Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694861106075.pdf (Fiji)
COVID-19 COMPLIANCE AUDITS Management of nemployment enefits Management of Concessional Loan Package to Micro Small and Medium Enterprises (MSMEs) PARLIAMENT OF FIJI PARLIAMENTARY PAPER NO.
42 OF 2021 Location : Level 8, Ratu Sukuna House 2-10 MacArthur Street Suva, Fiji Postal Address Telephone : P O BOX 2214, Government Buildings Suva, Fiji : (679) 330 9032 Email Website : info@auditorgeneral.gov.fj : www.oag.gov.fj OFFICE OF THE AUDITOR-GENERAL Promoting Public Sector Accountability and Sustainability Through Our Audits 6-8TH Floor, Ratu Sukuna House 2-10 McArthur St P. O.
Box 2214, Government Buildings Suva, Fiji Telephone: (679) 330 9032 Fax: (679) 330 3812 E-mail: info@auditorgeneral.gov.fj Website: www.oag.gov.fj 7May Government Buildings Constitution Avenue SUVA.
AUDIT REPORT ON COMPLIANCE AUDITS RELATING TO COVID – 19 RESPONSE
AUDITOR-GENERAL The Auditor-General and Office of the Auditor-General – Republic of Fiji The Office of the Auditor-General is established as an Independent Office by the Constitution of the Republic of Fiji
uditor-General on behalf of Parliament.
At least once every year, the Auditor-General must report to Parliament on the audits conducted and on other significant matters the Auditor-General wishes to bring to the attention of Parliament.

The Office of the Auditor-General notes the impact of its reports to Parliament on the ordinary citizens and strives for accuracy and high-quality reporting including recommendations which are not only value- adding to the entity subject to audit but its customers, the general public as well.
Management of nemployment enefits REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Contents Executive Summary ..................................................................................................................................... 3 1.

2.
2.

Introduction ......................................................................................................................................... 4 Subject Matter and Scope .................................................................................................................... 7 3.

Audit Objective .................................................................................................................................... 7 4.
Audit Criteria ........................................................................................................................................ 8 5.

Methodology ....................................................................................................................................... 8 6.
Findings ................................................................................................................................................ 9 6.1 Established Disbursement Procedures ................................................................................................ 9 6.2 Applicants still employed receiving Government subsidy ................................................................. 11 6.3 Formal Sector Government Subsidy Pay-out .................................................................................... 12 6.4 Informal Sector Unemployment Pay-out .......................................................................................... 17 6.5 Informal Sector Calculation Reliability .............................................................................................. 19 7.
Conclusion ......................................................................................................................................... 20 Appendix 1: Informal Sector Advertised Conditions ................................................................................. 21 Appendix 2: Processing of Manual Applications ....................................................................................... 22 Appendix 3: Processing of Online Applications ......................................................................................... 23 Appendix 4: FNPF Details of Double Payments Greater than $1,000 ....................................................... 24 Appendix 5: Ineligible Phase 2 Category 3 Applicants Detail .................................................................... 26 Appendix 6: Informal Sector Unemployment Anomalies Details .............................................................. 29 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 1 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Acronyms Abbreviation Meaning COO Chief Operating Officer COVID-19 ERP FMA FNPF GA ISSAI MoE SOP Coronavirus Disease 2019 or 2019 novel coronavirus or 2019- nCoV Enterprise Resource Planning Financial Management Act 2004 Fiji National Provident Fund General Account International Standards of Supreme Audit Institutions for ISSAI Ministry of Economy Standard Operating Procedures MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 2 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Executive Summary The Office of the Auditor-General carried out a compliance audit on the Management of Unemployment Benefit COVID-19 facilitated by Ministry of Economy (MoE) and administered by the Fiji National Provident Fund (FNPF) in 2020.
The primary objective of the audit was to obtain sufficient and appropriate evidence to form a conclusion on whether the MoE and FNPF had paid COVID-19 unemployment benefits for workers in the Tourism Sector and the Lockdown Informal and Formal Sectors is in accordance with the required criteria.
The criteria’s used in the audit were derived from the following sources: • COVID-19 Response Budget Estimates 2019-2020; • National Budget 2020-2021; • COVID-19 Response Assistance Agreement for Government Subsidy for Phase 1 between MoE and FNPF dated 01/04/2020; • COVID -19 Unemployment Assistance Agreement for Government Subsidy for Phase 2 between MoE and FNPF dated 20/07/2020; • Standard Operating Procedures (SOP) for Early Withdrawal – Pandemic Assistance; and • Criteria for unemployment benefit for workers in Informal Sector within Lockdown Areas.
The significant findings identified from this compliance audit include the following: • SOPs were not designed by MoE for disbursement of assistance process for unemployment in the informal sector COVID – 19 lockdown areas; • Applicants who were still employed received Government subsidy; • Double payment of FNPF and Government subsidy to eligible applicants; • Government subsidy incorrectly calculated and paid out; • Extra government subsidy paid to approved applicants; • Government subsidy paid to ineligible applicants; • FNPF not providing system closure report for each payment phase; • • Some approved applicants for informal sector in the COVID – 19 lockdown areas assisted by MoE also benefitted from FNPF government subsidy COVID – 19 formal sectors financial assistance program.
Incomplete informal sector approved applications still received payment; and The MoE should develop detailed and clearly defined SOP for all projects or programs undertaken by the government to enhance good governance and sound internal and quality controls to improve proper accountability.

Furthermore, MoE through the FNPF can better manage the COVID – 19 financial assistance by using an integrated system that can properly collect, store, manage and interpret data in real-time.
Integrated systems can also reduce the risk of errors and omissions common when manual intervention is made between one or more stand-alone systems.

Detailed audit findings with recommendations are included in Section 6 of this report.

MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 3 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 1.

Introduction The MoE is responsible for managing public finances in accordance with the Constitution and the Finance Management Act (FMA) 2004.
Government made a commitment through the MoE by providing financial assistance of $150 per redundant worker/small business owners in the Informal sector.

Assistance was provided to those Fijians who had been affected due to the lockdown in Lautoka, Suva, and Nasinu that were eligible for the financial assistance.
As per COVID-19 response plan for redundant workers, the Government of Fiji budgeted a total of $210 million for redundancy and unemployment benefits of which $60 million is subsidised by government and $150 million is provided through FNPF.

As at 31 August 2020, a total of $35.6 million (17.38%) has been paid under this COVID-19 response plan.
Government together with the FNPF also implemented relief packages to assist the FNPF members and employers in two (2) phases as Fiji faced the economic impacts of Novel Coronavirus (COVID- 19).

This saw the facilitation of the formal sector unemployment benefit pay-out.

The Phase 1 government subsidy financial assistance commenced on 01/04/20 and closed on 29/05/20, while Phase 2 was effective from 29/05/20 and 09/06/20 respectively being paid out in three different categories.
As at 31 August 2020, government subsidy that has been paid out totalled $18,576,019 to 73,721 eligible applicants.

The details are illustrated in Figure 1.1.


MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 4 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 1.1: Payment Details of Phase 1 and Phase 2 Government Subsidy Phase 1 consisted of the following two payment categories requirement: • Category 1 (Government Top Up is applicable) - employees who work in the Tourism Sector ($1,000) and those affected due to physical distancing issues or work within the lock- down zone nationwide ($500).
Employees who have had reduced working hours; been sent on leave without pay; reduced wage rate or salary; terminated or permanently laid off can apply for either $1,000 or $500 withdrawal.
MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 5 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI • Category 2 (Government Top Up NOT applicable) - covers taxi, minivan or hire drivers, small enterprise owners and employees who have resigned, been terminated, non-renewal of contract, laid off or seasonal workers in the last 6 months can withdraw up to $1000 from their General Account depending on their eligibility.
Phase 2 consisted of the following three payment categories condition: • Category 1 (Government Top Up is applicable) - members who withdrew in the first phase of COVID-19 Withdrawal & have exhausted their FNPF General Account (GA) balance will receive $220 from the Government as first instalment by 29 May 2020.

This does not include those that applied under SME and Taxi drivers in Phase 1.
• Category 2 (Government Top Up is applicable) - members who withdrew in the first phase of COVID-19 Withdrawal and are now/still unemployed, can apply for $1,100 from your General Account.

Payment in five instalments of $220 per fortnight.

This is effective from 9 June 2020.

• Category 3 (Government Top Up is applicable) - members who did not apply for the first COVID-19 Withdrawal and have become unemployed, can apply for lump sum of $1,100 from your General Account.
This is effective from 9 June 2020.

While Figure 1.2 depicts the different phases for assistance in the formal sector, the scope of the audit covered Phases 1 and 2 up to 31st August 2020 only.
Figure 1.2: COVID-19 FNPF Unemployment benefit assistance phases Source: FNPF website: https://myfnpf.com.fj/index.php/covid-19-updates/fnpf-relief-assistance We conducted this audit on the Management of COVID-19 Unemployment Benefits due to the large volume of applications received and processed by FNPF, and considering the large amounts of government subsidy paid out under the unemployment benefit assistance in both formal and informal sector.
The objective of the audit was to determine that the FNPF and the MoE had approved the payment of unemployment benefits in accordance with the eligibility requirements laid out by Government.

We conducted this Compliance Audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs).

MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 6 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 2.
Subject Matter and Scope Following the COVID-19 response budget, the Government made a commitment to provide assistance to both formal and informal sectors in Fiji.

The subject matter for the audit was the payment of COVID-19 unemployment benefits to unemployed workers in the Tourism Sector and the Lockdown Informal and Formal Sectors.
As part of our scope for the formal sector pay-out, we focused on the data extracted from FNPF’s systems until 31/08/20 where the data was reconciled against the payments made specifically for Phase 1 and Phase 2.

For assistance to the informal sector managed by the MoE, the scope covered for those affected due to the lockdown in Lautoka, Suva and Nasinu, and were eligible for the $150 financial assistance from 1st April 2020 to 31st May 2020.

3.
3.

Audit Objective The objective of the audit was to determine that the FNPF and the MoE had approved the payments of unemployment benefits in accordance with the eligibility requirements laid out by Government.
In order to form an overall conclusion on the subject matter, the following sub-objectives were also determined to: • Establish that FNPF and MoE has proper processes and procedures to guide the payment of government subsidy to eligible applicants of unemployment benefits through FNPF and to the informal sector; • Provide assurance that government subsidy has been correctly paid out to the members under the FNPF’s Unemployment Benefits for Pandemic Assistance to those that have lost jobs or are on the reduced hours in the tourism and hospitality industry and to those affected by the lockdown or travel restrictions due to COVID-19 and have less than required amount in their FNPF General Account; and • Provide assurance that processing of unemployment benefit for workers in Informal Sector within Lockdown areas has been correctly paid by Ministry of Economy out to recipients and in compliance with the Application Form requirements and Terms of Reference as advertised.
The audit is conducted in accordance with the requirements of ISSAI 4000 Compliance Audit Standards and ISSAI 100 Fundamental Principles of Public Sector Auditing to form a conclusion on whether the MoE and the FNPF have facilitated payments of unemployment benefits to eligible or bona-fide recipients in the tourism and lockdown informal and formal sectors.

MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 7 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 4.
Audit Criteria The criteria used are as follows: • Requirements for unemployment benefit for workers in informal sector within the lockdown areas: o Section 3 of Unemployment benefit for workers in informal sector within the lockdown areas based on the application guideline1.

• FNPF Early Withdrawal Pandemic Assistance SOP requirements on: o o o Section 6.1 – Roles and responsibilities; Section 6.2 – Processing of application; and Section 6.5 – Approval of application.

5.
5.

Methodology The audit was carried out based on the information and documentations provided by the MoE and FNPF.

We reviewed and evaluated the information and documentations provided to assess compliance with the criteria set out on Section 4.
The applications for unemployment benefits for workers in Informal Sector within Lockdown Areas and those received by FNPF for Early withdrawal – Pandemic Assistance that had received government subsidy were in compliance with the eligibility criteria and requirements.

In executing this audit, various approaches were exercised which included: (i) Document reviews; (ii) Interview of responsible officials from the MoE and the FNPF; and (iii) Data analytics.
The findings of our audit were initially discussed with the MoE Head of Administration and Corporate Services accompanied by the Training Assistants on 30/09/20 while discussion of the FNPF findings was held with the Acting Chief Operating Officer (COO) and Finance Team of FNPF on 18/11/20, respectively.

Responses received from MoE and FNPF have been incorporated in the report, where appropriate after the exit meeting on 12/03/21.
1 Appendix 1 – Informal Sector Application Form MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS 8 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 6.

Findings 6.1 Established Disbursement Procedures Question No 1 Did FNPF and MoE establish proper procedures to make payments and reconcile the government subsidy paid?
This audit question attempts to establish whether FNPF and MoE have proper work flow processes and procedures to guide the payments made to eligible applicants of unemployment benefits through FNPF and to the informal sector, respectively.

SOPs are an integral part of a successful quality process that provides information to perform a task properly to achieve pre – determined specification and a quality end – result.
6.1.1 Informal Sector We noted that SOPs were not prepared by the MoE for the informal sector financial assistance payments.

However, we were able to confirm the application procedures based on the following processes which were adopted from receipt of application to payment as shown in Figure 6.1.
Figure 6.1: Process – Informal Unemployment Benefit Pay-out (A) Recipient completes application form with Section F witnessed by a Legal Aid Officer (B) Attaching required documents to the completed form (C) Drop applications at any BDM office.

(G) Applications are vetted and verified.

(E) Applications transported across lockdown areas to MOE.

(I) After obtaining PS's approval, applications are sent for payment from the Treasury Team.
(F) MOE Admin Team checks the foms and matches it with attached BDM office listing.

(J) Treasury Team verifies accuracy and passes for payment.

(D) Applications are packed in evelopes with a list containing all applications in the envelope.

(H) Preparation and submission of minute with applications to PS for approval.
(A) Source: Processes https://www.fiji.gov.fj/getattachment/dbb53051-9f90-40fc-9f9a- 00107d9b2eea/Unemployment-Benefit-for-Lockdown-Areas-(Informal.aspx and Processes (D) to (J) obtained from information provided by MoE officials on 20/08/20.

from guidance notes obtained (C) derived from to The Ministry stated that the assessment and disbursement criteria for the informal sector unemployment benefit was clearly defined in the advertisement and application forms.
Those with valid hawkers/business license in the lockdown areas were eligible for the one off $150 payment.

MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 9 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Applicants also had to sign a self-declaration confirming that information provided was correct.
The application forms were also verified by the Ministry of Justice and the Legal Aid Commission.2 The Ministry further stated that once the completed forms were received, then MoE had a checklist to verify if all required information was provided.

Upon verification of all details, the applications were approved if the pre-set criteria were met.
The final payments were approved by the Permanent Secretary.3 It was also noted that there has been no reconciliation has been performed by the MoE to verify the accuracy of payments of government subsidy made to FNPF because there was no SOP to address this element of the disbursement process.

Even though there was a contract agreement on the acquittal processes, it did not address the reconciliation process to validate the government subsidy disbursed to FNPF.
The Ministry stated that the disbursement of phase 1 unemployment assistance was undertaken by FNPF and was guided by an agreement between the Ministry of Economy and FNPF.
Acquittals were submitted to the Ministry of Economy and FNPF undertook reconciliations to ensure that correct subsidy amounts were paid to members as per the agreement guidelines.4 The Ministry further informed us that the disbursement of assistance was undertaken by FNPF given the confidentiality of member balances and FNPFs access to employment information relating to these affected members.

It is practically difficult for MoE to undertake this reconciliation.
It is important to note that the unemployment assistance is still continuing and MoE will undertake a joint review with FNPF for the verification of acquittals.
If there are any issues of overpayments, would FNPF reimburse Government.5 6.1.2 Formal Sector We noted that FNPF had developed two separate SOPs with one specifically for Phase 1 which is based on the manual processes lodged at any of the nearest FNPF Office while for the Phase 2 directly deals with withdrawal applications through the FNPF Online Employer Portal.
These good practices by FNPF shows that there is proper accountability of different role and functions for the Phase 1 and Phase 2 payment processes of eligible applicants for this government subsidy assistance scheme.
To understand the processes and role of FNPF Officers for the processing of Early Withdrawal for Pandemic Assistance applications for members, a process flow diagram was designed on the basis of SOPs using Phase 1 manual application process provided in Appendix 2 and Phase 2 online application is shown in Appendix 3.
Recommendation MoE should ensure that the roles and responsibilities in any programme are clearly defined and demarcated for accountability purpose and all disbursement processes including the need to 2 Management response dated 11/03/21 3 Management response dated 11/03/21 4 Management response dated 11/03/21 5 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 10 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI prepare reconciliations are captured in SOPs for any future government scheme or program, of this nature.
6.2 Applicants still employed receiving Government subsidy Question No 2 Are the Formal Sector applicants eligible to receive government subsidy?

To determine whether applicants for the COVID-19 financial assistance withdrawal qualify, and the FNPF Processing Officers verified the applicant’s information with the employer.
Applicants were required to submit a letter clarifying the status of their employment (termination, or reduced wages and reducing working hours), which were also verified by the processing officer on the contra system to validate the last 3 months of employer contribution under the same employer as stated on the letter for Phase 1, withdrawals were also available for applicants employed within the lockdown areas of Suva and Lautoka.
Figure 6.2: Applicants assisted and still working under Phase The FNPF employer’s contribution is used to validate the members that had applied through the correct employer by verifying the contributions received for the member before approval is granted to eligible applicants.
1 in Some applicants for Phase 1 who had received government subsidy under the Terminated or Phase Permanently Laid-off category are still being employed during this period as we noted that the applicant’s employers’ contributions are still being disbursed to FNPF as shown in Figure 6.2 for samples extracted.
(Data source: Fiji National Provident Fund) The Ministry stated that under Phase 1 of the assistance rolled out together with FNPF, employees who had completely lost jobs or were on reduced hours in the tourism and hospitality industry were eligible to withdraw a lump sum of $1,000.

Employees affected by the lockdown and travel restrictions were also eligible for a lump sum withdrawal of $500.6 FNPF stated that due diligence had been exercised on the time application were received.
However, we rely on the confirmation on the employers affected by COVID-19 and in the lock down areas.
Even with this, FNPF is still faced with practical challenges in verifying the employer and employee confirmation and relied on the processing officers for the category that members will fall in for the COVID Government assistance.7 6 Management response dated 11/03/21 7 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 11 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI The Ministry further stated that given the uniqueness of the situation with lockdowns around the country, some level of flexibility was exercised.
It is important to note that the unemployment assistance is still continuing and MOE will undertake a joint review with FNPF for the verification of acquittals.

If there are any issues of overpayments, then FNPF reimburses Government8 Recommendation Due diligence needs to be exercised by processing and approval officers should validate members employment status prior to approval.
6.3 Formal Sector Government Subsidy Pay-out Question No 3 Was the Formal Sector government subsidy correctly calculated and paid out to members?

The primary objective of the audit work carried out was provide assurance that government subsidy has been correctly paid out to the members under the COVID – 19 financial assistances.
The application forms received and processed were generally in compliance with the SOPs where applicants had submitted all relevant documents together with the completed application forms subject to the following exceptions: Figure 6.3: Details of Double Payment of Government Subsidy for Phase 1 6.3.1 Double Payment to Eligible Applicants We noted that there were cases where applicants had received double payment after an appeal was made by eligible members who had initially received $500 and later received a second payment of $500 totalling to $1,000.
However, we also noted cases where payments had been made with amounts greater than $1,000.
Details given for Government subsidy double payments in Phase 1. in Figure 6.3 is (Data source: Fiji National Provident Fund) 8 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 12 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 6.4: Details of Double Payment of FNPF for Phase 1 Figure 6.4 is for the FNPF double payments summary while the details are provided in Appendix 4.
(Data source: Fiji National Provident Fund) We also noted double payment for Phase 2 Category 2 and Figure 6.5 provides the detail.

Figure 6.5: Details of Double Payment of Government Subsidy for Phase 2 is important The Ministry stated that appeals cases for which there was an excess payment made will be reimbursed to Government by FNPF.

It the unemployment assistance is still continuing and MOE will undertake a joint review with FNPF for the verification of acquittals.
If there are any issues of overpayments, then FNPF reimburses Government.9 to note that (Data source: Fiji National Provident Fund) 6.3.2 Government Subsidy Incorrectly Calculated and Paid Out Figure 6.6: Summary of Government Subsidy for Phase 1 We noted that the government subsidy to up eligible members financial top – assistance was incorrectly calculated resulting in the overpayment of $88,170.70 for Phase 1 and Figure 6.6 provides the summary of samples extracted.
(Data source: Fiji National Provident Fund) 9 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 13 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI We further noted that the government subsidy to top – up eligible member’s financial assistance was also incorrectly calculated for Phase 2 Category 1 and Category 2 resulting in the overpayment of $257,051.85 which is summarized in Figure 6.7.
Figure 6.7: Summary of Government Subsidy for Phase 2 CATEGORY 110 (Data source: Fiji National Provident Fund) FNPF advised that s the system business rule for phase 2 Round 1 payment was designed to cater for those members with Government Top up during payment of Phase 1.

Also, FNPF noted that 6,255 members have zero general account (GA), therefore Government made an announcement to rollover these members and pay a sum of $220.
Phase 2 Cat 1 payment was made based on the announcement with relevant system business rules that members will have full top up.

Due to the timing of report given to OAG, members had movement (interest credit 30-06-2020) to their GA balance.
CATEGORY 2 & 311 The overpayment for CATEGORY 2 & CATEGORY 3 as highlighted in the Office of Auditor General report is a result of the following: a) GA not fully exhausted- Processing Error b) RPA (System) FNPF stressed that it is currently checking line details of the cases to confirm the actual overpayment by Government and FNFP will reimburse after completion.
The Ministry stated that it is important to note that the unemployment assistance is still continuing and MoE will undertake a joint review with FNPF for the verification of acquittals.
If there are any issues of overpayments, then FNPF will reimburse Government.12 6.3.3 Duplicate Payments to Approved Applicants We noted that there were duplicate on the member’s FNPF and application ID where the results showed duplicate processing of the same application ID and in the process Government subsidy was paid out twice to these individual applicants.
For instance, there were members that had applied for $1,000 and the processing and approving officer had approved for $500 based on the eligibility of the applicant during Phase 1.

However, after the payment of $500 from member’s system then an additional $500 was paid out from government subsidy through the FNPF financial information system but this should only be $500 instead of $1,000.
10 Management response dated 11/03/21 11 Management response dated 11/03/21 12 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 14 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 6.8: Details of Duplicate Payment in Phase 1 We further noted situation where the government subsidy was incorrectly paid to someone else’s account due to input error of account numbers or because manual application forms were incorrectly scanned and uploaded to system resulting in the incorrect payment.
Refer to Figure 6.8 for details extracted.

FNPF stated that it is currently checking line details of the cases to confirm the actual overpayment by Government and FNFP will reimburse after completion.
important to note that the unemployment assistance is still continuing and these issues will be rectified.13 is It 6.3.4 Subsidy paid to Ineligible applicants Figure 6.9: Government Subsidy Paid to Ineligible Applicants in Phase 1 (Data source: Fiji National Provident Fund) We noted that there was government top-up done for eligible members that had applied for withdrawal under category 2 for sole proprietors and small enterprise owners received impacted by COVID government subsidy in the process with details in Figure 6.9.
-19 and (Data source: Fiji National Provident Fund) 13 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 15 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 6.10: Summary of Applicant Ineligible for Phase 2 Category 3 We further noted that there was government top-up paid for 285 members that were assisted under Phase 1 being affected by COVID -19 and were also assisted in the Phase 2 Category 3 which they for.
Summary is given in Figure 6.10 for applicants assisted in both Phase 1 and Phase 2 Category 3 while the details are in Appendix 5. ineligible were (Data source: Fiji National Provident Fund) FNPF stated that it is currently checking line details of the cases to confirm the actual overpayment by Government and FNFP will reimburse after completion.
It is important to note that the unemployment assistance is still continuing and these issues will be rectified.14 One notable limitation identified during our audit was the untimely availability of data because the two systems used by FNPF are not integrated.

The financial reporting system used by FNPF only stores the government subsidy component paid while the member information system only maintains the member records which is extracted separately before the analysis can be carried out.
On the same note, closure reports for each phase/category of the financial assistance payment made through the government subsidy are yet to be prepared by FNPF.

The Ministry stated that FNFP will provide the closure report for each phase to MOE.15 Recommendations • MoE should work with FNPF to develop a plan to determine and recover the subsidy that has been incorrectly paid out for each phase; and • FNPF should provide closure reports on the payments of government subsidy for each phase and category.
14 Management response dated 11/03/21 15 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 16 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 6.4 Informal Sector Unemployment Pay-out Question No 4 Was the Informal Sector unemployment benefit for workers in lockdown area processed in accordance with the Eligibility Criteria?

Those affected due to the lockdown in Lautoka, Suva and Nasinu informal sectors qualified for assistance facilitated by the MoE.
To qualify for the unemployment benefit, applicants had to be under any of the following categories: • Reside within the lockdown area and operate outside the lockdown area; • Reside outside the lockdown area but operate informal businesses within the lockdown area; and • Reside within the lockdown area and operate Informal businesses within the lockdown area16.
The guidance notes for unemployment benefit for workers in Informal Sector within Lockdown Areas requires that prior to payment of any recipient, apart from the copy of the hawkers/business license or permit, the following supporting documents needed to be submitted along with the completed form for processing: • Section F on the application form as shown in Figure 6.11 to be witnessed by a Legal Aid Officer; • Attached documents available:  Birth Certificate;  Voter ID Card or any other from if photo identification; and  Details of Bank account or M-Paisa account or TMO.
File reviews for assistance paid by MoE noted the following: • Recipients had submitted supporting letters from local municipal councils and did not hold any hawkers/business license or permit such as market vendors; • Applicants who operated and/or work for other businesses such as dairy shops, barber shops and saloons had received assistance under the unemployment benefit for workers in informal sector.
We noted that all applications had submitted completed application forms which included the witnessing of Section F of the application form by a legal officer and provision of bank accounts or M- Paisa account or TMO.
16 Appendix 1: Informal Sector Advertised Application Conditions MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 17 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Figure 6.11: Section F – Application Declaration Requirement The following anomalies were noted where applicants did not correctly declare that they had complied with the application requirements as depicted in Figure 6.11 and details are in Appendix 6: • 4 applications reviewed did not submit their birth certificates; • 8 applications reviewed did not provide valid ID’s; and • 2 applications reviewed did not provide business license/hawker’s permit.
Source: COVID-19 – Unemployment benefit for Informal Sector Programme – Application Form The Ministry acknowledged the findings and stated that applicants were required to submit birth certificates, voter ID or any other form of photo identification, copy of hawkers/business license and bank account details.

For those with a valid photo ID and hawker’s license flexibility was provided for the birth certificate given the verification by the Ministry of Justice and reliance on the voter ID.
Business license/hawker’s permit was a mandatory requirement and the processing team ensured that all applications processed had some form of proof of business attached to the application.17 The Ministry further stated that for those applicants that had no business licenses, MOE team had contacted the respective Municipal Council for verification and no application was processed without a business license.18 Recommendation Proper scrutiny of the applications received should be carried out at the centres where applications are submitted for processing.
17 Management response dated 11/03/21 18 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 18 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI 6.5 Informal Sector Calculation Reliability Question No 4 Was Informal Sector assistance correctly paid out to the recipients of the Unemployment Benefit?

The secondary objective was to identify possible fraudulent withdrawals and to provide assurance that applications were handled in accordance with the SOPs.
We noted the following anomalies where: • one applicant was paid twice as applications were lodged and processed in two separate batches; • 8 payments were made to duplicate bank accounts of which 7 were joint accounts, and 1 was confirmed to be a double payment extracted from the payment voucher details as shown in Figure 6.12.
Figure 6.12: Double payments made Source: Result Extracted from MoE The Ministry stated that the issue of double payment has been rectified with the bank and recovery has been made by Government.19 Figure 6.13: Recipients Assisted Under Both Benefits We further noted that there were recipients that had been assisted in both informal sector for the businesses had that received assistance under the unemployment benefit through the MoE $150 and also from FNPF under the financial COVID -19 assistance government subsidy to formal sectors with details in Figure 6.13 for details.
Source: Result of Auditors File Reviews The Ministry further noted that payments were paid to holders of business/hawker’s licenses and there has been instances where one person owns more than one business.20 19 Management response dated 11/03/21 20 Management response dated 11/03/21 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 19 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Recommendations • MoE should put into place measures so that applicants are not financially assisted twice by • separate schemes through different mediums; and In future, MoE should clearly define the meaning of an “Informal Sector” with appropriate parameters so that eligibility for financial assistance is correctly assessed for eligible applicants.
7.

