Regulations 2010, s35 (2) 99 Ministry of Finance Procurement Office Standing Offer Contracts as at 20/03/2014 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 48 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Fiji on December 2012.100 However audit established that the 30 days expires on February 2013 and the procurements were made in December 2013 which is 334 days after the expiry of the 30 days;  The blanket approval issued to the supplier did not contain any ceiling amount for the cost of building materials to be supplied;  Existing standing offer contract were not utilise by the Western Division office before procuring the building materials from the various suppliers.
Refer Table 17.33 below for payment details made to respective suppliers to deliver materials to the respective Districts in the various Provinces of the Western Division.

Table 17.33: Details of Payments Made To Suppliers Base on Blanket Approval Issued Date Supplier 30/12/13 Kasabias Ltd 24/12/13 RC Manubhai 18/12/13 Vinod Patel Total No.

of Applicants 31 44 11 128 Remarks Amount ($) 227,028 Being payment for the supply of building materials for TC 543,251 Evans Rehabilitation.
46,272 816,551 The above practice indicates ignorance of government procedures and breach of procurement regulation.

Non-purchases from contracted suppliers negate economy and purposes of agreement.

Also, this could results in unnecessary lawsuits for Government for failing to adhere to contractual obligations.

The risk of mismanagement, theft and fraudulent activity is also high.
Recommendations  The Permanent Secretary should ensure that procurements procedures for immediate assistance articulated in the procurement regulation are properly adhered to.

 The Permanent Secretary should ensure that procurements of goods, services or works for immediate relief assistance such as temporary shelter materials are made within the 30 days after the declaration of the state of the natural disaster as per 2010 Procurement Regulation 33(1) to 33(3).
The Ministry to obtain Ministry of Finance approval after 30 days.

 The Commissioner should ensure that local purchase orders are issued when procuring goods and services.

 Existing contracts for whole of government are to be utilise by the Division before procuring from other supplier.

The Ministry should ensure that written confirmation to be obtained from the primary supplier of inability to supply before procurement can be sourced from the secondary supplier for procurements of building materials.
Management Comment The purchase order was not issued when procuring goods and services on this rehabilitation exercise due to the Directive from Headquarters on AG’s authority.

Waiver of tender approval was given by Permanent Secretary Finance to procure materials from the four hardware companies and payment of invoices to be submitted to Ministry of Finance for approval of payments.

Recommendation by audit has been noted in this case for future references.
100 Ministry of Finance Procurement Regulation 2010 – s33(1) to s33 (3) – Immediate Relief Assistance Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 49 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Further OAG Comments The Ministry of Rural and Maritime Development and Disaster Management did not produce to audit the formal directive from AG and waiver of tender approval upon further audit inquiries and verification to the Ministry’ Headquarters on 01/09/2014.
The Ministry was referring to the Ministry of Finance approval of excess for payment above $50,000 per day which was produce to audit upon further audit inquiries and verification to the Ministry’ Headquarters on 01/09/2014.
The Ministry of Rural and Maritime Development and Disaster Management did make the procurements on the strengths of the powers given to the Ministry which is within the 30 days after the declaration of the state of the natural disaster in Fiji on December 2012.101 However audit established that the 30 days expires on February 2013 and the procurements were made in December 2013 which is 334 days after the expiry of the 30 days.
17.21.3 Short Supply of Materials Delivered to Recipients Upon receipt of the goods, services or works, the receiving officer shall verify that their receipt in good order and that the invoice is in accordance with the Purchase Order (PO).

The receiving officer must be an officer other than the officer authorizing the PO.
If the quantity of the goods received is less than the quantity shown in the supplier’s invoice or delivery note, the receiving officer shall furnish a report to the Officer in Charge who shall arrange a claim against the supplier or carrier.102 The audit noted the following anomalies in the administration and implementation of the TC Evans Rehabilitation Program;  The materials purchased as recorded in the supplier’s invoice were not fully delivered to recipients by the Division.
Refer Table 17.34 below for details.

Table 17.34: Short Supply of Materials to Recipients Date Invoice No.
Supplier 06/12/13 11PW/130149-1 Kasabias Ltd 05/12/13 11PW/130112-1 05/12/13 11PW/130115-1 11/12/13 11PW/130340-1 18/12/13 11PW/130663-1 Total Recipient Name Apisalome Talei Arun Reddy Kamal Krishna Gounder Laisenia Rasaga Tora Mere Mara Address 70 Sandalwood Street, Drasa Vitogo, Lautoka 15 Pompey Place Field 40, Lautoka Velovelo Temple Road, Natabua, Lautoka Viseisei Village, Lautoka 21 Kara Punja Road, Waiyavi, Lautoka.
Material Received ($) 1,271 4,431 1,097 837 521 Material Not Received ($) 3,061 1,876 1,558 2,186 6,598 8,157 15,279 (Refer to Appendix 17.6 for details of delivered and undelivered materials to the recipients)  The standard housing materials requires that zincalume roofing iron are to be purchased which is cheap as compared to colorbond roofing iron, however audit noted that the Division paid for colorbond roofing iron;  The audit further established that colorbond roofing iron was not delivered as per site visit verification.
Refer Table 17.35 for details; 101 Ministry of Finance Procurement Regulation 2010 – s33(1) to s33 (3) – Immediate Relief Assistance 102Ministry of Rural and Maritime Development and National Disaster Management, Finance Manual 2011 – Part 2.5.21 to 2.5.23 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 50 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 17.35: Unsanctioned Materials Purchased Not Delivered Date Invoice No.
Supplier Unsanctioned Material Project Recipient 06/12/13 11PW/130149-1 Kasabias 11PW/130112-1 05/12/13 Ltd 18/12/13 11PW/130663-1 106.75mtr Trimdek Colorbond Roofing Iron 26g per meter 319.00mtr Trimdek Colorbond Roofing Iron 26g per meter Apisalome Talei Arun Reddy Mere Mara Total Amount ($) 1,704 1,704 5,423 8,831  The audit further noted that recipients of the assistance could not commence with the rehabilitation works due to part supply of materials from the supplier.
Non delivery of other building materials denies the timely government assistance to the communities and individuals affected by the tropical cyclone.

Recommendations  The Commissioner Western Division, Director Corporate Services, Director Development and Planning in consultation with the Permanent Secretary should immediately instigate an internal investigation on the undelivered materials.
 The Permanent Secretary should investigate the officers responsible and implement appropriate disciplinary actions for denying timely implementation of government assistance.

Management Comment According to our Logistic Officer at our government yard section, all these rehab recipient clients are supplied with the balance of their materials early this year 2014.

Recommendation by audit has been noted.


Further OAG Comments The Ministry of Rural and Maritime Development and Disaster Management did not produce to audit the delivery documents to justify the comments by the Ministry upon further audit inquiries to the Ministry’ Headquarters and to the Commissioner Western Division on 28/08/2014.
All the recipients of the assistance confirm to audit on 28/08/2014 that they have not received any other material as at to date103 upon further verbal telephone audit confirmation on 28/08/2014 to each of the recipient.

103 The confirmation was made on 28/08/2014.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 51 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES Appendix 17.1: Details of Error in Preparation of VAT Returns Month January February March April May June July Revenue as per General Ledger system (FMIS) ($) Revenue as per Ministry VAT Return ($) 15,723 16,423 Revenue Difference ($) (699) Expenditure as per General Ledger system (FMIS) ($) Expenditure as per Ministry VAT Return ($) Expenditure Difference ($) VAT Output on Difference ($) 61,504 61,504 0 (91) FMIS VAT Input (SEG 13) ($) 7,177 PDNDMO Vat Input (SEG 13) ($) 7,177 Vat Input Difference ($) Vat Payable / (Refund) on Difference ($) 0 (91) 101,410 110,617 (9,207) 231,329 270,374 (39,045) (6,291) 32,834 32,834 0 (6,291) 299,774 271,770 28,004 212,821 505,656 (292,835) (34,528) 53,591 93,602 (40,011) 5,482 ( 18,854) 18,856 (37,710) 132,856 130,752 2,105 (4,642) (12,930) (15,035) 2,105 (15,860) 1,502 (17,363) 437,537 378,601 58,936 5,420 57,936 0 57,936 51,909 77,137 (25,228) 308,190 308,190 0 (3,289) 58,664 58,664 0 (7,269) 0 (7,269) 351,341 479,422 (128,082) (17,647) 75,182 75,182 0 (6,747) (52,515) (3,289) (17,647) August 319,196 46,375 272,821 339,303 339,333 (30) 35,566 21,153 21,153 0 35,566 September 129,432 0 129,432 381,136 421,705 (40,569) 11,586 (40,569) 0 (40,569) 52,155 October November December Total 53,887 6,987 46,900 545,601 308,190 237,411 37,068 103,414 58,664 44,751 (7,683) 162,251 0 162,251 521,111 521,111 0 21,154 (18,742) (18,742) 0 21,154 223,905 301,947 (78,042) 1,801,765 1,593,485 208,280 16,980 245,199 245,199 0 16,980 1,315,504 851,614 463,890 5,324,494 5,318,323 6,171 61,286 582,909 558,698 24,212 30,074 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 52 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 17.2: Honorarium Claims made during TC Evans – Established Officers
 EDP# Name Annual Salary Honor- arium Pay # Hours Claimed (A) Audit Calcul- ation Variance Overpay ment Convert ed to Days – Estimat- ed (A/7.5) Non- Taxable Allowan -ce Actually Paid Supporting Documents Sighted In Salaries File Memo to PS for Initial overtime approval Copies from Attendance Register attached & Verified Overtime Hours Summary Done 17428 18545 19354 41449 47366 49736 53309 53345 53361 53460 53489 53509 53683 53992 57250 58039 59856 62674 63198 63351 63352 Ratumaitavui P. Alifereti P P Bolalevu A Tavaga Sitiveni Tale Setareki Moroivalu L Uraia M. Vodo Joseva Abenisiga Alivereti Cabenauli Cilia V Viema Bainikoro Peni Koro Nacanieli L. Ruth Estella Suka Josefata Laisenia Natila Inoke Roko Alumita Odro Akeneta C. Kalivati Rabuka George O.
60,557 22.00 04/13 207 75,849 36,530 20,945 56,419 36,530 26,845 26,845 11,990 - 15.00 10.00 22.00 15.00 10.00 10.00 9.35 18,218 14.20 16,160 12.60 20,945 26,845 20,945 26,845 16,160 16,160 10,292 16,160 16,160 10.00 10.00 10.00 10.00 12.60 12.60 8.02 12.60 12.60 04/13 10/13 04/13 04/13 04/13 10/13 10/13 04/13 14/13 04/13 14/13 04/13 14/13 04/13 04/13 04/13 04/13 04/13 10/13 10/13 10/13 10/13 219 207 183 207 315 194 168 225 26 124 23 235 35 202 248 187 211 168 171 232 181 118 16,160 12.60 10/13 159 28 29 28 24 28 42 26 22 30 3 17 3 31 5 27 33 25 28 22 23 31 24 16 21 4,543 4,543 - 4,818 3,112 1,830 4,554 4,718 1,943 1,684 2,104 245 1,766 321 2,955 436 2,023 2,475 1,865 2,113 2,117 2,155 1,865 2,281 1,487 - 3,112 1,830 4,554 4,718 1,943 1,684 2,104 245 1,766 321 2,955 436 2,023 2,475 1,865 2,113 2,117 2,155 1,865 2,281 1,487 4,818 - - - - - - - - - - - - - - - - - - - - - 2,007 2,007 - No No No No No No No No N/A N/A N/A N/A N/A N/A No No No No N/A N/A N/A N/A N/A N/A No No No No No No No No No No No No Yes No No No Yes No Yes No No No No No No No No Yes Yes Yes No No Yes No Yes No Yes No Yes Yes Yes Yes Yes No No No No No Memo to PS Recom mendin g Paymen t Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Memo to PSC or MOF Payment Approval No No No No No No No No N/A N/A N/A N/A N/A N/A No No No No N/A N/A N/A N/A N/A N/A Overtime Entry Form Filled by Salaries Clerk-Input Form (Form FS04) Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Audit Trail to PV Form Verified & Authori zed by SAO Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No No No No No No No No No No No No No No No No No No No No No Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 53 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ EDP# Name Annual Salary Honor- arium Pay # Hours Claimed (A) Audit Calcul- ation
 Variance Overpay ment Convert ed to Days – Estimat- ed (A/7.5) Non- Taxable Allowan -ce Actually Paid Supporting Documents Sighted In Salaries File Memo to PS for Initial overtime approval Copies from Attendance Register attached & Verified Overtime Hours Summary Done 16,160 12.60 04/13 185 63634 90255 90670 90862 90867 Penijamini Ruru Mesake Seru Joeli Cawaki Asesela Biutivi Niumaia Masere 10,292 60,557 16,160 16,160 8.02 22.00 12.60 12.60 91364 Apisai Vularika 16,160 12.60 92072 92074 92511 92675 92677 Ilai Moceica Aliki Tuimakutu Jiuta Waqavonovon o Samuela Kanainaliwa Mereoni Sariki 60,557 10,724 16,160 22.00 8.36 12.60 10,292 8.02 10,292 8.02 93062 Irami Lewaravu 16,160 12.60 48251 92658 91200 62306 Mele Lacarua Ulamila Bau Filipe Sama Lanieta Sanavitilevu 30,833 10,724 10,292 10,292 10.00 8.36 8.02 8.02 07/13 04/13 10/13 04/13 07/13 12/13 04/13 14/13 10/13 10/13 04/13 14/13 04/13 12/13 04/13 12/13 04/13 14/13 04/13 04/13 04/13 04/ - - - - - - - - - - - - - - - - - - - - - - - N/A N/A No N/A N/A N/A N/A N/A N/A No N/A N/A N/A N/A N/A N/A N/A N/A N/A No N/A N/A N/A Yes Yes No No Yes Yes Yes No No No No No No No No No No No No No Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes No No No Yes No Yes Yes Yes Yes Yes No Yes Yes Yes Yes Memo to PS Recom mendin g Paymen t Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Memo to PSC or MOF Payment Approval N/A N/A No N/A N/A N/A N/A N/A N/A No N/A N/A N/A N/A N/A N/A N/A N/A N/A No No N/A N/A Overtime Entry Form Filled by Salaries Clerk-Input Form (Form FS04) Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes
 No Yes Yes Yes Yes Yes No Yes Yes Yes Yes Audit Trail to PV Form Verified & Authori zed by SAO Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes No Yes Yes Yes Yes Yes No Yes Yes Yes Yes No No No No No No No No No No No No No No No No No No No No No No No Total Overtime Paid to Established Staffs 102,437 97,619 4,818 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 54 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 17.3: Overtime & Meal Claims – Government Wage Earners Depar tment EDP# Name Pay # Rate Norm al Time Time & Half Doubl e Time Overtime Paid Exces s Norm al Time Total Hours Claimed for Overtime (A) Converted to Days - Estimated (A/7.5) 51957 HQ- GWE Kitione Baleilodoni JT754 KG701 Filive T. Samuela Lacanivalu LB579 Viliame Seseni LN381 Kitione Save LT198 Iona Walisoliso LT811 Sefanaia Ratulele NS214 Veremo Levani TL694 Saiasi Sarau Total Overtime Paid to HQ-GWEs 06/13 07/13 17/13 30/13 06/13 07/13 09/13 14/13 46/13 06/13 07/13 06/13 07/13 06/13 07/13 20/13 21/13 06/13 07/13 29/13 06/13 17/13 23/13 26/13 06/ - - - 44 14 18 18 10 14 - - - - - - - - - - - - - - - - 271 48 59 - 73 17 - - - 213 31 271 34 239 32 14 18 294 31 - 210 6 21 24 258 - 50 20 - - - - 20 14 - 26 - 26 - 23.75 7 3 - 26 28 - 25 16 12 - Supporting Documents Sighted Memo for Overtime Approval No No No No No No No No No No No No No No No No No No No No No No No No No from Copies Attendance Register attached Verified & No No No No No
 No No No No No No No No No No No No No No No No No No No No Overtime Hours Summary Done No No No No No No No No No No No No No No No No No No No No No No No No No to Mem o PS for Paym ent Appr oval No No No No No No No No No No No No No No No No No No No No No No No No No to or for Memo PSC MOF Payment Approval Overtime Entry Form Filled by Salaries Clerk Form Auth orize d by SAO No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No Audi t Trail to PV No No No No No No No No No No No No No No No No No No No No No No No No No Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 55 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Depar tment EDP# Name Pay # Rate Norm al Time 44 44 44 44 44 44 44 44 44 44 44 44 176 Exces s Norm al Time - - - - - - - - - - - - 132 - - 35 - 255 - - - - - - - - - Time & Half Doubl e Time Overtime Paid Total Hours Claimed for Overtime (A) Converted to Days - Estimated (A/7.5) 65 85 73 88 167 21 76 28 29 - 38 44 19 91 48 - 152 - 111 154 224 44 161 101 113 103 74 82 29 7 27 - 7 15 8 14 - 16 14 13 - - - - - - - - 15 - 11 - - - Supporting Documents Sighted Memo for Overtime Approval No No No No No No No No No No No No No No No No No No No No No No No No No No No Copies Attendance Register attached Verified from & No No No No No No No No No No No No No No No No No No No No No No No No No No No Overtime Hours Summary Done No No No No No No No No No No No No No No No No No No No No No No No No No No No to
 Mem o PS for Paym ent Appr oval No No No No No No No No No No No No No No No No No No No No No No No No No No No to or for Memo PSC MOF Payment Approval Overtime Entry Form Filled by Salaries Clerk Form Auth orize d by SAO No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No Audi t Trail to PV No No No No No No No No No No No No No No No No No No No No No No No No No No No 61743 CCD- GWE HN688 JQ442 ML997 Joseva Ligadua Mataki Sefanaia S. Ilaitia Tunavava Nemani Tuitaunovo NR847 QU396 Misiwaini Ravuca Peni H. 01/13 10/13 16/13 18/13 02/13 01/13 18/13 13/13 18/13 29/13 13/13 18/13 16/13 4.35 4.35 4.35 4.35 4.36 4.36 4.36 4.33 4.33 4.33 4.36 4.36 4.35 Total Overtime Paid to CCD-GWEs CND- GWE 21188 GW607 LV578 MD962 QA408 TD190 Uraia L. Timoci Laladidi Qionibaravi Ravunidakai Iliesa M. Iowane R. Lorima Vueta UV568 Deo Dutt VF823 VP230 Jo N. Birendra Prasad 16/13 16/13 43/13 16/13 33/13 16/13 16/13 16/13 40/13 16/13 40/13 16/13 16/13 40/13 4.18 4.33 4.33 4.33 4.33 4.33 4.18 4.33 4.33 4.33 4.33 4.53 4.22 4.22 44 44 79 44 299 44 44 44 44 44 44 44 44 44 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 56 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Depar tment EDP# Name Pay # Rate Norm al Time 44 44 44 44 44 44 62 176 62 62 62 118 Exces s Norm al Time - - - - - - 18 132 18 18 18 74 Time & Half Doubl e Time Overtime Paid Total Hours Claimed for Overtime (A) Converted to Days - Estimated (A/7.5) 55 27 174 108 89 162 - - - - - - - 4 - 62 - - - - - - - - Supporting Documents Sighted Memo for Overtime Approval No No No No No No No No No No No No Copies
 Attendance Register attached Verified from & No No No No No No No No No No No No Overtime Hours Summary Done No No No No No No No No No No No No to Mem o PS for Paym ent Appr oval No No No No No No No No No No No No to or for Memo PSC MOF Payment Approval Overtime Entry Form Filled by Salaries Clerk Form Auth orize d by SAO No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No Audi t Trail to PV No No No No No No No No No No No No WR625 WU079 YH134 YQ543 Rohit Ritesh Kumar Tula Raj Naidu Unisi Telei Nemani Qoli 16/13 40/13 16/13 40/13 16/13 16/13 4.22 4.22 4.33 4.33 4.22 4.22 Total Overtime Paid to CND-GWEs HS408 Savenaca Ratubuli CWD - GWE OK822 Kirisitiana Sucuduadua 07/13 30/13 31/13 07/13 31/13 49/13 4.24 4.24 4.24 4.24 4.24 4.24 Total Overtime Paid to CWD-GWEs Total Overtime Paid to GWEs Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 57 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 17.4: Topyard Store at Walubay Figure 17.1: Damaged and Obsolete Materials on the Yard Broken Block Pieces Torn 10,000 Litres Water Tanks Worn out sacks for sands and gravels Broken Block Pieces Torn 10,000 Litres Water Unaccounted sands and gravel slowly depleted during Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 58 Torn 10,000 Litres Water Tanks REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.2: Unaccounted Materials on the Yard Aluminium Fence Iron Rods Concrete Sinks Concrete Blocks Sand and Gravels PVC Pipes Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 59 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.3: Materials Declared Unserviceable in the Storehouse Hardened Cement Hardened Cement Powder Wheel
 Barrows Tiles Sink Basin & Toilet Screws, Nuts and Bolts Ready Made Glass Windows & Others Sink and Ready Made Glass Doors Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 60 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.4: 2011 TC Tomas Rehabilitation Materials Steel Rods Aluminium Window Frames Louver Blades Pink Primer Paints Galvanized Nails Strapping PVC Joints Water Tanks Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 61 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.5: 2011 TC Tomas Rehabilitation Materials Worn Out Due to Improper Storage Facility Figure 17.6: 2009 “Vakatawa” Residence Materials Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 62 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 17.5: Project Physical Status Upon Site Visit Figure 17.7: Cuvu Health Centre Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 63 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.8: Assistant District Officer (ADO) - Korolevu Government Station Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 64 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.9: Keiyasi Health Centre Keiyasi Health Centre was completed as at site visit 07/02/14 but with 2 major defects as shown in the above pictures; 1.
The 2 wards have no electricity power points.

This is an essential device to supply electricity to run the machines but unfortunately it was not included in the building plan.

2.

The septic tank socket was not complete resulting in waste spilt as evidence in the above pictures.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 65 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Figure 17.10: Mare Access Road Mare Access Road is about 7km in length and was allocated $100,000 for its upgrading.

Upon site visit on 01/02/14, the audit noted that work was unsatisfactory due to limited fund as advised by the District Officer Nadarivatu.
Several defects were noted as evidenced in the above pictures as per observation noted below: 1.

There was no gravel as only soap stone were used to cover the newly constructed road; 2.

Poor drainage system; 3.

Damaged Iris Crossing not repaired as vehicles tend to cross the river.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 66 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 17.6: TC Evans Housing Rehabilitation Materials Not Received Table 17.46: Materials Received and Not Received by Apisalome Talei 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.
Materials 3 Tr Pine Post 3.0x100 H4 20mtr NZ Radiata Pine Tr Framing RS H3 CCA TW 100x50 5.10 mtr Tr Pine 150x50 14mtr Tr Pine 250x25 6 sheets 14’Zincalume Corr R/Iron 0.42mm BMT 106.75 mtr Trimdek Colorbond Roofing Iron 26g-mtr 1 kg Galv Clout Nails (1 ½ inchx3.15mmx1kg) 705 Roofing Screw Type 17 (14x65) complete 1 Coil Builders Strapping (25mmx27mtrs) 2 Marley Right Hand Stop End MS4 2 Marley Left Hand Stop End MS3 1 Gallon 4litre No Frill Enamel Pink Primer 1 Gallon 4litre No Frill Enamel Under Coat 1 Gallon 4litre No Frill High Gloss White 97 Pryda Knuckle Nail plate 76mm x 127mm MP4R10 49 Pryda Knuckle Nail plate 76mm x 190mm MP6R10 12 length Marley Storm Cloud Guttering (2.9mtrs) MS1.2.9.E 2 length Down Pipe (80mmx5.6mtrs) 30 mtrs NZ Radiata Pine Tr Framing RS H3 CCA TW 75X50 5.10 mtr Tr Pine 250x25 1 Galaxy Crown Paint Brush 628 (4 inch) 11-18 30 Marley Gutter Brackets MS2 156 mtr Tr Pine 100x25 36mtr Flooring Pine 100x25 Tr H3 KD TOTAL Amount ($) 107.82 110.00 40.39 99.82 277.20 1,704.00 7.09 387.75 22.80 2.20 2.20 29.00 29.00 33.71 242.50 131.81 284.40 40.78 130.50 36.36 3.50 30.00 475.80 103.68 4,332.31 Received √ √ √ √ √ X X √ √ X X √ √ √ X X X X √ X √ X X X √  Total Material Value Received: $1,271 X  Total Material Value Not Received: $3,061 Table 17.47: Materials Received and Not Received by Arun Reddy Materials 25.
26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

39.

40.
4 Fiji Pine Post (2.4x125) 119 mtrs NZ Radiata Pine Tr Framing RS H3 CCA 100x50 (4x2) 45 mtr Tr Pine 100x25 25 mtr Tr Pine 250x25 Utility Pine Weatherboard (150x25) 5 Sheet Zinc Corr Roofing Iron (29’x26g) 106.75 mtr Colorbond Trimdek Roofing Iron 26g 2 kg Jolt Head Galv Nails (6 inchx5.60mmx1kg) 4 kg Jolt Head Galv Nails (4 inchx4.50mmx1kg) 3 kg Jolt Head Galv Nails (3 inchx3.75mmx1kg) 4 kg Jolt Head Galv Nails (2 inchx2.80mmx1kg) 2 kg Galv Clout Nails (1 ½ inchx3.15mmx1kg) 500 Roofing Screw Type 17 (14x65) Complete 2 Coil Builders Strapping (25mmx27mtrs) Clear Louvre Glass (24 inch x 6 inch x 5mm) Interior Ply Board (2100x900x35mm) Amount ($) Received 143.76 632.74 137.25 178.25 1,281.58 507.50 1,704.00 10.78 17.52 13.14 17.52 14.18 250.00 45.60 123.00 137.20 √ √ √ √ √ √ X √ √ √ √ √ √ √ √ X Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 67 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Materials 41.
42.

43.

44.

45.

46.

47.

48.

49.

50.
3 Gallon No Frill Enamel Pink Primer (4ltrs) 3 Gallon No Frill Enamel Under Coat (4ltrs) 3 Gallon Ezi Cover H/gloss B/base (4ltrs) 4 Sheet 9’ Zincalume Corr R/Iron 0.42mm BMT 53 mtr NZ Radiata Pine Tr Framing RS H3 CCA TW 100x50 14 Pair Winlok Double Alum L/Frame (8 Blades) 2 Galaxy Crown Paint Brush 628 (4 inch) 11-18 2 Galaxy Crown Paint Brush 628 (2 inch) 11-15 1 Set Galaxy Roller Tray Kit Set (9 Inch) 11-25 2 Can Metal Antirust Primer Red (1ltr) TOTAL √  Total Material Value Received: $4,466 X Total Material Value Not Received: $1,841 Amount ($) 88.50 88.50 198.00 108.00 291.50 268.10 7.00 3.00 8.50 31.80 6,306.92 Received √ - 2 received √ √ √ √ √ √ - 1 received √ - 1 received √ √ Table 17.48: Materials Received and Not Received by Kamal Krishna Goundar Materials 51.
52.

53.

54.

55.

56.

57.

58.

59.

60.

61.

62.

63.

64.

65.

66.
45 mtr Tr Pine 50mmx50mm 9 Sheet Interior Ply Board (2440x1220x4.5mm) Okume 5 Sheet 10’Zincalume Corr R/Iron 0.42mm BMT 5 Sheet 12’Zincalume Corr R/Iron 0.42mm BMT 11 Sheet 16’Zincalume Corr R/Iron 0.42mm BMT 18 Sheet 12’Zincalume Corr R/Iron 0.42mm BMT 4 kg Jolt Head Galv Nails (4 inch x 4.50mm x 1kg) 3 kg Jolt Head Galv Nails (3 inch x 3.75mm x 1kg) 1 kg Jolt Head Galv Nails (2 inch x 2.80mm x 1kg) 2 kg Jolt Head Galv Nails (1 ½ inch x 2.00mm x 1kg) 705 Roofing Screw Type 17 (14x65) Complete 1 Coil Builders Strapping (25mmx27mtrs) 3 Can Metalprep Antirust Primer Red (1ltr) 40 mtrs NZ Radiata Pine Tr Framing RS H3 CCA TW 75x50 1 kg Flat Head Zinc Panel Pins (1inchx1.6mmx1kg) 1 kg Flat Head Zinc Panel Pins (1inchx1.6mmx1kg) TOTAL √  Total Material Value Received: $1,097 X Total Material Value Not Received: $1,558 Amount ($) Received 118.35 216.90 150.00 180.00 580.80 712.80 18.36 13.77 4.59 12.70 387.75 22.80 47.70 174.00 7.21 7.21 2,654.94 √ X √ √ X X √ √ √ √ √ √ X √ √ √ Table 17.49: Materials Received and Not Received by Laisenia Rasaga Tora Materials 67.
68.

69.

70.

71.

72.

73.

74.

75.

76.
40.20 mtrs NZ Radiata Pine Tr Framing RS H3 CCA TW 100x50 24 mtr Tr Pine 250x25 72 mtr Tr Pine 50mmx50mm 6 Sheet Interior Ply Board (2440x1220x4.5mm) Okume 6 Sheet 13’ Zincalume Corr R/Iron 0.42mm BMT 10 Sheet Zincalume Corr Roofing Iron (26gx21’) 0.42mm BMT 10 Sheet 12’ Zincalume Corr R/Iron 0.42mm BMT 14 Lth Zincalume Standard Flashing Corr 6 Ft 0.50mm (1.8mtr) 1 kg Jolt Head Galv Nails (6inchx5.60mmx1kg) 1 kg Jolt Head Galv Nails (4inchx4.50mmx1kg) Amount ($) Received 221.10 171.12 189.36 144.60 249.60 672.00 384.00 81.62 5.90 4.59 X X X X X X √ X X X Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 68 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Materials 77.
78.

79.

80.

81.

82.

83.

84.

85.

86.

87.

88.
550 Roofing Screw Type 17 (14x65) Complete 1 Coil Builders Strapping (25mmx27mtrs) 30 Clear Louvre Glass (24inchx6inchx5mm) 1 Gallon No Frill Enamel Mission Brown (4ltrs) 6 Lth Marley Storm Cloud Guttering (2.9mtrs) MS1.2.9.E 32 mtr NZ Radiata Pine Tr Framing RS H3 CCA TW 75x50 36 Marley Gutter Brackets MS2 5 Marley Plain Joiners MS5 2 Marley Right Hand Stop End MS4 2 Marley Left Hand Stop End MS3 20 mtr Tr Pine 200x25 3 Pair Winlok Double Alum L/Frame (8 Blades) TOTAL √  Total Material Value Received: $837 X Total Material Value Not Received: $2,186 Amount ($) Received 302.50 22.80 36.90 35.42 142.20 139.20 36.00 7.20 2.20 2.20 115.00 57.45 3,022.96 √ X X √ X X X X X X √ X Table 17.50: Materials Received and Not Received by Mere Mara Materials 89.
90.

91.

92.

93.

94.

95.

96.

97.

