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EXCELLENCE IN PUBLIC SECTOR AUDITING REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Volume 3 Audit Report on Government Ministries and Departments - 2013 EXCELLENCE IN PUBLIC SECTOR AUDITING REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Volume 3 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 the Whole of Government Financial Statements and the Annual Appropriation Statement 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 3 20.
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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 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Section 20 Ministry of Education Role and Responsibilities The Ministry is responsible for the delivery of Education and Training Services to schools, pre - schools, and training centres and it is also responsible for the preservation of the different cultures in Fiji.
These include the provision of curriculum frameworks, policy – guidelines, qualified teaching personnel, and programmes support to controlling authorities and education.

The Ministry also has responsibilities for ensuring that standards in education are met and maintained through the regulation and recognition of education.
Through advisory services, support is rendered to school management for the effective running of schools as well as financial assistance for construction and maintenance of school facilities.

The Ministry is also tasked with improving rural education standards and the education opportunities of disabled students and out of school youths.
The Ministry has undertaken three (3) new initiatives and these include the establishment of the Fiji Teachers Registration Board, the formulation of the language policy and the establishment of seed capital for Poverty Relief Fund, which also co – funded by private public partnership scheme.
Table of Contents 20.1 20.2 20.3 20.4 PART A: FINANCIAL STATEMENT ................................................................................................................................... 2 Audit Opinion ......................................................................................................................................................... 2 Statement of Receipts and Expenditure ................................................................................................................ 2 Appropriation Statement ....................................................................................................................................... 3 Statement of Losses ............................................................................................................................................. 4 PART B: AUDIT FINDINGS ................................................................................................................................................. 4 Statement of Losses ............................................................................................................................................. 4 20.5 Substantial Variance in Drawings Account ........................................................................................................... 5 20.6 Increase in Unpresented Cheque Listing .............................................................................................................. 6 20.7 Revolving Fund Account (RFA) ............................................................................................................................. 7 20.8 Weak Controls over Journal Vouchers .................................................................................................................. 8 20.9 Expenditure Ledger not maintained ...................................................................................................................... 9 20.10 20.11 Overpayment of Salary ....................................................................................................................................... 10 20.12 Maintenance and upgrading of Ratu Kadavulevu School (RKS) Hall and Ablution Block .................................. 11 Contingency Sum Included in the Contract Price ................................................................................................ 14 20.13 Capital Works at National Heritage Sites ............................................................................................................ 15 20.14 Poor Contractual Agreement ............................................................................................................................... 17 20.15 Bus Fare Coupons .............................................................................................................................................. 18 20.16 No Reconciliation and Lack of Internal Control ................................................................................................... 19 20.17 Absence of a Standard Grant Reporting Framework .......................................................................................... 20 20.18 Failure to Submit Audited Accounts – Cultural Agencies .................................................................................... 21 20.19 Splitting of Local Purchase Orders ...................................................................................................................... 23 20.20 No Segregation of Duties .................................................................................................................................... 24 20.21 Double Payment to East Coast Transport ........................................................................................................... 24 20.22 Unsubstantiated Repair Works – Vehicle Registration Number FF937 .............................................................. 25 20.23 Fraudulent Dealing with Korea Auto Traders – Vehicle Registration Number GM 899 ...................................... 27 20.24 Fraudulent Dealing with Korea Auto Traders – Vehicle Registration Number GN 168 ....................................... 27 20.25 Fictitious Quotations Used to For Purchase of Stationaries ................................................................................ 28 20.26 Quotation from 2012 used to Procure Good and Services in 2013 ..................................................................... 29 20.27 Purchase of Items from Unauthorized Suppliers ................................................................................................. 30 20.28 Tender not Called for Contracts Exceeding $50,000 .......................................................................................... 31 20.29 APPENDICES ........................................................................................................................................................................... 33 Appendix 20.1: No separation of duties between accounting functions ............................................................................. 33 Ministry of Education Section 20: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ PART A: FINANCIAL STATEMENT 20.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Education resulted in the issue of an unqualified audit report.
Management attention however was drawn to the following matters:  The correctness of the Statement of Losses submitted by the Ministry could not be verified as a Board of Survey was not completed.

 The Ministry did not reconcile the expenditure in the FMIS general ledger as no expenditure ledger was maintained and therefore the accuracy of the amounts stated in the Statement of Receipts and Expenditure could not be ascertained.
20.2 Statement of Receipts and Expenditure The Ministry of Education collected revenue totalling $797,311 and incurred a total expenditure of $277,484,045 in 2013.

Refer Table 20.1 for details.
Table 20.1: Statement of Receipts and Expenditures for 2013 Description RECEIPTS State Revenue Fees – Examination Fees – Government Day School Fees – Government Boarding Schools Registration – Teacher Registration Board Registration – Higher Education Commission Rent for Official Quarters Commission OPR in Previous Years Total State Revenue Agency Revenue Miscellaneous Revenue Sales of School Farm Produce Total Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure 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 2013 ($) 2012 ($) Ministry of Education Section 20: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Description Capital Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 2013 ($) 1,659,910 3,833,373 1,718,592 277,484,045 2012 ($) 587,884 1,171,710 1,614,281 270,261,887 Total revenue declined by $642,917 or 45% in 2013 compared to 2012 due to the followings:  decrease in request for recount and rechecking of examination fees;  decrease in boarding roll for Government Boarding School;  decrease in teachers paying registration fees as most teachers have paid registration fees for 3 years;  decrease in Tertiary Institutions registrations under the new fees;  decrease in recoveries to be made for overpayment of salaries as officers have left service; and  decrease in sale of farm produce.
Total expenditure increased by $7,222,158 or 3% in 2013 compared to 2012 as a result of the following:  payment of overtime for Government Wage Earners for the various units/sections working overtime to meet the Ministry’s output; the increase in cost of goods and services from food ration suppliers resulted in the increase in food and ration expenses for Government Secondary Boarding schools; increase in Ministry’s education initiatives; increase in capital works to Government schools and institutions; and increase grants provided for the infant schools construction in 2013.
    20.3 Appropriation Statement The Ministry of Education incurred a total expenditure of $277,484,045 in 2013 against the revised budget of $267,124,997 resulting in an over spending of $10,359,048 or 4%.
Table 20.2: Appropriation Statement for 2013 SEG Description & Grants Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Grants Capital Transfers Total Capital Expenditure and Budget Estimate ($) 208,538,864 2,050,106 880,725 1,243,284 6,677,060 Changes ($) (7,074,462) ----- 448,526 702,361 306,311 Revised Estimate ($) 201,464,402 2,050,106 1,329,251 1,945,645 6,983,371 Actual Expenditure ($) 214,024,425 2,508,682 1,253,770 1,844,415 6,927,296 Lapsed Appropriation ($) (12,560,023) (458,576) 75,481 101,230 56,075 39,044,400 4,663,964 43,708,364 43,615,805 92,559 2,513,400 260,947,839 855,974 (97,326) 3,369,374 260,850,513 1,757,687 271,932,080 1,611,687 (11,081,567) 2,740,869 800,000 2,009,820 (432,630) (655,691) (16,237) 2,308,239 144,309 1,993,583 2,050,290 123,173 1,659,910 257,949 21,136 333,673 5,550,689 (1,104,558) 4,446,131 3,833,373 612,758 Ministry of Education Section 20: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ SEG Description 13 Value Added Tax TOTAL EXPENDITURE 20.4 Statement of Losses Budget Estimate ($) 1,991,600 268,490,128 Changes ($) Revised Estimate ($) (163,247) (1,365,131) 1,828,353 267,124,997 Actual Expenditure ($) 1,718,592 277,484,045 Lapsed Appropriation ($) 109,761 (10,359,048) A total of $62,835 was lost by the Ministry in 2013 through embezzlement by the Ministry’s staff.
PART B: AUDIT FINDINGS 20.5 Statement of Losses An Annual Losses statement shall be prepared by the Senior Accounts Officer, Operations for inclusion in the Agency’s Annual Financial Statement as and when required.1 The Losses statement shall provide information on losses written off during the financial year and the status of recoveries of losses.2 All Permanent Secretaries shall appoint a Board of Survey annually to determine whether government plant, equipment and inventories under his or her control are: a) In working condition or serviceable; b) Unserviceable or obsolete; and c) Surplus to the requirements of that agency.3 The audit noted that the Ministry did not complete the board of survey for 2013 for some of the schools, stations and sections.
Refer Table 20.3 for details.
Table 20.3: Board of Survey Not Conducted for Schools, Stations and Sections BOS not yet Completed Schools Ratu Kadavulevu School Queen Victoria School AdiCakobau School Laucala Bay Secondary School Nasinu Secondary School Natabua High School Vunisea Secondary School Suva Grammar School Delainamasi Primary School Natabua Primary School Sections Schools Broadcast Unit Secondary Section Fiji Teacher Registration Board Curriculum Development Unit TVET Section 1Ministry of Education, National Heritage, Culture and Arts Finance Manual 2013, Section 14.1.7 2Ministry of Education, National Heritage, Culture and Arts Finance Manual 2013, Section 14.1.8 3 Procurement Regulations 2010, Section 24.1 Ministry of Education Section 20: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ BOS not yet Completed Culture Stations Ba Education Office Ra Education Office Northern Education Office Cakaudrove Education Office Divisional Education Office - Central Divisional Education Office – Eastern As a result the audit could not ascertain whether the losses reported in the Statement of Losses is correctly stated.
Recommendation The Principal Accounts Officer should ensure annual Board of Survey is conducted before agency financial statements audit to ensure losses are properly disclosed.
Management Comment The Ministry is trying its very best to improve on the submission of Board of Survey reports to ensure that the losses are recorded, however the underlying hindrance to this process is the composition of the BOS team whereby the Chairperson shall be an Officer from another Ministry and it has proven difficult to comply to this thus prolonging the completion of BOS on a timely basis.

This issue has been raised with FPO however no concrete solution has been found.
The Ministry wishes to inform Audit that each year schools, sections and stations are informed accordingly for the need to prepare BOS returns as it affects our Financial Statements.

Thus in an effort to improve on this PSE has put out a directive that those section heads not complying will face salary cessation until the Report is complete and submitted The list has been sent to the sections to complete the Board of Survey Reports.
20.6 Substantial Variance in Drawings Account 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 officer4.

The Permanent Secretary 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.
5 Any discrepancies must be accounted for and brought to the attention of the Permanent Secretary through the Board of Survey Report.6 The audit noted an unreconciled variance of $6,834,145.33 between the Ministry’s Drawings Account reconciliation and FMIS general ledger balance as at 31 December 2013.

Refer Table 20.4 for details.
Table 20.4: Variance in Drawings Account Account Description Balance as per Drawings Account Reconciliation ($) Balance as per FMIS ($) Drawings Account 8,143,656.57 1,309,511.24 Variance ($) 6,834,145.33 4 Finance Instruction 2010, Section 32 (6) 5 Finance Instruction 2010, Section 31 (5) 6 Finance Instruction 2010, Section 31 (6) Ministry of Education Section 20: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ According to the Principal Accounts Officer (PAO), the variance was due to the Debits and Credits which were not accounted for in the general ledger (FMIS).
However, the Principal Accounts Officer failed to provide supporting documents to substantiate the Debits and Credits not accounted for in the general ledger (FMIS).

The above finding indicates that the Accounting Head failed to carry out monthly reconciliations and the variances between the Ministry’s records and the FMIS general ledgers were not rectified and adjusted accordingly.

As a result the audit was not able to ascertain whether all payments were properly recorded in the general ledger.
Recommendations The Principal Accounts Officer should ensure that:  proper reconciliation is carried out on a monthly basis; and  investigate the variance noted and take appropriate action to rectify the variance.

Management Comment The Principal Accounts Officer confirms that monthly drawings reconciliation for 2013 were carried for which copies were presented to the team that carried out the audit for their verifications.
The variances were mispostings and omissions done by Treasury in regards to Credit Sweeps on our Bank Statements for the months of April, June, July and November in to the General Ledger for which only treasury could rectify.

It also included stale cheques and payments that did not hit the general Ledger up till the last day in 2013.

The same issues were raised again with Treasury in December to rectify but were not corrected.
Since the Ministry of Finance had closed the 2013 Accounts in February, the supporting documents together with the final journal to rectify the variances were submitted with the AFS in order that after the audit the team would request Finance to accept the journal but that did not happen.

It will now be rectified in 2014.


20.7 Increase in Unpresented Cheque Listing The Drawings Account will be operated for all payments except for those payable from petty cash bank accounts, TMA bank account and Trust Bank account.7 Ministries and Department are required to plan their expenditure well in order to avoid the accumulation of unpresented cheques at year end.
A continuous follow up action by the Accounting Head must be taken to encourage clients to present their cheques to the banks before 31/12/12.8 The audit noted that the Ministry’s unpresented cheques at year end have been increasing over the past few years.

The unpresented cheques at the end of 2013 increased to $8,143,656.57 from $4,367,708 in 2012.

Refer to Table 20.5 for the comparison of unpresented cheques between the years 2011 – 2013.
Table 20.5: Unpresented Cheques Drawings Account 2013 2012 2011 Unpresented Cheques ($) 8,143,656.57 ($) ($) 4,367,708 1,347,618 Increase in Unpresented Cheques from 2012 - 2013 ($) Change in the Unpresented Cheques (%) 3,775,948.57 86 7 Ministry of Education, National Heritage, Culture and Arts Finance Manual 2013, Section 7.4.3 8 Finance Circular 13/2012 dated 19/10/12, Section 5.1.3 Ministry of Education Section 20: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ This indicates that large amount of purchases are made towards the end of the year.
This may result in uneconomical purchases, overstocking of goods and at times not following proper procurement procedures.

Recommendations The Principal Accounts Officer should:  plan its purchases properly to avoid making large volume of purchases towards year end and accumulating the unpresented cheques; and review and clear the unpresented cheques on monthly basis.
 Management Comment The closing date for raising of Purchase Orders was 7/12/13 and only essential purchases were made thereafter for which only PSE was given the authority to approve.
Hence there was no large volume of purchases made in December but increased unpresented Cheques value of $8,143,656.57 were made up units, sections and schools pushing in payments for all purchases of previous months in December whilst trying to clear all outstanding accounts even though suppliers were advised to ensure lodgements of their Cheques as soon as they received them, payment of exam supervisors and markers, Grants, etc.
Cheques also not presented to the bank on time were payments to USP and FNPF which amounted to $5.5m.

However, now that we have Electronic Fund Transfer applicable to all banks this will definitely reduce our unpresented Cheques to a huge extent.

Last year EFT was possible only with ANZ customers.
20.8 Revolving Fund Account (RFA) Within 3 days of receiving the monthly general ledger 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.9 The audit noted a variance of $811,209.17 in the Revolving Fund Account balance between the Ministry’s reconciliations and the FMIS general ledger balances.

Refer Table 20.6 for details.


Table 20.6: Variance in Revolving Fund Account Balances Description Balances as per FMIS Ministry’s Reconciliation Variance AP Prepaid Expenses 1 21101 21999 570101 (443,185.53) (1,265,337.20) 822,151.67 Advances 1 21101 21999 570301 975,661.94 986,604.44 (10,942.50) Total 811,209.17 The variances may have resulted from incorrect journal entries passed to these accounts or through mispostings.
The finding indicates that the Accounting Head did not reconcile the Ministry’s RFA records to the General Ledger balances.

Recommendation The Principal Accounts Officer must investigate and rectify the credit balances noted.
9 Ministry of Education, National Heritage, Culture and Arts Finance Manual 2013, Section 16.3.3 Ministry of Education Section 20: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Management Comment The variance stated in the Draft Audit Report was after the supplementary journals being posted as the period for 2013 was activated by Ministry of Finance to upload adjustment made to drawings account.
However, the Ministry is in the process of amending its RFA reconciliation to match with the FMIS figures will submit a copy to Ministry of Finance.

Also the credit balance will be verified and adjusted accordingly.

20.9 Weak Controls over Journal Vouchers Only the PAO, SAO, AO Payments, AO Finance/Ledgers, AO Salaries shall approve journal adjustments.10Journal vouchers must be numbered in sequential order.
Supporting documents shall be attached to the voucher.11 The AO Finance/ Ledgers must check that: a) b) c) all relevant details are included on the voucher; balances are adequately supported; the correct accounts have been debited or credited.12 The audit noted journal vouchers were approved by Senior Accountant and Acting Accountant for substantial amounts on several occasions.

These journals were not approved by the Principal Accountant and were used to adjust expenditure account balances.
Refer Table 20.7 below for examples.
Table 20.7: Examples of Journal Vouchers Not Approved Date Journal Voucher Number 24/12/13 17/12/13 16/12/13 15/01/14 16/01/14 17/01/14 08/01/14 02/01/14 31/12/14 17/12/13 27/01/14 24/12/13 14/01/14 14/01/14 06/01/14 30/12/13 27/01/14 31/01/14 06/12/13 19/12/13 67 18 17 179/12/2013 191/12/2013 195/12/2013 125/12/2013 92/12/2013 241/12/2013 18 10/1/2014 69 143/12/2013 136/12/2013 104/12/2013 84/12/2013 224/12/2013 232/12/2013 11/12/2013 30/12/2013 Amount ($) Approved By 1,347,801.27 Raijieli Leca 66,380.18 Raijieli Leca 20,603.43 Raijieli Leca 2,671,233.90 Raijieli Leca 5,053,431.78 Raijieli Leca 201,633.00 Raijieli Leca 118,814.40 Raijieli Leca 734,103.91 Raijieli Leca 224,026.06 Raijieli Leca 66,380.18 Raijieli Leca 2,086,224.00 Raijieli Leca 3,007,701.17 Raveenesh Bharat 2,582,093.36 Raveenesh Bharat 435,454.49 Raveenesh Bharat 1,743,726.08 Raveenesh Bharat 108,181.06 Raveenesh Bharat 644,000.00 Raveenesh Bharat 2,209,886.04 Raveenesh Bharat 2,526,715.89 Raveenesh Bharat 644,000.00 Raveenesh Bharat Position Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Acting Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer Senior Accounts Officer 10Ministry of Education, National Heritage, Culture and Arts Finance Manual 2013, Section 16.1.2 11Ministry of Education, National Heritage, Culture and Arts Finance Manual 2013, Section 16.1.3 12Ministry of Education Finance Manual 2013, Section 16.1.4 Ministry of Education Section 20: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Ministry’s Finance Manual does not state the limit for Officers to approve and carryout adjustments into the general ledger.
Hence there is a high risk of fraudulent or incorrect journal entries passed and processed into the FMIS ledger.

Recommendations The Permanent Secretary should:   consider reviewing the Ministry’s Finance Manual and provide approval limit for the journals; and Investigate and take appropriate action against Principal Accountant for not controlling and monitoring the processing of journals.

Management Comment The Ministry wishes to maintain the status quo on the approvals of Journal Vouchers.
The journal vouchers are raised to rectify mis-postings and misallocations generally and are raised after reconciliations have been carried out.

The journal vouchers quoted are for a series of mispostings and not just one misposting hence are indicating an accumulated figure.
These are raised by the person carrying out the reconciliations-Assistant Accounts Officer and approved by the immediate supervisor-Accounts Officer and if the reconciliation is carried out by the Accounts Officer then the Senior Accounts Officer approves the journal vouchers which is in order.
This Ministry is a large one and providing an approval limit for journals which are a reaction to an approved action already taken will only slow down our processes hence in view of this the Ministry sees no reason for the PAO to control and monitor the processing of journals as the journal voucher is only raised to right a wrong.
Further OAG Comments The audit maintains that providing approval limits to respective officer is a good internal control mechanism which can eliminate the possibility of Officers concealing fraud, accounting errors and over expenditures 20.10 Expenditure Ledger not maintained All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger13.
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 reports14.

The special purpose financial statements of the Ministry of Education, National Heritage, Culture and Arts for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) maintained by the Ministry of Finance.
The audit noted that 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 FMIS maintained by Ministry of Finance.

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

The Ministry did not comply with Finance Instruction and its Finance Manual thus did not maintain an expenditure ledger.
13 Finance Instructions 2010, Section 15 14 Ministry of Education, National Heritage, Culture and Arts Finance Manual, Section 15 Ministry of Education Section 20: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Recommendations The Ministry should:   ensure that an expenditure ledger is maintained; and reconcile its expenditure ledger with FMIS on a monthly basis.
Management Comment Audit is noted and we acknowledge that a Commitment Ledger needs to be maintained for VAT postings and payments.

Furthermore the Ministry’s sections, units and district offices maintains a Commitment Ledger and use the FMIS General Ledger Reports as the Expenditure Ledger from where reconciliations are carried out on a monthly basis and journal vouchers raised for any mispostings.
We see no reason to maintain an Expenditure Ledger which reflects the actual expenditure when there is access to the FMIS General Ledger serving the same purpose; this is duplication of work except one is maintained manually whilst the other is s system generated even though stated in the Finance Manual as all queries pertaining to Budgetary Provision, expenditures and balances available will always be obtained from the FMIS and not from our Commitment and Expenditure Ledgers.
20.11 Overpayment of Salary An Officer, who has resigned, deemed to have resigned or terminated shall forfeit all the rights and privileges of his office from the date decided by the Commission.15 An officer who resigns without giving 30 consecutive days’ notice may be required to pay 30 days salary in lieu of notice.16 The audit noted that several officers continued to receive salaries after the effective dates of their resignations, terminations, acting, leave without pay and retirement due to delay in ceasing the payment of salaries.
In addition several cases were also noted for overpayments of acting allowances and payment of maternity leave on sixth confinements.

As a result, these officers were overpaid their salaries which was not recovered by the Ministry.

The amount overpaid is summarised in Table 20.9.
Table 20.9: Summary of Overpayment for 2013 Type of Overpayment Resignation Termination Not Reporting to Duty Study Leave without pay Salary Maternity Leave Acting & Executive Location Allowance Forfeitures Total Total Overpayment ($) 31,230.86 1,753.85 8,508.91 4,663.20 16,025.81 2,358.66 7,844.31 18,025.81 639.62 91,051.03 In addition, the audit noted that due to delay in ceasing of salaries for study leave without pay, the following overpayment of salary was made.

Refer Table 20.10 for details.
15General Order 222 (d) 16 General Order 222 (a) Ministry of Education Section 20: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 20.10: Overpayment of Salaries for Leave without Pay EDP Number Teacher’s Name 81652 68487 60487 65785 Total Ropate Fotofili Radha Muttama Mani Narendra Verma Ekari Waqanibau Amount Overpaid ($) 2,576.58 322.64 369.00 539.85 3,808.07 This is an ongoing issue for the Ministry however no effective measures are taken to avoid salary overpayment.
It is highly likely that the Ministry may not be able to recover substantial amount of salary overpaid.
Recommendations The Permanent Secretary should:  take appropriate action to ensure the salaries are ceased on time to avoid overpayment;  make every effort to recover salaries overpaid and implement strategies to ensure no   overpayments are made in future; consider communicating salaries changes electronically such as through emails to avoid delays in ceasing salaries; and surcharge officers responsible for delays headquarters on time.
in submitting salary change advices to Management Comment The Ministry wishes to inform Audit that all overpayments are being recovered progressively for those officers who are still employed by the Ministry.

However, for officers who have resigned and or retired, the Ministry is trying to contact these officers’ to clear their dues.

Currently the overpayment for 2013 stands at $ 91,051.03.
Furthermore, efforts are being made to minimize the re-curing audit query through internal control measures by sending notifications through phone, fax, e- mail and also FESA / FEMIS Software.

The Ministry will issue a stern warning to all those responsible for these overpayments as a deterrent to avoid overpayments.

The Ministry will also explore the option of surcharging or taking disciplinary action against those that are found to be directly involved in creating overpayments.
CAPITAL CONSTRUCTION The Ministry of Education was allocated a budget of $3,200,000 for Capital Construction for the year 2013.

The funds were specifically allocated for Maintenance and Upgrading of Schools and Institutional Quarters, Infrastructure and Building Operation.

20.12 Maintenance and upgrading of Ratu Kadavulevu School (RKS) Hall and Ablution Block 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.17 17Ministry of Education Finance Manual 2013, Part 2 Ministry of Education Section 20: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Government Tender Board (GTB) in its meeting No.24/2012 held on 31/10/12 approved to award the contract for upgrading and renovation works at Ratu Kadavulevu School to Hot Spring Investment Ltd amounting to $195,000 VIP.
The contract between the Ministry and Hot Spring Investment Ltd was signed on 23/01/13.

The construction shall be over the contract period of 13 weeks from the commencement date which shall be the date the construction work begins.18 The construction work commenced on 07/03/13 and was expected to be completed by 06/06/13.

As at the date of audit19 the Ministry paid $182,000 or 93.3% of the contract sum.
The payments were made based on the progress reports submitted by the Asset Monitoring Unit (AMU) of the Ministry.

Refer Table 20.12 for details.


Table 20.12: Details of Progress Report for Ratu Kadavulevu School Date 07/03/13 17/05/13 Amount Paid ($) 130,000 13,000 Cheque Number Date of Progress Report Details of Progress Report Submitted by AMU 0990172 Not Applicable 0996309  08/05/13  Total cost of material paid 80% of the work has been completed on the school hall and some minor works urgently needed to be done by the contractor.

17/06/13 13,000 0999107 05/06/13   All construction is progressing well.
The Carpentry work is progressing  Painting of undercoat and finishing is progressing inside and outside of the main school hall.

The work is progressing on the repair of box guttering of the school hall.

The upgrading on the inside is 95% complete and the work on the outside has not started.

  17/07/13 16/08/13 13,000 13,000 01001767 01004732 12/07/13  Progressing well.

14/08/13  Roofing work has completed.

However few minor works still left on the Eaves.


 Window frames have been repaired and painted with undercoat.

 Door frames and door leaves have been repaired and undercoated.

There are 13 single rebated doors missing in the entire hall  Walls have been repaired and painted; however there are few minor works left.

 Works on the floor is progressing.


 Overall the work is 95% complete Despite the AMU’s good progress report the audit review of the RKS Upgrading and Renovation file noted that the Director AMU on 02/10/13 issued a warning letter to Hot Spring Investment Ltd for unsatisfactory performance as the project was not completed within the agreed timeframe.

The Director AMU also raised his concern on the frequent absenteeism of the contractor from the site which contributed to the pending work.
In addition, the audit noted that the contractor did not turn up to the job site since the warning letter was served on 02/10/13.
The audit also noted during the site inspection on 15/01/14 the following anomalies: 18 Clause 1.0 of the Agreement signed between the Ministry and Hot Spring Pool Investment 19 07/01/14 Ministry of Education Section 20: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________  The contractor was required to remove and replace with new 300 × 300 mm vinyl tiles the entire floor of the hall.
However, approximately more than 50% of the tiling works were incomplete.

This included the back stage and the half of the main hall.

Refer to Figure 20.1 and 20.2 for illustration.

Figure 20.1: Incomplete tiling work in the main hall Figure 20.2: Incomplete tiling work hall behind back stage floor  The contractor was to fix 22 half gazed rebated double doors in the main hall.

However only 6 of the doors were installed and another 16 doors were not installed.
Refer to Figure 20.3 and 20.4 for illustration.

Figure 20.3: Backstage door not done.

Figure 20.4: Main Entrance door not done  The contractor was also supposed to renovate ablution block.

However the tiling and painting works were yet to be completed at the ablution block.

Refer to Figure 20.5 and 20.6 below for illustration.

Figure 20.5: Ablution block floor not tiled Figure 20.6: Ablution block wall not painted  The contractor was to carry out electrical works in the main hall.
The electrical works were incomplete.

 The contractor was to make hurricane shutters for rooms 1, 2 and 3 behind the stage.

However no shutters were made for any of the rooms.
Ministry of Education Section 20: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ According to the last progress report submitted by the AMU, the upgrading and renovation works were 95% complete, however the above audit findings showed that the percentage of completion for the upgrading and renovation works were far less than 95%.
The above finding indicates that the progress reports submitted by the AMU were incorrect and the percentage of completion was highly overstated compared to the actual work done by the contractor.

This resulted in a significant amount (93.3%) of the total contract sum paid to contractor despite the work completed was far much below the estimated percentage of work completed.

There is a high risk that the officers from AMU maybe colluding with the contractor.
Recommendations The Permanent Secretary should:  discuss with the contractor to complete the remaining works;  investigate the Officer in Charge of providing and approving the progress report and take appropriate action for incorrect assessments and reports submitted; consider taking legal action against the contractor to complete the remaining works; and consider getting another contractor to complete the remaining works.
  Management Comment The Contractor was summoned for a series of meetings with the Ministry (AMU) to determine the way forward in order to complete the project.

The above was verified by our Building Supervisor during the final monitoring visit.

The Ministry is considering engaging another Contractor to complete the works and Seek legal opinion from SGO.
School Hall  Due to lengthy period in processing and finalizing the tender which was approved in 2012 and implemented in 2013, the building has also deteriorated due to weather plus price increase of some of the materials from the Hardware supplier resulted in high cost incurred in the project.

 The Contractor was summoned for a series of meeting with the Ministry’s (AMU) to determine the way forward in order to complete the project.
 The above was verified by our Building Supervisor during the final monitoring visit.

Ablution Block  No need for tiling since it was not mentioned in the scope of work;  The above was verified by our Building Supervisor during the final monitoring visit.

20.13 Contingency Sum Included in the Contract Price The contingency sum is the amount that can be used to meet additional project expenses due to variations in the project work during implementation phase.
However all variations submitted by the Contractor are to be approved by the GTB.

The variations can be allowed only up to the contingency sum only.

The Ministry constructed two infant schools during 2013 for a total value of $973,553.00 (VIP).

Both projects were completed in 2013.


Ministry of Education Section 20: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The projects were approved by the GTB which in its letter to the Ministry of Education stated that the contract price was inclusive of contingency sum.

Hence the total contract price should exclude the contingency sum.

However, the audit noted that the Ministry did not exclude the contingency sum from the total contract price.
As a result the contingency sum was not set aside by the Ministry and both contracts were overpriced by the amount of contingency sum.

Refer Table 20.13 for details.


Table 20.13: Amount of Contingency Sum included in Contract Price Name of School Contractor Nakawakawa Infant School Navotua Infant School Sharnik Construction Cope Construction Ltd Contract Sum Paid ($) 436,810 536,743 Rate of Contingency 10% 15% Contingency Sum ($) 43,681 80,511 Furthermore, the audit noted that the contract agreement signed between the Ministry and the respective contractors did not include any clause outlining the contingency sum.
The finding shows that the Ministry did not comply with the terms and conditions of the GTB for approved contracts.

As a result no contingency sum was set aside and contractors were paid the full contingency sums without any variations.
Recommendations The Permanent Secretary should:  make an effort to recover the overpaid amount from the contractors;  ensure that contingency sum is excluded from the contract price; and  take appropriate action against officers for not allowing for contingency sum in the contract agreement.

Management Comment The SG’s office vetted contract agreement which was signed between the Ministry of Education and the Contractor did not include any clause outlining the contingency sum.
Government Tender Board meeting No.

24/2012 held on 31/10/2012, clause (ii) reads “Approved to award the contract for construction of a New Infant School at Navotua in Yasawa Island to Cope Construction Ltd at a total cost of $ 536,742.95 VIP, inclusive of 15% Contingency sum recommended.

This clause does not specifically say to withhold the contingency cost to meet any variation cost.

Furthermore, the contingency cost was part of the payment schedule in the MOA which was approved by SG’s Office.
MOE was not advised or informed of the separation of the contingency sum from the work cost.

Final approval was given by Budget Division through the RIE meaning that MOE request was in order.

However, the Ministry will ensure that all Capital works must have a Contingency sum to meet variations.

20.14 Capital Works at National Heritage Sites The recipient of the Grant Assistance shall prepare an acquittal report.

The acquittal report shall provide the following information: i.
Details of grant money expended and unexpended; ii.

Grant objectives and targets achieved; and Ministry of Education Section 20: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ iii.

Financial statement (audited if practicable) for grants of $20,000 or more20.
The District Education Officers shall prepare an inspection report on each project and submit it to the Director Asset Management Unit.21 The Ministry of Education provided grants to 3 schools with heritage facility, particularly in declared World Heritage Zones.

The grant was deposited in the individual schools’ bank accounts.
The Senior Education Officers from respective districts were one of the signatories for the Grant Funds and the approving officers for all purchases made by the schools for school improvement works.
Refer Table 20.14 for details of fund paid to the schools Table 20.14: Details of Grant Recipients Name of School Work Done St. John Cawaci Delana Methodist Primary School Renovation of Teachers Quarters Marist Covenant Renovation to school church Repair of Main Building Total Cost of Renovations ($) 89,685.20 61,845.12 48,469.68 80% Grant Paid ($) 71,748.16 49,476.10 38,775.74 The audit noted the following anomalies in the administration of the above grants.
 The District Education Officer did not have any progress reports on the repairs and maintenance work carried out at the 3 schools.

Progress reports provide information on the status of works undertaken and whether funds are properly utilized.

 The District Education Officer did not obtain the acquittal reports from the grant recipients.

Hence the Ministry did not know how the grants funds were used by the recipients.

This indicates the lack of proper monitoring and supervision by the Ministry.
There is a high risk that grants funds may not be properly utilised for the purpose it was given for.
Recommendations The Ministry should ensure that:  District Education Officers carryout regular visits and obtain quarterly progress reports of the projects funded by grants; schools receiving the grants submit acquittals for the usage of the grant funds;   new grant is not given unless acquittals have been provided by the schools for previous  grants; and the grant agreement should include a clause requiring schools to submit acquittals with supporting documents for the payments made from the grant funds.
Management Comment Reports were given regularly on a monthly basis to ascertain the progress of the work done to the three schools.

However, there was a stop order issued by Levuka Town Council to stop work at Marist Convent School, while Delana Methodist Teacher’s Quarters and St John’s College were completed.
The works at Marist Convent 20 Ministry of Education Finance Manual 2013, Section 3.5.1 21 Ministry of Education Finance Manual 2013, Section 3.5.7 Ministry of Education Section 20: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ School has now been awarded to Ministry of Works for the continuation of renovation works instead of Private companies.
The Ministry will follow up with the schools to submit the acquittals and ensure that the grant agreement covers the submission of acquittals.

20.15 Poor Contractual Agreement All Government contracts must be prepared by the organization and should be vetted by the Solicitor General.22 The contract must clearly outline all the necessary terms and conditions of the engagement.
The Ministry carried out several capital projects during the year 2013 and entered into contract agreement with several contractors for the capital projects.

Review of the contract agreement revealed that payment of performance bond clause was not included in the contract agreement.

As a result, the contractors were not obliged to pay a performance bond.
In absence of performance bond the Ministry will not be able to hold any funds back from the contractor if it fails to fulfill its obligation under the contract.

In addition the contract agreement stated the duration of the projects and not the expected Date of Commencement and the Date of Completion of the project.

The Ministry cannot take any action against the contractor if the commencement of the project is delayed.
Refer Table 20.15 for details of contract agreement without performance bond and project commencement and completion dates.
Table 20.15: Contract Agreements without Performance Bond Clause, Commencement Dates And Completion Dates Project Name Contractor’s Name RKS Hall Upgrade Suva Grammar School Upgrade and Renovations Nasinu Secondary School Renovations and Upgrading Construction of Navotua Infant School Construction of Nakawakawa Infant School Hot Spring Pool Investment Ltd Cope Constructions Ltd Pacific Construction Ltd Cope Constructions Ltd Sharnik Construction Total Project Cost (VIP) ($) 195,000.00 83,601.00 285,527.69 536,742.95 436,810.00 The findings indicate that government’s interests are not fully protected in these contracts which may result in loss of public funds.
Recommendation The Permanent Secretary should ensure that contract agreements for capital works include clause for performance bond and commencement and completion dates.

Management Comment  The contract agreement for the Heritage site schools were based on the Ministry of Education Building Grant Policy which was endorsed and finally approved by Ministry of Finance in the disbursement of funds.

 The contract agreement for the Heritage site schools were vetted by Ministry of Education legal officer.
 The Performance Bond applies to the Tender Works and always recommended by General Tender Board based on the Determination of Performance Bond Policy.

22 PSC Circular No 23/2001 Ministry of Education Section 20: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________  The Performance Bond came into force later after the approval and the implementation of the mentioned project.
 Currently, all our contract agreements are vetted by the Solicitor General’s Office as per recommended by the Fiji Procurement Office of the Ministry of Education.

BUS FARE ASSISTANCE SCHEME The Bus Fare Assistance Scheme was an initiative to ensure and facilitate education for the children of the poorest of the poor families.23 On 19/10/2009, government embarked in assisting school students with the provision of free bus fare to and from school.
A total of $11,000,000 was allocated for the Bus Fare Scheme which was revised to $16,164,721 in 2013.
20.16 Bus Fare Coupons The Accounting Head is responsible for the safekeeping and proper maintenance of all accounting records or documents.24 Accounting records may be destroyed after a period of six years provided that these records are not required for audit purposes or have already been audited.25 The Accounting Head shall prepare a list of all records or documents to be destroyed and forward it to the Ministry of Finance for approval.
The Accounting Head shall also indicate whether these records have been audited and the year of audit.26 The Ministry of Finance shall consult with the Auditor General before approving the destruction of records.27 The audit noted the following anomalies.

 The Ministry destroyed the bus fare coupons and ticket butts for the year 2013 without proper approvals.

This has been the practice since the inception of the bus fare scheme in 2010.
The Ministry claims it does not have enough space to store the vouchers and there is risk of fraudulent use of used bus fare coupons.

The Ministry obtained approval to destroy bus fare coupons from the Director National Archives, Mr. Opeta Alefaio who is not the person authorized to grant approval for destruction of records under the Finance Manual 2013.

However, no approvals were obtained from the Ministry of Finance and the Auditor General before destroying the records.
 There was no independent person present during the destruction of the bus fare tickets apart from the employees of Ministry.

In addition the Certificate of Destruction was yet to be signed by the Ministry.
23Cabinet Memorandum 24 Finance Manual 2011, Section 18.1.3 25 Finance Manual 2011, Section 18.1.4 26 Finance Manual 2011, Section 18.1.5 27 Finance Manual 2011, Section 18.1.6 Ministry of Education Section 20: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ This issue was also highlighted by audit in the years 2011 and 2012.

However the Ministry continued to destroy bus fare tickets without proper approval.
Hence the Ministry did not have bus fare tickets for audit reviews.

Recommendations  The Ministry of Finance should take appropriate action for destruction of records without proper approvals.

 The Ministry of Education should follow proper procedures for destruction of accounting records.
Management Comment After the Audit in 2012 by the Internal Audit team from Ministry of Finance, the Ministry was informed to destroy the coupons after obtaining approval from National Archives due to the following: 1.

High risk of coupons being stolen.

2.

Lack of Filing space.

Approval was obtained from National Archives instead of Ministry of Finance.
The Ministry will cease this practice and seek Ministry of Finance approval before we start destroying 2014 coupons and provide a copy of “Certificate of Destruction “after completion as per Finance Instructions 2010.

20.17 No Reconciliation and Lack of Internal Control Each agency must have in place a cost effective system of internal controls which – (a) safeguards money and property against loss; (b) avoids or detects accounting errors; and (c) avoids unfavorable audit reports.
The Accounting Head of an agency is responsible to the Permanent Secretary for the effective design and operation of internal controls across the agency.28 The Ministry was allocated total of $11,000,000 for bus fare scheme in its 2013 budget.

The Ministry setup a Bus Fare Taskforce Unit for the distribution of tickets and counting of tickets received from transport providers for payment.

The Unit only carries out this task for the Headquarters.
The District Education Offices are required to carry out the same task for the divisions.

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

In addition no reconciliations were carried out by the Ministry for the number of coupons issued and processed by the divisions.
The audit further noted that the Ministry did not implement adequate controls to verify the number of coupons processed and reconcile with the payments made to individual transport providers in the bus fare coupon scheme.

Lack of adequate controls may result in misappropriation of public funds.
28 Financial Instruction 2010, Part 10, Section 59 Ministry of Education Section 20: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ In absence of these records and inadequate controls the audit could not ascertain whether the $11,000,000 allocated for the bus fare was properly used.
Recommendations The Principal Accounts Officer should:  maintain proper record of bus fare coupons issued to each school during the year and total coupons reimbursed; and reconcile the coupon issued with coupons reimbursed.

 Management Comment The Ministry has finally managed to set up a Transport Assistance Unit internally wef 01/01/ 2014 who are now responsible for the ordering , receiving , recording and dispatch of coupons to the Districts , Divisions and Schools.
It is also responsible and accountable for all Transport Assistance payments from the 9 districts.

Transport Assistance Unit will comply with the Financial Regulations whilst delivering the services and also maintain proper record keeping for reconciliation purposes.
20.18 Absence of a Standard Grant Reporting Framework Grants that are administered by agencies should only be used for the purpose for which Parliamentary or Cabinet approval has been given.29The school shall submit the audited financial report endorsed in the Annual General Meeting to the Ministry of Education by the end of February of the following year.30 The review of the schools financial statements revealed that several schools prepared the financial statements and acquittals showing total income and total expenses for the year.
None of the schools showed the grant income and the expenses incurred from the grants income separately in the financial statements.

The audit also noted that Schedule 1 of Grant Agreement for Special Schools outlines that the Special Education Grant shall be used for the following purposes:  Contribute towards the operational cost of the school such as cost of transport, fuel, spare parts and maintenance of school buses, city rate, telephone bill, water rate and electricity bill.
 Contribution towards salary of Licensed Teachers or Teacher Aid  Payment of allowance of volunteers e.g.

Speech Therapist, Occupational Therapist and Physio Therapist.

 Purchase of Special Education reference materials for Teacher Training and resource materials like Special Education Journals and teaching aids.

 Purchase of Special Equipment for children with special needs  Repairs and maintenance of all special equipment.
However, the financial statements and acquittals submitted by the special schools did not specifically outline whether the special education grants were used in accordance with Schedule 1 of Grant Agreement for Special Schools.

Refer Table 20.16 for special schools receiving grants.
29 Ministry of Education Finance Manual 2013, Part 3 – Administration of Grants 30 Policy In Distribution of Tuition Fees And Supplementary Grant (Per Capita Grants) Using The Differential Resourcing Model Paragraph 7.2.4 Ministry of Education Section 20: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 20.16: Grants disbursed to Special Schools Name Nadi Special School Early Intervention School Suva Special School Nasavusavu Special School Ba Special School Gospel High School Total Grant ($) 27,559.76 16,783.04 28,517.53 19,750,95 18,676.70 25,000 The finding indicates that the Ministry of Education did not monitor record keeping and proper disclosure of how government grants are used by the schools in their financial statements.
The current reporting format adopted by schools makes it difficult for the Ministry to determine how the grant funds were used.

Hence, the Ministry may not be able determine whether schools comply with the requirements of the grant policy.

Therefore financial statements submitted by the schools may not be useful to the Ministry.

This anomaly was also reported in last year’s Draft Audit Memorandum however no corrective action was taken by the Ministry.
Recommendation The Ministry should provide a standard reporting template for all the grants disbursed to schools as a guide to ensure that grant funds are used for the correct purpose.

Management Comment The Ministry will seriously look into this issue and will comply with the grant criteria.

It will also draw up a standard template for reporting by the recipients for the grants received and ensure that the grant is used for the purpose it’s given.
20.19 Failure to Submit Audited Accounts – Cultural Agencies The recipient of the Grant Assistance shall prepare an acquittal report.

The acquittal report shall provide the following information: iv.

Details of grant money expended and unexpended; v. Grant objectives and targets achieved; and vi.

Financial statement (audited if practicable) for grants of $20,000 or more31.

Three cultural agencies are supported by Government through the Ministry of Education.
These are Fiji Museum, National Trust of Fiji and Fiji Arts Council.

The Ministry provides operating grant to the cultural agencies which are in excess of $20,000.

The audit noted that the cultural agencies have not submitted the audited financial statements to the Ministry of Education for the year ended 2004 to 2013.

The audit also noted that the Ministry continued to provide annual operating grants despite the cultural agencies not submitting the audited financial statements.
Refer Table 20.17 for details of grant paid as at 31 December 2013.
31 Ministry of Education Finance Manual 2013, Section 3.5.1 Ministry of Education Section 20: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 20.17: Grants disbursed to Cultural Agencies Agency Last Audited Accounts Fiji Arts Council Fiji Museum 2003 2007 Figures not Provided 2004- 2009 2008- 2009 Grants Provided Despite Accounts Unaudited 2010 2013 2011 2012 Total 311,432.30 229,506.14 380,304.30 176,729.00 1,097,971.74 363,097.50 304,438.00 227,420.00 300,000.00 1,194,955.50 These cultural agencies only submitted acquittals which included list of expenses.
The acquittal submitted did not have any supporting documents to substantiate how the grant money was used.

In the absence of audited financial statements or proper acquittals report, the Ministry cannot substantiate whether grants were used for the purpose it was given for.

There is a high risk that grants maybe be misused.


Recommendations The Permanent Secretary should ensure that:  all grant recipients comply with the terms and conditions of the grant agreement;  ensure that all grant recipients receiving more than $20,000 grant submit audited annual accounts to the Ministry; and take appropriate action against grant recipients who have not submitted the audited annual accounts.
 Management Comment The Ministry would like to inform Audit that the Cultural Centres / Agencies have been paid in the usual manner for a couple of years now.

The grants paid to the Cultural Agencies are based on the Memorandum of Understanding / Agreement which states that the organization has to provide the Acquittals of expenses before the next grant is released on a quarterly basis.
However, the Ministry will now ensure that any grant paid in excess of $ 20,000 will require the organization to submit the Audited Financial Report at the end of the year.

This will be one of the criteria for the release of the 2nd Quarter grant each year.

Also the Ministry will amend the Memorandum of Agreement for the Cultural Agencies from 2015.
TECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVET) Vocational Education and Training Programme caters for school leavers who have completed secondary school education up to form four and have reached the age range of 15 to 20 years.

The programme provides either a one year or two year intensive skill training aimed at providing the following opportunities: i.

Training for self-employment; ii.

Training for paid employment; iii.

Training which will lead to further education; and iv.
Training for life skills useful to those designed to go back to the village or rural setting Students enrolled in this programme are sponsored in terms of tuition fees and materials for learning purposes.
Ministry of Education Section 20: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ 20.20 Splitting of Local Purchase Orders The following officers are delegated authority to procure goods, services and works up to the following limits specified:32 Permanent Secretaries Deputy Secretaries Directors, PAO Divisional Educational Officers SAO (O)/ Principal Education Officers Accounts Officers $50,000 and all indents up to $50,000 $40,000 $20,000 $15,000 $10,000 $5,000 The officer authorising a purchase order must ensure that a purchase is not artificially split to bring it within the limits33.
Any officer who authorises expenditures exceeding his/her procurement limits, including by splitting purchase orders, shall be liable for surcharge to repay the unauthorised amount34.

The Ministry paid $20,950.12 to Davui Printery on 17/4/13 for printing of TVET Achievement Level Booklets via Cheque Number 993747.

The audit noted that the purchase order was split to bring the amount within the authorised limit of the Director TVET.
Refer Table 20.19 for details: Table 20.19: Splitting of Purchase Order Purchase Order Date 25/01/13 25/01/13 25/01/13 25/01/13 25/01/13 Total Purchase Order Number PO9101H001526 PO9101H001525 PO9101H001524 PO9101H001523 PO9101H001522 Invoice Date Invoice Number 18/02/13 18/02/13 18/02/13 18/02/13 18/02/13 0213 0214 0215 0216 0217 Delivery Docket Date 19/02/13 19/02/13 19/02/13 19/02/13 19/02/13 Amount 1,600.01 5,000.03 5,100.03 5,250.04 4,000.02 20,950.13 The purchase orders were split to keep the amounts within authorised limit of the Director TVET and to avoid approval from higher authority.
There is a risk of unauthorised purchases.

Recommendations The Director Administration and Finance:  should investigate and take appropriate action against Officers responsible for breach of finance policies;  must ensure that purchase order are not split in future to avoid approval from higher authorities; and  must ensure that proper procurement procedures are for procurement of goods, services and works.
Management Comment The Ministry will investigate the breach of financial regulations by the Executive Officer and take disciplinary action after investigations are completed.
It will also ensure that all officers involved with purchasing comply 32 Ministry of Education Finance Manual 2013, Section 2.2.1 33 Ministry of Education Finance Manual 2013, Section 2.2.2 34 Ministry of Education Finance Manual 2013, Section 2.2.3 Ministry of Education Section 20: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ with the financial regulations and FPO regulations whilst carrying out their work.
All Directors are responsible and accountable for their sections procurement.

20.21 No Segregation of Duties All Directors/Section Heads/School Heads must now take charge of all purchase from their respective sections and allocations and must ensure that the purchases are approved by them.

They are also responsible for on-line approvals of all purchase orders raised from their sections.

They must be accountable of all purchase orders raised from their sections.
They must be accountable for all purchases and ensure that the receipt of the goods is delegated to another person other than clerks/bursars/executive officers and assistant accounts officers as an internal control measure.35 The audit noted inadequate segregation of duties for purchases of goods and services in TVET section.

Most of task for purchase of goods and services were performed by the Executive Officer TVET, Ms. Elizabeth Logavatu.
These includes request for purchase of goods, confirmation of availability of funds, obtaining quotations, receiving and dispatching of cheques, receiving invoices, receiving delivery dockets and certifying the payment voucher as correct.

The audit also noted that TVET section had adequate staff however the Director TVET failed to delegate accounting function to maintain adequate internal control.

In addition most of the purchases were made from Office Mart.
Refer to Appendix 1 for examples of the tasks carried out by Ms. Elizabeth Logavatu.

The lack of segregation of duties increases the risk of misappropriation of funds and fraud.

Recommendations  The Director TEVT should investigate the matter and implement adequate segregation of duties in TEVT section.

 The Deputy Secretary Administration and Finance must develop a staff rotation policy for Officers involved in various sections of the Ministry.
Management Comment This case will be investigated and the officer responsible will be disciplined.

However, the section has now strengthened their internal controls by distributing the work previously done by the Executive officer alone .All purchases and payments are checked by the Director and other officers have been delegated by the Director to check, receive and sign for goods received.

Furthermore, the Ministry will look into the possibility of staff rotation for all Procurement Officers.
20.22 Double Payment to East Coast Transport The proper management of expenditure is fundamental to ensure value for money in service delivery to the community.

Having cost effective controls within the purchasing and payments system plays an important part in ensuring that waste of public funds and over- expenditure do not occur.

The audit noted that on 07/06/13, the Ministry paid East Coast Transport for the repair works carried out on CDU vehicle registration number FF937.
The payment was certified and processed by the Executive Officer CDU, Ms Milika Nadredre.

35 Ministry of Education Finance Manual 2013, Section 2.5.2a Ministry of Education Section 20: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ However, the review of the vendor paid items in the FMIS system revealed that the East Coast Transport was already paid for the same repair works on 22/03/13.
The audit also noted that the payment voucher and the supporting documents for the payments made on 22/3/13were certified and processed by the Executive Officer TVET, Ms. Elizabeth Logavatu who is not in charge of CDU.

The audit further noted that East Coast Transport raised two invoices numbered 0213 and 0222 on the same day for the same repair works.

Refer Table 20.21 for details of payment made.


Table 20.21: Details of Double Payment Date 22/03/13 07/06/13 Cheque Number Particulars 990929 Being payment for repair to FF937 which includes: Torque rod bushing,- Wheel alignment of 4 wheels , Fuel Filter,- Oil Filter, Air Filter,- Engine Oil and Greasing 998003 Being payment for repair to FF937 which includes: Torque rod bushing,- Wheel alignment of 4 wheels , Fuel Filter,- Oil Filter, Air Filter,- Engine Oil and Greasing Invoice Date 22/02/13 Invoice No.
0213 Payment Certified By Amount ($) 879.00 Executive Officer TVET 22/02/13 0222 879.00 Executive Officer CDU Hence the Ministry paid twice to East Coast Transport.

There is a high risk that the Ministry’s Officers maybe colluding with East Coast Transport.
Recommendations The Deputy Secretary Administration and Finance should:    instigate an internal investigation into the involvement of Ms Elizabeth in the above transaction and take appropriate action against the officer if found to be colluding with the vendor; and ensure to recover the double payment made to East Coast Transport the Senior Accounts Officer (Payments) must more vigilant in ensuring that Executive Officer for each section certifies their own payments before the transactions are into the FMIS system.
Management Comment The Ministry will recover the double payments made to the Company amounting to $ 879.00.

The officer will be investigated and disciplined by the Ministry.

Furthermore, all payment vouchers are now being certified by their own sections before it is processed for payment.

20.23 Unsubstantiated Repair Works – Vehicle Registration Number FF937 The proper management of expenditure is fundamental to ensure value for money in service delivery to the community.
Having cost effective controls within the purchasing and payments system plays an important part in ensuring that waste of public funds and over- expenditure do not occur.

Ministry of Education Section 20: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Ministry paid a total of $4,320.62 to East Cost Transport on 13/06/13 for repairs of vehicle registration number FF937.

Details of the repair works are shown in the Table 20.22 below.
Table 20.22: Repair Works for Vehicle FF937 Description of Repair Work Clutch Cover Rebuild Clutch Flywheel Clutch Plate Release Bearing Pilot Shaft Bearing Gear Oil Disc Pad Front Wheel Alignment And Balancing All 4 Wheels Air Condition Gas Vacuum Gas (Remove And Replace Gearbox) Workshop, Materials And Mechanical Labor Total Cost ($) 682.00 1,885.00 489.60 245.00 79.00 35.00 85.00 135.00 85.00 35.00 475.00 4,230.60 The driver for TVET, Mr. Pailato Navowai took the vehicle and parked it at Nausori Police Station on 31/05/13 (Friday) after dropping the Ministry’s staffs who were working overtime.
The driver was driving the vehicle on 01/06/13 (Saturday) without approval when the vehicle broke down.

The audit noted that the Driver, Mr. Pailato Navowai directly arranged with the East Coast Transport to have the vehicle towed to the garage for repairs without informing appropriate officers of the Ministry.

In addition neither any quotations were obtained nor were any purchase order raised before engaging with East Coast Transport.
The finding shows poor control over use of official vehicles and disregard to procurement of goods and services procedures.

There is a high risk of unauthorised use of vehicles and purchases of goods and services.
Recommendations The Deputy Secretary Administration and Finance should:    investigate as to why the driver took the vehicle directly to the vendor without informing the Transport Officer or any other Senior Officer from the Ministry; to take appropriate action against the driver for driving the vehicle without approval; and ensure that competitive quotes are obtained and the purchase order raised before a repair is done.
Management Comment The Ministry will carry out an investigation on the driver and take appropriate action.

Also any repairs or maintenance to official vehicles will now require the approval of their section heads.

All repairs are to be in compliance with the Financial Regulations.

The Ministry will cease to seek any repair works from Korea Auto Traders in future and 3 competitive quotations will be obtained and purchase order raised before any repair works are carried out.
Ministry of Education Section 20: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ 20.24 Fraudulent Dealing with Korea Auto Traders – Vehicle Registration Number GM 899 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.36 The Ministry obtained the services from Korea Auto Traders for repairs and servicing of the following vehicle.
The audit review of the payments made to Korea Auto Traders noted the following anomalies: The Ministry paid $4,404.99 to Korea Auto Traders on 11/09/13 to replace the engine of TVET vehicle registration number GM899.

However the audit noted that engine for the same vehicle was replaced in 2012 by the same company, Korea Auto Traders.

The Ministry paid $4,950 on 21/8/12 for to replace the engine.
The audit further noted that the Ministry’s Transport Officer was not involved in repair and maintenance of vehicle.

The entire process of getting the vehicles repaired was handled by the Executive Officers, Mrs. Elizabeth Logavatu in 2012 and 2013.

The finding indicates that proper work was not done by Korea Auto Traders in 2012.

In addition the Ministry did not verify whether the engine was actually replaced on both occasions.
Recommendations The Deputy Secretary Administration and Finance should:    carry out an internal investigation as to why the engine of the vehicle registration number GM 899 had to be replaced twice within one year; ensure that all repair and maintenance are carried out on request from Transport Officer and approval from a Senior Officer; and consider engaging authorized vehicle dealers to carry out repair and maintenance work.
Management Comment The Ministry will carry out its own investigation and the officer responsible will be disciplined.

In future, the Ministry will cease any dealings with Korea Auto Traders and seek assistance from other reputable companies.

However, the budgetary provision is a constraint as the authorized dealers’ charges are quite high which hinders the repairs and maintenance to other vehicles.
20.25 Fraudulent Dealing with Korea Auto Traders – Vehicle Registration Number GN 168 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.37 36Ministry of Education Finance Manual 2013, Part 2 37Ministry of Education Finance Manual 2013, Part 2 Ministry of Education Section 20: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The Ministry paid a total of $1,495.00 to Korea Auto Traders on 16/08/13 for the repair of vehicle registration number GN 168.
The review of the invoice revealed that the repair works were carried out by Korea Auto Traders on 07/03/13.

However the review of vehicle running sheet revealed that on 07/03/13 the vehicle was in use.

In addition the audit noted that the vehicle log book did not show any record of repairs to the vehicle on 07/03/13.

The finding indicates that the vehicle repair and maintenance were not properly supervised.

In addition there is a high risk of misappropriation of funds through collusion.
Recommendations The Deputy Secretary Administration and Finance should:    carry out an internal investigation as to how the vehicle registration number GN 168 was providing normal services on the same day it was taken in for repairs at Korea Auto Traders; ensure that all repair and maintenance are carried out on request from Transport Officer and approval from a Senior Officer; and consider engaging authorized vehicle deals to carry out repair and maintenance work.
Management Comment The Ministry will investigate further and instigate disciplinary action on the officer concerned.

Any repairs or maintenance of pool vehicles will now be facilitated by the Transport Officer and authorized by a senior officer.

The Ministry also wishes to inform Audit that due to limited funds, it is inappropriate to send all the vehicles to their authorized dealers for repairs, hence option is to seek repairs outside at a lower cost to meet the needs of all vehicles.
20.26 Fictitious Quotations Used to For Purchase of Stationaries The quotation process is intended to ensure that the agencies receive value for money based on fair competition and ethical dealing.38 A minimum of three competitive quotations must be obtained for the procurement of goods, services or works valued more than $1,000 and less than $50,000.39 The Ministry purchased office stationaries from Office Mart.
The Executive Officer, TVET Ms. Elizabeth Logavatu submitted 3 quotes from Office Mart, Sky Tech Office Solutions and Office Express Supplies.

Refer Table 20.23 for details of the quotes.


Table 20.23: Quotes for Purchase of Stationaries Company Name Office Mart Office Express Sky Tech Office Solutions Price Quoted ($) 3,729.00 4,514.00 4,260.00 The audit noted that the quotations from Office Express Supplies were a fictitious quotes prepared by Ms. Elizabeth Logavatu at a higher cost to favour Office Mart.