Conclusion Overall, the results of our audit indicated that the COVID – 19 unemployment benefit subsidy assistance provided by Government and facilitated by MoE through the FNPF can be better managed by using integrated systems that can properly collect, store, manage and interpret data in real-time.

Integrated systems can also reduce the risk of errors and omissions common when manual intervention is made between more than one stand-alone system.
We also identified a number of areas where internal controls for recording and reconciliation of processed payments can be further strengthened.

Recovery of overpayments and implementation of recommendations provided in this report can assist in ensuring the integrity of the government financial assistance data in the financial and member information management systems used by FNPF.
In addition, the MoE can develop and design detailed SOPs for similar programs undertaken by government so that staffs are able carry out tasks correctly and consistently to reduce variation within a given process.

Properly designed operating procedures will assist in enhancing accountability and transparency on the use of public funds.
Processes and procedures for early of detection of payments made in error or overpayments can result in significant savings in time, effort and costs instead of determining and effecting recoveries after significant time lapse.
MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 20 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix 1: Informal Sector Advertised Conditions MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 21 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix 2: Processing of Manual Applications Source: FNPF COVID-19 Phase 1 Standard Operating Procedure MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 22 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix 3: Processing of Online Applications Source: FNPF COVID-19 Phase 1 Standard Operating Procedure MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 23 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix 4: FNPF Details of Double Payments Greater than $1,000 FNPF ID MN12114615Z MN12120643Q MN12120344E MN12703247D MN12209899T MN11713325V MN12571820B MN12944825N MN12588657K MN12934358B MN12917517Y MN12732163L MN12936642J MN12909048T MN12948461W MN12911138J MN12723881R MN12708395V MN12705266T MN12608014Y MN12717365M MN12613198R MN12606404B MN12624565D MN12615013M MN12707974G MN12616913E MN12714075M MN12618472L MN12722859T MN12424566R MN12226860M MN12309379Y MN12302384E MN12321700V MN12302748S MN12326600S MN12302761J MN12413164J MN12303649V MN12422061Z Number of Payments per FNPF ID Total FNPF Paid ($) FNPF ID 2,430 MN12619005J 2,030 MN12724048Q 1,965 MN12621142J 1,930 MN12703635N 1,930 MN12574353M 1,930 MN12596768Q 1,810.59 MN12563463H 1,786.79 MN12567417W 1,500 MN12573154A 1,465 MN12567546H 1,465 MN12600824T 1,465 MN12579198C 1,465 MN12559696G 1,465 MN12593760H 1,465 MN12594908U 1,465 MN12572132K 1,465 MN12596813T 1,465 MN12572218V 1,465 MN12578730M 1,465 MN12520447U 1,465 MN12538974R 1,465 MN12535430J 1,465 MN12502421Y 1,465 MN12542184L 1,465 MN12505935W 1,465 MN12530800Q 1,465 MN12507756G 1,465 MN12537217U 1,465 MN12508257T 1,465 MN12542082C 1,465 MN12508575H 1,465 MN12545055Q 1,465
 MN12519109P 1,465 MN12324897H 1,465 MN12306521J 1,465 MN12419748S 1,465 MN12221395K 1,465 MN12318071V 1,465 MN12221486N 1,465 MN12403740N 1,465 MN12222843R Number of Payments per FNPF ID MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE Total FNPF Paid ($) REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI FNPF ID MN12304325Y MN12501176G MN12305745B MN12323462R MN12203256T MN12206913U MN11907221M MN12016983H MN12007712Z MN12019796Z MN12125644T MN12020837W MN12205296R MN12022015N MN12208788D MN12023295B MN12216734A MN12112529W MN12218758A MN11426587B MN11706373R MN11701243B MN11120333R MN11713917W MN11214935S MN11606977S MN11406451N MN11704445E MN11413393R MN11112150M MN11516707L MN11522162E Number of Payments per FNPF ID Total FNPF Paid ($) FNPF ID 1,465 MN11707253L 1,465 MN11425441S 1,465 MN11725264T 1,465 MN11426583T 1,465 MN11725806D 1,465 MN12626039S 1,465 MN12983225H 1,465 MN12589349D 1,465 MN12607001J 1,465 MN12983674N 1,465 MN12514310F 1,465 MN11523861M 1,465 MN12210718W 1,465 MN12964664C 1,465 MN12928966Q 1,465 MN12967819W 1,465 MN12595456Q 1,465 MN12413253H 1,465 MN12985191C 1,465 MN12950641N 1,465 MN12403904S 1,465 MN12909589D 1,465 MN12406653J 1,465 MN12585762R 1,465 MN12572541C 1,465 MN12601569J 1,465 MN12529203M 1,465 MN12513820Z 1,465 MN12522668W 1,465 MN12308743N 1,065 MN12415792Z 1,065 MN12316606Y MN12577421T Total Paid Number of Payments per FNPF ID Total FNPF Paid ($) 1,465 1,465 1,465 1,465 1,465 1,465 1,350.25 1,299.95 1,271.25 1,256.62 1,251.24 1,247.12 1,233 1,223.51 1,206.21
 1,189.57 1,173.72 1,138.08 1,135 1,131.31 1,110.15 1095.16 1,090.6 1,067.08 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,038.43 210,136.63 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 25 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix 5: Ineligible Phase 2 Category 3 Applicants Detail FNPF ID Amount ($) FNPF ID Amount ($) FNPF ID Amount ($) MN12531297N MN12575896G MN12575397N MN12527872W MN12420904P MN12405658P MN12304292K MN12554656T MN12721859N MN11612985B MN12573140P MN12416626M MN11304982C MN12584487Q MN12317144R MN12507844D MN12529922V MN12124489C MN12107076E MN13004939W MN12926467L MN12700596P MN12325769D MN12209592R MN12991585K MN12574435P MN12945984P MN12557061B MN12501201D MN12541940T MN12577849H MN11619123G MN12001875X MN12722019X MN12724560A MN12305836E MN12726966Q MN12974010K MN12206504B MN12225365W MN12124558V 816.19 MN12957705Z 753.43 MN12936303L 0 MN12534963Q 0 MN12504762L 213.02 MN12925695U 1026.26 MN12416464M 551.15 MN12725360X 0 MN12411637R 0 MN12547173G 794.51 MN12310202S 885.2 MN12506952B 0 MN12426266P 0 MN12306879D 0 MN12305452L 1099.69 MN12318672X 322.2 MN12302333M 729.93 MN12312918X 1072.31 MN11723115Q 0 MN12415709L 0 MN12205198R 0 MN11605316R 0 MN12624619A 1032.8 MN12917045H 809.45 MN12931523Z 0 MN12559208R 0 MN12939471Y 221.88 989.32 942.93 0 0 0 0 0 0 0 300.2 504.1 0 0 MN13000996N 1098.02 MN12920886A 1031.11 0 MN12989270U 1077.49 MN12705957W 0 MN12731856N 1073.02 MN12730114M 936.68 MN12707763T 458.52 MN12586306U 425.08 MN12603037K 1037.63 MN12961917Q 0 MN12587751W 737.08 MN12941818A 1073.99 MN12542701E 0 MN12531454C 0 MN12517101M 0 MN12939185X 0 MN12923550G 0 MN12586298X 0 MN12507107T 1039.79 MN12535315J 783.84 MN12316134H 0 MN12519401K 1027.11 MN12995302R 1072.65 MN12512162G 0 MN12963811J 1059.76 MN12318398D 264.59 MN12951780H 570.56 MN12009570R 1064.4 MN12948709G 849.03 MN12416308X 0 MN12924307C 0 MN12701724B 1069.38 MN12915735Y 685.37 MN12548799F 875.82 MN12915551N 1078.55 MN12543772J 1030.79
 MN12585307R 1082.96 MN12622752S 0 MN12572533D 1076.88 MN12223449S 1100 MN12567246V 1045.94 MN12549626D 0 MN12501297U 0 MN12404276U 0 MN12994097M 0 MN12968823S 1041.31 MN12302211X 1070.99 MN12964502A 1069.29 MN12007867E 1051.15 MN12910717V 0 MN11622214E 0 MN12908929W 1090.7 MN12987972S 1036.91 MN12722813T 0 1054.32 1040.19 1072.22 1068.22 1071.49 1082.8 1070.82 0 936.75 1070.32 0 0 0 0 0 0 0 0 899.95 1052.42 812.01 1048.56 0 338.73 878.24 0 MN12970012T 816.65 MN12618462H 1027.72 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 26 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI FNPF ID Amount ($) FNPF ID Amount ($) FNPF ID Amount ($) MN12975585T MN12422010G MN12324512K MN12319360H MN12218458N MN12106244U MN12026778N MN12021587E MN12579107X MN12215840U MN12615700G MN12315438Y MN12920406J MN12551861D MN12940588E MN12565271J MN12539506M MN12996506N MN12975204D MN12957697C MN12943447B MN12715188F MN12552892V MN12541383M MN12419200S MN12412209Z MN12325761M MN11826574W MN12720436D MN12914175F MN12916057K MN12509107D MN12980183C MN12908064L MN12987707X MN12413951H MN12416596E MN12512617X MN12588577M MN13011089Q MN12989052J MN12966640Y MN12942666J MN12920164L 523.83 MN12957579W 723.79 MN12614182F 1041.51 MN12910677K 0 MN12532322Q 0 MN12608630W 547.61 MN12501293L 989.99 MN12563256C 1005.42 MN12538803N 879.62 MN12422627Z 0 MN12936370B 0 MN12589166V 0 MN12956674K 1085.31 MN12962493R 870.58 MN12929746F 1033.55 MN12211004L 1016.74 MN12926123C 0 MN12217550V 0 MN12581745V 0 MN12607026A 0 MN12573104K 1032.36 1008.07 0 0 892.31 1072.86 1100 832.93 919.28 0 1011.36 MN12995344H 1050.58 MN12539121R 1084.25 0 MN12919050L 0 MN12518201W 816.01 MN12965487M 1044.9 MN12925605R 887.01 857.02 0 MN12931234S 122.75 MN12604236W 1090.98 1093.81 MN12928328G 297.59 MN12414611N 0 0 MN12728010K 1098.27 MN12953292E 1085.84 0 MN12717659E 1009.86 MN12594305N 576.85 MN12589839W 0 MN12592042W 0 MN13009522N 0 MN12722693K 0 1100 0 0 MN12422117A 0 MN12729716G 1057.05 0 MN11511374J 38.33
 MN12521761F 0 MN12606186T 0 MN12510157D 0 MN12601606N 1055.91 MN12945106K 0 MN12313561M 0 MN12924782J 0 MN12946515H 484.42 MN12705351J 1019.46 MN12963460F 1055.19 MN12574338R 0 MN12527189K 675.83 MN12518180Q 595.31 MN12421295V 0 MN11722612Z 0 MN12956411B 0 MN12554849E 0 MN11301447P 1091.94 MN12426256L 343.94 MN12527537G 977.96 MN12511568F 0 MN12021184G 0 MN12616076S 1015.11 MN12016361X 223.91 MN12584190R 0 MN12704187S 1054.42 MN12595812L 0 MN12418765M 322.59 MN11723750S 0 MN11424497Q 0 MN12543492C 0 MN12508202S 0 MN12419840E 0 MN12588985C 14.29 MN12707270U 587.9 MN12408781D 1051.78 MN12708143S 0 MN11608502D 0 MN11525274G 1045.57 MN12939580D 1026.67 MN12548989L 684.51 MN12420307V 0 MN12729891A 0 MN12613908W 338.57 MN12522159Z 0 MN12581314S 0 MN12623959V 0 1071.52 640.14 0 0 563.16 1025.55 1046.77 0 0 334.09 1007.92 0 1100 0 0 0 1100 0 953.94 1059.62 0 668.56 556.75 27 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI FNPF ID Amount ($) FNPF ID Amount ($) FNPF ID Amount ($) MN12911611J MN12315594N MN12549143H MN12112049G MN12122493H MN12125616N MN12321910G MN11311706T MN12305303T MN12964664C 696.93 MN12620217J 17.44 MN12557831A 315.33 1080.99 MN12566339X 0 MN12604687F 1100 MN12965689Z 843.39 MN12209288N 1100 MN12225605Q 1100 MN12519036N 0 MN11612386D 0 MN12510056X 0 MN12562989S 297.08 MN11709598G 0 MN12560030K 1100 MN12703027P 0 MN12212947X 1100 MN12540124G 0 MN11723105M 534.25 MN11614920H 0 0 1100 0 147.11 1100 945.84 0 0 MN12226930G Total 0 MN12014199E 121.87 131,884.12 MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 28 REPORT OF THE AUDITOR-GENERAL OF THE REPUBLIC OF FIJI Appendix 6: Informal Sector Unemployment Anomalies Details Application Number Batch Number Birth Certificate Attached (Y/N) Valid IDs Attached (Y/N) Business Licence/Hawkers Permit No Birth Certificate No Birth Certificate No Birth Certificate No Birth Certificate No Valid IDs No Valid IDs No Valid IDs No Valid IDs
 No Valid IDs No Valid IDs No Valid IDs No Valid IDs 19 5 27 28 2 3 21 22 13 15 16 24 34 47 18 21 8 8 33 34 8 8 9 9 9 9 28 7 No Business Licence/Hawkers Permit No Business Licence/Hawkers Permit MANAGEMENT OF COVID-19 UNEMPLOYMENT BENEFITS FINANCIAL ASSISTANCE 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Contents Acronyms ............................................................................................................................................ 2 Executive Summary ............................................................................................................................ 3 1.
2.

3.

Introduction ................................................................................................................................ 5 Subject Matter and scope .......................................................................................................... 7 Audit Objective ........................................................................................................................... 7 4.
Audit Criteria ............................................................................................................................... 8 5.