98.

99.

100.

101.

102.

103.
9 mtr Tr Pine 200x25 319 mtr Trimdek Colorbond Roofing Iron 26g-mtr 20 sheet 11’ Zincalume Corr R/Iron 0.42mm BMT @ 35.20 2 sheet 17’ Zincalume Corr R/Iron 0.42mm BMT@ 54.40 1 Zincalume Ridge Cap Plain 6 ft 0.50mm (1.8mtr 3 Zincalume Standard Flashing Corr 6 Ft 0.50mm (1.8mtr) 2 kg Jolt Head Galv Nails (4 inchx4.50mmx1kg) 2 kg Jolt Head Galv Nails (3 inchx.3.75mmx1kg) 1 kg Galv Clout Nails (1 ½ inchx3.15mmx1kg) 500 Roofing Screw Type 17 (14x65) Complete @ 0.60 - (Estimated receive 70) 1 coil builders strapping (25mmx27mtrs) 1 gallon No Frill Enamel Pink Primer (4ltrs) 1 gallon No Frill Enamel Under Coat (4ltrs) 9 gallon No Frill Enamel Mission Brown (4ltrs) 18mtrs NZ Radiata Pine Tr Framing RS H3 CCA TW 75x50 TOTAL Amount ($) 51.75 5,423.00 Received √ X 704.00 √ -only 3 received 108.80 11.04 17.49 9.00 9.00 6.50 300.00 22.80 29.55 29.55 318.78 78.30 7,119.56 √ √ √ √ √ √ √ √ √ √ X √ √  Total Material Value Received: $521 X Total Material Value Not Received: $6,598 Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 69 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 17.7: Tropical Cyclone (TC) Evans Victim Not Assisted Figure 17.11: TC Evans Victims Not Assisted – Jardishwar Prasad Sabra Bi – Jadishwar Prasad’s Wife Upon site visit on 31/01/14, the audit noted that Jadishwar Prasad’s house was leaking all over the place.
This had resulted from the damaged roof caused by Cyclone Evans.

For temporary measure they have placed the damaged roof back by tying it with ropes.

This however is not secured and the damaged roofs continue to leak in rainy days.

Mr. Prasad went and seek assistance from Commissioner Western Division but no help has been given till to date.
Ministry of Rural and Maritime Development and National Disaster Management Section 17: Page 70 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 18 Fiji Military Forces Role and Responsibilities The Fiji Military Forces is charged with, and responsible for, the defense and state security of Fiji in the maintenance of law and order in land and sea and maritime surveillance of Fiji’s maritime zone.
It also provides forces to international peacekeeping operations in line with Government foreign policy on world peace, improves the living standards of rural community through infrastructure development and youth training of life skills provided by the Engineering Corp.

It also provides coast radio station to all vessels within Fiji waters – as required under the International law of sea and provides shipping services to maritime zone and survey and charting of Fiji waters.
Table of Contents 18.1 18.2 18.3 18.4 PART B: 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.17 18.18 18.19 PART A: FINANCIAL STATEMENTS ................................................................................................................................. 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 2 Appropriation Statement ....................................................................................................................................... 3 Consolidated Trading and Manufacturing Account ............................................................................................... 4 AUDIT FINDINGS ................................................................................................................................................. 5 Expenditure Ledger Not Maintained ...................................................................................................................... 5 Carried–Over Funds .............................................................................................................................................. 6 RFMF Engineers Project Fund Account ................................................................................................................ 6 Drawings Account ................................................................................................................................................. 8 Revolving Fund Account ....................................................................................................................................... 8 Overdrawn Trust Fund Accounts .......................................................................................................................... 9 Delays in Lodgement of Revenue to the Bank .................................................................................................... 11 TMA Plant Pool ................................................................................................................................................... 12 Anomalies in Capital Projects ............................................................................................................................. 13 Upgrading of Sukanaivalu Barracks .................................................................................................................... 16 Life Expectancy Programme ............................................................................................................................... 18 Overpayment of Capital Works ........................................................................................................................... 21 Excessive Annual Leave ..................................................................................................................................... 22 Anomalies in Payment of Lodging and Location Allowances .............................................................................. 23 ........................................................................................................................................................ 25 Appendix 18.1: Overpaid Location Allowance .................................................................................................................... 25 Appendix 18.2: Overpaid Location Allowance .................................................................................................................... 31 Appendix 18.3: Overpaid Location Allowances .................................................................................................................. 33 APPENDICES PART A: FINANCIAL STATEMENTS 18.1 Audit Opinion The audit of the 2013 accounts of the Fiji Military Forces resulted in the issue of a qualified audit report.
The issues qualified are as follows:  The Force did not include the RFMF Engineers Project Fund Account in its Agency Financial Statements for the year ended 31 December 2013.

This account is also not recorded in the general ledger.

In addition, the Force did not prepare bank reconciliations for the account with a cash at bank balance of $2.6 million as at 31 December 2013 contrary to section 32 (6) of the Finance Instructions 2010.
Fiji Military Forces Section 18: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Force did not prepare bank reconciliations for the Hydrographic Unit Trade and Manufacturing Account bank with a total balance of $114,873 contrary to section 32 (6) of the Finance Instructions 2010.
Management attention was also drawn to the following matters:  The Force did not reconcile the expenditure in the Financial Management Information System (FMIS) general ledger as no expenditure ledger was maintained.

The Force prepared its financial statements from the FMIS general ledger.

 In accordance with Note 2(a) on basis of accounting, total expenditure included a book entry for a budget carry-over of $3.9 million to be spent in 2014.
Consequently, total expenditure for the year ended 31 December 2013 has been overstated by the same amount.

18.2 Statement of Receipts and Expenditure The Force collected revenue totaling $0.3 million and incurred expenditure totaling $126.8 million in 2013.

Refer Table 18.1 below for details.
Table 18.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Agency Revenue TOTAL REVENUE EXPENDITURE Operating Established Staff Government Wage Earners Travel and Communications Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 2012 ($) The decrease in total revenue by 50% compared to 2012 resulted mainly from the decrease in revenue from freight and carriage due to the transfer of the Government Shipping Services to the Ministry of Works, Transport and Public Utilities in 2013.
Total expenditure increased by $20.8 million or 20% in 2013 compared to 2012.

Changes in expenditure for 2013 include the following:  The Established Staff costs increased by $10.4 million or 12% in 2013 mainly due to the payment of location allowance, service allowance and lodging allowance for troops deployed to Golan Heights.
Fiji Military Forces Section 18: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Government Wage Earners costs decreased by $1.6 million or 83% in 2013 due to the transfer of Government Shipping Services to the Ministry of Works, Transport and Public Utilities.
 The Travel and Communication costs increased by $0.12 or 10% in 2013 due to the increase in payment of subsistence allowance, travel charges and payment of daily allowance to officers undertaking overseas training.

 The Maintenance and Operation costs decreased by $3 million or 46% in 2013 due to expenses associated with ship maintenance removed on the transfer of Government Shipping Services to the Ministry of Works, Transport and Public Utilities.
 The Purchase of Goods and Services costs increased by $0.95 million or 23% in 2013 due to expenses associated with preparing troops deployed to Golan Heights.

 The Operating Grants and Transfers costs decreased by $0.74 million or 100% in 2013 due to the transfer of the shipping franchise grant to the Ministry of Works, Transport and Public Utilities.

 Special expenditure increased by $12.6 million due to the inclusion of budget allocated for the deployment of troops to the Golan Heights.
The amount included a budget carry-over of $2 million for the peacekeeping mission in 2014.

 Capital construction increased by $1.4 million or 97% compared to 2013 due to the inclusion of new capital projects undertaken in 2013, which included the upgrading of the Sukanaivalu Barracks, Logistics Support Unit and other infrastructure and amenities.

The expenditure also included a budget carry-over of $1 million for the Kula Petrol Boat Life Extension Programme.
 Capital purchases increased by $0.4 million or 180% compared to 2012 due to procurement of new hydrographic equipment, kitchen equipment and computers.

The expenditure also included a budget carry-over of $0.2 million for purchases of additional hydrographic equipment in 2014.

 VAT expenditure included a book entry for a budget carry-over of $0.51 million to be spent in 2014.
18.3 Appropriation Statement The Force incurred expenditure totaling $126.8 million against the budget of $133.1 million resulting in savings of $6.3 million.

Details of expenditure against the budget estimates are provided in Table 18.2.
Table 18.2: Appropriation Statement for 2013 SEG Item Budget Estimate ($) Changes ($) Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax 87,549,505 228,970 1,129,255 3,781,208 5,711,634 0 1,209,500 99,610,072 9,726,703 101,382 204,690 239,918 (59,108) 0 13,229,591 23,443,176 97,276,208 330,352 1,333,945 4,021,126 5,652,526 0 14,439,091 123,053,248 96,844,041 334,139 1,305,826 3,597,332 5,167,163 0 13,389,831 120,638,332 3,550,000 1,190,000 4,740,000 2,485,800 (312,861) (509,817) (822,678) 3,651,824 3,237,139 680,183 3,917,322 6,137,624 2,847,440 674,107 3,521,547 2,687,153 432,167 (3,787) 28,119 423,794 485,363 0 1,049,260 2,414,916 389,699 6,076 395,775 3,450,471 Fiji Military Forces Section 18: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ SEG Item TOTAL EXPENDITURE Budget Estimate ($) 106,835,872 Changes ($) 26,272,322 Revised Estimate ($) 133,108,194 Actual Expenditure ($) 126,847,032 Lapsed Appropriation ($) 6,261,162 In 2013, Cabinet approved the redeployment of $0.9 million from the Force’s budget and $27.2 million from the budget of other Ministries and Departments to the Force.
18.4 Consolidated Trading and Manufacturing Account Table 18.3: Manufacturing Account Manufacturing Account Opening Raw Material Add: Purchases Less: Closing Raw Materials Raw Material Used Add: Direct Labour Cost of Goods Manufactured transferred to Trading Account Table 18.4: Trading Account Trading Account Sales Opening Finished Goods Add: Cost of Manufactured Goods Less: Closing Finished Goods Cost of Goods Sold Gross Profit/(Loss) transferred to Profit & Loss Statement Table 18.5: Profit & Loss Statement Profit and Loss Statement Income Gross Profit transferred from Trading A/C Other Income Total Income Expenses Travel & Communication Maintenance & Operation Other Expenses Special Expenses VAT Total Expense Net Profit/(Loss) 2013 ($) 2012 ($) 5,950 0 5,387 563 42,488 43,051 2013 ($) 1,663,809 12,322 43,051 8,062 47,311 1,616,498 5,950 0 5,950 0 16,137 16,137 2012 ($) 1,729,863 9,552 16,137 12,322 13,367 1,716,496 2013 ($) 2012 ($) 1,616,498 0 1,616,498 0 882,431 638,854 135 0 1,521,420 95,078 1,716,495 3,940 1,720,435 89,039 803,013 384,180 3,140 0 1,279,372 441,063 Fiji Military Forces Section 18: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 18.6: Balance Sheet Balance Sheet Assets Cash at Bank Accounts Receivable Inventory Total Assets Liability VAT on Revenue Accrued Expenses Total Liability Equity TMA Accumulated Surplus TMA Surplus Total Equity Total Equity and Liability 2013 ($) 2012 ($) 531,745 289 13,449 545,483 (78,299) 100,000 21,701 745,631 (221,849) 523,782 545,483 1,169,500 289 18,272 1,188,061 63,376 546,126 609,502 650,553 (71,994) 578,559 1,188,061 PART B: AUDIT FINDINGS 18.5 Expenditure Ledger Not Maintained All payments, including VAT, must be immediately recorded in the Financial Management Information System (FMIS) and an Expenditure Ledger.1 A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.2 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.3 The audit noted that the Force did not maintain an expenditure ledger for 2013.
As a result, the Force could not reconcile the expenditure in the FMIS general ledger maintained by the Ministry of Finance.

The audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Force should maintain an expenditure ledger and reconcile it with the FMIS general ledger on a monthly basis.

Management Comment OAG findings and recommendations are acknowledged.
The Commitment and Expenditure Ledgers are kept by the RFMF Cost Centres and are maintained by the unit’s purchasing serving personal.

They are responsible for the updating and reconciling with FMIS on monthly basis and the regular clearance of liabilities.
1 Finance Instructions 2010 - Section 15 2 RFMF Finance Manual 2011 –Section 6.3.1 3 RFMF Finance Manual 2011 – Section 16.3.2 Fiji Military Forces Section 18: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 18.6 Carried–Over Funds If an amount appropriated by an Annual Appropriation Act for a financial year has not been used in that financial year; or is unlikely to be used in that financial year, the Minister may authorise the carry- over to the following year of all or part of the unused appropriation that relates to known liabilities as at a particular date, and the amount authorised for carry-over may be used accordingly in that following year, subject to such conditions as the Minister specifies in the authorisation.4 The amount authorised for carry-over under subsection (1), reduced if and as required under subsection (2), is appropriated for the year in which it is used, without further appropriation than this Act.5 A sum of $3,900,342 was approved by the Ministry of Finance as carry-over funds to be utilized in 2014 for the purpose shown in Table 18.7 below.
Table 18.7: Carried – Over Funds Allocation Description Golan Heights Amount ($) 2,067,615.00 1-19101-19999- 079938 1-19105-19999- 080132 1-19101-19999- 090133 1-19105-19999- 130101 1-19101-19999- 130101 Total Kula Patrol Boat Life Extension Programme 1,058,894.63 Procurement of Hydrographic Equipment 265,091.51 Value Added Tax Value Added Tax 198,599.09 310,142.25 3,900,342.48 The audit noted that the amount was disclosed in the general ledger (FMIS) and the Agency Financial Statement as actual expenditure incurred for the year ended 31 December 2013.
As a consequence, the total expenditure for the Force was overstated by $3,900,342.

Recommendation The FMF should ensure that it complies with the Financial Management Act and the Carry over Policy with regards to carry over funds.

Management Comment Comments are noted.

Application for carry-over of funds was approved by the Ministry of Finance.
18.7 RFMF Engineers Project Fund Account A bank account for public money, other money or trust money must only be established with the approval of the Chief Accountant, who must inform the bank of the agency officers authorised to 4 Financial Management Act 2004 – Section 19(1) 5 Financial Management Act 2004 – Section 19(3) Fiji Military Forces Section 18: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ operate on it.6 All bank accounts must be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by the responsible officer.7 A sum of $2.6 million is held in a bank account with the Bank of South Pacific (BSP) under the RFMF Engineers Project Fund Account8 as at 31 December 2013.

These are funds received from Ministries/Departments for capital works to be undertaken by the RFMF engineers.
Refer Table 18.8 for details of balance held over the four year period: Table 18.8: Cash at Bank Balances – RFMF Engineers Project Fund Account Year Ended 2013 2012 2011 2010 2009 Amount ($) 2,586,603 3,605,420 1,922,049 No bank statement 44,045 The audit noted the following anomalies:  There was no evidence provided during the audit to indicate that approval was sought from the Ministry of Finance for the operation of the account;  The bank reconciliation was not performed contrary to section 32 (6) of Finance Instructions 2010;  The general ledger account was not created for the operation of the fund to record its revenues, expenditures, assets and liabilities;  Annual Agency Financial Statement submitted for audit did not include the receipts and payments for the RFMF Engineers Project Fund.
Proper records were not maintained for the funds as the fund was administered and maintained separately by the engineers (army personnel) who lack accounting knowledge and practices.

Recommendations  The Principal Account Officer should access and maintain the records of the RFMF Engineers Project Fund to ensure proper documentation, reporting and accountability.
 The Principal Accounts Officer should provide the authority for the operation of the bank account and liaise with the Ministry of Finance to establish a general ledger account in the FMIS.

 The Principal Accounts Officer should ensure that monthly bank reconciliations are carried out.

Management Comment OAG findings and recommendations are noted.
The Force is in the process of formalising the operation of this private bank account with the Ministry of Finance and the Officers concerned have been advised accordingly to prepare monthly bank reconciliation and submitted to PAO for verifications and monitoring of funds (Annexure 2).
6 Finance Instruction 2010 – Section 32 (1) 7 Finance Instruction 2010 – Section 32 (6) 8 BSP Bank Account Number 6652519 Fiji Military Forces Section 18: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 18.8 Drawings Account The Manager Finance is responsible for the safekeeping and proper maintenance of all accounting records or documents.9 Agencies are required to prepare monthly reconciliations to address the differences between the department records and the government ledger.10 The audit noted the following anomalies in the drawings account reconciliation:  An un-reconciled variance of $31,557 was noted between the December reconciliation statement prepared by the Force ($2,139,824.87) and the general ledger balance ($2,171,381.79).
 Reconciliation was not carried out on a monthly basis.

Instead, a three months reconciliation was prepared for the months of February, March and April and 2 months reconciliation were prepared for September to October and another for the months of November to December.

 Stale cheques totalled $5,134 as at 31 December 2013.

In spite of the anomalies, the drawings account reconciliations have been certified by the Principal Accounts Officer and Chief of Staff.
The above indicate lack of care and due diligence exercised to reconcile account balances for the year.

Monthly reconciliations are important to identify errors early for immediate actions and a form of monitoring Recommendation The Principal Accounts and Chief of Staff should ensure that all account reconciliations are checked thoroughly and variances noted are rectified accordingly.

Management Comment The Force acknowledges the findings and recommendation.
In December 2013 the Ministry of Finance introduced a new format for the Drawings Reconciliation statement thus the Force was required to redo the reconciliations from January 2013.

Due to the short period with which to comply with the timelines given by the MOF for the closure of 2013 accounts, the Force had to consolidate its monthly reconciliation statement.

Reconciliations and clearance of stale cheques will be conducted on monthly basis in 2014.
All care and diligence was taken by RFMF management when certifying the drawings account reconciliation as the amount $2,139,824.87 reflects the UP listing which is reconciled against SI Report dated 19 March 2014.

The variance reported above is due to audit adjustments made after closing of accounts.

RFMF will submit an updated reconciliation.
18.9 Revolving Fund Account The Accounting Head is responsible for the safekeeping and proper maintenance of all accounting records or documents.11Within 3 days of receiving the monthly general ledgers reports from the Ministry of Finance, the Accounts Officer shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.12Travel advances must be recouped within 7 days of the completion of travel by submission of a voucher with documents to support the claim.13 9 Force Finance Manual 2011 – Section 18.1.3 10 Finance Circular 20/2007 11 Finance Manual – Part 18: Miscellaneous – Section 18.1.3 12 Finance Manual 2011 –Section 16.3.3 13 Finance Instructions 2010 – Section 44, subsection 3.
Fiji Military Forces Section 18: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The audit noted the advance account had a credit balance of $403,951 which had been carried forward from previous years.

No action had been done by the accounting officers to clear this credit balance.

The non-clearance of balances from RFA account overstates the account balance of the Ministry.
Recommendation The Accounting Head should ensure that credit balance is adjusted in consultation with Ministry of Finance.

Management Comment OAG findings and recommendations are acknowledged.

The Force in consultation with MOF will reconcile and make adjustments of the credit balance of $403,951as recommended.

18.10 Overdrawn Trust Fund Accounts Trust Fund Accounts compromise monies, which are not the property of the state and not utilized for the purpose of government.
In addition, Trust money is to be accounted for separately from public money and other money,14 and by convention should always have credit balances.

Thus, the trust fund accounts should not at any time be overdrawn.15 The Force Operating Trust Fund Accounts had overdrawn balances totaling $6,004,162 as at 31 December 2013 compared to $5,784,111 in 2012.

Refer to Table 18.9 below for details.
Table 18.9: Overdrawn Operating Trust Fund Accounts Account Description 1-19101-19999-861104 1-19101-19999-861105 1-19101-19999-861106 1-19101-19999-861202 1-19101-19999-861204 1-19101-19999-861207 1-19101-19999-861299 1-19101-19999-861306 1-19101-19999-861308 1-19101-19999-861401 1-19101-19999-861402 1-19101-19999-861511 1-19101-19999-861514 1-19101-19999-861520 1-19101-19999-861525 1-19101-19999-861532 1-19101-19999-861534 1-19101-19999-861535 1-19101-19999-861599 1-19101-19999-861601 1-19101-19999-861602 208 PD RENT H/A UNEST 267 PD RENT PUBLIC RENTAL BRD 390 PD GOV WATER RATES CHRGS 241 PD CMLA 244 PD-LICI 247 PD BLUE SHIELD XXX PD OTHERS 263 PD HOUSING AUTHORITY 266 PD FDB HOUSING 068/211 PD RENT REFUND 203PD RENT ARREARS 301 PD FPS CREDIT UNION 304 PD FIJI NURSING & ASS.
CU 311 PD SAVUSAVU CREDIT UNION 316 PD SERVICE WORKER CU YYY PD PUBLIC EMPLOYEE UNION 254 PD UNITY INSURANCE- FTU DOMINION FINANCE LIMITED XXX PD OTHERS0 341 PD MAINT-SUVA 342 PD MAINT-NAUSORI 2013 ($) 0 0 0 67,118.67 99,109.15 0 365,748.08 12,887.08 0 0 10.91 0 0 0 0 226.20 0 0 1,003,271.40 14,427.94 0 2012 ($) 2,260.49 1,554.35 11,158.81 66,815.62 101,346.99 183.42 365,461.01 12,902.08 23,985.10 78,819.02 0 12,978.37 1,295.00 439.20 62.95 211.20 15.00 2,215.75 1,004,006.40 14,473.44 302.30 14 Financial Management Act 2004 – Section 25 (1) 15 Finance Circular No.
4/98 of 30/03/98 Fiji Military Forces Section 18: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Account Description 1-19101-19999-861605 1-19101-19999-861606 1-19101-19999-861607 1-19101-19999-861608 1-19101-19999-861609 1-19101-19999-861610 1-19101-19999-861614 1-19101-19999-861701 1-19101-19999-861702 1-19101-19999-861706 1-19101-19999-861707 1-19101-19999-861716 1-19101-19999-861799 1-19101-19999-861801 1-19101-19999-861901 1-19101-19999-861902 1-19101-19999-861906 1-19101-19999-861911 1-19101-19999-861913 1-19101-19999-861915 1-19101-19999-861920 1-19101-19999-861924 1-19101-19999-861999 1-19101-19999-863201 Total 345 PD MAINT-BA 346 PD MAINT-LAUTOKA 347 PD MAINT-NADI 348 PD MAINT-SIGATOKA 349 PD MAINT-LABASA 350 PD MAINT-LEVUKA 355 PD MAINT-SUVA DOMESTIC 357 PD RATES-SUVA 364 PD RATES-NAUSORI 361 PD RATES-LAUTOKA 360 PD RATES-NADI XXX PD RATES-NASINU XXX PD RATES-OTHER 410 PD RENT SPECIAL GRADE 201 PD TAX ARREARS / PAYE 204 PD DEPST A/C RECOVERABLE 335 PC CAMV 385 PD SPORTS & SOCIAL 387 PD RFA IDC SALARIES 400 PD FINES & TREASURY 501 P D EMPLOYEES FNPF MPAISA YYY PAYROLL DEDUCTION MISCEL VAT ON REVENUE 2013 ($) 424.00 0 0 0 0 0 0 4,892.46 0 0 0 2,659.38 0 0 371,565.83 10,063.00 3.13 0 0 18.78 3,866,658.08 314.74 171,989.88 12,773.49 6,004,162.2 2012 ($) 324.00 1,474.00 400.00 325.00 693.00 60.00 60.00 6,554.96 808.31 24.99 38.00 35,049.38 1,194.88 2,387.78 360,086.14 2,338.00 0 5,832.85 62,473.63 0 3,451,005.64 0 150,563.51 1,930.02 5,784,110.59 Most of the overdrawn balances were brought forward from previous years and could be due to mis- postings made to the account.
Recommendations  The Accounting Head should ensure that the Trust Funds are not overdrawn at any time.

 The Accounting Head should investigate these overdrawn (debit) Trust Funds and take  appropriate action.

Internal Control procedures such as supervisory checks in the Accounts Section should be strengthened to avoid such anomaly.

Management Comment OAG comments and recommendations are noted.
Overdrawn Trust Fund Accounts were carried forward from previous years but with the supervision of the PAO, the Force will streamline and continue to reconcile accounts and make necessary adjustments accordingly.
Fiji Military Forces Section 18: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 18.11 Delays in Lodgement of Revenue to the Bank The Cashier shall bank money received on a daily basis at least.16 If it is not practical to bank money daily i.e.
if banking facilities are not accessible or money received is less than $50, money may be kept overnight, but it must be kept under lock and key in a safe or strong box.17 The following anomalies were noted:  Considerable delays in the lodgement of revenue collected at the hydrographic unit.

Refer to the Table 18.10 for details.

Table 18.10: Delays in Lodgement Revenue Receipt No.
848551 – 848566 848567 – 848571 848577 – 848582 848588, 848592 848593 Date 09/01/13 – 30/01/13 18/02/13 – 19/03/13 29/05/13 – 21/06/13 22/09/13, 13/11/13 29/11/13 Amount ($) 1,392.00 282.00 11,858.65 2,754.00 920.00 Date Deposited 06/02/13 26/03/13 07/03/12 14/11/13 Not deposited as at 09/01/2014 yet  The following receipts were deposited in the consolidated fund account instead of the TMA bank account.
Table 18.11: Receipts Deposited in Consolidated Fund Account Date 06/08/13 03/10/13 21/10/13 30/10/13 Revenue Receipt Number 848587 848589 848590 848591 Amount ($) 108.00 34.00 12.00 1,956.00  The following receipts were not lodged in either the consolidated fund or the TMA bank account.
Table 18.12: Receipts not Lodged Date 26/03/13 26/03/13 10/04/13 30/04/13 16/05/13 Total Revenue Receipt Number 848572 848573 848574 848575 848576 Amount ($) 920.00 54.00 132.00 108.00 17.00 1231.00 Explanation revealed that the receipts were mistakenly deposited into the Navy Sports Fund.

However, the amount is yet to be reimbursed to the TMA bank account.

The bank reconciliation for the TMA account was also not prepared.
16 RFMF Finance Manual – Section 4.4.1 17 RFMF Finance Manual – Section 4.4.6 Fiji Military Forces Section 18: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Government regulations relating to cash received and deposit to the bank were not followed which increases the risk of misappropriation of public funds.

Recommendations  The Director Finance should ensure that all moneys received are banked daily.
 The officer in-charge of the Navy Sports Fund and the negligent revenue collector at the Naval Base should be surcharged for the $1,231 yet to be reimbursed from the Navy Sports Fund account.

Management Comment OAG findings and recommendations are noted.

The Force had completed its Board of Inquiry (BOI) to determine the facts of this case and $1,231 was lodged on the 28 February 2014.
Personnel implicated will be charged under the Military Court Procedures furthermore the Loss Report had been submitted to the MOF on 9th May 2014 (Annexure 3).

In addition the authority to collect government revenues by the Fiji Navy is withdrawn and all revenues are now receipted at the Accounts Section at the Headquarter.

18.12 TMA Plant Pool Each agency operating a trading and manufacturing activity must prepare:18 (a) quarterly profit and loss statement; (b) a balance sheet on an annual basis.
The profit and loss statement and the balance sheet must be prepared on an accrual accounting basis.

The profit and loss statement must include all expenses that relate to the activity, and where necessary, include estimates of:19 (a) overheads met by the department; (b) depreciation of assets; (c) services provided below costs by other agencies; (d) provision for doubtful debts; and (e) provision for inventory to be written off.
The audit noted that the Force did not include the labour cost and the cost of its plant and vehicles in its Trade and Manufacturing Account (TMA) for the year ended 31 December 2013.

A sum of $42,488 was disclosed as Direct Labour in the TMA for Plant Pool.

However, this does not relate to Labour but includes expenditure such as freight cartage for Plants to outer islands, passage for machine operators, accommodation, meals and fuel cost.
The TMA Plant Pool does not provide a true financial position with the exclusion of the cost of plant and vehicles and labour cost from its balance sheet and profit and loss statement.

Recommendation The Force should include all the required financial information in its TMA in order to provide a true position of its financial performance and position of its operation.
18 Finance Instructions 2010 - Section 30 (1) 19 Finance Instructions 2010 – Section 30 (2) Fiji Military Forces Section 18: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comments OAG findings and recommendation is noted.

The Force will liaise with MOF TMA team and FMIS to advise on a new natural account to cater for the administration cost expenses.
The allocation 260201 was actually provided by the MOF because the chart of accounts does not have account description for Administration Cost.

18.13 Anomalies in Capital Projects Permanent Secretaries shall – a.

Be responsible for preparing the Ministry’s or Department’s Annual Procurement Plan outlining the requirements of the agency in terms of the procurement of goods, services and works that must be undertaken in a budget period; b.
Ensure that all procurements in their Ministry or Departments are made with due regard to the guiding principles of procurement outlined in regulation 3; c. Execute and manage all procurement contracts signed on behalf of their Ministry or Department; d. Provide these records on request for the Auditor General for audit purposes or by the Director Fiji Procurement Office for compliance checks.20 Any procurement of goods, services or works shall be issued so as to promote the following principles- a.
Value for money; b. Maximise economy and efficiency and the ethical use of government resources; c. Promote open and fair competition amongst suppliers and contractors; d. Promote the integrity of fairness and public confidence in the procurement process; and e. Achieve accountability and transparency in the procedures relating to procurement.21 Scrutiny of the projects undertaken by the RFMF Engineers section revealed the following anomalies:  The absence of a Memorandum of Understanding between the RMF Engineers unit and the Prime Minister’s Office regarding the Capital projects that was undertaken.
 Considerable delays between the time funds were received to when the project commences.

 Delay in the project completion.

The RFMF undertook various projects for the Prime Minister’s Office in 2013.

A detailed analysis of the anomalies for these capital projects is summarized in Table 18.13 below.
Table 18.13: Anomalies noted for Projects Undertaken by RFMF Engineers Unit Project Name Anomalies Vatukaloko Primary School   There was no Memorandum of Understanding (MOU) signed between the Republic of Fiji Military Forces (RFMF) and the Office of the Prime Minister (PMO) regarding the project.

Funds for the project were received by the RFMF from PMO via receipt number 59 dated 15/12/11 for $27,690.91.

Only $9,734.26 or 35% of the funds have been utilised.
 Physical progress of works done on the ground was only 12% after 1 year from when the funds were received.

20 Procurement Regulations 2010, Part 2(7) 21 Procurement Regulations 2010, Part 1(3) Fiji Military Forces Section 18: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Project Name Anomalies Malawai Footcrossing  A MOU was signed between RFMF and PMO on 15/03/13.
 A sum of $155,960 was given from the Office of the Prime Minister on 10/04/13  for the project.

The MOU states that the works will be undertaken during the 160 days from when the receipt of funding including the procurement process.

Furthermore, the works program under Appendix B of the MOU outlined that the work was to commence from 27/05/13 and finish on 25/12/13.

As at the date of audit no work has commenced on in contradiction to what is stated in the MOU.
There was no MOU signed between the PMO and RFMF for the project.

the project as confirmed by Captain Vulawalu   Purchase Order No.