38 Fiji Procurement Regulation – Guide to procurement process for purchases below $50,000 – Section 4.0.
39 Procurement Regulations 2010 – Section 29 (1) Ministry of Education Section 20: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ The confirmation obtained from Office Express Supplies proved that the quotation was fictitious.
Refer Table 20.24 for details of purchases from Office Mart Ltd. Table 20.24: Details of Payment Supported by Fake Quotation Cheque Number 982642 982513 Voucher Number 249816 249713 Payee Particulars Office Mart Office Mart Purchase of stationaries Purchase of stationaries Comments Amount ($) 3,729.00 Fake quotes from Office Express Supplies were attached to facilitate 5,275.04 the payments The above finding shows poor supervision and non-compliance to Guide to Procurement Process for Purchases up to $50,000.
There is a very high risk of fraud and misappropriation of funds.

Recommendations The Permanent Secretary should ensure that:  All purchases are properly monitored and supervised; and  Investigate this matter further and take appropriate action against the Officer.

Management Comment All purchases will now be closely scrutinized and an internal investigation will be carried out before disciplinary action is taken against the officer.

Directors are responsible for their section/ units procurements.
The Ministry would like to inform Audit that it will ensure all procurements are made in a transparent manner in compliance to Financial & Procurement Regulations.
20.27 Quotation from 2012 used to Procure Good and Services in 2013 The quotation process is intended to ensure that the agencies receive value for money based on fair competition and ethical dealing.40 A minimum of three competitive quotations must be obtained for the procurement of goods, services or works valued more than $1,000 and less than $50,000.41 The Ministry engaged Datec (Fiji) Limited to supply N-Computing42in 2013 for $46,700.The audit noted that the Ministry obtained quote from Datec only.
The Ministry did not obtained fresh quotes from two other suppliers, namely, Office Product and Clariti South Pacific.

Instead the Ministry relied on quotes obtained in 2012 from these two companies for supply of N-Computing in 2013.

The above finding shows disregard of the standing rules and regulation pertaining to procurement of goods and services.
If the Ministry fails to implement the internal controls as stipulated in the Guide to Procurement Process for Purchases up to $50,000, there is a very high risk of misappropriation of funds.

40 Fiji Procurement Regulation – Guide to procurement process for purchases below $50,000 – Section 4.0.
41 Procurement Regulations 2010 – Section 29 (1) 42N Computing is technology that allows multiple users to share 1 computer simultaneously, Ministry of Education Section 20: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Recommendations The Permanent Secretary should:   ensure that proper procurement procedures for purchases through quotations as issued by the Ministry of Finance and Fiji Procurement Office are used; and take appropriate disciplinary action against officers not complying with proper procurement procedures.
Management Comment The Ministry will refrain from this practice and staff will be held accountable for any non – compliance of procedures and regulations as all Directors are now responsible and accountable for their sections procurements.
20.28 Purchase of Items from Unauthorized Suppliers 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.43 The Fiji Procurement Office awarded the Tender No.

CTN 26/2012 on 18/09/12 to Graphic Equipment Limited trading as Office Products for supply of Laptop & Desktop Computers until 7/9/13.
44 In addition the Fiji Procurement Office awarded Tender No CTN 27/2012 on 30/07/12 to various companies for supply of stationaries until 25/07/14.45 The audit noted that the Ministry purchased laptops and desktop computers from suppliers other than the approved supplier, Office Products.

The Ministry did not comply with the tender no.

CTN 26/2012.

Refer Table 20.25 for examples.


Table 20.25: Laptops and Desktop Computers Purchased From Other Vendors Date 23/05/13 05/06/13 11/06/13 Vendor Cheque Number 1001456 Professional Stationery 1002574 Dynamic Solutions 998547 Bondwell Quantity Purchased 2 Laptop 2 Desktop Computer 3 Laptops Amount ($) 6,720.03 5,000.00 4,436.65 The audit also noted that the Ministry purchased stationaries from non-contracted suppliers.
Refer Table 20.26 for examples Table 20.26: Stationaries Purchased From Other Vendors Date Cheque Number 26/3/13 1002306 Voucher Number 274262 Vendor Quantity Purchased Professional Stationery 7/2/13 986686 254879 Office Mart 43 Procurement Regulations 2010, Section 35 44Ministry of Finance Circular- Tender No.

CTN 26/2012 45Ministry of Finance Circular- Tender No.
CTN 26/2012 Ministry of Education Arch packet 100 Lever Files 10 markers 100 CDR Amount ($) 485.00 Approved Vendor Janty Kanvan 150.00 Suva Bookshop 195.00 Janty Kanvan Section 20: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Date Cheque Number Voucher Number Vendor Quantity Purchased thumb 5 box tacks 10 Dusters 10 pental pens 2 stapler pins 15 stapler packet packet 20/2/13 1002306 274266 Professional Stationery 15/3/13 1002335 274073 Mass Stationery 19/2/13 992697 216876 Office Mart 04/12/12 982642 249815 Office Mart Arch 100 Lever Files 50 Arch Lever Files 9 packet ball pen 10 packet ball pen Approved Vendor Amount ($) 37.50 Suva Bookshop 39.50 Extreme Stationery 135.00 Suva Bookshop 5.30 Extreme Stationery 381.00 Suva Bookshop / Janty / Extreme Stationery Janty Kanvan 595.00 262.50 Janty Kanvan 264.60 Janty Kanvan 350.00 Janty Kanvan The Ministry did not comply with Tender Boards approval for purchases of goods and services.
Procurement of goods and services from suppliers other than those approved by the Government Tender Board is an unauthorized purchase.

Recommendations The Ministry should:   ensure that goods and services are purchased from approved suppliers; and take appropriate action against Officers responsible for purchases from unauthorized suppliers.
Management Comment The Ministry in its Finance Manual 2013 Part 2.5 (2a) has clearly stated that all the Directors are responsible and accountable of their units’ procurements and in compliance with the regulations.

The Ministry will work closely with all sections making procurements to ensure that they follow the Procurement process to purchase from Contracted Suppliers who have been awarded Government Tenders.
It will also take necessary action against those found not to be complying with the standard regulations.

20.29 Tender not Called for Contracts Exceeding $50,000 A tender must be called for the procurement of goods, services or works valued at $50,001 and more.46 The Ministry of Education provided grants to 4 schools with heritage facility, particularly in declared World Heritage Zones.

The grant was deposited in the individual schools’ bank accounts.
The Senior Education Officers from respective districts were one of the signatories for the Grant Funds and the approving officer for all purchases made by the schools for school improvement works.

The audit noted that 2 of the schools awarded contracts to Skaffworks for the school improvement works without calling for tenders even though the total contract amount exceeded $50,000 each.

Refer Table 20.27 for details.
46 Finance Circular 2012, Circular No : 9/2012 Ministry of Education Section 20: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ Table 20.27: No Tender Called by Schools Schools Projects Contractor St. John Cawaci Delana Methodist Primary School Church Building Teacher’s Quarters Skaffworks Skaffworks Cost ($) 89,685.20 61,845.12 The finding shows that the Ministry did not follow the proper procurement process when awarding the contracts for school improvement works.
Hence the contractor, Skaffworks may not be the best and most economical supplier.

Recommendations The Ministry should:   ensure that proper procurement procedures are followed at all times; and take appropriate actions against the Senior Education Officers and the schools for not following proper procurement procedures.
Management Comment The Ministry will ensure that all Capital works in excess of $ 50,000 goes through the Tender process so that there is transparency and accountability in the use of public funds.

The Ministry will also take appropriate action against those that do not comply with the Procurement Regulations.

.
Ministry of Education Section 20: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014____________________________ APPENDICES Appendix 20.1: No separation of duties between accounting functions Cheque Number 993209 Voucher Number 261879 Payee Amount ($) Functions undertaken by Executive Officer- TVET Office Mart 2,200.02  Request for purchase of items  Confirmation of availability of funds  Obtaining quotations  Receiving and dispatching of cheques  Receiving invoices  Receiving delivery dockets  Certifying correct the payment voucher 986686 254887 Office Mart 2,761.02  Request for purchase of items 986686 254879 Office Mart  Confirmation of availability of funds  Obtaining quotations  Receiving and dispatching of cheques  Receiving invoices  Receiving delivery dockets  Certifying correct the payment voucher 4,601.75  Confirmation of availability of funds  Obtaining quotations  Receiving and dispatching of cheques  Receiving invoices  Receiving delivery dockets  Certifying correct the payment voucher 1002335 274073 Mass Stationery 2,780.02  Request for purchase of items  Confirmation of availability of funds  Obtaining quotations  Receiving and dispatching of cheques  Receiving invoices  Receiving delivery dockets 982513 249711 Office Mart 5,088.00  Obtaining quotations 992697 261876 Office Mart 1,999.97  Request for purchase of items  Receiving and dispatching of cheques  Receiving invoices  Certifying correct the payment voucher  Confirmation of availability of funds  Obtaining quotations  Receiving and dispatching of cheques  Receiving delivery dockets and invoices  Certifying correct the payment voucher 982642 249816 Office Mart 3,729.00  Obtaining quotations  Receiving and dispatching of cheques  Receiving invoices  Certifying correct the payment voucher 982642 249815 Office Mart 2,482.50  Obtaining quotations 982513 249713 Office Mart 5,275.04  Obtaining quotations  Receiving and dispatching of cheques  Receiving invoices  Certifying correct the payment voucher  Receiving and dispatching of cheques  Receiving invoices  Certifying correct the payment voucher Ministry of Education Section 20: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Section 21 Ministry of Health Role and Responsibilities The Ministry of Health shall provide health services with the commitment that it is the right of everyone in the Republic of Fiji, irrespective of race, sex, colour, creed, financial circumstances or poverty to have a national health system which provides a high quality health service to the maximum extent possible within the available resources.
The delivery of health services is divided into two clear distinct divisions;   the Primary Health Care Services and: the Curative (Hospital) Health Care Services.

The main objective of the Primary and Preventive Health Services is to enhance the promotion of health and well-being, protection of life and prevention of diseases, injury and substance abuse.
The main objective of the Curative (Hospital) Health Care Services is to ensure that the standardised basic diagnostic and treatment facilities for common disease problems are readily available near to where people live, are responsive to patients' needs are affordable and that they are closely integrated with community rehabilitative services to ensure continuity of patient care.

Health services are expected to change significantly over the next few years.
 Firstly, a decentralisation of the management of health services will take place under the Fiji Health Management Reform Project.

 Secondly, financing options and arrangements which may include National fees, privatisation and revision of hospital the Insurance Scheme, contractualisation.
For 2011, the Ministry continued to concentrate its efforts in human resources management and development; reorganising/ reforming of the health services; standards and quality; performance/ output based financial management system and resource allocation; Health Management Information System; health financing and cost sharing; public relations strategies and facilities development .
Table of Contents 21.1 21.2 21.3 21.4 PART A: CONSOLIDATED FINANCIAL STATEMENT ..................................................................................................... 3 Audit Opinion ....................................................................................................................................................... 3 Statement of Receipts and Expenditure .............................................................................................................. 4 Appropriation Statement ..................................................................................................................................... 5 Statement of Losses ........................................................................................................................................... 5 PART B: AUDIT FINDINGS ................................................................................................................................................ 5 FINANCIAL STATEMENT .......................................................................................................................................................... 5 Variances in FNPF Figures ................................................................................................................................. 5 Appropriations Unsubstantiated .......................................................................................................................... 6 Drawings Account ............................................................................................................................................... 7 Increase in Unpresented Cheques Listing .......................................................................................................... 9 VAT Reconciliation ............................................................................................................................................ 10 Variances in Revenue Collected by the Ministry ............................................................................................... 11 Expenditure Ledger Not Maintained .................................................................................................................. 12 Main Trust Account ........................................................................................................................................... 12 Board of Survey ................................................................................................................................................ 14 Trading and Manufacturing Account ................................................................................................................. 15 21.14.1 Payables not Accounted for in the TMA Account .......................................................................................... 15 21.14.2 TMA Surplus Account.................................................................................................................................... 16 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 Ministry of Health Section 21: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ HEADQUARTERS 21.30 21.31 21.32 21.33 21.34 21.35 21.36 21.37 21.38 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.14.3 Accounts Receivable ..................................................................................................................................... 18 21.14.4 Opening Stock Balance ................................................................................................................................. 19 21.14.5 TMA Bank Reconciliation .............................................................................................................................. 20 21.14.6 VAT Amount Incorrectly Stated ..................................................................................................................... 21 21.14.7 Rent Payments .............................................................................................................................................. 21 .............................................................................................................................................................. 22 Anomalies in VAT Application .......................................................................................................................... 22 Overpayment of Salary .................................................................................................................................... 23 Over Paid Salaries for the Past 4 Years .......................................................................................................... 25 Anomalies in Termination of Kamala Prasad ................................................................................................... 26 Contingency Sum Not Excluded from the Contract Price ................................................................................ 27 Retention Sum Not Kept In Trust Fund Account .............................................................................................. 29 Anomalies in Project Management .................................................................................................................. 30 Kamikamica Park Hub Centre .......................................................................................................................... 31 Construction of Grade 6 Quarters at Bagasau Nursing Station - Tender No.
267/2012 .................................. 32 Negligence of Doctors at CWM ........................................................................................................................ 33 Overseas Medical Treatment ........................................................................................................................... 34 Island Hoppers ................................................................................................................................................. 36 Sponsorship for Zuriel’s Security ..................................................................................................................... 40 Local Purchase Orders (LPO) Raised after Date of Invoice ............................................................................ 40 2012 Invoices Paid in 2013 .............................................................................................................................. 42 FIJI PHARMACUETICALS & BIOMEDICAL SERVICES ........................................................................................................ 43 Variances between Epicor System and Actual Stock ...................................................................................... 43 Value of Expired Stock ..................................................................................................................................... 44 Unreasonable Expiry Dates ............................................................................................................................. 45 Items Ordered Not Received............................................................................................................................ 47 Nil Stock ........................................................................................................................................................... 48 Stock in Excess of Predetermined Maximum level .......................................................................................... 49 Stock below Predetermined Minimum level ..................................................................................................... 50 Under utilization of Laundry Machine ............................................................................................................... 51 Local Purchase Orders not Monitored ............................................................................................................. 52 COLONIAL WAR MEMORIAL HOSPITAL .............................................................................................................................. 53 Poor Storage of Dry Goods .............................................................................................................................. 53 Blocked Drainage ............................................................................................................................................. 54 Improper Facilities at CWMH Kitchen .............................................................................................................. 55 Store Room ...................................................................................................................................................... 56 Undisposed Items at CWM Hospital ................................................................................................................ 56 IT Office............................................................................................................................................................ 57 WESTERN DIVISION .............................................................................................................................................................. 59 Non Payment of Bond ...................................................................................................................................... 59 Nadi Hospital .................................................................................................................................................... 59 21.46.1 Undisposed Items at Nadi Hospital ............................................................................................................. 59 21.46.2 Expired Drugs and Medicines not Disposed ............................................................................................... 61 21.46.3 Storage and Maintenance of Equipment and Consumables ....................................................................... 62 Lautoka Hospital .............................................................................................................................................. 64 21.47.1 Installation of New Elevators ....................................................................................................................... 64 21.47.2 Engaging PWD for Associated Works ......................................................................................................... 64 21.47.3 Delay in Dismantling the Old Elevators ....................................................................................................... 64 21.47.4 Delay in the Installation of New Elevators ................................................................................................... 65 Kamikamica Park Health Centre ...................................................................................................................... 66 Anomalies in Motor Vehicle.............................................................................................................................. 68 .............................................................................................................................................................. 70 Short Supply of Rations ................................................................................................................. 70 Variance In System Quantity And Physical Quantity ..................................................................... 73 Drugs Expired Within 1-9 Months From Date Of Receiving .......................................................... 76 Items Ordered Not Received By FPBS ......................................................................................... 78 Out Of Stock - Vital/Essential Items .............................................................................................. 90 Excess Stock ................................................................................................................................. 97 Below Minimum Level.................................................................................................................. 104 Appendix 21.1: Appendix 21.2: Appendix 21.3: Appendix 21.4: Appendix 21.5: Appendix 21.6: Appendix 21.7: 21.48 21.49 APPENDICES 21.39 21.40 21.41 21.42 21.43 21.44 21.45 21.46 21.47 Ministry of Health Section 21: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.8: Appendix 21.9: Appendix 21.10: Sigatoka Tenants Without Bond Payment ................................................................................... 109 Lautoka Tenants Without Bond Payment .................................................................................... 110 Ba Tenants Without Bond Payment ............................................................................................ 112 __________________________________________________________________________________ PART A: CONSOLIDATED FINANCIAL STATEMENT 21.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Health resulted in the issue of a qualified audit report.
The bases for the qualifications are as follows: 1.

Included in the TMA balance sheet is VAT receivable of $142,425.

The audit calculation noted a VAT payable of $2,592 as such VAT receivable of $142,425 was incorrectly stated in the TMA balance sheet.

2.

The Ministry did not provide all the virements and redeployment records hence a variance of $1,703,581 existed between the original budget of $167,451,445 and the revised budget of $169,155,046.
As a result the audit was not able to ascertain the accuracy of the Appropriation Changes in the Appropriation Statement.

3.

The Ministry’s bank reconciliation for the main Trust Fund account for December did not reconcile to the FMIS general ledger.

The main Trust Fund account had a closing balance of $77,075.59 in FMIS general ledger while the bank reconciliation balance as at 31/12/13 was $388,648.82 resulting in a variance of $465,724.41.
The audit was not able to ascertain whether all receipts and payments were correctly stated in the main Trust Fund Account.

4.

The main Trust Fund Account for the year ended 31/12/12 was not prepared.

However, an unaudited opening debit balance of $152,725 from the FMIS general ledger was included in main Trust Fund account for the year ended 31/12/13.

The audit was not able to ascertain whether the opening balance was correctly stated.
In addition the main Trust Fund Account cash book maintained by the Ministry had total receipts of $847,695 and total payment of $489,562.61 which did reconcile to the total receipts and payments stated in the FMIS general ledger of $715,901.41and $640,251.90 respectively.

I was not able to ascertain whether the amounts in the main Trust Fund Account were fairly stated.
Management attention was also drawn to the following matters:  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.
 The correctness of the Statement of Losses submitted by the Ministry could not be verified as a complete board of survey was not undertaken.

Ministry of Health Section 21: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.2 Statement of Receipts and Expenditure The Ministry collected revenue amounting to $5,806,748 and incurred a total expenditure of $170,466,070 in 2013.

Details are provided in Table 21.1 below.
Table 21.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue Operating Revenue Total State Revenue Agency Revenue Hospital Fees Fumigation & Quarantine License & Others Fiji School of Nursing Miscellaneous Revenue Total Agency Revenue TOTAL REVENUE EXPENDITURES Operating Expenditure 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 ($) 2012 ($) The Ministry’s revenue declined by $264,374 or 4.4 % in 2013 compared to 2012 due to no revenue collected from Fiji School of Nursing which now operates under the Fiji National University, decreases in miscellaneous revenue and recoveries of salary overpayments from staff.
The Operating Expenditure increased by $8,407,085 or 6% in 2013 compared to 2012 due to the increases in established staff cost, maintenance and operation, purchase of goods and services and special expenditure.

The Capital Expenditure increased by $5,226,768 or 56% in 2013compared to 2012 due to:  The increase in construction cost for extension of the East Wing of CWM Hospital.

 The increase in bio medical and accident and emergency equipments expenditure in 2013 comapred to 2012.
Ministry of Health Section 21: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.3 Appropriation Statement The Ministry of Health incurred expenditures totalling $170,466,070 in 2013 against the budget of $169,155,046 resulting in overexpenditure of $1,311,024 or 1%.

Details are provided in Table 21.2.
Table 21.2: Appropriation Statement For 2013 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Transfers Special Expenditure Total Operating Costs Grants & Budget Estimate ($) 71,606,987 11,047,453 3,937,960 12,161,500 30,422,106 Appropriation Changes ($) --- --- 186,392 347,304 (1,171,661) Revised Estimate ($)a 71,606,987 11,047,453 3,751,608 12,110,452 31,593,761 Actual Expenditure ($)b 79,140,819 12,978,866 3,726,317 12,059,593 31,805,889 Lapsed Appropriation ($) (a-b) (7,533,832) (1,931,413) 25,291 50,859 (212,128) 872,000 (95,654) 776,346 737,965 38,381 12,530,237 142,578,243 (464,819) (270,000) 12,065,418 142,952,025 8,723,637 149,173,086 3,341,781 (6,221,061) Capital Expenditure Construction Purchases Grants & Transfers Total Capital Expenditure 6,359,602 8,470,000 - 14,829,602 (2,276,488) 722,241 - (1,554,247) 8,636,088 7,747,759 - 16,383,847 6,873,071 7,665,371 - 14,538,442 1,763,017 82,388 - 1,845,405 Value Added Tax 10,043,600 224,426 9,819,174 6,754,542 3,064,632 TOTAL EXPENDITURE 167,451,445 (1,648,326) 169,155,046 170,466,070 (1,311,024) 21.4 Statement of Losses There was no loss of fixed asset recorded for the year 2013.
However, items worth $1,926,043.50 were written off, following the Ministry’s Board of Survey conducted in 2013.

Expired drug as at 31/12/13 was valued at $382,368.75.
PART B: AUDIT FINDINGS FINANCIAL STATEMENT 21.5 Variances in FNPF Figures Every employer shall pay to the Fund in respect of each of his employees, in every month during which such employee 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.1 1 Chapter 219 – Fiji National Provident Fund – Section 13 (1) Ministry of Health Section 21: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The current rate of contribution is 16 cents on each dollar earned, with the employer and employee each contributing 8 cents.
A variance of $293,783.41 was noted between the Ministry’s gross pay on which FNPF was paid and the audit calculations of gross pay subject to FNPF.

Refer Table 21.3 for details.
Table 21.3: Un-Reconciled FNPF Variance Details (a) Total FNPF against salaries and wages for 2013: FNPF as per financial statement Less: December 2012 FNPF Add: December 2013 FNPF FNPF Contribution by Employer for 2013 Amount ($) 6,458,344.40 (998,838.00) 5,459,506.42 1,099,557.58 6,559,064.00 Gross Pay Subject to FNPF (6,559,064 / 0.08) 81,988,300.00 (b) Salaries and Wages for 2013 subject to FNPF Salaries, wages and allowances as per financial statement Less: Salaries, wages and allowances for 2013 not subject to FNPF FNPF (85,660,593.00*0.08) Un-reconciled Variance (a) – (b) 85,660,593.00 - 6,852,847.41 (293,783.41) The variance in gross pay may be attributed to some staffs and project officers either paid from SEGs other than SEG 1 and SEG 2 or FNPF deductions incorrectly posted to other allocations.
The audit further noted that no FNPF reconciliation was prepared by the Ministry.

Recommendation The Ministry should ensure that proper FNPF reconciliation is carried out on a monthly basis to identify variances and take appropriate corrective actions.

Management Comments Audit recommendation is acknowledged.
There used to be two clerks involved with FNPF processing and one was scheduled to carry out all the payment process and the second one used to carry out all the reconciliations.There is only one at the moment who is carrying out all the FNPF processing who is trying all his best to meet timelines.

However, it was truly said that that there are also officers paid from other Segs e.g.
Seg 5 and Seg 7 and other donor funded allocations.The unreconciled variances can also be attributed to non- taxable salaries, wages and allowances.

21.6 Appropriations Unsubstantiated The Appropriation Statement is a statement of net changes which occurred during the financial year for a Ministry.

The appropriation captures the net sum of virements and appropriations made.
The audit could not substantiate the figures stated in the Appropriation Statement as the virement file and the virement register maintained was not updated.

The Ministry failed to maintain proper records of the virements.

Ministry of Health Section 21: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Hence the Ministry was not able to provide all the virements and redeployment records.
A variance of $1,703,601 existed between the original budget of $167,451,445 and the revised budget of $169,155,046.

In addition the audit noted that duplicate copies of the virements without the virement numbers were filed in the virement file.

Due to poor supervision and monitoring the virement records were not properly maintained and were not provided for audit.

As a result the audit was not able to ascertain the accuracy of the Appropriation Changes in the Appropriation Statement.
Recommendation The Ministry should ensure that all virements are properly filed and the virement register is updated.

Management Comments Audit Recommendations is acknowledged.

Due to numerous staff turnover within a year’s time in overall Accounts Section which affected the accessibility of records.

Accounting team to strengthen the records keeping of virements register.

21.7 Drawings Account 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 officer2.

The Permanent Secretary must appoint a Board of Survey to conduct a physical stock takes of all cash on hand and other stocks held in safes at least once a year.3 The audit noted the following anomalies in the Drawings account.

 A standard drawings account reconciliation format is provided by the Ministry of Finance.
However the Ministry did not prepare its Drawings Account reconciliation in the format provided by the Ministry of Finance.

 The Ministry did not carry out Board of Survey for the unpresented cheques as at 31/12/13.

 The Ministry have two bank accounts.

One for the Drawings Account and the other for the TMA account.

The bank statements for these two bank accounts were not maintained separately.

The statements were all mixed up and filed together in one file.
 The Ministry did not prepare Drawings Account reconciliations for November and December 2012.

Therefore the audit could not substantiate the opening balance of $5,524,331.68 used to prepare Drawings Account reconciliation for January 2013; therefore the Drawings account reconciliations for 2013 may not be correct.
2 Finance Instruction 2010 - Section 32 (6) 3 Finance Instruction 2010 – Section 31(5) Ministry of Health Section 21: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________  The amount of presented cheques for the Ministry’s Drawings Account reconciliation for December had a variance of $1,131,988.96 between the presented cheque list and presented cheque amount in the reconciliation.

Refer Table 21.4 for details.


Table 21.4: Variance in Presented Cheque Account Description Balance as per Drawings Account Reconciliation December, 2013 ($) Balance as per Presented Cheque Listing for December, 2013 ($) Presented Cheques 8,900,817.09 7,768,828.13 Variance ($) 1,131,988.96  The closing balance of the Ministry’s Drawings Account reconciliation and the FMIS general ledger balance had a variance of $4,306,640.92.

Refer Table 21.5 for details.


Table 21.5: Variance in closing balance in Drawings Account Account Description Drawings Account Balance as per Drawings Account Reconciliation ($) 9,681,230.06 Balance as per FMIS Variance ($) 5,374,589.14 ($) 4,306,640.92 The finding shows lack of supervision and monitoring by Senior Officers.
Recommendations The Ministry should ensure that: it complies with the Ministry of Finance format for Drawings Account reconciliation;   Board of Survey of the unpresented cheques is carried out at the end of the year;  Bank statements are maintained separately for respective Drawings Account numbers;   Drawings Account is reconciled.

records pertaining to Drawings Account are properly maintained; and Management Comments Audit Recommendations is acknowledged.
Drawings reconciliation were complete until May 2013 when the new format came in requesting by MOF to restart from Jan 2013 on the new format being generated thus the delay while it took time for the reconciling clerks to adopt the new format thoroughly.

From this year we are working closely with FMIS preparing the reconcilition and checking with FMIS.
Board of Survey was not carried out than because of high staff turnover in accounts, however a team is being recommended to carry out this task and is expected to be completed by end of next month and the same to be forwarded to Auditor General’s Office and Ministry of Finance.

This has been implemented after the audit recommendation.Assistant Accounts Officer to check on the same on weekly basis.
The delay in the preparation of bank reconcilition was because there is a change to the new format in carrying out the reconcilition and we have to redo from January 2013.

However, reconcilition for November and December 2012 has been completed.
Ministry of Health Section 21: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.8 Increase in Unpresented Cheques Listing The Drawings Account will be operated for all payments except for those payable from petty cash bank accounts, TMA bank account and Trust Bank account.4 Ministries and Department are required to plan their expenditure well in order to avoid the accumulation of unpresented cheques at year end.
A continuous follow up action by the Accounting head must be taken to encourage clients to present their cheques to the banks before 31/12/135 The Drawings accounts balance (credit) for the Ministry represent the total value of cheques that were issued but not presented to the bank as at 31/12/13.

The unpresented cheques have increased by a massive $4,157,998.38 or 75% in 2013.

Refer Table 21.6 for the comparison of unpresented cheques between year 2012 and 2013.
Table 21.6: Un-presented Cheques Drawing Account 2013 ($) 2012 ($) Increase in Unpresented cheques($) % changes in Unpresented Changes Unpresented Cheques 9,681,230.06 5,523,231.68 4,157,998.38 75 This indicates that processing of cheques is concentrated in the last quarter of the year which could result in uneconomical purchases, overstocking of goods and sometimes abuse of procurement procedures.
Recommendations The Ministry should:  plan their expenditure well in advance in order to avoid the accumulation of unpresented  cheques at year end; and ensure that continuous follow up actions by the Accounting Heads are taken to encourage creditors to present their cheques to the banks before the end of the year.

Management Comments Audit Recommendations is acknowledged.
All cheques are dispatched at the earliest and the cashiers have been sending email reminders as well as telephone reminders to the vendors to deposit the cheques.

We are trying to minimize our cheque printing from this year and have moved to Electronic Fund Transfer [EFT] of payments direct to the vendor bank accounts.

Currently we are working on uploading all vendor details in the system and this process should be live from mid this year.

This will surely decrease the unpresented cheque listing.
4 Ministry of Health Financial Manual 2011 Section (7.4.3) 5 Finance Circular 14/2011dated 31/10/11 Section (5.1.3) Ministry of Health Section 21: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.9 VAT Reconciliation Subject to the provisions of this Decree, the tax shall be charged in accordance with the provisions of on the supply (but not including an exempt supply) in Fiji of this Decree at the rate of fifteen percent goods and services on or after the 1st day of July 1992, 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.
6 Output 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.7 The audit noted a variance of $5,303,883.71 between the VAT paid to FRCA for the year 2013 and the balance disclosed in the general ledger.

Refer Table 21.7 for details.


Table 21.7: Variance in VAT Paid Amount in FMIS Details VAT payments (VAT payments to FRCA and VAT Input) as per General ledger (SEG 13) VAT payments (VAT payments to FRCA and VAT Input) as per VAT Returns for 2013 Un-reconciled variance Amount ($) 6,754,542.24 1,450,658.53 5,303,883.71 No explanation was provided by the Ministry for the variances.

The non-reconciliation of VAT and poor monitoring by the Ministry has resulted in the differences highlighted above.
The Ministry may be paying incorrect VAT to FRCA.

Recommendations The Ministry should:    ensure that VAT paid to FRCA is reconciled on a monthly basis; take necessary steps to identify the error and reconcile the records to avoid such variances in future; and ensure supervisory checks on the preparation of VAT Returns is improved to ensure that balances reflected in the VAT Returns reconcile with the General Ledger.

Management Comments Audit Recommendations is acknowledged.
The error is a result of miscalculation while inserting vat input figures for calculation.Vat is reconciled monthly to prior to payments.Priority will be given to timeline for thorough check by both officer preparing the payment and supervisor to avoid reoccurrence.Comments noted and in future supervisor will scrutinize calculation prior to approval for payments are made.
6 Value Added Tax Decree 1991 revised to 4th March 2011 – Section 15 (1) 7 Finance Circular No 9/95 Ministry of Health Section 21: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.10 Variances in Revenue Collected by the Ministry Each accounting Head must ensure that: a) Revenue is recorded against the correct account as per the chart of accounts; b) The Ministry of Finance (FMIS) is consulted before collecting a totally new revenue type; c) The recording of revenue is reconciled monthly with the Ministry of Finance; d) The Ministry of Finance is advised of any errors or discrepancies within 10 working days after the end of each month; and e) VAT is correctly accounted for and remitted as required.8 Every revenue collector who receives public money, other money or trust money must record the details in a cashbook, or in the Financial Management Information System.9 The Ministry maintained 3 bank accounts to deposit revenues collected by Nursing Stations, Health Centres and Hospitals around Fiji.
Refer Table 21.8 for details.

Table 21.8: Bank Details Bank Australian New Zealand Bank Westpac Banking Corporation Bank of South Pacific Account Number 1292446 42055600 719354 The revenue is collected by the Revenue Collectors and recorded manually.

The cash collected is then deposited into the respective bank accounts and revenue details posted into the FMIS general ledger.
The audit noted that the total revenue deposited in the 3 bank accounts varied with the cash at bank and revenue records as per the FMIS general ledger.

The total revenue collected by the Ministry in 2013 was $7,108,173.99 as per bank statement while the FMIS general ledger had a balance $5,806,748.12.

Hence a variance of $1,301,425.87 was noted between the two records.

The finding indicates that the Ministry may not be properly recording the revenues collected in the FMIS general ledger.
As a result the revenues recorded in the financial statements may be understated.

Recommendations The Ministry should ensure that: the revenues are correctly posted; and   all revenue reconciliations are carried out, checked by the accounting head and appropriate corrective actions taken.

Management Comments Audit Recommendations is acknowledged.
8 Finance Instructions 2010 Section 21 (1) 9 Financial Instructions 2010 Section 20 (7) Ministry of Health Section 21: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ All revenue clerks responsible have been informed accordingly on the change in allocations and adjustments for mis-postings will be made to reflect revenue in the correct allocations.
The supervisors will ensure that reconciliations are properly carried out and certified correct by the accounting head.
21.11 Expenditure Ledger Not Maintained All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger.10The Principal 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 The special purpose financial statement of the Ministry of Health for the year ended 31 December 2013 was prepared from the FMIS general ledger maintained by the Ministry of Finance.
The audit noted that the Ministry did not maintain an expenditure ledger which is a separate record that it could use as a basis to reconcile its accounts with that recorded in 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.

Recommendations The Ministry should:   ensure an expenditure ledger is maintained; and reconcile its expenditure ledger with FMIS on a monthly basis.
Management Comment Audit Recommendations is acknowledged.

Appropriate actions will take in due course in consultation with MOF.Revision of Finance Manual will be done by the end of 4th quarter, 2014.

21.12 Main Trust Account The receipts and payments of trust money must be recorded in a separate cashbook or set of ledger accounts12.

Each month the trust account must be balanced and reconciled with trust bank account.
The names and balances of each account must be listed and the reconciliation shall be signed by the responsible officer.13 All payments must be immediately recorded in the Financial Management Information System.14 The audit noted the following anomalies:  The Ministry’s bank reconciliation for the main Trust Fund account for December was not reconciled.
The main Trust Fund account had a debit balance of $77,075.59 in FMIS general 10 Finance Instructions 2010 Section 15 11 Ministry of Health Finance Manual 2011 Section 16 12 Finance Instruction 2010 Section 58(2) 13 Finance Instruction 2010 Section 58 (3) 14 Financial Instruction 2010 Section 15 Ministry of Health Section 21: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ ledger while the bank reconciliation balance as at 31/12/13 was $388,648.82 resulting in a variance of $465,724.41.
 The main Trust Fund Account bank reconciliation as at 31/12/13 comprised of $235,923.92 from previous years which could not be substantiated as no reconciliation was carried out in the previous years.

 The main Trust Fund Account cash book maintained by the Ministry had total receipts of $847,695 and total payment of $489,562.61.

However, the total receipts and payments as per FMIS general ledger were $715,901.41 and $640,251.90 respectively.

Refer Table 21.11 for details.


Table 21.11: Variance in Receipts and Payment Account Description Receipts Payments Ministry’s Cash Book ($) Balance as per FMIS ($) Variance ($) 847,695.00 489,562.61 715,901.41 640,251.90 131,793.59 150,689.29 The variance was due to receipts and payments not posted into the FMIS general ledger by the Ministry.
 The main Trust Fund Account for the year ending 31/12/12 was not prepared and opening debit balance of $152,725 was included in main Trust Fund account for the year ending 31/12/13.

The audit could not ascertain whether this amount was correctly stated.

 The main Trust Fund was overdrawn by $77,075.59 as at 31/12/13.

The Ministry may not be able to detect misappropriation or theft of Trust Fund money if monthly reconciliations are not carried out.
As a result the audit was not able to ascertain whether the amounts in the main Trust Fund Account are fairly stated.

Recommendations The Ministry should:   ensure that the operations of the Main Trust accounts are monitored regularly to avoid loss of funds; and take action to reconcile the variance between the FMIS and the cash book.

Management Comments Audit Recommendations is acknowledged.

For 2013 CWMH has submitted the reconciliations from January – December 2013.
December reconciliations were submitted to MOF and Auditor Generals Office where its audits were conducted.

Outline below is the process of receipting:- 1.

When we receive funds we issue receipts and the sum received is banked on daily basis where practical.

2.

The receipt for each month will be posted to FMIS at the end of month.

3.
3.

Payments if we draw funds we prepare payments Voucher signed and endorsed before we issue cheques manually Fund 9 True Trust is no link to Accounts Payable so we raise the journal to reflect the payments at the end of the year.

4.

This payment will be shown in Bank Statement for the same month but for General ledger it will reflect on the period 12 postings by Ministry of Finance where FMIS verify the payments.
Ministry of Health Section 21: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Explanations on the variances:  The variance is result of previous year (2009-2012) for non-posting of revenue and payments into GL whilst cheques and deposit are going to banks and GL was not updated.

 Payments posting of $489,501.11 through JV were reflected and the unsubstantiated amount of $235,923.92 was reflected in December reconciliations.
 MOF did provide an explanations and requesting to AG office to endorse posting of JV for the unsubstantiated figure that will match the GL figures We have seen and also comply with all standing regulations and process & procedures at all times.
21.13 Board of Survey In each year, the existence of all items shall physically be verified and a board of survey report should be compiled.15 An annual Board of Survey must be conducted each year to verify the existence and condition of assets recorded on the register provided that, for each agencies that have, in the opinion of the Permanent Secretary a large asset base, the Board of Survey to be conducted on a cyclical basis so that all assets are checked every year.16 The audit noted that the Ministry did not conduct Board of Survey for the whole of the Ministry.
As of the date of audit17 the Board of Survey for the Northern Division was in progress.

Due to the lack of planning and coordination by the Ministry, the Board of Survey for 2013 was not completed.

As a result the losses may not be properly disclosed by the Ministry’s statement of losses.

Recommendation The Ministry should ensure that the board of survey is conducted for the whole Ministry.

Management Comments Audit Recommendations is acknowledged.

For 2013, only maritime stations were not completed.
This was mainly due to logistics, high cost of transport, availability of members etc.

BOS for most of the maritime area were completed after this – BOS team accompanied Outreach Team to the outer islands to save costs.

It was further noted that staff at divisional level lacked basic knowledge on Board of Survey processes which had caused unnecessary delays – forms were not filled in properly, there has been no proper documentation in assets.
There is no special BOS Clerk at divisional level; work is done by general services/nursing clerks who have their own respective workload.

During on-site inspections, it was noted that the divisions did not take the BOS process seriously – no proper recording etc; which has really affected BOS Completion.The BOS clerk HQ has been making spot checks to the divisions and advising relevant officer on the basic processes for BOS.

It has been noted that there has been less errors in the forms since 2013.
15 Ministry of Health Finance Manual Section 11.4 16 Finance Instructions 2010 Section 49(1) 17 01/04/14 Ministry of Health Section 21: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.14 Trading and Manufacturing Account The Bulk Purchase Scheme (BPS) is the commercial arm of the Fiji Pharmaceutical & Biomedical Services (FPBS) that is operated under the Trading and Manufacturing Account (TMA).
TMA takes care of the supply of drugs and consumables to the wholesalers and retailers locally and also to the region.
On 01/02/11, Cabinet endorsed the Review Report recommendations as follows: a) b) c) d) Full cost of operation to be accounted for by BPS; Review of organisation structure and operations including stock management processes to ensure its effective operations; BPS to procure and pay for its own stock through the Fiji Pharmaceutical and Biomedical Supplies centre (FPBS) procurement process (consolidated orders); and BPS to be fully accountable for meeting customer needs both locally and regionally.
The audit noted the following anomalies in TMA.

21.14.1 Payables not Accounted for in the TMA Account In order to meet the objectives, financial statements are prepared on accrual basis of accounting.

Under this basis, the effects of transactions and other events are recognised when they occur (and not as cash or its equivalent are received or paid) and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate.
The review of TMA Profit and Loss Statements for the year ended 31/12/13 revealed the following anomalies.

 BPS paid $434,917 to the Ministry of Finance on 29/01/13.

However this payment was not reflected in the equity account in the TMA Balance Sheet.

 Expenses totalling $14,149.47 for 2012 were paid in 2013.

However, the expenses and payables for these expenses were not reflected in 2012 account.
In addition the expenses totalling $14,149.47 were not included in TMA Profit and Loss Statement for the year ended 31/12/13.

Refer Table 21.12 for details.


Table 21.12: Expenses Paid in 2013 Date 16/01/13 Cheque Number 1342 16/01/13 1341 05/02/13 Total 1343 Details December 2012 reimbursement of drugs to Fiji Pharmaceutical Biomedical Services (FPBS) November-December 2012 refund of salaries and wages for Bulk Purchase Scheme (BPS) staffs December 2012 telecom bill Amount ($) 8,184.70 5,813.40 151.37 14,149.47  Expenses totalling $5,506.10 which relate to 2013 were paid in 2014.
However, the expenses and payables were not recorded in the TMA accounts for the year ended 31/12/13.

Refer Table 21.13 for details.

Ministry of Health Section 21: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Table 21.13: 2013 Expenses Paid in 2014 Date Reference Details 30/01/14 30/01/14 30/01/14 Total Cheque No.

1436 Cheque No.

1435 Journal Voucher No.


5/13 December 2013 VAT charges paid to FRCA Telecom bill December 2013 Bank Fees 2013 Amount ($) 5,328.54 153.46 24.10 5,506.10 A significant amount of expenses were not accounted for in the TMA account for the year ended 31/12/13.

As a result the audit could not substantiate the accuracy of the TMA account.

Recommendation The Ministry must ensure that all expenses are recognised within the relevant accounting period.
Management Comments Audit Recommendations is acknowledged.

 BPS paid $434,917.56 to Ministry of Finance on the 11/02/2013 with the cheque number 1349.

Once the payment was done, a JV was raised to adjust the balance in the FMIS.

TMA Surplus account was debited while Dominion cash was credited.

(Refer to Annexure I )  Cheque number 1342/1341 – The expenses relating to drugs and refund of salary and wages were incurred in 2012, however, it was not reflected in the 2012 account.
The actual payment was done on the 02/01/2013 and thus a JV was raised in January to offset the figures.

Audit recommendation is noted and all the expenses from now onwards have been reflected in the correct accounting period to which it relates to.

 Cheque number 1343 - The exact amount for these expenses could not be determined in 2012 as it related to the month of December for which the service was still being performed.
The bill was received in January and thus the exact amount of the payment was known in January.

 Cheque number 1436/1435 – to determine the VAT charges paid to FRCA, VAT input and output figures are essential.

VAT input is the sales amount for the month of December whereas output is the expenses that are incurred for that particular month.
The amount for VAT for December could not be determined in that same accounting period because some of the bills relating to December were received in January 2014 for example, the Telecom Bill for December which was received on 20th January.

Bank Fees – The bank fees relating to 2013 were adjusted in January as this was deducted at the end of the month 31/12/2014.
21.14.2 TMA Surplus Account To be reliable, information must represent faithfully the transactions and other events it either purports to represent or could reasonably be expected to represent.
For example, a balance sheet represent faithfully the transactions and other events that result in assets, liabilities and equity of the enterprise at the reporting date which meet the recognition criteria.18 Each agency operating a trading and manufacturing activity must prepare: (a) quarterly profit and loss statement; (b) a balance sheet on an annual basis.19 18 Fiji Accounting Standards 19 Finance Instructions 2010 – Section 30 (1) Ministry of Health Section 21: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The TMA balance sheet had two equity accounts namely, TMA Surplus Capital Retained to CFA and TMA ACC Surplus.
The Ministry cannot make any postings into these two accounts as postings into these two accounts are done by Ministry of Finance.

The audit noted that the TMA Balance Sheet was not balanced as at 31/12/13 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.

If this amount is removed from the balance sheet there will be a variance for the same amount between the TMA net assets and the total equity.
The audit could not substantiate the balance of $384,998 disclosed as TMA Surplus Capital Retained to CFA in the balance sheet.

The finding shows that Ministry of Finance created a fictitious TMA Surplus Capital Retained to CFA to balance the TMA account.

Hence the TMA account is not balanced and not correctly prepared.
Recommendations The Ministry of Health should:   seek explanation from Ministry of Finance why fictitious equity account was created to balance the TMA account; and ensure that TMA account is properly prepared and balanced.

Management Comments Audit Recommendations is acknowledged.
 Provided below is the response from Ministry of Finance: TMA Surplus capital retained to CFA (4-22251-22999-940322) contains the postings done by Ministry of Finance in 2013 for two transactions which totaled up to the amount queried which is $384,998.

This amount consists of the two transactions below: 1.
Debit 4-22251-22999-940322 - $434,917.56 – remittance amount Credit 4-22251-22999-540301 - $434,917.56 The above posting was carried out since Bulk Purchase TMA had submitted a remittance of that amount to Ministry of Finance in 2013.

The remittance amount came from the surplus of amounts above and over the BPS TMA ceiling in 2012.

2.
2.

The actual transfer of excess from the fund 4 to fund 1 amounting to $17.31 was undertaken in 2013 to balance the IS and BS in 2013 since the BPS TMA was not able to identify the differences.

The transfer to fund 1 is based on the assumptions that the contra entry for the $17.31 will be in the fund 1 allocation.

Particulars Opening Balance 2013 adjustment Closing Balance Amount $49,902.74 $434,900.25 $(384,997.51) Tabulated above is the summary of the amount that comprises the $384,997.51 balance.
In this case $49,902.74 was the amount carried forward from previous years.

$434,900.25 was the adjustments undertaken in 2013 and explained above.Ministry of Finance is in the process of undertaking an accrual set up for all TMA’s requiring the creation of a new org.

This will prevent inter fund transactions and eliminate the TMA postings to fund 1.
Ministry of Health Section 21: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.14.3 Accounts Receivable Credit sales should be properly controlled to ensure debtors pay on time and to avoid bad debts being expensed.20 Accounts receivable should have debit balance.

The review of accounts receivable revealed the following anomalies.

 Since 2009, BPS sold all drugs and pharmaceutical supplies on cash basis only.
However the BPS had accounts receivable of $23,986.78 which is for credit sale prior to 2009.

This amount was not accounted for as accounts receivables in the balance sheet even though it was not written off.

 There was no credit sale during 2013 however TMA balance sheet as at 31/12/13 recorded accounts receivable balance of $4,959.29.

This amount was also included in the FMIS general ledger.

Refer Table 21.14 for details.


Table 21.14: Accounts Receivable Amounts Reflected in the GL Item Accounts Receivable Government Departments and Agency Accounts Receivable Companies Accounts Receivable Individuals Total Accounts receivable balance as at 31/12/2013 Allocation Number 4-22251-22999-560101 4-22251-22999-560102 4-22251-22000-560103 Amount ($) (1,506.15) (10,626.93) 17,092.37 4,959.29  Accounts Receivable should always have debit balances.
However the Accounts Receivable balance in the FMIS general ledger had 2 debtors with credit balances of $12,133.08 as at 31/12/13.

Refer Table 21.15 for details.

Table 21.15: Accounts Receivable with credit balances Account Number Details 4-22251-22999-560101 4-22251-22999-560102 Total AR Gov Depts and Agency AR Companies Amount ($) 1,506.15 10,626.93 12,133.08 The Ministry failed to investigate the credit balances in debtors account.
The findings show that proper records were not maintained for accounts receivable by the Ministry.

As a result the audit could not ascertain the accuracy of account receivable balance of $4,959 stated in the TMA Balance Sheet as at 31/12/13.
Recommendations The BPS must investigate:    the accounts receivable of $23,986.78 not included in the TMA when it was not written off; the accounts receivable balance of $4,959 when no credit sale was made in 2013; and the credit balance in the FMIS general ledger and take appropriate action.
20 Best Practice Guide Ministry of Health Section 21: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Management Comment Audit Recommendations is acknowledged.

 BPS operates and reports data on FMIS.

All transactions prior to inception of FMIS system, will not be or was not reflected in the data, and is not showing in the report.
However, part of the outstanding has been recovered and the unit is making maximum effort to contact the outstanding debtors for recovery purposes.

Requests have been sent off for write off.

 BPS operates on a cash sale basis that is; items are only released once the payment is received.

Once a customer requests for an invoice, it reflects in FMIS as a credit sale even though the item is not yet dispatched.

This is because TMA is set up in an accrual basis.


We are in the process of going through each and every individual invoices that were raised in previous years to identify the customers who requested for the invoice and passing a credit note where necessary.

Accounts receivable should have a debit balance; however, some invoices that were relating to previous years had been cleared off in 2013 which led to a difference in the GL balance.
Invoices that were relating to previous years had been followed up in 2013.

Some invoices were then paid by the customers and the items were dispatched and receipted whereas credit note was created for the rest of the invoices.

This had an impact on the 2013 accounts as the amounts could not be back dated.

21.14.4 Opening Stock Balance A stock take must be undertaken each year to verify the existence and condition of inventories on hand.21 The BPS does not hold any inventories at any point in time.
The orders that are placed by customers are fulfilled through a request to FPBS to provide that amount of inventory to the customers.

However an Opening Stock of $40,973 was included in the TMA Trading Accounts for the year ended 31/12/13 when there was no actual stock held.

In addition the opening stock of $40,973 was also recorded in the FMIS general ledger.

The finding shows that opening stock amount is incorrectly stated in the TMA Trading Account.
As a result gross profit transferred to TMA Profit and Loss Statement is understated by the same amount.

Recommendation The BPS should investigate and make an adjustment to ensure opening stock is not incuded when no stock are held at the end of the year.

Ministry’s Comments Audit Recommendations is acknowledged.

The opening stock has been transferred from 2012 and also recorded in the FMIS system.
BPS has taken note of the auditors recommendation and does not prepare stock certificate from October 2013 onwards, therefore, there is no closing stock recorded for year ended 2013.

21 Finance Instructions 2010 Section 38 Ministry of Health Section 21: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.14.5 TMA Bank Reconciliation Reconciliations are the tallying of two sets of transactions to ensure accounts are recorded properly.
Reconciliations are carried out on a monthly basis and to be reviewed by the Senior Officer.

It helps identifying discrepancies in the recording of transactions.

Review of BPS bank reconciliations revealed the following anomalies.

 The bank reconciliation for the month of June was not prepared by BPS.

As a result the reconciliations after June may not be correct.

 The previous month’s closing balance of the General Ledger (GL) was not carried forward as the opening balance for the following month.
Refer Table 21.16 below.
Table 21.16: Details of Variance in Closing and Opening Balances Variance ($) Months Opening balance as per GL ($) Closing balance as per GL ($) 902,818 535,830 479,821 516,012 510,084 - 473,703 466,727 483,574 478,629 464,106 468,458 January February 63,833 March 379,917 April (42,061) May (20,423) June - July - August (12,088) September 4,282 October (11,372) November (23,937) December (2,807) * Variance-Opening balance of current month less closing balance of previous month 968,128 966,651 915,747 437,760 495,589 - 463,511 461,615 471,009 472,202 454,692 461,299  As at 31/12/13 the bank reconciliation had a balance of $468,458.37 while the FMIS general ledger had balance of $456,636.91.
A variance of $11,821.46 was noted between the bank reconciliation balance and the FMIS general ledger.

In the absence of appropriate supervision and proper reconciliations, the Ministry may not be able to detect misappropriation or theft of money.

Recommendation The Ministry must ensure that monthly reconciliations are properly carried out.

Management Comments Audit Recommendations is acknowledged.

 The bank reconciliation for the month of June was prepared on 03/07/2013.
The entries made was mistakenly written as opening balance as per GL when it should have been closing balance as per GL (Part 2).

The variance of $11,821.46 is due to some unidentified invoices and postings.

We are currently going through all the invoices to ensure that it is posted correctly.
Ministry of Health Section 21: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.14.6 VAT Amount Incorrectly Stated VAT account should be properly reconciled and recorded in the TMA Balance Sheet either as VAT Receivables or VAT Payables.

The audit noted that the Ministry reported a VAT Receivable of $142,425 in the TMA Balance Sheet as at 31/12/13.

However the VAT calculations performed by audit noted a VAT payable of $2,592.
Therefore VAT amount was wrongly stated in TMA Balance Sheet.

As a result the net assets as at 31/12/13 were materially misstated.

Recommendation The Ministry should ensure that VAT calculations are properly carried out and correct amount of VAT receivable or VAT Payable is stated in the accounts.

Management Comments Audit Recommendations is acknowledged.

A meeting was held with the auditor general to discuss the VAT calculation issues.

A correct way of VAT calculation has been advised.


However, due to the account being closed, no changes could be made to the current report.

The auditor’s recommendation has been taken into account and a correct way of VAT calculation would be done for the 2014 accounts to ensure it complies with the relevant standard.

21.14.7 Rent Payments Value for money should be obtained for the rental payment by the BPS.

The BPS uses just in time inventory management system and does not hold any inventory in stock.
Hence the BPS does not hold any inventory stock and does not require a warehouse.

However the audit noted that BPS was paying $1,500 per month or $18,000 per annum to FPBS for 44.93 square meters of space for the warehouse.

The warehouse was not utilised by BPS as no stocks were held during the year as such value for money was not obtained for the rental payments.

Recommendation The BPS should not have a warehouse when it does not hold any inventory.
Management Comments Audit Recommendations is acknowledged.

The rental payment was done based on the evaluation that was done by the Public Service Office Accommodation.

It was implemented in 2011 following the cabinet decision no.

31/2011.

However, due to BPS operating on a Just in Time basis, the warehouse, should not be included as part of BPS rental payment.
Ministry of Health Section 21: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ An evaluation will be carried out again this year by the Public Service Office Accommodation to exclude the warehouse portion from the BPS rent and to only include the area which is occupied by BPS staff.

This would reduce the amount of rental payment each month, and hence, the expense.
HEADQUARTERS 21.15 Anomalies in VAT Application Each Accounting Head must ensure that VAT is correctly accounted for and remitted as required.22 The audit noted several instances of VAT charged on zero rated revenue allocations.

Hence VAT was incorrectly collected by the Ministry for these allocations.

Refer Table 21.17 for examples.
Table 21.17: VAT Charged on Zero Rated Items Date Name Particulars 31/05/13 Net Taito 08/03/13 BPS 08/03/13 BPS 22/04/13 BSP 27/05/13 BPS 25/06/13 BPS Total Accountable advance-Rotuma Refund of salary and wages Refund of salaries and wages Salaries and wages Salaries and wages Salaries and wages Revenue Receipt Number 178793 20499 123402 123411 123419 123425 Allocation VEP VAT VIP 570310 9011242 9011242 9011242 279999 270202 ($) ($) ($) 3,850.00 502.00 3,348.00 3,377.00 441.00 2,937.00 3,243.00 423.00 2,820.00 3,158.00 412.00 2,746.00 3,567.00 465.00 3,102.00 3,546.00 4,077.00 532.00 18,498.00 2,775.00 21,273.00 The audit also noted that VAT was not collected on a number of revenue allocations that were not zero rated.
This resulted in loss of Government revenue by $134,561.

Refer Table 21.18 for examples.
Table 21.18: VAT not Collected Where Applicable Date Name Particulars 23/01/2013 Wood & Jepsen Consultancies Victoria Wine & Spirits Ltd 28/03/2013 02/04/2013 Motibhai Co. Ltd. 02/04/2013 Central Manufacturing Co. Ltd. Tappoo 12/04/2013 29/05/2013 Global Fund 02/07/2013 Assistance Account Post Fiji Limited Quarantine fees Renewal of Tobacco Licence Fee Renewal of Tobacco Licence Fee Renewal of Tobacco Licence Fee Importance Licence under section 25 of Tobacco central Reimbursement Revenue Receipt Number 72552 Allocation VEP VAT VIP 230311 ($) 95.00 ($) 14.00 ($) 109.00 157514 229999 150,000.00 22,500.00 172,500.00 157515 229999 150,000.00 22,500.00 172,500.00 157517 229999 250,000.00 37,500.00 287,500.00 157567 279999 150,000.00 22,500.00 172,500.00 178791 50499 180,555.00 27,083.00 207,638.00 09/01/2013 BSP BSP rental 61408 Outstanding revenue 243353 No allocation 229999 10,357.00 1,554.00 11,911.00 1,533.00 230.00 1763.00 22 Finance Instructions 2010 (21) Ministry of Health Section 21: Page 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Date Name Particulars 27/02/2013 Samman Shivam 06/03/2013 Atish Prakash 07/03/2013 28/05/2013 BSP Jogniti Ben Patel Total Sale of tobacco product in small quantities Sale of tobacco product in small quantities BSP rental No smoking sign on Public place Revenue Receipt Number 72630 Allocation VEP VAT VIP ($) 229999 1,000.00 ($) 150.00 ($) 1,150.00 72642 229999 1,000.00 150.00 1,150.00 72643 178789 239999 27999 1,533.00 1,000.00 230.00 150.00 1763.00 1,150.00 134,561.00 This indicates lack of supervision of revenue collectors by a senior officer.
This may result in inaccurate disclosure in the financial statements and loss of tax revenue.

Recommendation The Ministry should ensure that VAT is accurately collected and remitted to FRCA.

Management Comments Audit recommendation is acknowledged.

FPBS while receipting cheques in respect of the wages and salaries will ensure that these payments are receipted exclusive of Vat and any amounts receipted this year with a VAT amount be journalised and correct accounts be credited.
Copies of journal vouchers will be submitted.

Audit findings are correct and such error occurred by revenue clerks while accounting for revenue and overlooked this.

To correct the error we will raise a Journal Voucher for the mis-posting.

Vat understated in this instance can be incorporated in the current month payment and paid accordingly to FRCA.