Methodology .............................................................................................................................. 8 6.
Findings ....................................................................................................................................... 8 6.1 Question No 1 ...................................................................................................................... 9 6.1.1 Planning to implement the Program ................................................................................. 9 6.1.2 Risk Assessment ............................................................................................................... 10 6.2 Question No 2 ................................................................................................................... 12 6.2.1 Assessors not meeting the stipulated timeframe .......................................................... 12 6.2.2 Assessor not signing on the assessment sheets ............................................................ 14 6.2.3 Conflict of Interest ........................................................................................................... 14 6.2.4 Conflicting assessment qualification scores (percentage) ........................................ 15 6.2.5 Improper filing or indexing system resulting in lack of audit trail ................................. 16 6.3 Question No 3 ................................................................................................................... 18 6.3.1 Inconsistency in the loan amounts approved ................................................................. 19 6.3.1.1 Analysis for Micro Business level ................................................................................. 20 6.3.1.2 Analysis for Small Business level ................................................................................. 21 6.3.1.3 Analysis for Medium Business level ............................................................................. 22 6.3.2 Loan amount disbursed higher than amount recommended by the Assessors ........... 23 6.3.3 Loan amount disbursed higher than amount requested by the applicant ................... 24 6.3.4 Application forms not signed off by the receiving and verifying officers ................. 25 7.
Conclusion................................................................................................................................. 26 8.

Ministry of Economy’s Response ............................................................................................ 26 9.
Appendix ................................................................................................................................... 27 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 1 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Acronyms Abbreviation Meaning MoA MSME MoE MCTTT BAF FIA WIB FCEF FCCI FRCS RIE Ministry of Agriculture Micro, Small and Medium Enterprises Ministry of Economy Ministry of Commerce, Tourism, Trade and Transport Business Assistance Fiji Fiji Institute of Accountants Women in Business Fiji Commerce and Employers Federation Fiji Chamber of Commerce and Industry Fiji Revenue and Customs Service Requisition to Incur Expenditures MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 2 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Executive Summary The Office of the Auditor General carried out a compliance audit to obtain sufficient and appropriate audit evidence to form a conclusion on whether in all material aspects that the processes and internal controls surrounding the MSME Concessional Loan Package are adequate and effective to ensure that only eligible MSME businesses benefit from the initiative.
Our audit covered both the design and implementation of the programme including the review of the framework or policies and guidelines and the loan application, assessment and approval process for concessional loans registered by the Ministry of Commerce, Tourism, Trade and Transport as at 23 September 2020.

Our audit was conducted based on the information and records provided by those charged with governance for MSME Concessional Loan Package during the period the audit was undertaken.
We examined four hundred (400) approved loan applications valued at $3.2million and selected samples for eligibility testing based on the MSME Concessional Loan Package database as at 23 September 2020 which had registered 4,376 assessed loan applications.

In addition, another 325 loan applications were randomly selected to assess the turnaround time by the assessors and further analytical review was carried out on the overall loans data registered in the database to assess its accuracy.
To form a conclusion against the audit objective discussed above, we adopted the following audit questions: • Did the Ministry of Economy (MoE) and Ministry of Commerce, Trade, Tourism and Transport (MCTTT) develop an appropriate plan to support implementation of the MSME Concessional Loan program and whether the responsible Ministry to the program demonstrated that it had a well-developed understanding of the risks to program implementation and the achievement of program outcomes?
its • Did the MoE and MCTTT put in place effective and adequate measures to ensure that assessors carried out the assessment diligently and inform the Government within the stipulated timeframe?

• Are there effective and adequate measures put in place by MoE and MCTTT to ensure that the concessional loans were approved to only eligible MSME businesses?
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 3 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI The significant findings arising from this compliance audit include the following: • Assignment of roles and responsibilities between the Ministry of Economy and the Ministry of Commerce, Tourism, Trade and Transport was not clearly demarcated at the beginning of the program; • There was no documentation to support that risk assessment was performed for programme implementation to identify risks and internal controls to mitigate such risks in a systematic manner.
• The assessors’ turnaround time of seven days as stipulated in the Memorandum of Agreements was not always met; • It was not mandatory for assessors to declare any potential conflict of interest during the assessment of loan applications; • The minimum assessment qualification scores as per the assessment forms (60% for micro business and 80% for small and medium businesses) was not aligned with the approved assessment qualification scores of 50% as per the Covid 19 Concessional Loan Package Guide; • The assessors scores did not have a bearing on the loan amount approved resulting in the inconsistency in the loan amounts approved for each business.
Therefore, loan applications assessed that were ineligible or did not meet the 50% qualification score threshold were still approved; • There were instances when loan amounts that were approved by the BAF Panel was different from the amount assessed and recommended by the Assessors; and • There were instances when application forms were not signed off by the receiving and verifying officers which indicates that the vetting processes was not strictly followed hence contributing to the delay in the assessment process as the applications submitted were incomplete.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 4 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 1.

Introduction The COVID 19 pandemic has significantly impacted all businesses, including the Micro, Small and Medium Enterprises (MSME) and as such many are struggling with cash flow issues as revenue levels have declined due to weak demand.
With the tourism industry coming to a halt and its adverse flow-on effects to almost all sectors of the economy, several businesses are struggling and unemployment has been on the rise.

To secure funding through commercial banks is a challenge as MSME business viability has been greatly affected and therefore credit risk is high.
The MSME Concessional Loan Package was therefore established to assist affected businesses with immediate working capital need, expansion of existing operations and diversification into new business activities.

The Concessional Loan Package is provided to eligible MSME businesses with a 5-year repayment term, including one year grace period with no principal or interest payment.
The loan repayments will commence from the second year with the flexibility of a single annual repayment or even with payments spread over the year.

Interest calculation will be based on a simple interest method.

Apart from supporting existing MSMEs, the funding support will also be extended to new micro businesses to cater for those that may have lost jobs as a result of the COVID-19 pandemic but have the skills and professional capabilities that could be utilized to start a micro enterprise.
The funding support will be provided to genuine applicants that can demonstrate ability to effectively run a business, create employment opportunities and contribute to the overall development of the Fijian economy.

The loan disbursement and repayments will be managed by FRCS that has offices all around Fiji.

The overall process flow for the Concessional Loan Programme is depicted in Figure 1.1.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 5 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Figure 1.1: Concessional Loan Programme Process Flow (Source: Covid 19 Concessional Loan Package Guide) The Office of the Auditor General has undertaken the audit to obtain sufficient and appropriate audit evidence to enable it to form a conclusion on whether in all material aspects that the processes and internal controls surrounding the MSME Concessional Loan Package were adequate and effective to ensure that only eligible MSME businesses benefit from the initiative.
We conducted this audit in accordance with International Standards of Supreme Audit Institutions (ISSAI 4000) on Compliance Auditing.

These standard requires that we plan and perform the audit MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 6 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusion based on our audit objective.
Accordingly, we have obtained evidence that provides a reasonable basis for our finding and conclusion based on our audit objective.

The audit included test of controls and compliance with the Covid-19 Concessional Loan Package Guide, related Memorandum of Agreements and any other related laws, regulations and best practices.

2.
2.

Subject Matter and scope The Concessional loan funding is provided by Government to eligible MSME businesses with a 5 year repayment term, including 1 year grace period with no principal or interest payment.

Repayments will commence from the second year with the flexibility of a single annual repayment or even with payments spread over the year.

Interest calculation will be based on a simple interest method.
Details are provided in the figure below: Figure 2.1: Concessional Loan Funding Categories (Source: Covid 19 Concessional Loan Package Guide) To execute this funding assistance, Government entered into a Memorandum of Agreement with the Fiji Institute of Accountants (FIA), Fiji Commerce & Employers Federation (FCEF), Fiji Chamber of Commerce and Industry (FCCI) and Women in Business (WIB) on 04 June 2020 loan to carry out verification, assessments and recommend approval or otherwise of applications.
The scope of this audit includes review of approved loan applications registered by the Ministry of Commerce, Tourism, Trade and Transport as at 23 September 2020 to ensure that loans processed are in compliance to the Covid-19 Concessional Loan Package Guide and the related Memorandum of Agreements.

The audit also examined the current guideline used and made appropriate r ecommendations accordingly.

3.
3.

Audit Objective The objective of this audit was to obtain sufficient and appropriate audit evidence to enable us to form a conclusion on whether internal controls surrounding the MSME Concessional Loan Package were adequate and effective to ensure that only eligible MSME businesses benefit from the initiative.

in all material aspects that the processes and MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 7 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 4.
Audit Criteria The audit criteria for this audit are primarily derived from the approved Covid-19 Concessional Loan Package Guide and the related Memorandum of Agreements signed with each agency.

We also derived criteria from best practices in regards to the overall planning to implement the Concessional Loan program.

5.
5.

Methodology To accomplish the audit objective, we: • Reviewed the Support for MSME Cabinet paper and decision, relevant guideline, agreements and related laws applicable to the Concessional Loan Package; • Reviewed and performed analytical review of the information recorded on the MSME approved master sheet database maintained in MS-Excel by the Ministry of Commerce, Tourism, Trade and Transport.
• Reviewed key documents such as the application forms, assessment forms, related correspondences, business registration, Tax Identification Number, bank account details, business plans and cash flow projections.

• Interviewed key personnel at the Ministry of Commerce, Tourism, Trade and Transport involved in the MSME Concessional Loan Package.
• Met and interviewed the key personnel at the Business Assistance Fiji (BAF)panel which included personnel representing Fiji Commerce and Employers Federation, Women in Business, Fiji Chamber of Commerce and Industry and the Fiji Institute of Accountants which had carried out the assessment.
• Reviewed the payment voucher records at the Ministry of Economy including the Ministerial minute approvals, Requisition to Incur Expenditure (RIE) approvals and related source documents In the process of information gathering we had discussions with the responsible officers at the Ministry of Commerce, Tourism, Trade and Transport and the Ministry of Economy.

6.
Findings The Minister may, in writing and without further appropriation than this Act, authorize the transfer of any unspent amount in an appropriation category within a head of appropriation administered by a budget sector agency (other than a parliamentary body) to another appropriation category within that head of appropriation.1 A sum of $15.2 million was allocated by Government and paid to the Fiji Revenue and Customs Service for the purposes of the MSME Concessional Loan Package during the financial year ending 31 July 2020.
As of 08 October 2020, a total of $13.4million had been disbursed by the Fiji Revenue and Customs Service to 2,220 MSME enterprises.

1 Section 16 of Finance Management Act 2004.


MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 8 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 6.1 Question No 1 Did the Ministry develop an appropriate plan to support its implementation of the MSME Concessional Loan program and whether the Ministry of Economy and Ministry of Commerce, Tourism, Trade and Transport demonstrated that it had a well-developed understanding of the risks to program implementation and the achievement of program outcomes?
6.1.1 Planning to implement the Program The Ministry of Economy designed the program and developed the implementation plan for the MSME Concessional Loan Package which was documented in Cabinet paper [CP (20) 112].
Ministry of Economy also carried out consultations with the Ministry of Commerce, Trade, Tourism and Transport, Ministry of Employment, Productivity and Industrial Relations, Reserve Bank of Fiji, Fiji Institute of Accountants, Fiji Commerce and Employers Federation, Fiji Chamber of Commerce and Industry, Women In Business, Fiji Revenue & Customs Services and the Office of the Solicitor- General.
Following numerous consultations with these stakeholders, Ministry of Economy designed the Concessional Loan Package programme and advised Government that the COVID-19 crisis has significantly affected the MSME businesses and as such many are struggling with cash flow issues as revenue levels have declined due to weak demand and therefore are finding it increasingly difficult to continue doing business.
Subsequently, Government through a Cabinet decision dated 04 June 2020 agreed to the Concessional Loan Package funding to be provided to Micro, Small and Medium Enterprises (MSME’s) and resolved that a Memorandum of Agreement to be executed with the Fiji Institute of Accountants, Fiji Commerce and Employers Federation, Fiji Chamber of Commerce and Industry and Women in Business for the assessment, verification and approval of MSME loan applications and the Fiji Revenue & Customs Service for the disbursement and collection of loans.
According to the Ministry of Economy (MOE), the Government for the first time had engaged private sector professional bodies with the likes of Fiji Institute of Accountants (FIA), Fiji Commerce and Employers Federation (FCEF), Fiji Chamber of Commerce and Industry (FCCI) and Women in Business (WIB) in such a manner and scale to carry out verification, assessments and recommend approval or otherwise for MSME loan applications.
The arrangement was formalized with the signing of agreements with these agencies.
While MOE was involved in the initial planning and design of the programme, the Ministry of Commerce, Tourism, Trade and Transport (MCTTT) was tasked to provide Secretariat support and business advisory for applicants and be the lead Ministry in the rollout of the programme which involved receiving and sorting of applications, maintaining records and storage of all loan application forms received and disseminating it to the respective organizations engaged to carry out the assessment of the loan applications.
In addition, MCTTT’s role was also to advise the FRCS of the approved loan applications for disbursement of funds.

MCTTT also developed the “Covid19 Concessional Loan Package Guide” which was approved by the Permanent Secretary of MCTTT on 15 July 2020 to act as guideline to support the implementation of the program.
The guide describes the process used for the processing, assessment, disbursement, and collection of funds under Micro, Small, Medium Enterprises MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 9 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI (MSME) COVID-19 Concessional Loan Package (Packages).

However, wet noted that the guide was not effectively used during the processing of the loan applications as discussed in detail in section 6.2 of this report.
Moreover, there was no Memorandum of Agreement between the Ministry of Economy and the Ministry of Commerce, Tourism, Trade and Transport to clearly demarcate the roles and responsibilities of each Ministry in rolling out the programme.

Absence of identification of roles and responsibilities of each party can cause accountability issues in terms of the delivery and outcome of the program.
6.1.2 Risk Assessment For any Government program which involves public funds, it is imperative that a good practice with well–documented risk assessment is performed prior to its implementation.