PO02999-005135 of $32,027.66 was issued by PMs Office on 23/04/13 to Topline Timber Supplies for the supply of building materials to be used in the renovation works.

 Purchase Order No.

PO02999-005136 of $31,654.83 was issued by PMs Office on 23/04/13 to RC Manubhai & Company for the supply of building materials for the construction of teacher’s quarters.
 A total sum of $28,396.48 was received on 29/04/13 by RFMF from PMs Office through cheque numbers 67885 and 67886 to cater for administration, ration and contingency costs of the project.

 Eight months has lapsed from when the funds were received and Purchase Order issued for the project but no work has commenced on the project.

A sum of $ 2,367.92 has already been spent on administration and rations.
 A sum of $23,350.48 was received from PM’s Office on 23/04/13 as administration costs for the upgrading works.

 Purchase order of $78,952.44 was issued on 22/04/13 from the PMs Office to RC Manubhai for supply of the building materials.

 There was no MOU signed between the PMO and the RFMF for the project.

 A sum of $23,600.23 was received from the PMs Office via cheque number 419 on 27/08/13 as administration costs for the construction of the new wooden dormitory.

 Purchase Order No.


PO02999-005382 of $46,961.97 was issued by PMs Office  on 27/08/13.

There was no MOU signed between the RFMF and the PMs Office.

There is no clear agreed timeline and total cost to be incurred for the project with the absence of a MOU.

 As at 30/11/13, no work has commenced and no funds utilised for the project.

 A sum of $40,547 was received from PMs Office on 12/08/13 as administration   costs for the renovation works.
The following purchase order was issued by PMs Office on 12/08/13 for the supply of building materials.

- - - - PO 02999-005356 of $85,330.68 issued to R C Manubhai PO 02999-005357 of $4,597 issued to Carpenters Hardware PO 02999-005358 of $10,580 issued to Frincos Hire PO 02999-005359 of $787.57 issued to Arun’s Furniture & General Hardware There was no MOU signed between the RFMF and the PMs Office for the above project.
The absence of a MOU means there is no agreed timeline and total cost of the project by both the parties.

 A sum of $238,625.23 was received from the PMs Office for the construction of  Beqa/Yanuca secondary school and teacher’s quarters.

There were no completion certificates available for the project even though the project was verbally confirmed as completed by the Officer in charge.
Vunidawa Sanatan Primary School Nabitu Primary School Bemana Catholic Primary School Veisaru Sanatan Primary School Beqa/Yanuca Secondary School Ratu Emeri Primary School  A sum of $6,656.54 was received from the PMs Office on 28/11/12 as administration costs for the construction of footbridge.

Fiji Military Forces Section 18: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Project Name Anomalies  Purchase Order No.
02999-004897 for $12,588 was issued to R C Manubhai for       the supply of building materials.

There was no MOU signed between the RFMF and the PMs Office for the project.

The Officer in charge stated that the work has been completed but there was no completion certificate.

The project includes the construction of an Ablution block together with a 1 x 2 classroom.

The cost of Ablution block and the classroom was $34,775.22 and $65,366.04 respectively.
There was no MOU signed for the construction of the 1 x 2 classroom.

There were no completion certificates available for the project even though they were confirmed to be complete by the officer in charge.

 A sum of $162,069 was provided from the PM’s Office for the upgrading of school facilities.

There was no MOU and no completion certificate for the project.
Tabiang Primary School Rewa District School The absence of MOU and completion certificates indicate the lack of management over projects which may lead to cost overrun and work completed without the planned specifications.

Furthermore, delays in the undertaking of works by the Force indicate the lack of monitoring by management and may also indicate that the Force lacked the manpower to complete the project works within the agreed timeline.
Recommendations  The Force should ensure that a MOU is signed for all projects it carried out.

 The Force should ensure that Completion Certificates are maintained for their records as evidence of the work completed.

 The Force should ensure that works undertaken are done on a timely basis according to the work program and the timeline stated in the Memorandum of Understanding.
 The Force should ensure that it has the necessary manpower to carry out a project prior to accepting it from the PM’s Office.

Management Comment OAG findings and recommendations are acknowledged.

 Memorandum of Understanding (MOU) for PM’s Projects is the responsibility of the PM’s Office and not the Force as reported.
All of PM’s projects undertaken by the RFMF Engineers do not have an MOU because of the understanding from the PM’s office that RFMF Engineers is also a government agency;  The Force have opened a completion report file to keep records of all completed projects however at the completion of every project a completion report and a handover certificate is forwarded to the PM’s office who then schedule an official opening of the completed project;  The RFMF Engineers can only cater for 16 rural projects at any one time therefore pending projects will have to wait the completion of ongoing projects before it can begin the new set of projects.
Works program is normally affected by adverse/bad weather condition which in most cases delays the completion of projects;  The RFMF Engineers prior to accepting any projects advises the clients that we can only commence with the project when we have the manpower to do so and this is normally accepted by the client (PM’s Office).
Fiji Military Forces Section 18: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 18.14 Upgrading of Sukanaivalu Barracks According to the Public Sector Investment Programme 2013, the following capital projects were supposed to be carried out in 2013 with funds allocated in the budget.
Table 18.14: Capital Projects Earmarked for 2013 Original Budget Revised Budget Actual ($) 300,000 ($) 193,632 ($) 178,730 500,000 500,000 448,842 90,000 73,488 48,419 200,000 150,911 107,752 Project Upgrading of Sukanaivalu Barracks Relocation of Nadi 4FIR Building Materials for upgrading of Band room Building Materials for burnt Officer’s married quarters Renovation of Commander RFMF/ Land Force Commander’s office Renovation Operation Conference room Expected Completion Timeline December 2013 December 2013 December 2013 December 2013 December 2013 December 2013 Status as at 31/12/13 No work had been carried out as 31/12 /13.
Work in progress Work in progress No work had been carried out Work in progress Work in progress The audit noted that the following payments totaling $369,422.14 being made from the budget allocation for the upgrading of Sukanaivalu Barracks Mess Hall.
Table 18.15: Payments from Upgrading of Sukanaivalu Barracks Budget Allocation Date 27/12/13 Cheque Number 1499 23/12/13 1498 23/12/13 1462 23/12/13 1467 23/12/13 1469 23/12/13 1471 Particulars Sukanaivalu Barracks Mess Hall – $43,566.20 Payment to Frincos Hire Ltd for the hire of temporary scaffoldings for renovation of married quarters at Queen Elizabeth Barracks.
Married quarters 26 – $11,822 Married quarters 54 – $12,282 Payment to Custombilt Sheetmetal Ltd for the Kitchen accessories for the Sukanaivalu Barracks Mess Hall Payment to Carpenters Hardware for the purchase of building materials for the following: - Operation conference room – $34,291.23 - Married quarters 26 Engineers – $9,213.69 - - Married quarters 54 Engineers – $28,474.27 Payment to Kasabia Ltd for the purchase of building materials for the following: - Married quarters 26 Engineers – $2,380.97 - Payment to Pacific Coatings Ltd for the purchase of roofing paints for the following: - - Married quarters 54 Engineers – $4,150.44 - Married quarters 26 Engineers – $1,574.83 Payment to RC Manubhai for the purchase of building materials for the following: - - Married quarters 54 Engineers – $12,381.36 - Engineers Standby Stores – $2,616.26 - RFMF Band room – $9,768.46 - Outstanding payment – $2,475.20 Sukanaivalu Barracks Mess Hall – $17,117.10 Sukanaivalu Barracks Mess Hall – $44,546.18 Sukanaivalu Barracks Mess Hall – $8,685.49 Amount ($) 24,104.00 41,034.00 115,545.39 46,927.15 14,410.76 44,358.38 Fiji Military Forces Section 18: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date 23/12/13 Cheque Number 1474 Total Particulars Sukanaivalu Barracks Mess Hall – $50,590.75 Payment to Vinod Patel for the purchase of building materials for the following: - - Married quarters 54 Engineers – $16,921.70 - Married quarters 26 Engineers – $15,530.01 Amount ($) 83,042.46 369,422.14 The following anomalies were noted:  Materials purchased were diverted to works other than the upgrading of Sukanaivalu Barracks Mess Hall  Despite the above purchases, no work had been carried out for the projects: - Upgrading of Sukanaivalu Barracks Mess Hall - Upgrading of Married quarters 54 Engineers - Upgrading of Married quarters 26 Engineers  Payments were made prior to the supplying of building materials.
 According to the Public Sector Investment Programme 2013, the construction works for the Sukanaivalu Barracks Mess Hall is to be tendered to private contractors and construction works to be carried out from July to December 2013 and supervised by RFMF Engineers.

However, this was not carried out and the construction work is yet to commence.
 There was lack of manpower to carry out the capital projects earmarked for 2013 as the RFMF Engineer prioritised the projects that was funded by the Office of the Prime Minister.

 No status report was submitted to audit despite request which may indicate that capital projects were not closely monitored by the Force.

 Payments were obviously made to utilise funds before year end without any commitment to carry out the capital works.
Lack of proper planning, control and consultation is evident in the management of the upgrading of Sukanaivalu Barracks Mess Hall as the construction works are still yet to be carried out despite the purchasing of building materials.

There is a risk that materials may be short-supplied or not supplied at all.
Recommendations  The Force should ensure that proper planning and consultation are carried out for projects under the Public Sector Investment Programme to ensure that they are completed within the projected time.

 Payments for purchase of building materials should be made once confirmation that all materials have been received.
 The Force should ensure that it has the required resources and expertise prior to accepting projects from external parties and engaging of private contractors should be considered.

Fiji Military Forces Section 18: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The Force acknowledges the findings and recommendations of the OAG.
 The RFMF Engineers has put measures in place to ensure that proper planning and coordination is done prior to undertaking any Public Sector Investment Programme.
These projects are ongoing and are scheduled to be completed by December 2014;  All the building materials paid for has been delivered and measures have been put in place to ensure the safekeeping of the building materials delivered; and  The Force now has approved panel of private contractors in ensuring that it has the required resources and expertise when accepting projects from external parties.
18.15 Life Expectancy Programme A sum of $2million was allocated in the 2013 budget for the Life Expectancy Programme for the maintenance and upgrading of the naval ship Kikau.

The audit noted that $1,841,165.81 was charged for the above programme in 2013, out of which $1,058,894.63 was rolled over to be utilised in 2014.

The following payments were made in 2013 from the Life Expectancy Programme budget allocation.
Table 18.16: Payments from Life Expectancy Programme Budget Allocation Date 26/11/13 Cheque Number 1163 26/11/13 1172 03/12/13 26/11/13 Indent 10/2013 1174 27/11/13 1185 Contractor Particulars Fiji Ships and Heavy Industries Limited TECAIR & Co. PTY Ltd. Taliscar Trading NZ Purchase of Spare Parts for Kikau Patrol Boat 50% payment on deposit on commencement of work and signing of contract for Kikau Patrol Boat repair works 40% contract payment on repair works on Kikau Patrol Boat Whales Electrical Services Taubmans Paints 75% contract payment for works carried out on Kikau Patrol Boat 50% contract payment for supply of paint for Kikau Patrol Boat Amount ($) 274,573.05 267,756.34 229,905.57 44,643.00 42,960.47 859,838.43 As at 30/06/14, only $212,255.68 has been utilised from the rolled over sum of $1,058,894.63 leaving a balance of $846,638.95.
The following contracts were entered into for the upgrading of Kikau patrol boat in 2013.

Table 18.17: Contracts for Upgrading of Kikau Patrol Boat Contractor Contract Works Terms of Contract Fiji Ships and Heavy Industries Limited TECAIR & Co. PTY Ltd. Taliscar Trading NZ Paintings, removal and installation of engines and equipment.
Communication and Navigation equipment replacement Supply of caterpillar spare parts, Thordon bearings and Naiad inflatable boats 1st November 2013 to 31st January 2014 1st November 2013 to 28th February 2014 As and when ordered Amount ($) 549,146.11 669,390.85 $NZ65,850.00 $NZ18,212.28 $NZ55,058.00 Fiji Military Forces Section 18: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Contractor Contract Works Terms of Contract Whales Electrical Services Taubmans Paints Electrical Works Supply of Paints 1st November 2013 to 31st January 2014 Amount ($) 59,524.00 85,920.94 The audit noted that the contract works for the upgrading of the patrol boat were yet to be completed.
There is a lack of proper planning and monitoring for the upgrading of the patrol boat which has led to the considerable delay in the upgrading works.

Recommendations  The Force should ensure that proper planning is carried out for renovation works under the Life Expectancy Programme so that funds are utilized within the budgeted period.
 Proper monitoring should be carried out on the contract works to ensure that they are completed within the contract terms and conditions and actions should be taken if should there be delays.

Management Comment OAG findings and recommendations are acknowledged.

Navy has been conducting this programme beginning in 2012 for the three (3) vessels RFNS Kula, RFNS Kikau and RFNS Kiro.
As per MOU the major work should have been carried out in Australia thus suspension imposed by government, gave no other options.

The Navy had made a submission in 2011 for the first vessels RFNS Kula with an estimated cost of $4M, this have to be an ongoing programme of works for three (3) year for the three (3) vessels.

In 2012 funding was provided for RFNS Kula with funding of $2M given to complete this project.
The project was supervised by a consultant from Australia who was an expert in conducting these projects.

As materials and consultancy was provided and supplied from Australia and New Zealand and this have consumed times in obtaining this service therefore LEP Programme was delayed.

Supervision was the responsibility of our consultant and in most cases works have to be redone to meet the required standard as local expertise takes time to meet the required standard.
Bad weather conditions also delayed the work programme.

18.16 LPOs Raised after Invoice was Received The Principal Accounts Officer, Senior Accounts Officer and Accounts Officer must not certify a payment as correct unless they are satisfied that: It is in accordance with a purchase order, indent, contract, invoice or other authorisation; There is documentation that the goods, services or works have been received; i. ii.

iii.

Sufficient uncommitted funds are available for payment of the account; iv.
The account is not fraudulent and has not been previously paid and; v. The expenditure account it is charged to be correct.22 Upon receipt of the goods, services or works, the Quarter Master [QM] or OIC shall verify the receipt in good order and that the invoice is in accordance with the PO.23 22 Fiji Military Forces Finance Manual 2011 – Section 2.8.4 Fiji Military Forces Section 18: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Our audit of payment records noted that the Force issued Local Purchase Orders (LPO’s) after invoices have been received from the suppliers.
Refer Table 18.18 below for examples.

Table 18.18: LPO’s Raised after Invoice Were Received Payee Particulars Payment for the supply of food ration for the workmen 26/10/13 Invoice Date LPO Date 20/10/13 Amount ($) 1,519.30 Date 28/11/13 Cheque No.
2122 03/07/13 1865 20/06/13 1853 03/07/13 1860 12/07/13 1885 12/06/13 1884 19/02/13 61653 Freshet International Limited Frincos Hire Fiji Limited Jitendra Kumar Jitendra Kumar Jitendra Kumar Freshet International Limited Singh’s Shopping 20/02/13 61693 Joes Farm 20/02/13 61695 08/03/13 62026 National Produce Blue Gas Ltd Payment for hire of scaffolding at Rewa District School for 10 weeks and 8 props for 5 weeks Payment for career desilting project progress claim # 5 Payment for career desilting project progress claim # 7 Payment for career desilting project progress claim # 8 Payment of food rations for Beqa/Yanuca Secondary School Payment of goods (cassava, chili, rourou, coconut/cabbage & lemon.
Payment of various types of goods Payment of various goods for Sukuna bowl game Payment of refill of 8 50kg gas cylinders 01/07/13 02/07/13 6,479.00 22/05/13 20/06/13 02/07/13 07/06/13 03/06/13 17,250.00 24/05/13 11,500.00 08/07/13 16,100.00 13/06/13 1,934.25 08/11/12 28/12/12 3,261.50 02/10/12 06/12/12 22/01/13 03/10/12 2,679.09 21/12/12 2,428.00 31/01/13 1,578.44 Proper procurement procedures were not followed and there is a risk that the Force may be overcharged by suppliers.
There is also a possibility that goods may be oversupplied.

Such practices increase the risk of abuse and misappropriation of funds.

Recommendation The Force should ensure that all procurement procedures stated in its Finance Manual and Finance Instructions are complied with at all times.

Management Comment OAG findings and recommendation is noted.

There are number of factors which contributed to the above findings as follows:- I. II.

III.
III.

FMIS down during the processing of PO; Purchase Order generated and approved but printed at a later date wherein the printed date will appear on the PO and not the date of approval; and Goods and services were urgently required during emergency deployment of troops/navy vessels for search and rescue operations.

In addition the Force will ensure that OAG recommendation will be followed.
23 Fiji Military Forces Finance Manual 2011 – Section 2.5.11 Fiji Military Forces Section 18: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 18.17 Overpayment of Capital Works The proper management of expenditure is fundamental to ensuring value for money in delivering services to the community.
As well, having cost-effective internal controls within the purchasing and payments system plays an important part in ensuring that waste of funds, over-expenditures and corruption do not occur.24 The audit noted that two capital projects carried out by the RFMF Engineers which were funded by the Office of the Prime Minister had exceeded their cost allocation.

Refer Table 18.19 below for details.
Table 18.19: Overpayment of Capital Works TAI DISTRICT SCHOOL Date 03/08/12 08/01/13 08/01/13 Receipt Number 96 24491 24490 Total Funds Amount ($) Particulars 37,701.24 Administration Costs 776.77 Ration Costs 2,700.00 Contingency Costs 41,178.01 Total Costs Amount ($) 10,686.92 24,967.16 10,203.14 45,857.22 Surplus/ (Deficit) (4,678.32) REWA DISTRICT SCHOOL Cheque Number 27 30 28 31 32 Date 28/11/12 28/11/12 28/11/12 28/11/12 28/11/12 Total Funds Amount ($) Particulars 8,895.38 Administration Costs 13,343.06 Ration Costs 16,200.00 Contingency Costs 250.73 BOC Gas Costs 7,000.00 Hire of scaffolding 45,689.17 Total Costs Amount ($) 8,809.00 19,746.97 14,011.44 315.43 7,027.40 49,910.24 Surplus/ (Deficit) (4,221.07) The above anomalies show lack of internal control in the monitoring and usage of funds given by Ministries and Departments for Capital works.
Recommendations The Force should ensure that all projects are properly monitored to avoid any cost overrun.

Management Comment The OAG findings and recommendation is noted.

It is to be noted that the total cost given in the first place is only an estimate figures and total cost could be varied when projects are completed.

This is due to an increase on the cost of some materials due to wear and tear and other unforeseen circumstances.
When there is savings, total funds are returned to PM’s office with acquittals.

For the queries above, the overspent figure of $4,678.32 for Tai District School was paid from the savings of contingency costs of $7,551.20 from the Lawaki District School Project.

The overspent figure of $4,221.07 for Rewa District School was paid from the savings of contingency costs of $4,505.00 from the Naqali Primary School Project.

All these projects were funded by PM’s Office.


24 Fiji Military Forces Finance Manual 2011 – Part: 2 – Expenditure – Introductory Paragraph Fiji Military Forces Section 18: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ However, the Force has also put in place some strict internal control to ensure that all projects are properly monitored without overspending its estimates.
18.18 Excessive Annual Leave Annual Leave shall normally be taken when due.
The Permanent Secretary or Head of Department shall ensure scheduling of leave to avoid bulging of annual leave entitlements at any time of the year.25 Officers may be allowed to carry over a maximum of 10 working days from one leave year to the next.26 The audit sample checked noted instances where officers had more than 10 working days of annual leave carried forward to the next leave year while one officer exceeded his leave entitlement.

Details the sample checked are shown in Table 18.21 below.
Table 18.21: Excessive Annual Leave Carried Forward Rank Regimental No.

30868 23455 25729 31207 27156 28875 23903 23634 27372 LT WO1 SSGT MAJ CPL MAJ SGT WO1 SGT Total Leave Liability Leave Balance (Days) 58 31 52 80 61 94 71 69 -5 Leave Liability ($) 4,951.79 2,198.43 2,915.12 6,164.91 2,599.21 11,151.69 3,477.37 2,956.51 36,415.03 The above shows poor staff leaves administration which could result in government having to pay more in terms of leave liability if the staffs are discharged.
Leave liabilities for excessive annual leave generally increase over time as salary rates increase, which may impact the budgetary provisions of the military when officers are compensated on their outstanding annual leave upon discharged from the Force.

Health and welfare of officers can also be adversely affected if they do not take sufficient leave.

Recommendations  The Force should ensure that officers are encouraged to take leave when due so as to avoid accumulation of leave.
 The Force should ensure that leave files and records are updated accordingly and that the personal files and unit files are updated concurrently whenever leaves are taken to allow for consistency.

Management Comment No comment received from management, OAG findings and recommendations are acknowledged.

25 General Orders 2010 – Section 705 (d),pp.

41 26 General Orders 2010 – Section 705 (c),pp.


41 Fiji Military Forces Section 18: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The leave balances shown in the report is not for Annual Leave alone but it have been merged with the balance of Long Service Leave not been taken in the past years thus causing the bulging of Annual Leave balances.
 The non-utilization of Annual Leave was merely due to the nature of work the soldiers are engaged with whereby many a times has to be rescheduling to later date for operational reasons and due to the exigencies of the service.
This is seen as appropriate to meet operational demand;  Members of the RFMF are deployed for peacekeeping duties on a 12 months basis on four fronts whereby quick turnover of personnel cannot be avoided with some have to spend less than six (6) months at home before being drafted for another overseas tour of duty.
For this reason they cannot proceed on annual leave on due date thus creating bulging of Annual Leave entitlements; and  The excessive leave highlighted will be recovered from future leave entitlements.

The cause of action that has been taken by the Force is:  Effective monitoring of leave on unit level;   All Service Personnel who have accumulated significant amount of leave balances are to proceed on leave.
Immediate implementation of Leave Planner for all Units; and 18.19 Anomalies in Payment of Lodging and Location Allowances Lodging allowance will not be paid to those soldiers who live out on their own request unless approval has been given by the Commander to receive lodging allowance and also from the date an army quarter is allocated unless the Commander directs a soldier to live out for special reasons.
The Commander may grant to married soldiers, up to and including Warrant Officers, a lodging allowance to help pay cost of rent, water, and lighting charges, incurred while they are not in occupation of an official quarter.

Location allowance is payable from and including the day of arrival up to and including the day of departure from the overseas country.
The following anomalies were noted during audit:  Officers continued to be paid location allowance after returning from peacekeeping duties while some were overpaid location allowance while still serving on peacekeeping duties.

Total overpayment noted is $35,450.

(Refer to Appendix 18.1 for details)  Lodging allowance continued to be paid to soldiers despite occupying single and married quarters.
Refer to Table 18.22 below for examples: Table 18.22: Payment of Lodging Allowance for Officers Occupying Quarters Regiment Number 30992 30186 22039 30698 28302 30456 31193 28983 27264 Date of Occupation 10/04/13 03/01/10 30/10/10 01/05/10 08/04/13 22/08/13 12/06/13 29/07/13 24/04/13 Amount ($) 92.80 835.70 16,108.42 525.40 89.89 886.22 39.73 121.47 238.78 Fiji Military Forces Section 18: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Regiment Number 29819 29580 28022 30875 31989 31072 31163 30891 30830 Date of Occupation 09/04/13 02/07/13 29/09/11 24/02/11 11/10/12 10/10/12 01/07/13 01/07/13 28/04/04 – 16/12/12 Amount ($) 92.80 262.70 3799.10 105.00 868.74 565.00 805.50 805.50 322.00 26,564.75 The above shows complacency on the part of the Force as the lodging allowances are not being properly monitored.
Recommendations  The Force should ensure that lodging allowances paid erroneously are substantiated and recovered.

 The Force should ensure that supervisory checks for Human Resource Management and the Finance division are strengthened.
Management Comment OAG findings and recommendations are acknowledged.. Reconciliations of Lodging and Location Allowances are as follows:- Regiment Number 30992 30186 22039 30698 28302 30456 31193 28983 27264 29819 29580 28022 30875 31989 31072 31163 30891 30830 Date of Occupation 10/04/13 03/01/10 30/10/10 01/05/10 08/04/13 22/08/13 12/06/13 29/07/13 24/04/13 09/04/13 02/07/13 29/09/11 24/02/11 11/10/12 10/10/12 01/07/13 01/07/13 28/04/04 – 16/12/12 Force Comments.
Entitle for Lodging Allowance Fully recovered from pay 03/14 – pay 13/14 (Annexure 2) Entitle to Lodging Allowance but renting AFL Housing.

Fully recovered wef pay 14/10.


Fully recovered wef pay 10/13 Fully recovered wef pay 03/14 To be recovered on pay 20/13 To be recovered on pay 20/13 Fully recovered wef pay 16/13 Fully recovered wef pay 05/13 Fully recovered wef pay 15/13 To be recovered on pay 20/13 Fully recovered wef pay 08/13 Fully recovered wef pay 03/14 Amount ($) 92.80 835.70 16,108.42 525.40 89.89 886.22 39.73 121.47 238.78 92.80 262.70 3799.10 105.00 868.74 565.00 Partly recovered $170.00 wef pay 09/13.

$395.00 to be recovered.


805.50 805.50 322.00 26,564.75 To be recovered on pay 20/13 Entitle for Lodging Allowance To be recovered on pay 20/13.

As for the Location Allowance, soldiers on Tour of Duty (TOD) are entitled for 1 day as travelling day to and from the TOD location.
Fiji Military Forces Section 18: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES Appendix 18.1: Overpaid Location Allowance Reg # Group 23825 28728 28112 29683 29767 29771 30264 29686 29768 30945 30953 31549 31553 31568 29670 30951 31560 30660 31770 30578 30639 25409 30851 25740 25019 ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, Departure Date 22/05/13 Arrival Date 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 Force Comments Overpaid ($) 30.00 Entitle to 1 day Location Allowance of $70.00.
30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00                         Fiji Military Forces Section 18: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Reg # Group 23597 28815 22672 22605 31520 30419 23407 23111 30664 31021 30999 30514 29612 29629 29616 23289 24311 24225 30513 31232 28405 31596 24201 27372 31889 26908 30907 ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, Departure Date 22/05/13 Arrival Date 24/05/13 Overpaid ($) 30.00 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 22/05/13 24/05/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 Force Comments                            Fiji Military Forces Section 18: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Reg # Group 26363 30921 22582 27205 25665 30657 30737 28816 24968 30939 31695 29474 27160 31442 27068 30239 23470 25881 24872 31513 26374 31450 31311 31844 31845 31665 31798 ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, Departure Date 13/03/13 Arrival Date 15/03/13 Overpaid ($) 30.00 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13
 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 Force Comments                            Fiji Military Forces Section 18: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Reg # Group 30377 28467 2687 2243 ,, ,, ,, ,, Departure Date 13/03/13 Arrival Date 15/03/13 Overpaid ($) 30.00 13/03/13 15/03/13 13/03/13 15/03/13 13/03/13 15/03/13 30.00 30.00 30.00 2,490.00 Force Comments     Overpaid Location Allowance Allowances Reg # Group 29871 2FIR Chalk 2 Personnel Departure Date 19/03/13 Arrival Date 22/03/13 Overpaid ($) 100.00 Force Comments  31407 ,, 31519 25377 ,, 24664 26998 28374 24726 29090 28167 26544 28104 26659 26240 26160 22100 24028 26002 28008 27063 ,, ,, ,, ,, ,, ,, ,, ,, 1FIR [UNAMI] Chalk 2 Personnel ,, ,, ,, ,, ,, ,, ,, ,, 19/03/13 22/03/13 100.00 Entitle for Location Allowance 19/03/13 22/03/13 100.00 19/03/13 22/03/13 100.00 19/03/13 22/03/13 19/03/13 22/03/13 19/03/13 22/03/13 19/03/13 22/03/13 19/03/13 22/03/13 19/03/13 22/03/13 19/03/13 22/03/13 100.00 100.00 100.00 100.00 100.00 100.00 100.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00                   Fiji Military Forces Section 18: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Reg # Group 30496 31664 31385 31692 30593 30383 31818 31796 24576 31146 30814 30845 31632 ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, Departure
 Date 08/04/13 Arrival Date 10/04/13 Overpaid ($) 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 08/04/13 10/04/13 220.00 23456 1FIR Chalk 3 Personnel 15/04/13 17/04/13 1,130.00 26128 31815 24146 22326 31965 26111 27477 26026 25708 30843 31302 31300 30793 ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 1,630.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 420.00 15/04/13 17/04/13 1,030.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 1,130.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 Force Comments                            Fiji Military Forces Section 18: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Reg # Group Departure Date 15/04/13 Arrival Date 17/04/13 Overpaid ($) 1.130.00 15/04/13 17/04/13 1,130.00 15/04/13 17/04/13 1,130.00 15/04/13 17/04/13 1,130.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 220.00 15/04/13 17/04/13 1,130.00 15/04/13 17/04/13 330.00 ,, ,, ,, ,, ,, ,, ,, ,, ,, 1FIR [UNAMI] chalk 3 Personnel ,, 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 1,130.00 ,, ,, ,, ,, ,, ,, ,, ,, 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 2,890.00 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 1,130.00 14/10/13 16/10/13 1,130.00 32,960 30787 22083 28796 30089 22592 27330 31095 30727 31028 25991 30395 29941 31117 31128 31305 23446 29633 28706 27874 Total Force Comments                    Fiji Military Forces Section 18: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI –
 SEPTEMBER 2014 ____________________________ Appendix 18.2: Overpaid Location Allowance Reg # Group ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, Departure Date 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 22/05/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 Arrival Date 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 24/05/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 Overpaid ($) Fiji Military Forces Section 18: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________
 Reg # Group ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, Departure Date 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 13/03/13 Arrival Date 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 15/03/13 Overpaid ($) Fiji Military Forces Section 18: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 18.3: Overpaid Location Allowances Reg # Group Departure Arrival 2FIR Chalk 2 Personnel ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, 1FIR [UNAMI] Chalk 2 Personnel ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, 1FIR Chalk 3 Personnel ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 19/03/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13
 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 08/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 15/04/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 22/03/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 10/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 17/04/13 Overpaid ($) Fiji Military Forces Section 18: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Reg # Group Departure Arrival 27330 31095 30727 31028 25991 30395 29941 31117 31128 31305 23446 29633 28706 27874 Total ,, ,, ,, ,, 1FIR [UNAMI] chalk 3 Personnel ,, ,, ,, ,, ,, ,, ,, ,, ,, 15/04/13 15/04/13 15/04/13 15/04/13 14/10/13 14/10/13 14/10/13 14/10/13 14/10/13 14/10/13 14/10/13 14/10/13 14/10/13 14/10/13 17/04/13 17/04/13 17/04/13 17/04/13 16/10/13 16/10/13 16/10/13 16/10/13 16/10/13 16/10/13 16/10/13 16/10/13 16/10/13 16/10/13 Overpaid ($) 220.00 220.00 1,130.00 330.00 1,130.00 1,130.00 1,130.00 1,130.00 2,890.00 1,130.00 1,130.00 1,130.00 1,130.00 1,130.00 32,960 Fiji Military Forces Section 18: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER
 2014____________________________ Section 19 Fiji Police Force Role and Responsibilities The Fiji Police Force is responsible for the formulation and implementation of policies related to national defence, domestic security, public order, citizenship, maritime surveillance, passports, residency, national day celebrations and responding to natural disasters.
The targeted outcome(s) and output(s) in relation to the above responsibilities are achieved by maintaining law and order and upholding the rule of law effectively and efficiently, redressing the law and order situation, enhancing the operation of the courts and improving access to justice to strengthen and uphold the rule of law and ensuring peace and prosperity.
Table of Contents PART A: 19.1 19.2 19.3 PART B: 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 APPENDICES FINANCIAL STATEMENTS ............................................................................................................................. 2 Audit Opinion ..................................................................................................................................................... 2 Statement of Receipts and Expenditure ............................................................................................................ 2 Appropriation Statement ................................................................................................................................... 3 AUDIT FINDINGS ............................................................................................................................................ 4 Expenditure Ledger Not Maintained .................................................................................................................. 4 Board of Survey Not Carried Out ...................................................................................................................... 4 Un-reconciled and Unverifiable Entries in Unpresented Cheques Account ...................................................... 6 Stale Cheques ................................................................................................................................................. 10 Irregularities in Operating Trust Fund Accounts .............................................................................................. 10 Outstanding and Anomalies in Advances Issued ............................................................................................ 15 Non-Performance of FNPF Reconciliation ...................................................................................................... 17 Salary and Wages Reconciliation Not Prepared ............................................................................................. 19 Staff Establishment Contrary to the Authorised Establishment ....................................................................... 22 Proper Procedure Not Followed for Recruitment/Advertisement of Vacancies ............................................... 26 FNPF Suspense Account ................................................................................................................................ 29 Salary Overpayments upon Termination / Deceased / Discharged and Retirement ....................................... 30 Significant Manual Overtime Payment without MOF Approval........................................................................ 33 Administration and Payment Leave Compensation ........................................................................................ 34 Significant and Non-Recovery of Vehicle Accident Surcharge from Terminated Officer................................. 37 Kit Items Not Returned by Departing Officers ................................................................................................. 38 Non Retirement of Accountable Advances ..................................................................................................... 40 Un-Reconciled Provisional Taxes Paid ........................................................................................................... 41 Inadequate Maintenance and Missing Accounting Records ........................................................................... 42 No contract agreement with approved tenderer .............................................................................................. 45 Abuse of Prisoners Meal ................................................................................................................................. 46 Western Garage Anomalies ............................................................................................................................ 47 .................................................................................................................................................................. 52 Appendix 19.1: List of Voided Cheques ............................................................................................................................. 52 Appendix 19.2: List of Stale Cheques ................................................................................................................................ 55 Appendix 19.3: List of Outstanding Advances .................................................................................................................... 59 Appendix 19.4: PL08 Grade Recruitments ......................................................................................................................... 61 Appendix 19.5: Unidentified FNPF Membership ................................................................................................................ 62 Appendix 19.6: Unauthorized Payment of Extra Hours ...................................................................................................... 67 Appendix 19.7: Excessive Leaves – Civilian & GWEs ....................................................................................................... 68 Appendix 19.8: Payment Anomalies .................................................................................................................................. 69 Appendix 19.9: Source Documents not verified ................................................................................................................. 73 Appendix 19.10:Examples of Prisoners Meal Abuse .......................................................................................................... 75 Fiji Police Force Section 19: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ PART A: FINANCIAL STATEMENTS 19.1 Audit Opinion The audit of the 2013 accounts of the Fiji Police Force resulted in the issue of a qualified audit report.
The issue qualified is as follow:  A variance of $872,812 exists between the Force’s Drawings bank account reconciliation and the Financial Management Information System (FMIS) general ledger balance.