The same amount of vat deducted in error will be reduced in the current vat payment to FRCA.
21.16 Overpayment of Salary An Officer, who has resigned, deemed to have resigned or terminated shall forfeit all the rights and privileges of his office from the date decided by the Commission.23 An officer who resigns without giving 30 consecutive days’ notice may be required to pay 30 days salary in lieu of notice.24 The audit noted that several officers continued to receive salaries and allowances after the effective dates of their resignations, terminations or ceasing of acting appointment due to delay in ceasing the payment of salaries and allowances.
Refer Table 21.19 for examples of salaries overpaid in 2013.
Table 21.19: Overpayment of Salaries Name EDP Position Resignation Type Salote Lagilagi Shaneeda Saheb Dr. Abbas Zafar Dr. Charlie Rasue Temporary Relieving Dietician Junior Physiotherapist 64678 91490 92415 Medical Officer 64821 Medical Officer Resignation Resignation Resignation Resignation 23 General Orders 222 (d) 24 General Orders 222 (a) Ministry of Health Overpaid Amount ($) 1,263.96 290.28 568.48 1,153.86 Section 21: Page 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Name EDP Position Resignation Type Dr. Helen Heimanoa Urvashi Payal Nilesh Naween Chand Amitesh Kumar Dr. Shalendra Nath Anareta Buloutiri Isireli Koyamaibole Latileta Bau Temo Ravula Kaleli Buinimasi Josai Tiko John Brown Devika Devi Bisma Wati Dr. Dawnette Lailai Sunita Ram Rajni Kaur Jen Prasad Aashish Lal Sakiusa Niumataiwalu Eliki Lesione Total Resignation Resignation Resignation Resignation Resignation Resignation Senior Assistant Health Inspector Resignation Staff Nurse Administrative Officer Senior Medical Officer Senior Medical Officer Superintendent Radiographer Senior Pharmacy Officer Dental Hygienist 63920 Medical officer Dental Officer 91357 63139 Physiotherapist 90937 Medical Officer 92159 Medical Officer 90293 Medical Officer 90480 33016 53507 63678 90276 40947 92863 64919 91116 Medical Officer Typist 62733 Typist 90812 Staff Nurse 33656 Staff Nurse 33937 Pharmacy Assistant 46504 Technical Officer II 53582 Acting Appointment Acting Appointment Acting Appointment Acting Appointment Deceased Resignation Resignation Resignation Terminated Resignation Resignation Resignation Deemed to Resign Deemed to Resign Overpaid Amount ($) 478.35 3,605.54 5,266.49 162.42 4,077.48 974.54 1,263.96 1,825.58 360.00 550.00 98.41 708.68 1,462.70 693.00 50.00 1,300.63 1,244.09 1,245.99 332.26 1,331.79 1,221.82 31,530.31 The overpayment of salaries due to the delay in cessation of salaries has been an on-going issue for the Ministry.
The Ministry maintained two overpayment recovery registers to record recovery of overpaid salaries from Clinical and Technical Officers.

However as at the date of audit these registers were not updated which indicates no recovery was made.

In addition no Overpayment Recovery Register was maintained for Headquarters staffs even though some staffs were overpaid their salaries during the year.
The audit also noted that the Ministry did not maintain a list of officers who were overpaid including the amount overpaid and overpayment recovered.

The Officers were over paid due to the negligence of Senior Medical Officers and immediate supervisors to inform personnel section regarding resignations, terminations and cessation of acting appointments in a timely manner.
Recommendations The Ministry should:  take appropriate action to ensure that salaries of the Officers are ceased on time to avoid overpayment;  make consorted effort to recover salaries overpaid; and  surcharge officers responsible for causing delays and not advising salary changes to headquarters on time.

Management Comments Audit recommendation is acknowledged.
Ministry of Health Section 21: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Ministry will ensure prompt action is taken when officers apply for resignations to implement effective process of communication within the ministry for the immediate cessation of salary with the Accounts Department.

The Ministry has been pro – active in the cessation of salaries by treating it as a priority before formalising of resignations are done.
Recovery communication between Divisional Offices and Headquarters needs to be improved and these overpaid salaries may be written off if not recovered.

We don’t agree with anyone being disciplined because ways and means of recovering big amount which so far have not been explored in full.

The HR officers are reminded to strictly adhere to their roles and responsibilities.
21.17 Over Paid Salaries for the Past 4 Years It is the responsibility of the accounting head of the agency to ensure that salaries and wages are paid correctly thus no over payments are made.

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

This indicates that the Ministry did not maintain record and monitor salaries overpaid in 2013.

The Ministry provided records of salaries overpaid, overpayment recovered and amount outstanding for the years 2010 – 2012 only.
However audit could not substantiate these amounts as the Ministry failed to maintain appropriate records of all overpayments made.

Refer Table 21.20 for details for the past 4 years.
Table 21.20: Overpaid Salaries 2010 – 2013 Years Overpaid salaries ($) Amount recovered ($) Amount Outstanding ($) 2010 2011 2012 2013 Total 274,324.92 293,395.95 42,624.91 No record 610,345.78 9,999.92 16,352.27 666.72 No record 27,018.91 264,325.00 277,043.68 41,958.19 No record 583,326.87 Percentage Recovered 4% 6% 2% - 4.4% Review of the overpaid salaries for the years 2010 – 2012 revealed that the Ministry overpaid $610,345.78 out of which only $27,018.91 or 4.4% was recovered.
Due to the failure by management to keep proper record and follow up on salary overpayment substantial amount of salary overpayment was not recovered and resulted in loss of public funds.

Recommendations The Ministry should:  keep proper record of all salary overpaid;   take appropriate action to recover salaries overpaid; and surcharge senior officers responsible for not following up overpayment recoveries.

Management Comments Audit recommendation is acknowledged.
Ministry of Health Section 21: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Internal control measures needs to be strengthened to ensure that laid down procedures/instructions are followed closely and promptly all stations in liaising with HQ to avoid any loss to government.

The Ministry will ensure prompt action is also taken when officers apply for resignation and at the same time list of names forwarded to Data Bureau.
The Ministry will ensure prompt action is taken when officers apply for resignation and at the same time letters will be prepared for those owing to Govt.

21.18 Anomalies in Termination of Kamla Prasad Mr. Kamala Prasad, (EDP 92377) was employed as a Driver by the Ministry at Labasa Hospital.
On 16/07/13, Mr. Kamala Prasad drove the vehicle GP 105 to pick up a Plumber and Bio-med Technician from Labasa Hospital to travel to Nabouwalu hospital where he parked the vehicle which later rolled and hit a coconut tree.

The total cost of damages to the vehicle was estimated to be $11,923.85.

The Ministry’s National Disciplinary Committee (NDC) deliberated on 29/08/13 on Mr. Kamla Prasad’s case and decided that the Officer to be terminated from the service.
The Ministry also obtained opinion from the Solicitor General’s Office on Mr. Prasad’s case.

The Solicitor General in its opinion dated 23/09/13 stated that the accident was caused as a result of the driver error.

Therefore, advised that Mr. Prasad be surcharged for the insurance excess accordingly.25 However, the Ministry on 31/10/13 based on its NDC decision terminated Mr. Prasad.

The audit noted that the Ministry terminated Mr. Prasad 63 days later from date of NDC decision to terminate Mr. Prasad.
As a result Mr. Prasad was paid wages totalling $2,530.74 for 63 days until the date of his termination.

The Ministry could have saved this amount if the decision to terminate was not delayed.

The audit further noted that Mr Prasad was also paid his overtime hours and annual leave totalling $4,657.57 in addition to $2,530.74 paid as wages on his termination.

However the Ministry did not deduct insurance access totalling $3,000 from him.
As a result of delay in terminating Mr. Prasad and non-deduction of insurance excess the Ministry lost total of $5,530.74 of public funds.

Recommendations The Ministry should:  ensure that disciplinary cases are not delayed to avoid incurring unnecessary salaries/wages; and  deduct insurance access from the Drivers wages.

Management Comments Audit recommendation is acknowledged.
25 Memorandum MD9/2/781 23/09/13, Paragraph 4 Ministry of Health Section 21: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The officer had appeal the decision to terminate his appointment.The officer had being reinstated back into the service with effect from 15/11/2013.

Any disciplinary cases need to go through PS and Ministers decision.NDC to instigate surcharge action by delivering the letter to the officer at fault.
As for the insurance excess relevant unit have been advised to discuss the same from source as the officer is back in the service.

The Ministry is now ensuring that disciplinary cases are dealt with in a timely manner and relevant units to be advised.

The officer was reinstated after winning his appeal.

The payment is subject that the officer was still working.

The officer was giving service to Ministry which is liable for compensation.

Any reliever would be paid the same.


There is no loss to the government.

Further OAG Comments The Officer has been reinstated however the insurance excess is yet to be recovered from him.

21.19 Contingency Sum Not Excluded from the Contract Price The Ministry undertook 23 capital projects during 2013 for total value of $16,210,246.84 (VIP).
Most of these projects were completed in 2013 while a few such as Refurbishment and Renovation of Operating Theatre Complex, East Wing, CWM Hospital awarded to Pacific Building Solutions (PBS) at a total cost of $9,954,295.12 (VIP) will continue till next year, 2014.

For all the capital projects reviewed during the audit, the GTB in its letter to the contractors stated that the contract price was inclusive of contingency sum.

Hence the total contract price should exclude the contingency sum.
However, the audit noted that the Ministry did not exclude the contingency sum from the total contract price.

As a result the contingency sum was not set aside by the Ministry and all contracts were overpriced by the amount of contingency sum.

Refer Table 21.21 for details.
Table 21.21: Contingency Sum Not Excluded Project Name  Renovation and refurbishment of St. Giles Hospital Percentage of Contingency sum 10% Contingency Sum ($) Contract Price ($) Contract Awarded for ($) 25,883.00 232,947.00 258,830.00  Refurbishment and Renovation of Operating Theatre Complex, East Wing, CWM Hospital  Refurbishment and Maintenance of Vunidawa 10% 10% Sub- Divisional Hospital 995,429.51 8,958,865.61 9,954,295.12 28,296.40 282,964 254,667.60  Construction of Maternity Unit Extension & 1.89% 50,000.00 2,640,015.99 2,590,015.99 Associated Works at Sigatoka Hospital  Refurbishment of Maternity Unit – CWM Hospital  Construction of a New Hub Centre at Kamikamiica Park Lautoka  Refurbishment of East Wing, CWM Hospital Extension Street  Refurbishment of West Wing, CWM Hospital Waimanu Road  Renovation for Accident & Emergency Department at CWM Hospital 10% 10% 10% 10% 10% 11,858.00 19,470.00 118,580.00 194,700.00 106,722.00 175,230.00 9,350.77 93,507.70 84,156.93 8,578.13 85,781.30 77,203.17 15,215.00 152,150.00 136,935.00 Ministry of Health Section 21: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The contingency sum is the amount that can be used to meet additional project expenses due to variations in the project work during the implementation phase.
However all variations submitted by the Contractor are to be approved by the GTB.

The variations can be allowed only up to the contingency sum only.

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

Refer Table 21.22 for examples of projects completed and contingency sum paid.

Table 21.22: Contingency Sums Paid without any Variations Project Name 1.

Renovation and refurbishment of St. Giles Hospital 2.
Refurbishment of Maternity Unit – CWM Hospital 3.

Construction of a New Hub Centre at Kamikamica Park Lautoka 4.

Refurbishment of East Wing, CWM Hospital Extension Street 5.

Refurbishment of West Wing, CWM Hospital Waimanu Road 6.
Renovation for Accident & Emergency Department at CWM Hospital Percentage of Contingency Sum 10% 10% 10% Contingency Sum ($) 25,883.00 11,858.00 19,470.00 Contract Price ($) 232,947.00 106,722.00 175,230.00 Total Amount Paid ($) 258,830.00 118,580.00 194,700.00 10% 10% 10% 9,350.77 84,156.93 93,507.70 8,578.13 77,203.17 85,781.30 15,215.00 136,935.00 152,150.00 The audit further noted that the Articles of Agreement and the Special Condition of Contractor did not include any clause about the contingency sum.
The finding shows that the Ministry did not comply with the terms and conditions of the GTB for approved contracts.

Recommendation The Ministry should:    make an effort to recover the overpaid amount from the contractors; ensure that contingency sum is excluded from the contract price; and take appropriate action against officers for not allowing for contingency sum in the contract agreement.
Management Comment  Audit comments are noted but as far as certification of payments and execution of payments are concerned, the Ministry was guided by MWT&PU hence the same has been cross checked and there has been no overpayment to any contractors.

 Final vetting of the Contracts is done by MWT&PU and the same will be discussed with the Project Administration agency to implement the same.
However, new measures will be implemented from this year to ensure better transparency and accounting records are maintained for all projects whereby prime cost, retention, contingency and performance bond aspects are correctly accounted for.

 All payments are in order as scope of works for maintenance varies tremendously from initial scoping carried out by MWT&PU, hence from this year; more work is discussed to occur on the scoping area to avoid variations.
Further OAG Comments The Ministry did not provide evidence to substantiate its claim that there was no overpayment.
Ministry of Health Section 21: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.20 Retention Sum Not Kept In Trust Fund Account In respect of any Interim Certificate issued before the issue of Certificate of Practical Completion the Employer may, retain a percentage (in the Condition called the Retention Percentage) of the total value of the work, materials and goods26.
All amounts retained as retention sum are trust funds to be paid to the contractor upon successful completion of retention period.

Therefore retention funds should be deposited in the Trust Fund account to ensure funds are available when retention period is complete particularly when projects roll over to next year.
The audit noted for several projects the retention sums were deducted from the claims submitted by the contractors, however the sums retained were not deposited in the Trust Fund account with the Ministry.

The retention sums remained in the capital project allocation and were fully utilized by the Ministry.

Hence the Ministry did not put aside funds to reimburse retention sums held from the contractor’s progress claims.
For example the audit noted a project which was completed with retention period also expired but the Ministry did not pay the contractor the retention sum withheld.

One of the reasons was that the Ministry did not keep aside the retention sum in a trust fund and hence did not have actual cash on hand to pay for the outstanding retention money.

Refer Table 21.23 for details of retention funds deducted.
Table 21.23: Total Retention Funds Deducted Project Name Renovation and refurbishment of St. Giles Hospital Total Project Cost (VIP) ($) 258,830.00 Percentage of Retention Retention Amount ($) Retention Amount Due Date 10% 25,883.00 7/10/13 (6 months from date of CPC on 17/4/13) Retention Amount Paid ($) Not yet paid Retention Amount paid from (Allocation) - The Ministry did not follow proper procedures for the retention sums deducted.
The Ministry will require additional funds to pay off the retention sum withheld.

It is highly likely that the Ministry will have to divert funds from other allocation to pay for these retention sums in the future.

Recommendation The Ministry must ensure that retention sums deducted from the contractors progress claims are set aside in a trust fund account.

Management Comments Audit comments are noted.


Ministry receives budgetary allocation of respective amounts in its maintenance allocation and such retention sums are noted during budget submissions for the following year.

However, this will be discussed with Ministry of Finance and most appropriate measures will be implemented.
26 Articles of Agreement, Clause 30(3)(a) Ministry of Health Section 21: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.21 Anomalies in Project Management Capital projects need to be properly supervised and managed from planning to post implementation phase.
Project management requires great deal of analytical and management skills to ensure projects are completed on time and according to the predetermined design and specifications and within the budget.

The audit examined several capital projects carried out by the Ministry during 2013.

The following anomalies were noted in terms of project management and supervision.

 Progress payments to the contractor should be made after reviewing the progress of the project, materials used and workmanship.
Upon inspection and before payment is effected a progress report and inspection reports should be prepared by the Architect/Supervising Officer.

However the Ministry made several progress payments for projects undertaken without progress report or inspection reports from the Architect/Supervising Officer.

The Ministry was not able provide any progress report or inspection reports for any of the projects.

indicates This Architect/Supervising Officer or the Clerk of Works (CoW) before payments were made.
the contractors work was not evaluated by that progress of the  The Ministry should have site meeting with the Contractor occasionally.

However despite several projects undertaken in 2013 the Ministry was only able to provide minutes of one meeting held on the project site for Renovation and Refurbishment of St. Giles Hospital.

This indicates hardly any meeting was held with the contractor on the site.

 The Ministry should appoint a Clerk of Works for every capital project it undertakes.
The role of the Clerk of Work should be to inspect the materials used and review the progress of the projects and provide periodic reports on the progress of the project to ensure all works are carried out to the satisfaction of the Ministry.

The Ministry had 2 Clerks of Works – Hospital – Mr Sakiusa Kotobalavu and Clerk of Works Health Centre & Nursing Stations – Mr Filipe Lagimiri to supervise all its capital projects.
The Clerks of Works were the staffs of the Ministry and based at Ministry of Health headquarters.

The Clerks of Works were not based at the project site to provide direct supervision.

Hence there was very little on site supervision of the projects by the Clerks of Works.

According to the Principal Administrative Secretary, Asset Management Unit; Mr. Mohammad Intiaz Shah, the Clerk of Works occasionally visit the project site to review project works.
However the Clerks of Works did not have any record of project inspections such as date of site visit, anomalies noted, project progress reports, reworks required, etc.

The findings indicate that adequate project supervision and reviews were not carried out by the Ministry.

There is a high risk that the contractors may use substandard materials and provide poor workmanship.
Recommendations The Ministry must ensure that:  payments to contractors are made based on the progress reports submitted by project Architects/Supervising officers.

Ministry of Health Section 21: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________  periodic on site meetings with the contractor are convened; and  Clerks of Works are based on the project sites to supervise projects.

Management Comments Audit recommendation is acknowledged.
 Due to budgetary constraints much of the monitoring and on-site visual checks were delegated to respective hospital or Divisional General Services Heads and were carried out by in-house Project Officers.

Challengers faced were lack of resources, however, Ministry is improving given the increased number of projects implemented and completed during the year.

 This was delegated to various institution desk officers, however comments are noted and standard guidelines are expected to be implemented.
 Ministry has not budgeted for this, however, will ensure allocation of Clerks of Works on site on case by case basis 21.22 Kamikamica Park Hub Centre Contract No.

WSC190/2012 was awarded to Cope Constructions Limited in 2012 for construction of Kamikamica Park Hub Centre in Lautoka.

The contract was signed on 11/10/12 with duration of 12 weeks to complete the project.

The total value of the project was $194,700 VIP with a 10% contingency sum.
The audit noted the following anomalies:  A Clerk of Works is to be assigned to monitor and endorse the satisfactory completion of stages of works prior to release of payments.27 However the Ministry did not appoint Clerk of Works to oversee the project.

Hence there was no means by which the Ministry monitored the quality of materials used and work done by the contractor.

 The Project was supposed to be completed on 03/01/13 but it was actually completed on 11/07/13.
The project completion was delayed by 6 months.

The contractor was not held liable for the delay as there was no clause in the contract agreement for the penalty due to delays in the project completion.

 According to the progress payment schedule as per the contract the third progress payment was to be made for $43,807.

However the Ministry paid $45,810 to the contractor.

This resulted in an overpayment of $2,002.50.


This indicates that the Ministry does not have project management skills and capabilities and it did not perceive the importance of having a Clerk of Works.

There is a high risk that project works may not be carried out up to the standard required by the Ministry.
Recommendations The Ministry should:  appoint a Clerk of Works to closely monitor every project;  ensure that penalty clause is stated in the contract to avoid delays in completion of project in future; 27 Contract WSC 190/2012 Section 10 Ministry of Health Section 21: Page 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________   ensure that payments are properly reviewed and made according to the approved progress payment schedule as per the contract; and recover the overpayment from the contractor otherwise surcharge the officers responsible for overpayment.
Management Comments Audit recommendation is acknowledged.

 Due to budget constraints and total value of the project, need for on-site Clerk of Works was not recommended.

Off-site Clerks of Works duties were carried out by than Divisional Health Inspector.

However, Ministry has commenced on engagement of on-site Clerks of Works for all major capital projects.

 Comments noted.

Ministry will ensure that all contracts have penalty clauses, in case of non-compliance.
 All payments for this project was based on the certifications received from DHI – Western and were progressively executed.

 Ministry has re-calculated the figures as per the contract and actual payments made.

There is no overpayment.

As for the delay in completion of the project, this was due to the adverse weather conditions early in 2013 that affected the project programme for 2 weeks.

Further OAG Comments As per claim number 3 the Contractor was overpaid by $ $2,002.50.
21.23 Construction of Grade 6 Quarters at Bagasau Nursing Station - Tender No.

267/2012 The Ministry via GTB called tenders for the Construction of a Grade 6 Quarters for Bagasau Nursing Station in Cakaudrove in July 2012.

The following 5 companies submitted their tenders.

1.

Fortech Construction Ltd 2.

Sharnik Construction Ltd 3.

Cope Construction Ltd 4.

Fijiana Builders Ltd 5.


M. Naidu Land Development $345,254.00 $288,530.00 $311,080.00 $148,500.00 $294,580.00 However, on 08/08/13 the Ministry requested the GTB to withdraw the tender due to high price quoted by the bidders and insufficient budget held by the Ministry.

Tender Board in its meeting held on 08/08/13 approved the withdrawal of the tender as requested by the Ministry.
The Ministry further in its correspondence on 19/08/13 requested that the construction of the quarters to be carried out by Ministry of Works, Transport and Public Utilities (MWT and PU) at the estimated cost of $185,566 as quoted by the MWT and PU.

The Ministry of Finance also approved the request in its correspondence dated 30/08/13 for the waiver of tender and that the proposed works to be carried out by MWT and PU.
The Ministry engaged MWT and PU on 19/09/13 through a Memorandum of Understanding (MoU).

Review of the construction of the quarters revealed the following anomalies.

 The Ministry paid $185,566 on 26/09/13 to MWT and PU prior to commencement of the project works.

Hence the Ministry made advance payment in full to the MWT & PU.

 The MoU between the Ministry of Health and MWT and PU did not state the project commencement or completion date.

Hence project duration was not stated in the MoU.


Ministry of Health Section 21: Page 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________  Review of the correspondence between both the Ministry’s Permanent Secretaries on 07/08/12 revealed that the estimated time line for the completion of the project was within 8 weeks from the effective date of MoU which was 19/09/13.
However according to Principal Administrative Secretary, Asset Management Unit, Mr. Mohammad Intiaz Shah no work was carried out by MWT and PU as at 31/12/13.

The Ministry did not follow up on the project progress of the project from the MWT and PU.

Due to laxity by management and poor supervision the works were not carried out.
Recommendations The Ministry should ensure that:  MoU include project commencement and completion dates;  advance payments are not made to the Contractor unless it is stated in the agreement;  follow up with MWT and PU on the progress of the project to determine the reasons for the delays for further actions; and investigate the advance payment and take appropriate action.

 Management Comments Audit recommendation is acknowledged.
 Ministry will ensure that even for contracts amongst inter-government agencies will have commencement and closing dates in future.

 Works contracted to be carried out by MWT&PU are considered as internal [inter-government agency] and are controlled under Trading & Manufacturing Account System, hence advance payment becomes necessary as MWT&PU do not operate commercially.

 It was late during the year that funds and appropriate approvals were released.
It was agreed the mobilisation and demobilisation cost would be saved by differing the project to 2014.

 It’s the nature of the government machinery that is in-place that warrants advance payments and receive periodical acquittals against the funds utilization that has limitations not to make advance payment.
21.24 Negligence of Doctors at CWM An employee must act with care and diligence in the course of employment in the public service.28 The audit noted that during the year 2013 a number of patients were not properly treated by the doctors at CWM Hospital which resulted in additional cost from further treatment overseas.

These were surgeries undertaken by local doctors which were not successful and were later referred to hospitals in India.
The cost for further treatment in India was paid by the Ministry of Health.

However no investigations or actions were undertaken against the doctors responsible for negligence or unsuccessful surgeries.

Refer Table 21.24 for examples of unsuccessful surgeries.
28 General Orders Annexure II (2) Ministry of Health Section 21: Page 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Table 21.24: Examples of Patients Treated at CWM and Referred to India for Further Treatment File Number Patient Name Treatment in Fiji Pratinesh Singh Hand surgery 09/13 52006-73-06 Sashi Kumari 52001-17-22 Ashok Kumar Hip Replacement Hip Replacement Cost (India) ($) Treatment in India Doctor who treated in Fiji 49,246.70 Hand surgery correction Dr. Joeli Mareko 14,338.67 Hip Replacement Hip Replacement Dr. De Asa Dr. De Asa Patient awaiting approval to be sent to India for hip replacement.
Recommended by Dr. De Asa 128/13 Sumintra Devi Hip Replacement 11,878.82 Hip Replacement Dr. De Asa The finding shows that either the doctors were not capable of such operation or were negligent in doing their job.

Hence patients were later referred to India for further treatment resulting in loss of public funds when such treatments are locally available.
Recommendations The Ministry should:   investigate and take disciplinary action against doctors if they are found to be negligent; and review these cases and implement strategies to ensure such cases do not reoccur.

This may include further training provided to local doctors.

ManagementComments We acknowledged the audit observation which needs correction.

 Complications do happen during and after surgeries especially with Trauma /Injuries or surgeries involving bony structure.
 Ministry of Health has system in place in dealing with UOR (Unusual Occurrence Report) There is a system in place for Professional or Clinical misconduct which involves respective Councils, Medical Officers, Dentals or Nurses.

We don’t have Hand Specialist (Plastic Surgeons) and Specialist for Hip Replacement available locally and is done overseas.

Only symptoms are treated before patient leaves for Overseas.

There is one Plastic Surgeon we have just appointed in February 2014.
21.25 Overseas Medical Treatment The quotation process is intended to ensure that the agencies receive value for money based on fair competition and ethical dealing.29 A sum of $1,300,000 was allocated in the 2013 budget for overseas medical and consultancy services.

This amount was fully utilized by the Ministry during the year.
The audit noted the following anomalies: 29 Procurement ( Amendments ) Regulations 2012 Section 4 Ministry of Health Section 21: Page 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________  The Ministry sent patients for treatment to number of hospital in India which includes Apolo Hospital, Shanti Mukand Hospital, Batra Hospital and Balaji Hospital.
There were several instances where the actual cost of overseas medical treatment was more than the quotation obtained from the hospital.

In some cases the variance in the price quoted and the actual cost was substantially high.

The variations in cost were paid by the Ministry.

According to the Ministry the quotations for the medical treatment were obtained based on referral reports from doctors.

Refer Table 21.25 for examples of overseas treatment with variations in costs.
Table 21.25: Examples of Overseas Medical Treatment with Variations in Cost Date Cheque Number 24/01/13 281525 28/05/13 288577 12/04/13 285666 19/03/13 284070 10/07/13 291441 10/07/13 291441 10/07/13 291441 Total Particulars Payment for cost of overseas medical treatment for Mr. Abdul Hassan who was sent to Balaji Hospital for eye treatment in India.

Payment for cost of overseas medical treatment for Mr. Pratinesh Singh who was sent to Balaji Hospital for eye treatment in India.
Payment for cost of overseas medical treatment for Ms. Salusalu Mua who was sent to Balaji Hospital for eye treatment in India.

Payment for cost of overseas medical treatment for Mr. Farish Khan who was sent to Batra Hospital in India for cancer treatment.

Payment for cost of overseas medical treatment for Mr. Jone Ikanivoka who was sent to Balaji Hospital tumor for Decompression Craniotomy in exision and radical mastoidectomy treatment.
Payment for cost of overseas medical treatment for Mr. Jacob Chand who was sent to Balaji Hospital for eye treatment in India.

Payment for cost of overseas medical treatment for Mr. Dinesh Chand who was sent to Balaji Hospital for eye treatment in India.
India Quoted Amount ($) 26,143.00 Actual Cost ($) 33,781.33 Over Expenditure ($) 7,638.33 25,439.00 49,246.70 23,807.70 9,231.00 38,654.50 29,423.50 10,673.00 31,158.76 20,485.76 12,000.00 14,209.59 2,209.59 12,018.00 14,801.66 2,783.66 10,000.00 10,953.23 953.23 105,504.00 192,805.77 87,301.77 According to the Senior Administrative Officer Mr. Vuta Bolaqace the additional costs were due to treatment and the seriousness of the illness, drugs, durations and admission of the patient.
However almost all the examples of actual costs higher than the quote were from Balaji Hospital in India.

 There was no independent verification of the final claim submitted by the overseas hospitals to justify the variations in cost.

This indicates lack of adequate controls in overseas medical treatment process that led the Ministry paying costs in excess of the quoted amounts.
In addition patients may not have been properly examined locally resulting in local referral doctors not highlighting the seriousness of the sickness.
Ministry of Health Section 21: Page 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendations The Ministry should:  ensure that patients are properly examined before sending them for overseas medical treatment; consider other hospitals in India for better pricing; and   properly scrutinise final claims by overseas hospitals before payment is made.

Management Comments Audit Recommendations is acknowledged.
There are many factors associated with referral patients to overseas countries for medical treatment.

In other words referring of patients for overseas countries will allow Ministry to pay more expenditure.

From the above reports here are some of the findings;  Estimate Quotation - An opinion or judgment on the medical reports submitted by local doctors to the referral hospital with determine the estimate cost of treatment.
The Estimate Quotation is always more or less whilst the actual costs/amount paid or incurred, as opposed to estimated/standard cost.

In contracting, actual costs amount includes direct treatment, direct materials, physical appeared of the patients and other direct charges.

 As referral processes takes 2-3 months the diseases such as Cancer do progress rapidly and by time of arrival more management procedure is instituted.

 MOH is trying its best to reduce referral processes in time.
 Referring doctors needs to be more detailed in preparing Medical Report in order to get right quotes.

  We have to send quotes overseas and whoever responds first than we will process.

If we had the specialist here we could not ascertain the cost.

Since we do not have the right person to quote.

We can’t wait till we get lower quotes it is an operation.

Because of the difficulties raised by the auditor, MOH has been trying from last 2 years and we have now sought out Cardiac/etc treatment to Fiji.
21.26 Island Hoppers The procurement limit delegated to Permanent Secretaries and Government Tender Board is amended as follows:  Permanent Secretary – $50,000 or less  Government Tender Board – $50,001 and more30.

The Ministry each year engages Northern Air Services, Island Hoppers and Fiji Navy to provide charter services to the Ministry.

The aircraft is chartered to cater for medical evacuation of patients from Maritime Island to CWM Hospital.
A sum of $683,600 was allocated in the 2013 budget and was later revised to $1,916,710 during the year.

Out of this the Ministry paid $1,867,178 in total for charter services in 2013.

Refer Table 21.26 for budget allocation for the last 5 years.
30 Finance Circular 9/2012 Section 2.1 Ministry of Health Section 21: Page 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Table 21.26: Budget Allocation for Charter of Aircraft 2009 – 2013 Details Original Budget Revised Budget Actual Expenditure Variance 2013 683,600 1,916,970 2012 600,000 750,000 1,867,178.09 1,046,999.59 (296,999.59) 49,791.91 2011 500,000 900,000 887,114 12,886 2010 500,000 500,000 885,794 (385,794) 2009 500,000 500,000 854,387 (354,387) The audit noted the following anomalies in the services provided by Island Hoppers.
:  There was no Standard Operating Procedure (SOP) for charter of aircraft.

The SOP will standardize the process and provide step-by-step instructions that enable anyone within the operation to perform the task in a consistent manner.

The current practice of hiring aircrafts is as shown in Figure 21.1.
Figure 21.1: Current Practice of Hiring Aircrafts •Notification from health centre •Consultant at CWM approves •Telephone Operator at CWMH calls and makes booking •Patient treated at CWM, invoice received, certified by receptionist •Payment processed Step 1 Step 2 Step 3 Step 4 Step 5 The telephone operator at CWM makes arrangements for the aircrafts without seeking approval from senior officers.

Hence the authority to charter aircraft is with telephone operator.
 Expenditure over $50,000 requires a GTB approval and a service contract agreement.

The Ministry has been paying more than $50,000 to each of the charter services providers.

Refer Table 21.27 for payments made to charter services providers in 2013.
Table 21.27: Charter Service Fee Paid – 2013 Charter Services Provider Island Hoppers Northern Air Services Total Total amount paid in 2013 ($) 1,113,503.26 226,230.50 1,339,733.76 However there was no contractual agreement in place between the Ministry and the charter services providers although each charter services providers were paid more than $50,000 annually.

 Island Hoppers was claiming fuel surcharge in addition to its normal charges for charter flights in 2013.
The Ministry paid total of $1,113,503.26 for fuel surcharge to Island Hoppers in 2013.

However there was no contract agreement or formal approval regarding the payment of fuel surcharge.

The Ministry did not provide any explanation for the payment of fuel surcharge.

Ministry of Health Section 21: Page 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________  All payment should be made on original invoices from the suppliers to avoid duplicate payments in future.
The Ministry made several payments on photocopied and faxed invoices instead of originals.

Such practices may result in double payments.

The Ministry did not demand original invoices from the suppliers.

 The Ministry paid 2012 expenses for charter services totalling $81,270 to Island Hoppers in 2013.

The Ministry did not have sufficient funds in 2012 to pay for these expenses.

Refer Table 21.28 for details.


Table 21.28: 2012 Expenses Paid In 2013 Date 23/11/12 26/11/12 03/10/12 03/10/12 03/10/12 Total Cheque Number 285821 285821 295047 295047 295047 Payee Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Amount ($) 8,316.01 7,938.00 13,986.00 18,522.00 32,508.00 81,270.01 Paying expenses for 2012 invoices in 2013 will affect the Ministry’s plan for 2013.
 The invoices from Island Hoppers and Northern Air were always certified as correct for payment by the telephone receptionists, Ms. Alisi Ravosai & Eliza Qereqeretabua at CWM Hospital.

The receptionists do not have authority to certify invoices for payment.

Refer Table 21.29 for details.
Table 21.29: Invoices Certified By Telephone Receptionist Date 19/09/13 30/05/13 20/05/13 19/04/13 14/04/13 09/06/13 21/05/13 21/05/13 20/05/13 23/11/12 26/11/12 05/03/13 27/02/13 08/04/13 02/04/13 19/06/13 29/06/13 07/06/13 24/06/13 25/06/13 28/06/13 07/07/13 Invoice Number 2383 2028 1844 1357 1245 2200 1862 1863 1845 00012006 00012007 0686 0609 1156 1022 2377 2577 2190 2494 2503 2567 2700 Payee Amount ($) Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers 13,230.00 20,412.00 10,206.00 18,900.00 18,900.00 13,230.00 6,804.00 9,072.00 10,206.00 8,316.01 7,938.00 11,340.00 18,900.00 16,254.00 18,144.00 33,688.50 14,364.00 14,364.00 9,072.00 13,608.00 19,278.00 16,632.00 Ministry of Health Section 21: Page 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Date 05/07/13 24/06/13 18/06/13 27/09/12 03/10/12 14/01/13 26/01/13 15/04/13 Total Invoice Number 2698 2493 2364 11362 11506 00003702 00004003 4604 Payee Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers Northern Air Northern Air Northern Air Amount ($) 14,364.00 18,900.00 19,656.00 18,522.00 13,986.00 22,500.00 20,000.00 2,150.00 452,936.51 The telephone receptionist makes arrangement for the charter of aircrafts and also certifies the invoices as correct.
Hence there is poor control over charter of aircraft and review of invoices for charter of aircrafts.

There is a high risk of collusion and fraud.
Recommendations The Ministry should:     enter into contract with the charter service providers who are paid more than $50,000 per annum; cease payment of fuel surcharge to Island Hoppers without proper approval; ensure all payments are made on original invoices; ensure that appropriate level of funding is requested from Ministry of Finance for charter flights to avoid using the following year’s funds to pay for the previous years expenses; and  accounting officers review and certify all invoices from charter services.
Management Comments Audit recommendation is acknowledged.

CWMH is working on formulating SOP and HQ has done the tender evaluation specifications to be submitted FPO.

MOH cannot wait for long process for GTB approval and needs to uplift the emergency of patients.

Fuel Surcharge applied by Aircraft as they are based in Nadi when they called for evacuations they start charging from departure and arrival We need to enter into contract then Island Hoppers to cease the fuel surcharge.
We will ensure that officers comply with Finance Regulations and we will continue to enforce that all payments are made on original invoices.

We cannot forecast the number of cases to evacuate but the ministry needs to put a proper justification to MOF on the numbers of referral cases to divisional Hospital with the cost involved so MOF understand our nature of work for Health Care and increase the funding.
We need to relook at all the processes from the initial arrangement to end results as services was provided in terms of emergency and invoices needs to be verified properly before effecting payments.

Ministry of Health Section 21: Page 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.27 Sponsorship for Zuriel’s Security Funds are to be utilised for the purpose it is allocated.
Promoting awareness for Non-Communicable Diseases (NCD) activities may include sponsorship for sports, providing information through banners, posters, brochures, and other related activities.

However the audit noted that the Ministry paid $41,400 to Zuriel’s Security Services for sponsoring the Uprising 7’s in its anticipation to promote awareness for NCD.

This payment did not in any way relate to promoting awareness for NCD’s.
The audit further noted that the payment was approved by the Permanent Secretary for Health.

The finding shows poor planning and review by appropriate senior officers before payments are made.

The payment to Zuriel’s Security Services is misuse of public funds.

Recommendations The Ministry must ensure that; funds are utilised for the intended purpose only; and   proper planning is done in order to achieve its goals on promoting NCD’s.
Management Comment Audit recommendations is acknowledged  As mentioned in the sponsorship agreement, Zuriel security was the company with the sole rights to organise and stage the 2013 Uprising 7’s.

Thus all financial correspondence and dealings were to be held with Zuriel as they were the main organisers.

 Zuriel security has also indicated in the agreement that they will provide certain benefits to Ministry of health in return for Ministry of Health’s sponsorship.
Schedule of sponsorship benefits attached for your perusal.

 This sponsorship was endorsed based on the agreement that there will be NCD advocacy through Media (TV, Radio, and Newspaper) and signage present throughout the duration of the tournament.

The organisers had also facilitated provision of space for NCD screening during the tournament.
21.28 Local Purchase Orders (LPO) Raised after Date of Invoice A Local Purchase Order (LPO) shall be issued when procuring any goods, services or works from an organization within Fiji, irrespective of whether a contract or agreement has been entered into or not.31 An LPO must be approved on line and signed by the authorizing officer (i.e.
the officer with the necessary procurement authority) before being issued to the supplier.32 The audit noted that on a number of occasions local purchase orders were raised by the Ministry after the goods and services were acquired and invoices were received from the suppliers of goods and services for payment.

Hence the LPO’s were raised by the Ministry only to fulfil the requirement of issuing purchase orders but it did not serve any purpose.

Refer Table 21.30 for examples.
31 Ministry of Health Finance Manual 2011 Section 2.5.1 32 Ministry of health Finance manual 2011 Section 2.5.9 Ministry of Health Section 21: Page 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Table 21.30: Examples of LPO’s Raised after Date of Invoice Invoice Date 31/01/13 31/12/12 05/06/13 31/05/13 31/05/13 30/01/13 31/12/12 10/01/13 28/12/12 16/05/13 16/05/13 16/05/13 30/06/13 06/05/13 13/05/13 22/07/13 04/01/13 27/02/13 27/02/13 26/11/12 27/02/13 27/02/13 20/12/12 31/12/12 24/12/12 17/12/12 07/01/13 31/12/12 24/12/12 17/12/12 07/01/13 Total Invoice Number LPO Date LPO Number Payee 06/02/13 08/01/13 07/06/13 10/06/13 10/06/13 05/02/13 18/01/13 18/01/13 09/01/13 17/05/13 17/05/13 17/05/13 02/07/13 13/05/13 14/05/13 23/07/13 07/01/13 01/03/13 01/03/13 01/03/13 01/03/13 01/03/13 09/01/13 11/01/13 11/01/13 11/01/13 11/01/13 11/01/13 11/01/13 11/01/13 11/01/13 PO81201002208 PO81201-002131 PO84201-004340 PO84201-004345 PO84201-004351 PO84201-003645 PO84201-003573 PO84201-003574 992522 PO81201-002523 PO81201-002522 PO81201-002519 PO22101-004552 PO84201-004201 PO84201-004208 PO84201-004538 PO85101-000858 PO84201-003820 PO84201-003823 PO84201-003828 PO84201-003822 PO84201-003819 PO83201-005447 PO83201-005493 PO83201-005493 PO83201-005493 PO83201-005493 PO83201-005492 PO83201-005492 PO83201-005492 PO83201-005492 BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd BOC Gases Fiji Ltd Fiji Television Ltd National Produce National Produce National Produce National Produce BOC Gases BOC Gases BOC Gases BOC Gases BOC Gases R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa R.B Patel Supermarket Labasa Amount ($) The Ministry did not comply with its own finance manual.
There is inadequate control over purchase of goods and services.

Recommendations The Ministry should:  ensure that local purchase orders are issued for purchase of goods and services to ensure no unauthorized purchases are made; and investigate the matter and take appropriate action against responsible officers.

 Management Comments Audit recommendation is acknowledged.
For Lautoka Hospital retrospective LPO were Issued for Rental of Oxygen Cylinders which were used monthly and rental of facility charges for hiring of their Oxygen tank on monthly basis.

Ministry of Health Section 21: Page 41 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Supply of Bulk Oxygen which is gauged once the oxygen tank is filled and supplied via piping towards the Operating Theatre.
This cannot be gauge prior to filling due to high consumption rate.

The tank reading before filling and after filing is taken and invoice is raised accordingly on the quantity filled and LPO issued.

Management will review the current practice after investigation and ensure that Local Purchase Order is issued prior to Purchasing of Bulk Oxygen, payment for container Rental and Cylinder Rentals.

Secondly we had faced shortage of fund in our ration vote by the end of third quarter.
This year we will make advance purchase during closure period of the PO i.e.

from November to Jan 15.

We have constantly reminded our officers to comply with Finance Regulations and we will continue to enforce that instruction to ensure issuance of Purchase Order is mandatory.

Purchase Orders are for ration for Labasa Hospital and was raised when the PO was closed.
Storeman has been advised to submit the consumption rate of ration which they started submitting on a monthly basis to forecast the quantity that we need to order to cover for the period.

Retrospective Purchase Orders for CWM Hospital was raised on a monthly basis for rental of BOC Gases.

For CWM hospital January payments will be paid in the following month.
By the end of the year there is an insufficient fund to the Oxygen allocations so management makes arrangement to BOC Gases as it is vital needs for the patient 21.29 2012 Invoices Paid in 2013 All invoices received in an accounting period should be paid in that accounting period.

This will ensure that funds budgeted for the next accounting period would be utilised for that accounting period.

The audit noted that 2012 expenses totalling $130,597.71 were paid in 2013.

Refer Table 21.31 for details.
Table 21.31: 2012 Expenses Paid in 2013 Date 23/11/12 26/11/12 03/10/12 03/10/12 03/10/12 12/02/13 24/01/13 11/04/13 11/04/13 11/04/13 11/04/13 11/04/13 18/02/13 18/02/13 18/02/13 18/02/13 18/02/13 18/02/13 18/02/13 Cheque Number 285821 285821 295047 295047 295047 282271 281525 285565 285565 285565 285565 285565 282570 282570 282570 282570 282570 282570 282570 Invoice Date 23/11/12 26/11/12 03/10/12 27/09/12 03/10/12 - 29/11/12 05/08/11 08/09/11 14/09/11 09/11/11 25/04/12 04/07/12 27/07/12 21/08/12 23/05/12 01/09/12 07/12/12 26/10/13 Invoice Number 12006 12007 11506 11362 11506/11362 - 1102242 5319 5325 5326 5348 5374 153017 153448 153843 152184 151785 155942 155374 Payee Island Hoppers Island Hoppers Island Hoppers Island Hoppers Island Hoppers SDMO* Suva Bank of South Pacific Sami’s Food Supplies Sami’s Food Supplies Sami’s Food Supplies Sami’s Food Supplies Sami’s Food Supplies Freshet International Freshet International Freshet International Freshet International Freshet International Freshet International Freshet International Amount ($) 8,316.01 7,938.00 13,986.00 18,522.00 32,508.00 2,981.31 33,781.32 711.99 703.28 659.16 1,898.90 270.37 1,162.20 1,408.00 868.80 1,208.50 1,096.52 1,272.65 1,304.70 Ministry of Health Section 21: Page 42 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Date Total Cheque Number Invoice Date Invoice Number Payee Amount ($) 130,597.71 *Senior Divisional Medical Officer The Ministry did not have sufficient funds available in 2012 to cater for the above expenses.
Paying 2012 invoices in 2013 will affect the Ministry’s plan for 2013.

Recommendation The Ministry must ensure that all expenses are cleared within the relevant accounting period.

Management Comment Audit Recommendation is acknowledged.

The payments were not processed due to inadequate funding for 2012, hence was processed in 2013.Vouchers were not processed in December 2013 and were returned to the respective divisions by HQ.
For Island Hoppers this was the Only Company in operation till late last year when another Company was formed and operated as Helicopters Fiji.

SOP is in place and a copy will be forwarded once received by Head Operator.
FIJI PHARMACUETICALS & BIOMEDICAL SERVICES 21.30 Variances between Epicor System and Actual Stock The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.33 Proper record keeping of drugs and consumables should be maintained by FPBS at all times.

The Epicor system is Inventory Management Software utilised by FPBS to record its movement of stock.
This includes entering of stock as it is received, deliveries made to Hospitals and Health Centres, orders placed by Hospitals and Health Centres, orders placed by FPBS to its suppliers and other stock related activities.

At any point in time, the physical stock should coincide with the system stock records.
Our review of annual stock take report for the year ending 31 December 2013 revealed variances between the balance as per the Epicor System and the balance of actual stock for numerous drugs and consumables.

The audit noted that the stock balance for several drugs and consumables were either overstated or understated in the Epicor System.

Refer to Appendix 21.2 for examples.


The stock take report also revealed that several drugs and consumables were not recorded in the Epicor System The quantity recorded in the Epicor System was understated compared to the actual balance in stock.

The FPBS did not update the system on a timely basis resulting in significant variances between the actual stock on hand and stock balance as per the Epicor System.

There is a high risk of misappropriation or theft of stores.
33 National Drug Policy 1994 section 7.1 Ministry of Health Section 21: Page 43 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendation The Ministry should investigate the variances noted and take appropriate remedial action.

Management Comments FPBS acknowledges the audit report on the variances between Epicor system and actual stock.

These variances have been highlighted in the Annual Stock Reports for the last 3 years.
The variance was resulted from as follows:  Current EPICOR module lack ability to capture warehouse operations such high stock movements within and out of the warehouse, multi stock locations, high operation frequency of stock movements, multi batch, expiry data of 3000 line products.

 3 database system being used – EPICOR, FMIS and manual (stock card) – therefore expectations are competing therefore cumbersome to manage with resources constraints.
 Current Epicor service agreement has not been renewed since 2009 therefore support/maintenance is not available.

 Therefore training has not been conducted since 2010.

From the Annual stock count report recommendation is the purchase of an appropriate application to suit the operation expectation.

EOI was called in 2013 and purchase of the software is being planned for 2015 with budget requested.
21.31 Value of Expired Stock The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.34 It is difficult to estimate the exact amount of drugs and consumable usage in the health system annually.

In addition in an attempt to fully eliminate expiring drugs cost to zero may put the Ministry in a risk of not having appropriate supply of drugs and consumable when needed.
The audit noted that a total of $369,327.89 worth of drugs and consumables expired as at 31/12/13.

Refer Table 21.32 for details of expired drugs for the last 3 years.
Table 21.32: Expired Drugs as at 31/12/13 Month January February March April May June July Expired Stock 2011 ($) 77,294.82 136,849.42 57,277.73 786,634.82 98,949.51 40,590.22 83.88 Expired Stock 2012 ($) 24,512.84 255,781.10 47,031.60 17,761.15 98,185.94 46,156.48 13,119.79 Expired Stock 2013 ($) 24,942.62 54,751.33 65,176.94 50,086.08 8,431.81 23,621.40 35,771.75 34 National Drug Policy 1994 section 7.1 Ministry of Health Section 21: Page 44 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Month August September October November December Total Expired Stock 2011 ($) 16,371.53 55,433.15 80,925.95 165,897.18 2,145.29 1,518,435.50 Expired Stock 2012 ($) 19,320.14 21,774.51 49,560.67 6,676.08 35,765.56 635,645.86 Expired Stock 2013 ($) 19,943.34 22,509.25 15,422.79 12,545.84 36,124.74 369,327.89 The audit also noted a decreasing trend in the value of the expired drugs over the past three years.
Although an encouraging 42% reduction was noted in the value of expired drugs in 2013 compared to 2012 the audit is of a view that this amount could be reduced further.

Recommendations The Ministry should:   review the reorder levels for all drugs and consumables to avoid losses due to drugs being expired; and strive to further reduce the expired drugs in future.

Management Comments FPBS acknowledge the finding on the Audit Report.
Eliminating of Expiration is impossible with indication from WHO standard of less than 5% of the total purchase budget accepted wastage level.

The wastage is unavoidable however controlling the wastage is the goal.

Wastage is the result of the following elements:  Purchased quantity is based on historical consumption from warehouse with a complex procurement processes.

 Disease forecasted based on the history changes or do not appear in the New Year.
 Changing of prescribing practices due to change of doctors or treatment based on new research.

 Poor, inadequate or inaccessible data from facilities on consumption contributes to weak forecasting at FPBS.

Therefore review of maximum level based on the recent consumption is conducted regularly.

In addition 6 months forecasted reported are generated monthly and action to redistributed high risk products are consulted with Hospitals.
New application will improve data consumption reporting to FPBS therefore improve forecasting 21.32 Unreasonable Expiry Dates The Supplier will not supply goods with unacceptably close “use by/expiry dates”.

An unacceptable use by/expiry date is one where in the normal course of events the Goods could not be used before the use-by date within the Purchaser’s usual stock holding period.

In general this period will be not less than 75% of its shelf life from the date of receipt at the Purchaser.
The expiry date will not take into account the time of delivery35.

The purchaser may accept shorter expiry dates at its discretion.

35 Tender CTN 121/2013 – Purchase of Essential Medicines Contract – Section 8.2 Ministry of Health Section 21: Page 45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Where goods are delivered with unacceptably close expiry dates the supplier will replace the goods at no cost to the purchaser.
Replacement goods will be provided urgently.

Where the supplier is unable to supply replacement goods within an acceptable time the purchaser may purchase an alternative good elsewhere.

Any reasonable additional costs incurred by the purchaser may be recoverable from the supplier from the Performance Bond36.

The audit noted that some of the drugs and consumables purchased in 2013 were to expire within 1 – 9 months’ time from the date of manufacture.

Refer to Appendix 21.3 for details.


The audit further noted that because most of these drugs and consumables were close to expiry dates when purchased the Ministry was not able to utilize all the stock within the short period of time.

Hence these drugs and consumables costing $368,927.94 were not dispatched to hospitals because they have expired.

Refer Table 21.33 for details of drugs expired.
Table 21.33: Drugs Expired within 1 – 9 Months of Purchasing Month Received Value Expired Value Percentage Expired January February March April May June July August September October November December Total The highest percentage (43%) of expiring drug and consumable stock was noted for the month of September, the same month these drugs and consumables were purchased.
This shows that drugs and consumable purchased in September had usable life of less than a month before they expired.

The findings show lack of consideration for expiry date when drugs and consumable were purchased, thus loss of Government funds.

Recommendation The Ministry should ensure that drugs and consumables have sufficient usable life when received.

Management Comments FPBS acknowledges the findings of the audit.
The Laboratory reagents are the major items expired within 9 months because of the short shelf life i.e.

12 months.

T is contributed more to the supply chain from manufacturer to Distributor agent then to FPBS, hence FPBS when received the supplies it has only 9 months of shelf life left.

As part of its improvement, FPBS is reviewing the order quantity regularly however the utilization is dependent very much on the demand from Hospitals.
36Tender CTN 121/2013 – Purchase of Essential Medicines Contract – Section 8.2 Ministry of Health Section 21: Page 46 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Further to the report finding that FPBS would like to clarify a statement-‘this shows that drugs and consumable purchased in September had usable life of less than a month before they expired.’ This statement was used to refer to the whole report assessment of the year 2013.

This is incorrect.
This is incorrect.

Our internal investigation may conclude that a wrong report was used or the interpretation of the correct report was inaccurate by the Auditor’s Office.

The August Expired value should report $1,668.16 was received in the same month and $1,283.20 [76%] expired also at the end of the month.

The rest of the Expired Values per month as reported were not received on the same month but from within the previous 9 months.
Annexure I shows the appropriate monthly expiry and the dates it was received at FPBS.

It needs to be clarified also that FPBS controls stocks for the whole Ministry and acts as the central distribution centre.

It does not dispatched items unnecessarily however according to the demand from health facilities.

Controlling stocks at FPBS ensure elimination of pilferage at hospital level however it expiration is expected and this is kept to the minimum.
Monitoring of the Expire Dates is continually conducted on a monthly basis.

21.33 Items Ordered Not Received The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.37 The FPBS ordered various clinical items in 2012 and 2013 totalling $8,911,839 from various overseas suppliers.

The items were supposed to be received by the FPBS in December 2013.
However these items were not received as at the date of audit.38 Refer to Appendix 21.4 for details.

The Technical Officer Stock Controller Mr. Mobin Khan in charge of the procurement was not able to provide any explanation for not receiving these items.

The finding indicates that FPBS does not follow up with the suppliers on the orders that were not fulfilled.

Recommendation The Ministry should follow up and investigate why the ordered items were not received on time and take appropriate action.
Management Comments The management acknowledges the auditors findings.

FPBS would like to be given more time to clarify the reports on Appendix 3 as the data appears to be not consistent with the main source data.

Generally orders are being supplied In reference to Appendix 3 -Date of PO between 23/02/2012 – 29/04/2013 but only 95 to 99% are received and paid only however it is still appearing open order in the system.

This is due to packaging standards from manufacturer.
Balance quantities are not re-ordered as Purchasing Unit and LMU small and would be more costly.

37 National Drug Policy 1994 Section 7.1 3819/03/13 Ministry of Health Section 21: Page 47 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ FPBS will need to review the ordered quantity to reflect the standard packaging from manufacturer.

These orders have been closed too in the system.


Another element is the advance orders placed from second half of the previous years for e.g.

July to December 2013 intending to be received in 2014.

This is the purchasing cycle followed because of the 4 – 6 months lead time from PO date to arrival at FPBS.

Currently FPBS is progressing in acquiring a reporting tool to monitor to strengthen reporting of inventory activities which will be funded by the Grant Management Unit of the Global Fund.
Further OAG comments This was the data provided by FPBS to audit.

21.34 Nil Stock The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.39 The Ministry’s EPICOR system indicates when a particular drug or consumables reaches its minimal level.

Hence, the stock controller has to ensure that new orders are placed immediately to ensure adequate supply of drugs and consumables stocks are available at all times.
Scrutiny of the Epicor System on 21/1/14 revealed that several drugs and consumables were out of stock at FPBS.

Refer to Appendix 21.5 for details.

The audit noted that while several of these drugs and consumables have been ordered by FPBS on various dates from 12/2/12 to 30/12/13 most of them were not received as at 21/1/14.

The finding shows poor supply of drugs and consumables by the suppliers.

Non availability of essential pharmaceutical supplies may place patients’ life and health at risk.
Recommendations The Ministry should:   ensure that drugs and consumables are ordered at minimum reorder point to avoid ‘run outs’; and investigate why the drugs and consumables are not received on time from the suppliers.

Management Comments FPBS acknowledges the findings and recommendation of the Audit Report.
The nil stock report for items where PO has been raised from various dates from 12/2/12 to 30/12/13 on Appendix 21.5 needs more clarification on the source of data as it stands to contradict item 8.1.7 on the issue of Ibuprofen 400mg Tablets availability.
FPBS acknowledged the nil stock report for some products with no POs because of the following reasons:   they are obsolete items from the system such as Whitfield lotion/ointment, multivitamins, they are available at facility level and they do not need to be available at FPBS such as propylene glycol and podophyllin, anti-cancer drugs, nasal prong 39 National Drug Policy 1994 section 7.1 Ministry of Health Section 21: Page 48 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________   some products are only purchased once and on demand it will be ordered again based on demand oxycodone some products have been replaced with the new product line such as Isoniazid tablets FPBS will be improving reporting of stock status to eliminate stocks that do not need to be monitored regularly by end of July through the support of Grant Management Unit.
21.35 Stock in Excess of Predetermined Maximum level The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.40 Proper stock management ensures that stock level does not exceed maximum stock level.

FPBS has predetermined maximum stock levels for all drugs and consumables.

Review of the Epicor System as at 21/01/14 revealed that several drugs and consumables were available in excess of the required maximum stock level.
The audit noted that several of these drugs and consumables were significantly overstocked when compared to its maximum stock levels.

For example the predetermined maximum stock level for Ibuprofen tablets 400mg was 4,000,000 units only at any point in time.

However the stock on hand as at 21/01/14 was 5,381,000 units, which were 1,381,000 units or 35% more than the predetermined maximum stock level.

Similarly the predetermined maximum stock level for Enalapril tablets 5mg was 4,000,000 units only.
However the stock on hand as at 21/01/14 was 5,590,664 units which was 1,590,664 units or 40% more than the predetermined maximum stock level.

The audit further noted that the total value of drugs and consumables in excess of the predetermined maximum stock levels was $7,006,293.59 as at 31/12/13.

Refer to Appendix 21.6 for details.

It is also highly likely that significant quantity of the excess drugs and consumables may not be used before its expiry date thus would expire while in stock.
The above irregularities indicate poor estimates on the usage and reordering of drugs by FPBS which led to the accumulation of excessive drugs and consumable stocks.

As a result significant amount of public funds are tied up with excessive stocks and result in loss of public funds if these drugs and consumable are not fully utilised and expires.
Recommendations The Ministry should:   ensure that FPBS does not hold drugs and consumables stock in excess of the predetermined maximum stock levels; and investigate over stocking of drugs and consumables and take appropriate action against those responsible for over purchasing.

Management Comments Management acknowledges the report on the excess stock.
40 National Drug Policy 1994 section 7.1 Ministry of Health Section 21: Page 49 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ FPBS needs to have more clarification on Appendix 21.6 source of data as it stands to contradict item 8.1.6 on the issue of Ibuprofen 400mg Tablets being out of stock.

The products read overstocked as per report because of the impact of the revision of the max and min levels [reduced levels] in June 2013.
Purchases for 2013 were carried out before June 2013 and quantities were based on old contract quantities which is higher than new levels.

Enalapril order was raised in May 2013 and arrived around October of around 7,600,000 tablets.

Further to this, the average monthly consumption of Enalapril is 932,000 based on 3 year average calculation and with this the month of stock from January status for this product is 5.3 months.
A sudden change of use by hospitals for example new product used would put a risk to the current stock however proper planning of winding off current stock and introduction of new stock ensures reduction of wastage.

This is currently being organised for the Gemini Sets where a new machine is being introduced with a new consumable but introduction has been phased in.

Thromborel was an over purchased and investigation will be conducted and be completed by end of June 2014.
21.36 Stock below Predetermined Minimum level The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.41 Review of the Epicor System as at 21/01/14 revealed that several drugs and consumables on hand were below the predetermined minimum stock levels.

The audit also noted that some of the drugs and consumables were out of stock.
The FPBS placed orders for these drugs and consumables on 27/02/13 to replenish the low level stock items.

These items were expected to arrive in December 2013 or January 2014.

However as at the date of audit42 the items were not received by FPBS.

The audit further noted that majority of the drugs and consumables were not reordered by FPBS as at the date of audit43 even though they were out of stock.

Refer to Appendix 21.7 for details.


The Ministry did not properly monitor the stock levels and reorder drugs and consumables on time.