Proper risk assessment will assist in identifying any exposures and necessary risk mitigation required to safeguard the interests of government.
Cabinet was advised by the Ministry of Economy that there was a case to provide concessional loans to MSME businesses that were affected by financial pressures and were facing serious cash flow issues as securing of loans from commercial banks and licensed credit institutions is a challenge as business viability has been adversely affected and risk of default is high.
The MSME concessional financial support aimed to assist MSMEs businesses with immediate working capital needs, expansion of existing operations and diversification into new business activities.

We were informed by Ministry of Economy that government had been fully mindful of the risks associated with lending to the MSME business segment as their business viability was threatened and thus default risk was very high.
The financial institutions would not lend to this group and business closure was the only option if government did not intervene to keep them afloat.

This was critical to safeguard employment and more importantly for economic revival when things normalize.

The initiative has been approved by Cabinet and endorsed by Parliament as part of the budget process.
Funding approved in the 2019-2020 COVID_19 Response budget followed the normal appraisal, selection and risk assessment/mitigation process to ensure effective implementation and realization of the broader policy intent.

However, during our audit, we did not find documentation of the appraisal, selection and risk assessment/ mitigation and management strategies for the implementation of the programme.
The areas where risks may exist for such programmes includes risks relating to eligibility and assessment, availability of funds and compliance.

Absence of proper risk assessment will not enable the MOE to identify potential risks associated with the program and put in place measures to mitigate them early in the program.
Moreover, review of the Cabinet Paper[CP (20) 112] dated 04/06/2020 noted that the Ministry of Economy did not include in its advice to government the default rate data for MSME loans that would have assisted in better decision-making and assessment of financial risks associated with establishing concessional loans programs to assist MSME businesses.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 10 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI We reviewed the (%) non-performing loans data over the past 15 years provided by Reserve Bank of Fiji which is depicted in the graph below: Figure 6.1: % Non-performing loan to gross loans % Non- performing loans to total gross loans 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Nonperforming loans to total gross loans In response, the MoE indicated that extraordinary situation and the overall policy intent of the loan support was for keeping the MSMEs afloat at this point in time as the formal banking sector would not lend to this segment due to the obvious risks and the current circumstances.
As such, public sector intervention was justified and approved by Parliament.

This was never meant to be a competing alternative to commercial bank loans.

The Ministry also indicated that to mitigate the above risks, the Ministry of Commerce, Tourism, Trade and Transport was tasked to monitor the recipients to determine the usage of funds and to work closely with other agencies for monitoring purposes.
These could include business trainings to the recipients to ensure they understand their responsibility as a MSME to repay the loan and how to manage their business.

MoE also stated that Government will exhaust all opportunities available to allow the recipient to repay the loan.

Recommendations 1.
Recommendations 1.

For programmes where different government agencies are involved, the roles and responsibilities for each Ministry or agency should be clearly demarcated to ensure the effective rollout and accountability of the programme.

2.

Proper risk assessment should be carried out and documented with mitigation measures to address risks associated with implementing the programme.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 11 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 6.2 Question No 2 Did the Ministry of Economy and Ministry of Commerce, Tourism, Trade and Transport put in place effective and adequate measures to ensure that assessors carried out the assessment diligently and inform the Government within the stipulated timeframe?
6.2.1 Assessors not meeting the stipulated timeframe The Assessor must within 7 days of receiving the complete form, inform the Government in writing of eligible Applicants.
2 The Assessor must accurately disseminate awareness of the programme, receive and verify the eligibility of applicants in accordance with the eligibility criterion, assess the applications in accordance with the assessment criteria and within 7 days of receiving the complete form, provide written confirmation to the government of eligible applicants.
3 Contrary to the above requirements, based on the review of a sample of applications, it was noted that there were instances when the Assessors took more than seven days to complete the assessment of the completed application forms.
Based on the September 2020 listing of 4,376 assessed applications, the application forms were distributed to the respective assessors as follows: Figure 6.2: Distribution of application forms by assessors In most instances, the assessors took between 10 to 59 days to complete the assessment and submit the assessment forms to government.

We noted that Assessor 2 and Assessor 3 were not able to meet the stipulated assessment timeframe for all application forms assessed.
2 Section 4.1 of the Memorandum of Agreement 3 Section 5.1 of the Memorandum of Agreement MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 12 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Refer to figure below for the average number of days taken by the assessors to process applications: Figure 6.3: Average no.

of days taken by assessors Refer to Appendix 1 for details.
Discussion with representatives of the Business Assistance Fiji panel that were involved in the assessment of the loan applications noted that the seven days turnaround time relates to the individual assessors turnaround time for assessing a loan application form and it does not take into consideration the date the batch of the application forms were actually dispatched to the organisation given the huge number of application forms received.
We also noted that incomplete loan applications also contributed to the delay in the assessment of loan applications which indicates weaknesses in the verification process in ensuring that application forms submitted are complete.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 13 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 6.2.2 Assessor not signing on the assessment sheets Audit review of approved loan applications noted instances where assessment forms were not signed by the assessors and most applications had a soft copy marking sheet which did not include any signature of assessors to indicate their endorsement.

Figure 6.4: Summary of Assessment forms not signed by the assessors Refer to Appendix 2.0 for examples.
The current guideline also does not provide guidance on the signing of the assessment sheets hence the inconsistency in the approach taken by the assessors when filling out and signing the assessment forms.

In the absence of signature, there was no evidence to indicate that a loan application was assessed and endorsed by an assessor.
6.2.3 Conflict of Interest The Assessor warrants that, to the best of its knowledge after making diligent inquiry, at the date of signing this Agreement no conflict of interest exists or is likely to arise in the performance of this agreement.
If during the performance of this Agreement a conflict of interest arises, or appears likely to arise, the Assessor must notify the Government immediately in writing, make full disclosure of all relevant information relating to the conflict and take such steps as the Government reasonable requires resolving or otherwise dealing with the conflict.
4 The MCTTT advised that the assessors have an understanding that if they have any conflict of interest issue, than that application is given to the MCTTT as Secretariat who then allocates that particular application to another assessor.

It was noted from discussions with the Business Assistance Fiji (BAF) Panel, that conflict of interest was discussed in the meetings and the assessors would call out if there were conflict of interest issues.
4 Section 8 of the Memorandum of Agreement between the Individual Assessor Organizations and the Ministry of Economy MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 14 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Based on the discussion with BAF panel, it was evident that there is no compulsory requirement for assessors to complete a Conflict of Interest declaration form.
In the absence of a signed declaration, the risk of conflict of interest still exists which may impair the credibility of the process.

6.2.4 Conflicting assessment qualification scores (percentage) Assessors must ensure that all applications are scrutinized in respect of the eligibility criteria and determine whether applicant meets eligibility criteria for the issuance of loan.
Assessors will determine the score of all application which is 50% pass and submit all application to MCTTT containing applicants that have either been approved or declined.

5 The guideline required a 50% pass in terms of the actual scores attained against the overall assessment scores for applications to be eligible to be submitted to MCTTT for further processing and approval.
However, the actual assessment forms used by the Assessors had a different qualification scores and percentage depending on the type of business.

These percentages were based on the overall scores given by the assessors for each application which had a different minimum score for each type of applications.

We noted that the guide was approved in July 2020 but minimum qualification scores and percentages were not aligned to the assessment sheets qualification scores and 50% threshold.
Refer to figure below for details: Figure 6.5 Details of Qualification scores as per assessment forms (Source: Auditors Analysis of the Assessment forms) Based on the comments received from MOE during audit, it was indicated that the guideline is an internal document for the Ministry of Commerce Trade, Tourism and Transport which can be amended as and when the need arises to reflect new issues that were not anticipated during the planning stage.
Initially, the assessors decided to have a qualifying score of 60% as the qualifying mark during the planning stage.

Hence the assessment forms were designed accordingly.

However, the qualifying score was relooked at and the assessors made a determination that the qualifying 5 Covid-19 Concessional Loan Package Guide MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 15 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI score to be 50% for all applications.
Hence, any score between 50 – 59% were referred to the BAF Panel for ratification.

Due to the ability to alter the criteria for approval, there is a high a risk of subjectivity in the final approval process resulting in inconsistencies.
6.2.5 Improper filing or indexing system resulting in lack of audit trail The Assessor must accurately disseminate awareness of the programme, receive and verify the eligibility of Applicants in accordance with the eligibility criterion, assess the applications in accordance with the assessment criteria and within 7 days of receiving the complete form, provide written confirmation to the government of eligible applicants.
6 Upon receiving the applications from the assessors by MCTTT, the approved details are entered in the Approved Master sheet.

The applications are then thoroughly checked again by MCTTT to ensure that all the required documents are attached before the details of approved applications are sent via email to FRCS in batches for disbursement.

However, it was noted that proper indexing and filing system is not in place to ensure that the application forms are easily identified and located.
As result, application forms were not properly filed and in some instances application forms for the Micro, Small and Medium business types were filed together.

We could not ascertain the date the completed application forms were received from the applicants, hence, there is a possibility that application forms may have been received after the due date.
Moreover, there was a lack of audit trail to track the application forms dispatched to the assessors and those returned to the MCTTT after the assessments were carried out by the assessors.

It was noted that the application forms were given in batches to assessors (secretariat), but assessed batches were returned in parts and the MCTTT is continuously updating the excel database to track which applications are pending from the assessors.
Upon enquiry with MCTTT, we could not obtain details of the applications due to be received from the assessors which indicates that the current system of using the database in MS-Excel might not be working effectively.

Ministry of Economy indicated that MCTTT has introduced a filing and index system.

However, the Ministry further stated that whilst the indexing has commenced, the priority remains in facilitating the approved applications from the assessors to FRCS and due to the influx of applications.
Working on filing and indexing requires dedicated staffing and resources to undertake this administrative task which will be addressed by recruiting few volunteers to carry out indexing, filing, scanning and sorting of documents towards the end of the programme.

6 Section 5.1 of the Memorandum of Agreement MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 16 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Recommendations 1.
Assessors should be reminded of their obligation as per the Memorandum of Agreement to review the loan applications within the stipulated timeframes and if the timeline is not practical, the assessment turnaround time should be reviewed accordingly; 2.

The full listing of the assessors from each institution involved in the assessment process should be submitted to the MCTTT for record purposes and it should be made mandatory for personnel involved in the programme to declare their interest.
To achieve this, MCTTT should develop a conflict of interest form for all assessors to complete and submit to the Ministry; 3.

The receiving and verification of loan application process should be strengthened to ensure that complete application forms are submitted with all required documents; 4.

MCTTT should ensure that assessment forms are duly signed by the respective assessors; 5.
A comprehensive review of the programme should be undertaken by the MCTTT to ensure that all potential risks are addressed and the requirements such as qualifying percentage are standardized; and 6.

The MCTTT should implement a proper filing and indexing system to ensure that loan records are properly kept for ease of reference when required.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 17 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 6.3 Question No 3 Are there effective and adequate measures put in place by MCTTT to ensure that the concessional loans are made for only eligible MSME businesses?
The Concessional loan package assistance is targeted at the new and existing micro enterprises, existing small and medium enterprises and the MSMEs are defined according to their concessional loan eligibility as depicted in the following table: Table 6.1: Concessional Loan Package Assistance Product 1 Product 2 Product 3 Eligibility Purpose Maximum funding eligibility Interest rate Repayment term Requirements Both new and existing micro enterprises with gross turnover less than $50,000.
Existing small enterprises with gross turnover between $50,000 to $300,000 Existing medium sized enterprises with gross turnover between $300,000 to $1,250,000 Funding available for working capital support and capital investment.

Funding available for working capital support and capital investment.

Funding available for working capital support and capital investment.

$7,000 $14,000.

$21,000 Concessional interest rate of 0.5 % per annum Concessional interest rate of 1.0 % per annum.
Concessional interest rate of 1.5 % per annum.

5 years, inclusive of 1 year grace period (No principal and no interest).

5 years, inclusive of 1 year grace period (No principal and no interest).

5 years, inclusive of 1 year grace period (No principal and no interest).

Business registration, Tax Identification Number, Bank Account Details, Business Plan, Cash flow projections, Completed application form.
Business registration, Tax Identification Number, Bank Account Details, Latest Financial Statements, Business Plan, Cash flow projections, FNPF compliant as at December 2019, FRCS compliant as at December 2018, Completed application form.

Business registration, Tax Identification Number, Bank Account Details, Latest Financial Statements, Business Plan, Cash flow projections, FNPF compliant as at December 2019, FRCS compliant as at December 2018, Completed application form.
(Source: Covid 19 Concessional Loan Package Guide) To assess whether the measures put in place by the MCTTT to ensure that the concessional loans made for only eligible MSME businesses, we reviewed a total of 400 approved loan applications MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 18 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI selected from the “approved master sheet” database dated 23 September 2020 against the eligibility criteria.
The loan application forms were selected from the total of 4,376 MSME loan applications registered in the database maintained by the Ministry.

Out of the 4,376 registered applications, 3,198 were approved applications, 1,134 applications were declined, 16 applications were conditionally approved and 28 applications under suspense due to more due diligence checks to be carried out.
As of 08 October 2020, a total of $13.4million had been disbursed by the Fiji Revenue and Customs Service to 2,220 MSME enterprises.

Audit review of a sample of loan applications noted the following weaknesses in the overall process: 6.3.1 Inconsistency in the loan amounts approved The comparative analysis of the loan amounts approved for micro, small and medium enterprises as registered in the database noted that the assessors’ scores when expressed as a percentage ranged from 29 to 99%.
Refer to table below for summary of the registered applications; Table 6.2: Summary of Registered Applications MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 19 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Based on our review, we noted that the assessors’ scores did not have any bearing on the loan amount approved.