The Drawings bank account reconciliation was not performed properly to account for the cheques issued, cheques presented and the unpresented cheques as at 31/12/13.

As such the completeness and accuracy of payments made and recorded in the Statement of Receipts and Expenditure could not be determined.
Management attention was also drawn to the following matters:  A Board of Survey was not carried out contrary to section 49 (1) and (2) of the Finance Instructions 2010.

As such the completeness and accuracy of the Statement of Losses could not be ascertained.

 The Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained.

The Ministry prepared its financial statements from the FMIS general ledger.
As a result the audit was not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

19.2 Statement of Receipts and Expenditure The Force collected revenue totalling $2,176,828 and incurred expenditure totalling $87,806,106 in 2013.
Table 19.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS Police Clearance Fees Licenses Fees Other Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax Fiji Police Force 2013 ($) 2012 ($) Section 19: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Description 2013 ($) 2012 ($) TOTAL EXPENDITURE 87,806,106 84,394,422 Total revenue increased by $332,852 (18%) due to increase in Police Clearance Fees.
Total expenditure increased by $3,411,684 or 4% in 2013 compared to 2012.

This was mainly due increases in operational costs relating to travelling, subsistence, communication, office stationeries, printing, repair and maintenance, minor improvements, electricity, court witnesses fees, litigation fees and clothing and stores expenditures.
In addition capital purchases were also made for the automated finger print system, drug analysis machine, pathologist and standard equipment’s and the purchase of forensic science equipment’s.

19.3 Appropriation Statement The Force incurred expenditure totalling $87,806,106 against the revised budget of $89,676,921 resulting in a savings of $1,870,815 or 2%.

Details of expenditure against the budget estimate are provided in Table 19.2.
Table 19.2: Appropriation Statement for 2013 SEG Item Operating Expenditure Established Staff Government Wage Earners Travel & Communications Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditures Total Operating Expenditure Capital Expenditure Construction Purchases Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) Changes ($) Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) 72,507,017 667,393 3,468,000 5,221,600 2,943,000 90,000 1,508,000 86,405,010 (2,156,636) - 530,000 1,300,566 110,070 (25,000) (602,771) (843,771) 70,350,381 667,393 3,998,000 6,522,166 3,053,070 65,000 905,229 85,561,239 800,000 2,510,000 3,310,000 2,461,700 92,176,710 (235,164) (1,094,794) (1,329,958) (326,060) (2,499,789) 564,836 1,415,206 1,980,042 2,135,640 89,676,921 69,091,943 495,957 3,978,133 6,424,025 2,996,227 64,632 725,602 83,776,520 562,938 1,165,912 1,728,850 2,300,736 87,806,106 1,258,438 171,436 19,867 98,141 56,843 368 179,627 1,784,719 1,898 249,294 251,192 (165,096) 1,870,815 In 2013, Cabinet approved the redeployment of $2,499,789 from the Force’s budget to other Ministries and Departments.
Fiji Police Force Section 19: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ PART B: AUDIT FINDINGS 19.4 Expenditure Ledger Not Maintained A ledger shall be maintained for advances, petty cash, accounts payable, revolving fund accounts, inter-departmental clearance accounts, and expenditure and commitment accounts.1 Any transaction raised affecting these accounts shall be entered in the appropriate ledger.2 The audit noted that the Force did not maintain an expenditure ledger.
As a result it could not reconcile the expenditure in the FMIS general ledger3 maintained by the Ministry of Finance.

The audit was also not able to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.

Recommendation The Force should maintain an expenditure ledger and reconcile its expenditure ledger with the FMIS records on a monthly basis.

Force’s Comments The Force is maintaining an automated Commitment and Expenditure Ledger into an Excel spread sheet.
Reconciliations are carried out using this spread sheet information against the FMIS.

There was no intention of noncompliance of Finance Manual instead to use of technology to enhance reporting system.

Excel spread sheet information is useful in graphic illustrations.

The Force will ensure to maintain a manual Commitment and Expenditure ledger, including at all Division Police Commanders Office.
The Force will also ensure that proper supervision is on reconciliation on its expenditure ledgers with FMIS on a monthly basis.
19.5 Board of Survey Not Carried Out An annual board of survey must be conducted each year to verify the existence and condition of assets recorded on the asset register.4 Within one week of the end of each month, the Assistant Commissioner of Police, Administration and Finance shall submit to the Deputy Commissioner of Police the internal control report.5 A Board of Survey Report for 2013 was not produce during the audit.

Hence audit could not establish if a board of survey was carried out.
Refer Table 19.3 for assets, inventory and expandable items purchased over the 6 year period.
1 Fiji Police Force Finance Manual 2011 – Section 15.3.1 2 Fiji Police Force Finance Manual 2011 – Section 15.3.2 3 Financial Management Information System – FMIS (general ledger system) 4 Finance Instructions 2010 – Section 49 (1) 5 Fiji Police Force Finance Manual 2011 - Section 16.1.10 Fiji Police Force Section 19: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 19.3 and Figure 19.1: Purchase of Stores and Other Asset Items over the Six Year Period Miscellaneous Purchases ($) 1,142,114 1,965,390 1,748,685 1,483,986 1,678,049 1,523,269 9,541,493 Year 2008 2009 2010 2011 2012 2013 Total Capital Purchase ($) 2,368,636 2,606,902 1,054,525 414,824 1,008,741 1,165,912 8,619,540 Total ($) 3,510,750 4,572,292 2,803,210 1,898,810 2,686,790 2,689,182 18,161,034 In spite of substantial expenditure and investment in assets, the Force failed to carry out regular annual survey of its fixed assets.
Without a survey, the Statement of Losses (other than money) could not be fully substantiated.

Recommendation The Assistant Commissioner of Police, Finance and Administration should ensure that a Board of Survey is carried out annually in accordance with Section 49 of the Finance Instructions 2010.

Force’s Comments The Force focused Surveys on the Vehicles, Police Uniforms and accessories with available Human Resources.
We had managed to convene Board of Survey in 2013 for the following; - Valelevu Scene of Crime, Nausori, DPC-E -Stores, Camp Commandant, Forensics, etc.

Records are available for your verifications.

Further, the Ministry of Finance with cost sharing had conducted 100 % asset verification and the Force was relying on their report for Board of Survey.

However, the report has not been received to -date.
For your information, the Force has strengthened the BOS Unit and had accordingly directed all Divisional Police Commanders that to convene annual board of surveys and submit the report to Director Corporate Services.

The Force has conducted Board of Surveys in 2014 and some reports are complete and some are in the process of completion.
Fiji Police Force Section 19: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The above reports are kept with the officer-in Charge, Stores at Nasese Police Supplies and Stores Unit.

However, these reports have been brought in and kept at the office of the Force Accountant and are available for your audit verifications.
Further OAG Comments The evidence of the Board of Survey in Valelevu Scene of Crime, Nausori, DPC-E -Stores, Camp Commandant, Forensics was not produce to audit upon further audit inquiries on 29/09/2014.

Hence, the audit could not ascertain the completeness and accuracy of the Statement of Losses as the Full Board of Survey for the Fiji Police Force was not submitted to audit.

19.6 Un-reconciled and Unverifiable Entries in Unpresented Cheques Account All bank accounts must be reconciled monthly.
The bank reconciliation shall list the outstanding cheques and other reconciling items and be signed and dated by the responsible officer.6 The Administrative Staff and clerical officers shall enter details of all cheques drawn into a payment cashbook before they are issued.
The Payment cashbook shall contain details of the payee, payment date, ledger account, cheque details and the amount paid.7 The Commissioner of Police must appoint a Board of Survey to conduct a physical stock take of all cash on hand and other stocks held in safes at least once a year.8 Permanent Secretaries/Heads of Departments and Ministries are to ensure that the Annual Board of Survey on Drawings Account cheques are completed and report are to be submitted to Ministry of Finance and Auditor General’s office by 07/02/2014.9 Ministries/Departments are required to plan their expenditure well in order to avoid the accumulation of unpresented cheques at year end.10 The Assistant Commissioner of Police, Administration and Finance shall appoint two compliance officers (Principal Auditor and Senior Examiner of Accounts) to conduct monthly reviews of the existing internal controls associated with accounting functions within the agency.11 The Force’s unpresented cheques totalled $4,671,603 as at 31/12/13 compared to $2,887,150 in 2012, an increase of 38.2% or $1,784,453.
A consistent but steady increase has been noted since 2011.

Refer Table 19.4 and Figure 19.2 for details of balances over the 6 year period: 6 Finance Instructions 2010 - Section 32(6) 7 Fiji Police Force Finance Manual 2011 - Section 2.8.10 8 Finance Instructions 2010 - Section 31(5) 9 Ministry of Finance Circular No.

20/2013 dated 18/10/2013 on 2013 Closing of Accounts Procedures – Section 5.3.1 10 Ministry of Finance Circular No.
13/2012 dated 19/10/12, paragraph 5.1.3 11 Fiji Police Force Finance Manual 2011 - Section 16.1.8 Fiji Police Force Section 19: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 19.4 and Figure 19.2: Unpresented Cheques over the 6 Year Period Year 2008 2009 2010 2011 2012 2013 Amount ($) 8,477,570 5,554,381 10,014,288 271,267 2,887,150 4,671,603 Increase / (Decrease) ($) 3,713,415 (2,923,188) 4,459,907 (9,743,021) 2,615,883 1,784,453 The audit noted the following anomalies:  The annual board of survey for the drawings account for 2013 was not conducted on the due date, 7th February 2014 as stipulated in the Ministry of Finance Circular 20/2013.
As a result the audit could not ascertain the completeness and accuracy of the expenditure recorded by the Force for the financial year ending 31/12/13.

The audit established that a Board of Survey was later conducted on 29/05/2014 despite the closing of accounts in February 2014.

 An unsubstantiated figure of $402,256 being un-presented cheques was noted.

There was no supporting document provided to audit for verification.
A reconciliation exercise conducted by the Force concluded that the net off figure could not be ascertained and forwarded to Ministry of Finance for write off.

 An unexplained variance of $872,812 was also noted between the bank reconciliation performed by the Force and the general ledger record.

Refer Table 19.5 below for details.
Table 19.5: Variance between the Reconciliation and the General Ledger Particulars Opening Balance Add Credit (Cheques Issued) Less Debit (Cheques Presented) Closing Balance Force Reconciliation ($) 3,289,268 47,296,029 45,041,020 5,544,277 General Ledger Balance ($) 2,887,012 54,027,791 52,243,338 4,671,465 Variance ($) 402,256 (6,731,762) (7,202,318) 872,812  In spite of such variances, the drawings reconciliations were certified as correct by the Senior Accountant and the Force Accountant.
 The audit noted that there was a delay in the preparation of the drawings account reconciliations and instances were noted where some were prepared after one year.

 In addition the audit noted a variance of $22,128 between the un-presented cheques as at 31/12/2012 and 01/01/2013.

Refer Table 19.6 below for details.
Fiji Police Force Section 19: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 19.6: Variance between Balances Force Reconciliation Amount - 31/12/12 ($) Force Reconciliation Amount - 01/01/13 ($) Variance Amount ($) 3,068,140 3,289,268 221,128  The audit also noted that the Force does not record payments into the cash book but rather print the payment from the FMIS general ledger system and paste onto the cashbook.
As such, the independent check for the cheques issued to that recorded in system could not be done and thus, the unreconciled un-presented cheques.

 Thus significant amount of voided cheques were noted.

Refer to Appendix 19.1 for details.

 The completeness of the following records could not be ascertained fully by audit.

Table 19.7: Unascertained Voided Cheques Date Cheque No.
4/25/2012 4/25/2012 6/29/2012 6/29/2012 7/11/2012 7/11/2012 7/11/2012 8/08/2012 8/10/2012 8/14/2012 9/03/2012 9/03/2012 9/04/2012 9/18/2012 9/19/2012 9/19/2012 9/20/2012 9/20/2012 9/24/2012 10/22/2012 10/16/2012 10/18/2012 10/18/2012 10/22/2012 11/01/2012 11/05/2012 11/06/2012 11/06/2012 11/08/2012 11/14/2012 11/15/2012 11/15/2012 11/16/2012 11/20/ Amount ($) Date Cheque No.
11/26/2012 11/26/2012 11/26/2012 11/26/2012 11/26/2012 11/26/2012 11/26/2012 11/27/2012 11/27/2012 11/27/2012 11/28/2012 11/29/2012 11/29/2012 12/06/2012 12/06/2012 12/06/2012 12/11/2012 12/12/2012 12/13/2012 12/15/2012 12/17/2012 12/20/2012 12/21/2012 12/22/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/ Amount ($) Fiji Police Force Section 19: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque No.
11/20/2012 11/22/2012 11/22/2012 11/22/2012 11/22/2012 11/23/2012 11/23/2012 11/26/2012 11/26/2012 11/26/2012 11/26/2012 11/26/2012 11/26/2012 Total: 688934 689002 689003 689009 689014 689051 689064 689084 689085 689086 689087 689088 689089 Amount ($) 4,424 1,064 1,064 500 300 1,365 1,240 105 261 201 215 48 394 111,012 Date Cheque No.
12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/27/2012 12/30/2012 12/31/2012 12/31/2012 12/31/2012 12/31/2012 12/31/2012 Total: 690371 690372 690373 690374 690375 690396 690399 690409 690419 690633 690662 690665 690673 690835 690838 Amount ($) 270 1,300 204 75 565 1,286 20 60 26,438 2 499 1,382 499 2,138 829 306,080 The above anomalies indicate the poor administration of recording and reconciling of cheques raised.
There is also a possibility of cheques being raised fraudulently overstating expenditure recorded in the Statement of Receipts and Expenditure.

Recommendations  The Force Accountant and the Senior Accountant should supervise drawings reconciliations to ensure that balances are reconciled to the general ledger.

 The Force Accountant and the Senior Accountant should properly check reconciliations performed before certifying these records as correct.
 The Administrative and Clerical Officers should ensure that a payment cash book is maintained for recording of all payments/cheques issued.

 The Commissioner of Police should ensure that annual board of surveys are certified and regularly conducted.

 The Assistant Commissioner of Police, Administration and Finance should instigate an investigation immediately for the anomalies noted.

Force’s Comments The Drawings account reconciliation error was inherited by the Force for many years back.
The Force jointly with FMIS Unit of Ministry of Finance and with assistance of the Bank had conducted reconciliations for the whole of last year.

The introduction of new bank reconciliation format had corrected a lot of errors and up to March 2014 bank reconciliation is available for your verification.

The supporting documents for the adjustments of the account were verified by finance and then necessary account was corrected.
Further, the Board of Survey (BOS) on Drawing account (D/A) was not prepared because the Ministry of Finance was still reconciling the account to make necessary adjustments to correct the account.

As a result un-presented cheque list was not available.

Further OAG Comments The annual board of survey for the drawings account for the year 2013 was not conducted on the due date, 7th February 2014 as stipulated in the Ministry of Finance Circular No.

20/2013.
20/2013.

As a result the audit could not ascertain the completeness and accuracy of the expenditure recorded by Force for the financial Fiji Police Force Section 19: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ year ending 31/12/2013.

The audit established that the Board of Survey were later conducted on 29/05/2014 despite the closing of accounts in February 2014.
The Board of Survey were then submitted to audit and Ministry of Finance on 02/06/2014.

The Fiji Police Force did not produce the relevant supporting documents to ascertain how the above anomalies were rectified in the 2014 reconciliation upon further audit inquiries on 29/09/2014.
19.7 Stale Cheques If cheques remain in the unpresented cheque list for more than three months, the Force Accountant must attempt to locate the payees and have their cheques presented before they come stale.12 Stale cheques (those which are at least 6 months old) must be reviewed each month to determine the need for a replacement cheque.
Where a replacement cheque is not required, action should be taken to clear it.13 The audit noted a total of $2,720,509 in un-presented cheques that were over six month old and have become stale.

A detailed list of these stale cheques is shown in Appendix 19.2.

The above indicates that stale cheques were not regularly reviewed to determine whether adjustments or a replacement cheque is required.
Also, stale cheques misstate expenditure recorded in the Statement of Receipts and Expenditure in the agency financial statement.

Recommendation The Force Accountant should ensure that cheques are cleared as soon as practical within 6 months.

If the payee is identified, a replacement cheque should be written, otherwise appropriate adjustments should be made in the accounts to clear the stale cheques.

Force’s Comments The stale cheques were not written off due to the process as explained above in 7.4.
The Ministry of Finance has advised us that they will only write off the stale cheques after completion of reconciliation.

Further, once a confirmation is provided after the adjustments then Force will take corrective measures for the cheques to be either replaced, voided, etc.

19.8 Irregularities in Operating Trust Fund Accounts Where charges are for payments to organizations through salary deductions, the relevant creditor account shall be credited.
When actual payment is made to the organization, the creditor account shall be debited.14 Within five days after the end of each month, the Assistant Accounts Officer Ledgers shall prepare a trust reconciliation to reconcile trust account balances to the ledger total.

Details of balances must be attached to the reconciliation statement.

The Deputy Force Accountant shall certify and date the reconciliation statement after ensuring that all balances in the statement are verified to supporting documents.
The Force Accountant must submit the trust reconciliation to the Deputy Commissioner of Police within 10 days of the end of the month.15 12 Fiji Police Force Finance Manual 2011 - Section 6.5.1 13 Finance Instruction 2010 – Section 33(3) 14 Fiji Police Force Finance Manual 2011 - Section 4.7.3 15 Fiji Police Force Finance Manual 2011 - Section 14.4.1 – 14.4.4 Fiji Police Force Section 19: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Trust Fund Account had a balance of $1,697,296 in 2013 compared to a balance of $1,993,421 in 2012, a decrease of $296,125.
These comprise of direct payroll deductions for Police Welfare Scheme, Police Service Credit Union, deductions for Wesram Finance, Fiji National Provident Fund contributions and VAT collected in trust to be remitted to FRCA.

Refer Table19.8 below and Figure 19.3 for details of balances over the 6 year period.
Table 19.8 and Figure 19.3: Trust Fund Account over 6 Year Period Year 2008 2009 2010 2011 2012 2013 Amount ($) 2,427,491 1,823,512 2,560,483 835,535 1,993,421 1,697,296 The audit noted the following anomalies in the operating trust fund account:  Of the 60 trust fund accounts, 11 accounts were dormant of which 7 have been written off without proper supporting documents provided to audit for verifications.
Refer Table 19.9 for details Table 19.9: Dormant Trust Fund Accounts Account Number Description 1-20101-20101-861310 396 PD FAB LOAN RECEIVABLE Dormant From 2008 Amount ($) 1,284 1-20101-20101-861524 315 PD CENTRAL CREDIT UNION 2008 115 1-20101-20101-861814 1-20101-20101-861609 419 PD RENT GRADE IV 349 PD MAINT-LABASA 2008 2009 48 310 1-20101-20101-861307 1-20101-20101-861521 264 PD HOME FINANCE CO 312 PD SACRED HEART CU 2010 2010 1,566 2,414 1-20101-20101-861532 1-20101-20101-861603 1-20101-20101-861611 YYY PD PUBLIC EMPLOYEE UNION 343 PD MAINT-RAKIRAKI 351 PD MAINT-SAVUSAVU 2010 2010 2010 410 140 80 Fiji Police Force Audit Remarks Account written off without supporting documents provided to audit Account written off without supporting documents provided to audit Account written off without supporting documents provided to audit Account written off without supporting documents provided to audit Account written off without supporting documents provided to audit Section 19: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Account Number Description 1-20101-20101-861207 247 BSP HEALTH CARE Dormant From 2011 Amount ($) 596 1-20101-20101-861913 387 PD RFA IDC SALARIES 2011 33,599 Audit Remarks Account written off without supporting documents provided to audit Account written off without supporting documents provided to audit Total 40,562  Reconciliations were not consistently checked during the year thus an un-reconciled variance of $1,151 was noted between the FMIS general ledger and the Force’s records.
Refer Table 19.10 for details.

Table 19.10: Variance between Balances Force Reconciliation Amount - 31/12/13 ($) General Ledger Amount - 31/12/13 ($) Variance Amount ($) 1,698,447 1,697,296 1,151  Thirty – eight (38) accounts were overdrawn during the year;  Overdrawn balance has increased in 2013 by $90,332 or 9% compared to that of 2012.
Refer to Figure 19.4 and Table 19.11 below for the schedule of overdrawn trust fund accounts: Figure 19.4: Overdrawn Trust Fund Accounts Table 19.11: Overdrawn Trust Fund Accounts Account Number Description 1-20101-20101-861104 1-20101-20101-861105 1-20101-20101-861106 1-20101-20101-861202 1-20101-20101-861204 1-20101-20101-861206 1-20101-20101-861210 1-20101-20101-861306 208 PD RENT H/A UNEST 267 PD RENT PUBLIC RENTAL BRD 390 PD GOV WATER RATES CHRGS 241 PD CMLA 244 PD-LICI 246 PD MARSH & MCLENNAN 250 PD POLICE WELFARE SCHEME 263 PD HOUSING AUTHORITY 2013 ($) 19,736 8,511 198 92,452 159,082 47,224 306,457 4,450 2012 ($) 19,761 8,402 81 84,530 143,759 47,189 280,097 4,435 Fiji Police Force Section 19: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Account Number Description 1-20101-20101-861307 1-20101-20101-861308 1-20101-20101-861511 1-20101-20101-861511 1-20101-20101-861515 1-20101-20101-861521 1-20101-20101-861524 1-20101-20101-861532 1-20101-20101-861533 1-20101-20101-861536 1-20101-20101-861601 1-20101-20101-861602 1-20101-20101-861603 1-20101-20101-861604 1-20106-20101-861604 1-20101-20101-861605 1-20101-20101-861606 1-20101-20101-861607 1-20101-20101-861608 1-20101-20101-861609 1-20101-20101-861611 1-20101-20101-861616 1-20101-20101-861701 1-20101-20101-861706 1-20101-20101-861716 1-20101-20101-861901 1-20101-20101-861911 1-20101-20101-861912 1-20101-20101-861922 1-20101-20101-861924 Total 264 PD HOME FINANCE CO 266 PD FDB HOUSING 301 PD FPS CREDIT UNION 305 PD GSMA CREDIT UNION 305 PD GSMA CREDIT UNION 312 PD SACRED HEART CU 315 PD CENTRAL CREDIT UNION YYY PD PUBLIC EMPLOYEE UNION WESRAM FINANCE HANDY FINANCE LIMITED 341 PD MAINT-SUVA 342 PD MAINT-NAUSORI 343 PD MAINT-RAKIRAKI 344 PD MAINT-TAVUA 344 PD MAINT-TAVUA 345 PD MAINT-BA 346 PD MAINT-LAUTOKA 347 PD MAINT-NADI 348 PD MAINT-SIGATOKA 349 PD MAINT-LABASA 351 PD MAINT-SAVUSAVU PD MAINT-NASINU 357 PD RATES-SUVA 361 PD RATES-LAUTOKA XXX PD RATES-NASINU 201 PD TAX ARREARS / PAYE 385 D SPORTS & SOCIAL 386 PD UNIQUE (DISP SERV) PAYROLL DED - DOBU FINANCE MPAISA 2013 ($) 1,924 4,098 11,608 --- 415 --- --- 430 97,639 2,892 4,679 5,919 140 720 80 820 4,090 1,000 960 --- --- 1,090 909 412 445 179,895 46,789 76,393 114 110 1,081,681 2012 ($) 1,561 4,110 11,828 360 --- 2,414 115 410 96,672 --- 3,775 5,604 140 880 --- 633 4,060 880 840 310 80 1,130 866 218 325 157,569 11,188 96,903 --- --- 991,125  The audit noted significant credited trust account balances.
Refer Table 19.12 for details.
Table 19.12: Significant Trust Fund Accounts Allocation Particulars 1-20101-20101-861517 1-20101-20101-861599 1-20101-20101-861902 1-20101-20101-861917 1-20101-20101-861920 1-20101-20101-863201 Total: 307 PD POLICE SERVICE CU 319 NUPW CREDIT UNION 204 PD DEPST A/C RECOVERABLE 437 PD IMPROVED FORESTRY 501 P D EMPLOYEES FNPF VAT FROM PROVSN OF GDS & SERV Amount ($) 732,266 24,928 30,660 10,432 1,050,556 918,227 2,767,069  A total of $2 million is held as statutory payment yet to be paid.
Refer Table 19.13 for details.
Fiji Police Force Section 19: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 19.13: Statutory Trust Fund Accounts Account Number Description 1-20101-20101-861309 1-20101-20101-861310 1-20101-20101-861902 1-20101-20101-861914 1-20101-20101-861915 1-20101-20101-861920 1-20101-20101-861920 1-20101-20101-861917 1-20101-20101-863201 Total: 388 PD PSC SCHOLARSHIP LOAN 396 PD FAB LOAN RECEIVABLE 204 PD DEPST A/C RECOVERABLE 389 PD-COURT BANKRUPTCY ORD 400 PD FINES & TREASURY 501 P D EMPLOYEES FNPF 501 P D EMPLOYEES FNPF 437 PD IMPROVED FORESTRY VAT FROM PROVSN OF GDS & SERV 2013 ($) 1,698 --- 30,660 2,692 1,330 1,050,556 228.48 10,432 918,227 2,015,823 2012 ($) 1,698 1,284 56,829 2,692 1,280 1,292,343 --- --- --- 1,356,126  In addition, the reconciliations prepared failed to address accumulated balances in FNPF and VAT trust fund accounts of $1,050,784 and $918,227 respectively.
Refer Table 19.14 for details.

Table 19.14: Accumulated FNPF & VAT Trust Fund Accounts Allocation Particulars 1-20101-20101-861920 1-20102-20101-861920 501 P D EMPLOYEES FNPF 501 PD EMPLOYEES FNPF Total 1-20101-20101-863201 VAT FROM PROVSN OF GDS & SERV Amount ($) (1,050,556) (228) (1,050,784) (918,227) The above shows the laxity in ensuring timely payment of balances held in trust.
Also, there is a possibility that statutory payment have been made from the operating fund account instead of the trust fund account, overstating expenditure recorded in the Statement of Receipts and Expenditure in the Force Agency Financial Statement.

As such, large balances remained outstanding in the operating trust fund account.

Recommendations  The Deputy Force Accountant should review trust fund account balances every month and explain the reason for the accumulating balances.
 The Force Accountant should ensure that proper controls are put in place for the management of trust fund account operation.

 The Deputy Commissioner of Police should ensure that monthly reconciliations are reviewed for large outstanding balances.

Force’s Comments The Force will ensure that the Deputy Force Accountant will scrutiny trust fund account balances every month and explain the reasons for the accumulating balances.
The auditors had highlighted previous year’s balance, which did not capture the true expenditure incurred by the various operating trust allocations.
Fiji Police Force Section 19: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Force Accountant will also ensure that monthly reconciliations are done and submitted on time and also ensure that large outstanding balances of previous years are determined to be paid or written-off if no proper documentations.