This may lead to drugs and consumables shortage in hospitals and health centres if supplies are not reordered and received on time.
Recommendations The Ministry should:   investigate why drugs and consumables below the predetermined minimum stock level or out of stock were not reordered; and take appropriate action to ensure appropriate level of drugs and consumables are available at all times.

Management Comment Management acknowledges the report finding of the auditor.
41 National Drug Policy 1994 section 7.1 42 16/01/14 43 21/01/13 Ministry of Health Section 21: Page 50 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The products that were below BMSL and do not have stocks because: they are one off purchase items, obsolete stocks, stocks are available at the hospital and slow moving items where stocks are still available at the hospitals.
Delays of supplies from overseas are always an expected event that FPBS is always challenged with.

Delays could be caused by manufacturing problems and delays in the transiting due to unseen events.

These items do have substituted products that can be used instead or other sources such as purchases through quotation is organised.

FPBS currently reviewing its reporting system to strategically monitor products that are relevant to the services.

This report would be ready by end of July.


Recently FPBS has established the position of contract management to monitor suppliers ETA.

21.37 Under utilization of Laundry Machine Fixed assets acquired by an entity are to be utilized to their full potential and obtain value for money, thus realize future economic benefit.

The Ministry purchased laundry equipments at a total cost of $2.7m in 2009 from ACLEPL in Australia for various hospitals around Fiji.
The units were installed as and when the sites were ready.

However 1unit allocated for the Labasa Hospital was stored at Freight Services Warehouse in Navutu, Lautoka from September 2009 to May 2012.

The audit noted the following discrepancies:  The site at the Labasa Hospital was not ready for installation when the laundry equipment was received.

The equipment was kept at the Freight Services Warehouse in Lautoka for 32 months until it was taken to Labasa on 12/5/12 for installation.
The Ministry paid a total of $132,351.25 to Freight Services Warehouse for storage charges.

It could have saved $132,351.25 of public fund if the equipment was stored at one of the Ministry’s own premises.

 Upon installation of the equipment in May 2012 and during testing phase the Ministry noted that the equipment’s ironer was not working and was unserviceable.

The ironer was damaged during January 2012 flood during storage at Freight Services Warehouse in Lautoka.
In November 2013 the Government Tender Board gave approval for the purchase of the new ironer from GIRBAU Australia Pty Ltd for F$234,786.60.

The Ministry is yet to receive the part as at the time 44 of audit.

 The Ministry was not able to provide the actual cost of the laundry equipment and its installation (including cost of site preparation, electrical works and labour cost).

Value for money has not been obtained from the purchase of the laundry equipment.
44 January 2014 Ministry of Health Section 21: Page 51 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendations The Ministry should:   ensure that installation of the equipment is followed up to expedite the commissioning of the equipment; take appropriate disciplinary action against responsible officers and surcharged where deemed necessary for wastage of public funds; and  provide cost of laundry equipment and its installation.
Management Comments FPBS acknowledges the findings of the Audit.

The Labasa Laundry Machine was finally commission in April 2014 by the Minister of Health.

The delays of the installation were due to few factors:  Single team responsible for installations around the country for 7 Subdivisional hospitals laundries and 2 Divisional hospitals.

Infrastructure readiness was delayed.


  The power supply was needed to be adjusted to meet the new demand  The flooding that caused the damage to the ironer delays the installation further which was not predicted.

 In all, such major project is the first for Health to carry out without the assistance of PWD.
Health is content with the completion of the installation in support of the Cabinet approval of the purchases to improve greatly the laundry services in the hospital which has been marred by bad reports such as poor washing qualities, laundry chemical issues, frequent breakdowns, cost to maintain was increasing and all resulted in poor services rendered to the patients.

The total cost of the equipment and installation will be provided by the end of June 2014.
21.38 Local Purchase Orders not Monitored 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 Administration Manager who shall arrange a claim against the supplier or carrier.45 The Government Tender Board via Tender number CTN 155/2011awarded contract to Medica Pacifica South Pacific Limited for the supply of Laboratory Consumables & Reagents for a period of 2 years effective from 22/06/11.
The audit noted that the Ministry raised a single LPO number PO85101 000864 on 16/01/13 for supply of various reagents and consumables amounting to $1,051,263.52 from Medica Pacifica South Pacific Ltd.

The Ministry continued to receive medical supplies on the same order for whole of 2013 on piece meal basis as and when the supplies were requested by the Ministry.
The audit further noted that the Ministry did not have any monitoring system in place to ensure that the supplier had actually supplied the quantity of medical supplies ordered and up to the amount stated in the LPO.
45 Finance Manual 2011, 2.5.17 Ministry of Health Section 21: Page 52 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The findings show negligence of Procurement Officers to raise single order for $1,051,263.52 for supply of reagents and consumables on piece meal basis and not monitoring the medical supplies supplied.

The vendor may not supply all the items requested but invoice the Ministry for payment.
Recommendation The Ministry should ensure that LPO’s are raised for exact amount of consumables required at a particular time.

Management Comments The management acknowledges the auditor’s report.

The Local Purchase Order MD85101-000864 was raised for various reagents & consumables awarded in the tender Medica Pacifica.

The product and quantity ordered was for 6 months’ supply for various items at various point of time.
This is efficient way to manage constraint resources such as time, papers and HR to continue to print 12 different orders at 12 different times.

The delivery lead time for these consumables & reagents was 3-4 months but various reagents were made on monthly basis considering the shorter shelf life for some of the reagents.

FPBS has a monitoring system in place where the system captures the items received and quantity assigned to be received per split time interval.
Also payment is only made once product is received.

COLONIAL WAR MEMORIAL HOSPITAL 21.39 Poor Storage of Dry Goods Storage of inventories shall be the responsibility of the storekeepers.

The storekeeper must ensure that stocks are handled with care and well stored so as to reduce the risk of damage.46 Inspection of the kitchen storeroom47 revealed that dry goods were not properly stored in the storage room.

The audit noted that sack of tea leaves was open and left on the floor.
Refer to Figure 21.2 below: Figure 21.2: Open Sack of Tea Leaves 46 Ministry of Health Finance Manual 2011, Section 8.2.1 (IV) 47 29/01/14 Ministry of Health Section 21: Page 53 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The finding shows that the Store Officers were not performing their duties properly.

The bag of tea leaves may perish before its expiry date or may get infested with insects since it is not kept in an air tight container.
As a result, this would lead to waste of public funds.

Recommendation The Ministry should ensure that dry goods are properly stored.

Management Comment No comment received from the Ministry.

21.40 Blocked Drainage The Ministry must continually upgrade its facilities thorough maintenance and repairs so that patients have access to quality, safe and reliable health care facility.
The audit noted that due to poor plumbing works at the Kitchen the waste water pipes was leaking resulting in blocked drains outside the Kitchen.

The drain was filled with waste water giving bad odour.

Refer to Figures 21.3 and 21.4 below: Figure 21.3: Blocked drains due to poor drainage from Kitchen Figure 21.4: Blocked Drains The finding shows poor upkeeping of the Hospital by the Hospital Management.

It also sets a bad example for the Ministry as patients use the walkway at this area every day.
Recommendation The Ministry should ensure that regular maintenance works is carried out at all Hospitals.

Management Comment No comment received from the Ministry.

Ministry of Health Section 21: Page 54 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.41 Improper Facilities at CWMH Kitchen The CWM Hospital’s kitchen is one of the major arms of the Ministry of Health, known for the provision of healthy diet to its patients from various wards.
The Ministry should ensure that the work environment is free from harm and is properly maintained.

The audit visited the CWM Hospital’s kitchen on 29/01/14 and noted that several windows had missing louver blades whilst some had broken louver blades attached to the frames and were yet to be replaced.

In addition, the toilets at the Kitchen were not properly cleaned and looked unhygienic.

Refer to Figures 21.5 to 21.8 below for illustration.
Figure 21.5: Broken glass at the kitchen entry Figure 21.6: Missing louvers at the kitchen walkway Figure 21.7: Rusty window frame at the kitchen walk way Figure 21.8: Male kitchen toilet and tiles was found dirty and rusty The findings show that Hospital Kitchen was not properly maintained by the Ministry.

Recommendation The Ministry must take appropriate actions to ensure that the kitchen facilities are properly maintained.

Management Comment No comments provided.


Ministry of Health Section 21: Page 55 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.42 Store Room The CWM Store Room is used to store all supplies ranging from various hospital forms to dry goods.

The audit noted that the store room was scattered with items that were written off in 2012.

There were boxes of batteries, unused urns and other unnecessary items which were no longer to be used by Ministry.
In addition boxes of papers were lying on the floor and there were inadequate spaces on the shelves to stack them properly.

Refer to Figures 21.9 and 21.10 below for illustration.

Figure 21.9: Items waiting to be disposed Figure 21.10: Unstacked boxes of paper There is lack of initiative by the Stores Officer, Ms. Mereani Laukoko, to arrange items in a proper and presentable manner.
Furthermore the Manager Administration and Finance, Mr. Bashir Ali failed to supervise and coordinate the work of the Stores Officer to ensure office space is properly utilised and maintained.

Recommendation The Ministry should ensure that the store room is properly maintained and all written off items are disposed appropriately.

Management Comment No comment received from the Ministry.
21.43 Undisposed Items at CWM Hospital The Permanent Secretary for Health, Medical Superintendent and Divisional Medical Officers has authority to approve the disposal of any “agency asset” using approved disposal methods in Finance Instruction 51-(1).48 Where the written approval of the Ministry of Finance has been obtained for the disposal of any state assets, the Director Administration and Finance, Medical Superintendent and Divisional Medical Officers (NHS, CEHS & WHS) have authority to approve the disposal of any “state asset”.49 It is the responsibility of the Manager Administration and Finance to ensure that these written off items are properly disposed in a timely manner.
48 Ministry of Health Finance Manual 2011, Section 11.5.1 49 Ministry of Health Finance Manual 2011, Section 11.5.2 Ministry of Health Section 21: Page 56 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The audit noted that there were several items lying in the walk way of the Lanchester Ward and various other places at the CWM Hospital.

The undisposed items unnecessarily occupied a lot of hospital space and also create a bad image for the Hospital.
Refer to Figures 21.11 to 21.22 for illustration.

The items are unnecessarily occupying hospital space and pose risk to the hospital staffs, patients and members of the public.

Recommendation The Ministry should ensure that immediate action is taken to dispose the boarded items following proper procedures.

Management Comments No comment received from the Ministry.
21.44 IT Office Sufficient controls relating to physical, user access and handling of IT needs to be put in place for the up keep and safeguarding of equipment to avoid theft and misuse.

The audit noted the following anomalies during a physical inspection of the IT room on 28/01/14.

 The IT room at CWM Hospital was left open and any employee could enter the IT room without authorisation.

There was no security or control for entry and exit to the IT room.
Ministry of Health Section 21: Page 57 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ The Ministry failed to implement adequate security measures to restrict entry into and out of IT room to safeguard IT equipment and the data.

This could result in theft of IT equipment and data.

 Unused monitors, CPU and printers were scattered in the IT room.

Some were lying on the floor while others on the shelves.
As a result the audit could not establish whether the items were serviceable, awaiting repairs or written off.

Poor storage and handling could result in further deterioration of IT equipment.

Refer to Figures 21.23 and 21.24 below for illustration.

Figure 21.23: Discarded Printer & Monitor Figure 21.24: Unused Monitors and Printers The findings show poor control over IT equipment and data at CWM Hospital.
Ministry of Health Section 21: Page 58 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendation The Ministry should implement adequate control measures to safeguard IT equipment and data from theft.

Management Comment No comment received from the Ministry.
WESTERN DIVISION 21.45 Non Payment of Bond The PSC at its meeting on 28 November 2013 approved that all civil servants who are occupying government quarters and government rented premises are to pay a bond effective from 01/01/14.

The bond shall be payable as follows: (i).

(ii).

SS01 level and above - $500 SS02 level and below, including GWEs - $30050 Review of government quarters records revealed that a number of tenants occupying quarters had not paid their bonds.
There was no evidence of action taken by the Ministry to collect the bond amount from the tenants.

Refer to Appendices 4 to 6 for examples of tenants occupying quarters without paying their bond.

Due to laxity by management the tenants did not pay their bond but continued to occupy the quarters.

In addition, if the tenants vacate the quarters the Ministry would not be able to recover the cost of damages or unpaid bills from the tenants.
Recommendations The Ministry should:    ensure that all tenants pay the required amount of bond before occupying the quarters; ensure that all outstanding bonds are collected from the tenants; and take appropriate action against responsible officers.

Management Comment No comment received from management.
21.46 Nadi Hospital 21.46.1 Undisposed Items at Nadi Hospital The Permanent Secretary for Health, Medical Superintendent and Divisional Medical Officers has the authority to approve the disposal of any “agency asset” using approved disposal methods in Finance Instruction.

Where the written approval of the Ministry of Finance has been obtained for the disposal 50 PSC Circular No.
84/2013 dated 23/12/13 Ministry of Health Section 21: Page 59 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ of any state assets, the Deputy Secretary Administration and Finance, Medical Superintendent and Divisional Medical Officers (National Health Services, Central Eastern Health Services, Western Health Services) have authority to approve the disposal of any “state asset” using an approved disposal method in Finance Instruction.51 The audit noted that several hospital items that were boarded were left in the walk way and at the entrance of the Hospital.
These boarded items had not been disposed by the hospital.

Refer to Figures 21.25 to 21.28 for illustration.

Figure 21.25: Boarded items not disposed Figure 21.26: Boarded bed lying in the walk way Figure 21.27: Boarded items in front of the door way Figure 21.28: Boarded items near the reception area Due to laxity by hospital management the boarded items were yet to be disposed.

These items are unnecessarily occupying hospital space and pose risk to the staff, patients and and members of the public.
Recommendation The Ministry should ensure that boarded items are immediately disposed.

51 Ministry of Health Finance Manual 2011 Section 11 (5) Ministry of Health Section 21: Page 60 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Management Comment No comment received from the Ministry.
21.46.2 Expired Drugs and Medicines not Disposed The Ministry of Health will strive to improve and standardize inventory control procedures at all levels of the public drug supply system.52 It is vital that all expired drugs is boarded and removed in a timely manner to avoid negligence and vicarious liability.
The Board of Survey Officers shall physically identify each item, note its working condition and verify its existence to the fixed assets register and expendable items register.53 The Fiji Pharmaceutical and Biomedical Supplies (FPBS) purchases and distributes drugs to all the hospitals and health centres in Fiji.

The audit noted that the Hospital pharmacy was still holding on with the stock of expired drugs.
The expired drugs included drugs donated by donor agencies and also drugs purchased from government funds dating back to 2011.

Refer to Figures 21.29 and 21.30 for illustration.

Figure 21.29: Expired drugs Figure 21.30: Undisposed drugs The findings show poor drugs management and disposal of expired drugs by hospital management.

There is also a risk that the patients may be supplied with the expired drugs.
Recommendations The Ministry should:   immediately remove the expired drugs from the hospital pharmacy; and review the reorder levels for all drugs and consumables to avoid losses due to expired drugs.

Management Comment No comment received from the Ministry.
52 National Drug Policy 1994 section 7.1 53 Ministry of Health Finance Manual 11.4.1 Ministry of Health Section 21: Page 61 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.46.3 Storage and Maintenance of Equipment and Consumables It is vital for Hospital Management to ensure that the medical equipment and machines and consumables are kept safely in rooms that are not only secured but at the same time limit unauthorized access.
The audit noted the following anomalies:  A portable x-ray machine that was in operational condition was kept at the walkway causing disruptions to the patients and the staff of the hospital.

The x-ray machine was kept in the walkway because the hospital did not have a proper space for the machine to be securely kept after use.

Refer to Figures 21.31 and 21.32 for illustration.

There is a risk of the x-ray machine being damaged and or stolen as it is not secured.
Figure 21.31: X- Ray Machine in the walk way Figure 21.32: X- Ray Machine partly exposed  The Ministry partially closed the old hospital building due to its deteriorated and inhabitable condition.

In addition the building had water leakages which caused electrical problems.

Despite these problems the hospital’s supply of consumables namely, hand gloves, cotton wool, syringes, cotton wax, mouth caps, glosses and many other consumables were stored in the old hospital building.
Refer to Figures 21.33 and 21.34 for illustration.

Figure 21.33: Consumables stored in the Old Hospital building Figure 21.34: Consumables not properly stacked Ministry of Health Section 21: Page 62 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ There is a high risk of fire to the old building due to electrical faults and loss to government property.
 The Nadi Hospital maintains a generator to provide power to the Hospital in case of a power shut down in order to avoid disruptions to services.

The Hospital was required to maintain 200 litres of diesel to operate the generator.

However, the hospital stored diesel and kerosene with other items such as electrical appliances, timber, wheel barrows, empty boxes, in the generator room.

There is a high risk of fire due to flammable liquid stored in the generator room.
Refer to Figures 21.35 to 21.38 for illustration.

Figure 21.35: Cleaning materials kept in the Generator House Figure 21.36: Construction materials maintained in the Generator House Figure 21.37: Benzene, Diesel kept in generator House Figure 21.38: The generator room houses other items Due to unavailability of a proper store room the flammable liquids were stored in the generator room.

This may result in huge loss in case of vandalism, theft, or fire.
Recommendations The Ministry should ensure that:  Bio medical equipment are safely maintained in locked rooms accessed only by authorised personnel; and  proper storage facility is provided to store flammable liquids separately from the generator room to avoid risks.

Ministry of Health Section 21: Page 63 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Management Comment No comment received from the Ministry.
21.47 Lautoka Hospital 21.47.1 Installation of New Elevators On 15/08/12, the Government Tender Board (GTB) approved the tender for the supply, installation and commissioning of two new elevators at Lautoka Hospital to OTIS Elevators of New Zealand for NZ$629,337.50 (FJ$898,925.15 VIP).

The Cabinet also endorsed 10% of the total cost or FJD$89,892.52 to be used by Public Works Departments (PWD) Mechanical Section to carry out any associated works relating to the installation of new elevator.
A total of F$1,000,000 was provided in the Ministry’s 2013 budget estimates to cater for the new elevators.

The following anomalies were noted in the disbursement of funds.

21.47.2 Engaging PWD for Associated Works The Ministry engaged PWD for $89,982.52 to carry out associated works for the installation of two new elevators at Lautoka Hospital in 2012.

The following anomalies were noted.

 There was no contract agreement signed between the Ministry and PWD for the associated works to be carried out.
In addition the Ministry did not provide PWD the list of specific tasks to be carried out as part of the associated works.

 There was no commencement and completion timeline and scope of work identified and communicated to Ministry of Works Mechanical section by way of a formal agreement.

 The Ministry did not have any arrangement with PWD for the disposal of the old elevators and its accessories.

The Ministry did not follow proper procedures to engage PWD for associated works.
Recommendation The Ministry should investigate the anomalies and take appropriate action.

Management Comment No comment received from the Ministry.

21.47.3 Delay in Dismantling the Old Elevators The Ministry on 31/10/12 paid in advance a sum of $40,860 to PWD for dismantling the old lifts at Lautoka Hospital.

The audit noted that the dismantling work had not been done as at the date of audit on 14/05/14.
Ministry of Health Section 21: Page 64 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendations The Ministry should:  follow up with the Ministry of Works Mechanical section on the status of works to be undertaken and ensure that all assigned tasks are completed; and  have a an agreement signed with Ministry of Works Mechanical section for all works assigned in future.

Management Comment No comment received from the Ministry.
21.47.4 Delay in the Installation of New Elevators The Government Tender Board (GTB) approved the awarding of contract for the supply and installation of two elevators at Lautoka Hospital on 15/08/12.

The contract between OTIS Elevators and Fiji Government was signed on 16/10/12.

The first payment of F$369,085 was made to the contracted supplier, OTIS Elevators on 10/12/12.
The audit noted that there were considerable delays of four months from the date of GTB approval to the signing of contract and the date the first payment was made to the contractor.

The project was not completed in 2012 because of the delays and the unused funds were returned to the Ministry of Finance.

The Ministry was again allocated $1,000,000 in its 2013 budget to complete the project.

The project was to be completed within 48 weeks with effect from 03/10/12.
As at date of audit on 14/05/14, the new elevators were yet to be installed.

The delay was from the Ministry of Works for not dismantling the old elevators and breaking the concrete wall as illustrated in Figure 21.39 below: Figure 21.39- Dotted line around lift showing wall to be broken by Ministry of Works Mechanical The delays indicate the lack of coordination and consultation between the Ministry of Health and the Contractors in the implementation of the project.
Ministry of Health Section 21: Page 65 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendation The Ministry should ensure that approved capital projects are implemented without delays.

Management Comment No comment received from the Ministry.

21.48 Kamikamica Park Health Centre Contract No.

WSC190/2012 was awarded to Cope Constructions Limited in 2012 for construction of Kamikamica Park Health Centre in Lautoka.
The total value of the project as per the contract was $194,700.00 (VIP) including 10% contingency sum $19,470.

The contract was signed between the Ministry of Health and Cope Construction Limited on 11/10/12 for works to be carried out in 12 weeks.

The Project commenced on 12/10/2012 and was due to be completed on 03/01/13.

Our review of the project revealed the following anomalies:  The project which was to be completed on 03/01/13 was finally completed on 11/07/13; 6 months after completion date.
 The Kamikamica Park Health Centre is the only health centre in Lautoka.

While the Centre provides service to the whole of Lautoka, it does not have essential equipment like emergency trolleys, incubators, and wheel chairs.

 5 fire extinguishers held at the Centre are empty; staffs also do not know how to use them.

Refer to Figures 21.40 to 21.42 for illustration of empty fire extinguishers.
Figure 21.40: Fire Extinguisher above patient's bed Figure 21.41: Fire Extinguisher next to the sink Figure 21.42: Fire Extinguisher next to the door  The sewerage system also overflows frequently posing health hazard to the users; refer to Figures 21.43 and 21.44 for illustration.
Ministry of Health Section 21: Page 66 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Figure 21.43: Sewerage leaks Figure 21.44: Sewerage leaks  The Centre does not have a store room as a result items are stored in the bathroom.

Refer to Figure 19.44 for illustration.

In addition the Centre is not provided with sufficient cabinets as a result files are stored in boxes.

Refer to Figure 21.45 and 21.46 for illustration.


Figure 21.45: Items stored in bathroom Figure 21.46: No proper cabinets to store files  When it rains, the rain water flows into the health centre due to low lying floor which is next to a drain along the roadside.

According to Dr.

Mere Sigawale the management of the Lautoka Hospital has been informed in writing to look at these problems however no action has been taken.
Recommendations The Ministry should ensure that:  Kamikamica Park Health Centre is fully equipped in order to provide quality health services to the people of Lautoka;  Empty fire extinguishers are replaced and staffs of the health centre are trained to use the fire extinguisher; the sewerage line at Kamikamica Park Health Centre is repaired;   proper storage facilities are provided for safe custody of stores items and records; and  proper drainage is provided around the Health Centre to avoid flooding of the Centre.
Management Comment No comment received from the Ministry.

Ministry of Health Section 21: Page 67 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ 21.49 Anomalies in Motor Vehicle Each driver must keep daily running sheets to record details of each run undertaken in any of the agency’s vehicles.

The running sheet shall document: i. ii.

iii.

iv.
iii.

iv.

v. vehicle registration number date and mileage at the start of the day runs during the day and the reasons for each run arrival and departure times including mileage during each separate run fuel details if vehicle is filled during the day54.

The Ministry allocated 15 vehicles to Lautoka hospital in the year 2013 and the vehicle number was increased to 17 in 2014.
Out of the 17 government vehicles allocated to Lautoka hospital, 14 were serviceable, 2 were written off and 1 was damaged in an accident and is in the process of being boarded.

The transport officer in 2013, Mr Sevanaia Kaunisela was responsible for maintaining the government vehicle log book together other vehicle records.

The audit noted that out of the 17 vehicles, the hospital did not maintain the running sheets for 16 of the vehicles during 2013.

Refer Table 21.34 for details.
Table 21.34: Missing Running Sheets Registration Number GN 177 GN 456 GN 448 GN 946 GN 044 GN 063 GN 959 GN 926 GP 251 FS 438 GM 961 GM 967 GN 456 GN 820 GN 970 GN 044 Missing Running Sheet Date 01/01/13 – 31/08/13 01/04/13 – 30/06/13 & 01/09/13 – 31/12/13 01/01/13 – 31/08/13 01/01/13 – 31/10/13 & 18/12/13 – 30/12/13 01/04/13 – 31/10/13 & 03/12/13 – 31/12/13 01/01/13 – 31/08/13 & 01/11/13 – 28/11/13 01/01/13 – 31/06/13 01/01/13 – 31/06/13 01/01/13 – 31/12/13 01/01/13 – 22/11/13 01/01/13 – 31/08/13 01/01/13 – 31/08/13 & 06/12/13 – 28/12/13 01/01/13 – 31/03/13, 01/07/13 – 31/08/13 & 25/12/13 – 30/12/13 01/01/13 – 31/10/13 & 01/12/13 – 25/12/13 01/01/13 – 31/01/13 & 01/07/13 – 31/08/13 & 07/12/13 – 24/12/13 03/12/13 – 31/12/13 Missing Running Sheets In Days 243 213 243 317 243 271 181 181 365 326 243 265 158 329 111 29 The duties of the Transport Officer were assigned to Ms. Losalini Malotolu from February 2014.
However, handing over of the duties and vehicle records were not done by the former Transport Officer Mr. Sevanaia Kaunisela.

The above anomalies indicate poor control and management of government vehicles.

There is high risk of misuse and mismanagement of government vehicles.
54 Ministry of Health Finance Manual 2011, Section 12.3.4 Ministry of Health Section 21: Page 68 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Recommendations The Ministry should:  discipline the Drivers and the Transport Officer for not maintaining vehicle running sheets; ensure that vehicle records are properly maintained; and ensure proper handing over of duties and vehicle records to the new Transport Officer.
  Management Comment No comment received from the Ministry.
Ministry of Health Section 21: Page 69 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ APPENDICES Appendix 21.1: Short Supply of Rations Date LPO Number Product Supplier Quantity Ordered 15/04/13 15/04/13 10/05/13 26/07/13 26/07/13 26/07/13 05/07/13 12/07/13 11/07/13 11/07/13 02/08/13 02/08/13 02/08/13 19/07/13 19/07/13 02/08/13 02/08/13 31/07/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 12/09/13 12/09/13 12/09/13 12/09/13 12/09/13 12/09/13 12/09/13 12/09/13 Celery Bananas PO84201-004060 PO84201-004060 Watermelon PO84201-004196 PO083201-006777 Bele PO083201-006778 Bele PO083201-006775 Bele PO083201-00642 Bele PO083201-006679 Bele PO083201-006681 Bele PO083201-006682 Rourou PO083201-006812 Pineapple PO083201-006813 Bele PO083201-006813 Pineapple PO083201-006716 Bele PO083201-006718 Bele PO083201-006815 Pineapple PO083201-006815 Rourou English PO81601-001015 Cabbage Dalo Ginger Lettuce Capsicum Coconut Blue Peas Banana PO81210-001658 PO81210-001658 PO81210-001658 PO81210-001658 PO81210-001658 PO81210-001658 PO81210-001658 PO81210-001658 Watermelon PO81210-001659 PO81210-001659 PO81210-001659 PO81210-001659 PO81210-001659 PO81210-001659 Watermelon PO81210-001659 PO81210-001659 PO81210-001624 PO81210-001624 PO81210-001624 PO81210-001624 PO81210-001624 Carrots Capsicum Pear Banana Lemon Oranges Lime Cassava Bhindi Pumpkin Capsicum Mustard Cabbage Pear Banana Lime PO81210-001624 PO81210-001624 PO81210-001624 National Produce National Produce National Produce Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Singh’s Shopping Ltd Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes
 Farm Joes Farm Joes Farm Joes Farm 85kg 85kg 15kg 8kg 8kg 8kg 10kg 12kg 10kg 15kg 15kg 8kg 15kg 12kg 10kg 15kg 10kg 18kg 40kg 2 kg 3 kg 1 kg 4 kg 30 kg 30 kg 15 kg 4 kg 1 kg 5 kg 20 kg 2 kg 10 kg 3 kg 3 kg 100kg 3kg 15kg 1kg 10kg 5kg 30kg 3kg Quantity Supplied 8kg 79kg 1.5kg 0 6kg 5kg 2.5kg 6kg 0kg 0kg 0kg 0kg 0kg 0kg 2.5kg 0kg 6kg 2kg 0kg 0kg 2.7 kg 0 kg 0 kg 16 kg 20 kg 14.5kg 0 kg 0kg 0kg 10kg 0kg 9.25 kg 0kg 0kg 80kg 0kg 14.7kg 0kg 0kg 0kg 14.2kg 0kg Short Supplied 77kg 6kg 13.5kg 8kg 2kg 3kg 7.5kg 4kg 10kg 18kg 15kg 8kg 15kg 12kg 7.5kg 15kg 4kg 16kg 40kg 0.2kg 1kg 1kg 4kg 14kg 10kg 0.5kg 4kg 1kg 5kg 10kg 2kg 0.75kg 3kg 3kg 20kg 3kg 0.3kg 1kg 10kg 5kg 15.8kg 3kg Ministry of Health Section 21: Page 70 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Date LPO Number Product Supplier Quantity Ordered 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 27/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/08/13 02/08/13 02/08/13 02/08/13 02/08/13 02/08/13 Cassava Pumpkin Dhaniya Pear Banana Pineapple PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 Watermelon PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001661 PO81210-001609 PO81210-001609 PO81210-001609 PO81210-001609 PO81210-001609 PO81210-001609 PO81210-001609 Watermelon PO81210-001609 PO81210-001607 PO81210-001607 PO81210-001607 Lime Cassava Dalo Dhaniya Mustard Cabbage Haldi Blue Peas Banana Pineapple Dalo Mustard Cabbage Coconut Pear Banana Pineapple Lime Cassava Bhindi Mustard Cabbage Coconut Garlic
 Banana Lemon Pineapple Cassava Ginger Tomatoes Capsicum M/Cabbage Banana Pineapple M/cabbage Onions Banana Lemon Pawpaw Pineapple PO81210-001607 PO81210-001607 PO81210-001607 PO81210-001607 PO81210-001607 PO81210-001608 PO81210-001608 PO81210-001608 PO81210-001608 PO81210-001608 PO81210-001608 PO81210-001608 PO81210-001533 PO81210-001533 PO81210-001533 PO81210-001533 PO81210-001533 PO81210-001533 Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm 100kg 15kg 1kg 5kg 30kg 10kg 15kg 3kg 100kg 40kg 0.5kg 10kg 3kg 30kg 30kg 10kg 40kg 10kg 4kg 5kg 13kg 10kg 15kg 3kg 100kg 3kg 10kg 4kg 2kg 30kg 2kg 10kg 100kg 2kg 5kg 1kg 10kg 20kg 10kg 10kg 10kg 30kg 2kg 20kg 10kg Quantity Supplied 80kg 14.2kg 0kg 0kg 25kg 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 0 14kg 0 80kg 1.8kg 0 0 0 0 1kg 8.45kg 80kg 0 3kg 0 0 0 5kg 4.5kg 0 20kg 0 15kg 0 Short Supplied 20kg 0.8kg 1kg 5kg 5kg 10kg 15kg 3kg 20kg 40kg 0.5kg 10kg 3kg 30kg 30kg 10kg 40kg 10kg 4kg 5kg 13kg 10kg 1kg 3kg 20kg 1.2kg 10kg 4kg 2kg 30kg 1kg 1.55kg 20kg 2kg 2kg 1kg 10kg 20kg 5kg 5.5kg 10kg 10kg 2kg 5kg 10kg Ministry of Health Section 21: Page 71 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Date LPO Number Product Supplier 02/08/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 02/09/13 31/07/13 31/07/13 31/07/13 31/07/13 31/07/13 PO81210-001533 Watermelon PO81210-000484 PO81210-000484 PO81210-000484 PO81210-000484 PO81210-000484 PO81210-000484 PO81210-000484 PO81601-001015 PO81601-001015 PO81601-001015 PO81601-001015 PO81601-001015 Cassava Carrots Cabbage Blue Peas Banana Lemon Pineapple
 Cassava Dalo Long Bean C/cabbage E/Cabbage Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Joes Farm Quantity Ordered 15kg 100kg 4kg 10kg 30kg 30kg 2kg 10kg 150kg 50kg 8kg 18kg 18kg Quantity Supplied 9.6kg 90kg 0 0 0 0 0 0 90kg 20kg 2kg 13kg 12kg Short Supplied 5.4kg 10kg 4kg 10kg 30kg 30kg 2kg 10kg 60kg 30kg 6kg 5kg 6kg Ministry of Health Section 21: Page 72 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.2: Variance In System Quantity And Physical Quantity Description Galipots Stainless steel 5" Tablet Counter Plastic (TRIANGLE) Gags Mouth Child Speculum Vaginal bilvalve duckbill Stainless Steel - Size Small Tourniquet Adult Bonnet Midline ( 25 - 29 cm) for Paediatric Ventilator BC309-05 Bonnet Midline 29-36cm Basin Stainless Steel - Small Forceps Plastic Dressing 5" Test Tube Pyrex 16mm X 15cm Forceps Dissecting Plain 7" Scissors Dressing Sharp/Sharp 5.5" Episotomy Scissors - Steel Angled 7" Cheatle Forceps - lifting 11/12 Needle holder Mayo 7" Forceps Dissecting toothed 7" Stethescope Adult - Dual Head Forceps Haemostatic toothed 7" (Cocus Forceps) Gags Mouth adult Cervical Collars Soft (Medium)) - Phildelaphia Electrode Chest Infant 31118733 Bed Pan Stainless Steel - Paediatric Mayo Curved 7" Scissors Enema Can Stainless Steel Stethescope infant Laryngoscope set child 1set Bed Pan Stainless Steel - Adult Valley Lab Reusable Paediatric 7510-25(Diathemy Pads) Forceps Artery Plain 7" Bowls Stainless steel 7" Catheter Size 6 Fr - AR 2 Diagnostic Sets complete (eye/ear/nose/throat) Centering Sleeve for DHS/DCS Wrench 0.038 inch, Size-6F, Sheath L-11cm, Introducer, Slide Port Wrench for DHS/DCS Screws Towel Clips 5" DHS/DCS Lag Screw 80mm Speculum Vaginal duckbill Stainless Steel - Size Medium Blood Glucose Monitoring Meter DHS/DCS Lag Screw 110mm Total System Qty 241 32 75 6 425 0 0 0 4,134 12,970 110 150 120 10 318 146 93 123 14 3
Total Value of System Qty ($) Physical Qty Total Value of Physical Qty ($) Total Variance Qty 39 48 11 26 57 3 2 6 -52 -10 -2 -3 -2 -1 -3 -10 -1 -10 -14 -1 -368 -8 -2 -11 -4 -2 -14 -18 -145 -49 -40 -1 -1 -50 -1 -37 -4 -35 -59 -5 Total Variance Value ($) 382.96 326.81 138.43 100.17 81.38 61.47 42.55 4.18 -0.93 -3.04 -4.25 -5.85 -6.30 -6.80 -10.10 -21.27 -27.33 -40.78 -52.85 -58.94 -110.24 -126.20 -162.62 -173.08 -179.40 -256.38 -264.33 -314.62 -488.30 -627.82 -818.80 -858.83 -917.17 -1,173.09 -1,218.37 -1,302.45 -1,427.71 -1,516.85 -1,645.86 -1,784.64 Ministry of Health Section 21: Page 73 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Description Thermometer Digital DHS Plate 135 5 Hole Sterile Tray Instrument Stainless Steel 40 x 27 x 6cm Electrode Chest Neonatal Bag of 100 Electrodes Alcohol Based Hand Gel 1L Bottle Electrode Chest Adult 31050522 (Bag of 100) Ventilator Tubing Circuit Kit - Peadiatric -RT225 >> Fisher & Paykel Ventilator Tubing Circuit Kit - Adult > RT206 Mesh prolene 30 x 30cm Box of 5 Pieces Nasal Tubing Universal 100mm x 5, BC192 - 5 for Paediatric Ventilator Nasal Tubing 50mm x 5, BC180-5 for Paediatric Ventilator Identification
 bracelet infant Box of 100 Nasal Tubing Universal 70mm x 5, BC191 - 05 for Paediatric Ventilator Vicryl Rapid Suture 36 mm 1/2 Circle Undyed Braid/Coat 36' x90cm 2/0 Box of 36 Litmus paper book blue Packet of 10 books Suture polygycolic acid coated 0 90cm ,37mm taper pt half circle Box of 36 Laryngeal Mask Airway - 2.5 - Reusable Cannula Umbilical, 8fg, arterial, double lumen, sterile, individually wrapped Endotracheal tube size 7, cuffed, hi volume/low pressue, x-ray detectable (Reinforced) Bag Autoclave Code H Size 180 x 95 x 380mm Box of 500 Catheter Foley Sillicon treated 26FG, Sterile, individually wrapped Polyproplene Suture - 1 (4) 75cm, half Circle 37mm RBT (Box of 36) Catheter Peritoneal Dialysis Set, Adult (Tenckhoff) Length 42 cm Cervix Brush (Cytobrush) Pack of 10 Suture Silk Blue twisted Virgin 9/0 45cm 5.55mm rev cut 3/8 circle Box of 12 Polyglycolate Monofilament Suture - Total System Qty 9,956 2 195 Total Value of System Qty ($) 21,042.28 1,921.69 11,915.54 Physical Qty 9,069 0 122 Total Value of Physical Qty ($) 19,167.58 0.00 7,454.85 Total Variance Qty -887 -2 -73 Total Variance Value ($) -1,874.70 -1,921.69 -4,460.69 278 12,590.44 88 3,985.46 -190 -8,604.98 807 3,448 11,414.87 68,960.00 134 1,150 1,895.41 23,000.00 -673 -2,298 -9,519.46 - 550
37 6,070.24 5,176.09 9,169.76 1,542 14,253.79 550 5,084.04 0.00 17 4,594.26 17 4,594.26 98 8,201.91 152 12,721.33 54 4,519.42 Ministry of Health Section 21: Page 74 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Description 4/0 70cm, Half circle, 19mm Round Body, (Box of 12) Polyglycolic Acid Suture - 2/0 140cm, Non-needled, (Box of 36) Endotracheal tube size 8, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) Nasal Tubing 100mm x 5, BC182 - 05 for Paediatric Ventilator Cannula IV, 14G x 50mm, sterile, individually wrapped, box of 50 Suture polygycolic acid coated 5/0 67cm ,17mm taper pt half cut Box of 36 Spatula Wooden Box of 100 Pessary Ring size Large - 90mm Suture Silk 2/0 45cm, 24mm rev cut half circle Needle Box of 36 Valley Lab Reusable Polythesive E7507 (Diathemy Pads) Needle Spinal Pencil Point G 22 Suture Polygycolic Acid Coated 2/0 1.35m Without Needle Box of 12 Cannula Umbical 6fg x 35cm, Sterile, Individually Wrapped Syringe Disposable 20ml Box of 50 Needle Disposable Sterile 23G x 32mm Packet of 100 Gloves Surgical Sterile Latex Size 7,pair Suture nylon monofilament 3/0 75cm,39mm rev cut three eight Box of 36 Catheter Urinary OD 1.65mm, Sterile, (Ureteric Blue size 5 Portex 300/520/050 Blood Lancets, autoinjectable Syringe Disposable 5ml Box of 100 Chest Drain Tubes, Size 12 Box of 10 Catheter Urinary OD 2.00mm, Sterile, (Ureteric Blue size 6 Portex 300/520/060 Suture polygycolic acid coated 4/0 67cm,19mm rev cut three eight Box of 36 Endotracheal tube size 8.0, cuffed, hi volume/low pressure, x-ray detectable (Normal) Total System Qty Total Value of System Qty ($) Physical Qty Total Value of Physical Qty ($) Total Variance Qty Total Variance Value ($) 2,715.52
Ministry of Health Section 21: Page 75 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.3: Drugs Expired Within 1-9 Months From Date Of Receiving Item Description Preservacell red cell preserving solution 500ml bottle 04738551190-TSH (Thyroxine Stimulating Hormone) Calset Gen II 719905-Rapid QC Complete Level 2 Pentavalent vaccine (DPT- Hib-Hep B) 1 dose Reference Electrode ISE Module - BS 200 Reagents Cl Electrode ISE Module - BS 200 Reagents Tri Level Quality Control Kit - BS 200 Reagent Liss ready for use 2500ml bottle Bayer Hematek stain Total Cholesterol : BS- 800M1 Reagents 11488872216 Triglyceride 902 Sys 1 Preciset TDM I Multicalibrator 118155216-CEDIA TDM Antibiotic MultiCal 2339000-Anti-nuclear Autoantibody - 96 wells (ANA Screen - 96T) Metronidazole Suppository 500mg 03561097190-LH (Lutenizing Hormone) Calset II 10825441001-Potassium Electrode Lactate Dehydrogenase Strips #77171 Pack 25 - Spotchem EZ SP-4430 Vironostika HIV Uni-form 11 PI Benztropine Tablets 2mg Papenzyme 10ml vial 744 Reference Sensor Valporic Acid Date Drugs Received Quantity of Drugs Received Expiry Date Quantity of Drugs Expired 1-Aug-13 13 31-Aug-13 10 Total Value of Drugs Received ($) 1,668.16 Total Value of Drugs Expired Expiry Time Frame 1,283.20 30 1,012.15 253.04 138 15-Jul-13 4 30-Nov-13 11-Jul-13 8 30-Nov-13 1-Jun-13 75,050 31-Dec-13
 8-May-13 3-May-13 8 8 31-Dec-13 30-Nov-13 1 2 10 1 1 2,823.84 705.96 767,761.50 5,147.11 102.30 643.39 5,381.07 672.63 3-May-13 16 31-Dec-13 11 5,615.04 3,860.34 15-Apr- 13 13-Mar- 13 11-Mar- 13 18-Feb- 13 12-Feb- 13 11-Feb- 13 7-Feb-13 16-Jan- 13 24-Dec- 12 24-Dec- 12 24-Dec- 12 20 31-Aug-13 25 31-Oct-13 18 31-May-13 2 2 4 31-Dec-13 31-May-13 31-Dec-13 10 30-Apr-13 1 4 2 2 1 2 5 2,536.87 126.84 8,734.50 1,397.52 2,535.89 281.77 3,833.54 3,833.54 1,506.38 753.19 2,929.76 1,464.88 5,545.30 2,772.65 1,100 30-Nov-13 220 3,514.74 702.95 3 30-Jun-13 1 31-Aug-13 2 1 749.22 499.48 1,209.89 1,209.89 30 31-Aug-13 23 2,469.30 1,893.13 8-Nov-12 42 28-Feb-13 2 60,944.80 2,902.13 1-Nov-12 1,680 28-Feb-13 1,440 436.31 24-Sep- 12 13-Sep- 12 10-Dec- 12 3 1 7 31-Jan-13 31-Jan-13 30-Apr- Ministry of Health Section 21: Page 76 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Date Drugs Received Quantity of Drugs Received Expiry Date Quantity of Drugs Expired Total Value of Drugs Expired Expiry Time Frame Total Value of Drugs Received ($) 814.29 03005658122-Estradiol II Calset II BD Sodium Citrate tubes (2.7ml) (1x 100) 11775863122-FSH (Follicle Lutenising Hormone) Harris Haematoxylin Stain (500mls bottles) 03203093190-Prolactin Gen II 04738551190-TSH (Thyroxine Stimulating Hormone) Calset Gen II 11731297122-TSH (Thyroxine Stimulating Hormone) CA125 Calset 11820796322-Digoxin (Elecsys) API Strept (1x25test kit) Cl Electrode ISE Module - BS 200 Reagents Arabinocide-C (Cytarabine) Injection 100mg 03203093190-Prolactin Gen II PPD Human Tuberculin (Mantoux) inj 100units / 1ml 1 03003701001- Stromatolyser 4DS Anaerobic Container System Gas Pak E2 500ml Anaerobic Container System Gas Pak E2 500ml 03315517001 Stromatolyser 4DL 03315541001- Stromatolyser FB Reference Electrode ISE Module -
 BS 200 Reagents 11729691216 - Urea/Bun Total 9-Oct-12 26-Sep- 12 9-Oct-12 4 28-Feb-13 2 407.15 3,000 28-Feb-13 400 953.86 127.18 10 31-Mar-13 4 5,395.90 2,158.36 3-Oct-12 20 31-Mar-13 10 1,186.11 593.05 30-Jul-12 30-Jul-12 6 6 31-Jan-13 31-Jan-13 6 1 1,792.41 1,792.41 1,195.40 199.23 142 155 173 179 185 185 30-Jul-12 20 31-Jan-13 6 10,689.80 3,206.94 185 9-Oct-12 9-Oct-12 25-Jul-12 21-Aug- 12 14-Jun- 12 4-Jun-12 31-Oct- 12 29-Aug- 12 29-Jun- 12 29-Jun- 12 23-Aug- 12 21-Aug- 12 21-Aug- 12 14-Jun- 12 5 5 4 4 30-Apr-13 30-Apr-13 28-Feb-13 31-Mar-13 2 5 1 4 3,600.80 2,956.16 3,241.86 2,530.56 1,440.32 2,956.16 810.46 2,530.56 80 31-Jan-13 30 2,303.05 863.64 6 31-Jan-13 2 1,792.41 597.47 120 30-Jun-13 21 26,706.00 4,673.55 90 30-Apr-13 14 73,493.10 11,432.26 4 28-Feb-13 30 28-Feb-13 30 30-Apr-13 30 30-Apr-13 4 30 14 15 361.15 361.15 2,708.66 2,708.66 8,119.50 3,789.10 8,978.70 4,489.35 4 30-Apr-13 2 2,417.16 1,208.58 37 28-Feb-13 14 27,648.92 10,461.75 88,681.97 203 203 218 222 231 241 242 244 244 244 250 252 252 259 Ministry of Health Section 21: Page 77 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.4: Items Ordered Not Received By FPBS Item Description UOM Avg Unit Cost Qty On Order Amount ( ) Date of PO ETA Annula Umbilical, 8fg, arterial, double lumen, sterile, individually wrapped Microlut (levonogestrel 30 microgram) tablet - cycle/card IUCD (Copper T 380A) Levonogetrel Implant 75mg (JADELLE BRAND) 2 rods Condom Teats (Male 53mm) Needle Disposable Sterile 27G x 16mm Packet of 100 Needle Disposable Sterile 23G x 32mm Packet of 100 Folic Acid Tablets 5mg Needle Disposable Sterile 19G x 32mm Packet of 100 Syringe Disposable 20ml Box of 50 Syringe disposable 1ml Box of 100 DiaCell - I + II + III (3x10ml) DiaPanel (10vialsx4mls) Ortho Coombs control cell (1 x 10ml) Litmus paper book blue Packet of 10 books Flucloxacillin Capsules 250mg Ipratropium Bromide solution 0.025% (1mL) Total Cholesterol : BS-800M1
 Reagents UNICEF - Safety Box for AD Syringes (Cardboard Box - yellow) HBV Infant Injection 10mcg HBV Adult Injection 20mcg Burs air rotor for cavity prep, TC high speed Fiss size 018 Burs air rotor for cavity prep, TC high speed Fiss size 016 Burs air rotor for cavity prep, TC high speed Fiss size 014 B30 Control: 6 x 3.0ml (2L/2N/2H) BC-3000Plus Analyser Electrodes Filling Solution - Carelyte 503 Electrolyte Analyser Carbamazepine Tablets 200mg Ibuprofen Tablets 400mg Coverslip No.
1 22x60 (marienfield) -Made in Germany 100/box Erythromycin Suspension 125mg/5ml (100mL) Matrix Retainer(sequivalent-narrow) BX CL EA PK EA BX BX TA BX BX BX VI BX VI PK CA BT BX EA VI VI EA EA EA PK PK TA TA BX BT EA 26.51 5 0.6 100 133 60 23-Feb-12 30 Oct-13 19-Mar-12 30-Sep-13 5.12 2,500 12,797 19-Mar-12 30-Sep-13 36.59 3,600 131,729 19-Mar-12 30-Sep-13 0.03 4,600 155 19-Mar-12 30-Sep-13 3.98 6,160 24,514 30-Aug-12 30-Dec-13 4.01 47,600 190,833 30-Aug-12 30-Dec-13 0.01 950,000 4,791 27-Nov-12 30-Dec-13 4.28 37,725 161,339 29-Nov-12 28-Jan-14 13.59 6.09 377.9 732.62 32.09 141.4 1,579 9,312 41 41 117 116 21,466 56,750 15,494 30,037 3,754 29-Nov-12 15-Jan-14 29-Nov-12 15-Jan-14 6-Dec-12 30-Mar-14 6-Dec-12 31-Mar-14 6-Dec-12 31-Mar-14 16,403 14-Dec-12 15-Feb-14 0.05 1,316,000 67,123 3-Jan-13 30-Sep-13 1.36 83.24 29.23 400 28 400 0 0 1,000 22,000 2.45 250 2.45 250 1.74 250 203.02 13.88 18 3 544 2,331 27-Feb-13 30-Mar-13 7-Mar-13 29-Nov-13 11,692 8-Mar-13 30-Sep-13 1 0 612 612 435 8-Mar-13 30-Sep-13 8-Mar-13 30-Sep-13 12-Mar-13 30-Sep-13 12-Mar-13 30-Sep-13 12-Mar-13 12-Sep-13 3,654 12-Mar-13 31-Dec-13 42 10-Apr-13 29-Nov-13 0.05 480,000 24,264 26-Apr-13 30-Mar-14 0.01 124,000 1,810 29-Apr-13 30-Oct-13 3.35 1.48 43.1 324 700 30 1,086 1,034 1,293 8-May-13 28-Feb-14 13-May-13 30-Oct-13 16-May-13 30-Sep-13 Ministry of Health Section 21: Page 78 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM Matrix Band Retainer -Wide Amoxycillin Capsules 500mg Zidovudine Oral Solution 50mg/5ml Lamivudine Oral Solution 10mg/ml Ergometrine/Oxytocin Injection 500mcg/5iu 348 Ionised Calcium electrode Alcian blue 8GX 25g Hemoglobin Powder 500g Dark Green Tetron Material Pillow with Vinyl cover Composite L/C kit- shade A2,primer,bond&app.
tips Composite L/C kit- shade A3,primer,bond&app.