Refer to graph below for a snapshot of the percentage scores versus the loan amounts approved which shows the inconsistency in the loan amounts approved.
Figure 6.6: Summary of Approved Applications for all Business Types Applications approved for all business types e r o c S e g a t n e c r e P 120% 100% 80% 60% 40% 20% 0% 0 0 9 $ 0 0 5 2 $ , 0 0 0 3 $ , 0 4 6 3 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 5 $ , 0 0 0 5 $ , 0 0 0 5 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 2 9 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 1 2 $ , Amount approved 6.3.1.1 Analysis for Micro Business level For the Micro business level, the percentage scores ranged from 29% to 99%, and the loan amount approved ranged from $900 to $7,000.
Refer below for the inconsistency in the percentage scores to the loan amount approved for the micro business loans approved.
Table 6.3: Details of Micro Business Loans MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 20 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Figure 6.7: Details of Approved Micro Business Loans Applications Approved for Micro Businesses e r o c S e g a t n e c r e P 120% 100% 80% 60% 40% 20% 0% 0 0 9 $ 0 0 5 2 $ , 0 0 0 3 $ , 0 0 5 3 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 5 $ , 0 0 0 5 $ , 0 0 0 5 $ , 0 0 0 6 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , Amount approved 6.3.1.2 Analysis for Small Business level For the Small business level, the percentage scores ranged from 45% to 89%, however, the loan amount approved ranged from $3,500 to $14,000.
Refer below for the inconsistency in the percentage scores to the loan amount approved for the small business loans approved.
Table 6.4: Details of Small Business Loans MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 21 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Figure 6.8: Details of Approved Small Business Loans Applications approved for Small businesses e r o c S e g a t n e c r e P 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 0 5 3 $ , 0 0 0 4 $ , 0 0 0 4 $ , 0 0 0 5 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 7 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , 0 0 0 0 1 $ , , , , , 0 0 0 0 1 $ 0 0 0 4 1 $ 0 0 0 4 1 $ 0 0 0 0 0 0 4 4 1 1 $ $ Amount Approved 0 0 0 4 1 $ 0 0 0 4 1 $ , , , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 6.3.1.3 Analysis for Medium Business level For the Medium business level, the percentage scores ranged from 50% to 91%, however, the loan amount approved ranged from $4,000 to $21,000.
Refer below for the inconsistency in the percentage scores to the loan amount approved for the medium business loans approved.
Table 6.5: Details of Medium Business Loans MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 22 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Figure 6.9: Details of Approved Medium Business Loans Applications Approved for Medium Businesses e r o c S e g a t n e c r e P 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 0 0 4 $ , 0 0 0 7 $ , 0 0 0 0 1 $ , 0 0 0 4 1 $ , 0 0 0 4 1 $ , 0 0 0 5 1 $ , 0 0 0 5 1 $ , 0 0 0 5 1 $ , 0 0 0 5 1 $ , 0 0 0 5 1 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , 0 0 0 1 2 $ , Amount approved The MOE indicated that the amount approved was based on several factors which is based on professional judgement and considerations including the purpose of the loan, the nature of the business and sector which the business operates in, needs and requirements to commence or continue business, employment status of the applicant, whether being a new or existing business and the location of the business.
Further discussions with the Business Assistance Fiji panel revealed that loan amounts approved were based on some common understanding, discussions and consideration of factors such as the type of business, the location and the quoted amounts etc.

The Panel advised that it had synchronized and standardized the amounts approved accordingly.
The assessment forms and scoring system was only used to ensure that the minimum requirements are met and assisted the assessors to tally up the points and see whether they qualify.

Their assessment did not have any bearing on the loan amount approved and therefore there were instances where amount approved by the BAF Panel was different from what assessors had initially approved.
We noted that there was no documentation on the basis on which the BAF Panel approved the loans which were different from amount approved by assessors.

In absence of appropriate documentation, there is a risk that process for final approval by the BAF Panel may not have been objective and consistent.
6.3.2 Loan amount disbursed higher than amount recommended by the Assessors Our review of the loan applications and relevant assessment forms noted that the loan amounts approved and disbursed by the Fiji Revenue and Customs Services were higher than the loan amounts recommended by the assessors.
This was prevalent for Micro business applications where a number of applications out of the total 400 application samples reviewed were found to have been approved and paid a higher amount despite the assessor’s recommendation for a lower loan amount.

Refer to Appendix 3.0 for details.


From the discussions with responsible officers at the Ministry of Commerce, Transport, Tourism and Trade and review of the minutes of the “Business Assistance Fiji Selection Panel” ,we noted that the BAF selection panel had overturned the decisions of the individual assessors in some cases.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 23 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI The reasons and justification for overturning each assessor’s recommendations could not be obtained as detailed discussions for each case were not properly documented in the minutes of meetings.

According to MOE, some of the general reasons why the Business Assistance Fiji panel may overturn the decision of an individual assessor are as follows: i.

Business impacted by COVID-19 or not.

ii.


The proposed loan utilization, is it operational expenditure, capital expenditure or both?

ii.

The nature of business and the sector which the business operates in.

iii.

Is the applicant currently employed elsewhere?

iv.

Quotations that was provided.

v. New business or existing business.

vi.

Location of business.


Furthermore, the assessment forms and scoring system was only used to ensure that the minimum requirements are met and assisted the assessors to tally up the points and see whether they pass and did not have any bearing on the loan amount approved.
The above practise defeats the purpose of the assessment process and the use of the points scoring system in the assessment form which makes an assessment of the businesses ability to service its debt and also standardize the assessment process and brings fairness and objectivity into the process.

Individual assessors have objectively assessed each applications based on the information provided in the applications forms and the assessors have provided their scores accordingly.
We also noted that the assessment form acts as a checklist for all required documentation, and also requires the assessors to carry out detailed assessment on the organizational, marketing and financial plans which are key areas of consideration when assessing the businesses ability to repay the loan.

6.3.3 Loan amount disbursed higher than amount requested by the applicant From the sample reviewed, we noted instances where the approved loan amount was higher than the loan amount applied by the applicant.
It was noted that the maximum eligible amount of $7,000 was approved despite the applicants requesting for a lower amount.

Refer to Table below for details.


Table 6.6: Details of Loans Approved More Than Amount Requested TIN Number Business Names % Score Amount as per Application Amount Approved Observations 13548xxxx Business A 80% $6,689.85 $7,000 Loan Amount Requested was 20557xxxx Business B 57% $3,704 $6689.85 but was approved $7,000 $4,000 Loan amount requested $3,704, however was approved and paid $4,000.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 24 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI The basis on which higher loan amounts were approved were not properly documented in the assessment forms and in the minutes of panel meetings.

6.3.4 Application forms not signed off by the receiving and verifying officers Officers receiving the loan application forms must ensure that the form and the business plan are completely filled and that the required documents are attached.
The receiving officer must ensure that he/she signs off on the required field and slot in the date the application form was received.

Officers verifying the application forms must ensure that the application is complete and that all mandatory documents are attached.

The verifying officer must ensure that he/she signs off on the field provided.
If an application is incomplete, the receiving officer must immediately request the applicant to complete the application form, attach the mandatory documents and resubmit the application whichever is applicable.

7 Audit review of application forms noted several instances where the application forms had not been signed off and dated by receiving and verifying officers.

In some cases, the forms were only signed off by either of the officers.
As a result, we could not ascertain the date the applications were received and ascertain whether these applications had gone through the verification process to ensure that the application form was complete and all mandatory documents were attached before it is submitted for assessment.

MOE indicated that there were also drop boxes provided by Assessor 3 in selected offices and applications received through the drop boxes could have been the ones not verified or signed-off.
The above finding shows non-compliance with the established process and indicates the weaknesses in the controls over the receipt and verification process of application forms.

Recommendation MCTTT should review the current guideline to address the weaknesses noted above including the inconsistency in the amounts approved and ensuring that only eligible applicants are approved.
7 Covid-19 Concessional Loan Package Guide MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 25 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 7.

Conclusion Based on our audit and evidence gathered, we conclude that although the MSME Concessional Loan Package programme was implemented with its intended intent, there were instances where control measures were not effective to mitigate the risks associated with the programme.
In addition, differences in decisions made and absence of documented justification over the loan amount approved between the assessors and the BAF Panel indicates that communication could be improved during the processing of applications for loans.

Absence of comprehensive risk assessment to identify potential risks and how these could have been mitigated reflects that more awareness needs to be done on risk in planning for the delivery of such programmes.

8.
8.

Ministry of Economy’s Response The audit findings and recommendations is noted by the Ministry of Economy.
However since the programme is near to completion, the Ministry will consider all recommendations when undertaking similar programmes in the future.8 A Memorandum of Agreements was signed with the Fiji Institute of Accountants, Fiji Commerce and Employers Federation, Fiji Chamber of Commerce and Industry and Women in Business for the assessment, verification and approval of MSME loan applications and the with the Fiji Revenue & Customs Service for the disbursement and collection/recovery of loans.
The Ministry of Commerce, Trade, Tourism and Transport provided the Secretariat support.

8 Exit Meeting held with Ministry of Economy on 12/03/21 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 26 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI 9.