The Force Accountant will ensure that there will be measures and supervisory controls for the clearance of these balances.
19.9 Outstanding and Anomalies in Advances Issued The Force Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents.16 The need to improve record management in all agencies is vital for promoting Good Governance, Transparency and Accountability in the public sector.17 A travelling officer shall recoup the travel advance within seven days of completing travel by submission of an acquittal report with supporting documents.
If an advance has not been fully expended, the travelling officer must repay the balance within seven days of completing travel.18 Where an advance has not been acquitted within seven days of travel, the Force Accountant shall effect recovery through a salary deduction from the concerned officers salary within six fortnights.19 Upon clearance of the advance, the Force Accountant shall update the advance register, offset the advance account and debit the appropriate expenditure account.20 The revolving fund advance account totalled to $697,909 in 2013 compared to $739,708 in 2012, a decrease in unretired advances by $41,799 or 6%.
During the year, a total of $1,065,300 and $1,107,099 was issued and retired as payments and receipts to the advance account.

Refer Table 19.15 for balances in the advance account over the 6 year period.

Table 19.15 and Figure 19.5: RFA – Advance Account over the 6 Year Period Year 2008 2009 2010 2011 2012 2013 Amount ($) 504,707 593,824 678,213 677,619 739,708 697,909 16 Fiji Police Force Finance Manual 2011 - Section 17.1.3 17 Public Service Commission Circular No.
10/2011 18 Fiji Police Force Finance Manual 2011 – Section 9.1.11 and 9.1.12 19 Fiji Police Force Finance Manual 2011 - Section 9.1.14 20 Fiji Police Force Finance Manual 2011 – Section 9.1.15 Fiji Police Force Section 19: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The audit noted the following anomalies:  The outstanding advances have been recurring from previous years without much effort to reconcile the balance;  A review of advances issued during the year noted a total of $40,452 outstanding in advances as outlined in Appendix 19.3.
This was an increase of 258% or $29,140 from $11,312 in 2012.

 The audit noted that cancelled advances totalling $28,164 was recorded in the debtors register.

Refer Table 19.16 for details.
Table 19.16: Cancelled Cheques Recorded as Issued Advances Chq No./ Date 900000618433 - 03/01/13 Particulars Amount ($) 3,782 Payment of Advance 690984 - 05/01/13 691632 - 01/02/13 691767 - 06/02/13 692958 - 13/03/13 695626-10/06/13 698438-28/08/13 698440-28/08/13 698085-20/08/13 698086-20/08/13 699243-19/09/13 699274-20/09/13 699276-20/09/13 699420-25/09/13 697801-12/08/13 108 Advance to cater meals for 2 officers to investigate on alleged forgery and money laundering case in WD wef 08-09/01/13 100 Advance to cater lunch during 4th quarter verification with SFCCO 108 ADV_08-09/01/13 405 ACC ADV_14/3-18/3/13 11,718 180 Advance to cater for the opening of Northern carnival wef 15/06/13- 22/06/13 Advance to cater 6 nights while attending court in Lautoka wef 12/08/13- 16/08/13 482 Advance to cater meals and fuel whilst conducting investigation in ND 311 Advance to cater for the 2nd RFL in ED 500 Advance to cater for the Police Wives National Sports Tournament and craft Fair wef 30/08/13-01/09/13 Advance to cater for the Police Wives National Sports Tournament and craft Fair wef 30/08/13-01/09/13 1,200 Remembrance Day Advance 500 198 Advance for Northern Division Tour 108 Advance for Levuka Tour 1,690 972 Advance to cater for meals and nights while deployment for 30 days in Lakeba wef F 25/09/13 Advance to cater for meals for 4 officers while on Docket Inspection Tour at the ND wef 13/08/13-21/08/13 900000699574-30/09/13 900000699575-30/09/13 700617-30/10/13 701570-27/11/13 Total 3,402 Payment of Advance 1,458 Payment of Advance 78 Advance for Northern Division Tour 864 Advance to cater for the ND Economic Crime Tour 28,164  Furthermore, the Advance Account reconciliations were not certified as correct by the Senior Accountant and the Force Accountant for the second half of the year July – December.
Non-timely clearance of advances is a contributing factor of large un-reconciled balances in the advance account over the years and may become irrecoverable.

The above shows lack of care in issuing, recording and maintaining records relating to advances and are compounding factors to the large balances in advance accounts.
Fiji Police Force Section 19: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Recommendations  The Force should ensure that recovery actions are instigated on officers who failed to retire advances within seven days upon return from duty.

 The Force should thoroughly review reconciliations performed for the timely clearance of retirement of advances.
 The Force should investigate reconciliations of prior periods to update the general ledger and instigate recovery actions against officers who have not cleared the advances.

 The Deputy Commissioner of Police, Finance and Administration should institute disciplinary action on officers who failed to reconcile and follow-up on the advances that have become irrecoverable.

 The Force Accountant should ensure that proper care is maintained for accounting records.
Force’s Comments The Force will ensure to instigate recovery actions for officers who failed to retire their advances within seven days upon return.

The Force will ensure that AAO/L to thoroughly see that timely reconciliations and clearance of advances are done on time.

The Force will also ensure to recover outstanding advances from prior periods and instigate a 12% interest as per the 1994 Finance Circular.
The Force will publish the name of those officers who has outstanding advances in the Force Routine Order (FRO) so that disciplinary action can be taken against them.

The Force Accountant and all the supervisors will now make sure that proper care is maintained for accounting records.

The Force has ensured that any un-utilized cheques will be voided in the system to show a corresponding entry to off-set the amount issued.
19.10 Non-Performance of FNPF Reconciliation Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee is employed by him and in the month following the termination of such employment, a contribution calculated upon the amount of wages payable to such employee by such employer for the preceding month at the appropriate rates.21 The current rate of contribution is 16 cents on each dollar earned, with the employer and the employee each contributing 8 cents.
Within three days of receiving the monthly general ledger reports from the Ministry of Finance, the Assistant Accounts Officer, Ledgers shall reconcile the ledger balances to the general ledger reports and prepare a ledger reconciliation statement.22 Any errors or misallocations must be immediately adjusted by way of journal vouchers.23 The Force Accountant shall certify and date the reconciliation.24 21 Chapter 219 – Fiji National Provident Fund – Section 13 (1) 22 Fiji Police Force Finance Manual 2011 - Section 15.3.3 23 Fiji Police Force Finance Manual 2011 - Section 15.3.4 24 Fiji Police Force Finance Manual 2011 - Section 15.3.7 Fiji Police Force Section 19: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The audit noted a variance of $1.17 million between the FNPF recorded in the general ledger and the reasonableness tests performed by audit.
Refer Table 19.17 for details of the variance.

Table 19.17: Unexplained Variance In The Payment Of FNPF Description FNPF deducted in Pay 1/2013 Established Staff [$155,151.52 * 26] Special Constables [$24,791.68 * 26] Total Expected FNPF Expenditure FNPF Recorded in the General Ledger [010200] Variance Amount ($) 4,033,940 644,584 4,678,524 3,506,283 1,172,241 The above shows the laxity in ensuring that supervisory checks are carried out for the payments made.
Audit further noted an un-reconciled difference of $255,101 between the FNPF December contributions and the FNPF recorded in the FNPF Trust fund account general ledger.

Refer Table 19.18 for details of the variance.


Table 19.18: Unexplained Variance in the FNPF Trust fund Description FNPF Trust Fund Account (OTF) FNPF December Provisions Variance: Amount ($) 1,050,784 795,683 255,101 This indicates that the Force failed to make proper provisions in the clearing of FNPF under allocations 1-20101-20101-861920 and 1-20102-20101-861920.
Recommendations The Force Accountant should ensure that FNPF deductions from employees are correctly remitted to FNPF and regular reconciliations are undertaken.

Force’s Comments The Force has ensured that all recent years FNPF contributions are paid out as per reports which are printed from Ministry of Finance, including manual payments.

The Force has also carried out monthly reconciliations to ensure contributions payable or receivable by the Force is properly remitted to FNPF Board.
The OAG should also take into considerations of a few factors that could have caused the variances:    The number of officers that retire/resign and or deceased during 2013.

The number of officers who were interdicted on half salary, cessation of allowances and the 108 Officer’s that passed out last year.

The findings also did not take into considerations the manual payments done in December, 2013 amounting to $20,372.
Fiji Police Force Section 19: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ 19.11 Salary and Wages Reconciliation Not Prepared The Force Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents.25 The payroll report shall be handed to the Assistant Accounts Officer Ledgers or Clerical Officer who is responsible for preparing the salary reconciliation (this officer must not be involved in the payment process or the preparation of input forms).26 The salary reconciliation must reconcile the difference between the previous fortnight payroll report and the current report, and must be prepared prior to each pay date.
The salary reconciliation shall be signed by the Deputy Force Accountant to the Ministry of Finance, within one week from the pay date.27 The Force salaries and wages expenditure totalled $69.6 million in 2013 compared to $69.5 million in 2012, an increase by 1%.
Refer Table 19.19 below for details: Table 19.19 and Figure 19.6 (a) & (b): Salaries & Wages over the 5 Year Period Year 2008 2009 2010 2011 2012 2013 Salaries ($) 62,367,530 65,857,555 66,787,063 64,391,677 68,902,927 69,091,943 Total Wages ($) ($) 63,050,977 683,447 67,435,567 1,578,012 67,578,414 791,351 64,843,639 451,962 69,494,502 591,575 495,957 69,587,901 Percent Change 0 7.0 0.2 (4.0) 7.2 0.1 The following irregularities were noted in the payment of wages and salaries:  A saving of more than $1.2 million was noted for standard expenditure group - established staff as outlined in Table 19.20: Table 19.20: Significant Saving in SEG 1 Description Revised Budget Actual Expenditure Variance Amount ($) 70,350,381 69,091,943 1,258,438 25 Fiji Police Force Finance Manual 2011 - Section 17.1.3 26 Fiji Police Force Finance Manual 2011 – Section 4.6.3 27 Fiji Police Force Finance Manual 2011 – Section 4.6.4 – 4.6.5 Fiji Police Force Section 19: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________  The audit could not ascertain salaries and wages totaling $3.45 million for Special Constables (SC) as certified salary and wages reconciliations were not maintained and provided for audit verification upon audit request.
Refer Table 19.21 for details.

Table 19.21: Details of Unsubstantiated Special Constables Reconciliations Total Officers Paid 1093 1090 1081 1082 1082 1083 1097 1094 1094 1093 Pay No.
Total Amount Paid ($) 311,960 312,362 316,494 320,929 333,429 328,216 309,930 506,877 358,573 354,542 3,453,312 Pay Date Reconciliation Date 11/01/13 25/01/13 08/02/13 22/02/13 08/03/13 22/03/13 05/04/13 19/04/13 03/05/13 17/05/13 Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications Not Provided for audit verifications  In addition, the audit noted that salaries totaling $10.1 million for established staff, $1.4 million for special constables and $266,525 wages were not reconciled on time.
The audit established that some salaries and wages were reconciled after one year.

Refer Table 19.22 to 19.24 for details.

Table 19.22: Late Preparation of Reconciliations – Established Staff Pay No.
Total Officers Paid Established Staff 2715 2685 2633 2697 2642 4 5 6 14 26 Total Amount Paid ($) Pay Date Reconciliation Date Audit Remarks 2,064,065 21/02/13 2,046,526 07/03/13 2,001,892 21/03/13 2,022,626 22/08/13 2,036,488 19/12/13 10,171,597 24/09/13 24/09/13 24/09/13 17/10/13 14/01/14 Pay was reconciled after 7 months Pay was reconciled after 6 months Pay was reconciled after 6 months Pay was reconciled after 2 months Pay was reconciled in 2014 Table 19.23: Late Preparation of Reconciliations – Government Wage Earners Pay No.
Total Officers Paid Amount Paid ($) Pay Date Reconciliation Date Audit Remarks Government Wage Earner (GWE) 114 114 113 62 61 59 91 92 91 91 93 93 Fiji Police Force 10,213 9,340 11,306 10,834 10,958 11,111 16,528 16,846 18,235 15,750 16,825 17,647 02/01/13 09/01/13 16/01/13 23/01/13 30/01/13 06/02/13 13/02/13 20/02/13 27/02/13 06/03/13 13/03/13 20/03/13 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 1 year Pay was reconciled after more than 10 months Pay was reconciled after more than 10 months Pay was reconciled after more than 10 months Section 19: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Total Officers Paid 93 93 93 93 91 92 Pay No.
Total Amount Paid ($) Pay Date Reconciliation Date Audit Remarks 16,965 17,168 16,993 16,972 16,182 16,653 266,526 27/03/13 03/04/13 10/04/13 17/04/13 24/04/13 19/06/13 12/03/14 12/03/14 12/03/14 12/03/14 12/03/14 18/11/13 Pay was reconciled after more than 10 months Pay was reconciled after more than 10 months Pay was reconciled after more than 10 months Pay was reconciled after more than 10 months Pay was reconciled after more than 10 months Pay was reconciled after 4 months Table 19.24: Late Preparation of Reconciliations – Special Constables Amount Paid ($) Pay Date Reconciliation Date Audit Remarks Pay No.
Total Officers Paid Special Constables (SC) 1090 1081 1080 1082 15 17 23 26 Total 361,719 09/08/13 361,253 23/08/13 350,670 15/11/13 358,242 24/12/13 1,431,884 06/01/14 06/01/14 24/01/14 24/01/14 Pay was reconciled after more than 4 months Pay was reconciled after more than 4 months Pay was reconciled in 2014 Pay was reconciled in 2014 In the absence of regular and timely reconciliations, the Force will not be able to detect possible irregularities in the payment of salaries and wages.
The above indicates the laxity of the supervising officer in ensuring that adequate supervisory checks on payroll are made.

The above anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Force on 28/08/13 however the Force failed to take any corrective action.

Recommendations  The Force Accountant should ensure that timely salary and wages reconciliation are performed and filed accordingly.
 The Force Accountant should ensure strict compliance to payroll guidelines and instruction stipulated in the Finance Manual.

 The internal control procedures in the Accounts Section, specifically supervisory checks should be strengthened to avoid such discrepancies.

Force’s Comments The salary and wages reconciliations have been carried out and where necessary appropriate adjustments have been made.

The file is available for your scrutiny.


The Salary reconciliation officer and the supervisor have been informed on the importance on timely reconciliations.

Further OAG Comments The reconciliations were not prepared on time which has resulted in some of the irregularities noted in the payroll below.
Fiji Police Force Section 19: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ 19.12 Staff Establishment Contrary to the Authorised Establishment Salaries and wages constitute a major portion of the agency’s budget.
Proper controls over engaging new employees, salary payments and resignations reduce the risk of fraudulent or unauthorised payments, inaccurate payroll reports and invalid pay rates.28 The number of persons to be recruited as Subordinate Officers and the frequency of recruitment will be directed by the Commissioner of Police.
The Commandant Fiji Police Academy will be responsible for arranging recruiting tours, the selection of recruits, the processing of recruits and advertisement of recruiting tours.29 The audit noted the following anomalies for staff establishments of the Force:  The Force engaged excess PL0830 man power contrary to the Public Service Commission (PSC) approved staff establishment.

The audit could not ascertain the authority for the excess engagement as there was no Public Service Commission approval.
Refer Table 19.24 for details.

 In addition the audit further noted that twenty nine (29) contract workers were engaged contrary to the Public Service Commission (PSC) approved staff establishment.

The audit could not ascertain the authority for the excess engagement as Public Service Commission approval was not obtained.

Refer Table 19.25 for details.


Table 19.25: Details of Staff Establishment Grade Excess PSC Approved Establishment Establishment 101 450 29 --- (Source: Police Manpower Status Report – Human Resource Management as at 31/12/13) Actual Establishment 551 29 PL08 Contracted Workers  Despite having excess PL08 man power the audit noted that the force continued to recruit police officers ranking PL 08 for the past three years.
An escalating trend has been observed for the past 3 years relative to the fixed approved establishment provided by Public Service Commission.

This constitutes a total of $5,639,485 accounted expenditure or 12% of the entire payroll manpower of the Force.

Refer Table 19.26 below for particulars.


Table 19.26 and Figure 19.7: Recruitments for the four (4) year Period Year 2010 2011 2012 2013 Establishment Actual Approve Excess 450 450 450 450 1 (134) (96) (101) 449 584 546 551 28 Fiji Police Force Finance Manual 2011 – Part 4 Payroll 29 Fiji Police Force Standing Order – No.
228: Recruits 30 The new recruits were classified as PL08 in the Police Force Grading System Fiji Police Force Section 19: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________  The current recruitment selections were made base on the draft Human Resources Manual guidelines “3rd Draft HRM Manual” that are yet to be endorsed by the Commissioner of Police.
This anomaly was first highlighted in the 2012 Draft Audit Memorandum which was issued to the Force on 28/08/13 however it failed to take immediate action.

 The Force has a total of sixty (60) GWE as per approve staff establishment.

The audit noted that the Force engaged more than sixty (60) GWE for the year which is unauthorised.

Refer Table 19.27 below for details of examples of excess GWE paid from Pay 1 to Pay 17.
Table 19.27 and Figure 19.8: Variances in Government Wage Earners (GWE) Employed - 201331 Pay No Officers Paid 114 114 113 62 61 59 91 92 91 91 93 93 93 93 93 93 91 Approve Number 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 Variance 54 54 53 2 1 (1) 31 32 31 31 33 33 33 33 33 33 31 31 The list is not exhaustive to Pay 18/2013 onwards.
Fiji Police Force Section 19: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________  The audit further noted that these variances for GWE staffs engagements were not reported on the monthly manpower status report by the Force’s Human Resource Management Division.

Refer Table 19.28 for details of Manpower reported in the monthly manpower status report and actual Manpower as per GWE payroll records.
Table 19.28 and Figure 19.9: Detail of Variances for Actual GWE Paid & GWE Manpower Reported32 Pay No Officers Paid33 114 114 113 62 61 59 91 92 91 91 93 93 93 93 93 93 91 Reported Officers34 58 58 58 58 58 58 58 58 58 58 58 58 58 58 58 56 56 Variances 56 56 55 4 3 1 33 34 33 33 35 35 35 35 35 37 35 Excess engagement contrary to the approved establishments post is a breach of standing Government Policies and Regulations.
Also, recruitment above authorization encourages nepotism and favoritism.

Recommendations  The Commissioner of Police should review the recruitments in excess of the authorized establishment immediately.

 Disciplinary action should be instituted on officers for recruiting officers in excess of the authorized limit.

 The Force should maintain its manpower capacity within the approved establishment and any excess establishment are to be regularised by PSC.
 The PSC should also investigate the recruitment of officers and take appropriate action where essential.

32 The list is not exhaustive to Pay 18/2013 onwards.

33 Total Officers Paid as per GWE Reconciliation 34 Total Officers as per GWE Manpower Status Report Fiji Police Force Section 19: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Force’s Comments The following are our responses as tabled below.
S/No Anomalies Remarks 1 FPF engaged excess PLO8 manpower contrary to PSC approved staff establishment.

2 Twenty nine (29) contract workers were engaged contrary to PSC approved staff establishment.

The excess PLO8 manpower were recruited since the powers were vested by the Commissioner of Police as stipulated under section 127(5) of the 2013 Constitution and State Services Decree No.

6 of 2009 .
6 of 2009 .

The Commissioner of Police made this decision to foresee the future in the maintenance of law and order in the country and since there were 101 vacancies from PLO7 salary grade to USO1.

The 101 excess PLO8 recruit officers were recruited for the purpose of maintaining the balance between surplus and variance.

This was done to ensure that once the vacancies from PLO7 to US01 are filled, there will be automatically 101 vacancies are created in PLO8 salary cadre to cater for this excess number.
This exercise did not require additional budgetary allocation.

The Commissioner of Police is responsible for ; a) The organization and administration of the FPF, and; b) The deployment and control of its operations, And, subject to subsection (6), is not subject to the direction or control by any other person or authority in relation to those atters These are Building Maintenance and AFIS contracted officers.
Although these are not approved establishment but for the purpose on effective and efficient organization the maintenance of law and order , the Commissioner of Police used his discretion as stipulated under section 127(5) of the 2013 Constitution and State Services Decree No.
6 of 2009 for The Commissioner of Police is responsible for; a) The organization and administration of the FPF, and; b) The deployment and control of its operations, And, subject to subsection (6), is not subject to the direction or control by any other person or authority in relation to those atters Further due to nature of their contract of employment for weekly payment of wages the GWE Payroll was used to facilitate processing of their pays, including PSC approved project Building Maintenance employees.
Fiji Police Force Section 19: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ S/No Anomalies Remarks 3 FPF continued to recruit police officers despite having excess PLO8 manpower.

There are three specific reasons ; a) Although FPF has excess PLO8 officers, it continued to recruit officers because there were vacancies of similar number in the PLO7 to US01 salary cadre.
The FPF foreseen that once these vacancies are filled, there will be automatically vacancies are created in PL08 in future, hence the excess number of PLO8 are balanced with the created vacancies.

b) The Commissioner of Police has authority as enshrined under Section129(5) of 2013 Constitution on the organization and administration of the FPF, and; The deployment and control of its operations And does not require sanction of PSC, so long as it is within his budgetary allocation.
Further, the officers were recruited in the Projects and were not paid from the GWE funds, however, due to nature of contract of employment for payment of weekly wages for these officers were facilitated/ paid from the GWE payrolls.

For example; labourers, carpenters, plumber, painter, electrician, Data Operators, TRCOs, etc.

However, our past years record shows that we had vacancies in all categories (Established/SC/GWE).
Further, we had surplus in 2013 GWE allocations that proves that recruitment was not in excess of establishment.

Refer to the 2013 expenditure below: Government Wage Earner ($) Annual provision Actual Expenditure Surplus 667,393 495,957 171,436 Further OAG Comments Although the Force did not overspent the Government Wage Earner (GWE) funds allocated for the year, the recruitment of excess officers exceeds the approved staff establishments without Public Service Commission approval.
19.13 Proper Procedure Not Followed for Recruitment/Advertisement of Vacancies It has been established that Ministries, Departments and Agencies have a substantial number of vacant positions, which are critical to the achievement of their representative corporate outputs and deliverables.35 Vacant posts will normally be advertised in the Fiji Public Service Official Circular and the press.
When an Officer applies for any vacancy, he should send his application through his Permanent Secretary or Head of Department.
Prior approval of the Public Service Commission is to be obtained with the certificate of availability of funds from the Ministry of Finance before any substantively vacant post is advertised.36 The Secretary of the Public Service shall authorize advertisement of vacancies and prospective vacancies in the Public Service as soon as it is ascertained by the Permanent Secretary or Head of Department.37 35 Public Service Commission Circular No.
58/2011 36 General Orders 2011 – Chapter 2: Appointments – Section 205 37 Public Service Commission Circular No.

53/2011 Fiji Police Force Section 19: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Before a letter of appointment is issued, a candidate selected for appointment must undergo medical examination and be passed as being in all respects physically and mentally fit by an authorized Medical Officer.
38 He must have a satisfactory police record.39 The compulsory retirement age from the Service will be 55 years as per Part 15 (1) of Decree No.

6 and titled State Services Decree 2009.
Any Officer may, in special circumstances, and with the approval of the appropriate Service Commission be allowed to remain in the Service after he has attained the age of 55 years.40 No manual payment of salary is permitted except on first appointment or upon written approval from the PS Finance.41 The audit noted the following anomalies for the recruitment and re-engagement of officers if the Fiji Police Force:  Proper procedures were not followed during the recruitment process of police constables.
Refer below for anomalies noted for the recruitment process:  The audit could not ascertain the appointment of officers as application form were not produce to audit,  There was no supporting police clearance forms,  There was no medical clearance forms, and  Other supporting documents such as birth certificates and examination transcripts could not be verified as files were not updated neither it was produce upon audit request.

Refer to Appendix 19.4 for details.


 In addition the force has 372 vacant positions.

This constitutes 63 per cent of police constables, 10 per cent corporals, 6 per cent sergeant, 6 per cent inspectors and 15 per cent as others42.

 Further the following officers were appointed to the Communication Assistant (ES06) posts without proper recruitment process.

Refer Table 19.29 for details.


Table 19.29: Communication Assistant Posts Filled Without Proper Recruitment Process Name EDP Period of Appointment Remarks Kelvin Kamal Prasad Saimoni Suka Nitendra Nair 77700 77905 77883 25/01/13 03/09/12 20/02/12 Ilisoni Naivalu 77837 01/12/13 The officers have been absorbed into the Force after being employed as provisional staffs and have been contracted for 3 years from the dates of their appointments.
However those four communication posts were filled without advertising vacancies and interview the candidate.

the  The Force Forensic officer Mr. Mitieli Luvu (EDP 51341) was re-engaged without Public Service Commission approval.
38 General Orders 2011 – Section 203 (a) 39 General Orders 2011 – Section 203 (b) 40 General Orders 2011 – Chapter 2: Appointment – 215(b) (c) 41 Fiji Police Force Finance Manual 2011 – Section 4.5.14 42 Civilians/GWE/Police Superintended/ Senior Research Officer/Consultant/Technical officer/Medical officer Fiji Police Force Section 19: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________  In addition the officer was manually paid from pay 16 to 26 totalling $6,910 without the Ministry of Finance approval.
Moreover the manual payment was not recorded into the payroll system.

In the absence of competitive recruitment evaluation, the selection processes is partial and incomplete.

The required qualified people for the job may not be selected and there is a risk of favouritism and nepotism in the process.

The Force may not be able to deliver the required services to the public in a timely manner if positions continue to remain vacant for a long period of time.
Recommendations  The Force should maintain its manpower capacity within the approved establishment to ensure that the required services are delivered to the public in a timely manner and required output are achieved.

 The Force should ensure that the selection and appointment processes are strengthened, transparent and fair.

 The Force should ensure that vacancies are advertised in compliance to PSC regulation.
 The Force and PSC should investigate the recruitment and re-enagement of officers above 55 years and take appropriate action where necessary.

Force’s Comments Firstly, I wish to draw your attention to the following mandated authority: The Commissioner of Police under the Laws of Fiji, Chapter 85 and/or State Services Decree 2009, Decree No.
6 empowers the Commissioner of Police on the following: Section 21(4) The Commissioner of Police is responsible for: (a) (b) The organization and administration of the Fiji Police Force; and Its deployment and the control of its operations; and, subject to subsection (5), is not subject to direction or control by any other person or authority in relation to those matters.
(8) Notwithstanding anything to the contrary in any written law, the Commissioner of Police has the following powers in relation to the Fiji Police Force for all ranks and members of the Fiji Police Force: (a) (b) (c) to make appointments in the Fiji Police Force to remove officers in the Fiji Police Force to take disciplinary action in the Fiji Police Force The section 129 (1) of 2013 Fiji Constitution stipulates the appointment of the Commissioner of Police.
“…the co issioner of Police is appointed by the President on the advice of the Constitutional Offices Commission following the consultation with Minister responsible for the Fiji Police Force.is appointed by the Constitutional Commission as stipulated in the 2013 Constitution section…… ” In view of the above, the State Services Decree number 6 and the 2013 Constitution of Fiji empowers the Commissioner of Police for recruitment of members of the Force within the budgetary provisions.
For your information, proper procedures were followed for the new recruits and all the relevant documents are available for your verifications at Fiji Police Academy and our Director Planning office.

However, Force is in the process of transferring the relevant information from these recruitment files to their personal files maintained at the Headquarters.
Fiji Police Force Section 19: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Details responses as per item are as follows: Table 19.29: Communication Assistant Post filled without Proper Recruitment Process Srl No .
1 2 3 4 Srl No 1 2 3 Name EDP Remarks 77700 77905 77883 77837 Kelvin Prasad Saimoni Suka Nitendra Nair Ilisoni Naivalu Issue The Audit could not ascertain the appointment of officers as application forms were not produced to audit There was no supporting Police Clearance Forms for new appointments Mitieli Luvu – re-engaged without PSC approval (PSC Circular Memo 29/498 dated 14.03.2014)  CP’s powers to appoint under the State Services Decree 6/2009 and 2013 Constitution  They all met the MQR of the position.
Response Recruitment into the FPF (PL08) was advertised in the Fiji Sun.

 Police Clearance successful applicants was done through Criminal Records Office  FPA maintains files for officers on recruitment training where documents like birth certificates and exam transcripts are copied /recorded  FPF did not seek approval from PM’s office  for re- engagement of service.
instead enforced 2013 constitution CP’s delegated powers Further OAG Comments The Force did not submit records to audit upon further audit inquiry on 29/09/2014.
19.14 FNPF Suspense Account Every employer shall, as soon as any person not already a member of the Fund under the age of 55 years becomes his employee, register him on the appropriate form and forward such form to the Manager at the Office of the Fund within 1 month of the date of commencement of his employment.43 The audit noted that the Fiji Police Force had unidentified contribution of $15,151 with Fiji National Provident Fund (FNPF) as at 31/12/2013.
Refer to Appendix 19.5 for details of unidentified contribution as at 31/12/2013 and below for unidentified contribution for the past three years.

Table 19.30 and Figure 19.10: FNPF Unidentified Contributions Year 2011 2012 2013 No.
of Employees 415 415 218 Amount ($) 26,957 26,957 15,151 43 FNPF Act (Cap 219) – Section 63; Part II - Regulation 7 Fiji Police Force Section 19: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ It is apparent that the balance may continue to increase or carried forward to the next financial year if the Force fails to reconcile the unidentified funds with FNPF.
The above denotes laxity of the Force Accountant in ensuring that all unidentified contribution that has been with FNPF over the years is properly accounted in the books of the Fiji Police Force.

Recommendation The Force should liaise with FNPF to reconcile and identify the unidentified contribution.

Force’s Comments The Force has managed to reduce its FNPF suspense Account with the assistance of the FNPF.
However, there are un-reconciled amount that will be published in our weekly FRO and any outstanding then publish into local newspaper.

For your information, the Force has taken proactive approach in unnecessary accumulation of FNPF suspense account.

Therefore, from last year no salary and wages is processed either manual or through payroll without officers producing their FNPF identification number cards as a result this will alleviate amounts in FNPF suspense account.
19.15 Salary Overpayments upon Termination / Deceased / Discharged and Retirement Salaries and wages constitute a major portion of the agency’s budget.
Proper controls over engaging new employees, salary payments and resignations reduce the risk of fraudulent or unauthorised payments, inaccurate payroll reports and invalid pay rates.44 Thus, the Force Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents.45 The death of a workman from any cause whatever must be reported by the Commissioner of Police to the Permanent Secretary of Labour, within one week.46 Officers who have been confirmed to permanent establishment must, if they wish to resign, give not less than 30 consecutive days’ notice unless approved by the Commission, an Officer who resigns without giving 30 consecutive days’ notice may be required to pay 30 days salary in lieu of notice.47 Salary advices must be submitted promptly to the Ministry of Finance where there is any change to personnel emoluments or deductions such as appointments, promotions, transfers, acting allowances, dismissals and resignations, income tax allowances, housing deductions, or other authorized charges or deductions.48 The principle is that no allowance shall be payable on the duration of a period of interdiction regardless of whether the officer concerned is reinstated or dismissed.49 Extra Duty Allowance will be paid automatically to all Inspectorate and Subordinate Officers fortnightly and will not be paid to an eligible officer when interdicted from duty or on a training course overseas.50 44 Fiji Police Force Finance Manual 2011 – Part 4 Payroll 45 Fiji Police Force Finance Manual 2011 – Section 17.1.3 46 Fiji Police Force Standing Orders – No.
(67)(4) 47 General Orders 2011 – Section 214 (a) 48 Finance Instructions 2010 – Section 17 (1) 49 Fiji Police Force’s Standing Order - No.65 (13) 50 Fiji Police Force’s Standing Order - No.65 (4) (d) Fiji Police Force Section 19: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Officer will not be reimbursed with the loss of salary during the period of interdiction.51 Allowances payable to Inspectorate and Subordinate Police Officers are declared in Police Regulations.
This includes Extra Duty Allowances.52 Officers who are on tour of duty are not entitled for Extra Duty Allowance.