tips Composite L/C kit- shade A3.5,primer,bond&app.
tips Dental Stone BP 20kg Morphine Sulphate Injection 10mg/ml Prochlorperazine Injection 12.5mg/ml Gauze Absorbent BP 9cm x 5m 40x40 19x15 4ply Surgical Paper Tape 25mm x 9m Erythromycin Tablets 250mg Paracetamol Mixture 120mg/5ml 100ml Bottle Gauze Absorbent BP 90cm x 100m 40x40 19x15 4ply Barium Enema Kits Warfarin Sodium Tablets 1mg (MAREVAN BRAND) Propranolol Tablets 40mg Penicillin G Injection 1mega Penicillin V Tablets 250mg Mannitol Solution 20% Injection 500ml Bag Hartmanns Solution Injection 1000ml Bag Sodium Chloride 0.9% Injection 1000ml Bag Potassium Chloride S.R.
Tablets 600mg Pyridoxine Tablets 25mg Trifluoperazine HCI Tablets 5mg Green Film 24 x 30cm Box of 100 Green Flim 30 x 40cm Box of 100 Green Films 35 x 43cm Box of 100 Bandage elastic adhesive BP 7.5cm x 5m (stretched) EA CA BT EA AM EA BT BT MT EA PK PK PK EA AM AM RO RO TA BT RO ST TA TA VI TA BG BG BG TA TA TA BX BX BX RO Avg Unit Cost 61.97 Qty On Order 100 Amount ( ) 6,197 Date of PO ETA 16-May-13 30-Dec-13 0.05 5,002,500 245,625 23-May-13 30-Oct-13 24.8 6,653 165,020 17-Jun-13 30-Sep-13 20.52 18,680 383,241 17-Jun-13 30-Sep-13 0 6,500 0 10-Jul-13 30-Oct- 16-Jul-13 28-Feb-14 0 479 43 4,916 1,090 16-Jul-13 30-Mar-14 16-Jul-13 19-Nov-13 23-Jul-13 20-Oct-13 23-Jul-13 20-Dec-13 23-Jul-13 30-Aug-13 1,072 23-Jul-13 30-Aug-13 1,090 23-Jul-13 30-Aug-13 1,332 22,135 17,882 47 1,492 2,223 23-Jul-13 30-Aug-13 1-Aug-13 30-Mar-14 26-Aug-13 30-Jan-14 27-Aug-13 30-Oct-13 27-Aug-13 27-Nov-13 27-Aug-13 30-Nov-13 1.13 120,000 135,418 27-Aug-13 30-Nov-13 26.76 3,700 98,997 28-Aug-13 28-Feb-14 25.58 115 2,942 28-Aug-13 11-Oct-13 0.11 94,000 10,384 30-Aug-13 30-Mar-14 0.03 642,000 20,459 2-Sep-13 30-Dec-13 0.33 154,000 51,210 2-Sep-13 15-Mar-14 0.03 706,000 24,059 2-Sep-13 30-Dec-13 3.74 1.75 310 1,159 2-Sep-13 30-Jan-14 10,020 17,507 2-Sep-13 30-Jan-14 1.65 117,400 194,272 2-Sep-13 30-Jan-14 0.07 200,000 13,203 6-Sep-13 30-Nov-13 0.12 198,000 23,604 6-Sep-13 30-Nov-13 0.25 757,000 187,594 9-Sep-13 30-Nov-13 106.36 186.61 216.81 10 20 20 1,064 3,732 4,336 23-Sep-13 30-Jan-14 23-Sep-13 30-Jan-14 23-Sep-13 30-Jan-14 5.46 4,028 21,996 26-Sep-13 26-Feb-14 Ministry of Health Section 21: Page 79 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM Avg Unit Cost Qty On Order Amount ( ) Date of PO ETA Bandage elastic adhesive BP 5cm x 5m (stretched) Hypoallergenic Microporous Tape 2.5cm x 9m (3M Brand) Lignocaine Plain Injection 1% -
 FOR IV USE ONLY Disposable Innoculation Loop 10ul (20x25loops/pkt) Disposable Innoculation Loop 1ul (20x25loops/pkt) PYZ Reagent 2x5mls API Coryne Kit (12T) 20900 Finnpipette Digital 10 - 100uL Finnpipette Digital 5 - 50uL Finnpipette Digital 40 - 200uL Finnpipette Digital 20 - 200uL Finnpipette Stand Grey Flat Bottom Flask 2L Pyrex Greiner Vacuette K2E EDTA K2 Anticoagulant Tubes 13x75mm (rack of 100s) Staining racks Steel 24 slides Staining racks Plastic 24 slides Volumetric Glass Pipettes 1ml Harris Haematoxylin Stain (500mls bottles) Elastic Stain Kit Anaerobic Indicator Strips - Dry (1x100strips) Sodium Bicarbonate 500g Formaldehyde 20 ltr (40% solution) Plastic container Leishman Stain 100gms Volumetric Glass Pipettes 3ml Sediplast ESR tube with Sodium citrate labels (1 x 250) Anti -s human antisera 2ml Ephedrine Nasal Drops 0.5% Tropicamide eye drops 1% Frusemide Tablets 500mg Hemolysate Reagent without ken (250mls bottle) Diff Quik Stain Kit (3x500mls bottle) Slide Trays Metals 20 slides Colony Count Wire Loop 1/100ml 25pcs/pkt DNase Test Agar 500g Shigella flexneri Mono Type III (1x2mls) Shigella flexneri Mono Type IV (1x2mls) RO RO AM PK PK BX BX EA EA EA EA EA EA TU EA EA EA BT BT BT BT GA BT EA TU VI BT BT TA BT BT EA PK BT VI VI 3.23 5,560 17,955 26-Sep-13 26-Feb-14 5.35 14,016 74,931 26-Sep-13 26-Feb-14 0.59 8,500 5,050 3-Oct-13 18-Feb- 7-Oct-13 28-Feb-14 7-Oct-13 28-Feb-14 7-Oct-13 30-Jan-14 7-Oct-13 30-Jan-14 7-Oct-13 28-Feb-14 7-Oct-13 28-Feb-14 7-Oct-13 28-Feb-14 7-Oct-13 28-Feb-14 7-Oct-13 28-Feb-14 7-Oct-13 28-Feb-14 7-Oct-13 7-Oct-13 7-Oct-13 30-Jan-14 7-Oct-13 30-Jan-14 7-Oct-13 30-Jan-14 7-Oct-13 30-Jan-14 8-Oct-13 30-Mar-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 8-Oct-13
 30-Jan-14 2.1 40,000 84,065 8-Oct-13 25-Nov-13 4.44 0.32 2,000 15,000 154.67 245.6 0 0 164.13 248.14 248.14 2 10 15 20 2 3 3 8,885 4,726 309 2,456 0 0 328 744 744 8-Oct-13 15-Nov-13 8-Oct-13 15-Feb-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Mar-14 8-Oct-13 30-Mar-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-11 Ministry of Health Section 21: Page 80 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ UOM Avg Unit Cost Qty On Order 3 Amount ( ) 558 3 5 558 0 Date of PO ETA 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 8-Oct-13 30-Jan-14 186.1 186.1 0 Item Description Shigella flexneri Mono Type V (1x2mls) Shigella flexneri Mono Type VI (1x2mls) Shigella flexneri Mono Type II (1x2mls) Dopamine Injection 200mg/5ml Salmonella O Antiserum Factor 7 (1x3mls) Shigella Antiserum Poly Group C (1x3mls) E2300AMAA-Hepatitis A Virus Antibody - 48 wells (HAV IgM - 48 wells) Vacuum Filter - Trinity biotec Washer IV Giving set - 20 drops/ml luer lock (Adult Chamber) 150ml chamber Hydrocortisone Sodium Succinate Injection 100mg Levodopa/Benserazide Capsules 200mg/50mg Ceftriaxone Injection 1g Omnipaque [non-ionic monomer] 350 MGL/ML LDH : BS-800M1 Reagents Magnesium : BS-800M1 Reagents Spironolactone Tablets 25mg Medication Plug (Hep-Lock) Salbutamol Tablets 4mg Prednisolone Tablets 20mg Cotrimoxazole Suspension 240mg/5ml Salbutamol Respirator solution 0.5% (15mL) Prednisolone Tablets 5mg ( or Prednisone) Glipizide Tablets 5mg Benzhexol Tablets 2mg Permethrin Cream 5% (30g) Zinc Oxide Ointment CVP Triple Lumen, 7fg, 16cm Gloves Surgical Sterile Latex Size 7,pair Gloves Surgical Sterile Latex Size 7 1/2 , pair Needle Spinal Pencil Point G 25 Needle Disposable Sterile 21G X 40 mm Box of 100 Cannula I/V 16G X 57mm, Sterile, Individually wrapped Cannula I/V 20G X 32mm, Sterile, Individually wrapped ( Pink) Cannula I/V 22G X 25mm, Sterile, Individually wrapped (Blue) Gloves Nitrile "Large" Box
 of 100 Gloves Nitrile "Medium" (Box of 100) VI VI VI AM VI VI BX BX EA VI CA VI PK BX BX TA EA TA TA BT BT TA TA TA TU CO EA PR PR EA BX EA EA EA BX BX 23.01 2,200 50,624 9-Oct-13 28-Feb-14 201.68 314.12 269.57 537.83 2 3 7 2 403 942 1,887 1,076 9-Oct-13 30-Jan-14 9-Oct-13 30-Jan-14 9-Oct-13 30-Jan-14 9-Oct-13 30-Jan-14 4.24 7,375 31,250 10-Oct-13 15-Dec-13 0.62 0.51 4.35 46.2 42,000 80,000 9,500 100 155.99 84.36 20 20 0.05 0.32 80,000 50,000 26,058 40,841 41,349 4,620 3,120 1,687 3,826 16-Oct-13 30-Mar-14 16-Oct-13 1-Mar-14 16-Oct-13 15-Mar-14 22-Oct-13 30-Nov-13 23-Oct-13 28-Feb-14 23-Oct-13 28-Feb-14 23-Oct-13 30-Jan-14 16,145 23-Oct-13 31-Jan-14 0.01 900,000 11,366 23-Oct-13 30-Jan-14 0.06 0.67 1.24 80,000 11,000 4,000 4,800 7,369 4,946 23-Oct-13 30-Jan-14 23-Oct-13 30-Jan-14 23-Oct-13 30-Jan-14 0.01 800,000 11,378 23-Oct-13 30-Jan-14 0.01 3,000,000 38,916 23-Oct-13 30-Jan-14 0.07 162,000 11,393 23-Oct-13 30-Apr-14 1.17 1.62 44.48 28,000 7,700 2,500 32,810 12,491 23-Oct-13 30-Mar-14 23-Oct-13 30-Mar-14 111,212 31-Oct-13 31-Jan-14 0.74 94,300 69,628 31-Oct-13 31-Jan-14 0.99 126,870 125,194 31-Oct-13 31-Jan-14 11.42 3,000 34,267 31-Oct-13 28-Feb-14 3.94 7,000 27,549 31-Oct-13 28-Feb-14 0.54 13,400 7,222 31-Oct-13 31-Jan-14 0.44 39,500 17,571 31-Oct-13 31-Jan-14 0.83 40,400 33,387 31-Oct-13 31-Jan-14 15 15 500 513 7,500 7,695 1-Nov-13 31-Jan-14 1-Nov-13 31-Jan-14 Ministry of Health Section 21: Page 81 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Bag urine drainage, adult with outlet non return valve, 2000ml, longtube, unsterile GGT : BS-800M1 Reagents Amylase BS-800M1 Reagents Direct Bilirubin (VOX) BS-800M1 Reagents Albumin (6 x 60ml)BS-800M1 Reagents AST BS-800M1 Reagents Calcium BS-800M1 Reagents CK BS-800M1 Reagents ALP BS-800M1 Reagents ALT BS-800M1 Reagents Creatinine J : BS-800M1 Reagents BC 3000 Printer Paper Lipids Calibrator (5 x 1ml) - BS-800M1 Consumables Multi Sera Calibrator (10 x 3ml) -
 BS-800M1 Consumables Lipids Control N (6 x 3ml) - BS-800M1 Consumables Multi Control Sera N (10 x 5ml) - BS-800M1 Consumables Multi Control Sera P (10 x 5ml) - BS-800M1 Consumables HDL C : BS-800M1 Reagents LDL C : BS-800M1 Reagents Phosphorous : BS-800M1 Reagents Total Bilirubin (VOX) BS-800M1 Reagents Glucose HK : BS-800M1 Reagents Polyglycolate Monofilament Suture - 4/0 70cm, Half circle, 19mm Round Body, (Box of 12) Polyproplene Suture - 1 (4) 75cm, half Circle 37mm RBT (Box of 36) Polyproplene Suture - 0 (3/5) 75cm, half Circle 26mm RBT (Box of 36) Suture polygycolic acid coated 1 90cm ,37mm taper pt half circle Box of 36 Suture polyglycolate monofilament 5/0 67cm,20mm rev cut half Box of 36 Suture Polygycolic Acid Coated 2/0 1.35m Without Needle Box of 12 Suture polygycolic acid coated 1 90cm ,40mm taper pt half circle Box of 36 Gloves Disposable Examination, Latex, Amidextrous, Medium Box of 100 Carbamazepine 11706799001-Assay Tips 2010 11820907322-Digoxin Calset Ministry of Health UOM Avg Unit Cost Qty On Order Amount ( ) Date of PO ETA EA BX BX BX BX BX BX BX BX BX BX RO BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX BX 0.9 37,420 33,788 1-Nov-13 15-Feb- 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 18-Feb-14 6-Nov-13 30-Jan-14 6-Nov-13 28-Feb-14 8,131 6-Nov-13 28-Feb-14 10,487 6-Nov-13 28-Feb-14 11,858 6-Nov-13 28-Feb-14 11,828 6-Nov-13 28-Feb-14 3,697 3,704 1,803 4,640 5,864 6-Nov-13 28-Feb-14 6-Nov-13 28-Feb-14 6-Nov-13 28-Feb-14 6-Nov-13 28-Feb-14 6-Nov-13 28-Feb-14 82.63 134 11,073 6-Nov-13 31-Jan-14 169.19 245 41,450 6-Nov-13 31-Jan-14 98.97
 300 29,690 6-Nov-13 31-Jan-14 224.32 190.87 70 95 15,702 6-Nov-13 31-Jan-14 18,132 6-Nov-13 31-Jan-14 50 300 14,999 6-Nov-13 31-Jan-14 227.27 790 179,545 6-Nov-13 31-Jan-14 9.23 25,000 230,843 6-Nov-13 31-Jan-14 482.21 509.75 259.43 1 7 1 482 3,568 259 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 Section 21: Page 82 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM 11820796322-Digoxin (Elecsys) 03005658122-Estradiol II Calset II Folate III Calset 11875124122-Cortisol Calset 03737586190-Ferritin II Calset II 11775863122-FSH (Follicle Lutenising Hormone) FSH (Follicle Lutenising Hormone) Calset II Ferritin II 04476433190-Folate III Nifedipine Capsules 10mg Glibenclamide Tablets 5mg Cloxacillin Injection 500mg Ampicillin Injection 500mg Metronidazole Tablets 200mg Chlorhexidine Cetrimide Solution 1.5/15% 500ml Penicillin Procaine Injection 4 megaunit (Fortified) Chemical X-Ray Developer G138 20L Chemical X-Ray Fixer G334 20 Litre Gloves Disposable Examination, Latex, Amidextrous, Large Box of 100 Lint Absorbent 500g Syringe Disposable 5ml Box of 100 Syringe disposable 10ml Box of 100 Cleaning Solution Kit - BS 200 Reagent Na Electrode ISE Module - BS 200 Reagents K Electrode ISE Module - BS 200 Reagents Cl Electrode ISE Module - BS 200 Reagents Reference Electrode ISE Module - BS 200 Reagents Tri Level Quality Control Kit - BS 200 Reagent CD80 Detergent 1L - BS 200 Reagent Reaction Cuvette - BS 200 Reagent Reagent Module(Cal A, Cal B, Waste) ISE Module - BS 200 Reagents RF : BS-800M1 Reagents ASO : BS-800M1 Reagents Uric Acid : BS-800M1 Reagents Triglycerides : BS-800M1 Reagents HbA1c : BS-800M1 Reagents Total Protein : BS-800M1 Reagents Urea : BS-800M1 Reagents Ministry of Health BX BX BX BX BX BX BX BX BX CA TA VI VI TA BT VI BT BT BX RO BX BX KT EA EA EA EA KT BX BX PK BX BX BX BX BX BX BX Avg Unit Cost 624.27 Qty On Order 2 Amount ( ) 1,249 286.6 264.37 359.69 259.43 624.27 259.43 490.62
 624.23 2 2 3 3 3 3 8 8 0.02 40,000 573 529 1,079 778 1,873 778 3,925 4,994 954 Date of PO ETA 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 28-Feb-14 7-Nov-13 30-Mar-14 0 1,500,000 3,976 7-Nov-13 30-Mar-14 0.03 450,000 13,933 7-Nov-13 30-Mar-14 1.15 290,000 332,401 7-Nov-13 15-Mar-14 0.01 1,300,000 10,144 7-Nov-13 30-Mar-14 4.37 1,400 6,121 7-Nov-13 7-Nov-13 0.93 113,000 104,801 7-Nov-13 30-Jan-14 49.27 51.46 288 288 14,190 14,820 7-Nov-13 30-Jan-14 7-Nov-13 30-Jan-14 12.18 20,000 243,562 8-Nov-13 31-Jan-14 14.53 6,000 87,171 11-Nov-13 15-Mar-14 12.33 15,272 188,371 11-Nov-13 28-Feb-14 17.21 14,524 249,939 11-Nov-13 28-Feb- 11-Nov-13 30-Jan-14 11-Nov-13 30-Jan-14 11-Nov-13 30-Jan-14 11-Nov-13 30-Jan-14 3,860 11-Nov-13 30-Jan-14 2,053 326 11-Nov-13 30-Jan-14 11-Nov-13 30-Jan-14 14,018 11-Nov-13 30-Jan-14 0 11-Nov-13 30-Jan-14 8,786 11-Nov-13 28-Feb-14 13,371 11-Nov-13 28-Feb-14 1,852 5,432 11-Nov-13 28-Feb-14 11-Nov-13 28-Feb-14 54,814 11-Nov-13 28-Feb-14 1,619 7,457 11-Nov-13 28-Feb-14 11-Nov-13 28-Feb-14 Section 21: Page 83 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM Avg Unit Cost Qty On Order Amount ( ) Date of PO ETA MR Detergent Solution (2btl x 100ml) BS-800M1 Consumables MR Serum Standard (2btls x 100ml,High,Low): BS- 800M1 Consumables MR Urine Standard - BS-800M1 Consumables Sodium Electrode Potassium Electrode Chloride Electrode Reference Electrode Lamp 801-BA-80-00001-00 CD80 Detergent (2L x 6bottles/box): BS-800M1 Consumables MR Buffer Solution (1btl x 2L) Bilirubin Total - BS 200 Reagents Bilirubin Direct Kit (vox method) Glucose - BS 200 Reagents HDL - BS 200 Reagents Urea - BS 200 Reagents
 Creatinine - BS 200 Reagents Cholesterol - BS 200 Reagents Triglyceride - BS 200 Reagents Creatinine Kinase - BS 200 Reagents Salbutamol Inhaler 100mcg Bandage Elastic Cotton Crepe BPC 7.5cm x 5m Gauze Absorbent BP 90cm x 20m 40x40 19x15 4ply Stockinette 5cm x 20m Cellulose wadding BP 500g Bandage plaster of Paris 7.5cm x 2.7m Box of 12 Rolls Bag autoclave Biohazard-Large 600x900mm 125 deg.C Yellow 100/pkt Coverslip No.
1 22x50mm 1oz (pak of Stockinette 10cm x 20m Stockinette 15cm x 20m Gauze Absorbent X-Ray detectable BP 100cm x 90m Bandage Triangular Calico BP 90cm x 130cm Bandage Elastic Cotton Crepe BPC 5cm x 5m Abdominal Pack, X Ray detectable, Large size, 30cm x 50cm, Pack of 5, Double Wrapped Bandage plaster of Paris 15cm x 2.7m Box of 12 Rolls Codeine Phosphate Tablets 30mg BX PK PK BX BX BX BX EA BX BT BX KT BX BX BX BX BX BX BX PK RO RO RO RO BX BX BX RO RO RO RO RO PK BX TA 312.74 312.74 312.74 1,169.80 1,169.80 1,169.80 1,316.02 160.85 6 6 6 6 6 6 6 6 1,876 11-Nov-13 18-Feb-14 1,876 11-Nov-13 18-Feb-14 1,876 7,019 7,019 7,019 7,896 965 11-Nov-13 18-Feb-14 11-Nov-13 18-Feb-14 11-Nov-13 18-Feb-14 11-Nov-13 18-Feb-14 11-Nov-13 15-Feb-14 11-Nov-13 18-Feb-14 562.93 40 22,517 11-Nov-13 18-Feb-14 308.6 240 74,064 11-Nov-13 18-Feb- 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12-Nov-13 30-Jan-14 12,000 44,962 12-Nov-13 30-Dec-13 960 693 12-Nov-13 15-Mar-14 5.31 6,780 35,987 12-Nov-13 15-Mar-14 5.47 2.44 600 9,500 3,282 13-Nov-13 23,225 13-Nov-13 3-Jan-14 3-Jan-14 38.27 652 24,950 13-Nov-13 28-Feb-14 66.25 15.61 18.44 22.29 5 200 560 600 331 13-Nov-13 30-Jan-14 3,122 10,327 13,376 13-Nov-13 28-Feb-14 13-Nov-13 28-Feb-14 13-Nov-13 28-Feb-14 48.44 1,200 58,123 13-Nov-13 28-Feb-14 1.1 0.37 2,800 3,800 3,084 1,398 13-Nov-13 28-Feb-14 13-Nov-13 28-Feb-14 25.22 3,570 90,043 13-Nov-13 13-Nov-13 74 600 44,401 13-Nov-13 28-Feb-14 0.08 5,000 421 14-Nov-13 30-Mar-14 Ministry of Health Section 21: Page 84 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM Morphine Hydrochloride solution 10mg/ml 200ml Pethidine Injection 100mg/2ml Pethidine Injection 50mg/ml Bottles Plastic for dispensing 250ml Prochlorperazine Tablets 5mg Bandage plaster of Paris 10cm x 2.7m Box of 12 Rolls Bandage plaster of Paris 5cm x 2.7m Box of 12 Rolls Calcium Hydroxide 12g 6510272001 - Floruocell RET 12mL x 2 6510205001 - Cellpack DFL 1.5L x 2 6510302001 XN Check L1 6510329001 XN Check L2 6510337001 XN Check L3 Droperidol Injection 5mg/2ml Blood Glucose monitoring strips 50 - Advantage Brand Nifedipine Tablets MR 20mg Feeding Tube 8FG infant Feeding Tube 6FG infant Underwater Seal Drainage, Disposal Full Sets (PAEDIATRICS) Urine Collectors Paediatric Sterile 100ml Blood Administration Set 20drops/ml with filter,length180cms with swivel lock.
Bag Autoclave Code C Size 159 x 79 x 235mm Box of 1000 Bag Autoclave Code E Size 190x65x250mm Box of 1000 Sharps Container, For cytotoxics waste, Purple, 23L, puncture resistant Sharps Container, 10 L, yellow, puncture resistant Sharps Container, 5 L, yellow, puncture resistant Film Autoclave 8" Individual Packs Tape Autoclave indicator 25mm Tape Masking Autoclave 25mm Bag Autoclave Code Q Size 128 x 50 x 190mm (Box of 1000) Bag autoclave Code F Size 140 x 50 x 330mm Box of 500 Bag Autoclave Code H Size 180 x 95 x 380mm Box of 500 Chest Drain Tubes, Size 14 Box of 10 Chest Drain Tubes, Size 24 Box of 10 BT AM AM BT TA BX BX PK BX BX VI VI VI AM BT TA EA EA ST EA EA BX BX EA EA EA RO RL RL BX BX BX BX BX Avg Unit Cost 36.38 Qty On Order 40 1.82 6,000 2 18,000 Amount ( ) 1,455 10,895 35,950 Date of PO ETA 14-Nov-13 30-Mar-14 14-Nov-13 30-Mar-14 14-Nov-13 30-Mar-14 0.21 20,000 4,202 14-Nov-13 15-Feb-14 0.25 199,479 49,421 14-Nov-13 30-Mar-14 40.4 652 26,339 14-Nov-13 28-Feb-14 32.79 750 24,593 14-Nov-13 28-Feb-14 153.83 1,211.61 621.46 258.7 258.7 258.7 12.33 33.68 45 6 15 40 40 40 120 700 6,922 7,270 9,322 10,348 10,348 10,348 1,480 15-Nov-13 22-Nov-13 18-Nov-13 30-Jan-14 18-Nov-13 30-Jan-14 18-Nov-13 30-Jan-14 18-Nov-13 30-Jan-14 18-Nov-13 30-Jan-14 19-Nov-13 28-Feb-14 23,577 19-Nov-13 15-Feb-14 0.02 600,000 13,583 21-Nov-13 30-Mar-14 0.83 0.84 5,000 6,000 21.95 300 4,157 5,015 6,586 22-Nov-13 22-Feb-14 22-Nov-13 22-Feb-14 22-Nov-13 22-Feb-14 0.68 4,000 2,712 22-Nov-13 22-Feb-14 0.85 35,000 29,661 22-Nov-13 22-Mar-14 87.7 200 17,540 22-Nov-13 22-Feb-14 196.1 400 78,441 22-Nov-13 22-Jan-14 29 3,000 87,002 22-Nov-13 22-Feb-14 3.74 2.2 3,000 3,000 160.36 128 9.5 10.79 1,584 2,016 11,207 22-Nov-13 22-Feb-14 6,591 20,526 15,049 21,750 22-Nov-13 22-Feb-14 22-Nov-13 22-Mar-14 22-Nov-13 22-Mar-14 22-Nov-13 22-Mar-14 130.13 300 39,038 22-Nov-13 22-Feb-14 128.95 270 34,817 22-Nov-13 22-Feb-14 146.92 17.51 7.85 300 52 150 44,076 22-Nov-13 22-Feb-14 910 1,178 22-Nov-13 22-Feb-14 22-Nov-13 22-Feb-14 Ministry of Health Section
 21: Page 85 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM Avg Unit Cost Qty On Order 650 Amount ( ) 10,460 Chest Drain Tubes, Size 18 Chest Drain Tubes, Size 12 Box of 10 Chest Drain Tubes, Size 32 Box of 10 Tubing extension luer lock 55cm Nasogastric tube 8FG X Ray Detectable, closed end Cervix Brush (Cytobrush) Pack of 10 close wound suction /Redivac drains Feeding Tube 10FG Infant Naso Gastric Tube Drainage 12FG Naso Gastric Tube Drainage 10FG Naso Gastric Tube 18FG Naso Gastric Tube 20FG Naso Gastric Tube14FG Tube Levin D/Ryles (Duodenal Catheter) 16FG Endotracheal tube size 7, cuffed, hi volume/low pressue, x-ray detectable (Reinforced) Endotracheal tube size 8, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) Endotracheal tube size 8, cuffed, hi volume/low pressue, x-ray detectable (Reinforced) Endotracheal tube size 7, cuffed, hi volume/low pressue, x-ray detectable (Nasal Rae) Endotracheal tube size 7.5, cuffed, hi volume/low pressue, x-ray detectable (Nasal Rae) Endotracheal tube size 6, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) Endotracheal tube size 6, cuffed, hi volume/low pressue, x-ray detectable (Reinforced) Endotracheal tube size 6.5, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) Endotracheal tube size 6.5, cuffed, hi volume/low pressue, x-ray detectable (Nasal Rae) Endotracheal Tubes, Neonatal Size 5.0, uncuffed, X-Ray detectable (Normal) Endotracheal Tubes, Neonatal Size 5.5, uncuffed, X-Ray detectable (Oral Rae) Endotracheal tube size 7.5, cuffed, hi volume/low pressue, x-ray detectable (Reinforced) Endotracheal tube size 6, cuffed, hi volume/low pressue, x-ray detectable (Normal) Endotracheal Tubes Neonatal Size 2.5, uncuffed, x ray detectable (Oral Rae) Endotracheal Tubes, Neonatal Size 4.5, uncuffed, X-Ray detectable (Oral Rae) Endotracheal tube size 7, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) Endotracheal tube size
 7.5, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) EA BX BX EA EA PK EA EA PK PK EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA Date of PO ETA 22-Nov-13 22-Feb-14 22-Nov-13 22-Feb-14 22-Nov-13 22-Feb-14 25-Nov-13 1-Jun-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Nov-13 1-Jun-14 1-Jun-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Feb-14 25-Nov-13 25-Feb-14 963 967 63 592 13,866 23,633 12,517 1 3 816 890 1,185 1,422 2,925 26-Nov-13 10-Mar-14 1,391 26-Nov-13 10-Mar-14 3,675 26-Nov-13 10-Mar-14 4.87 100 4.87 100 4.83 120 487 487 579 26-Nov-13 10-Mar-14 26-Nov-13 10-Mar-14 26-Nov-13 10-Mar-14 41.78 120 5,014 26-Nov-13 10-Mar-14 4.83 130 628 26-Nov-13 10-Mar-14 5.05 200 1,011 26-Nov-13 10-Mar-14 0.05 200 0 200 11 0 26-Nov-13 10-Mar-14 26-Nov-13 10-Mar-14 20.89 300 6,267 26-Nov-13 10-Mar-14 3.34 400 1,337 26-Nov-13 10-Mar-14 11.7 400 4,680 26-Nov-13 10-Mar-14 0 400 0 26-Nov-13 10-Mar-14 4.83 500 2,414 26-Nov-13 10-Mar-14 4.83 500 2,414 26-Nov-13 10-Mar-14 Ministry of Health Section 21: Page 86 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM Avg Unit Cost Qty On Order Amount ( ) Date of PO ETA Endotracheal Tube, Size 8.5, cuffed, hi-volume/low pressure, x-ray detectable (Oral Rae) Endotracheal Tube, Size 8.5, cuffed, hi-volume/low pressure, x-ray detectable (Reinforced) Low Pressure cuffed (LPC) Size 6 - Shiley Brand Cuff Less Fenestrated (CFN) Size 6 - Shiley Brand Low Pressure Cuffed (LPC) Size 8 - Shiley Brand Low Pressure Cuffed (LPC) Size 4 - Shiley Brand Cuff Less Fenestrated (CFN) Size 4 - Shiley Brand Syringe Disposable 50ml Mucus extractor without filter with extra lid (uno plast - Muco-Sa Catheter Foley Sillicon treated 24FG, (3 way), Sterile,
 individually wrapped Catheter Foley, Silicone treated 6fg, sterile, individually wrapped Catheter Foley silicone treated 8FG, sterile, individually wrapped Catheter Foley silicone treated 10FG, sterile, individually wrapped Catheter Foley silicone treated 12FG, sterile, individually wrapped Catheter Foley Sillicon treated 22FG, Sterile, individually wrapped Catheter Foley Sillicon treated 20FG, Sterile, individually wrapped Catheter Foley Sillicon treated 14FG, Sterile, individually wrapped Catheter Foley Sillicon treated 18FG, Sterile, individually wrapped Catheter Foley Sillicon treated 16FG, Sterile, individually wrapped Catheter Suction Sterile PVC 20FG fingertip control Catheter Suction Sterile PVC 18FG fingertip control Catheter Suction Sterile PVC 8FG Fingertip Control Catheter Suction Sterile PVC 16FG fingertip control Catheter Suction Sterile PVC 14FG fingertip control Catheter Suction Sterile PVC 12FG fingertip control Catheter Suction Sterile PVC 10FG fingertip control Catheter Suction Sterile PVC 6FG Fingertip Control Syringe Disposable 3ml Box of 100 1045671-348 Preheater Tube Kit 6462640-PO2 electrode Ministry of Health EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA BX KT EA 0 0 131.34 136.63 136.63 103.66 113.77 500 500 200 200 200 200 200 0.63 5,400 0 0 26,269 27,326 27,326 20,733 22,755 3,381 26-Nov-13 10-Mar-14 26-Nov-13 10-Mar-14 26-Nov-13 26-Feb-14 26-Nov-13 26-Feb-14 26-Nov-13 26-Feb-14 26-Nov-13 26-Feb-14 26-Nov-13 26-Feb-14 26-Nov-13 15-Mar-14 1.08 800 861 26-Nov-13 26-Feb-14 22.64 600 13,583 26-Nov-13 23-Mar-14 0 600 0 26-Nov-13 23-Mar-14 4.69 1,200 5,624 26-Nov-13 23-Mar-14 2.71 1,200 3,258 26-Nov-13 23-Mar-14 3.89 1,800 7,003 26-Nov-13 23-Mar-14 4.76 4,200 19,996 26-Nov-13 23-Mar-14 4.75 4,300 20,435 26-Nov-13 23-Mar-14 4.52 4,800 21,697 26-Nov-13 23-Mar-14 4.73 4,800 22,683 26-Nov-13 23-Mar-14 4.52 6,000 27,121 26-Nov-13 23-Mar-14 0.68 800 0.38 1,600 0.42 1,600 0.31 2,400 0.31 3,000 544 615 678 733 917
 26-Nov-13 15-Apr-14 26-Nov-13 15-Apr-14 26-Nov-13 15-Apr-14 26-Nov-13 15-Apr-14 26-Nov-13 15-Apr-14 0.27 4,600 1,231 26-Nov-13 15-Apr-14 0.31 6,500 1,986 26-Nov-13 15-Apr-14 0.95 7,200 6,806 26-Nov-13 15-Apr-14 9.08 8,231 74,741 26-Nov-13 26-Feb-14 0 1,658.72 2 3 0 27-Nov-13 28-Feb-14 4,976 27-Nov-13 28-Feb-14 Section 21: Page 87 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description UOM 2671199-PCO 2 electrode 7173251-pH electrode 9463893-Sodium electrode 8001888-Potassium electrode 348 6553743-HCT electrode 476273-Reference Sensor (both) 1405672-348 Bottle Tubing Kit 2563698-Reference Electrode Fill Solution 719905-Rapid QC Complete Level 2 7182730-Rapid QC Complete Level 3 4909133-Rapid 3ml Syringe Box/200 Rapid 1ml Syringe Box/200 2490356-348 Wash and CD Pack 348 1410308-348 Buffer Pack 384192-Gas Catridge Pack 1150195-348 Printer Paper (pack of 5) Needle Disposal sterile 18G x 38mm Volume expander Solution Injection 500ml Bag Dextrose 10% inj 500ml Bag Sodium Chloride 0.3% with Dextrose 3% Injection 1000ml Bag Gloves surgical,sterile ,latex,size 8 ,pair IV Chamber (Peadiatrics) 60 drops /ml luer lock 150ml Chamber.
Needle Disposable Sterile 25G x 16mm Packet of 100 Cannula Umbical 6fg x 35cm, Sterile, Individually Wrapped Povidone Iodine Alcoholic solution 10% Flucloxacillin Suspension 125mg/5ml (100mL) Amoxycillin Capsules 250mg Theophyline slow release Tablets 300mg Ranitidine Tablets 300mg Chlorhexidine Gluconate Solution 20% w/v (4.5L) Flucloxacillin Capsules 500mg Enalapril Tablets 5mg Promethazine Elixer 1mg/ml 100ml Bottle Amiodarone Injection 150mg/3ml Sodium Valproate Tablets 200mg Haloperidol Tablets 5mg Fentanyl Injection 100mcg/2ml Ministry of Health EA EA EA EA EA EA KT EA KT KT BX BX BX KT PK RO BX BG BG BG PR EA BX EA BT BT CA TA TA GA CA TA BT AM TA TA AM Avg Unit Cost 1,658.72 Qty On Order 3 Amount ( ) 4,976 Date of PO ETA 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 4,996 6,257 5,551 7,145 6,591 0 804 2,824 4,236 5,314 7,082 15,731 19,702 27-Nov-13 28-Feb-14 27-Nov-13 28-Feb-14 0 27-Nov-13 28-Feb-14 4,930 27,762 10,155 2,436 27-Nov-13 28-Feb-14 28-Nov-13 28-Aug-14 28-Nov-13 30-Apr-14 28-Nov-13 30-Apr- 28-Nov-13 30-Apr-14 0.39 66,720 25,826 29-Nov-13 28-Feb-14 5.49 35,000 192,187 29-Nov-13 28-Feb-14 4.39 40,500 177,971 29-Nov-13 28-Mar-14 4.45 21,000 93,423 29-Nov-13 28-Feb-14 3.55 3.59 1,200 4,256 3-Dec-13 30-Mar-14 39,000 140,069 3-Dec-13 30-Mar-14 0.03 2,500,000 70,958 3-Dec-13 30-Mar-14 0.08 4,000,000 339,199 3-Dec-13 30-Mar-14 0.08 40,000 3,136 3-Dec-13 30-Mar-14 196.76 54 10,625 3-Dec-13 30-Mar-14 0.1 1,900,000 186,416 3-Dec-13 30-Mar-14 0.01 4,000,000 51,130 3-Dec-13 30-Mar-14 0.85 8.77 1,200 12 1,023 105 3-Dec-13 30-Mar-14 3-Dec-13 6-Dec-13 0.17 400,000 68,026 3-Dec-13 30-May-14 0.01 100,000 1,299 3-Dec-13
 30-Mar-14 1.99 15,000 29,804 3-Dec-13 30-Mar-14 Section 21: Page 88 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Hand Towel Shroud Material Mattress with Vinyl cover (1880cm x 900cm x 10cm) Mackintosh Rubber Etoposide Injection 100mg Ondansetron Tablet 8mg Chlorhexidine Gluconate Cream 1% 500ml Bottle Trifluoperazine HCI Tablets 1mg Dental plaster of paris BP 20kg Central venous Line catheter Single Lumen, Gauge 22, Sterile Total UoM = Unit of measure ETA = Expected time of arrival EA MT EA MT VI TA BT TA EA EA UOM Avg Unit Cost Qty On Order 2,500 Amount ( ) 4,024 Date of PO ETA 10-Dec-13 30-Jan-14 320 534 10-Dec-13 30-Apr-14 1.61 1.67 50.23 1,410 70,824 10-Dec-13 30-Apr-14 5.86 2,500 14,639 10-Dec-13 30-May-14 50.69 6.25 30.37 40 120 700 2,028 750 10-Dec-13 15-Feb-14 16-Dec-13 28-Feb-14 21,260 18-Dec-13 30-Jan-14 0.14 12,000 27.33 19 1,659 519 18-Dec-13 28-Feb-14 31-Dec-13 1-Mar-14 78.32 200 15,663 31-Dec-13 28-Jan-14 8,911,839 Ministry of Health Section 21: Page 89 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.5: Out Of Stock - Vital/Essential Items Item Description Ipratropium Bromide solution 0.025% (1mL) PPD Human Tuberculin (Mantoux) inj 100units / 1ml 1 Frusemide Injection 20mg/2ml Amoxycillin Capsules 250mg Amoxycillin/Clavulanic Acid Tablets 500mg/125mg Methylated Spirit solution 70% (500mls) Methyldopa Tablets 250mg Beclomethasone Inhaler 100mcg Dextrose 10% inj 500ml Bag Warfarin Sodium Tablets 1mg (MAREVAN BRAND) Amoxycillin Capsules 500mg Ibuprofen Tablets 400mg Carbamazepine Tablets 200mg Tropicamide eye drops 1% Norethisterone Tablets 5mg Frusemide Tablets 500mg Ephedrine Nasal Drops 0.5% Dopamine Injection 200mg/5ml Aminophyline Injection 250mg/10ml Chloramphenicol Injection 1g Paracetamol Mixture 120mg/5ml 100ml Bottle Erythromycin Tablets 250mg Ceftriaxone Injection 250mg Chlorpromazine Tablets 50mg - conventional and
 scored in half Halothane Liquid 250ml Hyaluronidase Injection 1500iu Hydroxycobolamin Injection 1mg/2ml Isoniazid Tablets 100mg Povidone Iodine Aqueous solution 10% Verapamil Tablets 40mg Dacarbazine Injection 200mg Vinblastine Injection 10mg Penicillin G Injection 1mega Propranolol Tablets 40mg Griseofulvin Tablets 125mg Lignocaine Plain Injection 1% - FOR IV USE ONLY Warfarin Sodium Tablets 5mg (MAREVAN BRAND ONLY) Zinc Oxide Ointment Permethrin Cream 5% (30g) Sodium Chloride 0.9% 100mL for NICU and PICU Propylene glycol BP 1 Litre Azithromycin Tablet 500mg Hydroxyurea Caps 500mg Podophylline Tinture Dextrose 5% 500mls in PVC/non PVC Bags Oxycodene Tab 20mg Min Stock Max Stock Qty In Stock Ministry of Health Section 21: Page 90 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Cyclosporin Tabs Tracrolimus Tabs Mycophemolate Tabs Herceptin Injection Peppermint Oil 100ml Spacer for aerosols (Volumatic) Label drug (Shake the bottle) Label drug (Typewriter plain) (Ministry of Health) Label drug (To be taken until all finished) Measure medicine plastic 30ml Phenobarbitone Sodium Injection 200mg/ml Sodium Valproate elixer 200mg/5ml HBV Immunoglobulin Injection 200 - 250iu Aspirin Tablets 300mg Hydrochlorothiazide Tablets 25mg Promethazine Elixer 1mg/ml
 100ml Bottle Labetalol Injection 100mg/20ml Griseofulvin Tablets 500mg Indomethacin Capsules 25mg Mebendazole Tablets 100mg Promethazine Tablets 10mg Propranolol Tablets 10mg Ranitidine Tablets 300mg Trimethoprim Tablets 300mg Phenobarbitone Tablets 15mg Acetazolamide Tablets 250mg Acetazolamide Injection 500mg Acetylcholine Chloride Injection 20mg Acyclovir Injection 250mg Allopurinol Tablets 100mg Amphotericin B Injection 50mg Atropine Sulphate eye drops1% Benzoin Compound Tincture 50ml Betamethasone Cream 0.1% (Valerate as salt) Bisacodyl Suppository 10mg Bone Wax Ointment 2.5g Packet of 1 Bromocriptine Tablets 2.5mg Bupivacaine Plain Injection 0.5% Calamine Lotion 100ml Charcoal Activated Solution (500mL) Chlorambucil Tablets 2mg Chloramphenicol Suspension 125mg/5ml Chloroquine Sulphate Tablets 200mg Chlorpromazine Injection 50mg/2ml Cisplatin Injection 10mg Coal Tar Ointment 100g Colchicine Tablets 0.5mg Cyclophosphamide Injection 200mg Cyclophosphamide Injection 500mg Min Stock Max Stock Qty In Stock Ministry of Health Section 21: Page 91 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Cyclophosphamide Tablets 50mg Dapsone Tablets 50mg Dapsone Tablets 100mg Dexamethasone Tablets 500mcg Droperidol Injection 5mg/2ml Diphenoxylate/Atropine tablets 2.5mg/25mcg Doxepin Capsules 25mg Econazole Pessary
 150mg Packet of 3 Edrophonium Chloride Injection 10mg/ml Ethosuximide Capsules 250mg Fluorescein Eye Drops 2% Folinic Acid Injection 15mg/2ml Fullers Earth Kit Homatropine Eye Drops 2% Imipramine Tablets 25mg Iron Dextran Injection 100mg/2ml Isoprenaline Injection 0.2mg/ml Lignocaine Heavy Injection 5% Lignocaine with Adrenaline Injection 2%/1:200000 Lignocaine Topical Solution 4% Magnesium Sulphate Paste 50g Methotrexate Injection 50mg/2ml Methotrexate Tablets 2.5mg Miconazole Nitrate vaginal Cream 2% Multivitamin Tablets - Vitamin A - 2500 IU, Multivitamin Syrup 100ml Mydricaine No.
2 eye drops Neomycin Ointment 0.5% Nitrofurantoin Capsules 100mg Bag Plastic for Dispensing 100 x 180mm (Box of 1000 Bags) Nystatin Suspension 100000u/ml Paraffin Liquid 500ml Phenobarbitone Tablets 60mg Phenytoin Sodium Chewable Tablets 50mg Pilocarpine eye drops 2% Pilocarpine eye drops 4% Neomycin/Gramicidin/Polymyxin B Eye Ointment Pralidoxime Injection 500mg/20ml Prednisolone acetate 10mg/Phenylepherine HCl 1.2mg/mL eye Prednisolone Tablets 1mg Probencid Tablets 500mg Propranolol Injection 1mg/ml Protamine Sulphate Injection 1% Psoriasis Ointment 50g Pyrantel Tablets 250mg Quinine Dihydrochloride Injection 600mg/10ml Rifampicin Capsules 150mg Rifampicin Capsules 300mg Min Stock Max Stock Qty In Stock Ministry of Health Section 21: Page 92 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Rifampicin/Isoniazid Capsules 300mg/150mg Streptomycin Injection 1g Sulphasalazine Tablets 500mg Thiamine HCI inj 100mg/2ml Thioridazine Tablet 50mg Thyroxine Tablets 50mcg Timolol eye drops 0.25% Whitfields Ointment 50g Whitfields Lotion Strong 100ml Tetracosatrin inj 250mcg/1ml Phenylepherine eye drop 10% Quinine Sulphate Tablets 300mg Cefaclor SR Tablets 375mg Daunorubicin Injection 20mg Primaquine Tablets 7.5mg Gentamicin eye drops 0.3% Methylene Blue Injection 50mg/5ml Rifampicin/isoniazid Tablets 150/100mg Bag Plastic for Dispensing 90 x 150mm (Box of 1000 Bags) Baclofen Tablets 10mg Oxybutinin HCl
 Tablets 5mg Chlorhexidine/cetrimide aqueous cream 50g Trimethoprim Suspension 50mg/5ml Amiodarone Injection 150mg/3ml Paracetamol Suppository 125mg Medroxyprogesterone Tablets 10mg Sodium Chloride Injection 20% Lignocaine/Prilocaine Patch 2.5%/2.5% (Packet of 20) Hydroxychloroquine Tablets 200mg Ear Wax Removal Drops (carbamide peroxide 6.5%) Hydrocortisone Tablets 20mg Formalin BP - 500mls Paraffin soft bp 1kg Sodium citrate 1kg Sodium chloride BP 1kg Sodium hypochlorite 1% 1L - Hospital Grade Sodium Hypochlorite 1% 5 Litre - Hospital Grade Alcohol (svr) 99 % 500mLs Oestrogen Conjugated Cream 42.5g Tube Phenobarbitone Tablets 30mg Bag Plastic for Dispensing 75 x 100mm (Box of 1000 Bags) Bleomycin Injection 15IU Prostaglandin E1 Injection 500mcg/ml (Alprostadil) Acyclovir Tablets 200mg Fluconazole Capsules 200mg Alcohol Based Hand Gel 240mLs Bottle Dextrose 10% 100mL for IV use PICU and NICU Desmopressin Injection 4 microgram/mL (1mL) Min Stock Max Stock Qty In Stock Ministry of Health Section 21: Page 93 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Indomethacin (Sodium Trihydrate) Injection 1mg Isosorbide Dinitrate Injection 1mg/ml (50mL) Naphazoline HCL Eye Drops 1% (15mL) Povidone Iodine Aqueous solution 10% Morphine Sulphate Tablets SR 30mg Vitamin A (RETINOL) Capsule 100,000 I.U.
(USP) Betamethasone scalp Lotion 0.1% Goserelin Acetate Implant 3.6mg Rifampicin Oral Solution 100mg/5mL - 60mls Simvastatin Tablets 20mg Sodium Chloride 0.9% (10mL) for IV use in PICU and NICU Lamivudine 150mg/Zidovudine 300mg + Efavirenz 600mg Tablets Sodium Chloride Irrigation 0.9% Sodium Hypochlorite 12.5%, 20L Stavudine Capsules 30mg Didanosine Tablets 200mg Efavirenz Tablets 200mg Rifampicin 60mg+INH 30mg+Pyrazinamide 150mg Dispersible Tab Ethanolamine Oleate Injection 100mg/2ml Microlut (levonogestrel 30 microgram) tablet - cycle/card Microgynon 30 ED - Ethinyloestradiol 30mcg/Levonorgestrel 150mcg Tablets (cycles) Trinordiol (cylces) Tablets HBV Infant Injection 10mcg HBV Adult Injection 20mcg UNICEF - Safety Box for AD Syringes (Cardboard Box - yellow) Yellow Fever Vaccine (Single dose) Feeding Tube 8FG infant Endotracheal Tubes Neonatal Size 2.5, uncuffed, x ray detectable (Oral Rae) Blood Glucose monitoring strips 50 - Advantage Brand Cardiograph Paper for DR LEE 120B machine Needle Disposable Sterile 27G x 16mm Packet of 100 Syringe Disposable 20ml Box of 50 Needle Spinal Pencil Point G 25 Bag urine drainage, adult with outlet non return valve, 2000ml, longtube, unsterile CVP Triple Lumen, 7fg, 16cm Cannula I/V 16G X 57mm, Sterile, Individually wrapped Mesh prolene 30 x 30cm Box of 5 Pieces Needle scalpvein set 23G X 19mm Bag Autoclave Code H Size 180 x 95 x 380mm Box of 500 Cannula Epidural Set (thoracic trochal) cannula 16G, Radio-opaque, 915mm Catheter Urinary OD 1.65mm, Sterile, (Ureteric Blue size 5 Portex 300/520/050 Connector Tubing Adaptor ID 3.0mm,OD 4.0mm(Portex 700/150/630 Min Stock Max Stock Qty In Stock 0
13,400 50 4,611 300 22 36 45 Ministry of Health Section 21: Page 94 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Connector Y (Portex 700/140/002) Nasogastric tube 8FG X Ray Detectable, closed end Y Type Peritonneal Dialysis Set Suture silk 3/0 45cm ,23mm rev cut half circle needle Box of 36 Suture Polyproplene 3.0 on 19mm Round Body Needle Box of 36 Mask disposable face(Shaoxing Health Products) Box of 50 Endotracheal tube size 6, cuffed, hi volume/low pressue, x- ray detectable (Normal) Endotracheal Tubes Neonatal Size 3.0, uncuffed, x ray detectable (Oral Rae) Blood Glucose Monitoring Meter - (ADVANTAGE) BC4030 - 10 Nasal Prong BC4540 - 10 Nasal Prong BC 5040 - 10 Nasal Prong BC 5050 - 10 Nasal Prong BC 5560 - 10 Nasal Prong BC 6060 - 10 Nasal Prong BC 6070 - 10 Nasal Prong PLaster of paris Gypsona brand 10x2.7cm PLaster of paris Gypsona brand 7.5x2.7 Adult Anaesthertic Circuit Paediatric Aneaesthetic Circuit (Sony) Printing Paper for Ultrasound Machine 110mm x 18mm UPP110HG Low Pressure cuffed (LPC) Size 6 - Shiley Brand Low Pressure Cuffed (LPC) Size 8 - Shiley Brand Low Pressure Cuffed (LPC) Size 4 - Shiley Brand Naso Gastric Tube Drainage 14FG Endotracheal Tube, Size 8.5, cuffed, hi-volume/low pressure, x-ray detectable (Oral Rae) Endotracheal Tube, Size 8.5, cuffed, hi-volume/low pressure, x-ray detectable (Reinforced) Endotracheal Tubes, Neonatal Size 4.5, uncuffed, X-Ray detectable (Oral Rae) Endotracheal Tubes, Neonatal Size 5.5, uncuffed, X-Ray detectable (Oral Rae) Sharps Container, 10 L, yellow, puncture resistant Chest Drain Tubes, Size 12 Box of 10 Chest Drain Tubes, Size 14 Box of 10 Chest Drain Tubes, Size 16 Underwater Seal Drainage, Disposal Full Sets (ADULTS) Nylon Monofilament Suture - 5/0 45cm 3/8 reverse 13mm Cutting (Box of 12) Catheter Tip Syringe (box of 100) Tubing extension luer lock 55cm Film Autoclave 8" Individual Packs Chemosafety
 Gloves (Box of 100) - Small Chemosafety Gloves (Box of 100) - Large Syringe Disposable 5ml Box of 100 Min Stock Max Stock Qty In Stock Ministry of Health Section 21: Page 95 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Syringe disposable 10ml Box of 100 Feeding Tube 10FG Infant Syringe Disposable 50ml Gloves surgical,sterile ,latex,size 8 ,pair Suture Polygycolic Acid Coated 2/0 75cm (undyed) 26mm tape Box of 36 Kiwi 0mni Cup Omnipaque [non-ionic monomer] 350 MGL/ML Disposable Latex Gloves - Large - Box of 100 Blood Glucose monitoring strips 50 - Performa Brand Port Seals Azo Wipes Caution - Cytotoxic' Warning Labels (Purple Coloured) Sodium Chloride 0.9% 500mls in PVC/Non PVC Bags Sterile Shoe Covers Syringe Insulin 10ml Disposable Apron 80 x 125cm - LDPE Disposable Apron Composite L/C kit- shade A2,primer,bond&app.
tips Composite L/C kit- shade A3.5,primer,bond&app.
tips Glass Ionomer Cement Silver Capsules Pk 50 Calcium Hydroxide 12g Fuji 2LC A2 Capsules -box of 50 Ketac Silver Applicap Standard 50/pkt Glass Ionomer Restorative Material Capsules A3 50/pkt Articulating Paper Horse Shoe Shape pkt Dentine Conditioner 25g -bott Reamers Endo 25mm No.25 Fissure Sealant LightCure pkt Upper Posteriors Shade A3 Mould 67 (Acry-Rock) Min Stock Max Stock Qty In Stock Ministry of Health Section 21: Page 96 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.6: Excess Stock Item Description Thromborel S (10ml bottle) Gemini Set 2280-0000 vented (FOR Trocars 10 gauge for JADELLE - each Cannula IV, 14G x 50mm, sterile, Levonogetrel Implant 75mg (JADELLE Flucloxacillin Capsules 500mg Autodisable Syringes - solo shot IX.
Identification bracelet infant Box of 100 Reaction Cuvette - BS 200 Reagent Medroxyprogesterone Acetate (MDPA) Tube 5ml Plastic for Crossmatch bag of LAB Cotton Absorbent BP 500g Glipizide Tablets 5mg Ibuprofen Tablets 400mg Enalapril Tablets 5mg Sharps Container, For cytotoxics Powdered Free gloves Size - Large Needle Spinal Pencil Point G 25 Powdered Free gloves Size - Medium LAB Atenolol Tablets 50mg Rubber Cups(latch, webbed,hardwhite) Needle Disposal sterile 18G x 38mm Norethisterone Tablets 5mg Nasal Tubing 50mm x 5, BC180-5 for CONSUM Mouth pieces Disaposable for PEFR Shandon Embedding Cassettes Stopcock three way Hydrochlorothiazide Tablets 25mg Suture Polyglycolate monofilament 1 Cannula I/V 24G x 25mm, sterile Phenytoin Suspension 30mg/5ml Valley Lab Reusable Polythesive Ventilator Tubing Circuit Kit - Adult > Female Condoms Glycine Injection 1.5% 3000ml Bag Lamivudine/Zidovudine Tablets Nasal Tubing 70mm x 5, BC181-05 for CONSUM Vicryl Rapid Suture 36 mm 1/2 Circle Nasal Tubing Universal 100mm x 5, Polyglycolate Monofilament Suture - Salbutamol Respirator solution 0.5% Transfer Swabs Amies with charcoal Quick - Core Biopsy Set - Coxial 10MM X-RAY Diazepam Tablets 5mg Thermometer Digital Ministry of Health Maximum Quantity Stock In Stock Quantity of Excess Stock Total Value of Over Stock () 237
Section 21: Page 97 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Maximum Quantity Gauze Absorbent BP 9cm x 5m 40x40 Dressing Hypoallergenic Microporous Tape Mammography Films - KONICA 24 X Curtain Material Baby Prints Potassium Chloride Injection 7.46% & Digoxin Injection 500mcg/2ml Nasal Tubing Universal 70mm x 5, Hydrallazine Tablets 25mg Doxycycline Capsules 100mg Rt Canal Sealant Procosol Compound Tragacanth Pulv BP 100g Suture polygycolic acid coated 0 90cm CONSUM Laryngeal Mask Airway - 2.5 - Base Plate Upper Endotracheal tube size 7, cuffed, hi Thermal Paper (Sony Superior Density Catheter Suction Sterile PVC 8FG Mercaptopurine Tablets 50mg Noradrenaline Valley Lab Reusable Paediatric Trachyostomy Tubes, sterile, Size 8.5, Endotracheal Tubes Neonatal Size 3.0, CONSUM Trachyostomy Tubes, sterile, Size 7.5, Capnograph/ECGs/Vital signs - Print Endotracheal Tubes, Neonatal Size MP9B8004030-Leptospira IgM Dip Acrylic Teeth(Upper Posterior) Dacarbazine Injection 200mg Lopinavir/Ritonavir Elixir 60ml Bag Plastic for Dispensing 50 x 90mm Vitamin A (RETINOL) 200,000 I.U.
Konica Film 15 x 30 (Box of 100) Endotracheal Tube, Adult, Introducer - CONSUM Endotracheal Tube, Size 8.5, cuffed, Suture nylon monofilament 3/0 Total Value of Standard 3 Blankets Chloramphenicol Eye Ointment 1% GC Fuji1X shade A2 Endotracheal Tubes Neonatal Size 3.5, CONSUM Bandage plaster of Paris 5cm x 2.7m Fissure Sealant Chemical Cure pkt Bed Pan Stainless Steel - Adult Drill White Mackintosh Rubber Tungsten Carbide-Komet Fissure Periphery Wax White Endotracheal Tubes, Neonatal Size Stock In Stock Quantity of Excess Stock Total Value of Over Stock () Ministry of Health Section 21: Page 98 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Catheter Foley Sillicon treated 26FG, Copper II Sulphate Solution sp gr 1.053 LAB Gentamicin Ear Drops 0.30% (5mL) Endotracheal tube size 8.0, cuffed, hi Syrup BP (4 Litres) Endotracheal tube size 7.5, cuffed, hi Mammography Films - KONICA 24 X Endotracheal Tubes, Neonatal Size IUCD (Copper T 380A) Endotracheal tube size 7.0, cuffed, hi Morphine Sulphate SR Tablets 10mg Endotracheal tube size 8, cuffed, hi Suction Pump - Suction tip set (1 Needles-Longt 1/100pkt Acetylcholine Chloride Injection 20mg Identification bracelet for Adults, Snap Endotracheal Tubes Neonatal Size 2.5, CONSUM Acrylic Teeth(Lower Posterior) Cannula Umbilical 5fg x Arterial, Lower Posteriors Shade 01 Mould D88 Endotracheal Tubes, Introducer Coverslip No.
1 22x22mm 1oz (Pk of Endotracheal Tubes, Neonatal Size Catheter Peritoneal Dialysis Set, Adult Cefaclor SR Tablets 375mg Treadmill ECG Paper A4 size Burs Diamond Finishing, Assorted - Zidovudine Tablet 300mg Gloves Nitrile "Small" Box of 100 Lopinavir/Ritonavir Tablets Endodontic Needles 23G Suture Silk Blue twisted Virgin 9/0 Bismuth in Iodoform Paste (BIPP) Gloves Post Mortem size 7" Gloves Surgical,Sterile, Latex, size 6 348 Sample and Reagent Pump Tubing LAB Zidovudine Oral Solution 50mg/5ml Pliers Flat Nose Smooth 13.5cm Staphyloslide latex Test (1x100test) Gloves Post Mortem size 7.5" Test Tube Pyrex 16mm X 15cm Autodisable Syringe with 21/22G Misoprostol Tablets 200mcg Litmus paper book Red Packet of 10 Tube 10ml CSF label 1 2box/200sachet LAB Gloves Post Mortem size 8" (pairs) Catheter Urinary OD 2.00mm, Sterile, Heatcure Liquid 275mls Maximum Quantity Stock In Stock Quantity of Excess Stock Total Value of Over Stock () Ministry of Health Section 21: Page 99 REPORT OF
 THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Maximum Quantity Delivery Kit Bandage Elastic Cotton Crepe BPC Dark Green Tetron Material Tube Culture 12 x 75mm rimless Etchant Kit Stae (blue) 2 x 2mls Acrylic Teeth(Lower Posterior) Cotton rolls 12x50 bundles Isovue Silver Nitrate Sticks Packet of 1 Stick Electrode Chest Infant 31118733 Endotracheal tube size 6.5, cuffed, hi 744 daily cleaner Calico u/b Material Printed Packing Carton (320 x 245 x Labsystems Lab Tip Yellow 25,000/box LAB Malachite Green Oxalate www Konica OPG Cassettes & Screens 15 Cold Cure Liquid Self Cure Tube Suction Yankas Alcohol Based Hand Gel 1L Bottle Nevirapine Tablets 200mg Jet Carbide burs latch, regular round Polyamide Monofilament Suture - 1 Counting Trays - (NOT TRIANGLE) Naso Gastric Tube 18FG Pillow with Vinyl cover Abacavir Tablets 300mg Applicators Wooden for Oral Use Pillow Case (cloth) White Catheter Suction Sterile PVC 5FG Stress Test Record Paper for Mortara Chest Drain Tubes, Size 10 Box of 10 Didanosine capsules 400mg Trisodium orthophosphate 1kg Redivac Tubes 1800G Perforated Jet Carbide burs latch, Inverted Cone Catheter Urinary OD 1.65mm, Sterile, Hand Towel Chest Drain Tubes, Size 20 Box of 10 Needle holder Mayo 7" Bed Sheet Dapsone Tablet 25mg (Non Formulary) Label drug (Refrigerate do not freeze) Drug Articulating Paper Straight pkt Chest Drain Tubes, Size 12 Box of 10 Endotracheal tube size 7.5, cuffed, hi Endotracheal tube size 7, cuffed, hi Carbide Fissure Stock In Stock Quantity of Excess Stock Total Value of Over Stock () 10 1,342 1,748
Stock Total Value of Over Stock () Ministry of Health Section 21: Page 100 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Maximum Quantity Burs air rotor for cavity prep, TC high Reamer 31mm no.25 Plaster Knippers Endotracheal Tubes Neonatal Size 3.5, CONSUM Root Elevator-thin point 705/3 Burs air rotor for cavity prep, TC high Upper Posteriors Shade A3 Mould 48 Dappen Dish Lather Ctton Mop ( Hard ) Methyl hydroxybenzoate pulv 100g Ethylene Glycol 500ml Catheter Umbilical Arterial 4F Periodontal Probe WHO Standard Talc Pulv 1kg French Chalk Lamivudine Oral Solution 10mg/ml Diomond Fiisure burs, size 4 Potassium Oxalate (AnalaR) 500g Lead Aprons with Back Strapping, Mosquitoe Net Adult Calico O.T Green Material Paper Points Size 45 180points/ box Paper Points Size 40- 180points/ box Suture Chromic gut 1 75cm 40mm rev CONSUM Paper Points Size 30- 180points/ box Label drug (Do not take milk, antacids, Drug Paper Points Size 25- 180points/ box Paper Points Size 20- 180points/ box Tablet Counter Plastic (TRIANGLE) Needle scalpvein set 21G X 19mm Paper Points Size 15- 180points/ box Reamer 31mm no.30 Reamer 31mm no.35 Endotracheal tube size 6, cuffed, hi Pump Tubing - Carelyte 503 Reamer 31mm no.15 Paper Points Size 35- 180points/ box Propyl hydroxybenzoate pulv 100g Endotracheal Tubes, Neonatal Size Reamer 31mm no.50 Bottle Suction 1.5L
 (CIG) Bandage elastic conforming gauze Label drug (Discard contents after) Brain Heart Infusion Broth 500g Enalapril Tablets 10mg Endotonic Gel Paste Forcep Artery Mosquito 3.5"Curved Lather Ctton Mop ( Soft) Cellulose Strips 100s/pkt Stock In Stock Quantity of Excess Stock Total Value of Over Stock () Ministry of Health Section 21: Page 101 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Bottle MRC glass 500ml Nutrient Broth 500g Scissors Dressing Sharp/Sharp 5.5" Paper Points Size 50 180points/ box Spatula Ayres Wooden Cervical Trays with lid S/S 270x210x40mm Forceps Dissecting Plain 7" Straight Handpiece Surgery Burs Wax Carver roach Nutrient Agar 500g Reamer 31mm no.90 Wire Cutter-SMOOTH-S/S Endo Spreader No:D/11T Redivac Apparatus Manometer Stopper APPLIANC Crown Forms -peadiatric Mannitol Salt Agar 500g White Pocket Sulu (small) Reamers Endo 25mm No.50 Percusor (Hammer Patella) 12" Kidney Dishes Traditional 25cm Gutta Percha Point no.25-pkt Rubber Dam Medium Scaler Curett No.14 Football/EGG Diamond Finishing Bur -Amalgam Carriers Medium (stainless DENTALP Gutta Percha Point no.20-pkt Reamers 31mm no.100 White Stone
 Acrylic Trimmer w-3 Buffer tablets ph6.8 Bonnet Midline ( 25 - 29 cm) for Gutta Percha Point no.35-pkt Brush Test Tube 16mm x 18cm Packer Endodontic No:154 Lamivudine Tablets 150mg BC309-05 Bonnet Midline 29-36cm Student NursesTrousers White Drill Excavator 672/4 Wick for Spirit Lamp Measles/ Rubella Injection 10 dose Plastic Double Ended No:18 Plastic Double Ended No:6 Straight Fissure cylindrical square-No.1 Tungsten Carbide Latch -Komet Round DENTALP Skull Cap HBV Infant Injection 10mcg Slow Speed Burs Round H1/016 Endo Spreader No:60 Straight fissure Slow Speed No.
012 Maximum Quantity Stock In Stock Quantity of Excess Stock Total Value of Over Stock () Ministry of Health Section 21: Page 102 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Flat fissure Slow Speed H21/010 Distiller Carbon Filter Rubber Cups Screw On Tetanus Toxoid Injection 10 dose TOTAL Maximum Quantity Stock 40 5 50 11,568 In Stock 630 15 1,259 19,642 Quantity of Excess Stock Total Value of Over Stock () 590 10 1,209 8,074 5.00 4.00 2.75 2.33 7,006,293.59 Ministry of Health Section 21: Page 103 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.7: Below Minimum Level Item Description Min Stock Qty In Stock Ipratropium Bromide solution 0.025% (1mL) Amoxycillin Capsules 250mg Erythromycin Tablets 250mg Ranitidine Tablets 300mg Griseofulvin Tablets 125mg Carbamazepine Tablets 200mg Propranolol Tablets 40mg Methyldopa Tablets 250mg Mebendazole Tablets 100mg Haloperidol Tablets 5mg Penicillin G Injection 1mega Paracetamol Mixture 120mg/5ml 100ml Bottle Nifedipine Capsules 10mg Gloves Surgical Sterile Latex Size 7 1/2 , pair Warfarin Sodium Tablets 1mg (MAREVAN BRAND) Dexamethasone Injection 4mg/ml Gloves surgical,sterile ,latex,size 8
 ,pair Chloramphenicol Injection 1g Sodium Chloride 0.3% with Dextrose 3% Injection 1000ml Bag Permethrin Cream 5% (30g) Isoniazid Tablets 100mg Amoxycillin/Clavulanic Acid Tablets 500mg/125mg Imipramine Tablets 25mg Beclomethasone Inhaler 100mcg Iron Dextran Injection 100mg/2ml Aminophyline Injection 250mg/10ml Blood Glucose monitoring strips 50 Frusemide Tablets 500mg Betamethasone Cream 0.1% (Valerate as salt) Cannula I/V 16G X 57mm, Sterile, Individually wrapped Zinc Oxide Ointment Ergometrine/Oxytocin Injection 500mcg/5iu Methylated Spirit solution 70% (500mls) Lignocaine Plain Injection 1% - FOR IV USE ONLY Syringe disposable 1ml Box of 100 Ceftriaxone Injection 250mg Syringe Disposable 3ml Box of 100 Theatre Caps Bouffant Box of 100 (or 250) Catheter Foley Sillicon treated 16FG, Sterile, individually wrapped Ephedrine Nasal Drops 0.5% Catheter Foley Sillicon treated 14FG, Sterile, individually wrapped Sharps Container, 5 L, yellow, puncture resistant Date of PO Expected Date of Arrival 3/30/2013 27/02/13 23/05/13 9/30/2013 27/08/13 11/30/2013 3/12/2013 3/30/2014 2/9/2013 12/30/2013 1/30/2014 26/04/2 2/9/2013 12/30/2013 13/05/13 10/15/2013 1/30/2014 19/11/13 12/3/2013 3/30/2014 9/2/2013 12/30/2013 8/27/2013 11/30/2013 1/30/2014 11/7/2013 10/31/2013 1/31/2014 8/30/2013 10/30/2013 1/30/2014 11/7/2013 11/29/2013 2/28/2014 10/8/2013 11/30/2013 9/2/2013 1/30/2014 1/30/2014 10/23/2013 10/22/2013 11/30/2013 9/30/2013 11/27/2012 3/30/2014 12/3/2013 7/10/2013 12/30/2013 11/12/2013 12/30/2013 10/8/2013 11/28/2013 1/31/2014 11/19/2013 10/8/2013 11/18/2013 1/30/2014 11/19/2013 1/31/2014 10/31/2013 10/23/2013
 1/30/2014 7/10/2013 10/30/2013 5/9/2012 9/30/2013 10/3/2013 12/30/2013 11/29/2012 12/31/2013 9/6/2013 11/30/2013 2/26/2014 11/26/2013 11/26/2013 2/26/2014 10/8/2013 11/25/2013 2/26/2014 11/26/2013 2/22/2014 11/22/2013 Ministry of Health Section 21: Page 104 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Min Stock Qty In Stock Date of PO Expected Date of Arrival Feeding Tube 8FG infant Needle scalpvein set 23G X 19mm Feeding Tube 10FG Infant Shoe Covers Plastic Promethazine Elixer 1mg/ml 100ml Bottle CVP Triple Lumen, 7fg, 16cm Syringe Insulin 30ml Tape Autoclave indicator 25mm Blood Glucose monitoring strips 50 - Advantage Brand Blood Glucose monitoring Meter - Performa Brand Sodium Chloride 0.9% 100mL for NICU and PICU Catheter Foley silicone treated 12FG, sterile, individually wrapped Dextrose 50% inj 500ml Bag Tropicamide eye drops 1% Povidone Iodine Scrub solution 7.5% Dispensing Pins (Codan Spikes) Syringe Insulin 3ml Syringe Insulin 50 / 60ml Suture polygycolic acid coated 1 90cm ,40mm taper pt half circle Box of 36 Endotracheal Tube, Size 9.5, cuffed, hi-volume/low pressure, x-ray detectable Methotrexate Injection 50mg/2ml Naso Gastric Tube 12FG Catheter Suction Sterile PVC 20FG fingertip control Suture Silk 3/0 75cm, 26mm rev cut half circle Needle Box of 36 Blood Glucose Monitoring Meter Adult Anaesthertic Circuit Tube Levin D/Ryles (Duodenal Catheter) 10FG-xray detectable Endotracheal tube size 7, cuffed, hi volume/low pressue, x-ray detectable (Oral Rae) Paediatric Aneaesthetic Circuit Nasogastric tube 8FG X Ray Detectable, closed end Suture Polygycolic Acid Coated 2/0 75cm (undyed) 26mm tape Box of 36 Halothane Liquid 250ml Bag Autoclave Code E Size 190x65x250mm Box of 1000 CATI & III Patient Kit A Battery for Advantage Meter Lithium Brush Nail Nylon Surgeon, size 10 X 5cm Underwater Seal Drainage, Disposal Full Sets (PAEDIATRICS) Sharps Container, 10 L, yellow, puncture resistant Chemosafety
 Gloves (Box of 100) - Small (Sony )Colour Printing Pack for V10 Ultrasound Machine UP- C21L, GS-128 (PACK OF 4) PLaster of paris Gypsona brand 10x2.7cm PLaster of paris Gypsona brand 7.5x2.7 Underwater Seal Drainage, Disposal Full Sets (ADULTS) 9/26/2013 12/24/2013 11/22/2013 12/15/2013 12/3/2013 10/31/2013 3/30/2014 1/31/2014 3/22/2014 11/22/2013 10/2/2013 10/25/2013 1/30/2014 9/2/2013 2/26/2014 11/26/2013 9/2/2013 1/30/2014 10/8/2013 11/15/2013 10/16/2013 11/30/2013 11/6/2013 1/31/2014 11/26/2013 12/17/2013 11/22/2013 12/15/2013 2/26/2014 11/26/2013 1/31/2014 11/6/2013 1/31/2014 11/19/2013 11/25/2013 2/25/2014 11/26/2013 2/26/2014 2/25/2014 11/25/2013 11/6/2013 1/31/2014 8/27/2013 11/30/2013 11/22/2013 1/22/2014 10/22/2013 11/30/2013 11/22/2013 11/22/2013 2/22/2014 2/22/2014 Ministry of Health Section 21: Page 105 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Min Stock Qty In Stock Date of PO Expected Date of Arrival Catheter Tip Syringe (box of 100) Gags Mouth adult Silicone Tubing Patient Set Connectors 3 Piece Anti-Slip Titanium Adaptor Low Pressure cuffed (LPC) Size 6 - Shiley Brand Low Pressure Cuffed (LPC) Size 8 - Shiley Brand Low Pressure Cuffed (LPC) Size 4 - Shiley Brand Blood Glucose Monitoring Meter - (ADVANTAGE) BC4030 - 10 Nasal Prong BC4540 - 10 Nasal Prong BC 5050 - 10 Nasal Prong BC 5560 - 10 Nasal Prong BC 6060 - 10 Nasal Prong Nylon Monofilament Suture - 5/0 45cm 3/8 reverse 13mm Cutting (Box of 12) Chemosafety Gloves (Box of 100) - Large Tubing extension luer lock 55cm Endotracheal tube size 8, cuffed, hi volume/low pressue, x-ray detectable (Reinforced) Endotracheal Tube, Size 8.5, cuffed, hi-volume/low pressure, x-ray
 detectable (Oral Rae) Endotracheal Tube, Size 8.5, cuffed, hi-volume/low pressure, x-ray detectable (Reinforced) Endotracheal Tubes, Neonatal Size 4.5, uncuffed, X-Ray detectable (Oral Rae) Endotracheal Tubes, Neonatal Size 5.5, uncuffed, X-Ray detectable (Oral Rae) Naso Gastric Tube Drainage 14FG Chest Drain Tubes, Size 16 Chest Drain Tubes, Size 22 Box of 10 Mask disposable face(Shaoxing Health Products) Box of 50 Methylprednisolone Injection 1g Droperidol Injection 5mg/2ml Arabinocide-C (Cytarabine) Injection 100mg Suture polygycolic acid coated 1 70 cm ,27mm taper pt half circle Box of 36 Endotracheal Tubes Neonatal Size 2.5, uncuffed, x ray detectable (Oral Rae) Tubing sheeting drainage corrugated 250x30mm radio-opaque Suture silk 3/0 45cm ,23mm rev cut half circle needle Box of 36 Suture nylon monofilament 10/0 15cm,5.5mm lancet pt modifile Box of 12 Endotracheal Tubes Neonatal Size 3.0, uncuffed, x ray detectable (Oral Rae) Connector Y (Portex 700/140/002) Pessary Ring size Small - 50mm Film Autoclave 8" Individual Packs Catheter peritoneal dialysis set, pediatric (Tenckhoff) length 37 cm ,20cm to cuff ,5cm distal Suture Polyproplene 3.0 on 19mm Round Body Needle Box of 36 Stop TB CAT II Patient Kit A1 Y Type Peritonneal Dialysis Set Laryngoscope set adult 1 set 11/26/2013 11/26/2013 11/26/2013 2/26/2014 2/26/2014 2/26/2014 11/25/2013 6/1/2014 11/26/2013 2/26/2014 11/26/2013 2/26/2014 11/26/2013 2/26/2014 11/26/2013 11/26/2013 2/26/2014 2/26/2014 10/3/2013 12/30/2013 1/30/2014 11/19/2013 11/26/2013 12/17/2013 1/31/2014 11/6/2013 2/26/2014 11/26/2013 11/22/2013 3/22/2014 10/22/2013 11/30/2013 Ministry of Health Section 21: Page 106 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Min Stock
 Qty In Stock Date of PO Syringe Disposable 50ml BC 5550 - 10 Nasal Prong BC 6070 - 10 Nasal Prong BC 5040 - 10 Nasal Prong Film Autoclave 6" Individual Packs Mesh Prolene 5x5cm box of 5pieces Twine post mortem Cuff Less Fenestrated (CFN) Size 6 - Shiley Brand Film Autoclave 4" Individual Packs Chest Drain Tubes, Size 32 Box of 10 Polyproplene Suture - 0 (3/5) 75cm, half Circle 26mm RBT (Box of 36) Cuff Less Fenestrated (CFN) Size 4 - Shiley Brand Suture polypropylene monofilament 5/0 90cm,16mm dbl arm rev Box of 12 Redivac Straight Needle 1800M Mesh Prolene 15x15cm box of 5pieces Endotracheal tube size 6, cuffed, hi volume/low pressue, x-ray detectable (Normal) Chest Drain Tubes, Paediatrics Naso Gastric Tube14FG Bag Autoclave Code H Size 180 x 95 x 380mm Box of 500 Gloves Nitrile "Large" Box of 100 (Sony) Printing Paper for Ultrasound Machine 110mm x 18mm UPP110HG Suture Polygycolic Acid Coated 3/0 75cm 26mm Taper Point Half Circle Box of 36 Gloves Nitrile "Medium" (Box of 100) Tape Masking Autoclave 25mm Catheter Foley Sillicon treated 18FG, Sterile, individually wrapped Syringe Disposable 20ml Box of 50 Naso Gastric Tube Drainage 10FG Naso Gastric Tube 20FG Polyproplene Suture - 0 (3/5) 75cm, half Circle 37mm RBT (Box of 12) Suture Catgut Chromic 67cm, 27mm taper pt half circle R/B Box of 36 Central Venous Catheter Tripple Lumen 7Fr) Catheter Suction Sterile PVC 16FG fingertip control Catheter Suction Sterile PVC 14FG fingertip control Tube Levin D/Ryles (Duodenal Catheter) 16FG Uristix Strips 100 Bag urine drainage, adult with outlet non return valve, 2000ml, longtube, unsterile Suture polygycolic acid coated 1 90cm ,37mm taper pt half circle Box of 36 Catheter Suction Sterile PVC 12FG fingertip control Infant Delivery SYS-SMCP(10) - (Buble CPAP) Catheter Foley, Silicone treated 6fg, sterile, individually wrapped Pessary Ring size Large - 90mm Urine Collectors Paediatric Sterile 100ml Bag Colostomy (Stoma) with Skin Barrier 1,783 67 67 67 11 67 20 67 17 53 100 67 67 36 67 134 53
Expected Date of Arrival 3/15/2014 11/26/2013 10/31/2013 1/31/2014 11/26/2013 2/26/2014 11/22/2013 11/6/2013 11/26/2013 2/22/2014 1/31/2014 2/26/2014 10/31/2013 1/31/2014 11/26/2013 2/26/2014 11/25/2013 11/22/2013 11/1/2013 2/25/2014 2/22/2014 1/31/2014 11/6/2013 1/31/2014 1/31/2014 11/1/2013 3/22/2014 11/22/2013 11/26/2013 2/26/2014 11/29/2012 12/30/2013 2/25/2014 11/25/2013 2/25/2014 11/25/2013 11/26/2013 11/26/2013 11/25/2013 2/26/2014 2/26/2014 2/25/2014 11/1/2013 12/15/2013 1/31/2014 11/6/2013 2/26/2014 11/26/2013 11/26/2013 2/26/2014 11/22/2013 2/22/2014 Ministry of Health Section 21: Page 107 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Item Description Syringe disposable 10ml Box of 100 Cardiograph Paper for Motara ELI 50 Catheter Suction Sterile PVC 18FG fingertip control Catheter Foley Sillicon treated 22FG, Sterile, individually wrapped Catheter Suction Sterile PVC 6FG Fingertip Control Gloves Disposable Examination, Latex, Amidextrous, Small Box of 100 Syringe Disposable 5ml Box of 100 Feeding Tube 6FG infant IV Chamber (Peadiatrics) 60 drops /ml luer lock 150ml Chamber.
Needle Disposable Sterile 21G X 40 mm Box of 100 Gloves Surgical Sterile Latex Size 7,pair Catheter Foley Sillicon treated 20FG, Sterile, individually wrapped Needle Disposable Sterile 27G x 16mm Packet of 100 Catheter Suction Sterile PVC 10FG fingertip control Mucus extractor without filter with extra lid (uno plast - Muco-Sa Cervix Brush (Cytobrush) Pack of 10 Needle Disposable Sterile 23G x 32mm Packet of 100 Gloves Disposable Examination, Latex, Amidextrous, Medium Box of 100 Gloves Disposable Examination, Latex, Amidextrous, Large Box of 100 Needle Disposable Sterile 19G x 32mm Packet of 100 IV Giving set - 20 drops/ml luer lock (Adult Chamber) 150ml chamber Blade surgical Scaple No.
15 sterile individually wrappled Medication Plug (Hep-Lock) Needle Disposable Sterile 25G x 16mm Packet of 100 Cannula I/V 22G X 25mm, Sterile, Individually wrapped Min Stock 3,333 2,967 872 833 2,366 5,000 3,333 1,863 11,667 2,321 23,447 1,125 1,850 2,833 1,417 3,750 15,733 10,000 8,333 12,175 7,183 7,140 26,700 13,333 17,926 Qty In Stock 367 385 424 428 526 552 615 959 960 984 990 1,050 1,093 1,194 1,262 1,536 2,499 3,205 3,358 3,781 4,572 6,187 7,083 7,638 10,043 Date of PO 11/11/2013 Expected Date of Arrival 1/15/2014 11/26/2013 11/26/2013 11/26/2013 2/26/2014 2/26/2014 2/26/2014 11/11/2013 12/30/2013 2/22/2014 11/22/2013 11/29/2013 2/28/2014 11/29/2012 12/28/2013 10/31/2013 1/31/2014 2/26/2014 11/26/2013 8/30/2012 12/30/2013 2/26/2014 11/26/2013 2/26/2014 11/26/2013 10/16/2013 11/1/2013 8/30/2012 12/30/2013 1/31/2014 11/6/2013 1/31/2014 11/8/2013 11/29/2012 1/28/2014 10/10/2013 12/15/2013 2/15/2014 10/18/2013 10/23/2013 1/31/2014 11/29/2012 10/28/2013 1/31/2014 10/31/2013 Ministry of Health Section 21: Page 108 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.8: Sigatoka Tenants Without Bond Payment Occupant Post EDP No.
Location Ilaitia Kebubu Ana sauradu Ana Dresia Rokovada Yashoda Reddy Arieta Tanono Joji Vakadiwaiwai Alitia Vialani Viliame Gonewai Elvis Zibram Sulueti Sadranu Dental Therapist Staff Nurse Dental Hygienist Staff Nurse Staff Nurse Medical Officer Staff Nurse Staff Nurse Medical Officer Medical Officer Laila Cakaunivalu Staff Nurse 59903 32513 60728 34125 32866 92377 33229 33418 92395 92400 32364 Asena Kauyaca Nurse Practitioner 32227 Loata Marama Staff Nurse 33516 Tevita Navuda Nurse Practitioner 32494 Unaisi Qasevakatini Vasemaca Matai Staff Nurse Staff Nurse Adi Vika Bavui Staff Nurse Elesi Buloudigi Vaseva Ratu Setaita Serutabua Staff Nurse Staff Nurse Staff Nurse Ilivia Tinaimakubuna Staff Nurse 34114 34218 33226 33462 31944 32578 33516 Keiyasi Health Centre Keiyasi Health Centre Keiyasi Health Centre Keiyasi Health Centre Keiyasi Health Centre Keiyasi Health Centre Keiyasi Health Centre Nurses Quarters - Lomawai Health Centre Lomawai Health Centre Korolevu Health Centre - Medical Qrts Korolevu Health Centre - Nurses Qrts Medical Qrts - Raiwaqa Health Centre Nurses Quarters - Raiwaqa Health Centre Vatulele Health Centre - Medical Qrts Vatulele Health Centre Old Model Qrts - Nukuilau Nursing Station Old Model Qrts - Tuvu Nursing Station Loma Nursing Station Cuvu Nursing Station Medical Officers Qrts - Tau Health Centre Nurses Quarters - Tau Health Centre Occupation Date 17/12/2010 23/03/2005 26/01/2010 01/08/2010 17/05/2010 22/01/2013 03/01/2013 31/07/2010 31/01/2013 24/01/2013 09/01/1998 18/06/2010 23/06/2011 23/02/2013 05/06/2011 10/01/2010 01/03/2003 06/05/2011 03/03/2009 15/08/2011 02/05/2011 Bond ($) 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 Ministry of Health Section 21: Page 109 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.9: Lautoka Tenants Without Bond Payment Occupant Post Matavesi Telawa Medical Officer Filomena Elo Ratu Patemo V Staff Nurse Medical Officer Miliana Naresia Staff Nurse Salote Kataiwai Medical Officer Losana Disomi Staff Nurse Asenaca Adi Staff Nurse Salanieta Vavalagi Staff Nurse Luisa Daveta Staff Nurse Porsha Lania Foster Staff Nurse Jotishma Kumar Staff Nurse Medical Officer Medical Officer X-Ray Technician Medical Officer Snr Phr Tech Tumen Bayar Abhitesh Raj Peni Veitogavi Victor Wasson Kereni Goneyali V Tieri Konrote Waqanicakau Medical Officer Guttierez N C William Saqusaqu Ilisapeci Korovou Deo Narayan Kelera Tabuaniqili Joeli Kalou Ravi Krishna Rao Mark Rokobuli Tamanivalu F Berenadeta Lutua Cikanamatana Luisa Mohammed Tariq Waisea Kelo Losalini Tavitani Ashna Murthi Arun Krishna Murari Anjani Singh Sangeeta Devi Prasad Sapna Prakash Virisila Sema Lusiana Naikawakawavesi Viliame Vakacereivalu Aliviado Rogelio Jr Arti Kaur Jona Nabaro Phar Sup Dental Hyg Dental Therapist Consult Medical Officer Lab Tech Medical Officer Medical Officer Dental Hyg Lab Tech MS Medical Officer Principal Pharmcst Clerical Officer Medical Officer Consult Surg Phar Sup Lab Tech Dental Therapy Medical Officer Medical Officer Dental Technician PMO Lab Technician Medical Officer EDP No.
4/8/2076 90540 63114 62071 92999 63135 90963 Location Medical Officer's Qrts - Kese H/C Nurses Qrets - Kese H/C Medical Officer's Qrts - Nacula H/C Nurses Qrts - Nacula Health Centre Medical Officer's Qrts - Malolo H/C Nurses Qrts - Malolo Health Centre Nurses Qrts - Yalobi Nursing Station Nurses Qrts - Viwa Nursing Station Nurses Qrts - Teci Nursing Station Nurses Qrts - Yanuya Nursing Station Nurses Qrts - Somosomo Nursing Station Pluggers Avenue Vomo Street Vunivadra Street 18 Tavakubu Lum Street 38 Marlow Street 49 Malamala Street 243 Sukanivalu Vomo Street Pluggers Avenue Pluggers Avenue 110 Ajodya Prasad 15 Sugar Ave 13 Kara Punjas Flat 2 Bekana Lane 15 Tavakubu Rd Waya Street Thmson CR 10 Kara Punjas 14 Malamala St 47 Malamala St 7 Vunivadra St 10 Covuli Street 6 Kama St 11 Kula St 2 Madharin Pl 157 Thomson 291 Sukanaivalu Rd 5 Kama Street 21 Rifle Range 4 Fultana Place, Lautoka Occupation Date 15/05/13 Bond ($) 300 15/02/13 17/02/12 01/04/11 13/02/13 03/10/08 07/10/10 11/02/11 04/04/11 11/02/13 15/02/13 11/10/11 27/01/13 01/07/10 09/04/13 01/06/05 01/05/12 01/12/94 27/01/13 30/03/08 12/11/02 04/05/08 19/11/10 12/02/13 07/08/05 22/01/04 01/09/12 24/05/05 19/03/13 17/02/13 27/08/10 22/02/11 16/02/09 01/12/09 17/01/13 17/12/12 02/10/12 12/12/11 20/09/13 17/09/10 07/06/13 17/10/ Ministry of Health Section 21: Page 110 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Occupant Post Ragni Dayal Ranishwar Vatukela Josateki Vatukela Peni Tanadua Joana Seru Priteshni Deo Neeraj Sharma Raphael Malien Vilomena Ranadi X Ray Tech Jnr Physio Dental Officer Dental Hygienist Physio Therapist Dental Hygienist Medical Officer Consultant Medical Officer EDP No.
63097 63962 92035 58349 59286 63180 92396 93882 91452 Location 8 Chameli St 8 Razak Rd 24 Waya St 53 Chandman St 23 V M Pillay Rd Kanta St Golf Link Rd Golf Link Rd 35 Sadalwood Lane Occupation Date 01/04/12 11/01/14 27/01/14 16/01/14 - - 21/02/14 21/03/14 28/03/14 Bond ($) 300 300 300 300 300 300 300 300 300 Ministry of Health Section 21: Page 111 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_________________________ Appendix 21.10: Ba Tenants Without Bond Payment Occupant Post Adi Kelera Sainiana Shalik Chand Luisa Lubi Biudole Sokia Zareena Bibi Ronila Singh Sovaia Sataru Sanjeet Prasad Pratika Wati Singh Staff Nurse Staff Nurse Staff Nurse Staff Nurse Staff Nurse Staff Nurse Staff Nurse Temp H/I Staff Nurse EDP No.
34304 33859 32459 34234 34450 32802 33863 59278 34583 Location Namau Nursing Station Balevuto Health Centre Nailaga Health Centre Ba Hospital Compound Ba Hospital Compound Ba Hospital Compound Ba Hospital Compound Ba Hospital Compound Ba Hospital Compound Occupation Date 01/02/11 01/11/07 - 17/01/11 01/01/10 01/08/99 21/03/11 01/08/11 01/01/11 Bond ($) 300 300 300 300 300 300 300 300 300 Ministry of Health Section 21: Page 112 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 22 Ministry of Local Government, Urban Development, Housing and Environment Role and Responsibilities The Ministry of Local Government, Urban Development, Housing and Environment is responsible for the formulation and implementation of local government and urban planning policies and the formulation and implementation of housing and integration of programmes to eradicate poverty.
It is also responsible for administering the Government Grant for the National Fire Services.