Appendix Appendix 1.0: Examples of Loan Applications where Assessors did not meet the 7 days turnaround time TIN Number Business Names Initials Date Loan Approved No.
of days taken Date received by Assessors Assessor 2 19556xxxx RT & T 16/07/2020 17/09/2020 19374xxxx NT 16/07/2020 09/09/2020 14978xxxx VE 16/07/2020 17/09/2020 20521xxxx BI 16/07/2020 17/09/2020 19537xxxx AC 16/07/2020 17/09/2020 02363xxxx LE 16/07/2020 17/09/2020 19756xxxx ASC 16/07/2020 17/09/2020 20126xxxx KI 16/07/2020 17/09/2020 22163xxxx NC 16/07/2020 17/09/2020 18882xxxx PJMC 16/07/2020 17/09/2020 18348xxxx CLS 16/07/2020 17/09/2020 19921xxxx NSD 16/07/2020 17/09/2020 12610xxxx LY 16/07/2020 09/09/2020 02197xxxx EBI 16/07/2020 09/09/2020 20744xxxx THC 16/07/2020 17/09/2020 16362xxxx BBS 16/07/2020 17/09/2020 11633xxxx SSF 16/07/2020 19/08/2020 50540xxxx MG (Fiji) Pte Limited 16/07/2020 12/08/2020 19377xxxx GBC 16/07/2020 11/09/2020 03202xxxx IT(Fiji) 16/07/2020 11/09/2020 12446xxxx V FC S 16/07/2020 19/08/2020 63 55 63 63 63 63 63 63 63 63 63 63 55 55 63 63 34 27 57 57 34 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 27 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 50150xxxx ERC Pte Ltd 16/07/2020 17/08/2020 11547xxxx SF 16/07/2020 11/09/2020 22217xxxx DCS 16/07/2020 19/08/2020 18344xxxx JPS 16/07/2020 17/08/2020 50344xxxx NTS Pte Ltd 16/07/2020 17/08/2020 11463xxxx PSC 16/07/2020 11/09/2020 19420xxxx KR 16/07/2020 11/09/2020 01130xxxx ANF 16/07/2020 19/08/2020 11160xxxx MKWF 16/07/2020 12/08/2020 16341xxxx AR& T 16/07/2020 12/08/2020 02186xxxx 786 DDS 16/07/2020 11/09/2020 11293xxxx ES & M 16/07/2020 19/08/2020 19353xxxx DRS 16/07/2020 10/09/2020 13591xxxx KKS 16/07/2020 10/09/2020 20317xxxx FS& ACC 16/07/2020 10/09/2020 20206xxxx JT 16/07/2020 10/09/2020 18859xxxx KB 16/07/2020 10/09/2020 12142xxxx AOVM 16/07/2020 10/09/2020 22208xxxx KFS 16/07/2020 10/09/2020 02291xxxx NG 16/07/2020 10/09/2020 11412xxxx ZM 16/07/2020 10/09/2020 18147xxxx TWKS 16/07/2020 10/09/2020 20377xxxx TGD 16/07/2020 15/09/2020 14270xxxx NF 16/07/2020 15/09/2020 12342xxxx SLI 16/07/2020 15/09/2020 32 57 34 32 32 57 57 34 27 27 57 34 56 56 56 56 56 56 56 56 56 56 61 61 61 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 28 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 19025xxxx YKM 16/07/2020 15/09/2020 23151xxxx TOA 16/07/2020 11/09/2020 18340xxxx BCS 16/07/2020 12/08/2020 20658xxxx STMM 16/07/2020 11/08/2020 19089xxxx FSM 16/07/2020 25/09/2020 14764xxxx AI 16/07/2020 25/09/2020 25035xxxx YR 16/07/2020 11/09/2020 11492xxxx AMS 16/07/2020 12/08/2020 02435xxxx FSK 16/07/2020 19/08/2020 21017xxxx PPTS 16/07/2020 12/08/2020 19686xxxx ISJ&GBW 16/07/2020 15/09/2020 02303xxxx 20270xxxx LE TC 16/07/2020 15/09/2020 16/07/2020 15/09/2020 13298xxxx BI 16/07/2020 15/09/2020 13683xxxx IPD 16/07/2020 15/09/2020 08129xxxx TDH 16/07/2020 19/08/2020 25017xxxx VCWS 16/07/2020 19/08/2020 23139xxxx WRF 16/07/2020 25/09/2020 12239xxxx LC 16/07/2020 25/09/2020 22427xxxx 18555xxxx RI BI 16/07/2020 25/09/2020 16/07/2020 25/09/2020 12455xxxx TFV 16/07/2020 25/09/2020 20097xxxx VE 16/07/2020 21/09/2020 11773xxxx FBC 16/07/2020 25/08/2020 13456xxxx JM 16/07/2020 21/09/2020 61 57 27 26 71 71 57 27 34 27 61 61 61 61 61 34 34 71 71 71 71 71 67 40 67 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 29 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 11580xxxx AS 16/07/2020 25/08/2020 20460xxxx TMT 16/07/2020 21/09/2020 19390xxxx MMPS 16/07/2020 25/08/2020 20557xxxx TE 16/07/2020 25/09/2020 12190xxxx VUE 16/07/2020 25/09/2020 19888xxxx WLC 16/07/2020 25/09/2020 11225xxxx KFS 16/07/2020 25/09/2020 13538xxxx MC 16/07/2020 25/09/2020 11922xxxx KE 16/07/2020 25/09/2020 18559xxxx NC&MS 16/07/2020 25/09/2020 20106xxxx VK 16/07/2020 10/09/2020 02476xxxx AKC 16/07/2020 10/09/2020 16090xxxx DE 16/07/2020 10/09/2020 08068xxxx FB&C 16/07/2020 10/09/2020 19436xxxx SS&V 16/07/2020 10/09/2020 16385xxxx RHD&BS 16/07/2020 10/09/2020 14688xxxx NW 16/07/2020 10/09/2020 18817xxxx RE 16/07/2020 10/09/2020 19869xxxx TC 16/07/2020 10/09/2020 13435xxxx NA 16/07/2020 10/09/2020 19915xxxx SC 16/07/2020 10/09/2020 19496xxxx SMS 16/07/2020 10/09/2020 20254xxxx MFF 16/07/2020 10/09/2020 13385xxxx SB 16/07/2020 10/09/2020 11405xxxx MKD 16/07/2020 10/09/2020 40 67 40 71 71 71 71 71 71 71 56 56 56 56 56 56 56 56 56 56 56 56 56 56 56 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 30 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 01232xxxx RC&P 16/07/2020 10/09/2020 11067xxxx CDE 16/07/2020 10/09/2020 07111xxxx MGD 16/07/2020 10/09/2020 19715xxxx WSSB 16/07/2020 10/09/2020 06036xxxx GL 16/07/2020 25/08/2020 13480xxxx NK 16/07/2020 25/08/2020 22213xxxx RF 16/07/2020 25/08/2020 14596xxxx NC 16/07/2020 01/09/2020 18504xxxx RC 16/07/2020 01/09/2020 17085xxxx VQC 16/07/2020 15/09/2020 11352xxxx GM 16/07/2020 17/09/2020 20078xxxx NC 16/07/2020 17/09/2020 13192xxxx MCI 16/07/2020 17/09/2020 18425xxxx RKS 16/07/2020 10/09/2020 23089xxxx MDS 16/07/2020 10/09/2020 19257xxxx NMB 16/07/2020 10/09/2020 01150xxxx MA'sJS 16/07/2020 10/09/2020 04192xxxx DAM 16/07/2020 10/09/2020 18444xxxx RI 16/07/2020 10/09/2020 13500xxxx IMFS 16/07/2020 10/09/2020 11797xxxx ME 16/07/2020 10/09/2020 50163xxxx NPTPL 16/07/2020 17/09/2020 50566xxxx MFPL 16/07/2020 17/09/2020 50538xxxx SSSPL 16/07/2020 17/09/2020 22148xxxx ST (Fiji) 16/07/2020 17/09/2020 56 56 56 56 40 40 40 47 47 61 63 63 63 56 56 56 56 56 56 56 56 63 63 63 63 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 31 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 23176xxxx PWI 16/07/2020 02/10/2020 20229xxxx VFF 16/07/2020 01/09/2020 13541xxxx CT 16/07/2020 01/09/2020 01093xxxx AC 16/07/2020 01/09/2020 19192xxxx VSC 16/07/2020 01/09/2020 20218xxxx TE 16/07/2020 01/09/2020 14731xxxx NK 16/07/2020 17/09/2020 03526xxxx LCC 16/07/2020 15/09/2020 12251xxxx RI 16/07/2020 01/09/2020 20266xxxx MHWR 16/07/2020 15/09/2020 08062xxxx NJ&FW 16/07/2020 17/09/2020 23093xxxx RVI 16/07/2020 15/09/2020 19783xxxx VM&BT 16/07/2020 15/09/2020 20558xxxx MBSl 16/07/2020 01/09/2020 02327xxxx NM 16/07/2020 01/09/2020 20297xxxx TE 16/07/2020 01/09/2020 18642xxxx VC 16/07/2020 01/09/2020 20148xxxx M&JRS 16/07/2020 01/09/2020 14749xxxx JC 16/07/2020 01/09/2020 13305xxxx VSC 16/07/2020 01/09/2020 19371xxxx JS 16/07/2020 01/09/2020 03256xxxx PCF&G 16/07/2020 01/09/2020 11278xxxx AF 16/07/2020 01/09/2020 13390xxxx MMM 16/07/2020 01/09/2020 20488xxxx FTI 16/07/2020 01/09/2020 78 47 47 47 47 47 63 61 47 61 63 61 61 47 47 47 47 47 47 47 47 47 47 47 47 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 32 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 18333xxxx SK 16/07/2020 01/09/2020 02486xxxx TBT 16/07/2020 01/09/2020 03357xxxx ECRS 16/07/2020 17/09/2020 11590xxxx MM&BS 16/07/2020 17/09/2020 19188xxxx STE 16/07/2020 17/09/2020 19866xxxx SSP 16/07/2020 17/09/2020 12089xxxx ALC 16/07/2020 17/09/2020 22413xxxx TVRS 16/07/2020 17/09/2020 18339xxxx VKI 16/07/2020 30/08/2020 02116xxxx JGS 16/07/2020 17/09/2020 22143xxxx KC 16/07/2020 17/09/2020 13432xxxx ELS 16/07/2020 17/09/2020 02179xxxx JBI 16/07/2020 17/09/2020 20097xxxx ECB 16/07/2020 17/09/2020 13451xxxx MPI 16/07/2020 17/09/2020 14184xxxx LI 16/07/2020 17/09/2020 14811xxxx NC 16/07/2020 01/09/2020 18702xxxx RI 16/07/2020 17/09/2020 12313xxxx MI 16/07/2020 17/09/2020 11289xxxx MK 16/07/2020 01/09/2020 13445xxxx SK 16/07/2020 17/09/2020 11747xxxx GBC 16/07/2020 17/09/2020 13350xxxx SMSR 16/07/2020 01/09/2020 18454xxxx RI 16/07/2020 17/09/2020 11482xxxx SKC 16/07/2020 22/09/2020 47 47 63 63 63 63 63 63 45 63 63 63 63 63 63 63 47 63 63 47 63 63 47 63 68 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 33 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 19530xxxx ACS 16/07/2020 22/09/2020 11301xxxx DKB 16/07/2020 22/09/2020 14432xxxx SBC 16/07/2020 22/09/2020 01062xxxx AI&SS 16/07/2020 22/09/2020 14346xxxx SKC 16/07/2020 22/09/2020 16317xxxx PDS 16/07/2020 22/09/2020 19525xxxx RJJC&M 16/07/2020 22/09/2020 20635xxxx ATI 16/07/2020 22/09/2020 19418xxxx RES (Fiji) 16/07/2020 22/09/2020 16455xxxx JPI 16/07/2020 22/09/2020 20033xxxx CI 16/07/2020 22/09/2020 22213xxxx KO 16/07/2020 22/09/2020 15009xxxx FD 16/07/2020 22/09/2020 20382xxxx EF 16/07/2020 22/09/2020 23023xxxx WDW 16/07/2020 22/09/2020 22313xxxx 19661xxxx 18343xxxx VI SC RI 16/07/2020 22/09/2020 16/07/2020 22/09/2020 16/07/2020 25/09/2020 11688xxxx PMK 16/07/2020 25/09/2020 21017xxxx MLT 16/07/2020 22/09/2020 11990xxxx NM 16/07/2020 22/09/2020 11531xxxx JKD 16/07/2020 22/09/2020 16419xxxx TK 16/07/2020 22/09/2020 14711xxxx NC 16/07/2020 22/09/2020 20224xxxx SHS 16/07/2020 22/09/2020 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 71 71 68 68 68 68 68 68 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 34 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 18759xxxx UDF 16/07/2020 22/09/2020 13240xxxx MF 16/07/2020 22/09/2020 17049xxxx KC 16/07/2020 22/09/2020 22101xxxx ET 16/07/2020 22/09/2020 Assessor 3 12149xxxx JS 26/06/2020 30/07/2020 16231xxxx BDS 26/06/2020 11/09/2020 03318xxxx IH&BS 26/06/2020 30/07/2020 14471xxxx ST 26/06/2020 19/08/2020 22156xxxx VNIF 26/06/2020 30/07/2020 12121xxxx SS 26/06/2020 11/09/2020 16197xxxx JLSC 26/06/2020 09/09/2020 12307xxxx KTC 26/06/2020 19/08/2020 19964xxxx TM 26/06/2020 17/08/2020 19425xxxx BFHC 26/06/2020 04/08/2020 16257xxxx VTF 26/06/2020 04/08/2020 20552xxxx NF 26/06/2020 30/07/2020 4354xxxx SI 26/06/2020 19/08/2020 11666xxxx KFF 26/06/2020 12/08/2020 19579xxxx HBF&T 26/06/2020 12/08/2020 20337xxxx MSC 26/06/2020 25/08/2020 23090xxxx WV 26/06/2020 11/09/2020 14918xxxx NFFF 26/06/2020 17/08/2020 18496xxxx 14050xxxx RI HI 26/06/2020 30/07/2020 26/06/2020 30/07/2020 68 68 68 68 34 77 34 54 34 77 75 54 52 39 39 34 54 47 47 60 77 52 34 34 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 35 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 14758xxxx LSH 26/06/2020 30/07/2020 02199xxxx BVS 26/06/2020 01/09/2020 03213xxxx LKS 26/06/2020 02/09/2020 04170xxxx PVD 26/06/2020 19/08/2020 18429xxxx DES 26/06/2020 30/07/2020 12122xxxx SB 26/06/2020 30/07/2020 14775xxxx RSS 26/06/2020 30/07/2020 14521xxxx KNE 26/06/2020 11/09/2020 19824xxxx TK 26/06/2020 30/07/2020 19193xxxx TSS 26/06/2020 06/08/2020 11175xxxx SEW 26/06/2020 30/07/2020 50176xxxx NLATBFB 26/06/2020 01/09/2020 18400xxxx USC 26/06/2020 11/09/2020 13263xxxx SMS 26/06/2020 03/09/2020 12331xxxx MAE 26/06/2020 21/09/2020 12240xxxx KOS 26/06/2020 25/08/2020 12243xxxx LTS 26/06/2020 21/09/2020 13062xxxx MNCS 26/06/2020 25/08/2020 13324xxxx 21020xxxx AI UI 26/06/2020 25/08/2020 26/06/2020 25/08/2020 25034xxxx WI 26/06/2020 06/08/2020 22485xxxx VC 26/06/2020 06/08/2020 22186xxxx RB 26/06/2020 06/08/2020 17029xxxx QI 26/06/2020 11/09/2020 16489xxxx IE 26/06/2020 06/08/2020 34 67 68 54 34 34 34 77 34 41 34 67 77 69 87 60 87 60 60 60 41 41 41 77 41 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 36 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 16514xxxx PRS&SR 26/06/2020 06/08/2020 12509xxxx ASRS 26/06/2020 06/08/2020 13228xxxx FFFI 26/06/2020 19/08/2020 18658xxxx RC 26/06/2020 21/09/2020 14318xxxx NCD 26/06/2020 12/08/2020 16259xxxx ERC 26/06/2020 12/08/2020 Assessors 1 and 5 13158xxxx MIL 14/08/2020 30/08/2020 50580xxxx EHPL 14/08/2020 30/08/2020 03151xxxx PSC 14/08/2020 03/09/2020 50175xxxx RE&TSL 14/08/2020 03/09/2020 04164xxxx FC 14/08/2020 29/08/2020 11153xxxx KE 14/08/2020 31/08/2020 02295xxxx SSFD 14/08/2020 31/08/2020 01098xxxx VR 14/08/2020 31/08/2020 19253xxxx IOS 14/08/2020 29/08/2020 50345xxxx KRPL 14/08/2020 30/08/2020 80008xxxx BCL 14/08/2020 30/08/2020 21014xxxx TMM&TTUT 14/08/2020 29/08/2020 14347xxxx AT 14/08/2020 30/08/2020 50582xxxx MDPL 14/08/2020 03/09/2020 50574xxxx TB&WPL 14/08/2020 01/09/2020 14265xxxx PLS 14/08/2020 01/09/2020 18325xxxx BTS 14/08/2020 01/09/2020 22130xxxx BFE 14/08/2020 29/08/2020 41 41 54 87 47 47 16 16 20 20 15 17 17 17 15 16 16 15 16 20 18 18 18 15 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 37 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Initials Date Loan Approved Date received by Assessors No.
of days taken 13180xxxx CSM &CAAS 14/08/2020 03/09/2020 16208xxxx TE&T 14/08/2020 29/08/2020 21026xxxx EI 14/08/2020 29/08/2020 01153xxxx GRC 14/08/2020 29/08/2020 16286xxxx HRC 14/08/2020 04/09/2020 16498xxxx ICHF 14/08/2020 29/08/2020 19452xxxx MC 14/08/2020 08/09/2020 03336xxxx MWFW 14/08/2020 08/09/2020 30092xxxx NSP 14/08/2020 09/09/2020 14961xxxx NVK 14/08/2020 08/09/2020 11393xxxx NE 14/08/2020 08/09/2020 16308xxxx SES 14/08/2020 29/08/2020 50534xxxx STL 14/08/2020 30/08/2020 20268xxxx TI 14/08/2020 29/08/2020 18247xxxx VRI 14/08/2020 29/08/2020 19476xxxx KCVS 14/08/2020 29/08/2020 11267xxxx PD 14/08/2020 29/08/2020 11221xxxx KES 14/08/2020 08/09/2020 30095xxxx FCR 14/08/2020 21/09/2020 11269xxxx K.M&S 14/08/2020 27/08/2020 18418xxxx RMGS & 8 PC 14/08/2020 27/08/2020 30614xxxx SP 14/08/2020 27/08/2020 12362xxxx NCS 14/08/2020 27/08/2020 14317xxxx FF 14/08/2020 27/08/2020 22415xxxx BF&T 14/08/2020 30/09/2020 20 15 15 15 21 15 25 25 26 25 25 15 16 15 15 15 15 25 38 13 13 13 13 13 47 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 38 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Appendix 2.0: Details of Loan application forms that were not signed TIN Number Business Names 12218xxxx AC Amount Approved $7,000 11166xxxx MB $7,000 03322xxxx RC $7,000 03307xxxx PF $7,000 03346xxxx LV $7,000 11418xxxx JMM $7,000 25022xxxx YE $7,000 20460xxxx VTH $7,000 18368xxxx AHI $7,000 11931xxxx CC (Fiji) PL $7,000 Observations Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Verifying officers did not sign off on the application form Both the receiving and verifying officers
 did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 39 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Amount Approved Observations 13134xxxx PTLT&T $7,000 10041xxxx RTP $7,000 14211xxxx NES $7,000 22234xxxx TFI $7,000 13548xxxx FD $7,000 32596xxxx LN $7,000 19093xxxx CE $7,000 03287xxxx TT $7,000 14318xxxx NBHT & TPL $7,000 07075xxxx WME $7,000 sign off on the application form Verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Verifying officers did not sign off on the application form Verifying officers did not sign off on the application form Verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Verifying officers did not sign off on the application form 21041xxxx TH $7,000 Both the receiving and verifying officers did not MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 40 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Amount Approved Observations 14644xxxx WH $7,000 07070xxxx NB $7,000 12557xxxx WT $7,000 19530xxxx KT $7,000 02198xxxx ZSE&MS $7,000 22269xxxx CD $7,000 14691xxxx NH $7,000 18704xxxx SB $7,000 30616xxxx TDCC $7,000 sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Both the receiving and
 verifying officers did not sign off on the application form Both the receiving and verifying officers did not sign off on the application form Verifying officer did not sign off on the application form MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 41 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI TIN Number Business Names Amount Approved Observations 50177xxxx GTTPL $7,000 Verifying officer did not sign off on the application form MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 42 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Appendix 3.0: Details of those Loan applications where the amount approved was higher than the amount recommended by the assessors and Assessment forms not signed by the assessors Business TIN Number Business Name % Score Amount Approved Observations 12300xxxx NFFS 65% $ 7,000.00 Assessors did not sign on the assessment sheet (only initials) Assessors Comments and Panels Decision Recommended for approval to purchase diving equipment $3,500 and fish $1,500 Assessors recommended approval of $5,000 Panel approved and paid $7,000 20067xxxx TM&TT 71% Amount approved MCTTT records $7,000 on $ 7,000.00 Assessors did not sign on the assessment sheet (only initials) Assessors recommended approval of $5000 Amount approved on MCTTT records $7,000.
FRCS data (08/10/2020) does not contain information on loan.