Review of the payroll records reveals the following anomalies;  The following retired officers were overpaid a sum of $1,559 due to non- cessation of salary in a timely manner.

Refer Table 19.31 for details.


Table 19.31: Salary Overpayment for Retired Officers Officer Name Alikisada Naisaboca Isikeli Verenaivalu Sera Bernad Total EDP No 51151 52289 51112 Amount ($) 225 1,050 Post Corporal Corporal 284 Senior Superintendent 1,559 Last Day 03/07/12 23/12/11 10/06/12  A sum of $2,452 was overpaid due to non- cessation of salary for deceased officer in a timely manner.

Refer Table 19.32 for details.


Table 19.32: Salary overpayment for Deceased Officers Officer Name Opetaia Ratuvono Joseph Titau Sosil Prasad Total EDP No.

76379 76905 51560 Amount ($) 1,357 214 881 2,452 Post Deceased Police Constable Corporal Corporal 15/12/11 26/06/12 15/07/12  The following officers continued to be remunerated during periods of interdiction and dismissal.

Refer Table 19.33 for examples.

Table 19.33: Salary overpayment for interdicted/dismissed Officers Officer EDP No.
Financial Year Amount ($) Particulars Isei Vueti 50444 2011 158 2012 2,695 Biutoka Vuli 79668 2012 77 Interdicted with effect from 17/03/11 on 50% salary and reinstated on 04/03/12.

Despite OPR recoveries in salary and EDA totaling $2,277.45 for 2011, the officer was still overpaid the amount.

Despite the OPR recovery in Acting and EDA for 2012, audit noted interdicted salary arrears were reimbursed to the officer including arrears of taxable allowances.
Also the officer undergone training with effect from 03/11 – 22/11/12 where he was acting SSP.

The officer was overpaid lodging allowance of $77.31 upon approval on 01/06/12.

The officer was transferred from Ready Action Unit quarters to 51 Re-instatement Memorandum No.
23/03/12 – Commissioner of Police Directive 52 Fiji Police Force’s Standing Order - No.65: Allowances Fiji Police Force Section 19: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Officer EDP No.

Financial Year Amount ($) Particulars Total Nadawa.
2,930 It is apparent that the overpayment of salaries resulted from inadequate supervisory checks on payroll by the Force Accountant and the failure of the Force in maintaining stringent internal controls for payroll.

Non-timely cessation of salaries accumulates overpayment amount which may not be recovered thus resulting loss of taxpayers’ funds.
Recommendations  The Force should consider ways to recover overpaid salaries from the officers concerned and take appropriate action to avoid overpayments in future.

 The Force should take appropriate action to ensure that salaries of the officers, who have been interdicted, dismissed or reinstated, are ceased and activated from the effective dates.

 The Forces Standing Order No.

65 and 67 should be strictly followed.


 Proper and stringent internal control such as supervisory checks in the accounts division should be strengthened to avoid overpayments.

Force’s Comments Your comments have been noted and effective stringent internal controls have been put in place from this year to minimize overpayments.
Further, a joint weekly meeting between HRM and Accounts section are convened to reconcile on the processing of information in order to improve on the completeness of work and follow up on issue of importance.

Our detailed responses are as follows: Table: 19.31; Salary Overpayment for Retired Officers Name Alikisada Naisaboca Isikeli Verenaivalu Sera Bernard EDP 51151 52289 51152 Amount Issue Response $225.00 $1,050.00 $284.00 Overpaid salary Options are explored to recover the overpayments e.g.
pending leave etc Table: 19.32; Salary Overpayment for Deceased Officers Name EDP Amount Issue Response Opetaia Ratuvono Joseph Titau Sosil Prasad 76379 76905 51560 $1,357.00 $214.00 $881.00 Overpaid salary Options are explored to recover the overpayments e.g.

pending leave etc Table: 19.33; Salary Overpayment for interdicted/dismissed Officers Name EDP Response Isei Vueti 50444 Officer is interdicted on half salary.

Recovery will only initiate after verification is complete.
Biutoka Vuli 79668 Further details required for verification Fiji Police Force Section 19: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ 19.16 Significant Manual Overtime Payment without MOF Approval Each agency must have in place a cost effective system of internal controls which safeguards money and property against loss, avoids or detects accounting errors and avoids unfavourable audit reports.
No manual payment of salary is permitted except on first appointment or upon written approval from the PS Finance.

53 Overtime shall be approved only in essential circumstances and on specific approval by the Permanent Secretary and if is provided for in their Budgetary allocation.
Delegates shall ensure proper planning of work to avoid unnecessary overtime.54 The audit noted the following anomalies for the administration of overtime:  The Force did not obtain Ministry of Finance approval for the manual payment of acting arrears to Sergeant Officer Iowane Rauto via cheque no.

69966 totalling $3,889.

 The audit also established that Ministry of Finance approval was not obtained for the manual payment of overtime totalling $15,449.

Refer to Appendix 19.6 for details.


In addition the audit could not substantiate the overtime payment of $2,235 as supporting documents were not produce to audit for verification.

 Substantial payments were made for overtime.

Refer Table 19.34 for examples.
Table 19.34: Examples of Significant payment of Salary Arrears Staff Base Salary ($) Overtime Amount paid ($) Total/Year ($) Percentage Increase (%) Audit Remarks Ana Luvu 14,036 17,339 31,375 124 Emele Delai Jovesa Cevaloa 13,117 15,909 29,026 121 16,162 10,955 27,117 68 Total 43,315 44,203 87,518 Assessed a continuous payment of extra hours for 10 months - February to December; PAYE not deducted for Pay 4 & 5 Assessed a continuous payment of extra hours for 10 months - February to December; PAYE not deducted for Pay 4, 5, 6, 7& 15 Assessed a continuous payment of extra hours for 5 months – July to September; PAYE was deducted accordingly;  There was also no general ledger allocation55 to cover overtime expenditure during the year.
The payments have been committed under the personal emoluments allocation in the general ledger system.

The Force did not effectively monitor over time work in 2013 as a result there were excessive overtime and payments were made.

In the absence of the approval of Ministry of Finance, the manual payment of payroll expenditure is unauthorized.

Manual payments without proper approval increase the risk of abuse and unauthorized payment.
53 Fiji Police Force Finance Manual 2011 – Section 4.5.14 54 Public Service Commission Circular No.
70/2012 & Appendix 1 55 Financial Management Information System (FMIS) maintained and controlled by Ministry of Finance Fiji Police Force Section 19: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Recommendations  With substantial overtime hours worked by officers in the Force, management and those with supervisory roles need to proactively engage in management of overtime hours.
 Working overtime should be closely monitored and properly managed and procedures developed to closely monitor overtime costs.

 Routine tasks should be appropriately planned and allocated to be completed during official working hours.

 The Principal Accounts Officer should ensure that Ministry of Finance approvals are obtained for manual payments apart from first appointment.
 The Force should investigate the officers responsible for not adhering to the financial regulations and implement appropriate disciplinary actions.

 The Principal Accounts Officer should ensure that all necessary supporting documents are properly kept and maintained.

 The Principal Accounts Officer should ensure that appropriate arrangements are made to recover salaries overpaid where possible from the respective officers.
Force’s Comments The following are our responses: Table 19:34; Significant payment of salary arrears (Payment of Extra Hours) Srl No.

1 2 3 Name Ana Luvu Emele Delai Jovesa Ceveloa EDP Remarks 41701 60239 77893 No dates indicated, to be more specific 2013 - Overtime was directly approved by the management then for KIT CARD reconciliation, updating of files, and reconciliation of official mobile phone bills in accordance with powers vested to the Commissioner.
Early this year an administrative instruction has been issued outlining the procedures for manual payments.

The manual payments are only made upon approvals from Ministry of Finance.

Further OAG Comments The Force did not submit to audit the Ministry of Finance approval for the above payments upon further audit inquiry on 29/09/2014.
19.17 Administration and Payment Leave Compensation Officers may be allowed to carry over up to a maximum of ten working days leave entitlement from one leave year to the next.56 Officers responsible for administration of leave are encouraged to be proactive and ensure that leave roster is well planned, updated regularly and copies circulated to all Officers notifying them of their annual leave dates to avoid accumulation of leave.57 Leave and other conditions under these Orders shall be deemed to be the right of officers.
In the event of resignation, termination of appointment on any grounds or death of an officer he or his legal representative shall be paid pro rata compensation for annual leave due to the officer up to the date of 56 General Orders 2011 – Section 705 57 Public Service Commission Circular No.
05/2012 Fiji Police Force Section 19: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ his resignation, termination or death, leave allowance, passages under General Order 708, if applicable and long service leave earned in accordance with General Order 706.58 Compensating accumulated leaves will not be entertained thus; there should be no reason for or justification for the accumulation of annual leave beyond what is permissible, nor payment of compensation in lieu, if leave were properly administered.
In exceptional cases where it is impractical to release an officer to take his/her leaves and only after the six months extension, request for leave compensation may be made to the secretary for Public Service.59 Review of leave records reveals the following internal control weaknesses for leave administrations;  The Force fail to record and maintain a summary listing of leave especially Police Constables hence the audit could not ascertain their leaves status.
As a result the audit was not able to substantiate the total leave and leave liability for the Force as at 31/12/13.

 Despite proper leave records maintained for Civilian and GWEs, a total leave liability of $110,163 were estimated for the unutilised excessive leaves for 31 officers.

Refer to Appendix 19.7 for details.

 In addition leave due to officers were not compensated at time of death or dismissal.

Refer Table 19.35 for details.


Table 19.35: Details of Non-Payment of Leave Compensation Name Death Eronimo Susunikoro Alipate Driu Saukawa Alvin Hemant Kumar Unaisi Baleyasawa Total: Dismissal Iosefo (76887) Villiame (76387) Amount ($) Details 980 The officer had 19.5 working days of annual leave accumulated at the time of his death.

There is no record of any leave compensation being paid out to his legal beneficiary.

No manual payment was done either.


3,559 The officer had a total of 46 working days of annual leave accumulated at the time of his death.

There were no documents relating to the leave compensation pay out.

No manual payment was done either.

--- Audit was not able to verify the officer’s accumulated annual leave due to the service register not being updated.

No documents available to verify whether compensation is paid out or not.

No manual payment was made either.


760 The officer had 29 consecutive days of accumulated leave.

Approval was given by CAO for the compensation to be paid to the beneficiary, however, upon verification in FMIS, no leave was paid out despite the approval letter.

5,299 Waqawai 2,540 The officer had 50 working days of accumulated leave upon dismissal.

No records in file that states leave compensation have been paid out.

Lotawa 3,520 The officer had 69 working days of accumulated leave upon dismissal.
No records in file that states leave compensation have been paid out.

Vulaono Cibavakaloloma (76878) Setareki Talemaigau (76177) Manoa Kalouniviti 3,701 The officer had 73 working days of accumulated leave upon dismissal.

No records in file that states leave compensation have been paid out.

3,701 The officer had 73 working days of accumulated leave upon dismissal.

No records in file that states leave compensation have been paid out.
3,193 The officer had 59 working days of accumulated leave upon dismissal.

No records in 58 General Order 2011 – Chapter 7, Section 703 (a) 59 Public Service Commission Circular No.

53/2009 Fiji Police Force Section 19: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Name (52828) Total: Amount ($) Details file that states leave compensation have been paid out.
16,655  Significant amount of leave compensations have been paid out during 2013 totalling to $114,771 with an average payout of $3,826.

Refer 19.36 below for details.

Table 19.36: Significant Leave Compensation Paid in 2013 Date Cheque No.
Vendor Amount ($) 02/04/13 15/10/13 02/05/13 24/10/13 25/09/13 22/05/13 30/01/13 01/02/13 18/04/13 06/09/13 25/09/13 16/10/13 14/11/13 18/01/13 16/08/13 15/05/13 25/09/13 11/10/13 25/01/13 25/07/13 18/10/13 19/08/13 04/04/13 15/05/13 16/10/13 17/04/13 20/03/13 09/09/13 11/10/13 18/11/13 Total Hari Chand Ioane Naivalurua Kelera Rabuka Jimi Koroi Rina Kumari Ram Chetty Public Trustee Coproration Ltd Mesulame Senimoli Meli Bulivakarua Etuate Gusuivalu Sailasa Turagaluvu Rt Tevita Vuluilakeba Mohammed Bobby Aiyaz Uraia Torau Taufa Lote Navneet Singh Seremaia Caginivalu Shalwin Kumar Arieta Dia Wara Rakesh Chandra Voreqe Bainimarama Semi Radrudru Ravoka Bhumika Devi Asgar Ali R Commissioner of Police Rakabatia Qiokacikaci Laijipa Radinimoce Salote Wati Lititana Nabati Atish Chandra The Force lacks proper administration and management of leaves.
This may result in high compensation commitments for unutilized leaves days when Officers resigns or retire from the service.

In the absence of the approval of the Public Service Commission, the payment of leave compensation is unauthorized.

Failure to compensate leave upon death and dismissal deprived the rights of former officers as per General Order 703.
Fiji Police Force Section 19: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Recommendations  The Force should ensure that officers are encouraged to take their leave when due without hindering the continuity of the Force’s operations.

 The Force should ensure that all leave due to an officer on resignation, termination or death are compensated.
 The Force should ensure that Officers are notified of their leave positions and appropriate steps are taken to ensure leaves are utilized by Officers when it falls due.

 The Force should ensure that only 10 annual leave days is carried forward to next leave year.

 The Force should comply with General Order and circulars issued by the Public Service Commission from time to time regarding the administration of leave.

 A leave roaster may be drawn to enable staff plan and take leave during the year.
Force’s Comments Due to shortage of manpower arising from vacancies not filled etc, Officers were not able to proceed on leave.

The Force is in the process of filling in vacant positions and accordingly officers are now advised to proceed on leave.

Table 19.35 and Table 19.36: Administration and Payment Leave Compensation Srl No Issue Response The Force fail to record and maintain a summary listing of leave especially Police Constable hence the audit could not ascertain the leaves status.
As a result the audit was not able to substantiate the total leave and leave liability for the Force as at 31/12/13.

Despite proper leave records maintained for Civilian and GWE, s a total leave liability of $110,163 were estimated for the unutilized excessive leave for 31 officers.

In addition the audit noted that officers leave due were not compensated at time of death or dismissal.
Further reviews reveals that significant amount of leave compensation have been paid out during the year totaling to $144, 771 with an average pay-out of $3,826.

In addition officers were paid leave compensation without the approval of the Public Service Commission.
All case will be verified and where necessary payments will be made 19.18 Significant and Non-Recovery of Vehicle Accident Surcharge from Terminated Officer A driver involved in an accident may be surcharged if the surcharging authority believes the driver was at fault.60 The surcharge amount of 100% recovery of the full cost of repairs or replacement is charged for damage to or loss of government vehicle.61 60 Fiji Police Force Finance Manual 2011 – Section 11.6.7 61 Finance Instructions 2010 - Section 64 Fiji Police Force Section 19: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The audit noted that a total of 19 officers were surcharged for causing damage/loss to state assets worth $23,727.
Further reviews reveal that the surcharge amounts were not recovered from two officers that were terminated.

Refer Table 19.37 below for details.

Table 19.37: Non Recovery of Surcharged of Vehicle Accident from Terminated Officers Date Name 29/8/12 Sitiveni Waqa Josaia Dulaki 5/9/12 Total EDP/FNPF No.
50235 XS809 Amount ($) Status 200 Officer was terminated on 07/02/12 600 Officer was terminated on 05/05/08 800 The above findings indicate non-compliance with the surcharge procedures and the laxity of the Accounts Officers in taking corrective action on a timely manner.

Recommendation The Force should ensure that all sum owed are recovered prior to terminating the officers.
Force’s Comments The officer namely Josaia Dulaki was terminated on 05/08/08 and the surcharge process took place on 15/08/12 which was a result of the delay.

Further, for officers the surcharge recovery inputs into payrolls are effected by Ministry of Finance on the advice of their surcharge Unit.

19.19 Kit Items Not Returned by Departing Officers Gazetted and Inspectorate Officers who leave the Force will return all items of kit on their charge to Director Finance and Administration.
Director Administration and Finance will strike off the kit card all items returned and account for them in the unserviceable kit register.

Subordinate Officers who leave the Force will return all items of kit on their charge to the officer holding the kit card.

Each item of kit will be checked off against the kit card and the value of any item not returned will be deducted from the final pay sheet.
Items returned will be struck off the kit card and accounted for in the Unserviceable Register.62 The audit noted the departing officers failed to return kit items to the Force.

Refer Table 19.38 for details.

Table 19.38: Officers Departing Without Return of Kit Items Names Rank EDP No.
Date of Depart Abenesh Kissun Makereta Nagusa Rupeni Biudole Lasaro Turagadrau Inia Mekemeke Sharmila Devi Mosese Tuicakau PC 4812 WPC 4097 PC 4523 PC 4466 PC 4357 WPC 4080 PC4801 78801 77076 77496 77440 77335 77059 77787 Resigned with effect from 24/08/12 Resigned with effect from 10/12/12 Resigned with effect from 26/06/12 Terminated with effect from 09/08/12 Dismissed with effect from 15/06/12 Dismissed with effect from 25/06/12 Dismissed with effect from 25/08/12 62 Fiji Police Force Standing Order No.39 – Section 5 & 6 Fiji Police Force Section 19: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Names Rank EDP No.
Date of Depart Alikisada Naisaboca Sera Bernand Opetaia Ratuvono Steve Bryan Roko Joseph Titau Cpl 1151 SSP PC 3410 PC 3968 Cpl 3928 51151 51112 76379 76947 76905 Retired with effect from 03/07/12 Retired with effect from 10/06/12 Notice of Death 15/12/11 Notice of Death 02/12/12 Notice of Death 26/06/12 In addition departing officers who fail to return the kit items were paid leave compensation.

Refer Table 19.39 for details.


Table 19.39: Officers Departing without Return of Kit Items but paid Leave Compensations Names Abenesh Kissun Makereta Nagusa Lasaro Turagadrau Joseph Titau Total Leave Amount ($) 1,150 869 1,682 2,442 6,143 The above is a blatant disregard of the Force’s Standing Orders.

Payments of leave compensation without returning kit items indicate weak internal controls.

Recommendations  The Force Standing Orders should be complied with at all times.
 The Force must ensure that all Officers Kit items are returned before they depart the organization.

Force’s Comments Leave compensation is on hold due to non-submission of kit clearance from respective stations Table 19.38: Officers Departing Without Return of Kit Items Names Rank EDP No.
Date Depart Remarks Abenesh Kissun PC 4812 78801 Resigned 24/8/12 WPC 4097 PC 4523 PC 4466 PC 4357 WPC 4080 PC 4801 Makareta Nagusa Rupeni Buidole Lasaro Turagadrau Inia Mekemeke Sharmila Devi Mosese Tuicakau Alikisada Naisaboca CPL 1151 Sera Bernard Opetaia Ratuvono Steve Bryan Roko Joseph Titau SSP PC 3410 PC 3968 CPL 3928 77076 Resigned 10/12/12 77496 Resigned 26/6/12 77440 Terminated 9/8/12 77335 Dismissed 15/6/12 77059 Dismissed 25/6/12 77787 Dismissed 25/8/12 51151 Retired 3/7/12 51112 Retired 10/6/12 76379 Death 151/12/11 76947 Death 2/12/12 76905 Death 26/6/12 Leave compensation not paid.
Kit clearance is in the salary file Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Leave compensation not paid Fiji Police Force Section 19: Page 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 19.39: Officers Departing without Return of Kit Items but Paid Leave Compensation Audit has also raised queries that the following officers have been paid Leave Compensation despite them not returning the kit items.
Names Rank EDP No.

Date Depart Remarks Abenesh Kissun Makareta Nagusa Lasaro Turagadrau Joseph Titau PC 4812 WPC 4097 PC 4466 CPL 3928 78801 Resigned 24/8/12 77076 Resigned 10/12/12 77440 Terminated 9/8/12 76905 Death 26/6/12 Leave compensation on hold Further OAG Comments Even though the compensation was not paid but the Kit items were not returned for those officers reported on Table 19.41.
However the leave compensation was not on hold as it was deducted (net off) from the 30 days’ notice and overpayment of salaries for those officers reported on Table 19.42.

19.20 Non Retirement of Accountable Advances A travelling officer shall recoup the travel advance within seven days of completing travel by submission of an acquittal report with supporting documents.
If an advance has not been fully expended, the travelling officer must repay the balance within seven days of completing travel.63 Where an advance has not been acquitted within seven days of travel, the Force Accountant shall effect recovery through a salary deduction from the concerned officers salary within six (6) fortnights.

Upon clearance of the advance, the Force Accountant shall update the advance register, offset the advance account and debit the appropriate expenditure account.
64 The audit noted that a certain officers have not retire the advances paid to them as at date of audit.

06/12/13.

Refer Table 19.40 for details.

Table 19.40: Outstanding Advances Date 14/08/13 Cheque No.
697899 Payee Amount ($) 5,000 Sakeo Raikaci 19/08/13 698022 6,000 Sakeo Raikaci Total 6,000 Details Advance to facilitate the activities at the Police Hibiscus Villa during the 2013 Hibiscus festival lapsed of 65 days from 02/9/13 Advances to cater meals for the officers taking part in the Hibiscus festival lapsed of 65 days from 02/9/13 Non-timely clearance of advances contributes to the large un-reconciled balances in the advance account over the years that may become irrecoverable.
Recommendation The Force Accountant should ensure that recovery actions are instigated on officers who failed to retire advances within seven days upon return from duty.
63 Fiji Police Force Finance Manual 2011 – Section 9.1.11 and 9.1.12 64Fiji Police Force Finance Manual 2011 – Section 9.1.14 and 9.1.15 Fiji Police Force Section 19: Page 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Force’s Comments The following are our responses pertaining to accountable advances.

Payee Details Force Comments Sakeo Raikaci Date Cheque No.
14/08/13 697899 Amount ($) 5,000 19/08/13 698022 6,000 Total 6,000 SakeoRaikaci Advances to facilitate Advance the the activities at Police Hibiscus Villa during 2013 the Hibiscus festival lapsed of from 65 02/9/13 cater meals for the officers taking part the Hibiscus festival lapsed from 65 of 02/9/13 days to days in The advance has been cleared as per JV#063192-01/12/13.The for Acquittal was due to improper receipts and the the matter was referred to Management for decision or for further investigation.
delay For your information we would like to inform you that Police officers mobility is not usually planned unlike other officers in various agencies.

Some cause of the delays in acquittals are that usually officers are to attend to issues with very little time given, as a result submitting of acquittals, processing of acquittals by their immediate Supervisors, etc are not within the time frame because of unavailability or away from the office.
Further, in the discipline Force the communication protocol is very important; hence, whilst the acquittals are channelled through various officers it has surpassed the seven days’ ti efra e Further OAG Comments The Force did not produce to audit evidence of retirement and recovery upon further audit inquiry on 29/09/2014.
19.21 Un-Reconciled Provisional Taxes Paid The Force Accountant is responsible for maintaining ledgers and reconciling balances in such ledgers to ensure the accuracy of financial.65 Natural account in Standard Liability Group (SLG) 84 relates to accounts payable balances that therefore should have a credit balance or zero balance at a particular point in time.66 To facilitate the payment of provisional tax payable by any person in respect of the profits or gains of the trade, profession or vocation of that person, there shall be deducted from any payment made under any contract for services, but not being a contract of employment, including progress payments under a contract, a sum equal to 15 per cent of such payment.
Where any sum has been deducted by any person under the provisions of these Regulations, such sum shall he deemed to be held in trust for the Crown.

67 As at 31/12/13, the provisional tax payable account had a debit balance of $101,75668 indicating more payment in provisional taxes being made than deducted from contracts.
Refer Table 19.41 and Figure 19.11 for balances in the account over the five year period: 65 Fiji Police Force Finance Manual 2011 - Part 15 66 Chart of Accounts – Account Number Structure for Fiji Government 67 Income Tax (Collection of Provisional Tax) Regulations, section 2 (2) and 3 68 Allocation: 1-20101-20999-840602 Fiji Police Force Section 19: Page 41 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 19.41 and Figure 19.11: Provisional Tax Payable Account over the 5 Year Period Year 2008 2009 2010 2011 2012 2013 Amount ($) 26,757 (110,504) (114,286) (101,454) (97,758) (101,756) No reconciliation was done by the Force for the account.
This resulted in more payment made from the account then the tax deducted.

This has increased by 4.09% or $4,000 in 2013.

This could prove that provisional tax has not been credited to the account or have been deducted and erroneously recorded in some other account.

The non-preparation of the reconciliation indicates the laxity of the Force Accounts division which has resulted in the misstatement of the account balance.
Recommendation The Force Accountant should ensure that proper monthly reconciliations are performed and investigate the payments made with the corresponding deduction of provisional tax from contracts paid.

Force’s Comments The debit balance is accumulated from previous years (consistent from 2009-2013).

After detailed verification submission will be made to Ministry of Finance for consideration of write-off.
19.22 Inadequate Maintenance and Missing Accounting Records The Force Accountant is responsible for the safekeeping and proper maintenance of all accounting records or documents of the agency.69 The need to improve record management in all agencies is vital for promoting Good Governance, Transparency and Accountability in the public sector.
It is the responsibility of all staff hierarchy levels in each agency to integrate proper record management upkeep.70 The procurement of any goods, services or work required by Ministries or Department must be initiated either by the issue of a Local Purchase Order (LPO) for any purchases of goods, services or works made locally or by the issue of an indent for any purchase of goods from overseas.71 A minimum of three competitive quotes must be obtained for the procurement of goods, services or works valued at $100 and more but $30,000 and less.72 The Force Accountant or the Senior Accountant must no certify a payment as correct unless they are satisfied that it is in accordance with an LPO, invoice or other authorization that there is documentation that the goods, services or works 69 Fiji Police Force Finance Manual 2011 - Section 17.1.3 70 Public Service Commission Circular No.
10/2011 71 Procurement Regulations 2010 – Section 21 (3) 72 Finance Instructions 2010 – Section 29 Fiji Police Force Section 19: Page 42 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ have been received.73 Immediately after payment has been effected, the Clerical Officers and Administrative Staff must stamp “paid” on all vouchers and supporting documentation to avoid any double payments.74 Within one week of the end of each month, the Assistant Commissioner of Police, Administration and Finance shall submit to the Deputy Commissioner of Police the internal control report.75 The audit noted the following anomalies for payment made;  Absence of three competitive quotations;  Local Purchase orders were not generated and issued for local purchases;  Invoices , receipts and other supporting documents were not attached to justify the payments made;  Payments were made on proforma invoice without Ministry of Finance approval;  Payment vouchers and supporting documents do not have ‘stamp paid’ stamp on it, and  There was no evidence of proper authorization for payment made.
Refer to Appendix 19.8 for details.

In addition, the audit was not provided payment vouchers and supporting documents for expenditure totalling $1,014,052.

Refer Appendix 19.9 for details.

Significant records of financial information were not properly stored by the Force.

The financial records and documents were not properly kept and filed as the storage room was congested.

As a result the audit wasted valuable audit hours in searching and locating the requested financial records.
Refer to Figure 19.12 for pictures taken from the room.
73 Fiji Police Force Finance Manual 2011 – Section 2.8.4 74 Fiji Police Force Finance Manual 2011 – Section 2.8.9 75 Fiji Police Force Finance Manual 2011 – Section 16.1.10 Fiji Police Force Section 19: Page 43 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Figure 19.12 Unsatisfactory Record keeping of Financial Records Past and current financial records of the Force in poor conservative conditions and also non-disposal of old records utilizing storage space and accumulating dust.
The above shows the laxity of the accounts section in the proper maintenance and storage of its records.

In the absence of proper documentations and availability of records payments could not be verified and could be deliberate to conceal fraud and irregularities.

Recommendations  The Force Accountant and Senior Accountant should ensure that payments are only authorized in accordance to section 2.8.4 of the Finance Manual.
 The Force Accountant should check and report on a monthly basis on the record keeping of the payment vouchers within the Force.

 Disciplinary action should be enforced upon officers failing to maintain accounting records and documentations.

 The Force Accountant should strictly comply with section 17.1.3 of the Finance Manual.

 The Assistant Commissioner of Police, Administration and Finance should carry out checks on a monthly basis of records and documents.
 The Assistant Commissioner of Police, Administration and Finance should monitor the records maintained through the internal control report provided in accordance to section 16 of the Finance Manual.
Fiji Police Force Section 19: Page 44 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Force’s Comments Your comments have been noted and the following is our responses: For your information, the filing room for the Accounts section is also for keeping Accounts stationery and other accounts items that are required for safe keeping.

In order to save costs the cartons were kept for to be later used to pack old files and transfer it to Force Archive in Nasese.
The cartons shown in the pictures are of our A4 papers which are kept securely.

Since there was limited space available for the auditors to work, risk of misplacing documents during shifting from one room to another and to become easy accessible of information to the auditors, the management had decided to in-house them in the filing room.

There was clash of audits from Ministry of Finance and Office of the Auditor General also contributed to the situation as reported.
Auditors from Finance were just about to complete when your auditors came in for audit.

In future we would appreciate no clash of audits, please.

19.23 No contract agreement with approved tenderer The Government Tender Board in its Meeting No.

25/2012 held on 08/11/2012 approved to award the supply of Footwear for the Fiji Police Force on ‘as and when required basis for a period of 1 year to Footwear Industries Limited and Ishwar Industries Limited.
Additionally a proper contract should be put in place and vetted by the Solicitor General’ Office with a signed copy to be forwarded to the Fiji Procurement Office.76 A written contract or agreement must be entered into with the approved tenderer for the supply of the goods, services or works tendered.

Legal advice must be sought on the draft contract or agreement.77 Despite the above, the audit noted that the Force did not put in place a contract for the procurements of footwear.
Refer Table 19.42 for procurement made without a contract in place: Table 19.42: Procurements Made From Approved Suppliers without a Contract Date Cheque No.

Payee Amount ($) Remarks 5/02/2013 691719 Footwear Industries 56,875 5/02/2013 691720 Global and Supplies Ltd Safety Civil 36,750 14/06/2013 698834 United Apparel Limited 58,000 Payment for 650 black sandals for Police Officers Government Tender Board Approval Police -Tender No.
CTN 59/2012 Tender approval states that proper contract should be in place but no contract in place.