In addition, the Ministry is also responsible for the Department of Environment that is mainly responsible for the development of government policy for the protection of the environment and its sustainable use for human resources and policing the use of the environment and ensuring compliance with government policy by economic agents.
The Ministry’s functions are categorized into the following programme areas:  General Administration;  Local Government;  Department of Town and Country Planning;  Housing; and  Environment Department.

The National Fire Authority is also under the Ministry’s jurisdiction.
Table of Contents PART A: 22.1 22.2 22.3 22.4 22.5 PART B: 22.6 22.7 22.8 22.9 22.10 FINANCIAL STATEMENT ...................................................................................................................................... 2 Audit Opinion ........................................................................................................................................................... 2 Statement of Receipts and Expenditure .................................................................................................................. 2 Appropriation Statement ......................................................................................................................................... 4 Statement of Losses ............................................................................................................................................... 5 Trust Fund Account Statement of Receipts and Payments .................................................................................... 5 AUDIT FINDINGS ................................................................................................................................................... 6 Main Trust Fund Account – Unreconciled Balances ............................................................................................... 6 Revolving Fund Account ......................................................................................................................................... 7 Expenditure Ledger not maintained ........................................................................................................................ 7 Re-engagement of Senior Technical Officer ........................................................................................................... 8 Poor Management of Funds for the 9th Pacific Islands Conference on Nature Conservation and Protected Areas (PICNIC) ....................................................................................................................................... 9 22.11 Naboro Landfill Design and Construction of Phase 2 ........................................................................................... 11 22.12 Operation of Naboro Landfill ................................................................................................................................. 13 Fiji National Faith Based Organization Environment Stewardship Summit ........................................................... 15 22.13 22.14 Market Shelter for Weekend Vendors ................................................................................................................... 18 Environment Management Act Allocation ............................................................................................................. 18 22.15 Journal Vouchers .................................................................................................................................................. 20 22.16 Discrepancies on Purchase of Goods and Services ............................................................................................. 21 22.17 PART C: AUDIT FINDINGS ................................................................................................................................................. 23 HEAD 23 – DEPARTMENT OF HOUSING ................................................................................................................................ 23 Expired Consultancy Contract with Ian Macallan & Co (Fiji) Ltd ........................................................................... 23 Administration of Funds for Lagilagi Housing Project ........................................................................................... 24 Squatter Resettlement Program at Wailekutu ....................................................................................................... 26 Nativi Income Generating Projects ........................................................................................................................ 28 Poor Administration of Grants by National Joint Committee ................................................................................. 29 22.18 22.19 22.20 22.21 22.22 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ PART A: FINANCIAL STATEMENT 22.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Local Government, Urban Development, Housing and Environment resulted in the issue of a qualified audit report.
The basis of qualification was that an unreconciled variance of $358,893 existed in the Department of Environment Main Trust Fund Account bank statement balance and the General Ledger (FMIS) balance.

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.

The Ministry prepared its financial statement from the FMIS general ledger.
22.2 Statement of Receipts and Expenditure The Ministry of Local Government, Urban Development, Housing and Environment’s budget was allocated with two separate Heads in 2013.

The Ministry of Local Government, Urban Development and Environment budget was allocated under Head 37 while the Department of Housing was allocated its budget under Head 23.
The Ministry is responsible for the administration and accounting for both the budget heads hence separate Statements of Receipts and Expenditure and Appropriation Statement have been prepared to reflect both Heads 23 and 37.

Head 23 - Department of Housing The Department collected revenue amounting to $170,283 and incurred expenditure totalling $15,469,970 in 2013.

Details are provided in Table 22.1 below.
Table 22.1: Statement of Receipts and Expenditure for 2013 Description Revenue Miscellaneous Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure 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 Purchases Capital Grants & Transfers Total Capital Expenditure 2013 ($) 2012 ($) 170,283 170,283 4,694 4,694 279,143 15,722 35,236 37,418 18,032 750,000 140,258 1,275,809 238,051 12,774 29,241 37,344 72,428 1,000,000 173,768 1,563,606 1,955,234 0 11,917,235 13,872,469 1,357,010 0 13,134,799 14,491,809 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Description Value Added Tax TOTAL EXPENDITURE 2013 ($) 321,692 15,469,970 2012 ($) 248,918 16,304,333 Total revenue increased by $165,589 or 3,527.6% in 2013 compared to 2012 due to clearance of stale cheques and overpayment recoveries.
Total expenditure decreased by $834,363 or 5.1% in 2013 compared to 2012 due to:  decrease in purchase of goods and services related costs;   decrease in Special Expenditure, due to decrease in Housing Policy and Implementation Plan redeployment of funds from operating grants to other Ministries and Departments;  related cost; and reduction in Capital Grants and Transfers due to less Sustainable Rural Housing/Income Generating Project carried out in 2013.
Head 37 - Ministry of Local Government, Urban Development and Environment The Ministry collected revenue amounting to $185,954 and incurred expenditure totalling $11,630,086 in 2013.

Details are provided in Table 22.2.
Table 22.2: Statement of Receipts and Expenditure for 2013 Description Revenue State Revenue Town and Country Planning Fees Commission Total State Revenue Agency Revenue Miscellaneous Revenue Total Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Government Wage Earners 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 ($) 2012 ($) 137,027 4,679 141,706 44,248 44,248 185,954 2,193,446 132,212 176,141 262,395 156,657 1,642,026 1,917,027 6,479,904 1,260,724 300,000 3,002,500 4,563,224 586,958 11,630,086 --- --- --- 4,694 4,694 4,694 1,883,199 123,840 178,728 276,478 140,962 955,146 2,043,157 5,601,510 22, 608 469,836 1,695,800 2,188,244 469,490 8,259,244 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Ministry’s revenue increased by $181,260 or 3,861.5 % in 2013 compared to 2012 due to increase in Town and Country Planning Fees collected and the clearance of stale cheques.
Total expenditure increased by $3,370,842 or 40.8% in 2013 compared to 2012 due to increase in staff establishment, overtime costs, travel costs in Local Government and Town and Country Planning Department, maintenance costs, and increase in Operating Grants.

22.3 Appropriation Statement Head 23 - Department of Housing The Department of Housing incurred expenditure totalling $15,469,970 in 2013 against the revised budget of $27,197,663 resulting in saving of $11,727,693 or 43%.
Details are provided in Table 22.3.
Table 22.3: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Purchases Capital Grants and Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 312,569 15,722 36,000 50,000 24,000 1,000,000 174,000 1,612,291 1,000,000 --- 21,000,000 22,000,000 192,600 23,804,891 Changes ($) --- --- --- --- --- (250,000) --- (250,000) 1,576,324 --- 1,830,000 3,406,324 236,448 3,392,772 Revised Estimate ($) 312,569 15,722 36,000 50,000 24,000 750,000 174,000 1,362,291 2,576,324 --- 22,830,000 25,406,324 429,048 27,197,663 Actual Expenditure ($) 279,143 15,722 35,236 37,418 18,032 750,000 140,258 1,275,809 1,955,234 --- 11,917,235 13,872,469 321,692 15,469.970 Lapsed Appropriation ($) 33,426 --- 764 12,582 5,968 --- 33,742 86,482 621,090 --- 10,912,765 11,533,855 107,356 11,727,693 Head 37 - Ministry of Local Government, Urban Development and Environment The Ministry of Local Government, Urban Development and Environment incurred expenditure totalling $11,630,086 in 2013 against a revised budget of $12,424,292 resulting in saving of $794,206 or 6%.
Details are provided in Table 22.4.
Table 22.4: Appropriation Statement for 2013 SEG Item Established Staff Government Wage Earners Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Budget Estimate ($) 2,648,947 134,737 189,029 301,200 170,505 1,656,222 2,074,652 7,175,292 Changes ($) --- --- --- --- --- --- --- --- Revised Estimate ($) 2,648,947 134,747 189,029 301,200 170,505 1,656,222 2,074,652 7,175,292 Actual Expenditure ($) 2,193,446 132,212 176,141 262,395 156,657 1,642,026 1,917,027 6,479,904 Lapsed Appropriation ($) 455,501 2,525 12,888 38,805 13,848 14,196 157,625 695,388 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ SEG Item 8 9 10 13 Capital Expenditure Capital Construction Capital Purchases Capital Grants and Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE 22.4 Statement of Losses Budget Estimate ($) 1,350,000 300,000 2,710,000 4,360,000 654,000 12,189,292 Changes ($) (50,000) --- 292,500 242,500 (7,500) 23,500 Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) 1,300,000 300,000 3,002,500 4,602,500 646,500 12,424,292 1,260,724 300,000 3,002,500 4,563,224 586,958 11,630,086 39,726 --- --- 39,726 59,542 794,206 There was no loss reported for the Ministry in 2013.
A board of survey for the year ending 31 December 2013 was conducted by the Ministry.

22.5 Trust Fund Account Statement of Receipts and Payments Head 37 - Environment Main Trust Fund Account The Environment Main Trust Fund Account had $2,094,231 credit balance for the year 2013 compared to a credit balance of $1,455,569 in 2012.

Refer Table 22.5 for receipts and payments for the year ended 31/12/13.
Table 22.5: Trust Account Statement of Receipts & Payments for 2013 Description RECEIPTS Ozone Depletion Substance (ODS) Fines Waste and Environment Impact Assessment Environment Trust Convention on International Trade in Endangered Species Total Receipts PAYMENTS Ozone Depletion Substance (ODS) Fines Waste and Environment Impact Assessment Environment Trust Convention on International Trade in Endangered Species Total Payment Net Surplus Balance as at 1 January Less Adjustment Closing Balance as at 31 December 2012 ($) 2011 ($) 506,944 1,977,707 919,198 69,455 3,473,304 37,596 1,802,520 994,526 --- 2,834,642 638,662 1,455,569 --- 2,094,231 650,859 2,435,402 481,128 44,699 3,612,088 753,261 1,120,249 641,597 2,249 2,517,356 1,094,732 360,957 120 1,455,569 Head 37 – City Wide Main Trust Fund Account The City Wide Main Trust Fund under head 23 had a credit balance of $7,269 as at 31 December 2013 compared to a debit balance of $1,065 in 2012.
Refer Table 22.6 for receipts and payments for the year ended 31/12/13.
Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 22.6: Trust Account Statement of Receipts & Payments for 2013 Description RECEIPTS Main Trust Fund Receipts Total Receipts PAYMENTS Main Trust Fund Payments Total Payment Net Surplus Balance as at 1 January Closing Balance as at 31 December 2012 ($) 2011 ($) 243,655 243,655 235,321 235,321 8,334 (1,065) 7,269 235,263 235,263 236,328 236,328 (1,065) --- (1,065) PART B: AUDIT FINDINGS 22.6 Main Trust Fund Account – Unreconciled 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.

Unreconciled items must be investigated and resolved promptly.1 The Department of Environment’s main Trust Fund Account had a balance of $2,094,230.75 in FMIS general ledger while the bank statement had a balance of $2,453,123.97 as at 31/12/13 resulting in a variance of $358,893.22.
The Department did not prepare the main Trust Fund account reconciliation for 2013 and the previous years.

Refer Table 22.7 below for details.

Table 22.7: Variances In Environment Trust Fund Account Balance as per Trust Fund Bank Statement ($) 2,453,123.97 Balance as per Trust Fund Ledger (FMIS) ($) 2,094,230.75 Variance ($) 358,893.22 The Ministry may not be able to detect misappropriation or theft of Trust Fund money if monthly reconciliations are not carried out.
The audit was also not able to ascertain that all receipts and payments had been accurately accounted for in the main Trust Fund account.

Recommendations The Senior Accounts Officer should ensure that:  Trust Fund account bank balance is reconciled with the Trust Fund FMIS ledger balance on a monthly basis; and  Appropriate action is taken against Officers responsible for not reconciling the Trust Fund account with the general ledger.

Management Comment No comment received from the Ministry.
1 Finance Instructions 2010, Section 58(3) Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 22.7 Revolving Fund Account Within 3 days of receiving the monthly general ledger 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.2 The audit verification of the Department of Housing Revolving Funds Account (RFA) reconciliation revealed that two of the RFA accounts had credit balances as at 31/12/13.
Refer Table 22.8 for details.

Table 22.8: RFA Accounts with Credit Balances Account Description 12310123999570301 12310123999560203 Advances – Housing Department Accounts Receivable Individuals – Housing Department Amount ($) 163,694.28 215,731.90 The credit balance in the Revolving Funds Account may have resulted from incorrect journal entries passed to these accounts or through misposting.

Recommendation The Senior Accounts Officer must investigate and rectify the credit balances noted.
Management Comment No comment received from the Ministry.

22.8 Expenditure Ledger not maintained All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger3.

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 reports4.
The special purpose financial statements of the Ministry of Local Government, Urban Development, Housing and Environment for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) maintained by the Ministry of Finance.

The audit noted that the Ministry did not maintain an expenditure ledger as such the Ministry could not reconcile its records against 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 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2011, s16.3.3 3 Finance Instructions 2010. s15 4 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2011, s16.3.3 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendation The Ministry should:   ensure that an expenditure ledger is maintained; and reconcile its expenditure ledger with FMIS general ledger on a monthly basis.
Management Comment No comment received from the Ministry.

22.9 Re-engagement of Senior Technical Officer The Government shall pay the Officer in respect of duration of service on an annual basic salary subject to Fiji Tax Condition of $26,845 in the salary scale of $26,845 - $36,038 in the ST02.5 A Technical Officer (EDP number 17373) with the Ministry retired from the service with effect from 30/04/09.
The Ministry re-engaged the officer on an annual contract as a Senior Technical Officer from 17/01/12 – 16/01/13 and 17/01/13 – 16/01/14.

The audit noted the following anomalies in the officer’s re-engagement.

 The officer’s employment contract dated 01/02/13 only stated the officer’s position.

The Officers employment contract did not state her annual salary and salary grade on her re-engagement.
 The officer was to be paid salary at $26,845 per annum in ST02 grade as per the 2012 employment contract agreement.

However the audit noted that the officer was paid annual salary of $28,425 in LB02 grade which was for the Senior Town Planner.
The Ministry realized that the officer was overpaid on incorrect salary grade and the Acting Deputy Secretary, Senior Accounts Officer and Acting Principal Administrative Officer on 05/07/13 approved to change the salary grade and recover the overpaid salary from the officer.

However, no action was taken by the Ministry to correct her salary grade and recover the overpaid salary.

As at 31/1/14, the officer was overpaid by $3,231.69.
Refer Table 22.9 for the breakdowns below: Table 22.9: Overpayment of Salary Year Actual Pay That Should Had Been Paid (ST02 grade) 26,845.00 26,845.00 1,216.90 2012 2013 2014 Total Overpayment Actual Pay That Was Paid (LB02 grade) 28,425.00 28,425.00 1,288.59 Overpayment ($) 1,580.00 1,580.00 71.69 3,231.69 The officer is no longer employed by the Ministry since expiry of her contract on 16/1/14.

The Ministry neither corrected the officer’s salary scale nor recovered the overpaid salary.
Failure by the Ministry to pay correct salary has resulted in overpayment of salary and loss of public funds.
5 Contract of Service 2012 s8 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Permanent Secretary should ensure that:  all employment contracts are properly reviewed for errors and omissions before being signed by the parties concerned;  all employment contracts state the gross annual salary and salary grade for each officer;  all employees are paid in accordance with the salary stated in the contracts; and  responsible officers are surcharged for not recovering the overpaid salary.
Management Comment No comment received from the Ministry.

22.10 Poor Management of Funds for the 9th Pacific Islands Conference on Nature Conservation and Protected Areas (PICNIC) The 9th Pacific Islands Conference on Nature Conservation and Protected Areas was hosted by the Fiji Government in collaboration with the South Pacific Region Environment Program (SPREP) and the Pacific Island Roundtable (PIRT).
The Cabinet in its meeting on 20/06/12 agreed that Fiji will host the 9th PICNC to be held in November 2013 and funding for the Conference to be sought through the normal budgetary process.

Cabinet again on 24/09/13 approved the request to source additional funding through sponsorship from private and business houses based in Fiji and should there be a shortfall then to vire funds from the Ministry’s 2013 budget allocation.
It was also agreed by Cabinet that if the Ministry require additional funds, the Ministry to revert to Cabinet for its approval.

The audit noted the following anomalies in the organization and financial management of hosting the conference.

 The Cabinet in its meeting on 24/9/13 agreed that if the Ministry requires additional fund, the Ministry to revert to Cabinet for its approval.

The Ministry was allocated $200,000 for hosting the conference in the 2013 budget.
However, from the review of the payment vouchers and the FMIS general ledger posting, the audit noted that the Ministry paid $275,138.12 from the operating budget and $125,455.46 from the Environment Trust Fund Account.

Therefore, total of $400,593.58 was spent against a budget of $200,000 resulting in an over expenditure of $200,593.58 or 100%.

The Ministry did not seek Cabinet approval for additional funds and incurred over expenditure without the Cabinet approval.
 The expenditure related to the conference was posted to several incorrect allocations which made it difficult to establish the total expenditure incurred for hosting the conference.
Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Trust money is to be kept in a separate bank account and accounted for separately from “public money” and “other money”.6 All payments from the trust account shall be adequately supported and made only for the purpose of the trust.7 The Attorney General and Acting Minister for the Ministry of Local Government, Urban Development, Housing and Environment approved the utilization of funds from the Environment Trust Fund Account.
However, as at the date of audit8, the Ministry was yet to refund the funds utilized from the Environment Trust Fund Account.

The above indicates poor planning and management of funds by the Ministry resulting in over expenditure.
Recommendation The Permanent Secretary should:    ensure that funds are properly managed to avoid over expenditure; ensure that expenditures are posted to correct allocations; and ensure to replenish the Environment Trust Fund Accounts; Management Comments The Ministry did not seek Cabinet approval for additional funds which resulted in over expenditure because of the following situation that arose and hurdles that had to be overcome: (a) There were massive changes in services that were to be procured by the Ministry a week before the official opening of the program.
These services were some of the most crucial and important expenditures that were incurred such as catering and decoration and event management.

(b) The Ministry has consulted comprehensively with the relevant Minister and had undertaken every action based on the Minister’s approval and noting since it was the most prudent thing in order to maintain transparency for executing such undue expenses outside the limits set by the cabinet.
(c) The last minute changes in arrangement and procurement of services for the conference was based on a strategic decision looking at the huge number of confirmations for delegates that were received few days prior to the commencement of the conference.

Furthermore a close scrutiny by the special group appointed by the Minister to oversee the organization of the conference observed irregularities with quotations supplied by some vendors.
These irregularities could be explained as in efficiency and capacity to render services for such a large gathering which would have resulted them to further subcontract this service.

The quality of service, hospitality of Fijian hosts and reputation was not to be compromised and therefore some additional unexpected expenses were incurred.

(d) The Ministry took all necessary precautionary measures to avoid undue expenses and even solicited donations from corporate agencies towards the conference.
Their contribution should have offset some over paid expenses by the Ministry.

An amount of $45,000 which was deposited in the Environment Trust Account.

Donations/sponsorships were provided by RC Manubhai ($5K – Rec #373564), Roofing (RPFLO) ($5K – 373565) Jacks Handicraft ($5k - 373566), Reddy’s group of company ($10K - 373574), and FEA ($20k - 373600).

This is not reflected in the report.


(e) It is essentially important to note that most expenses that were off the mark has been as a result of requests made by the ‘events coordinator” that was appointed by Minister’s office.
The company Rosie Tours was chosen after the position was advertised in the Fiji sun and they liaised directly with Minister’s PA and 6 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 s15 7 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 s15.2.3 8 07/02/14 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ reported to the Minister.
A number of expenses were incurred by the company which was initially not planned by the organizing committee of the 9th Conference.

(f) The Ministry wishes to also state that a draft cabinet paper was indeed prepared for additional allocation of $100,000 that was requested from Cabinet and was submitted to the Minister; however the Ministry was not able to get a response on the paper which forced us to explore the use of the Environment Trust Account.
(g) There were refunds expected from some service providers as well which have not been received to date.

Mango Café owe the Ministry an amount of $8,500 and Viti Scaffolding owe us $36,044.45, totaling to an amount of $44,544.45.

(h) A minute to the Minister requesting an event for sponsorship drive to solicit support from private sector towards the conference.

Response was received at a time when the event was deemed inappropriate due to the time limitations.
22.11 Naboro Landfill Design and Construction of Phase 2 The Government Tender Board (GTB) awarded tender No.

CTN 241/2010 to H.G Leach (Fiji) Limited on 26/06/13 for the Naboro Landfill Phase 2 Design and Construction.

The total contract price for the project was $3,155,350 VEP.

The project was to be completed in 56 weeks.

The project works commenced on 01/07/13.

Our review of the project files and the contract documents revealed the following anomalies.
 The Special Conditions of Contract stated that the Ministry will appoint the Engineer and advice at the commencement of the contract.9 Progress payments to the contractor should be made after the Engineers review of the progress of the project, materials used and workmanship.

Upon inspection and before payment is effected a progress report and inspection reports should be prepared by the Engineer.
The Ministry failed to appoint the Engineer for the project despite 90% of the project works completed as at 08/04/14.

Instead the Ministry appointed Environment Officer, Mr. Rahul Dutt to oversee the project implementation.

Mr. Dutt did not have expertise in the project design and construction as he had a Bachelor’s Degree in Environment Studies and was an Environment Officer.
Furthermore, the Ministry made 7 progress payments amounting to $2,848,605.85 (VEP) and these payments were certified by the Ministry’s Environment Officer, Mr. Rahul Dutt.

This indicates that the progress of the construction work was not supervised by appropriate personnel.

There is a high risk that the contractor may not fully comply with project design and specifications.
 Any variation must be approved by the Permanent Secretary or his nominee in their role as Engineer to the contract and will not be liable to pay any cost if variation is made by the contractor.10 The contractor in claim number 4, claimed $27,060 (VEP) for variations in cost.

The payment was approved by the Permanent Secretary even though no prior approval for the variation in works was approved by him.

Refer Table 22.10 for details of the variations.
9 Special Conditions of Contract s6.1.2 10 Conditions of Contract WSC 241/2012 s2.2.5 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 22.10: Details of variations for which prior approval were not obtained Item Reference Number 4.1.5 4.1.6 4.1.7 4.1.8 5.1.3 Total Item being claimed 20T Excavator D6 Dozer 6 Wheel Truck Hydraulic Breaker Groundwater Drainage Amount Claimed ($) 4,560 2,160 6,840 7,500 6,000 27,060  If geomembrane11 is incorporated in the design, the geomembrane material manufacturer shall provide an enforceable written guaranty prior to construction that the geomembrane material will last for a minimum of 5 years design life under Fiji conditions while covered by untreated municipal solid waste.12 The contractor used geomembrane material in the construction of Naboro Landfill Phase 2.
However, the contractor provided a written warranty13 from the manufacturer instead of a guaranty14 as required by the special conditions of contract.

The findings show that the Ministry does not have project management skills and capabilities and does not perceive the importance of having an Engineer to monitor and supervise the construction of the landfill project.
The project may not be carried out up to the standard required by the Ministry in absence of the qualified project Engineer to oversee the work carried out by the Contractor.
Recommendation The Ministry should:    ensure a qualified Engineer is appointed to monitor, supervise and review progress claims for the construction of such projects in future; ensure that contract requirements are strictly met; and ensure the contractor provides an enforceable written guaranty and not the warranty that the geomembrane material will last for a minimum of 5 years design life under Fiji conditions.

Management Comment Environment Officer (Mr. Rahul Dutt) does not certified payments.
The officer is tasked to undertake verifications of amount claimed through assessment of works completed and site inspections to the construction site.

Report on the verifications of amount claimed and release of payments is approved by the PS following vetting by the Acting Director of Environment and Senior Accounts Officer.
The Department of Environment agrees to the recommendations of the Audit report for the appointment of a qualified Engineer to monitor, supervise and review progress claims for design and construction of such projects in the near future.
11 A geomembrane is very low permeability synthetic membrane liner or barrier used with any geotechnical engineering related material so as to control fluid (or gas) migration in a human-made project, structure, or system 12 Special Conditions of Contract WSC 241/2012 s11.5.1 13 A written agreement in which a company selling something promises to repair or replace it if there is a problem within a particular period of time.
14 A written promise given by a Company that something you buy will be replaced or repaired without payment if it goes wrong within a particular period.
Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 22.12 Operation of Naboro Landfill On 22/07/2005, the Ministry of Local Government, Urban Development, Housing and Environment entered into a five year contract agreement with H.G Leache & Company Limited for the operation of Naboro Landfill.
Consequently, the contract was extended for another term with a contract price of $5,834,070 (VIP) and the new current contract agreement will expire on 30/06/15.

Our review of the Naboro Landfill project file and the contract document revealed the following anomalies.
 Under the Special Condition of the contract agreement, the Engineer is the Permanent Secretary or their nominee.15 Progress payments to the contractor should be made after reviewing the progress of the project, materials used and workmanship.

Upon inspection and before payment is effected a progress report and inspection reports should be prepared by the Engineer or a qualified officer having knowledge of the project.

.
.

The Ministry made several progress payments to the contractor based on the progress reports prepared by the Environment Officer, Mr. Rahul Dutt who was the Ministry’s nominee.

However, Mr. Rahul Dutt does not have the required expertise for the operation and management of an active landfill face (the outline of the landfill) and maintenance of existing landfill assets including weighbridge, aerators, access road and building.
This indicates that operation of the landfill has not been evaluated by a qualified person.

The Ministry’s nominee may not be able to detect malpractices by the contractor as he is not a qualified person.

The Ministry of Local Government, Urban Development, Housing and Environment will open a nominated bank account for the specific purpose of receiving deposits of all revenue from the gate office operation.
The contractor shall deposit in the bank account each day all revenue collected from the gate office operation on that day and part of the previous day where applicable.

The contractor will have “enquiry-only” access to the account for the determination of the amount required to top up the balance to meet the Ministry of Local Government, Urban Development, Housing and Environment direct debit or withdrawal requirements each month.
The nominated bank account shall remain open until the contract is complete or is terminated and shall be closed only on the written instruction of the Engineer.16 The Ministry has opened a separate nominated bank account (Environment Trust Fund Account) specifically for receiving deposits of all revenue from the operation of the landfill.

However, the revenues collected as gate fee was not directly deposited on a daily basis into the nominated bank account as required by the contract.
Instead the contractor issued his own receipts and banked all daily collections into its bank account.

At the end of the month the contractor then transfers the cash from its bank account to the nominated Environment Trust Fund Account.

In addition the Ministry does not have any of its officers at the Naboro landfill to supervise gate taking and keep a separate record of all gate taking collected and reconcile on a daily basis.
Hence the Ministry does not have any control over the gate taking revenues collected by the contractor.

In the absence of separate record keeping and reconciliations, the Ministry is not in a position to ascertain the accuracy of the daily gate fees collected by the contractor and deposited into the nominated bank account at month end.
15 Special Conditions of Contract s 6.2.1 16 Conditions of Contract s2.5.1 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Payment to the contractor for its services is made from the gate fees collected and is subsidized by the Government if there is a short fall in the monthly gate fees collection.
As at 31/12/13, the Ministry had subsidized 34.2% of the claims submitted by the contractor.

In addition 26% of the claims submitted as 31/12/13 were yet to be paid as the Ministry did not have sufficient funds to pay the contractor.

This indicates that gate takings are insufficient to meet the contractor’s claims submitted.

Refer Table 22.11 below for details.

Table 22.11: Claims paid to the Contractor from the Trust fund and Subsidy.
Month Claims Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 TOTAL ($) 188,260.48 191,762.30 215,908.47 173,333.92 181,883.50 184,457.21 173,649.78 189,945.27 784,928.59 274,625.68 229,258.94 243,173.74 236,099.67 238,589.90 3,505,877.45 Amount Paid From Environment Trust Fund Account ($) 191,762.30 215,908.47 181,883.50 184,457.21 173,649.78 189,945.27 243,173.74 Subsidy 2013 ($) 188,260.48 175,731.7317 784,928.59 51,000.00 1,380,780.27 1,199,920.80 Balance To Be Paid In 2014 - - - - - - - - - 223,625.68 229,258.94 - 236,099.67 238,589.90 927,574.19  Under the Naboro Landfill Operation Contract dated 01/07/13, between the contractor and the Ministry, the contractor was required to provide the following insurance cover: o Contractor’s plant insurance for each item of construction machinery on the site owned by the contractor that has a market value of more than $50,000;18 o Public liability insurance shall be effected for a minimum amount of $1,000,000;19 and o Motor vehicle third party liability insurance shall be effected for an amount not less than $1,000,00020.
The contractor however did not have the insurance cover for construction machinery on site, public liability insurance and motor vehicle third party insurance in 2013.

The above finding indicates poor monitoring and supervision of the operation of the landfill.

In addition, the Ministry failed to ensure that the contractor comply with the requirements of the contract agreement.
17 Includes underpayment of $2,397.81 18 Naboro Landfill Operation Contract Special Conditions clause 19 19 Naboro Landfill Operation Contract Special Conditions clause 21 20 Naboro Landfill Operation Contract Special Conditions clause 22 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Permanent Secretary should ensure that:  a qualified Engineer is appointed for managing the operation of Naboro Landfill and progress claims are verified by the Engineer before payments are made to the Contractor; the Contractor deposits the daily gate fees into the nominated bank account (Environment Trust Fund Account) and not into its own bank account;   an Officer from the Ministry is based at the gate to keep a separate record of all gate taking  which is to be reconciled with the contractors receipts on a daily basis; and contractor complies with all aspects of the contract agreement and provide insurance cover as required by the contract agreement.
Management Comment The Department of Environment agrees to the following recommendations:  Appointment of a qualified engineer for managing the operation of Naboro Landfill.

 Progress claims are to be verified by a qualified engineer before payments are made to the Contractor.

 Appointment of a Clerical Officer to be based at the Naboro landfill gate to collect and keep a record of gate takings.
 Contractor complies with all aspects of the contract agreement which is to be supervised and monitored by the appointed Engineer.

22.13 Fiji National Faith Based Organization Environment Stewardship Summit The Fiji National Faith Based Organisation Environment Stewardship Summit was scheduled from 2nd – 5th April 2013 at Warwick Fiji Resort and Spa.

The Project Management Unit (PMU) within the Ministry organized the event.
The objective of the summit was for the Ministry through the Department of Environment to assist heads of Faith Based Organization to fully appreciate/understand holistic environmental stewardship.

At the end of the summit, the Ministry hoped to establish an interfaith and Stewardship Action Plan that would serve as framework for Church leaders to preach and strengthen Environment Stewardship within their respective Congregation.
Altogether eleven different faith based organisations in Fiji, Non-Governmental Organizations and private sector personnel participated in the summit.

The PMU also engaged with other Ministries and Organizations to seek financial and in-kind assistance for the summit.

The audit noted the following anomalies in the organization and financial management of hosting the summit.
 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.21 The Ministry was not allocated any funds for hosting the Fiji National Faith Based Organization Environment Stewardship Summit in its 2013 budget.
21 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 Section 2.1.2 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ However the Ministry organized the summit which cost $85,220.

Out of the total cost incurred the Ministry paid $81,220 and the balance was $4,000 was paid by United Nations Development Program.
The Ministry diverted funds totaling $37,687.50 from various allocations while $43,532.50 was sourced from the Environment Trust Fund Account to meet the expenses totaling $81,220 for the summit.

Refer Table 22.12 for details of funds diverted.
Table 22.12: Expenditures Sourced from Different Allocations for the Summit Allocation Description 13730137999071299 National Waste Management Strategy 13730137999071224 National Capacity Need Self-Assessment 13730137999079901 National Implementation Plan of Stockholm Convention 93730137999895011 Environment Trust Fund Total Amount ($) 12,560.00 12,560.00 12,567.50 43,532.50 81,220.00 The Ministry failed to obtain approval from Ministry of Finance to incur expenditure for which funds were not allocated in the budget.
In addition, the funds used from the Environment Trust Fund accounts have not been refunded as at the date of audit22.

 The Fiji National Faith Based Organization Environment Stewardship Summit was held at the Warwick Fiji Resort & Spa.

According to the service agreement signed between the Ministry and Warwick Fiji Resort & Spa the cost of the venue was $75,375 for the Summit.

However, the Ministry paid total sum of $85,220 to Warwick Fiji Resort & Spa resulting in an overpayment of $9,845.
The Ministry neither provided reasons nor details of the overpayment.

Refer Table 22.13 for details of payments made.

Table 22.13: Payments Made to Warwick Resort Date Cheque / EFT Number 31881 26/03/13 03/05/13 000239 Not provided UNDP direct payment Total Amount ($) 37,687.50 43,532.50 4.000 85,220.00 The Ministry did not follow proper procedures for diversion of funds.

As a result unauthorized expenses were incurred for hosting the Fiji National Faith Based Organization Environment Stewardship Summit.
Failure by the Ministry to budget for the event has resulted in diversion of funds from other allocations to meet the expenses for the Summit.

Recommendations The Ministry should:   ensure that diversion of funds from other allocations are avoided; and ensure that appropriate approval is obtained from Ministry of Finance should the need arises to incur any unbudgeted expenditure during the financial year.
22 07/02/14 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Ministry of Finance should investigate the diversion of funds and take appropriate action.

Management Comment The Project Management Unit (PMU) was directed by the Minister then, through the Director of Environment, to take a lead role in the planning and organization of this Minister’s initiative.
As per the objective of the Summit rightly alluded to by the Audit Report, the outcome of the Summit was achieved known as the WARWICK OUTCOME, which articulated the National Faith-Based/Inter-Faith Environment Stewardship Action Plan that was envisioned to have served as a framework for all faith- based/church organizations and their leaders to strengthen environmental stewardship sharing to their respective congregations.
It was the initial strategy of the Summit to achieve the Outcome Action Plan and then for the Minister to formally inform Cabinet on this achievement and further seek approval to take this Initiative down to Divisional level in 2014-2015.

This was NOT achieved, as the Minister resigned – thus the decision of the former Director of Environment to shelve this next phase of the Initiative.
Indeed eleven (11) different faith-based organizations gladly and willingly came forth forward to be part of what they termed as “historic Initiative”, as it was never done before.

The Department, through PMU, did also engage other stakeholders such an UNDP CPAD Programme, IUCN, Pacific Council of Churches and Climate Change Unit of the Foreign Affairs ministry.

They also pledged and contribute to the overall costs of the Summit, as stated.
Comments against Audit Statements (bullet point p.14) b) a) The Director of Environment received Ministerial directive to stage this National Faith-Based Summit for the Department of Environment.

The Minister was duly advised of the financial conformance system and requisite regulatory processes, as this was not a 2013 budgeted item.

It was Minister’s prerogative and directive after been advised by the Director of Environment that he can utilize the Environment Trust Fund.
After full brief to the Minister of the primary purpose of the Trust Fund, he directed that funding of this Ministerial Initiative was to be sourced from the Fund.

The Minister fully understood that this fund is not to be refunded, contradictory to what was stated in the Audit Report.

(para 8 (p.14).

d) c) The initial recommended venue was at the Pearl International at Pacific Harbour, which was later recommended by the Acting PS then, to be moved down to Warwick to suit the occasion.
This was approved by the Minister.

In view of the short time that the Ministry was given to book the venue, a Service Agreement to the stated amount was executed to secure the venue.

Thus the first amount which was paid to secure the venue.

It was also generally agreed between the two parties that any excess, which may arise during the duration of the Summit shall be paid on a user-pay basis, as agreed by both parties before payment.
This was done, as agreed which meant that the total payment as appeared in the Agreement mentioned hereunder ($75,375)) plus the remainder of $9,845 totaling $85,220.00.

e) There were other stakeholders that did pledged and gave funding contributions also for this Initiative.

This was paid to the Ministry.


Concluding Remarks Right from the outset, it was the understanding of the PMU, through the Director of Environment that funding of this Minister’s Initiative was to be fully funded by the Minister’s blessings and approval from the Environment Trust Fund, as he was briefed about and approved.

Thus I am not privy to comment on the internal diversion of funds, as reported by this Audit Report.
Further OAG Comments The Ministry failed to obtain approval from Ministry of Finance to incur unbudgeted expenditure for Fiji National Faith Based Organisation Environment Stewardship Summit.
Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 22.14 Market Shelter for Weekend Vendors The agency administering a grant must enter into a grant agreement with any organisation or person who either receives a one-off grant or on-going grant assistance in excess of $5,000.23 The recipient of the Grant Assistance shall prepare an acquittal report.
The acquittal report shall provide the following information: i.

Details of grant money expended and unexpended; ii.

Grant objectives and targets achieved; and iii.

Financial statement (audited if practicable) for grants of $20,000 or more24.

The Cabinet on 17/12/13 approved the payment of $450,000 capital grant to Suva City Council for the construction of market shelter for weekend vendors.
The audit noted that a grant agreement was not entered into between the Ministry and Suva City Council for the capital grant provided to Suva City Council totalling $450,000.

In addition the Ministry did not obtain the acquittal reports from Suva City Council with details of grant money expended and unexpended and whether the grant fund objectives and targets were achieved.

The Council failed to submit the audited financial statement to the Ministry.
The finding indicates proper procedures for grants were not followed by the Ministry and poor monitoring and supervision by the Ministry on grants given.

There is a high risk that grants funds may not be properly utilised by the recipients.
Recommendations The Permanent Secretary should ensure:  that grant agreement is drawn between the Ministry and the grant recipient before grant funds are released;  proper monitoring and review for release of grant funds;  that all grant recipients receiving more than $20,000 grant submit audited annual accounts; and take appropriate disciplinary against those responsible for releasing grant funds without grant agreement.
 Management Comment Please note this project is controlled by the Ministry of Strategic Planning.

22.15 Environment Management Act Allocation 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.25 23 Finance Instruction 2010 s16(1) 24 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 s3.3.1 25 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 Part 2:Expenditure Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The Senior 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 i. ii.
there is documentation that the goods, services or works has been received iii.

sufficient uncommitted funds are available for payment of the account iv.

the account is not fraudulent and has not been previously paid v. the expenditure account it is charged to is correct.26 The Environment Management Act provides a new framework for national coordination and planning in relation to environmental matters, and provides broad new powers to government agencies to control environmentally harmful activities.
Effective implementation of the Act requires the involvement of a wide range of stakeholders.

The Ministry was allocated $100,000 in its 2013 budget for implementing the Environment Management Act.

The audit noted several instances where the funds from the Environment Management Act allocation were used for procuring goods and services not related to Environment Management Act.

A total sum of $62,086.52 or 62.09% of the budgeted amount was used for other purpose.

Refer Table 22.14 for details.


Table 22.14: Details of Expenditure Date Cheque No.
/ JV Particulars Amount ($) 01/11/13 034383 Payment of Accountable Advance to Deputy Permanent Secretary for purchase of 2,000.00 Gifts that will be presented 05/11/13 034395 Payment of Per Diem allowance to Deputy Secretary to attend the Senior Officials 2,108.59 Bilateral Training Programme in China 12/11/13 08/11/13 034466 For refund of GEP National Portfolio Formulation Exercise Funds 48/11/13 Reversal to charges due to misposting.
Expenditures were hire f or tents and booths 3,582.57 30,000.00 for the 9th Pacific Island Conference for major Conservation and Protected Areas.
15/06/13 Adjustment to misposting – to reduce over expenditure 990 Payment of wages 33726 Purchase of Samsung Galaxy Tablet 34585 Repair to vehicle GN 567 33435 Payment for rubbish collection 15/06/13 30/12/13 05/08/13 27/11/13 01/01/13 Total 7,586.00 3,267.48 1,299.01 6,574.87 5,650.00 62,068.52 The Ministry has not properly used the funds allocated for Environmental Management Act for the purpose it was intended for.

The finding indicates misuse of public funds by the Ministry.
Recommendations The Ministry of Finance should:    investigate why funds allocated for Environmental Management Act were used for other purposes; surcharge those responsible for diverting funds for other purposes; and cease providing further funds in the budget for Environmental Management Act unless the Ministry commits to utilize the funds for the implementation of the Environmental Management Act.
26 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 Section 2.8.4 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Management Comment The utilization of budget for the 9th Conference or any mechanisms to support DOE’s program is justifiable.
The conference encompassed a wide range of environmental, conservation and sustainable agendas which all had environment connotations.

The outcome of the Conference is a Regional strategy on conservation and protected areas which will guide the implementation of environment management programs in countries.

EMA is a tool that will support any strategies on conservation.

Further OAG Comments The funds were specifically allocated for the review and implementation of the Environmental Management Act.
22.16 Journal Vouchers Only the Senior Accountant or Assistant Accountant shall approve journal adjustments.27 Journal vouchers must be numbered in sequential order.

Supporting documents shall be attached to the voucher.28 The Senior Accountant or Assistant Accountant must check that: i. all relevant details are included on the voucher; ii.

balances are adequately supported; iii.


the correct accounts have been debited or credited.29 The audit noted that the Ministry raised several journal vouchers during the year.

However, the journals either did not have supporting documents attached or were not approved by the Senior Accounts Officer.

Refer Table 22.15 for examples of journals raised.
Table 22.15: Examples of Unapproved Journal Vouchers with no Supporting Documents Journal Voucher Date 11/13 11/13 11/13 06/13 07/13 06/13 12/13 08/13 12/13 07/13 11/13 Journal Voucher Reference 32 43 02 17 01 15 55 61 66 01 59 Amount Comments JV not approved JV not approved ($) 15,894.00 16,011.00 23,716.00 No supporting Documents attached 15,078.00 47,642.00 7,586.00 4,806.00 Supporting documents not attached 1,739.13 Supporting documents not attached 1,321.00 Supporting documents not attached 47,642.00 Supporting documents not attached 9,743.00 Supporting documents not attached JV not approved and supporting documents not attached JV not approved and supporting documents not attached JV not approved The finding indicates that proper procedures were not followed when adjustments were made to ledger account balances.
In addition poor control and lack of supervision by Senior Accounts Officer for journals raised and processed exist.
27 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 s16.1.2 28 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 s16.1.3 29 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 s16.1.4 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In absence of supporting documents and unapproved journals there is a high risk of fraudulent adjustments of expenses.
Recommendations The Ministry should:    investigate all unsupported and unapproved journals passed and take appropriate action; take appropriate disciplinary action against SAO for poor supervision and monitoring of journal’s and the adjustments; and strengthened controls over use of journal.

Management Comment Your audit finding is noted and our officers are currently verifying the journals highlighted with supporting documents to be attached for verification.
Our Accounts officers have been reminded to refer journals to SAO for endorsement with supporting documents attached as recommended.
22.17 Discrepancies on Purchase of Goods and Services A local Purchase Order shall be issued when procuring goods, services or works from a business within Fiji, unless a contract or agreement has been entered into.30 The Senior Accountant must not certify a payment as correct unless he/she is satisfied that: it is in accordance with an LPO, indent, contract, invoice or other authorisation; i. ii.

there is documentation that the goods, services and works have been received; iii.
sufficient uncommitted funds are available for payment of the account; iv.
the account is not fraudulent and has not been previously paid; v. the expenditure account it is charged to is correct.31 Immediately after payment has been effected, the Assistant Accountant must stamp “PAID” on all vouchers and supporting documentation to avoid any double payments.32 Review of payment vouchers revealed the following anomalies in purchase of gods and servicers:  Instances were noted where payment vouchers and supporting documents were not stamped ‘PAID”.
Refer Table 22.16 below for examples.
Table 22.16: Payment Vouchers and Supporting Documents Were Not Stamped “PAID” Date 13/02/13 25/01/13 20/02/13 20/02/13 20/02/13 20/02/13 20/02/13 Cheque Number 31093 30838 31242 31239 31250 31246 31245 Payee Particulars Jad International Marine Drive Motors Office Products Government Printery Courts Fiji Limited Vinod Patel UTECH Air tickets for Minister to Nairobi Repair of Vehicle GN 304 Purchase of cupboard Purchase of stationary Purchase of television Purchase of stationary Purchase of stationary Amount ($) 9,784.00 650.90 2,150.00 858.55 1,918.00 660.00 1,480.00 30 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 Section 2.5.1 31 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 Section 2.8.4 32 Ministry of Local Government, Urban Development, Housing and Environment Finance Manual 2013 Section 2.8.9 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date 20/02/13 20/02/13 06/03/13 27/02/13 Cheque Number 31244 31248 31501 31351 Payee Particulars Telecom Fiji Limited Air Pacific Limited Prouds Fiji Limited Davui Printing Limited Payment for printing of Annual Payment of FEA bill Payment for Airfare Purchase of Video camera Corporate Plan documents Amount ($) 1,045.14 782.90 1,499.00 3,300.50  Several instances were also noted where supporting documents such as invoices, purchase orders and delivery dockets were not attached to the payment vouchers.
Refer Table 22.17 for examples.

Table 22.17: Supporting Documents Not Attached to Payment Vouchers Date 19/12/13 Cheque Number 00945 Payee Particulars Sophy.
Bi Payment for Overtime 15/03/13 31693 Jads International Airfare for Minister to travel to Delhi 16/07/13 00138 Fijian Resort & Spa Accommodation for Minister 20/12/13 34746 M.H Suva Purchase for Christmas Decorations 02/12/13 34645 PS/ LGUDHE 06/12/13 34663 PS/ LG 14/06/13 33248 Daltron Allowance payment for 9th Pacific Island Conference Allowance to participants during 9th Pacific Island Conference Purchase of computer 16/01/13 30678 22/02/13 30780 Nasinu Town Council Veera’s Kitchen HART garbage fees Payment for catering Comments Amount ($) 681.37 Supporting documents not attached for overtime hours worked 20,745.00 No supporting documents could be provided to audit as to what the trip was about.
3,876.00 No supporting documents attached as to what the for payment accommodation was about.
Invoice not attached 353.40   Delivery Docket not attached 4,032.00 No documentation that the participants had received the cash 5,494.00 No documentation that the participants had received the cash 2,215.00 Delivery docket and receipt not attached 12,088.80 Receipt, and invoice not attached 1,440.00  No quotations  No invoice  No delivery docket  Request memo from the respective Section not attached 13/12/13 00911 Bondwell Payment for cartridges 1,764.25  Delivery docket not attached 27/5/13 32852 Ministry of Strategic Planning Reimbursement of airfare and periderm 20,221.13 No supporting documents periderm for 31/12/13 997 Vodafone Fiji Vodafone charges 1,765.29 Number.
Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 22 attached payments.
Invoice REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Cheque Number Payee Particulars 13/12/13 31093 Jad International Airfare for Minister Amount ($) Comments INAT0000013245 was not attached 9,784.00 No supporting documents attached for what the trip was about The finding indicates that proper payment procedures were not followed by the Ministry and adequate internal controls do not exist in the purchase and payments system.
The risk of fraud, misappropriation of funds and double payment are high with inadequate internal controls.

Recommendations The Senior Accounts Officer should ensure that:  payment vouchers together with all supporting documents are stamped “PAID”;  adequate supporting documents are attached to the payment vouchers; and  appropriate action is taken against officers responsible for not complying with their finance manual.
Management Comment Your audit finding is noted and our officers have been reminded to ensure all vouchers are stamped “PAID” as required.

In most of the payments highlighted, there were sufficient documents attached to the vouchers that substantiated the payments such as:  Minutes requesting payments with approvals by the Permanent Secretary;  Quotations; and  Memo from Ministry of Strategic Planning requesting reimbursement of p/diem with amount specified and verified by our Ministry.
Please note that no financial transaction can be carried out unless there is a request via a Minute which is approved by the Permanent Secretary with 3 quotes attached which is the basic requirement.
PART C: AUDIT FINDINGS HEAD 23 – DEPARTMENT OF HOUSING SQUATTER UPGRADING PROJECT The Department of Housing administers the provision of housing grants, national housing policy and squatter policy program with specific emphasis on squatter settlements and resettlements of squatters to newly developed subdivision.

22.18 Expired Consultancy Contract with Ian Macallan & Co (Fiji) Ltd 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 Local Government, Urban Development, Housing and Environment Section 22: Page 23 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.33 The Ministry of Local Government, Urban Development, Housing and Environment awarded the contract for consultancy works for Omkar Squatter Upgrading Subdivision Project to Ian Macallan & Co (FIJI) Ltd on 13/9/10 for a total sum of $104,279.01 (VIP).
The contract was effective from 2/6/2010 to 2/9/12 and was subject to renewal by mutual agreement.

Review of the Omkar Squatter Upgrading Subdivision Project files and the consultancy contract documents revealed that the Department failed to renew the consultancy contract upon its expiry on 02/09/12.

As of the date of audit34, the Department continued to engage the consultant for Omkar Squatter Upgrading Project without a valid contract agreement.
The audit further noted that the Department paid total of $49,148.33 to the Consultant for the period 3/9/12 – 31/12/13.

This amount was paid to the Consultant without proper approval from GTB.

The above finding indicates that adequate monitoring and review of the consultancy contracts were not carried out by the Department.

In the absence of a valid contract agreement, it may be difficult to resolve any disputes that may arise between the parties.
Recommendation The Director of Housing should seek advice from Fiji Procurement Office whether to renew the contract for consultancy works with Ian Macallan & Co, (FIJI) Ltd or call for fresh tenders.

Management Comment The Department totally agrees with the audit as the consultancy contract with Ian Macallan & Company was for two years effective from 02/06/10 to 02/06/12 was not renewed with Fiji Procurement Office.
The consultancy contract was not renewed as the Department’s Engineer never reminded the Director to apply for renewal of consultancy contract with Fiji Procurement Office.
Furthermore, the Department of Housing did not have access to the Omkar Squatter Settlement Upgrading Project file as it was taken by Fiji Island Commission against Corruption for investigation on the splitting of the performance bond from November 2011 to 19 June 2014 when the FICAC cleared the case against the department on the splitting of bond.
Lastly the Department of Housing has taken serious note of this anomaly and improve its project filing and information system to ensure that all contracts are renewed on time with the approval of the Fiji Procurement Office.

The Department of Housing will apply for Fiji Procurement Office for the renewal of the Consultancy contract for the Omkar Squatter Upgrading Project and to regularize the payment of $49,148.33 for the work rendered by Ian Macallan Consultancy Limited.
22.19 Administration of Funds for Lagilagi Housing Project The Cabinet in its meeting held on 12/10/10 approved the adoption of a housing partnership programme between the Ministry of Local Government, Urban Development, Housing and Environment, the People’s Community Network (PCN) and the Asian Coalition on Housing Rights (ACHR).
33 Ministry of Local Government, Urban Development and Environment Finance Manual 2013, Part 2 34 13/02/14 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The PCN had obtained a 99 year community lease on a section of the land at Lagilagi (Jittu Estate) for squatter resettlement housing project.
The recipient of the grant assistance shall prepare an acquittal report.

The acquittal report shall provide the following information: i.

Details of grant money expended and unexpended; ii.

Grant objectives and targets achieved; and iii.

Financial statement (audited if practicable) for grants of $20,000 or more35.

The Department provided grants of $642,447.17 to PCN for year 2013.

The audit noted that audited financial statements were not provided by PCN for grants received in 2013.
Refer to the Table 22.18 for details of fund disbursed to PCN as at 31 December 2013.

Table 22.18: Fund Provided to PCN Year Source of Funding Fiji Government City Wide Trust Fund 6,000.00 Total Paid ($) 642,447.17 2013 636,447.17 In the absence of audited financial statements the Department cannot substantiate whether grants were used for the purpose it was given for.
The finding indicates poor monitoring and supervision by the Department on the activities undertaken by PCN in squatter upgrading projects.

There is a high risk that grants maybe be misused.


Recommendations The Director for Housing should ensure that:  proper monitoring and review process is in place to ensure grant funds are utilized for its intended purpose only,  all grant recipients receiving more than $20,000 in grant to submit audited annual accounts; and  appropriate action is taken against grant recipients who have not submitted the audited annual accounts.
Departments Comments The Department of Housing has written to the People Community Network for submission of Audited Financial Statement for the 2013 Government Grant for Lagilagi Housing Project.
The Department of Housing will also improve its project management, supervision and monitoring for the Lagilagi Housing Project through fortnightly meeting with PCN, Contractor Fortec Contractor, Service Engineer; Shiri Singh & Associates, Irwin Alsop Pacific Limited and project manager; AAP I Design and Quantity Surveyor; Quantec Pacific Limited in 2014.
35 Ministry of Local Government, Urban Development and Environment Finance Manual 2013, s3.3.1 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 22.20 Squatter Resettlement Program at Wailekutu The Government Tender Board (GTB) in its meeting held on 01/12/12 awarded the contract number WSC220/2012 to HOPE for total contract sum of $120,372.00 (VIP).
The contract sum comprising of $120,372.00(VIP) was for the construction of 7 low cost houses at Wailekutu Settlement using the Ferro Cement Concept, an alternative building technology introduced by the Department of Housing.

As at the date of audit36 the Ministry paid the contractor total of $75,600 or 63% of the total contract sum.

The review of the project file pertaining to Wailekutu Squatter Settlement noted the following anomalies.
 The construction shall be completed over the contract period of 13 weeks from the commencement date which shall be the date the construction work begins.37 The construction work commenced on 18/10/13 and was expected to be completed by 19/01/14 However, as of the date of audit on 7/3/14 the project was incomplete and the construction works were at early stages.

The Department failed to provide any reason for the delay in the completion of the project.

Refer Figure 22.1 and 22.2 for illustration.


Figure 22.1: Foundation of Houses Figure 22.2: Foundation of Houses  The contractor was to build 7 low cost houses.

During the site inspection, the audit noted that floor work for all 7 houses began and the work had stopped since then.

The houses were to be built on wooden posts.

As at the date of inspection on 19/02/14 only floor joist were fixed to the wooden posts.
In addition there was no sign of construction works progressing as the incomplete flooring works with floor joists were covered with overgrown grass.

This indicated that construction work had been stopped for sometimes.

Refer to Figure 22.3 and 22.4.
Figure 22.3: The grass has overgrown foundation Figure 22.4: The grass has overgrown foundation constructed 36 07/03/14 37 Clause of the Agreement between the Department of Housing and HOPE Construction Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Progress payments to the contractor should be made after reviewing the progress of the project, materials used and the quality of workmanship.
From the site inspection on 19/02/14 the audit estimated that only 5% of works may have been completed by the contractor.

However as at 17/12/13 the Department paid total of $75,600 or 63% of the total contract sum to the contractor which was far much more than the estimated percentage of work completed.

 A penalty of $100 to $500 per day is normally included in the contract agreement should the contractor delay the completion of the project.
Review of the contract agreement signed between the Department of Housing and HOPE for the construction of 7 low cost houses at Wailekutu Settlement village revealed that there was no delay damages clause in the contract agreement.

As a result the Department could not impose penalty for delay in the completion of the projects.

The findings indicate that the contractor has left the project incomplete.

This may have been due to lack of project supervision and reviews by the Department.
It is highly likely that the contractor will not be able to complete the project.
Recommendations The Director Housing should:     investigate why progress payments to the contractor were made in excess of percentage of work completed; surcharge officers responsible for excess payments to the contractor; consider taking legal action against the contractor for not fulfilling its contractual obligation; and ensure that penalty clause is stated in the contract to avoid delays in completing of projects in future.
Management Comment In light if the recommendation had been made by the audit team, the Department of Housing has noted the recommendation and points raised and would like to clarify that the Department scheduled payments in stages for the construction of seven houses to allow for the work to flow smoothly and to be completed within expected timeframe.
Therefore we anticipated three stage payments for the completion of this project namely:    Stage 1: Completion of Foundation, footing bearers and joist; Stage 2: Prefabrication of wall structure, application of ferro-cement to the wall; and Stage 3: Completion of roof structures and finishing.

The first payment was being made as per the contract signed with the contractor amounting to $49,000 or 40% for the first stage of construction.
After completion of 90% f the first stage of work on the site the contractor made application for the release of the second stage of payments to which after careful considerations and assessment as the money would have been used to do off site prefabrication of wall structures, a submission was made through the Permanent Secretary’s office to the Acting Minister for Local Government Urban Development Housing and Environment for approval.
The second stage of payment for $35,000 was released after approval had been obtained from PS and Acting Minister.
Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ After the release of the second payment the contractor had difficulties in progressing with the work as anticipated to which the Department tried to remedy through the various meetings constant follow ups and warning letters to which did not turn out to be fruitful at all A submission was being made to the Permanent Secretary for Local Government Urban Development Housing and Environment to seek legal advice on the case and to terminate the contract with the contractor.
PS directive was for the contractor to build the first house and then another three for the value of the payment being made to the contractor as we wait for the legal advice from SG’s office on the case and advise from the Fiji Procurement Office.

The case had been forwarded to SG’s office and FPO while the Ministry was still assessing for the contractor to complete the first house.

According to FPO they will await SG’s opinion on this case before writing to the Ministry.
After the directive from PS to complete the first house within two weeks the contractor couldn’t comply with the directive.

Therefore a second submission to the SG’s office was made.

There had been two submissions being made for the legal opinion and one submission to FPO on their decision to which the Ministry is still awaiting responses.

The Department of Housing will ensure that penalty clause is inserted into Construction Contract to avoid delay in completion of projects.
\ 22.21 Nativi Income Generating Projects The Department engaged HOPE for total contract sum of $18,212.50 (VIP) for the construction of 2 low cost farm houses at Nativi village in Rakiraki under the Sustainable Income Generating Project.

Review of the project revealed the following anomalies.

 Progress payments to the contractor should be made after reviewing the progress of the project, materials used and workmanship.
The construction of 2 low cost farm houses was supposed to be completed over the period of 30 days after signing the contract.38 The contract agreement was signed on 12/06/13 and works were to be completed by 13/07/13.

However, as of the date of audit39, the project was still incomplete and was delayed by 8 months.

The project progress report dated 17/08/13 revealed that only the foundation of the houses was constructed.
Discussion with the Technical Officer in Charge, Mr. Peni Bakewa revealed that there was no other progress report prepared and the current status of the project was unknown.

The project was estimated by audit to be 5% completed based on the progress report dated 17/08/13.

However the Department paid total of $13,880 or 76% of the total contract sum to the contractor as at 27/08/13 which was far much more than the percentage of work completed.
 A penalty of $100 to $500 per day is normally agreed upon should the contractor delay the completion of the project.

Review of the contract agreement signed between the Department of Housing and HOPE for the construction of 2 low cost farm houses at Nativi village revealed that there was no delay damages clause in the contract agreement.

As result the Department could not impose penalty for delay in the completion of the projects.
38 Agreement between HOPE Construction and Department of Housing – Section 2.1 39 07/03/14 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The findings indicate that adequate project supervision and reviews were not carried out by the Department.

There is a high risk that the contractor will not complete the project.
Recommendations The Director Housing should:    investigate why the progress of the project was not properly monitored and project not completed on time; investigate why progress payments were made in excess of percentage of work completed; and ensure that penalty clause is stated in the contract to avoid delays in completing of projects in future.

Management Comment The Department of Housing agrees with the observation of the audit that project is still incomplete.
However, it refutes the audit team claims that progressive payment to the contractor should be made after reviewing the process of the project material used and workmanship as the Department of Housing was legally bounded to pay 80% of the total contracted sum of $14,570 upon the signing of the service contract.

The Department of Housing did not incorporate any penalty clause in the agreement and will make sure to incorporate the penalty clause in future service contracts.
The Department of Housing also summons the contractor to complete the construction work on 13/02/14 and submitted the revised work program on 14/02/14.

Furthermore, the Department made an immense effort for the contractor to complete the construction works, however he failed to do so despite verbal assurance from him.
22.22 Poor Administration of Grants by National Joint Committee For grants approved over $5,000, a grant agreement must be prepared in accordance with Finance Instruction 16-(1) and signed by the Permanent Secretary or Deputy Permanent Secretary and an authorized representative of the recipient before payment is made40 The National Joint Committee consisted of Permanent Secretary (Chairperson), Peoples Committee Network (PCN) Consultant, Director Peoples Committee Network and Director of Department of Housing.
The City/Town Joint Committee consisted of members of the community.

 The National Joint Committee paid capital grants totaling $116,826.44 to two City/Town Committees in 2012.
Refer Table 22.19 for details: Table 22.19: Details of Grants Paid to City/Town Joint Committees Date EFT41 Number 14/11/12 000007 29/11/12 000009 Payee Particulars Lami Town Joint Committee Lautoka City Joint Committee Payment for Kalekana project upgrading Payment for relocation of coastal squatter settlements to Drasa Total Amount ($) 80,399.00 36,427.44 116,826.44 40 Ministry of Local Government, Urban Development and Environment Finance Manual 2013, Section 3.1.12 41 Electronic Fund Transfer Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ However, grant agreements between the National Joint Committee and the City/Town Joint Committee were not entered into outlining essential particulars, including the purpose of capital grant, duration of the projects and reporting and monitoring processes.
In the absence of the grant agreement between the National Joint Committee and the City/Town Joint Committee, audit could not ascertain whether funds were used for the intended purposes.

 The recipient of the Grant Assistance shall prepare an acquittal report.

The acquittal report shall provide the following information: i.

Details of grant money expended and unexpended; ii.

Grant objectives and targets achieved; and iii.

Financial statement (audited if practicable) for grants of $20,000 or more42.
The audit noted that City/Town Committees failed to provide acquittal reports together with the audited financial statement for the funds received from the National Joint Committee.

In the absence of audited financial statements or proper acquittals report, the Department could not substantiate whether grants were used for the purpose it was given for.

There is a high risk that grants maybe be misused.
Recommendations The Director should ensure:    that a grant agreement is drawn between the Ministry of Local Government, Urban Development, Housing and Environment and the City/Town Joint Committees before grant funds are released; that all grant recipients receiving more than $20,000 grant submit audited annual accounts; to take appropriate action against grant recipients who have not submitted the audited annual accounts; and  acquittals are submitted by the grant recipients with the supporting documents in absence of audited financial statements.
Management Comment Prior to the implementation of the City Wide informal Settlement Upgrading Project, the Department of Housing has prepared a draft Memorandum of Agreement between the Ministry and recipient municipal councils, however, this agreement was not finalized.

The Department of Housing agreed with the audit team that it directly issued the cheques of $80,399 and $36,427.44 to Lami Town Council and Lautoka City Council respectively.
However the details of grant money given and how the grant should be utilized and submission of acquittals financial and physical development report are clearly stipulated in approval letter dated 08/11/12 send to both municipal councils.

The municipal councils were supposed to provide the financial acquittals and physical report of how the grant was utilized.
Lastly the Department of Housing has written to the Lautoka City Council and Lami Town Council for submission of Audited Financial Statement for the 2013 Government Grant for the Navutu Squatter Relocations and Kalekana Sanitary Project respectively.
42 Ministry of Local Government, Urban Development and Environment Finance Manual 2013, Section 3.3.1 Ministry of Local Government, Urban Development, Housing and Environment Section 22: Page 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Section 23 Ministry of Social Welfare, Women and Poverty Alleviation Role and Responsibilities The Ministry of Social Welfare, Women and Poverty Alleviation shall eradicate poverty through providing welfare support to the poor, empowerment of women and gender mainstreaming and coordination of services to the disabled.
The Ministry has four output groups – Ministerial and Corporate Services, Social Welfare Services, Gender Development and Poverty Eradication Unit.
Table of Contents PART A: FINANCIAL STATEMENT ......................................................................................................................................... 2 23.1 Audit Opinion .............................................................................................................................................................. 2 23.2 Statement of Receipts and Expenditures ................................................................................................................... 2 23.3 Appropriation Statement ............................................................................................................................................ 3 23.4 Statement of Losses .................................................................................................................................................. 3 PART B: AUDIT FINDINGS ....................................................................................................................................................... 3 HEAD QUARTERS ....................................................................................................................................................................... 3 23.5 Improper Recruitment ................................................................................................................................................ 3 23.6 Poverty Benefit Scheme ............................................................................................................................................. 4 23.7 Care and Protection Allowance .................................................................................................................................. 8 23.8 Anomalies in Social Pension Scheme ...................................................................................................................... 11 23.9 Anomalies in Grants given to NGO .......................................................................................................................... 13 23.10 Grants Approved in 2013 without Acquittals Submitted in 2012 .............................................................................. 15 23.11 Welfare Graduation Program ................................................................................................................................... 16 23.12 Lack of Monitoring and Evaluation in Women’s Projects ......................................................................................... 17 23.13 Accountable Advance Not Cleared on Time ............................................................................................................ 18 23.14 Other Anomalies in Payments .................................................................................................................................. 19 23.15 Aid in Kind ................................................................................................................................................................ 20 23.16 Family Assistance Scheme/Allowance ..................................................................................................................... 21 WESTERN DIVISION ................................................................................................................................................................. 23 23.17 Anomalies in Poverty Benefit Scheme (PBS) .......................................................................................................... 23 23.18 Anomalies in Poverty Benefit Scheme (PBS) .......................................................................................................... 24 APPENDICES ............................................................................................................................................................................. 25 Appendix 23.1: Accountable Advance Not Cleared On Time ............................................................................................. 25 Appendix 23.2: Recipients With Same Reference Numbers .............................................................................................. 28 Appendix 23.3: Recipients With Only One Name ............................................................................................................... 30 Appendix 23.4: Recipients With Two Bank Accounts ......................................................................................................... 31 Appendix 23.5: Sigatoka PBS Case Files – Missing Supporting Documents ..................................................................... 32 Appendix 23.6: Nadi PBS Case Files – Missing Supporting Documents ........................................................................... 33 Appendix 23.7: Lautoka PBS Case Files – Missing Supporting Documents ...................................................................... 34 Appendix 23.8: Ba PBS Case Files – Missing Supporting Documents .............................................................................. 35 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ PART A: FINANCIAL STATEMENT 23.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Social Welfare, Women and Poverty Alleviation resulted in the issue of an unqualified audit report.
23.2 Statement of Receipts and Expenditures The Ministry collected revenue amounting to $7,420 and incurred a total expenditure of $29,837,483 in 2013.

Details are provided in table 23.1 below.
Table 23.1: Statement of Receipts and Expenditures for 2013 Description RECEIPTS State Revenue Rental for Official Quarters Commission Total State Revenue Agency Revenue Miscellaneous Revenue TOTAL REVENUE EXPENDITURES Operating Expenditure 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 ($) 2012 ($) 1,949 1,949 5,471 7,420 - 10,192 10,192 25,225 35,417 2,901,265 493,431 179,218 486,847 479,576 24,050,035 247,618 28,837,990 149,492 - 629,355 778,847 220,646 29,837,483 2,578,171 369,506 148,760 377,491 443,147 22,662,222 403,999 26,983,296 226,830 148,364 404,025 779,219 218,973 27,981,488 The Ministry’s revenue decreased by $27,997 or 79.1% in 2013 compared to 2012 due to decline in Commission and Miscellaneous Revenue.
Total expenditure increased by $1,855,995 or 6.6% in 2013 compared to 2012 due to the introduction and implementation of New Food Voucher programs and the construction of the Labasa FNCDP building Complex.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 23.3 Appropriation Statement The Ministry of Social Welfare, Women and Poverty Alleviation incurred expenditure totalling $29,837,483 in 2013 against the budget of $32,859,609 resulting in savings of $3,022,126 or 9.2%.

Details are provided in table 23.2.
Table 23.2: Appropriation Statement for 2013 SEG Item Budget Estimate Changes Revised Estimate Actual Expenditure Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Services Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Capital Construction Capital Grants and Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE ($) 2,919,980 372,104 163,700 372,276 594,800 33,080,000 582,000 38,084,860 150,000 700,000 850,000 226,900 39,161,760 ($) (103,280) 124,786 34,000 133,330 (44,030) (6,410,980) (17,391) (6,283,565) 5,391 (43,747) (38,356) 19,770 (6,302,151) ($) 2,816,700 496,890 197,700 505,606 550,770 26,669,020 564,609 31,801,295 155,391 656,253 811,644 246,670 32,859,609 ($) 2,901,265 493,431 179,218 486,847 479,576 24,050,035 247,618 28,837,990 149,492 629,355 778,847 220,646 29,837,483 Carry – Over ($) --- --- --- --- --- --- --- --- --- --- --- --- --- Lapsed Appropriation ($) (84,565) 3,459 18,482 18,759 71,194 2,618,985 316,991 2,963,305 5,899 26,898 32,797 26,024 3,022,126 23.4 Statement of Losses The Board of Survey for 2013 was carried out for all the sections of the Ministry.
The report was in the process of being finalised as at the balance date.

The Ministry reported embezzlement of funds totalling $14,577 in 2013.
PART B: AUDIT FINDINGS HEAD QUARTERS 23.5 Improper Recruitment Employment decisions in the public service are made without patronage, favoritism or political influence, and appointments and promotions are made on the basis of merit after an open, competitive selection process.1  In 2013 the Ministry had two vacant positions for Senior Women Interest Officer – Convention on the Elimination of all forms of Discrimination against Women (CEDAW) and Senior Women Interest Officer – Research and Policy.
The Ministry engaged two of the National Employment Centre (NEC) Volunteers namely, Ms. Aradhana Sharma and Ms. Timaleti Kalou from 06/02/13 to 05/05/13 and 25/03/13 to 24/06/13 respectively for the Senior Women Interest Officers posts.
Both officers were paid $30 weekly 1 Public Service Act 1999, Part 2 Section 4(2) Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ allowance by the Ministry.

The Officers did not have any work experience and lacked the required skills for the Senior Women Interest Officers posts.
However the Ministry appointed Ms. Timaleti Kalou to act as the Senior Women’s Interest Officer CEDAW with full acting allowance until the position was filled by another officer on promotion in 2014.

 The Ministry later advertised the Senior Women Interest Officer – Research and Policy (vacancy 262/2013) in FPSOC 07/2013 on 15/04/13 which closed on 30/04/13.

Ms. Aradhana Sharma was appointed to the position on 21/6/13.
However during the interview the Ministry awarded Ms. Aradhana Sharma with 30 points for the Annual Performance Assessment.

As at the date of audit2 the Ministry was yet to provide the annual performance assessment for our review.

As a result the audit could not substantiate the points awarded to Ms. Aradhana Sharma as she had only 4 months of experience on the job.

 Ms Timaleti Kalou’s engagement as a volunteer came to an end on 24/06/13 with the Ministry.
However, the Ministry re-engaged Ms. Timaleti Kalou as a temporary Relieving Senior Women Interest Officer – (CEDAW) for three months from 18/06/13 to 17/09/13 and later extended her term for another 3 months from 18/09/13 to 17/12/13.

The audit could not ascertain as to why the Ministry did not consider other Officers who were already Women Interest Officer despite having the experience and the knowledge to act on the above position.
The findings reveal that there was clear indication of lack of human resource management skills at the Ministry.

Recommendations The Ministry should ensure that:  NEC Volunteers are not appointed on senior positions;  appropriate actions are taken against responsible Officers;  all documents are properly maintained; and  positions are advertised and recruitment are done in a timely manner and based on merit.

Ministry’s Comments No comments received from the Ministry.
23.6 Poverty Benefit Scheme The Poverty Benefit Scheme (PBS) started in 2013 to replace the Family Assistance Scheme (FAS) as approved in Cabinet decision CP (12) 326.

The FAS was an individual benefit.

The Ministry used the criteria for eligibility based on a means-test for FAS.

However it was often difficult to determine the actual household income and expenditure under FAS.
2 16/04/13 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The PBS is a household benefit.

Eligibility for the PBS is based on a poverty score.

This eligibility assessment methodology does not require actual income and expenditure information.
The assessment for eligibility is based on:  The people who live in the household;  Where they live in Fiji;  The type of dwelling they live in; and  The assets they own.

23.6.1 `PBS Allocation Utilised for Other Allowances All payments made must be accurately charged to its correct ledger account.3 The Ministry was allocated $22,660,000 for PBS, $3,240,000 for Social Pension Allowances and $5,990,000 for Care and Protection Allowances in its 2013 budget.
The audit noted that the Ministry used only $1,770,702 from Social Pension Allowances and $1,208,923 from Care and Protection Allowances.

As at 31/12/13 the Ministry had savings of $1,469,298 or 45.4%, Social Pension Allowance and $4,781,077 or 79.8% in Care and Protection Allowance allocations.
Despite having funds available in the Social Pension Allowance and Care and Protection Allowance allocations the Ministry used funds from PBS allocation to pay for Social Pension Allowance and Care and Protection Allowance.

The audit further noted that the Ministry was not able to provide the total amount used from the PBS allocation to pay for Social Pension Allowance and Care and Protection Allowance in 2013.
The finding shows that PBS funds were not fully used for the purpose it was allocated for in the budget.

In addition the Ministry failed to provide Social Pension Allowance and Care and Protection Allowance despite having funds available.
Recommendations The Ministry should ensure that:   funds are used for the purpose it has been allocated for in the budget; and investigate why funds from Social Pension Allowance and Care and Protection Allowance allocation were not used to provide social benefit to the people and take appropriate action.

Ministry’s Comments No comments received from the Ministry.
23.6.2 Lack of Supporting Documents in the Case Files A case file (hard copy) must be opened with the name of the applicant, case number in system, address and contact written on it.

All documents provided by the applicant must be kept in the case file.
Birth certificates of all members are to be maintained in the file.4 3 Finance Instructions 2010, Section 14 (1) 4 Poverty Benefit Scheme Procedures Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In assessing recipients, the assessment of their assets should not be more than $1,400.

If the applicant’s total assets exceed $1,400, it becomes a special case.
Appropriate justification must be maintained in the file including relevant photos for approval granted for special cases.

The audit reviewed several PBS recipients’ case files and noted that appropriate and sufficient details were not obtained and maintained in the case files.

Refer to table 23.3 for details.
Table 23.3: PBS Recipients with Lack of Supporting Documents in the Files Name Reference Number Monthly Allowance ($) Anomalies Sebastiano Kaunisela SUV/PBS/005/13 Saliman Bibi SUV/PBS/011/13 120  No PBS application form in the case file – hence no evidence of assessment, recommendation, and approval;  No photos taken as it was a special case;  No documentation in the file to indicate that a field visit was done;  No evidence of approval given by the panel who approves special cases;  No bank account details in the file.
120  Only the recipient’s birth certificate was in the file.

Birth certificates for others living with the recipient were not in the file.

 No PBS application form in the file – hence no evidence of assessment, recommendation, and approval;  No photos taken as it was a special case;  No documentation in the file to indicate that a field visit was done.
Sarojami SUV/PBS/001/13 120  A different recipient, known as Lowani Divavesi’s Viliame Suka SUV/PBS/017/13 Ranadi Mere Vakaloloma SUV/PBS/012/13 Timoci Ucuvakaloa SUV/PBS/014/13 Richard Lal PBS/SUV/013/13 information was in this file;  No details about the recipient (Sarojami) in the file.
180  Except for the PBS survey form, no other documentation were in the file such as recipient’s birth certificate, bank statement, TIN letter, PBS filled application form, Birth certificates of other members in the household receiving allowance, passport sized photo of recipients, pictures on status of recipient, health, house condition, case write up for assessment of the recipient.

Incorrect passport sized photo was attached in the file.
The photo attached was of Ms. Esther Miriam Ella Mocevakaca whilst the recipient was Ranadi Mere Vakaloloma; 60   No PBS application form in the file – hence no evidence of assessment, recommendation, and approval; and  No details about how many members in the family.
60  No PBS application form in the file – hence no evidence of assessment, recommendation, and approval;  No details about how many members in the family;  No evidence of approval given by the panel who approves special cases;  No bank statement in the file to show bank account details.
30  No PBS application form in the file – hence no evidence of assessment, recommendation, and approval;  No evidence of approval given by the panel who approves special cases;  No bank statement in the file to show bank account Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name Reference Number Monthly Allowance ($) Josese Jiko Salote PBS/SUV/015/13 90  Anomalies details.
Incorrect application form (Family Assistance Review) used and not the PBS application form;  No Senior Welfare Officer’s decision in the form;  No bank statement in the file to show bank account details.

The lack of supporting documents in the file indicates poor work performance and laxity in regular supervision by senior officers.

This may result in favouritism and ineligible persons provided with government assistance.
Recommendations The Ministry should:   review these files and take appropriate action against officers responsible for poor work performance; and ensure that appropriate action is taken to update the files with appropriate information.

Ministry’s Comments No comment received from the Ministry.

23.6.3 Files Not Provided for Audit A case file (hard copy) must be opened with the name of the applicant, case number in system, address and contact written on it.
All documents provided by the applicant must be kept in the case file.

Birth certificates of all members are to be maintained in the file.5 The audit was not provided certain PBS recipient files it requested for review as the Ministry could not locate the files.

These files included some recipients that were approved in December 2013 but were to be paid in 2014.

The new recipients’ monthly allowances were not entered into the PBS recipients register in 2014.
Refer to table 23.4 for examples of files not provided for audit review.
Table 23.4: Poverty Benefit Scheme Recipient Files Not Provided to Audit Reference Number Names SUV/PBS/676 Josaia Ului Ledua Josefa Bayameyame SUV/PBS/007/13 SUV/PBS/010/13 Mohammed Saheed SUV/PBS/006/13 SUV/PBS/009/13 Nalini Devi SUV/PBS/016/13 Tawake Duri Bogiva Tulia Kaisau Monthly Allowance ($) 120 120 120 Unknown Unknown Unknown Yearly Allowance ($) 1,440 1,440 1,440 Unknown Unknown Unknown The finding shows that PBS recipient files were not properly maintained.
There is also a risk of fictitious recipients of government assistance.
5 Poverty Benefit Scheme Procedures Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Ministry should:    investigate the missing files and take appropriate action; ensure that PBS recipient’s files are properly maintained; and investigate and take appropriate disciplinary action against Officers responsible for not perfroming their task deligently.
Ministry’s Comments No comment received from the Ministry.

23.7 Care and Protection Allowance The Care and Protection allowance is an assistance given by Government especially to assist underprivileged children so that they can be given the proper care and protection.

It is paid to the care giver on monthly basis through electronic banking or vouchers for those areas that do not have access to banking facilities.

The minimum amount that could be paid for Care and Protection allowance is $30 per month.
The maximum amount of Care and Protection allowance provided can be $110 per month, regardless of the number of children.

Care and Protection allowance assistance can be given to underprivileged children below 18 years old, however, 5 years is the maximum time a recipient can be assisted from the date of approval, and after that cases will be reviewed to determine continuing eligibility.
The audit noted the following anomalies when verifying the case files for recipients of Care and Protection allowances: 23.7.1 Missing files The audit requested for Care and Protection allowance recipient files.

Out of the total 15 files requested 12 recipients’ files could not be found.

Refer to Table 23.5 below for details of the files not found.
Table 23.5: Care and Protection Allowance Recipient Missing Case Files Reference Name 101_0000947 101_0003198 101_0008374 101-0002630 101-0008648 103_0008824 101_0000731 101_0000940 101_0000962 101_0002430 101_0002852 101_0004279 Laisa Sokolomani Maraia Tauluva Atueta Navunicagilaba Litiana Matalau Maata Veita Qionivok Karalaini Baleira Arieta Fane Shalini Petero Vici Allison Yvonne Ashni Lata Monthly Amount ($) 220 220 120 220 170 200 110 110 110 110 110 110 Yearly Amount ($) 2,640 2,640 1,440 2,640 2,040 2,400 1,320 1,320 1,320 1,320 1,320 1,320 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ The lack of proper filing indicates Officers responsible were not performing their tasks properly and lack of supervision by Senior Officers.
This may result in fictitious recipients of Care and Protection allowances.

Recommendation The Ministry should ensure that all recipients’ files are maintained properly.

Ministry’s Comments No comment received from the Ministry.
23.7.2 Lack of supporting Documents in Recipient Files All documents relating to the recipient’s application, assessment, and approval must be filed in the recipient’s respective case files.6 The audit noted that appropriate and sufficient supporting documents were not always available in the recipients’ case files.

Refer to table 23.6 for examples.


Table 23.6: Lack of Supporting Documents in Recipient Files Name Reference Number Laisa Taukei Ravouvou 101_0007886 Monthly Allowance ($) 240 Kaliova Naivalu 104_0007580 120 Anomalies  The Care and Protection application form was filled on 10/01/12.

The application form did not have the Ministry’s’ recommendation and approval;  Approval date was not stated in the file.
The approval date was to be stated in the file (front cover);  No details about the recipient available in the file;  Children must be attending schools.

There were no letters from schools to prove that the child was attending school during the year;  There was no documentation in the file to prove that there is no source of income, child maintenance or pension received by the recipient.

 No details about the recipient available in the file;  Children must be attending schools.
There were no letters from schools to prove that the child was attending school during the year;  There was no documentation in the file to prove that there is no source of income, child maintenance or pension received by the recipient;  The type of assistance provided was not specified in the file i.e.
whether the assistance was for single mothers, deserted spouses, widows, prisoner’s foster parents (guardians), Children dependent, under the care of the state;  There was review carried on the recipient’s change in status in 2013.
6 Care and Protection Allowance Procedures Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name Reference Number Ana Sovaia Lagi 104_0002775 Monthly Allowance ($) 130 Anomalies  The Care and Protection application form was filled on 10/01/12.

The application form did not have the Ministry’s recommendation and approval;  Children must be attending schools.
There were no letters from schools to prove that the child was attending school during the year;  There was no documentation in the file to prove that there is no source of income, child maintenance or pension received by the recipient;  There was no documentation that the family was living in destitution or on the verge of destitution;  The type of assistance provided was not specified in the file.

i.e.
i.e.

whether the assistance was for single mothers, deserted spouses, widows, prisoner’s dependent, foster parents (guardians), Children under the care of the state.

The lack of proper documentation indicates Officers responsible are not performing their tasks properly and lack of supervision by Senior Officers.

This may result in fictitious recipients of Care and Protection allowances.
Recommendations The Ministry should ensure that:  Officers responsible perform their task properly;  Supervising Officers review the files properly;  all the necessary documents are properly maintained in the case files; and  investigate and take appropriate disciplinary actions against Officers responsible for not perfroming their task diligently.

Ministry’s Comments No comment received from the Ministry.
23.7.3 Payments Made to Over-Aged Recipients at Dilkusha Home Care and Protection allowance assistance can be given to underprivileged children below 18 years old, however, 5 years is the maximum time a recipient can be assisted from the date of approval, and after that cases will be reviewed to determine continuing eligibility.

The audit noted that the Ministry paid care and protection allowance to children at Dilkusha Home who were above the eligibility age of 18 years.

Refer to Table 23.7 for examples.
Table 23.7: Payments Made to Recipients Above 18 Years Date 11/12/13 11/12/13 11/12/13 Cheque Number 55318 55318 55318 Recipients Name Romeena Devi Payal Priti Sonia Priyanka Age 21 19 18 Amount ($) 100.00 100.00 100.00 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date 11/12/13 20/08/13 Cheque Number 55318 52880 Recipients Name Faith Nazreen Payal Priti Age 18 18 Amount ($) 100.00 100.00 The finding shows that the Ministry does not review the case files regularly for chlidrens reaching the age of 18 years when they become inelligable for Care and Protection allowances.
As a result allowances were paid to childrens who were above 18 years of age.
Recommendations The Ministry should:  review the receipients regulary and consider the change in the status of the receipients including age;  have an electronic database on Microsoft Excel for all Care and Protection allowance receipients which would enable easy analysis such as determining all receipients above 18 years of age on a monthly basis; and investigate and take appropriate disciplinary action against Officers responsible for not perfroming their task diligently.
 Ministry’s Comments No comment received from the Ministry.

23.8 Anomalies in Social Pension Scheme Social Pension Scheme is one of the major government assistance that is available for the elderly.

The Ministry was allocated a total of $3,240,000 for Social Pension Scheme in the 2013 budget.

Out of this, the Ministry used only $1,770,702 or 54.7% in 2013 to pay Social Pension Scheme recipients.
Social Pension Scheme is for elderly persons who are seventy (70) years and above and have no source of income and are not the beneficiaries of superannuation payments such as FNPF Pension Scheme, Ex-Serviceman or After Care Funds, Government or Insurance.
Likewise, recipients of social welfare assistance such as the Care & Protection Allowance and Poverty Benefits Scheme will not be eligible for this assistance.7 There are four divisions that look after the Social Pension Scheme and each have their own record regarding the recipient’s details.
The review of Social Pension Scheme revealed the following anomalies:  The Ministry must carry out timely reviews and effectively monitor the process regarding the status of the recipients of the Social Pension Scheme to ensure that allowance is paid to the deserving people only.

The Ministry did not have any monitoring process in place to effectively monitor the status of recipients to ensure that government assistance was provided to the most deserving people.
As a result, the Welfare Officers were not aware about the status of the recipient such as whether they are still alive or their financial status has improved.
7 Social Pension Scheme Procedures, Paragraph 1.3 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  The Ministry must maintain individual recipient’s files separately and ensure proper filing of every inward and outward correspondence.

The Ministry failed to maintain proper and separate files for the individual recipient of Social Pension Scheme.
The documentation for Social Pension Scheme for all recipients were kept in a batch and placed in the cabinet.

The individual recipients did not have separate files for record keeping.

 The Social Pension Scheme application form must be filled by the recipient and the Senior Welfare Officer must provide his/her recommendations to Director Social Welfare whether to approve or disapprove the social pension.
The Senior Welfare Officers on several instances failed to provide his/her recommendations in the application form.

However the applications were approved by the Director Social Welfare, Mr. Rupeni Fatiaki without the recommendations and Accounts Section of the Ministry made payments to the beneficiaries.
Refer to Table 23.8 for details Table 23.8: List of Recipients without Senior Welfare Officers Recommendation Reference Number Name Amount ($) Ka/SPS/32/13 Avisalome Uluivutia Su/SPS/353/13 Angus G Joy Su/SPS/526/13 Banjrati Su/SPS/54/13 Gyan Wati Su/SPS/544/13 Kesaia Lewaciri Su/SPS/216/13 Lemeki Beredavui Su/SPS/536/13 Raghubar Mangal Su/SPS/288/13 Rota Saukadavi Su/SPS/493/13 Maraia V Tabaki Su/SPS/495/13 Su/SPS/358/13 Karalaini Bucece Su/SPS/356/13 Ou Wai Fun Su/SPS/217/13 Filise Cama Su/SPS/264/13 Total Joseva Lasea Jone Rabune 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 30.00 420.00  One of the requirements of the Ministry is to ensure that necessary documents such as birth certificates and passport size photos are certified correct by a Justice of Peace or District Officers or the Head of Clan for those who domicile in remote areas.
However on several instances the applicant’s passport size photos and copies of birth certificates were not certified correct by the authorized officer.

Hence the applications were processed without verifying the authenticity of the photos or the birth certificates.

Refer to Table 23.9 for examples.
Table 23.9: Supporting Documents Not Certified Correct Date Applied 06/05/13 11/02/13 31/01/13 Reference Number Name Su/SPS/493/13 Maraia V Tabaki Su/SPS/288/13 Rota Saukadavi Su/SPS/216/13 Lemeki Beredavui Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Applied 19/02/13 28/05/13 24/01/13 18/02/13 Name Reference Number Su/SPS/353/13 Su/SPS/32/13 Su/SPS/157/13 Su/SPS/356/13 Ou Wai Fun Angus G Joy Avisalome Uluivutia Tirotume E Pau’u The findings show that the Officers responsible for receiving the applications, reviewing for completeness and accuracy, making recommendations and approving did not perform their tasks properly.
Hence proper procedures were not always followed in processing the application for payment of Social Pension.

This may result in fraudulent payment of Social Pension.

Recommendations The Ministry should ensure:    recommendations and approvals/disapprovals for each applicant is stated in the application forms; individual recipient of social pension have separate files for record keeping; and supporting documents are certified correct by authorised persons.
Ministry’s Comments No comment received from the Ministry.

23.9 Anomalies in Grants given to NGO Acquittal reports must be prepared by the recipient of the grant and submitted to the agency that paid the grant.8 The recipient shall prepare an acquittal report.
The acquittal report shall provide the following information:  details of grant money expended and unexpended,  grants objectives and targets achieved,  financial statement (audited if practicable) for grants of $20,000 or more.9 Our review of the grants provided by the Ministry revealed the following anomalies:  The Ministry paid quarterly grants of $25,000 to Global Compassion totalling $100,000 for the year 2013.
Global Compassion did not submit audited financial statements to the Ministry for the grant funds received from the Ministry.

The Ministry did not take any action for non-submission of audited financial statements.

Global Compassion submitted acquittal reports for 1st and 2nd quarter to the Ministry with supporting documents attached.

However the acquittal report for 3rd quarter grants to the Ministry did not have supporting documents.
Hence the audit could not substantiate the expenses in the 8 Finance Instructions 2010, Part 3 16 (8) 9 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual, Section 3.1.17 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ acquittal report.

The Ministry did not follow up with Global Compassion to submit supporting documents for 3rd quarter grants.
In addition the acquittals and the supporting documents for 4th quarter grant were not received from Global Compassion.

The Ministry again did not take any action for non-submission of acquittals and the supporting documents for 4th quarter.

 A grant of $15,000 was given to the Methodist Church for Dilkusha Home.

The grant was disbursed to the Methodist Church in two instalments of $7,500 each.
The Methodist Church provided the acquittals and the supporting documents for the first grant instalment of $7,500.

However the supporting documents were loose and it was difficult to substantiate whether the acquittals were provided for full $7,500.

In addition, the Ministry disbursed the second grant instalment of $7,500 to Methodist Church even though the supporting documents for first grant of $7,500 were not properly verified.
 A grant of $10,000 was given to Fiji Vocational and Technical Training Centre for 2013.

The grant was disbursed in two instalments of $5,000 each.

However the acquittal report and supporting documents were submitted to the Ministry for the second half yearly grant of $5,000 only.

The Centre did not submit acquittal report or supporting documents for the first half yearly grant of $5,000.
The Ministry did not follow up with Fiji Vocational and Technical Training Centre on the acquittals report and supporting documents for the first half yearly grant.

In addition despite no acquittal report and supporting documents provided by the Centre the Ministry provided second half yearly grant of $5,000.

 A grant of $10,000 was given to the Fiji Crippled Children’s Society in 2013.
The Fiji Crippled Children’s Society did not submit the acquittal report and the supporting documents for the grant they received.

In addition the Grant Agreement signed between the Fiji Crippled Children’s Society and the Ministry was not dated.

 Total grant of $15,000 was provided to Saint Christopher’s Home in 2013.

The grant was paid half yearly amounting $7,500 each.

The grant agreement between Saint Christopher’s Home and the Ministry was not dated.
In addition the acquittal and supporting documents for first half yearly grant of $7,500 was not received by the Ministry from Saint Christopher’s Home.

For the second half only the acquittal report for the grant amount of $7,500 was submitted and no supporting documents was provided.

The Ministry did not follow up for the supporting documents for second half yearly grant.
The findings indicate that the Ministry was not vigilant in reviewing the acquittal reports and following up with grant recipients which did not submit acquittals or supporting documents.

In the absence of adequate supporting documents the audit was not able to establish whether the grant funds were properly utilised by the grant recipients.

In addition there is risk of misuse or misappropriation of grant funds.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Ministry should:     ensure that acquittals received from the recipients have adequate supporting documents to clearly indicate how the funds were used; review the acquittals and the supporting documents to ensure grants funds are properly used; ensure that organisations receiving more than $20,000 grants submit audited financial statements; and cease to provide further grants to organisations that fail to submit proper acquittals with supporting documents.
Ministry’s Comments No comment received from the Ministry.

23.10 Grants Approved in 2013 without Acquittals Submitted in 2012 Acquittal reports must be obtained before the next monthly or quarterly grants are paid out.10 The audit noted that although some NGO’s did not fully submit their acquittals for the grant given in 2012 they were still given grants by the Ministry in 2013.

For example the Methodist Veilomani Boys Home was provided total grant of $15,000 in 2012.
The Home did not provide acquittals and supporting documents for the grants amounting to $7,500 received in 2012.

Even though the acquittals and supporting documents for $7,500 were not provided the Ministry continued to provide further grant of $12,500 in 2013.

The Ministry did not take any follow up action on the outstanding acquittals.

In another instance, Saint Christopher’s Home was provided with grants totaling $15,000 in 2012.
Out of this amount, the Saint Christopher’s Home did not provide acquittals for $7,500.

The Ministry did not follow up on the outstanding acquittals but provided grants totaling $15,000 in 2013.

This indicates that the Ministry did not follow proper procedures when providing grants to NGO’s.

It is highly likely that government grants may not be used for the purposes it was given for.
Recommendations The Ministry should:    investigate and take appropriate disciplinary actions against Officers responsible for not following up with acquittals and approving further grants without verifying how the funds was used in previous years; ensure that proper acquittals are submitted by the grant recipient’s before providing further grants; and review the acquittals submitted to ensure grants were properly used and accounted for by the recipients.
10 Finance Instructions 2010, Part 3 Section 16.8 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Ministry’s Comments No comment received from the Ministry.

23.11 Welfare Graduation Program The Welfare Graduation Program followed a cabinet decision11 on the subject of graduating recipients of Care and Protection Allowances after 5 years of being under state assistance.
The Ministry engaged Department of Prisons and Correctional Services through the Fiji Prisons Services, and National Center for Small and Micro Enterprises Development (NCSMED) for the Welfare Graduation Program.
23.11.1 Department of Prisons and Correctional Services The Cabinet12 endorsed the deployment of $100,000 annually from the Poverty Alleviation Program budget provision to the Department of Prisons and Correctional Services for the rehabilitation of ex- offenders under the existing Yellow Ribbon initiative.

In 2013, annual grant of $100,000 was provided to the Department of Prisons and Correctional Services on a quarterly basis.
The audit noted the following discrepancies:  Acquittal reports with supporting documents must be obtained before the next monthly or quarterly grants are paid out.13 The Department of Prisons and Correctional Services submitted 3rd quarter and 4th quarter acquittals to the Ministry together on 28/02/14.

However the Ministry disbursed the 4th quarter grant on 05/12/13 before receiving the acquittals for the 3rd quarter.
 The administering agency must ensure that each grant has been used only for the purpose for which it was provided.