Payment of 50% balance of the total amount ($73,500) payable for the supply of 3,500 expandable batons Government Tender Board Approval -Tender No.

CTN 10/2012.

Tender approval states that proper contract should be in place but no contract in place Payment of 1,000 official shirt with badge @$58 Government Tender Board Approval -Tender No.
CTN 07/2012 Tender approval states that proper contract should be in place but no contract in place 76 Government Tender Approval – Meeting No.

25/2012 of 08/11/2012 for Tender No.

CTN 59/2012 77 Fiji Police Force Finance Manual 2011 – Section 2.4.15 Fiji Police Force Section 19: Page 45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque No.
Payee Amount ($) Remarks 13/09/2013 698943 Footwear Industries 111,300 26/09/2013 699475 Footwear Industries Total 111,300 374,225 Payment of accounts for the purchase of footwear Government Tender Board Approval Police -Tender No.

CTN 59/2012 Tender approval states that proper contract should be in place but no contract in place.

Payment of accounts for the purchase of footwear Government Tender Board Approval Police -Tender No.
CTN 59/2012 Tender approval states that proper contract should be in place but no contract in place.

While the needs of goods were necessary, it certainly does not require deviations from policies and guidelines.

The above reflect blatant disregard to regulation governing the procurement of goods and services by the Force.

Recommendations  The Force should ensure that a contract is put in place and vetted by the Solicitor General’s office.
 Disciplinary action should be taken for non-compliance with regulation governing the procurements of goods.

 Regulation governing the procurements of goods and services should be adhered to by the Force.

Force’s Comments The contract as per tender terms and conditions was not enforced; However, the agency notes that in order to enforce a contract, it needs to implement performance bond on the said tender.
Given that determination of performance bond was enforced by Ministry of Finance through Fiji Procurement Office in March 2013, the Agency noted that it is a mandatory requirement for a contract for release of funds.

Further, from 2014 the Force has started implementing contracts together with performance bonds.
19.24 Abuse of Prisoners Meal The Clerical Officers preparing a payment voucher must ensure that all information required under Finance Instruction 14-(1) has been included on the payment voucher or attached to it, before passing it to the Assistant Accountant for verification and then to the Force Accountant or the Senior Accountant for certification.78 The Force Accountant or the Senior Accountant must not certify a payment as correct unless they are satisfied that it is in accordance with an LPO, indent, contract, invoice or other authorization.79 Detainees held at various Police stations overnight while awaiting court hearing or further questioning on various reported crimes they commit are provided meals by the Force.
This is charged to prisoner’s 78 Fiji Police Force Finance Manual 2011 – Section 2.8.3 79 Fiji Police Force Finance Manual 2011 – Section 2.8.4 Fiji Police Force Section 19: Page 46 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ meal allocation in the Force’s budget allocation.

The various stations submit the meal claims provided by various restaurants or individuals to Head Quarters for processing of payment.
The meals for the Totogo Police Station were provided by the Fiji Police Gazetted Officers Mess.

The claims are processed by Headquarters and deposited directly to the Mess bank account.

The Mess meal charges per person are as follows:  Breakfast $4  Lunch $5  Dinner $5 The audit noted that officers on duty are abusing the meals by also charging meals taken by them to the claims order book.
The audit noted that officers fill in the names of detainees for a particular day or night twice for the same meal on the same day.

All relevant documentation and approval pertaining to the payment were in order; however, the discrepancy was seen in the Meal order books.

Refer to Appendix 19.10 for a sample of claims processed for Totogo Police Station which indicated discrepancies in the meal order books.
It is apparent that Senior Officers authorizing the payments are not properly verifying the vouchers and the supporting documents which have resulted in the above discrepancies.

Poor internal control exists for the supply of meals to prisoners at Totogo Police Station and has resulted in abuse and corrupt practices.

Recommendations  Appropriate disciplinary measures should be instigated on officers consuming meals provided for people held at the stations at the Force’s expense.
 The Force Accountant and Senior Accountant should ensure that payments are only authorized in accordance to Section 2.8.4 of the Finance Manual.

 The Station Sergeant, Station Officer and Officer in Charge responsible for signing off the Prisoners Meal Payment Certificate should first inspect and verify the Prisoners Meal Order Book to ensure that no extra meal is claimed.
Force’s Comments Your comments have been seriously noted and an officer is assigned to further investigate in order to take appropriate actions against the officers responsible.

All certifying officers are reminded of the importance of verifications and they are to ensure that it is correct before forwarding these relevant documents for payments to Accounts.
19.25 Western Garage Anomalies It shall be the responsibility of the Director Traffic to oversee all matters relating to vehicle usage.80 The Director Traffic must ensure that vehicle records are properly maintained and up to date, fuel and oil usage is closely monitored, servicing of vehicles is regularly carried out, vehicles are properly 80 Fiji Police Finance Manual 2011 – Part 11 Vehicles, Section 11.1.1 Fiji Police Force Section 19: Page 47 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ secured when parked or garaged, drivers understand vehicle procedures as outlined in this section and reporting requirements are adhered to at all times.81 The following weaknesses were noted for resource management by the Western Garage:  There was no proper organization structure in place for the management of the Garage.
The workers are merely working on the posts for years and the workers file maintained by the Divisional Head Quarters – Western only contains leave update and there was no job description filed for the garage workers.

 The Garage officers in charge reveal that there has not been any performance assessment done for the garage workers.

 Only three garage mechanics are looking after the Western Division garage.
As a result a total of fifteen vehicles were grounded at time of audit and the garage workers reveal that those vehicles will only be attended to when they have completed the vehicle that is currently being serviced.

Refer to figures below.


Figure 19.13 Grounded Police Vehicles – Western garage In addition, the audit further noted the following internal control weaknesses for the Inventory and spare parts management:  There is no tally card register for spare parts in use or removed/replaced from vehicles.

 The audit was not able to trace back the spare parts removed from vehicles when new ones were bought.

Spare parts were scattered around the garage.

 There was no register for the daily usage of mechanic tools.
 There was no register for all unserviceable parts; and  There was no board of survey conducted in 2013.

The officer’s at the garage could not recall when the last board of survey was conducted.

Refer below for some detailed images of the above noted anomalies.
81 Fiji Police Finance Manual 2011 – Part 11 Vehicles, Section 11.1.2 Fiji Police Force Section 19: Page 48 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Figure 19.14 Poor Maintenance of Vehicle spare parts – Western garage There was also no stock take done for the fuel that the garage have and the fuels were not properly stored and secured since it is highly flammable and can be misused.

Refer below for some detailed images of the above noted anomalies.
Figure 19.15 Poor Maintenance of Vehicle Fuel drums – Western garage Fiji Police Force Section 19: Page 49 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Moreover the audit noted the following regarding the safety of the garage:  The garage in general is not secured and non - OHS82 compliant.

The garage has been without a main gate since the gate has been damaged and fencing were not maintained with overgrown grass covering the fences.
 There is no security for the garage to ensure safe custody of the garage at night and on weekends.

The garage is largely open for theft of parts and scrap metal business.

 There is no adequate storage area for spare parts, unserviceable vehicles and parts as the audit noted that parts were scattered on the garage compound taking up valuable space.

 There was no fire extinguishers and fire hydrant located around the garage premises.

 The workers protective clothing was worn out due to wear and tear.
 The vehicle ramp in the garage was without proper steps for the mechanics to escape in case of emergency.

Refer to Figure 19.16 for detail pictures of the above noted anomalies.

Figure 19.16 Unsatisfactory Care and administration of the Western Garage Lack of organisation guidance and supervisory capacity from the Force management has resulted in the above anomalies.
Recommendations  The Director Traffic should ensure that measures are immediately taken to ensure the anomalies highlighted above are sorted to safeguard government interest and resources from theft and miss-use.

 The Force should ensure that the General Workplace Condition at the Garage is OHS standards so that work is done in an efficient and at a quick turnaround time.
82 Occupational Health Standard Fiji Police Force Section 19: Page 50 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Force’s Comments Your comments have been noted and following are our responses: The Western Police Garage, including other two police division garages was managed by contracted civilian garage supervisors; as such they did not follow proper laid down system, process and procedures.
We are now appointing established police officers for garage supervisors, who will supervise, coordinate and control the garage activities including the administration.

Some vacant positions have been identified to recruit more skilled staff to address staff shortage in order to enhance the turnaround time for repair of grounded police vehicle.
However, the relevant plans have been put in place to strengthen the administration and accountability of the three Police Garages (Nasese, Lautoka & Labasa ) Force has very old fleet that often breaks down and consume a lot of costs, coupled with financial constraints.

It also contributes for delays in vehicle repairs and maintenance.

In fact majority of these vehicles had surpassed its value and should be boarded and replaced.
Performance management tools have been developed and strict monitoring will be done to assess the performance of the garage employees.

Suitable candidate has been identified to take charge of the stores and to manage spare parts records and unserviceable parts and keep proper accountability of mechanical tools to record in relevant registers.

The board of survey process of boarding of vehicles has commenced and the board of survey of the unserviceable parts will follow after the above has been completed.
Cost effective strategic plan is also in place for outsourcing of vehicles to private garages for major repairs.

Submission has been made for renovation of all police garage to enhance the security.

Directives have been issued to divisions and formations for effective monitoring of fuel usage on a daily, weekly and monthly basis and submission of monthly fuel returns to force transport HQ for analysis prior to onward submission to Commissioner of Police.
Force is in the process of securing funds for construction of proper storage facilities for safe keeping of highly flammable fuels in fuel drums.

Fuel lubricants registers will be adequately maintained to ensure proper usage, control and record.

The empty fuel drums are to be exchanged with the new barrels and this should be also recorded in relevant register.
For your information, an internal audit pertaining to the above issues was also conducted by the Fiji Police Force in November, 2013 with similar findings and the Fiji Police is currently in process of rectifying the above issues.

Minor maintenance work has been done in all the three garages to enhance safety and security and OHS issues and more improvements have been planned in due course.
The main gate at the western garage has been repaired and the cleanliness of the garage has been adequately maintained.

Personnel protective equipment (OHS Compliance) has been issued to all garage employees to enhance the personal safety at workplace.

Proposal has been submitted for construction of hydraulic ramps to minimize risk to garage employees.
Fiji Police Force Section 19: Page 51 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ APPENDICES Appendix 19.1: List of Voided Cheques Cheque No.
Issue Date Remit ID Payee Name 10/1/2013 22/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 24/01/2013 29/01/2013 1/2/2013 1/2/2013 1/2/2013 1/2/2013 1/2/2013 1/2/2013 1/2/2013 1/2/2013 4/2/2013 12/2/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 P-W/MNA 340 P-O/PWS 243 P-O/LIC 244 P-O/PWS 243 P-PAYE P-R/PRB 267 P-R/RHU 208 P-U/HFL 326 P-U/POL 307 P-U/PSA 301 P-U/WES 320 P-V/FDB 266 P-V/HA 263 P-W/DSP 386 P-W/MLT 346 P-W/MSI 348 P-W/MSU 341 P-W/MTA 344 P-W/SPA 323 P-X/FPF 501 PATTE001 FIJIP004 COMMI002 DIRHR001 FORCE002 MAKEW001 POPUL001 X-41701 X-51122 X-60239 P-W/FDB 266 P-V/PRB 267 P-O/CML 241 P-O/LIC 244 P-O/PWS 243 P-R/PRB 267 P-R/RHU 208 P-U/GSM 305 P-U/HFL 326 P-U/NUC 319 P-U/PSA 301 P-U/VNT 313 P-U/WES 320 P-V/FDB 266 P-V/HA 263 P-W/CTC 357 P-W/CTC 368 P-W/DSP 386 P-W/MBA 345 P-W/MLT 346 Nasinu Domestic Cour Police Welfare Schem Life Insurance Corpo Police Welfare Scheme Firca Public Rental Board Housing Authority Handy Finance Limited Police Service Credi Fiji Public Service Wesram Finance Fiji Development Ban Housing Authority Police Welfare Fund Lautoka Domestic Cou Sigatoka Domestic Co Suva Domestic Court Tavua Domestic Court Fiji Police Sports F Fiji National Provid Patterson Brothers S Fiji Police Welfare Commissioner Of Police Director Hrm Force Accountant Make Waqavesi Popular Furniture Li 47170 Ana Luvu Sgt Francis Nagesa Emele Delai Fiji Development Ban Public Rental Board Colonial Insurance Life Insurance Corpo Police Welfare Schem Public Rental Board Housing Authority Good Samaritan Credi Handy Finance Limite Nupw Credit Union Fiji Public Service Viti National Of Tau Wesram Finance Fiji Development Ban Housing Authority Suva City Council Nasinu Town Council Police Welfare Fund Ba Domestic Court Lautoka Domestic Cou Amount ($) Pay Status Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Fiji Police Force Section 19: Page 52 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Cheque No.
Issue Date Remit ID Payee Name 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 21/02/2013 28/02/2013 28/02/2013 13/03/2013 24/04/2013 7/5/2013 25/07/2013 8/8/2013 8/8/2013 8/8/2013 22/08/2013 5/9/2013 19/09/2013 3/10/2013 21/10/2013 31/10/2013 14/11/2013 14/11/2013 22/11/2013 22/11/2013 27/11/2013 27/11/2013 29/11/2013 3/12/2013 5/12/2013 12/12/2013 17/12/2013 20/12/2013 23/12/2013 23/12/2013 27/12/2013 27/12/2013 27/12/2013 31/12/2013 13/03/2013 14/03/2013 14/03/2013 14/03/2013 14/03/2013 14/03/2013 18/03/2013 18/03/2013 18/03/2013 18/03/2013 18/03/2013 18/03/2013 18/03/2013 P-W/MNA 340 P-W/MNA 342 P-W/MND 347 P-W/MSI 348 P-W/MSU 341 P-W/MTA 344 P-W/SPA 323 P-V/HA 263 SUNSE001 VODAF001 X-52796 FIJIP002 FIJIP002 P-W/FIN 400 P-W/FIN 400 P-W/MTA 344 P-W/SPA 323 P-W/FIN 400 P-W/FIN 400 P-W/FIN 400 P-W/FIN 400 HIGHC002 P-W/FIN 400 ASCOM001 P-W/FIN 400 OFFIC003 FIRST001 CENTR003 X-51545 P-W/FIN 400 X-77000 CENTR001 P-W/FIN 400 BONDW001 X-50012 LODHI001 P-W/FIN 400 DATEC001 VTSOL001 SHARM003 BOMBA001 AVISR001 SONAUS001 SUNBE001 X-77618 X-FL247 X-JB582 OFFIC003 P-U/NUC 319 P-W/FDB 266 POSTF001 PUBLI001 SPORT002 VEERA001 Nasinu Domestic Cour Nausori Domestic Cou Nadi Domestic Court Sigatoka Domestic Co Suva Domestic Court Tavua Domestic Court Fiji Police Sports F Housing Authority Sunset Apartment Hot Vodafone Fiji Pc Jitendra Lal Fiji Police Credit U Fiji Police Credit U Chief Executive Offi Chief Executive Offi Tavua Domestic Court Fiji Police Sports F Chief Executive Offi Chief Executive Offi Chief Executive Offi Chief Executive Offi High Court Lautoka Chief Executive Offi Asco Motors Chief Executive Offi Official Receiver First Light Inn Centrepoint Hotel Kishor Kumar Chief Executive Offi Dharmend R Verma Central Rentals Ltd Chief Executive Offi Bondwell Computers F Ip Sakiusa Tikotani Lodhias Travel Servi Chief Executive Offi Datec Fiji Ltd Vt Solutions Sharma Music Centre Bombay Trading Ltd Avis So Nausori Sunbeam Transport Li Tevita Ledua Phul Singh Noa Sukanasau Official Receiver Nupw Credit Union Fiji Development Ban Post Fiji Ltd. Public Service Commi Sport Fund Veera's Kitchen Amount ($) Pay Status Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Fiji Police Force Section 19: Page 53 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Cheque No.
Issue Date Remit ID Payee Name Total 8/4/2013 8/4/2013 8/4/2013 8/4/2013 24/04/2013 4/6/2013 13/06/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 20/08/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 25/11/2013 CHIEF003 FIJIE001 PACIF005 SAVIT001 SUNSE002 X-ZO608 FIJIP002 X-50444 X-51119 X-51607 X-61356 X-76362 X-77050 X-77051 X-77094 X-77409 X-R2163 ABACU001 ASCOM001 COPYE001 DAI-I002 DATEC001 FIJIR002 IMAGI001 JANTY001 JRWHI001 KLEAR001 NAVOS001 QUALI004 RICOH001 RUPIN001 SNPFI001 SOUTH002 TONER001 Chief Administration Fiji Electricity Aut Pacific Sun Savitri's Fast Foods Sunset Express Ulaiasi Lawavou Fiji Police Credit U Isei Vueti Maretino Qiolevu Naulu Lutunicaucau Nacanieli Ravu Pc Vaione Cagica Vinaina Wainivanua Moala Visawaqa Livai Kaiviti Kelepi Gucake Rosi Rupi Kuboutawa Abacus Graphics Asco Motors Copyer Marketing Lim Dai-Ichi (West) Comp Datec Fiji Ltd Fiji Rubberstamp Com Imaging Technologies Janty Enterprises Li J.R White Ltd Klear Water Chemical Navosa Hardware Quality Auto Spares Ricoh Business Centr Rup Investments Limi S N P (Fiji) Ltd South Pacific Bussin Toner Tech (Fiji) Lt Amount ($) Pay Status Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void Void
 Fiji Police Force Section 19: Page 54 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.2: List of Stale Cheques Date Cheque No 1/2/2013 1/3/2013 1/3/2013 1/3/2013 1/3/2013 1/3/2013 1/3/2013 1/3/2013 1/3/2013 1/3/2013 1/4/2013 1/8/2013 1/8/2013 1/8/2013 1/9/2013 1/9/2013 1/10/2013 1/10/2013 1/10/2013 1/10/2013 1/15/2013 1/16/2013 1/17/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/18/2013 1/21/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/ Amount ($) Date Cheque No 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/24/2013 1/29/2013 1/29/2013 1/29/2013 1/29/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/1/2013 2/4/2013 2/4/2013 2/4/2013 2/6/2013 2/7/2013 2/7/2013 2/8/2013 2/12/2013 2/14/2013 2/14/2013 2/14/2013 2/19/2013 2/19/2013 2/19/2013 2/20/2013 2/20/2013 2/21/2013 691426 691425 691424 691423 691422 691421 691420 691419 691417 691416 691414 691413 691412 691411 691410
Amount ($) Fiji Police Force Section 19: Page 55 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque No 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/21/2013 2/25/2013 2/25/2013 2/25/2013 2/26/2013 2/27/2013 2/28/2013 2/28/2013 2/28/2013 2/28/2013 2/28/2013 2/28/2013 2/28/2013 2/28/2013 3/5/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/ Amount ($) Date Cheque No 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013 3/7/2013
 3/8/2013 3/11/2013 3/11/2013 3/11/2013 3/11/2013 3/11/2013 3/11/2013 3/11/2013 3/12/2013 3/12/2013 3/12/2013 3/12/2013 3/12/2013 3/13/2013 3/13/2013 3/13/2013 3/13/2013 3/13/2013 3/13/2013 3/13/2013 3/13/2013 3/13/2013 3/14/2013 3/14/2013 3/14/2013 3/14/2013 3/14/2013 3/14/2013 3/14/2013 3/14/2013 3/18/2013 3/18/2013 3/18/ Amount ($) Fiji Police Force Section 19: Page 56 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque No 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/18/2013 3/19/2013 3/19/2013 3/21/2013 3/21/2013 3/21/2013 3/21/2013 3/22/2013 3/22/2013 3/22/2013 3/22/2013 3/22/2013 3/25/2013 3/25/2013 3/25/2013 3/26/2013 3/26/2013 3/26/2013 3/28/2013 4/2/2013 4/4/2013 4/4/2013 4/4/2013 4/4/2013 4/4/2013 4/4/2013 4/4/2013 4/4/2013 4/5/2013 4/5/2013 4/8/2013 4/8/2013 4/8/2013 4/8/2013 4/9/2013 4/9/2013 900000693104 900000693103 900000693102 900000693101 900000693100 900000693099 900000693097 900000693096 900000693095 900000693094 900000693093 900000693092
Amount ($) Date Cheque No 4/9/2013 4/9/2013 4/9/2013 4/10/2013 4/11/2013 4/11/2013 4/12/2013 4/12/2013 4/12/2013 4/15/2013 4/15/2013 4/15/2013 4/16/2013 4/16/2013 4/16/2013 4/16/2013 4/16/2013 4/16/2013 4/16/2013 4/18/2013 4/18/2013 4/18/2013 4/18/2013 4/22/2013 4/22/2013 4/22/2013 4/24/2013 4/24/2013 4/24/2013 4/26/2013 5/2/2013 5/3/2013 5/3/2013 5/6/2013 5/6/2013 5/7/2013 5/7/2013 5/7/2013 5/7/2013 5/7/2013 5/7/2013 5/7/2013 5/7/2013 5/7/2013 5/9/2013 5/11/2013 5/16/2013 5/17/2013 5/17/2013 5/23/2013 5/30/2013 5/31/2013 6/4/2013 6/4/ Amount ($) Fiji Police Force Section 19: Page 57 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque No 6/4/2013 6/4/2013 6/4/2013 6/4/2013
 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/11/2013 6/13/2013 6/13/2013 6/17/2013 6/21/2013 6/21/2013 6/21/2013 6/21/2013 900000695481 900000695480 900000695479 900000695478 900000695477 900000695476 900000695475 900000695474 695472 900000695641 900000695791 900000695725 900000695860 900000696030 900000696029 900000696027 900000696026 Amount ($) 99 2,268 580 350 164 3,722 327 700 30 106 560 2,207 30 1,492 4,904 309 157 Date Cheque No 6/21/2013 6/21/2013 6/21/2013 6/21/2013 6/21/2013 6/21/2013 6/21/2013 6/26/2013 6/27/2013 6/27/2013 6/27/2013 6/27/2013 6/28/2013 6/28/2013 Total: 900000696025 900000696024 900000696023 900000696022 900000696021 900000696020 900000696019 696208 900000696268 900000696246 900000696242 900000696240 696391 696334 Amount ($) 2,184 228 220 165 182 52 6,250 5,305 60 45 50 1,171 395 2,900 2,720,509 Fiji Police Force Section 19: Page 58 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.3: List of Outstanding Advances Chq No./Date 691231 - 16/01/13 692000 - 12/02/13 692071 - 15/02/13 692072 - 15/02/13 692958 - 13/03/13 698436-28/08/13 699216-18/09/13 699774-04/10/13 699996-11/10/13 Amount ($) 1,540 COP Payee 787 Luke Rogoyawa 3,267 N Lesi 1 COP 405 Semisi Ika Rabonu 678 Peceli Galuvakadua 1,000 Rusiate Tudravu 358 Timoci Naulu 1,380 Tevita Waqabaca 699972-11/10/13 300 Bitukula Waqanui 700492-25/10/13 2,910 Tupa Talemainiusiladi 378 Camp Commandant 700617-30/10/13 700999-12/11/13 78 Shalvendra Naicker 108 Josaia Ece 701062-14/11/13 99 Isikeli Vuniwaqa 701075-14/11/13 701064-14/11/13 701177-15/11/13 351 Laisenia Tawalesu Joji Ravaga 189 117 Sivoki Tuwaqa 701275-19/11/13 (60) Tomasi Koroisavulevu 701306-20/11/13 500 Matelita Daveta 701418-22/11/13 189 Isireli Pareti 701427-22/11/13 701413-22/11/13 3,776 Rajeshwari N 441 Tira U 701483-26/11/13 2,270 Tito Elo 701557-27/11/13 378 Josaia Ece 701559-27/11/13 701606-27/11/13 Josaia Sukani 180 450 Ravuama Matata 701569-27/11/13 701570-27/11/13
 701692-28/11/13 360 Authur Paulino 864 Kishore Kumar 1,842 Tito Elo 54 Robert Hill 701866-03/12/13 2,520 Pauliasi Lutunauga 1,202 Ravin Deo 701954-05/12/13 1,940 Samuela Laliqavoka Fiji Police Force Details Advance to cater meals for various officers engaged in docket inspection in ND, WD and ED Advance to cater expenses for CP's TOD in WD wef: 13/02-15/02/13 Advance to facilitate for contingent commander Unmil in Liberia Advance to cater for meals and accommodation for police rugby league team- 52447 Aporosa Lutunauga Acc adv_14/3-18/3/13 Advance to cater for the 2nd RFL in WD Advance to cater for his trip to Shanghai China Advance to cater for his trip to Dublin, Ireland wef 15/10/13 Advance to cater for meals and accommodation for central division boot camp wef 11/10/13-13/10/13 Advance to cater for lunch and refreshment for IB OPS meeting and security landscape survey wef 11/10/13 Advance to cater for the launching of the Duavata community policing model in Ra district on 01/11/13 Advance to cater for meals for the two special constable deployed to Ba police station for the upgrading of cell block Advance to cater for the ND tour Advance to cater for meals for sc2051 Ilaisa Toroca for the Rakiraki trip wef 12/11/13-15/11/13 as per details attached Advance to cater for meals for the above named officer while on official tour to Kadavu wef 20/11/13-29/11/13 Advance to cater for meals while touring ND on survey wef 14/11/13 Advance to cater for the Taveuni tour wef 17/11/13 Advance to cater for meals while conducting tribunal wef 27/11/13- 01/12/13 Advance to cater for 4 nights and 1 meal for the band personnel during their Kadavu tour wef 23/11/13 Advance to cater for the purchase of gifts items for the delegation travelling to china Advance to cater for meals while attending court in Koro island wef 23/11/13-30/11/13 Advance to cater for the purchase of fuel for the northern division tour Advance to cater for contingency fund to facilitate any official function
 hosted by A/CP on his trip to Vanuatu Advance to cater for the bill board and banner for the launching of the Duavata concept in Naselesele Taveuni wef 27/11/13 Advance to cater for meals for SC Leone Rokowai who has been selected to be clerk of work at Taveuni wef 29/11/13 Advance to cater for meals for four officers on site survey at Levuka PS Advance to cater for 5 nights while attending the drug operation in Taveuni wef 27/11/13 Advance to cater for meals for Rotuma trip wef 29/11/13-10/12/13 Advance to cater for the ND economic crime tour Advance to cater for contingency fund to cater for their trip to Singapore wef 02/12/13 Advance to cater for meals for SC2665 Naivasi while escorting prisoners to Levuka police station Advance to cater for accommodation air fare and meals for WPC 3348 Elina Cerei while in Kadavu for court sitting wef 05/12/13 Advance to cater for meals and contingent fund for 5 BMU officers Section 19: Page 59 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Chq No./Date Amount ($) Payee Details 648 Uate Rogo 702042-09/12/13 702171-11/12/13 702122-11/12/13 2,530 Pene Harry John 500 Nacanieli Ravuraboto 126 Niadere Stolz 702208-12/12/13 300 Marisiale Bete 702193-12/12/13 540 Sevuloni Masitabua 702287-12/12/13 135 Joji Ravaga 702327-13/12/13 220 Maria Maopa 7026817-20/12/13 703079-30/12/13 703080-30/12/13 703085-30/12/13 703068-30/12/13 703069-30/12/13 Total: 1,500 Ratu Sailosi 1,000 DPC-ED 1,000 DPC-ND 700 CO-CENTAL 200 DIR-CID 200 DIR-IB 40,452 undertaking general survey on the police institutions in WD and ND wef 09/12/13-19/12/13 Advance to cater for meals while in WD upgrading the internet connection as per details attached.
Advance to cater for the passing out parade graduation wef 20/12/13 Advance to cater for the boat master training wef 17/12/13-20/12/13 Advance to cater for meals while attending court in Taveuni wef 13/12/13-18/12/13 Advance to cater for meals for SC 4255 Taufa while in Kadavu installing solar in place of PC Dharmend Roy Advance to cater for meals for 5 CID officers conducting investigation in WD Advance to cater for meals while attending court in Taveuni wef 16/12/13- 17/12/13 Advance to cater for meals while attending court in Taveuni wef 16/12/13- 23/12/13 Advance to cater for the repair cost of Ba police Bure Advance to cater for the new year’s operations refreshment Advance to cater for the new year’s operations refreshment Advance to cater for the new year’s operations refreshment Advance to cater for the new year’s operations refreshment Advance to cater for the new year’s operations refreshment Fiji Police Force Section 19: Page 60 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.4: PL08 Grade Recruitments Name Post Anomalies in Recruitment Procedures Koini Rokodrausa Anarieta Iribalavu Livia Vakere Losalini Rosi Mavis Eleni Fatiaki Melisa Talei Sorokibau Roneel Renay Sharma Sakiusa Nailoloku Stella Rogoyawa Sovaia Adivulivosa Sheetal R Nand Anaseini Tikomainamibia Naomi Tava Senitiki Dinayacavou Seremaia L Koroi Shafrina B WPC 4875 WPC 4873 WPC 4878 WPC 4879 WPC 4881 WPC 4882 PC 4953 PC 4957 WPC 4890 WPC 4889 WPC 4888 WPC 4872 WPC 4883 WPC 4886 PC 4982 WPC 4887 Ilisapeci Waqanivonokula WPC 4874 Inoke Ovasisi Komal Kavita Kumar Shaneel Anand Komal Kritika Lal Rishma Reshika Deo Rita T Vakadranu Ratu Lepani Rokodudu Ratu Tevita Mataitoga Taina Mulo PC 4983 WPC 4876 PC 4981 WPC 4877 WPC 4884 WPC 4885 PC 4954 PC 4955 WPC 4892 No Police and Medical clearance done with an Incomplete Application for Enlistment No Police and Medical clearance done No Police and Medical clearance done with an Incomplete Application for Enlistment.
There was no Birth Certificate, TIN Letter or Form 7 Examination reports/ Form 6 report provided No Police and Medical clearance done or TIN letter provided No Police and Medical clearance done nor Examination or School Reports provided No Police and Medical clearance done with an Incomplete Application for Enlistment nor Examination or School Reports provided Fiji Police Force Section 19: Page 61 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.5: Unidentified FNPF Membership Ref Year Line # Sheet # First Name Surname Amount ($) A4228 M. MOHAMMED SAMEEN MOHAMMED MOHAMMED 4268 SAMEEM MOHAMMED SAMEEM MOHAMMED 4268 SAMEEM KRISHNA BULI NANISE NANISE NANISE T BALE BAI KRISHNA RABUATOKO RABUATOKO RABUATOKO RABUATOKO RABUATOKO ABDUL ABDUL ABDUL ABDUL ABDUL ABDUL AJINESH AKITA ALISANA ALISANA ALISANA AMANI 2425180 0 AMINIO APENISA AVINESH BAI BAI BAI BAI BAI BALE 2426915 0 EDWIN 2426915 0 EDWIN 1108783 0 EFEREMO KUBUNAVANUA VUNITURAGA 2111859 0 EPELI EPELI EREMASI ESERA 4175 B4175 4170 4170 4170 Q RAM RAM RAJU RAJU 25891 25675 1276 2700103 0 ETA 819417 N 51328 C/021 C/021 2565468 0 1404148 0 IFEREIMI IFEREIMI IFEREIMI IFEREIMI ILIESA ISIMELI 0 J JAG JOELI JOELI JOELI JOELI JOELI JOELI JOELI JONA 425725 0 JONACANI QK996 1711996 0 JONE 0 425725 JONE
 0 425725 I4334 14334 I4334 14334 I SORO LELEINOVO LEVUI KOROI DAVUI MASIBALAVU MASIBALAVU MASIBALAVU MASIBALAVU NAMANULEVU U RATUKADREU PRASAD RAVUAMA LUTUMAILAGI LUTUMAILAGI LUTUMAILAGI LUTUMAILAGI LUTUMAILAGI LUTUMAILAGI ROPA TUSA ROPA ROPA Fiji Police Force Section 19: Page 62 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Ref Year Line # Sheet # First Name Surname Amount ($) JONE 0 425725 JONE 0 425725 JONE 0 425725 JONE 0 425725 JONE 425725 0 JONE 2224251 0 JONE 2205712 0 JONE 0 425725 0 JONE 425725 JONE 0 JONE JONE 0 JONE JONE 0 JONE JONE JONE JONE 0 JONE 0 JONE 0 JONE 0 JONE 0 JONE 0 JONE 0 0 JONE JOSEFA JOSEFA JOSEPH JOSEVA JOSEVA 425725 425725 425725 425725 425725 425725 425725 425725 2422762 0 DY725 425725 425725 DY725 DY725 ROPA 719556 JOSEVATA 25495 KELEVI 0 KINIVILIAME GS556 LAISENIA LAISENIA 2020357 0 LASARUSA LEMATT LIVAI LOATA 2502188 0 LUKE MAIKA 2426828 0 MAIKA 2102698 0 MARIO MERE MERE MERE MERE MERE MERE MERE MERE MERE YB188 C/025 C/025 C/025 ROPA ROPA ROPA ROPA ROPA R ROPA ROPA
 KOTOIWASAWASA ROPA CIWA ROPA SERU ROPA ROPA ROPA ROPA ROPA ROPA ROPA ROPA ROPA ROPA KOROI KOROI N SELO NASAU SOVANIVAUVAU RATILA CAMA CAMA L SULIANO S K. WAQAVATU M T RAILECE RACELE RAILECE RAILECE RAILECE RAILECE RAILECE RAILELECE RAILECE Fiji Police Force Section 19: Page 63 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Ref Year Line # Sheet # First Name MERE MESULAME MESULAME MIKAELE MISAELE MOROTIKEI RAKIM4332 MUA RAKIM4332 MUA RAKI MUA RAKI M4332 MUA MUA RAKI MUA M4332 RAKI MUA M4332 RAKI 1001915 0 N 2535853 0 NACANIELI 2703511 0 NAPOLIONI NAIVILA 52162 UH261 MX486 NARARA NAVNEET 1716236 0 NAWADOLE OSEA 2525295 PAULA 2415928 0 PAULA 2108261 0 PAULA 2302141 0 PAULA PAULIASI 2509420 0 PAULIASI 1324486 0 PEAI PENI PENI PENI 2521695 0 PENI 2423178 0 PENI PENI PENI PENI PENI PENI 2502269 0 PENI PENI 2502269 0 PENI 2502269 0 PENI 2502269 0 PENI 2502269 0 PENI 2502269 0 PENI 2502269 2189 Y8269 Y8269 25905 PETERO RAJENDRA BULA 0 RATUKADREU J N 51328 0 RATUKADREU
 2108261 0 RATU 819417 819417 2224999 0 RICKLESH 2503176 0 ROHITESH Surname RAILECE M. VORETE FESAITU FESAITU FESAITU FESAITU FESAITU FESAITU FESAITU DAINITERI N VADIBAU S TUKOLI W WARA KATONI TAGICAKIBAU COLAMOTO RASALOLO TOKALAU TOKALAU MATEIWAI BATI MATEIWAI MATEIWAI MATEWAI RARAWA SENILOLOKULA SENILOLOKULA SENILOLOKULA SENILOLOKULA SENILOLOKULA SENILOLOKULA SENILOLOKULA RAQAUQAU PRASAD WARA UH261 J N Amount ($) COLASAU 27100 RASOQOSOQO C001 C/601 Fiji Police Force Section 19: Page 64 ROMIL PRAKASH REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Ref Year Line # Sheet # First Name Surname Amount ($) ROMIL RONIL ROPATE 2423498 0 RUPENI 2090 2423498 1518266 1 RUSILA 672 1518266 SAILOSI SAILOSI SAIRUSI 1626835 1 SAKIUSA S4223 SALANIETA SAMISONI SAMLESH 1325958 0 SAMUELA 2426171 0 SAMUELA SHAW 2219664 0 SANDEEP 107 2219664 726456 SATISH SEFETI SEMESA SEMESA C/018 SEMESA C/018 SEMESA SEREMAIA SETAREKI SETEFANO SETEFANO SILIVA SINGH SIRELI SOLOMONE 51467
 2303054 0 SULIANO SUSANA SUSANA SUSANA SUSANA SUSANA SUSANA SUSHIL TAGIVAKATINI 77881 77881 1313644 0 TEMESI 2004308 0 TURAGA 2595045 0 URAIA 4184 U4342 VERENIKI V4184 VERENIKI VERENIKI V4184 VERENIKI VERENIKI VERENIKI VERENIKI 2014911 0 VICKLESH 2105142 0 VILIAME 1323961 0 VILIAME 2310532 0 VILIAME 4184 4184 4184 PRAKASH PRAKASH SIVO BULIMAIBAU ADIRAICA N V CADI QERA SENINEI M LAL SHARMA M LOTE LOTE LOTE LOTE N LUVU S. S C R S K K LEWADRAU LEWADRAU LEWADRAU LEWADRAU PRASAD YABAKI VALILOA DRIU DRIU DRIU DRIU DRIU DRIU DRIU K NAISARA Fiji Police Force Section 19: Page 65 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Ref Year Line # Sheet # First Name Surname Amount ($) 207 2010 208 2011 209 2011 210 2012 211 2009 212 2010 213 2009 214 2009 215 2010 216 2010 217 2010 218 2010 TOTAL 331 210 210 208 309 365 217 216 240 371 226 225 12 20 19 15 3 8 16 5 19 16 7 17 1323916 0 VILIAME 2589422 0 VILIKESA 2589422 0 VILIKESA 2589422 0 VILIKESA 2119401 0 VULI MW916 25422 WAME WATISONI W2845 WATISONI 2845 WATISONI 2845 2326845 0 WATISONI WATISONI 2845 WATISONI 2845 VALI KALOU KALOU KALOU RATU NEITONI NEITONI NEITONI NATONI NEITONI NEITONI 26 80 75 65 28 104 122 98 133 48 92 23 15,151 Fiji Police Force Section 19: Page 66 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.6: Unauthorized Payment of Extra Hours Date Chq # Vendor Amount ($) Details of Payment 24/12/2013 702905 Loata R Qica 1,279 Being payment of extra hours wef 30/11/13 to 20/12/13 24/12/2013 702924 DimereDioge 24/12/2013 702928 IlisoniNaivalu 1,453 2,014 Being payment of extra hours wef 8/11/13 to 13/12/13 – no documents pertaining to the approval of the overtime Being payment of extra hours wef 07/11/13 to 12/12/13 – no documents pertaining to
 the approval of the overtime 31/12/2013 703236 Ana Luva 31/12/2013 703263 Peni Senilolokula 31/12/2013 703264 SaimoniSuka 31/12/2013 703260 MiriamaWaqatabu 31/12/2013 703270 AtecaRogocake 23/12/2013 702803 KelerayaniPillay 24/12/2013 702915 EmeleTavaga 24/12/2013 702910 Joana Seruvatu Rosa M S Vakaloloma 31/12/2013 703269 697763 9/08/2013 JosevaCevaloa 28/11/2013 701627 TalicaRaitekiteki 31/12/2013 703267 InokeRauci Total 1,010 Being payment of extra hours 1,984 Being payment of extra hours wef 18/11/13 to 30/12/13 1,265 Being payment of extra hours wef 10/12/13 to 30/12/13 993 Being payment of extra hours wef 14/12/13 to 30/12/13 869 Being payment of extra hours wef 03/12/13 to 30/12/13 407 Being payment of extra hours wef 25/11/13 to 21/12/13 658 Being payment of extra hours wef 11/12/13 to 20/12/13 655 Being payment of extra hours wef 10/12/13 to 20/12/13 627 Being payment of extra hours wef 10/12/13 to 30/12/13 13,214 1,180 Voucher missing 424 Voucher missing 631 Voucher missing 2,235 15,449 Fiji Police Force Section 19: Page 67 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.7: Excessive Leaves – Civilian & GWEs Name Leave c/f Salary ($) Amount (Leave Liability) ($) Ana N Tau Devi Kanchan Elizabeth Peters George Satakala James Kalougivaki [DR] Jolame Uacyisrael Jovesa Cevaloa Krishna Chand Luse Tuitoga Loata Benaca Kuruwale Mereoni V Biumaiwai Mereani Moroivalu Mohammed B Aiyaz Naomi Tuitoga Ponnu S Goundar [DR] Peni Senilolokula Praneel Kumar [DR] Rohini Lata Sanjay Kumar Sainiana Tivi Tawake Tasel Salem Venina Miller Vandana Samad Yashmin Lata Apete Tamani Cama Scott Rupeni Bulivou Tiko Akeai Koroi Jovilisi Josese Cakau Semisi Kama Tulia Tuikenawa Total 10,724
Fiji Police Force Section 19: Page 68 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.8: Payment Anomalies Appendix 19.8.1: Absence of Competitive Quotations Date Cheque No.
Amount ($) Allocation Details Audit Remarks 20/08/2013 698242 6,000 PO Account 1/05/2013 694341 7,958 12010120101079999 9/07/2013 696540 8,558 12010120101060401 22/10/2013 6700404 250 12010120101030101 8/11/2013 2,550 12010220101050406 21/03/2013 693188 5,874 12010120101059144 6/05/2013 694436 4,600 12010120101030101 Total 35,790 Payment of account to Bale Investment for the Hire of Sound System – Hibiscus Committee (Albert Park) Payment of CCTV equipment for G77 meeting operations from Professional Electronics Payment of Airfare to Lodhias Travel for ASP Ulaiasi Ravula to Lyons France 5/07/13 – 12/07/13 Payment for hire of Nasese Bus from Nasinu to Nasova for Commissioner’s 3r quarter parade Payment for hire of Sunset Bus to cater for Force Band official engagement Payment of 2 motor mowers and 4 brush cutters from Courts Fiji Limited for camp commandment Payment of helicopter charter to Island Hoppers which was to be used during G77 operations.
No competitive quotes obtained No competitive quotes and no delivery docket attached Absence of at least 3 competitive quotes.