There was no report provided by the Ministry to substantiate that it has verified that the grant was utilised for the purpose it was given for to the Department of Prisons and Correctional Services.
 A standardised monitoring template for submission of acquittals and Overall Quarterly Reporting is given to the grant recipient for reporting purpose by the Ministry when the grant recipient signs the grant agreement.

However the Department of Prisons and Correctional Services did not provide any report in accordance with the standard monitoring template.

The Ministry did not follow up with the Department of Prisons and Corrections Service for not complying with the standard reporting requirement.
The findings indicate that the Ministry was not vigilant in reviewing the acquittal reports.

In the absence of acquittal reports the audit was not able to establish whether the grant funds were properly utilised by the grant recipients.

In addition there is risk of misuse or misappropriation of grant funds.

11 Cabinet Decision No.
254 [SWD 9/1 CP (10) 206] 12 Cabinet Decision on 6th October 2009 13 Finance Instructions 2010, Section 16.8 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendations The Ministry should:    ensure that acquittals are received from the recipients in time; take appropriate action against the recipient if they do not comply with the requirements of the grant agreement; and stop providing further grants to organisations that do not comply with the grant agreements and fail to submit acquittals.
Ministry’s Comments No comment received from Ministry.

23.12 Lack of Monitoring and Evaluation in Women’s Projects The Ministry received proposals from various women’s clubs requesting for funds to carry out income generating projects that would enhance the livelihood of the rural women and their families.

The Ministry received a total of 20 proposals of which 4 were from the Western Division, 3 from the Northern and Eastern Division whilst 10 were from the Central Division.
The project proposal were reviewed and approved by the Ministry.

The Ministry disbursed funds to various suppliers for supply of materials for each of the project.

Refer to Table 23.10 for details of different projects undertaken and also the costs involved.
Table 23.10: Details of Projects Undertaken Division Club Project Western Western Western Western Northern Northern Northern Central Central Central Central Central Central Central Central Central Central Eastern Eastern Eastern Total Talaiya Multi – Racial Women’s Club Navolau No.
1 Women’s Group Matokana Women’s Group Tavualevu Soqosoqo Vakamarama Sailoama Women’s Group Warikaba Women’s Group Nabunikavula Women’s Group Naceva Women’s Group Nabunikavatu Women’s Club Nakorokoroyawa Women Club Waisavusavu Women’s Club Nuku Women’s Group Waibogi Women’s Group Nakavu Women’s Group Seinijiale Disability Women’s Group Nasavu Women’s Group Masi Women’s Group Wailevu Women’s Group Leba Ni Wai Vuvu Group Naicabecabe Women’s Group Beekeeping Project Beekeeping Project Canteen Project Bakery Project Canteen Project Vegetable Farming & Beekeeping Project Canteen Project Handicraft Stall Fuel Project Canteen Project Brush Cutter Project Bakery Project Watermelon Farming Project Screen Printing Project Screen printing Project Screen Printing Project Ginger Farming Project Canteen Project Fencing for Masi/ Voivoi Plantation Sewing Project Amount ($) 3,938.35 3,892.30 2,232.72 2,732.88 2,718.98 4,819.00 4,911.49 5,019.00 776.60 869.91 899.00 4,803.50 2,111.00 1,650.00 1,650.00 1,650.00 5,151.00 2,251.42 2,683.00 5,000.00 59,760.15 The audit noted that the Ministry did not require these project owners to submit progress reports stating the progress of the projects.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ In addition no project inspection was carried out by the Ministry to review how the projects were progressing and assess whether funds were properly utilized.

Furthermore payments were made to several vendors for the supply of different materials to various women’s group, for instance, timber, iron and seedlings.
However, there was no monitoring and evaluation done by the Ministry to ensure that the materials purchased by the Ministry were used for the specific projects.

In absence of project progress reports and inspection reports the Ministry could not ascertain whether the materials provided were used for the projects and funds were properly used.

The finding shows that the Ministry lacks project management skills and knowledge.

Hence the projects were not properly followed up and monitored.
Due to lack of monitoring some projects may fail and result in waste of public funds.

Recommendations The Ministry should: request the projects owners to submit project progress reports; inspect the projects for its progress; and    monitor the projects and provide guidance to ensure it progresses well and is successfully completed.

Ministry’s Comments No comment was received from the Ministry.
23.13 Accountable Advance Not Cleared on Time 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 Where an advance has not been acquitted within seven days of travel, the Accounts officer shall effect recovery action through a salary deduction after having obtained the approval of the Senior Accounts officer.15 The audit noted that several Officers 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 for the Officers whose advances were not cleared within 7 days.

Refer to Appendix 23.1 for details.

This indicates laxity of senior officer supervising retirement of advances.

This may result in advance not cleared, particularly when officers resign, retire or terminated from the service.
14 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual Section 10.1.11& 10.1.12 15 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual Section 10.1.14 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Recommendation The Ministry should:   ensure that Accountable Advance is cleared within 7 days from the date officers return to their station from official tours; and take appropriate action against Senior Accountant for not commencing salary deductions for long outstanding advances.
Ministry’s Comments No comment received from the Ministry.. 23.14 Other Anomalies in Payments The Senior Accounts Officer and Accounts Officer must not certify a payment as correct unless they are satisfied that: It is in accordance with an LPO, indent, contract, invoice or other authorization; i) ii) There is documentation that the goods, services or works have been received; v) The expenditure account it is charged to be correct.16 Payments should be made on original documents.
The audit noted several instances where adequate supporting documents were not always attached to the payment vouchers.

In some instances, documents attached were not the original documents.

Refer to table 23.11 for examples.


Table 23.11: Details of Other Payment Anomalies Date 4/12/2013 Cheque Number 55121 21/06/13 51603 16/09/13 53344 13/08/13 52698 8/5/2013 50983 Payee Cargo Care Freights (Fiji) Niranjan Autopart Limited Joes Farm Produce Ltd Fresh’et International Limited Brijlal & Co Ltd Amount VIP ($) Payment Description Remarks 3,385.00 Payment for 20ft container for shelving.

1,762.78 Payment for general servicing and mechanical repair of GM 957.
1,462.52 Payment for the supply of food items.

1,369.13 Payment for supply of food items.

 Payment made on proforma invoice.

 Invoice and LPO were photocopied.

 LPO and food request form were photocopied.

 Request form was photocopied.

6,999.00 Payment for supply of  No request form Toshiba 55 smart TV LED.

attached; 6/8/2013 52568 Cargo Care Freight 4,850.00 Payment for purchase of 20ft container.

 No approval sought from the IT Department.


 No invoice attached;  No delivery docket attached.
31/12/13 55643 Daltron 17,578.00 Payment for purchase of  No delivery docket 16 Ministry of Social Welfare, Women and Poverty Alleviation Financial Manual Section 2.8.3 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Date Cheque Number Payee Amount VIP ($) Payment Description Remarks server for database & backup.

attached.
attached.

15/01/13 48559 R.B.Patel 353.04 Payment of office supplies for western division.

4/12/2013 55132 Janta Tek Ltd 580 Payment of Toner for Labasa Office.

18/09/13 53505 Office Products 845 Payment of Dell 1213 * laserjet toner 113 for Civic Towers.

8/1/2013 48496 Redox Limited 1,985.00 Payment for printing of 200 copies of ACP 2013.

23/04/13 50470 Office Products 3,826.00 Payment of Toners.

 No Invoice;  No receipt for payments made for office supplies to the vendor.
 No request form attached to the payment voucher;  No delivery docket attached to the payment voucher;  Invoice was photocopied.

 LPO was not attached to the payment voucher.

 No invoice attached;  Payment made on quotation.

 Receipt not attached to payment voucher;  Quotation not attached to payment voucher.

Due to poor supervision and monitoring adequate supporting documents were not attached to payment vouchers.
The anomalies highlighted increases the risk of unauthorized purchases or double payments.

Recommendation The Ministry should ensure that adequate supporting documents are attached to all payment vouchers before payments are authorized and made.

Ministry’s Comments No comments received.

23.15 Aid in Kind The Ministry receives Aid in Kind through funding of projects, equipment or personnel.
The Ministry’s budget for the year 2013 indicates that they were to be provided aid in kind from various international agencies totaling $1,204,335.

Refer to Table 23.12 for details.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Table 23.12: 2013 Aid in Kind Project Civil Society Support for Social Services and Economic Opportunity Sustainable Development Fund – Rotary Water for Life Foundation Grass Roots Human Security Projects Gender Equality and Reproductive Rights Total Sponsor NZAID17 NZAID JICA18 UNFPA19 Amount ($) 671,088 318,280 189,935 25,032 1,204,335 However the audit noted that the Ministry was not aware of the aid in kind and did not receive any such aid in kind during the year 2013.
In addition the Ministry did not follow up with Ministry of Finance on the aid in kind.

The finding shows the Ministry’s Officers were not familiar with what was provided for in their 2013 budget.

As a result they may have lost the opportunity to access the aid in kind.

Recommendations The Ministry should:  be aware of its budget including aid in kind provisions; and  follow up with Ministry of Finance for the aid in kind provided for in their budget.

Ministry’s Comments No comments received.


23.16 Family Assistance Scheme/Allowance The Family Assistance Scheme has been described as a method of providing small amounts of financial assistance to families in destitute conditions.

The scheme is an affirmative action programme that is legislated under the Social Justice Act 2000.

It is a form of assistance given temporarily to a family/household whose livelihood depends on an inadequate source of income.
The Ministry of Social Welfare paid out a total sum of $19,899,741.97 under the Family Assistance Scheme for the year 2014.
23.16.1 Same Reference Number Allocated to Recipients Each recipient should have a unique identifier of the client’s reference number prefixed with their cost centre and suffixed with the month and year that the voucher is valid for.20 Review of payments of Family Assistance Allowance revealed the following anomalies:  Several instances were noted where same reference number was allocated to more than one Family Assistance Allowance recipients.
As a result audit could not establish whether the Family Assistance Allowance was paid to the bona-fide recipients.

Refer to Appendix 23.2 for examples of recipients with same reference number.
17 NZAID – New Zealand Government International Aid Program 18 JICA – Japan International Cooperation Agency 19 UNFPA – United Nations Population Fund 20 Ministry of Social Welfare, Women and Poverty Alleviation Finance Manual Section 4.1.17 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________  Several instances were noted where recipients of Family Assistance Allowance had only their first name included in the list of payments submitted to the banks.
As a result audit could not establish if the payments of Family Assistance Allowances were made to valid recipients.

In addition it would be difficult for the Ministry to identify who the payment of Family Assistance Allowance was made to.

Refer to Appendix 23.3 for examples.

There was no evidence to indicate that the Family Assistance Allowance payment list was checked by a Senior Officer before it was uploaded for payment.
The finding shows lack of reviews of monthly Family Assistance Allowances listing by Senior Officers before these are submitted to the banks for payments.

There is a high risk of double payments.


Recommendations The Ministry should:     ensure that every recipient should have a unique reference number; ensure that the recipient’s full name is stated in the payments listing submitted to the banks; ensure that monthly allowance list is reviewed by a Senior Officers before payment is processed; and take appropriate disciplinary actions against responsible Officers.

Ministry’s Comments No comments received.


23.16.2 Double Payments of Family Assistance 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 occur.
21 The audit noted upon review of the payment listing of Family Assistance Allowance submitted to the banks for payments that several recipients had dual bank accounts.

In addition the Ministry was paying the Family Assistance Allowance to both bank accounts.

Refer to Appendix 23.4 for examples.

The findings indicate that Ministry’s officials were not vigilant in checking, reviewing and updating the Family Assistance Allowance recipients’ files and the database.
As a result the Ministry made double payments of Family Assistance Allowance to several recipients.
Recommendations The Ministry should:   identify recipients who were paid allowances twice and take appropriate action; cease payment of allowances to recipients who have defrauded the Ministry and refer these cases to the Police for investigation for further action;  develop systems to identify double payment of allowances to recipients before releasing allowance data to banks; and take appropriate disciplinary actions against responsible Officers.
 21 Ministry of Social Welfare, Women & Poverty Alleviation Finance Manual Part 2 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Ministry’s Comments No comment received from Ministry.

WESTERN DIVISION 23.17 Anomalies in Poverty Benefit Scheme (PBS) Welfare Officers take their laptops into the field and interview applicants to assess their eligibility.
They input the data gathered, take pictures where relevant and other supporting documents, and return to their Office.

The Poverty Benefit System (PBS) form is an electronic template where after filling the relevant data, it automatically gives final score for the assessment.

They bring the laptops to the Senior Welfare Officer (SWO) who determines whether an application should be approved or declined.

The PBS system was developed by the World Bank after a review on the Family Assistance Scheme in 2012.
Funding for the scheme was through Aus-Aid to the World Bank.

The audit noted the following anomalies in the PBS system:  The PBS system was not interlinked with all the other PCs that has PBS database installed and in all the divisions.

All computers or laptops operate on their own which means that the SWO has to review the applications on individual computers or laptops.
In addition when there was a change in the PBS system, the change would have to be made by individually logging into the different computers.

This method of assessing the applicants is time consuming, ineffective and inefficient;  The PBS system could not print the decisions made by the Senior Welfare Officer once an assessment was completed;  The PBS system did not have adequate capacity to load more than 1 picture.
In most cases, only the photo of one recipient was loaded, even if there are 3 or 4 in a household that receives the allowance.

Hence the pictures taken by Welfare Officers during their field visit as evidence of the state of welfare of the recipients were not stored in the system;  The space provided for Welfare Officers to write their recommendations on each assessment form was inadequate to a few words only.

Hence they could not provide full recommendations.


The findings indicate some of the deficiencies in the PBS system which may contribute to delays in assessing applications.

Recommendation The Ministry should ensure that the PBS system is upgraded and linked with all the other PCs that has PBS database installed and in all the divisions.

Ministry’s Comments No comment received from Ministry.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ 23.18 Anomalies in Poverty Benefit Scheme (PBS) A case file (hard copy) must be opened with the name of the applicant, case number in the system, address and contact written on it.

All documents provided by the applicant must be kept in the case file, including birth certificates.
The case officer will also advise the applicant on the relevant information that he/she will need to know regarding the application.

This included the conditions of the assistance, the need to look for other avenues of income and the annual reviews that will be conducted.

This counseling process is recorded in the casework write up and is kept in the case file.

The PBS started in 2013.

The approval on the assessment of PBS recipients was made in late 2013.
For any new scheme or program implemented, proper documentation should be maintained.

During the review of the case files in the Western Division the audit noted that adequate records were not maintained in the PBS recipients’ case files.

Refer to Appendices 23.5 to 23.8 for examples.

The missing supporting documents indicate the lack of regular supervision by the Senior Welfare Officer which could result in unauthorized payments made to PBS recipients without proper verification.
Recommendation The Ministry should ensure that Welfare Officers maintain complete record of recipients in the case files.

Ministry’s Comments No comment received from the Ministry.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ APPENDICES Appendix 23.1: Accountable Advance Not Cleared On Time Name DSW [M.Simpson] Vijay Kumar Luisa Bainikoro Luisa Bainikoro DSW [S.Tuiwasa] DSW [V.Uqeuqe] Semi Bukarau Laisani Bainivalu Inoke Loganimoce Salote Karikaritu DSW [T.Gavidi] Semi Bukarau Samuela Waqairamasi DSW [T.Gavidi} Salote Biukoto Susana Delailomaloma Josefa Ratawake DSW [S.Galuvakadua] Salanieta Galuvakadua Madhwi Lata John Khan Gordon Bingwor Qorio Naitoqiniwa DSW [S.Lewatoga] Teresia Matewai Arieta Tagivetaua Laisani Bainivalu DSW [S.Waqairamasi] Semi Bukarau DSW [T.Gavidi] Sovaia Qalokivuya Samuela Waqairamasi Kilioni Tuitubou Osea Vatubuli DSW [M.Simpson] Jone Melekini Gordon Bingwor Anne Sarote Ela Tukutukulevu Jeremaia Moce Litiana Tabucala Official Duty End Date 19/06/13 31/07/13 24/07/13 22/05/13 31/07/13 30/07/13 30/07/13 22/04/13 15/08/13 5/9/2013 14/06/13 14/05/13 5/3/13 23/05/13 5/3/13 17/09/13 13/09/13 27/09/13 30/09/13 30/09/13 30/09/13 24/09/13 30/09/13 14/06/13 18/06/13 30/09/13 4/10/2013 9/10/2013 9/10/2013 15/10/13 15/10/13 23/04/13 5/8/2013 3/10/2013 13/11/13 30/09/13 29/10/13 26/08/13 25/10/13 27/11/13 3/9/2013 Seven Days Due Date 28/06/13 7/8/2013 13/08/13 20/06/13 14/08/13 21/08/13 21/08/13 5/5/2013 30/08/13 19/09/13 28/06/13 31/05/13 29/03/13 7/6/2013 22/03/13 27/09/13 1/10/2013 4/10/2013 8/10/2013 8/10/2013 8/10/2013 9/10/2013 8/10/2013 28/06/13 28/06/13 17/10/13 17/10/13 17/10/13 7/11/2013 7/11/2013 22/10/13 10/5/2013 28/09/13 18/10/13 25/11/13 8/10/2013 13/11/13 5/9/2013 5/12/2013 6/12/2013 19/09/13 Date Advance Cleared 31/12/13 31/12/13 31/12/13 08/11/13 31/12/13 31/12/13 31/12/13 13/09/13 31/12/13 17/01/14 17/10/13 13/09/13 17/07/13 13/09/13 17/07/13 31/12/13 31/12/13 31/12/13 31/12/13 31/12/13 31/12/13 31/12/13 28/11/13 13/09/13 13/09/13 31/12/13 31/12/13 31/12/13 17/01/14 17/01/14 31/12/13 17/07/13 11/11/2013 18/12/13 17/01/14 25/11/13 31/12/13 25/10/13 17/01/14 17/01/14 30/10/13 Amount ($) Number of Days Overdue 2,805.20 6 months, 6 days.
100.00 4 months, 26 days.

3,214.00 4 months, 25 days.

8,709.10 4 months, 21 days.

464.00 4 months, 19 days.

1,502.65 4 months, 12 days.

5,644.00 4 months, 12 days.

1,680.00 4 months, 11 days.

1,925.00 4 months, 2 days.

2,363.80 4 months.

1,282.65 3 months, 21 days.

712.00 3 months, 15 days.

1,096.00 3 months, 14 days.

472.30 3 months, 12 days.

440.00 3 months, 7 days.

456.00 3 months, 5 days.

1,274.00 3 months, 1 day.

507.00 2 months, 28 days.

1,220.00 2 months, 24 days.


1,611.00 2 months, 24 days.

1,510.00 2 months, 24 days.

5,278.00 2 months, 23 days.

1,086.00 2 months, 21 days.

259.80 2 months, 17 days.

2,236.00 2 months, 17 days.

9,150.00 2 months, 15 days.

1,625.00 2 months, 15 days.

1,977.70 2 months, 15 days.

2,950.00 2 months, 11 days.

3,781.50 2 months, 11 days.

36.00 2 months, 10 days.

1,190.00 2 months, 8 days.

308.00 2 months, 2 days.

351.00 2 months, 1 day.

1,787.70 1 month, 23 days.

5,242.50 1 month, 18 days.


3,000.00 1 month, 18 days.

1,059.00 1 month, 16 days.

3,988.30 1 month, 13 days.

1,733.00 1 month, 12 days.

4,810.00 1 month, 11 days.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name DSW [M.Simpson] Laisa Namela Laisani Bainivalu Anne Sarote Semi Bukarau Salote Karikaritu Arieta Tagivetaua Malinda Tugaga Luisa Bainikoro Semi Bukarau DSW[T.Matewai] Raijeli Erasito Maria Cagimaivei Jone Melekini Arieta Tagivetaua DSW [B.Naulumatua] DSW [A.Disewasewa] Timaleti Lewanavanua DSW[V.Uqeuqe] Malinda Tugaga Litiana Tubucala Raijeli Erasito Jone Melekini Malinda Tugaga Laisa Namela Melaia Simpson DSW [B.Naulumatua] Jotishma Mishra Jeremaia Moce Leela Naicker Jotishma Mishra Litiana Tubucala Salote Karikaritu Clement Dari Luisa Bainikoro Arieta Tagivetaua Malinda Tugaga Sarote Anne Malinda Tugaga Laisa Namela Sarote Anne DSW [V.Uqeuqe] Gordon Bingwor Litiana Tabucala Laisa Namela Salote Biukoto Laisa Namela Date Seven Official Advance Days Due Duty End Cleared Date Date 31/11/12 20/09/13 10/9/2013 18/12/13 7/11/2013 29/10/13 30/04/13 20/03/13 22/02/13 23/05/13 12/4/13 26/03/13 29/05/13 19/04/13 5/4/2013 29/05/13 19/04/13 5/4/2013 29/05/13 9/4/2013 18/04/13 31/12/13 12/11/2013 21/11/13 31/12/13 21/11/13 13/11/13 8/11/2013 2/10/2013 6/9/2013 25/09/13 13/09/13 31/12/13 12/11/2013 18/12/13 5/11/2013 18/12/13 21/11/13 13/11/13 31/12/13 25/11/13 15/11/13 31/12/13 25/11/13 18/11/13 31/12/13 26/11/13 13/11/13 31/12/13 26/11/13 15/11/13 23/05/13 19/04/13 28/03/13 16/08/13 13/07/13 2/7/2013 31/12/13 28/11/13 15/11/13 26/04/13 12/4/2013 29/05/13 10/10/2013 11/11/2013 1/10/2013 27/09/13 13/09/13 25/10/13 4/12/2013 21/11/13 31/12/13 4/4/13 26/03/13 30/04/13 10/5/2013 1/5/2013 5/6/2013 2/6/2013 21/05/13 27/06/13 22/06/13 10/6/2013 17/07/13 17/10/13 4/10/2013 11/11/2013 5/12/2013 27/11/13 30/12/13 26/02/13 18/02/13 21/03/13 12/3/13 22/02/13 4/4/13 6/6/2013 27/05/13 27/06/13 1/8/2013 10/7/2013 22/08/13 4/10/2013 27/09/13 25/10/13 7/9/2013 23/08/13 27/09/13 8/11/2013 29/10/13 28/11/13 17/07/13 28/06/13 20/06/13 12/12/2013 31/12/13 29/11/13 31/12/13 13/12/13 27/11/13 31/12/13 13/12/13 5/12/2013 22/06/13 7/6/2013 22/05/13 5/6/13 23/05/13 1/5/13 5/6/2013 23/05/13 8/5/2013 27/06/13 14/06/13 4/6/2013 13/02/13 23/01/13 1/2/2013 31/12/13 10/12/2013 19/12/13 Amount ($) Number of Days Overdue 2,652.85 1 month, 11 days.
1,410.00 1 month, 11 days.

1,688.50 1 month, 10 days.

3,889.80 1 month, 10 days.

450.00 1 month, 10 days.

1,415.00 1 month, 10 days.

150.00 1 month, 10 days.

650.00 1 month, 10 days.

100.00 1 month, 10 days.

6,914.00 1 month, 7 days.

669.50 1 month, 6 days.

270.00 1 month, 6 days.

315.00 1 month, 6 days.

2,000.00 1 month, 6 days.

140.00 1 month, 6 days.

2,237.20 1 month, 5 days.

2,849.20 1 month, 5 days.

250.00 1 month, 3 days.

633.50 1 month, 3 days.

1,280.00 1 month, 3 days.


665.00 1 month, 2 days.

1,552.00 1 month, 2 days.

1,881.70 28 days.

955.00 27 days.

582.00 26 days.

339.00 26 days.

751.50 25 days.

300.00 25 days.

2,200.00 25 days.

225.00 25 days.

90.00 23 days.

1,698.00 23 days.

493.00 21 days.

280.00 21 days.

137.50 21 days.

3,424.00 20 days.

1,530.00 20 days.

80.00 19 days.

1,220.00 19 days.

1,375.00 18 days.

324.00 18 days.

965.50 15 days.

2,080.00 13 days.

994.00 13 days.

2,883.90 13 days.


147.20 12 days.

698.90 12 days.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Name Anne Sarote Kilioni Tuitubou Raijeli Erasito Luisa Bainikoro Moana O'connar Clement Dari Laisa Namela Jone Melekini Jotishma Mishra Dilitiana Baleinabuli Raijeli Erasito Seven Official Days Due Duty End Date Date 5/8/2013 29/07/13 10/12/2013 20/12/13 22/08/13 13/08/13 17/10/13 1/10/2013 23/05/13 16/05/13 16/08/13 29/07/13 10/8/2013 2/8/2013 13/07/13 5/7/2013 11/12/2013 27/12/13 13/12/13 27/12/13 11/12/2013 27/12/13 Date Advance Cleared 16/08/13 30/12/13 30/08/13 25/10/13 29/05/13 22/08/13 16/08/13 17/07/13 31/12/13 30/12/13 31/12/13 Amount ($) Number of Days Overdue 45.00 11 days.
242.00 10 days.

243.00 8 days.

711.00 8 days.

130.00 6 days.

300.00 6 days.

223.20 6 days.

150.00 4 days.

158.00 4 days.

370.85 4 days.

280.00 4 days.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.2: Recipients With Same Reference Numbers Number Bank Account Name Of Recipient Number 009803411124 009803410183 Maya Wati Veniana Naivalu 009803347278 Narayan Samy 008903347732 009803643676 009803571034 Suruj Wati Tota Ram Daya Wati 009803789610 Avarusi Mataloa 009803716522 Pita Ratuveitulele 009802990458 Daya 009802983461 Daya Wati 009803007633 Kesaia 07851206 Teresia Bogi 009802978214 Taina 208497 Mitieli Tikotani 009803142109 Mereani Marama 009803141366 Teresia Draucala 009803014647 Vineeta Pabha 009803013706 Prabha Wati 009803707091 Haliman Bi 009802994963 Doreen Anjani 009803011684 Amalaini Adireki 009803011320 Minachi Minachi 009804586239 Epeli B. Matea 009804055458 Phul Kumari 009802982588 Mere 009802982596 Seveci Turaga 009803864314 Anasa Basaga 009802943085 009803800722 Tevita Siga Imla Wati 009803732800 Makereta Basei 009804586239 Epeli B. Matea 009804055458 009803427708 009803427237 Phul Kumari Dhurup Raji Jasma Wati Amount ($) Reference Number 60.00 101_3005367 70.00 101_3005367 60.00 101_3005675 180.00 101_3005675 60.00 101_3005688 60.00 101_3005688 60.00 101_3008143 60.00 101_3008143 60.00 101-101128 60.00 101-101128 60.00 101-101728 60.00 101-101728 60.00 101-103645 60.00 101-103645 60.00 101-104394 60.00 101-104394 60.00 101-105513 60.00 101-105513 60.00 101-106323 60.00 101-106323 60.00 101-107328 60.00 101-107328 60.00 102_3008589 60.00 102_3008589 60.00 101-108222 60.00 101-108222 60.00 102_3007769 60.00 102_3007769 60.00 102_3007989 60.00 102_3007989 60.00 102_3008589 60.00 102_3008589 60.00 103_3005705 60.00 103_3005705 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Number Bank Account Name Of Recipient Number 009803831263 Abhiman Chand
 60.00 301_3006280 Amount ($) Reference Number 26 27 28 29 30 31 32 009803814111 Wesly John Chetty 60.00 301_3006280 009803778241 Basilio Natuilotu 009803714691 Chandra Nath 60.00 301_3008402 60.00 301_3008402 009803766782 Mohammed Kasim 60.00 301_3008819 009803762146 Miriama Tabeti 009803761973 Ilisapeci Butukiviti 009803751305 Jag Ram 009803783902 Sanaila Drecola 009803763110 Sam Ryland 60.00 301_3008819 60.00 301_3009372 60.00 301_3009372 60.00 301_3009832 60.00 301_3009832 009803738054 Makereta Cabealawa 60.00 301_3009848 009802879941 Maria Arieta 009803780510 Harish Chand 009803762583 Gopal Krishna 009803819607 Anand Wati 009802895863 Alanieta Diniu 60.00 301_3009848 60.00 301_3009872 60.00 301_3009872 60.00 301_3010040 60.00 301_3010040 009803808188 Sayled Answar Ali 60.00 301_3010296 009802897752 Shamkumari 009803786368 Taniela Poka 60.00 301_3010296 60.00 301_3010828 009802875501 Taraivosa Vakatuvoli 60.00 301_3010828 009802906397 Ram Sewak 009802885344 009802892944 Hem Raji Lila Wati h 130.00 301-101171 65.00 301-101171 85.00 301-101494 009802892993 Loasana Valai 120.00 301-101494 009802892134 Merahabhan 009802892175 Pollaiya 86.00 301-101587 60.00 301-101587 009802892761 Ratu Manoa Dugulele 60.00 301-101615 009802892720 Dewanamma 009802893868 009802893884 Premila Devi Ram Kumari 60.00 301-101615 60.00 301-101666 75.00 301-101666 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.3: Recipients With Only One Name Number Bank Account Number Name Of Recipient Amount ($) Reference Number 009802874363
009803003426 009802984535 009802874363 009802961160 009802958885 009802990201 009802988932 009803020404 009802995267 009802968108 009803214940 009802998006 009802991555 009802985425 009803184598 009802865247 009802933425 Virisila Vishnu Vishnu Vishwa Vishwa Vishwa Vishwa Vishwa Vitalina Vitalina Vitalina Vitalina Vitalina Vitorina Vitorina Vitorina Vitorina Vitorina Vonivate Vonivate Vuli Vuli Vuli Wainikiti Wainikiti Wainikiti Waisake Waisake Waisake Waisake Waisake Waisake 60.00 201-105829 60.00 201_0004049 60.00 401-104099 70.00 301-104727 60.00 201-104792 60.00 201-105180 60.00 101-103581 80.00 101-109552 90.00 301-100502 90.00 301-102903 90.00 301-106262 60.00 301-107633 60.00 201-100585 60.00 201-101904 60.00 201-103965 60.00 201-105060 70.00 201-105411 80.00 201-106190 70.00 201-106533 60.00 201-106866 60.00 201-107354 60.00 201-109175 60.00 401-107204 100.00 201-103325 90.00 301-100113 90.00 301-103846 60.00 301-104820 110.00 301_0005897 64.00 301-107783 60.00 502-105367 60.00 201-104036 70.00 201-107541 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.4: Recipients With Two Bank Accounts Number Bank Account Name Of Recipient 1.
Number 4885422 8067310 Sera Vula Sera Vula 2.

9803015701 Tokasa Samanunu 8940219 Tokasa Samanunu 3.

9803834564 6847019 4.

9803127258 9803239129 5.

9803239129 7048796 Laisiasa Salu Laisiasa Salu Sophia Lallu Sophia Lallu Ilisapeci Temo Ilisapeci Temo 6.

9804434058 Laisana Vunibola 9804434059 Laisana Vunibola 7.

9802866042 9802860420 8.

4885422 08067310 9.

9802878794 Leba Senirosi Leba Senirosi Sera Vula Sera Vula Ana Maria 9802875794 Anamaria Dicau 10.

9803301576 9803301572 Bidiyawati Bidiyawati 11.


9804431592 Mohammed Hussein 6246109 Mohammed Hussein 12.

9804443134 09405952 13.

9803868836 09406478 14.

9803320895 10378322 Ram Rati Ram Rati Mitla Wati Mitia Wati Siteri Marama Siteri Marama 15.
009803015701 Tokasa Samanunu 08940219 Tokasa Samanunu Amount ($) Reference Number 60.00 101-108084 60.00 101-108084 60.00 101-106558 60.00 101-106558 95.00 104 -101593 95.00 104 -101593 75.00 104-106869 75.00 104-106869 90.00 104-106969 90.00 104-106969 40.00 501_0008326 40.00 501_0008326 60.00 301-103723 60.00 301-103723 60.00 101-108084 60.00 101-108084 110.00 301_0007490 110.00 301_0007490 61.00 201-102790 60.00 201-102790 60.00 503-101936 60.00 503-101936 60.00 503-101923 60.00 503-101923 60.00 401-107226 60.00 401-107226 60.00 401-108632 60.00 401-108632 60.00 101-106558 60.00 101-106558 Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.5: Sigatoka PBS Case Files – Missing Supporting Documents Name Bimla Wati Monthly ($) 30 Reference SG/PBS/31/13 Munsami Shiu Prasad Isei Vatumino Adi Vula Batiribalavu Ramesh Kumar 60 60 90 30 30 SG/PBS/35/13 SG/PBS/36/13 SG/PBS/45/13 SG/PBS/62/13 SG/PBS/KS/03/13 Jovilisi Lotawa 120 SG/PBS/KS/16/13 Prabha Wati Unaisi Lewa Mosese Qauqauwaqa 30 90 SG/PBS/KS/17/13 SG/PBS/KS/27/13 60 SG/PBS/KS/29/13 Missing Documents Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).


Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.6: Nadi PBS Case Files – Missing Supporting Documents Reference Name Monthly ($) NA/PBS/ MK/77/13 Kamachiammal 30 NA/PBS/FN/24/13 Anand Kumar 30 NA/PBS/FN/36/13 Taraivosa Marama Na/PBS/FN/38/13 Gopal Sami 30 30 NA/PBS/FN/42/13 Pushpa Mani 30 NA/PBS/FN/46/13 Mini Adiceva 90 NA/PBS/FN/77/13 Kamachiammal 90 NA/PBS/FN/81/13 Sheik Mohammed Rasid NA/PBS/FN/92/13 Gajraj 90 60 Missing Documents Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).


Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).


BC not certified.
BC not certified.

Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).

Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.7: Lautoka PBS Case Files – Missing Supporting Documents Reference Name LU/PBS/244/13 Vamarasi Kaituu Manueli Monthly ($) 90 LU/PBS/246/13 Krishna Kanti LU/PBS/AM/141/13 Devi Chand f/n Suicharan 30 30 LU/PBS/AM/184/13 Shamsuddin F/N 30 Nasruddin LU/PBS/AM/186/13 Ropate Elder 120 LU/PBS/AM/204/13 Nilesh Kumar 120 LU/PBS/AM/233/13 Serupepeli R LU/PBS/AM/236/13 Mahesh Prasad f/n Budh Ram 60 60 LU/PBS/AM/237/13 Matereti 120 Vugakoto LU/PBS/AM/273/13 Pratap Singh 60 Missing Documents Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).


Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014 ____________________________ Appendix 23.8: Ba PBS Case Files – Missing Supporting Documents Reference Name Monthly ($) Missing Documents Ba /LN/PBS/538/13 Roshni Lata Ba//LN/PBS/157/13 Renuka Devi Ba/LK/PBS/07/13 Gangawati Ba/LK/PBS/103/13 Sipiriano Tunakauvadra 30 30 30 90 Ba/LK/PBS/210/13 Shakuntala Devi 60 Ba/LK/PBS/213/13 Jone Sokia Ba/LK/PBS/215/13 Pushpa Kumari Ba/LK/PBS/244/13 Solomone Tiko Ba/LK/PBS/245/13 Hari Narain Ba/LK/PBS/246/13 Sepesa Galuvakadua 60 60 60 30 90 Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form and counseling report on in file (held with recipient).
Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form, counseling report held with recipient.

Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, TIN, Address verification form, counseling report held with recipient.
Filled PBS form including SWO approval, birth certificate, TIN, pictures to show welfare state of recipients, bank statement, Address verification form, counseling report held with recipient.

Filled PBS form including SWO approval, birth certificate, TIN, pictures to show welfare state of recipients, bank statement, Address verification form, counseling report held with recipient.
Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, TIN, Address verification form, counseling report held with recipient.

Filled PBS form including SWO approval, Pictures to show welfare state of recipients, bank statement, TIN, address verification form, counseling report held with recipient.
Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, TIN, address verification form, counseling report held with recipient.

Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form, counseling report held with recipient.

Filled PBS form including SWO approval, pictures to show welfare state of recipients, bank statement, address verification form, counseling report held with recipient.
Ministry of Social Welfare, Women & Poverty Alleviation Section 23: Page35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ Section 24 Ministry of Youth and Sports Role and Responsibilities The Ministry of Youth and Sports is responsible for:   The formulation and implementation of policies and programs aimed at enabling youths to meet challenges of their generation and create a better future through informed choices; and The promotion and development of sports and its infrastructure both in the urban and rural areas in recognition of the important role of Sports in nation building, and to create a vibrant and highly competitive sports industry which will be economically beneficial to Fiji.
Table of Contents 24.1 24.2 24.3 24.4 PART A: FINANCIAL STATEMENT .................................................................................................................................... 1 Audit Opinion ......................................................................................................................................................... 1 Statement of Receipts and Expenditure ................................................................................................................ 1 Appropriation Statement ....................................................................................................................................... 2 Statement of Losses ............................................................................................................................................. 3 PART B: AUDIT FINDINGS ................................................................................................................................................ 3 VAT Reconciliation ................................................................................................................................................ 3 Expenditure Ledger Not Maintained ...................................................................................................................... 4 Performance Review of the Consultant ................................................................................................................. 5 Pending Construction of Rural Sports Field .......................................................................................................... 6 Diversion from Proposed Plan .............................................................................................................................. 7 Contractual Agreement ......................................................................................................................................... 8 Anomalies in Construction of Sport Field – Adi Elieani Primary School ................................................................ 9 Upgrading Works at Naleba and Naqere Training Centre .................................................................................. 10 Upgrading Works at National Youth Band .......................................................................................................... 11 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 PART A: FINANCIAL STATEMENT 24.1 Audit Opinion The audit of the 2013 accounts of the Ministry of Youth and Sports resulted in the issue of an unqualified audit report.
Management attention however was drawn to that the Ministry did not reconcile its 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 unable to ascertain the accuracy of the amounts stated in the Statement of Receipts and Expenditure.
24.2 Statement of Receipts and Expenditure The Ministry collected revenue totalling $54,157 and incurred a total expenditure of $5,384,394 in 2013.

Details are provided in Table 24.1.
Ministry of Youth & Sports Section 24: Page 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ Table 24.1: Statement of Receipts and Expenditure for 2013 Description RECEIPTS State Revenue RBF Revaluation Reserve Account Commission OPR in Previous Years Total State Revenue Agency Revenue Sales of School Farm Produce Miscellaneous Revenue Total Agency Revenue TOTAL REVENUE EXPENDITURE Operating Expenditure Established Staff Unestablished Staff Travel & Communication 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 ($) 2012 ($) - 755 - Total revenue declined by $10,146 or 15.7% in 2013 compared to 2012 as a result of decrease in miscellaneous revenue.
Total expenditure increased by $2,032,066 or 60.6% in 2013 compared to 2012.

The increase was mainly due to the payment of $1,000,000 operating grant to Fiji National Sports Commission and the increase in special expenditure.

24.3 Appropriation Statement The Ministry incurred expenditures totalling $5,384,394 in 2013 against the budget of $5,569,622 resulting in a saving of $185,228 or 3.3%.

Details of expenditures against the budget estimates are provided in Table 24.2.
Table 24.2: Appropriation Statement for 2013 SEG Item Established Staff Unestablished Staff Travel & Communication Maintenance & Operations Purchase of Goods & Service Budget Estimate ($) 1,377,211 163,974 117,300 194,120 597,400 Changes ($) (26,353) 26,353 --- --- (22,100) Revised Estimate ($) Actual Expenditure ($) Lapsed Appropriation ($) 1,350,858 190,327 117,300 194,120 575,300 1,326,774 179,416 102,449 176,716 561,719 24,084 10,911 14,851 17,404 13,581 Ministry of Youth & Sports Section 24: Page 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ SEG Item Operating Grants & Transfers Special Expenditure Total Operating Costs Capital Expenditure Construction Purchases Grants & Transfers Total Capital Expenditure Value Added Tax TOTAL EXPENDITURE Budget Estimate ($) 1,490,000 1,048,793 4,988,798 --- --- 470,000 470,000 230,832 5,689,630 Changes ($) (105,100) 29,200 (98,000) --- --- (22,008) (22,008) --- (120,008) Revised Estimate ($) 1,384,900 1,077,993 4,890,798 --- --- 447,992 447,992 230,832 5,569,622 Actual Expenditure ($) Lapsed Appropriation ($) 1,384,844 982,265 4,714,183 --- --- 446,769 446,769 223,442 5,384,394 56 95,728 176,615 --- --- 1,223 1,223 7,390 185,228 24.4 Statement of Losses There was no Loss of money recorded for the year ended 31 December 2013.
However, items worth $12,721.50 were written off, following the Ministry’s board of survey conducted on 31 December 2013.
PART B: AUDIT FINDINGS 24.5 VAT Reconciliation Subject to the provisions of this Decree, the tax shall be charged in accordance with the provisions of this Decree at the rate of fifteen percent on the supply (but not including an exempt supply) in Fiji of goods and services on or after the 1st day of July 1992, 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.
1 Output 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 VAT2.

The audit noted that the Ministry did not prepare VAT reconciliations during the year.
Review of VAT returns and total expenses revealed a variance of $467,394.66 between the taxable supplies as per VAT Returns and total expenditure/income subject to VAT as per Statement of Receipts and Expenditure.

Refer Table 24.3 for details.
Table 24.3: Un-reconciled Vat Variance Details Total expenditure/income as per Expenditure Statement Less: Expenditure not subject to VAT – SEG 1,2, 6 and 10 Total expenditure/income subject to VAT Less: Total taxable supplies as per VAT Returns Un-reconciled variance Amount ($) 5,384,394.20 3,337,803.63 2,046,590.57 1,579,195.91 467,394.66 In addition, a variance of $168,367.94 was noted between the actual VAT paid for the year 2013 and the balance disclosed in the general ledger (FMIS).
Refer Table 24.4 below for details.
1 Value Added Tax Decree 1991 revised to 4th March 2011 – s15 (1) 2 Finance Circular No 9/95 Ministry of Youth & Sports Section 24: Page 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ Table 24.4: Variance in VAT Paid Amount in FMIS Details VAT payments (VAT payments to FRCA and VAT Input) as per General ledger (SEG 13) VAT payments (VAT payments to FRCA and VAT Input) as per VAT Returns for 2013 Un-reconciled variance Amount ($) 223,441.53 55,073.59 168,367.94 No explanation was provided by the Ministry for the variances.
The non-reconciliation of VAT and poor monitoring by the Ministry may have resulted in the differences highlighted above.

The Ministry may be paying incorrect VAT to FRCA.


Recommendations The Ministry should:    ensure that VAT paid to FRCA is reconciled on a monthly basis; take necessary steps to identify the error and reconcile the records to avoid such variances in future; and ensure supervisory checks on the preparation of VAT Returns are improved to ensure that balances reflected in the VAT Returns reconcile with the GL.
Ministry’s Comments We admit no VAT reconciliation was carried out in 2013 but please note Vat returns are prepared and submitted to FIRCA on a monthly basis.

We will ensure this is carried out in future.

However the following may have also contributed to the variances highlighted:  VAT on farm produce included in the payment  Payments done on seg 3 which are subsistence and meal claims do not include vat whereas VAT provision is provided in the budget.

This has implications in the expenditure figure.


24.6 Expenditure Ledger Not Maintained All payments, including VAT, must be immediately recorded in the financial management information system and an expenditure ledger3.

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 reports4.
The special purpose financial statement of the Ministry of Youth and Sports for the year ended 31 December 2013 was prepared from the Financial Management Information System (FMIS) maintained by the Ministry of Finance.

The audit noted that the Ministry did not maintain an expenditure ledger that could be used to reconcile its expenditure with that recorded in the FMIS general ledger.
3 Finance Instructions 2010, s15 4 Ministry of Youth and Sports Finance Manual, s15 Ministry of Youth & Sports Section 24: Page 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ As a result, audit was not able to ascertain the accuracy of the amounts stated in the statement of Receipts and Expenditure.
Recommendations The Ministry should:   ensure that an expenditure ledger is maintained; and reconcile its expenditure ledger with FMIS records on a monthly basis.

Ministry’s Comments We admit error on our part in not maintaining Manual Expenditure ledgers due to limited man power.

The vacant CO post is now being filled and this will be part of her activity.

Monthly reconciliation will also be carried out against FMIS GL.
24.7 Performance Review of the Consultant There shall be a review of the work done on a monthly basis, the first being on September 1st 2012.5 The Ministry on 01/08/12, appointed Mr James Henry Giles Smith as a Consultant for a period of one year with a gross annual fees of $50,000.
The Consultant was to provide strategic direction and advice on the implementation of the sports policy and was specifically appointed to: i) Facilitate preparation of a Strategic Plan of Action on the approved National Sports Policy that included the establishment of a National Sports Commission; ii) Consolidate comments on the Plan of Action through stakeholder consultation and submit to the Permanent Secretary; iii) analyse, assess and advise on the concept to establish a National Sports Commission, its structure and related laws; iv) Consolidate stakeholder comments on the National Sports Commission and submission to the Permanent Secretary for Youth and Sports; and v) Recommend innovative strategies for improving sports development in Fiji with particular attention to participation in minority sports6.
Furthermore the consultant was to achieve the following tasks and associated outputs: i) To understand the documents in place which had gone through consultation with stakeholders; ii) Design consultation structure; iii) Consultation with the major players in both major and minor sports; iv) Consultation with the Principal Sports Officers and the Sports Unit Staff; and v) Produce and submit report to the Permanent Secretary on a monthly basis.7 The Ministry paid consulting fees totaling $30,163.10 to Mr. James Henry Giles Smith since his appointment on 01/08/12 until 11/03/13 after which he was transferred to the National Sports Commission.
The audit however could not substantiate the task completed by the Consultant as no reports or evidence of the task completed was made available as stated in the consultancy agreement.
5 Consultancy Agreement dated 01/08/12 – Clause 3.2 6 Consultancy Agreement dated 01/08/12 – Clause 2 (Duties of the Consultant) 7 Consultancy Agreement dated 01/08/12 – Clause 2.5 (Task and Associated Outputs) Ministry of Youth & Sports Section 24: Page 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ As such, the audit was not able to ascertain whether the consultant performed the tasks as stated in the consultancy agreement.
The audit also noted that the performance review of the Consultant was not carried out by the Ministry on a monthly basis as stipulated in the consultancy agreement.

The finding indicated poor supervision and monitoring of the consultants performance by the Ministry.

Recommendation The Permanent Secretary should immediately carry out the performance review of the consultant and assess whether the desired outputs have been achieved.

Ministry’s Comments The Ministry notes the recommendations in place.
However, there are certain circumstances where the Ministry despite all odds facilitates the desires of the authorities.

The Consultant however did compile a strategic plan of action on the approved National Sports Policy and a copy recorded for further verification.

He had also coordinated series of stakeholder meetings and relevant information gathered assisted in drawing up of the plan and Safety in Sports Policy.
Mr Giles is now with the Fiji National Sports Commission as a Sports Development Manager looking after new programs such as “Give it a Go Program” and Sports Outreach Programs.

Review and assessment of his performance will be handled by the FNSC Chief Executive.

RURAL SPORTS FIELD The Rural Sports Field Development Program is one of the assistance provided by the Ministry for ensuring development and promotion of sports at all levels.
This involves the provision of proper sports field for schools and communities in rural areas to offer opportunities and encourage more active participation of all citizens.8 24.8 Pending Construction of Rural Sports Field 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.9 The Ministry maintains a list for all the requests received for the development of rural sports field from various stakeholders.
Our review of the request for rural sports field development and the pending sports field development noted an increasing trend over the 5 year period from 2009 – 2013 despite the availability of funds.

In 2013, the Ministry proposed to develop 8 rural sports field.

It however managed to develop only 1 sports field while 7 projects were still outstanding with $84,997 unused in the Ministry’s budgetary allocation.
Refer to Table 24.5 for details of rural sports field development projects over a 5 year period.
8 Ministry of Youth and Sports – 2012 Annual Report Page 70 9 Ministry of Youth and Sports Finance Manual 2011 – Part 2 Ministry of Youth & Sports Section 24: Page 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ Table 24.5: Pending Rural Sports Field Development From 2009 – 2012 Year 2009 2010 2011 2012 2013 Total No of Sports Field Pending Development 2 9 11 34 7 56 Savings in Allocation in FMIS 90,917.80 62,996.22 0.00 40,676.13 84,998 279,588.15 The Ministry was not able to develop the sports field in a timely manner and savings were noted in the Ministry’s budget.
The finding indicates poor planning and development of sports field by the Ministry.

Recommendation The Permanent Secretary must ensure that sports field development projects are properly planned and executed to utilise the funds provided and provide the rural community with better standard of sporting fields.

Ministry’s Comments There was delay in the implementation at the beginning of the year but by 31/12/2013, budget utilized was 98%.
The other 2% was due to non-payment of contractor who did not complete one of the projects.

24.9 Diversion from Proposed Plan Each year the Ministry identifies those sports field that will be developed during the year.

The Sports Officials shall carry out site visits to determine the need to construct sports field.10 The Ministry proposed 8 rural sports field for development in 2013.

Only one playing field was completed while two were still in progress as at the date of audit.
Refer to Table 24.6 for the status of the playing fields.
Table 24.6: Status of the Proposed Sports Field Development Division Province Ground Development Eastern Lau Cricket Pitch Multi-purpose concrete base court Cricket Pitch Cricket Pitch Nakorotubu Primary School sports ground Western Ra Nadroga Navosa Central College, multi-purpose complex Ba Tavua District Primary & Secondary sports ground 10 Ministry of Youth and Sports Staff Manual 2013, Section 16 Ministry of Youth & Sports Location Status Kabara Vanuavatu Moce Ono I Lau Nakorotubu, Ra Keiyasi, Navosa Tavua Pending, undertaken Pending, undertaken In progress In progress Pending, undertaken Pending, undertaken Pending, undertaken no no no no no works works works works works Section 24: Page 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ Division Province Ground Development Location Status Central Tailevu Turagabeci Primary School sports ground Nasau, Tailevu Completed.
inspection Commissioner Central report Awaiting from The audit noted that the Ministry deviated from its approved projects and carried out different projects which were not identified by the Sports Official and approved by the Ministry.

The unplanned projects were undertaken upon the directive from the Minister for Youth and Sports.

Refer to Table 24.7 for details.


Table 24.7: Details of Unplanned Projects Implemented Province Project Rewa Naitasiri Lami High School Fencing of Matainasau Ground Cost ($) 25,000.00 9,554.94 The finding indicates that rural sports field projects were not undertaken as planned.
Recommendations The Permanent Secretary must ensure that: rural sports field projects are properly identified and planned;   any deviation from the plan is properly justified; and  projects are selected based on predetermined selection criteria.

Ministry’s Comments  Nakorotubu Primary School ground was initially planned and not undertaken due to the non-receipt of EOI from contractors for the ground.

 Navosa Central College project is deferred to 2014.
 Wrong information from the Lau Trade Show report resulted in putting the cricket pitch and multipurpose court for Kabara and Vanuavatu when in fact they only requested for sports equipment.
The projects undertaken upon Ministerial directive covered up for these shortfalls and are within the approved budget 24.10 Contractual Agreement All Government contracts must be prepared by the organization and should be vetted by the Solicitor General.11 The contract must clearly outline all the necessary terms and conditions of the agreement.
The Ministry engages Contractors for the construction and development of rural sports field whereby contractual agreement are signed between the Contractors and the Ministry.

Our review of the contract documents noted that the following terms and condition were not outlined.
11 PSC Circular No 23/2001 Ministry of Youth & Sports Section 24: Page 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ i) Penalty for late completion of projects A penalty of $100 to $500 per day is normally agreed upon should the contractor delay the completion of the project.

ii) Retention Amount A retention amount of 5% to 10% of all payments made to the contractor is retained and is paid out 1 to 3 months after the project is completed.
The purpose of retention sum is to ensure that unsatisfactory work by the contractor could be rectified.

The findings indicate that government’s interest are not fully protected which may result in substantial loss of public funds.

Recommendation The Permanent Secretary should ensure that rural sports field contract agreements are amended to include Penalty for late completion of projects and Retention amount clauses.
Ministry’s Comments  This clause is noted and will be included in all Contract Agreements for 2014 i.e.

Penalty for late completion.

 Also an agreed project period to be discussed with contractors to also take into consideration factors such as natural, mechanical, etc.

24.11 Anomalies in Construction of Sport Field – Adi Elieani Primary School 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.

The Contractor shall complete the project within 35 days from the date of the start of the development works within the budget of FJ$37,000.12 The Ministry had initially engaged Tabua Power for constructing the sports field at Adi Elieani Primary School at a cost of $37,000.
However, Tabua Power declined the contract due to the excavator and trucks having engine problem.

Consequently, the Ministry on 19/08/13 engaged Rashid’s Bulldozing Works for constructing the sports field at a cost of $37,000 with an expected completion date of 24/9/13.

As at the date of audit13 the Ministry has paid $18,500 or 50% of the contract sum.

The audit noted the following anomalies:  Competitive quotations were not obtained for engaging Rashid’s Bulldozing Works to construct the sports field.
Rashid Bulldozing Works was appointed based on the recommendation from the Divisional Commissioner Northern.

12 General Condition of Contract Section 5.3 13 07/11/13 Ministry of Youth & Sports Section 24: Page 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________  The expected completion date of the project was 24/9/13.

However as at the date of audit14, the contractor was yet to complete the construction works.
Hence the project had been delayed by 44 days.

 There was no progress report produced for audit verification, as a result audit could not determine the current status of the project.

The above findings indicate that the Ministry failed to properly monitor the project.

As a consequence, the project was delayed and is yet to be completed.
Recommendations  The Permanent Secretary should:   ensure that quotations are obtained for all payments exceeding $1,000 and less than $50,000; consider getting the village and school committees to be part of the project for monitoring purposes in remote areas; and  The Project Monitoring Unit should ensure to monitor the projects on a regular basis and advice the Permanent Secretary to take appropriate action against the contractor in case of delays.
Ministry’s Comments  The previous contractor who declined the contract had quoted $37,000, the amount we had committed in our budget for 2013.

 Quotes were obtained but all were above the committed amount of $37,000 except for Rashid’s.

 The Head Teacher was our monitoring man on the ground with log book confirming progress of work.
 The month we manage to engage another contractor it was into the rainy period for the area of “Wainunu” which is loosely translated in the i Taukei language as always under water thus the project has been delayed by this factor considering the filling of the playground needs to be done on dry ground to avoid unnecessary loading and unloading of soil for filling which we are paying per load.

 Project completed on 24 December 2013.


UPGRADING OF YOUTH TRAINING CENTRES The Northern Division has two training centres for the provision of youth skills training.

The Naleba Youth Training Centre provides boarding facilities with training programme in basic agriculture.

Whereas, the Naqere Youth Training Centre provides day scholar programmes with training in Carpentry and Joinery works.
The National Youth Band (NYB) program provides theoretical and practical training in music, physical education, and Art & Craft 24.12 Upgrading Works at Naleba and Naqere Training Centre 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 14 07/11/13 Ministry of Youth & Sports Section 24: Page 10 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.15 As part of the youth training program, the Ministry carried out upgrading work of the training facilities at Naleba and Naqere training centre.
The upgrading work was mainly carried out by the students as part of the training program in basic agriculture, carpentry and joinery works.

According to the third quarter progress report submitted by Divisional Youth Officer Northern, Mr Iowane Soko, and the following upgrading work was carried out.

Refer Table 24.8 for details.
Table 24.8: Details of Work Done at the Northern Training Centre Centre Details of Works Done Naleba Naqere Upgrading of feed storage house, piggery and chicken shed Construction of boat shed and maintenance of joinery workshop Budgeted Amount ($) 80,000 40,000 Actual Expenditure ($) 62,465 25,933 The audit noted that the Divisional Youth Officer, Mr Iowane Soko failed to provide the scope of works and breakdown of the total cost incurred in terms of labour costs, materials and plant hire.
As the scope of work and cost breakdown for the upgrading work was not provided, the audit cannot ascertain whether funds were properly used.

Recommendations The Ministry should:   review the work carried by the Divisional Youth Officer Northern to ensure funds were properly used; and ensure to maintain the scope of work and detailed breakdown of the cost for the upgrading works.
Ministry’s Comments Our scope of work was defined under our PSIP paper submission and detailed further with our RIE submission.

24.13 Upgrading Works at National Youth Band 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.16 The upgrading works for National Youth Band (NYB) commenced on 18/02/13 and was completed on 03/05/13.

This included the refurbishment of office space, renovation of buildings and storage room.

The total cost for the upgrading works was $50,374.31.
15 Ministry of Youth and Sports Finance Manual 2011 – Part 2 16 Ministry of Youth and Sports Finance Manual 2011 – Part 2 Ministry of Youth & Sports Section 24: Page 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ According to the officer in charge at NYB, Ms. Masi Matinapa, the upgrading work was carried out by students from Naqere Training Centre as part of their practical learning.
The students were supervised by instructors from Naqere Training Centre.

Site inspection carried out by audit on 05/12/13 noted that following defects in the upgrading work:  There was no plan for the upgrading work which included new shower block and veranda.

Hence the construction work was not approved by Nasinu Town Council and Town and Country Planning Office.

 The wooden top plate was not fixed to iron post supporting the structure.
In addition the iron post was also not properly fixed to the footing.

 The veranda outside the NYB office was not properly constructed and had a height of 5.7 feet or 1.7m only instead of standard 2.4 – 2.6m height.

 The newly constructed shower blocks were not in operation as tiling and plumbing works were not completed.

 Excessive materials were purchased for the upgrading works which was stacked in the premises.

The cost of materials was estimated to be $600.


 The rafters were not joined properly and were supported by one bolt and nut only.

 There was no completion certificate or inspection report from a qualified building engineer.

Refer to the pictures below for illustration.
Figure 24.1: Incomplete tiling work Figure 24.2: Excess material purchased Ministry of Youth & Sports Section 24: Page 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI – SEPTEMBER 2014_____________________________ Figure 24.3: The rafter not properly fixed Figure 24.4: Iron post not mounted to the rafter Figure 24.5: Wooden post not properly mounted to the foundation Figure 24.6: Showing low height on the Veranda The above findings indicated that the upgrading work was not supervised by an experienced builder.
In addition, the Ministry did not comply with the requirement of Town and Country Planning and Municipal Council for building constructions.

Recommendations The Permanent Secretary should ensure that:  all construction works are properly designed and approved by relevant authorities; and  appropriate technical people from the Public Works Department are engaged in the upgrading works so that the work carried out is of high quality and meets the national building standards.
Ministry’s Comments Comments noted.

It was renovation in lieu of construction.

Works only involve replacing old walls etc.

and no new building was constructed.

Manager YYC was the Supervisor and lead Carpenter.

The Ministry acknowledges that no one experienced in this field apart from Manager YYC was involved.

The Ministry is not sure whether the wooden building has its own plan.

From 2015 Renovation works will be inspected by the PWD Building Section to inspect.
Ministry of Youth & Sports Section 24: Page 13