Only 2 quotes attached to the voucher Appendix 19.8.2: Absence of Proper Approvals and Bills to Substantiate Payment Made Date 26/02/13 Cheque No.
692488 Allocation Amount ($) 41,074 12010120101030101 26/03/13 693346 46,927 12010120101030401 19/07/13 697438 45,925 12010120101030401 30/07/13 697424 43,476 12010120101040422 12010692011040422 31/05/13 695376 43,546 12010120101040422 12010120101040522 20/12/13 702684 32,068 12010120101030401 Details Audit Remarks Payment of Telecom Bill for the month of February 2013 Payment of Vodafone bill for the month of February 2013 Payment of Vodafone bills for June 2013 – Vodafone Fiji Payment of electricity bills for Police HQ – June $38,380.19 Northern and Western division June-July - $5,095.34 Payment of account for month of March & April 2013 – Police HQ - $43,135.12 month of March & April – Colo-i-Suva C/post - $411.13 Payment of Vodafone bill No approval to the payment made 31/05/13 695372 2,930 12010491011030401 Payment of Vodafone Bill for the No bill attached to Fiji Police Force Section 19: Page 69 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque No.
Amount ($) Allocation Details Audit Remarks 28/06/13 696381 358 12010120101030401 28/06/13 696381 11,419 27/02/13 692535 46,443 1201012010059144 21/05/13 695002 34,561 12010120101030401 23/05/13 695086 36,996 1201069201130401 12/12/13 702283 54,447 12010120101030401 30/04/13 693515 334 12010820101040422 28/03/13 693495 23,318 12010120101040422 14/03/13 693001 40,708 12010120101030401 27/02/13 692435 46,443 12010120100059144 13/02/13 692087 53,797 12010491011040422 28/02/13 692632 21,220 12010120101040522 Total 625,990 month of May 2013 – Vodafone Fiji Payment of Vodafone Flash net account for the month of April 2013 - Vodafone Fiji Payment of Vodafone bills for the month of May: Western: $4,695 Northern: $3,029 Eastern: $3,695 $11,419 -Vodafone Fiji Payment of Vodafone post pay account for Jan 2013 Payment of Telephone bills account for the month of April 2013 for various offices – Telecom Fiji Payment of telephone bills for western division for the month of April 2013 – Telecom Fiji Payment of Telecom bill Payment of electricity bills for Totogo Police station – Fiji Electricity Authority (FEA) Payment of electricity a/c for March 2013 for Police HQ Payment of Telephone bills account for the month of February, 2013 for HQ division - Telecom Fiji Payment of Vodafone Bill for the month of January 2013 – Vodafone Fiji Payment of FEA bills - - - Nabua P/S Nov 2012- Jan 2013 $18860 Valelevu Prosecution Nov 23rd 2012 –Dec 21st 2012 $280.14 Totogo P/S Nov 2012- Jan 2013 $34,656.69 Payment of acct for the month of Oct 2012-Jan 2013 for Navosa, Nasese, CID/HQ & FPA – Water Authority of Fiji substantiate the payment made No approval & bill attached to substantiate the payment made Fiji Police Force Section 19: Page 70 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.8.3: Payments Made Without Supporting Documents Attached Date 01/02/13 Cheque No.
691666 Amount ($) Allocation Details Audit Remarks 3,676 12010120101030401 Payment of damages on rental vehicle LR402 from AVIS.

Audit noted that an investigation was not carried out in regards to the accident to the vehicle.

No Accident Report was attached to substantiate who’s at fault for the damages the rental vehicle received as the cost was borne by Fiji Police.
Payment processed on proforma invoice Payment processed on proforma invoice and there was no delivery docket There was no supporting documents attached to the payment records There was no evidence of approval for payment made.

There was no evidence of approval for payment made.

There was no supporting document attached for total meal disbursed of $23,316.

There was no contract was attached to the payment records.
There was no LPO or competitive quotes attached 08/07/13 696604 17,034 12010120101040321 24/07/13 697167 1,514 12/07/13 696840 2,800 12010120100059144 Payment of supply and installation of cooking appliances for main kitchen at Nasova Payment of computer accessories from Bondwell Computers for awareness training program for Interpol – eastern division the for Payment purchase of 1 gear box for GN470 F/104 Valelevu Police Station to Alarm Trading Ltd 28/12/13 703035 12010120101861210 Payment for Police 13/06/13 695783 4/04/13 693553 11/07/13 696768 79,122 4,904 18,951 19,788 Welfare Scheme 12010120101010101 Payment of arrears of acting allowance for 10 officers 12010120101010101 Payment of salary for pay 7/13 which was from bank reversed due to miss-postings 12010120101010101 Being 12010120101861920 12010120101861902 23/12/13 702841 LPO Account 30,492 30/12/13 703186 12010120101040203 20,439 12010120101130101 Ltd of payment salaries the new for recruits wef 01/07/13 – 15/07/13 Payment made to Medica Pacifa South Pacific for Pathology equipment as per Tender # CTN 17/2013, -Payment made to Sky the Technologies purchase and repair of handheld radios and portable repeater.
for Fiji Police Force Section 19: Page 71 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date 14/02/13 Cheque No.

692057 Amount ($) 6,700 30/12/13 703280 30/12/13 703139 34,712 18,607 Allocation Details Audit Remarks However no proper invoice was provided by the caterer.

However supporting attached.

there were no documents No work done by Contractor when this payment was processed.
12010120101570301 Payment of advance to Unaisi Officer for Vunilaoqa incurred expenses during Community Policing Symposium to pay Taveuni Kitchen Delights.

12010120101040321 Payment to Hery’s Construction for the maintenance of Singles Mens Quarters.

12010120101080423 Payment via to Hery’s for Construction Totogo of fencing boundaries.

1st payment of $23,258 paid 702095.

However, 2nd payment cheque was voided.


– Cheque # 703289 was issued on 30/12/13 to pay company $18,607 the Total 258,739 Appendix 19.8.4: Payment Vouchers Not Stamp “Paid” Date 25/01/13 Cheque No.
691484 Amount ($) Allocation Details Audit Remarks 171 12010720101020101 25/01/13 691484 786 12010120101030301 03/06/13 695427 32,984 12010120101040202 31/12/12 692025 376 12010320101050632 Payment of wages for JB 258 Tevita Vakaotia for pay 02/2013 Being payment of meal allowance for accounts salaries staff working overtime.
Payment of printing & binding Fiji Police Force Standing Orders to Extreme Stationery & Printery Payment of Compressor for Maritime Border to Vinod Patel Payment voucher was not stamped paid Payment voucher was not stamped paid and there was no delivery docket attached to the payment voucher Total 34,317 Appendix 19.8.5: No Proper Authorization Obtained Date 26/09/13 Cheque No.
699482 Allocation Amount ($) 9,610 12010120101040321 12010120101059144 Fiji Police Force Details Audit Remarks Payment to Vinod Patel Audit noted that there was no Minute attached and approval was given by store man – Anthony Solo Section 19: Page 72 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.9: Source Documents not verified Chq# Date Payee 29/07/2013 VITI OFFICE STATIONE 29/07/2013 AUSTRALIA & NZ BANK 29/07/2013 BANK OF BARODA 29/07/2013 BRED BANK 29/07/2013 COLONIAL NATIONAL BA 29/07/2013 WESTPAC BANKING CORP 29/07/2013 DIRECTOR NIB 29/07/2013 FLOWERS FOR LIFE 29/07/2013 Colonial Insurance 29/07/2013 Life Insurance Corpo 29/07/2013 POLICE WELFARE SCHEM 29/07/2013 COMMISSIONER OF POLI 29/07/2013 Housing Authority 29/07/2013 NUPW Credit Union 29/07/2013 FIJI PUBLIC SERVICE 29/07/2013 WESRAM FINANCE 29/07/2013 Public Rental Board 29/07/2013 NASINU TOWN COUNCIL 29/07/2013 Fiji Development Ban 29/07/2013 SUNRISE BATTERY AND 26/08/2013 FIJI ELECTRICITY AUT 26/08/2013 HOTEL NORTHPOLE 26/08/2013 Colonial Insurance 26/08/2013 Life Insurance Corpo 26/08/2013 POLICE WELFARE SCHEM 26/08/2013 Housing Authority 26/08/2013 NUPW Credit Union 26/08/2013 FIJI PUBLIC SERVICE 26/08/2013 WESRAM FINANCE 26/08/2013 Public Rental Board 26/08/2013 NASINU TOWN COUNCIL 26/08/2013 MANAINI MILLS 29/08/2013 FIJI ELECTRICITY AUT 29/08/2013 TELECOM FIJI LTD 29/08/2013 VODAFONE FIJI 21/08/2013 PC PETER BROWN 21/08/2013 POPULAR FURNITURE LI 21/08/2013 WAINIQOLO VERETAIYAC 5/09/2013 AUSTRALIA & NZ BANK 5/09/2013 BANK OF BARODA 5/09/2013 COLONIAL NATIONAL BA 5/09/2013 WESTPAC BANKING CORP 25/07/2013 RAKESH CHANDRA 25/07/2013
 KAIAVA TADRAU 26/07/2013 BOMBAY KHANA KHAZANA 26/07/2013 26903 UATE ROGO 26/07/2013 MAHARAJA MINI MART 19/08/2013 SYS TECH SIGNS 19/08/2013 WPC RAJESHWARI NAICK 19/08/2013 WATER AUTHORITY OF F 19/08/2013 VINOD PATEL & COMPAN Amount ($) Fiji Police Force Section 19: Page 73 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Chq# Total Date Payee LAUTOKA HOTEL TELECOM FIJI LTD TOKATOKA RESORT HOTE 18/01/2013 RAMASWAMY GOUNDER 19/09/2013 COMMISSIONER INLAND 13/11/2013 COMMISSIONER INLAND 20/08/2013 Colonial Insurance 20/08/2013 Life Insurance Corpo 20/08/2013 POLICE WELFARE SCHEM 20/08/2013 COMMISSIONER OF POLI 20/08/2013 Housing Authority 20/08/2013 NUPW Credit Union 20/08/2013 FIJI PUBLIC SERVICE 20/08/2013 WESRAM FINANCE 20/08/2013 Public Rental Board 20/08/2013 NASINU TOWN COUNCIL 9/07/2013 EXTREME STATIONERY&P 9/07/2013 S FIJI AIRWAYS TRAVEL 22/07/2013 BRED BANK 3/09/2013 3/09/2013 NCSMED 3/09/2013 PATTERSON BROTHERS S 3/09/2013 RAM'S MAINTENANCE 3/09/2013 ROYAL HOTEL 3/09/2013 3/09/2013 3/09/2013 PC EPI MAU VEIMOSOI 3/09/2013 SGT RAJESH KRISHNA 3/09/2013 PC TIMOCI NAULU 3/09/2013 PC SHALEND SASHI KRI 4/09/2013 4/09/2013 4/09/2013 4/09/2013 4/09/2013 4/09/2013 MODERN STATIONERY & 4/09/2013 NUTECH OFFICE SUPPLI 4/09/2013 OFFICE 2000 + LTD. 4/09/2013 ON-TIME UPHOLSTERY 4/09/2013 PARTNERS LINS COMPAN 4/09/2013 SUVA BOOKSHOP 4/09/2013
 4/09/2013 WATER AUTHORITY OF F 4/09/2013 4/09/2013 PC Josua Gagalia Cha 4/09/2013 4/09/2013 VAKURU SAWALU 4/09/2013 ALVINS ELECTRICAL SE 4/09/2013 BLIGH WATER SHIPPING 4/09/2013 DYNAMIC SOLUTIONS 4/09/2013 MEDICA PACIFICA SOUT 4/09/2013 SYS TECH SIGNS 4/09/2013 4/09/2013 VINOD PATEL & COMPAN FIJI ELECTRICITY AUT FIJI RUBBERSTAMP COM J MANEKLAL & SONS LT JANTY KANVAN LIMITED LAUTOKA HOTEL TOKATOKA RESORT HOTE TIMOCI RAVOUVOU TOKA 51744 WAQA CAVUILATI TEMPLETEC FIJI LTD Amount ($) Fiji Police Force Section 19: Page 74 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Appendix 19.10: Examples of Prisoners Meal Abuse A) Payment Voucher # 693076 1) Tax Invoice # 4891 of 01/01/13 to 15/01/13 Name of Prisoner Station Date Meal Type Book # Remarks Extra Claimed Amount Lepani Saurusi Totogo p/s 02/01/13 Lunch Cell Block 03/01/13 Lunch P.M.T Totogo p/s Cell Block Totogo p/s Totogo p/s 09/01/13 Dinner 10/01/13 Dinner 04/01/13 Breakfast Sakeasi Lotawa Tomasi Sinudamu Marika Mata - - Totogo p/s 07/01/13 Lunch 20169 ($) 4 4 4 4 3 8 This name appeared twice on the same day for same meal but was recorded different in meal order book.
The meal order book has 2 names entered only but in the summary of prisoners meals the attached the voucher, it’s entered as 3.
Total meals entered is 8, however in the summary it’s written 10 in total 2) Tax invoice 4895 of 15/1/13 to 31/1/13 Name of Prisoner Station Date Meal Type Book # Remarks Rusiate Cakacaka Totogo 16/01/13 Lunch Leone Buli Totogo 16/01/13 Lunch Rusiate Cakacaka Totogo 17/01/13 Lunch 18/01/13 Lunch    21/01/13 Dinner 18123 18425 Leone Buli Marika Vakabua Andrew Kamal Rusiate Cakacaka Eremasi Cokaisura Josefa Tukuna Eseroma Vakacegu Totogo p/s Central p/s  Totogo P/s Cell Block – Govt Building Suva Amount Extra Claimed ($) 4 4 4 4 16 8 Name appeared twice in separate books for lunch on 16/01/13 in the same station.
Name appeared twice for the same meal on the same day but was recorded in 2 separate meal books.

This name appeared ones in Book No.

18109 for Central P/s on 18/01/13 Lunch and also appeared in Book No.

18111 Lunch for Totogo P/s on the same day.

This name appeared ones in Book No.

18123 Dinner (Totogo P/s) then again in Book No.

18435 (Cell Block) for dinner same day.
18409 18035 18149 18150 17602 20179 17605 20181 20155 20154 18102 18101 18102 18101 18104 18459 18111 18109 Fiji Police Force Section 19: Page 75 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Name of Prisoner Station Date Meal Type Book # Remarks Jemesa Volitiviti Totogo P/s 23/01/13 Dinner Eseroma Vakacegu Amit Kumar Various Totogo P/s Cell Block Suva 30/01/13 Lunch 29/01/13 Lunch 18754 18131 17952 17953 9648 Name appeared in both the Meal books for dinner same day.
Total meals 14; however in the tally provide with the payment voucher, it is totalled as 15 lunches.
B) Payment Voucher # 696460 1) Tax invoice # 0823 of 01/5/13 to 15/5/13 Station Date Meal Type Book # Remarks Name of Prisoner Peni Tuilaselase Keleni Tui Jale Maafu Keleni Tui Totogo P/s Charge Room Totogo P/s 01/05/13 Dinner 08/05/13 Dinner Totogo P/s 09/05/13 Dinner - Totogo P/s 13/05/13 Dinner 2) Tax Invoice # 0824 of 16/5/13 to 31/5/13 15539 23326 16635 23350 22664 22652 22669 The name appeared in both the prisoners’ meal book for the same day and the same meal.
Total meals add up to 15, however the meal in summary, it is stated as 16.

Station Date Meal Type Book # Remarks Totogo P/s 19/05/13 Breakfast 22/05/13 Dinner 21/05/13 Lunch P/s Totogo Cell block Cell Block Govt Building Totogo P/s Totogo P/s 26/05/13 Lunch Totogo P/s 30/05/13 Lunch 22683 22687 23261 22698 15351 15352 13716 13714 13270 13273 These names appeared on both the books for the same meal on the same day.
These names appeared on both the books for the same meal on the same day, however, the stations were different.

These names appeared on both the books for the same meal on the same day and the same station.
Name of Prisoner Kelesi Ralalu Apete Senikalou Neraj Singh Martin Singh Suresh Lal Nazir Ali Ram Chandra Manoa Uluisolevu Deepak Amit SinghAmit Atish Prasad Lalendra Naicker Jonetani Tawake Jiten Lal Sandeep Singh Peter Coster Amount Extra Claimed ($) 8 4 4 Amount Extra Claimed ($) 4 4 4 4 Amount Extra Claimed ($) 12 4 16 12 16 Fiji Police Force Section 19: Page 76 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Name of Prisoner Station Date Meal Type Book # Remarks - Totogo P/s 30/05/13 Lunch 13742 Total comes to 3 meals however in the meal tally its stated as 4 meals.
Amount Extra Claimed ($) 4 3) Tax invoice # 0804 01/3/13 to 15/3/13 Name of Prisoner Station Date Meal Type Book # Remarks Extra Amount Claimed ($) 52 Totogo P/s 03/03/13 Lunch 9684 9685 names These appeared in both the books for the same meal on the same day the same and station.

for Totogo P/s 10/03/13 Breakfast 15875 15874 The name appeared on both the books for the same meal on the same day.
3 4) Tax Invoice # 0819 of 18/4/13 to 30/04/13 Station Date Meal Type Book # Remarks 22/04/13 Dinner 24/04/13 Lunch 26/04/13 Lunch 29/04/13 Lunch 23/04/13 Lunch Central Police Station Totogo Cell block Totogo P/s P/s block Cell Totogo Officers mess Cell Block Totogo P/s Central P/s 23245 15529 18786 18784 23309 23308 15534 15533 18782 23249 Amount Extra Claimed ($) 4 4 4 4 4 The name appeared in both the books for the same meal on the same day.
The name appeared in both the prisoners meal book for the same meal same day, on the however the stations were different.
C) Payment Voucher # 700299 Fiji Police Force Section 19: Page 77 Arieta Tinai Bakalevu Moceimekemeke Iowane Sam Roshni Lata Josaia Cama Isaia Bobo Samisoni Meke Joji Kaci Jane Gaunavou Josateki Nailati Ronald Rohit Kumar Salesh Chaudary Arvind Chand Joseph Isoa Name of Prisoner Savenaca Inia Marika Bavoro Pamela Akini Angira Josefa Rogodawa Lote Waisale REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Name of Prisoner -Lia Baubau -Leone Kacimaimuri -Timoci Colohea -Navitalai Serevalu -Miliana Rokosiawa -Vikash Prasad -Daniel Ritesh -Josefa Waqalevu -Tawake Luvuwai -Louise Steele -Danial Ritesh Josaia Nabure Ledua Tikotani -Timoci Qolitabua -Seru Soko -Aiseli Colati -Elia Makaira Emosi Banilotu - - Josaia Nabure Station Date Meal Type Book # Remarks 01/08/13 Dinner Totogo Officers Mass Totogo P/s 02/08/13 Dinner Totogo P/s 06/08/13 Dinner 07/08/13 Dinner 07/08/13 Dinner 08/08/13 Breakfast 19/08/13 Lunch 19/08/13 Dinner 21/08/13 Dinner 26/08/13 Dinner 28/08/13 Lunch Totogo Officers Mass Totogo Officers Mass Totogo P/s Totogo Officers Mass Totogo P/s Officers Mass Totogo P/s Officers Mass Totogo P/s Officers Mass Totogo P/s Officers Mass 0032216 0030692 0032221 0032312 0032234 0032372 0030441 0030442 0030442 0032101 0030443 0030450 0032074 0032323 0032389 0032075 0032082 0032391 0032114 0032095 0032121 0032004 Totogo Officers Mass Totogo P/s 02/08/13 Dinner 0032221 19/08/13 Dinner 0032389 The name appeared in both the books for the same meal on the same day.
A total of 14 persons Three listed.

were names were cut off totalled which 11, the meal however in book summary is it 14.

Three recorded extra lunch was paid for $12 Total number of meals is 9, however the meal summary totalled ten.

The name was repeated on the same prisoners meal book Extra Amount Claimed ($) 8 8 4 4 4 12 4 4 16 4 12 4 4 Fiji Police Force Section 19: Page 78