16514xxxx PRS&SR 76% $ 7,000.00 Assessment form is not signed by the 2nd assessor.

Assessors recommended approval of $5,250, MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs Public transportation such as taxis and minibus is always a necessity as the bus services cannot cater for the public alone.
Also In some places, buses have a schedule and a time frame on which they service that area, therefore taxis and minibuses are important as they can operate at anytime as long as it is within the curfew hours Panel approved and paid $7,000 Loan is to purchase materials, self- employed and potential to employ 1 additional person.

Good business case however has an existing loan of$4,000.
43 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision Amount approved on MCTTT records $7,000.

19564xxxx SH 73% $ 7,000.00 Assessors recommended approval of $6000.
Amount approved on MCTTT records $7,000 25032xxxx SS 93% $ 7,000.00 Assessors recommended approval of $5,000 Amount approved on MCTTT records $7,000 Conditional approval Approved, subject to quotation Approved Panel approved and paid $7,000 Approved Panel approved and paid $7,000 23193xxxx EB&HS 61% $ 7,000.00 Assessment Form is not signed by the two assessors.

Approved for purchase of equipment Panel approved and paid $7,000 Bank account is not registered to the business name.
Rather it is registered under Alanieta's name which should not be the case under a partnership business.

Also, there was no Registration Confirmation letter from FRCS attached with the application to ascertain if the TIN number is registered to the business name.
Assessors recommended approval of $4,000, MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 44 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision 13484xxxx ZU 68% $ 7,000.00 however, amount approved on MCTTT records $7000.

Pre-operating 'Total Cash Inflows' is $92,000, this shows that the turnover is more than $50,000 and yet application is approved.
Also, the assessment form is not signed by both the assessors.

Assessors recommended approval of $4,000 however amount approved on MCTTT records $7,000.

33563xxxx AM&T 63% $ 7,000.00 The assessment form is not signed by the two assessors.

Assessors recommended approval of $4,000 in the assessment form, while amount approved on MCTTT records $7,000.

18340xxxx BCS 61% $ 7,000.00 The assessment form is not signed by the two assessors.
Assessors recommended approval of $3,000 in the assessment form, while amount approved on MCTTT records $7,000.

Packaging material for local market.

Already on FDB Loan.

Employs farmers indirectly Panel approved $7000 subject to Ministry background check.

Recommended for approval.

Success factors include current customer retention & experience in that canteen/locality.

Conditional approval by Panel.

Estimated $3,000 funds could be approved for purchase of raw materials.
Panel approved and paid $7,000.

MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 45 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 14758xxxx LSH 68% $ 7,000.00 Only one assessor signed the assessment form.

Assessors recommended approval of $3,000.

"Approved $7,000" written on the front page of the assessment form however there is no signature.

Only one assessor signed on the assessment form.


Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000.

16257xxxx V(Fiji) 71% $ 7,000.00 10047xxxx JT 76% 12263xxxx MH 61% $ 7,000.00 $ 7,000.00 Assessors recommended approval of $3,500 while amount approved on MCTTT records $7,000 Assessors recommended approval of $2,500 while amount approved on MCTTT records $7,000.
Assessors Comments and Panels Decision Applicant is in need of financial support to purchase two months supply of raw material and cost of sales.

Approved $3000 to assist the applicant.

Panel approved and paid $7,000 Working capital is for purchase of materials and purchasing of equipment for producing products.

No current loan.

Products is specialised in handicraft products.

No formal training but trained by his Grandfather for carving and designing etc.
Panel approved and paid $7,000 Approved Panel approved and paid $7,000 Approved Panel approved and paid $7,000 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 46 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 12416xxxx SC 67% $ 7,000.00 12572xxxx WH 67% $ 7,000.00 Assessors recommended approval of $3,000 while amount approved on MCTTT records $7,000 Only one assessor signed Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 11090xxxx APT 79% $ 7,000.00 Only one assessor signed the assessment form.
Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000.

There is no signature of the assessor, only the name is typed and printed.

11931xxxx CC (Fiji) PL 68% $ 7,000.00 Only one assessor signed the assessment form.
Assessors recommended approval of $4,760 while amount approved on MCTTT records $7,000 Assessors Comments and Panels Decision Approved subject to quotation Panel approved and paid $7000 Loan approved Panel approved and paid $7,000 This applicant has genuinely shown interested the doing business.

Has shown business plans and financials very clearly and it is effective Conditional approval Panel Approved and paid $7,000, subject to quotation Has the potential to create employment but no number indicated.
It will contribute to the economy since materials will be purchased locally.
Conditional approval MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 47 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 22234xxxx TFI 81% $ 7,000.00 One of the assessor has not signed Assessors recommended approval of $5,691 while amount approved on MCTTT records $7,000 22186xxxx RB 67% $ 7,000.00 Assessors recommended approval of $4,666.67 while amount approved on MCTTT records $7,000 12509xxxx ASRS 68% $ 7,000.00 Assessors recommended approval of $4,760 while amount approved on MCTTT records $7,000 Assessors Comments and Panels Decision Panel Approved and paid $7,000, subject to quotation.
Applicant has business expansion including job creation in the future.

Local suppliper to be used injection of funds with local economy.

Panel approved and paid $7,000 Loan requested to purchase various asset.

Ability to create 1 employment position per application.

The business will serve the community.

Business case well presented.

Panel approved and paid $7,000 Loan to purchase materials.

Self- employed and generate business for wholesalers and serving the Community.
No training but has been in in trade for 10years.

Conditional approval Approved and paid $7,000, subject to quotation MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 48 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 11558xxxx VT 61% $ 7,000.00 Assessors recommended approval of $3,000 while amount approved on MCTTT records $7,000 Only 1 assessor signed off on the form.
19867xxxx SH 60% $ 7,000.00 Only 1 assessor signed off on the assessment form.

50521xxxx JWCL 61% $ 7,000.00 Assessors recommended approval of $3,000 while amount approved on MCTTT records $7,000 Assessor did the assessment on the soft copy and did not sign off on the assessment form.

Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 Assessors Comments and Panels Decision Approved to purchase materials Panel approved and paid $7,000 Approved for $3,000.
Diversifying into selling fish.

Panel approved and paid $7,000 I believe that this business would greatly benefit from the grant as it will create a few more job opportunities for the community.

Their work involves cutting of grass, cleaning of drains, collecting rubbish etc which helps keep the Nausori Town clean as well as prevent diseases and sickness which arise from polluted environment Conditional approval Approved and paid $7000, subject to quotations.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 49 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 18520xxxx ASC&P 29% $ 7,000.00 14318xxxx NBHT&TPL 77% $ 7,000.00 No assessor signature.

Only one assessors name written.

Amount approved by assessors not on marking sheet Verifying officer did not sign off on the application forms.
No Business Registration Certificate attached FRCS data (08/10/2020) does not contain information on loan.

Assessors recommended approval of $5,411 while amount approved on MCTTT records $7,000.

Only one assessor signed off the forms Receiving office and verifying officer did not sign off on the form as it is blank.
22192xxxx VH 85% $ 7,000.00 Scored 64 of 75 Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 Assessors Comments and Panels Decision Applicant has lost job.

Letter attached.

Has not filled in the Financial plan Panel approved and paid $7,000 Business will have the ability to employ 20 people.

The set up of a car wash will benefit the people of Sanasana village.

New business is based on the applicant current business line and will be dependent on Covid 19.
The setup of a car wash business will supplement any income loss.

Conditional approval, paid $7,000.
Seek clarification on the loan utilization (interview) Approved MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 50 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision Receiving and verifying officer did not sign off on the application form Panel approved and paid $7,000 16268xxxx VBM 62% $ 7,000.00 19337xxxx WE 80% $ 7,000.00 Assessor recommended loan amount of $3,000, however, as per approved list, its noted that $7,000 was approved.
Further comments noted that amount approved will depend on quotation.

Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000.

Further comments noted that quotations needed before disbursement.
Receiving officer and verifying officer did not sign off on the application forms 16397xxxx THC 71% $ 7,000.00 No assessors signature, only initials Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 FRCS data (08/10/2020) does not contain information on loan.
Loan approved Conditional approval, Subject to list of items (quotations) & confirmation of location Approved Panel approved and paid $7,000 Whilst Financial statement is not provided in the application to ascertain growth over the 3 year period, cash flow for 1 year period provides sufficient comfort with regards to expected income and surplus, the Business plan provides comfort around sustainability and growth in the area.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 51 Assessors Comments and Panels Decision Conditional approval.

Panel approved and paid $7,000 subject to current employment status.
Approved Panel approved and paid $7,000 Loan approved Panel approved and paid $7,000 Approved Panel approved and paid $7,000 Approved REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 19996xxxx NC 75% $ 7,000.00 11731xxxx ST 75% $ 7,000.00 19655xxxx CR 69% 18504xxxx RC 61% $ 7,000.00 $ 7,000.00 Assessors recommended approval of $4,860 while amount approved on MCTTT records $7,000.
FRCS data (08/10/2020) does not contain information on loan.

Only one assessor has signed.

Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 FRCS data (08/10/2020) does not contain information on loan.
Assessors recommended approval of $6,000 while amount approved on MCTTT records $7,000 No business registration certificate No TIN letter Assessors did not sign on assessment form Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 Audit noted that the Mirco Business Assessment Form MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 52 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations was not attached with the application.
Therefore, checks 1 and 4 could not be ascertained by the audit.

Also, the proper registration certificate was not attached with the application, rather an invoice from the Fiji Registrar of Companies was attached confirming that the business name has been registered.

Assessment form (amount approved section) not completed and no signatures 11289xxxx MK 63% $ 7,000.00 20520xxxx TD 61% $ 7,000.00 Assessment form is not signed by the two assessors.
Assessors Comments and Panels Decision Panel approved and paid $7000 Accepted Panel approved and paid $7,000 Unique business.

Needs funds to buy wood chipper.

Recommended.

Assessors recommended approval of $3,000 while amount approved on MCTTT records $7,000.

Panel approved and paid $7,000 25022xxxx YE 72% $ 7,000.00 Assessment form is not signed by the two assessors.

Recommended.

Carries out survey works.

Needs assistance to buy equipment and tablet.


Assessors recommended approval of $5000 while amount approved on MCTTT records $7000 Panel approved and paid $7000 13427xxxx LC 61% $ 7,000.00 Assessment form is not signed by both the assessors.

Recommended.

Existing business.

Quotation provided.


MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 53 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 Panel approved and paid $7,000 18401xxxx TCH 57% $ 7,000.00 Assessment form is not signed off by one of the assessors.
Also, in the assessment form it is noted that the loan was not approved because it did not meet the minimum qualified points.

However, in this database the amount of $7,000 is approved.

3390xxxx CMT 60% $ 7,000.00 Only one assessor signed on the assessment form.

Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000.

Working capital request or business plan is too generic.

As per business plan, it will create employment opportunities only during peak seasons.
The business will contribute to the economy through consumer spending and creation of employment opportunities during peak seasons.

The applicant's loan request for $7,000.00 does not meet the minimum qualified points.

Panel approved and paid $7,000 An experienced therapist.

Keen on opening her own business.

Recommended.


Approved by panel and paid $7,000 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 54 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 14471xxxx ST 29% $ 7,000.00 Only scored 22/75 and stated the loan amount approved on assessment form was $0 Only one assessor signed on the assessment form.

12307xxxx KTC 68% $ 7,000.00 Only one assessor signed on the assessment form.
Assessors recommended approval of $4000 while amount approved on MCTTT records $7,000.

18006xxxx RT 65% $ 7,000.00 Only one assessor signed on the assessment form.

Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 19695xxxx KH 68% $ 7,000.00 Assessors recommended approval of $6000 while amount approved on MCTTT records $7,000.

Assessors Comments and Panels Decision Working capital of $7,000.00 requested.

There is no possible creation of employment.

Not sustainable.
Not sustainable.

Approved by panel and paid $7,000 $4,000.00 will be sufficient to cover the cost of machines and the as the confirmed balance.

Approved by panel and paid $7,000 Working capital request for sewing machine.

Intends to create employment for two.

Contribute to economy through taxes and contribute to society.

Based on information given recommend a loan of $5,000.00 as she has the skills and knowledge to do this business.
Approved by panel and paid $7,000 Approved Approved by Panel and paid $7,000 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 55 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 13329xxxx GBF 67% $ 7,000.00 Assessor’s additional comments states that "Recommend a loan approval of $6,000 “and "Loan to be used for purchase of industrial sewing machine (quotation needed)" In the Loan Amount Approved: "To depend on sewing machine and $2,000 for pot planting equipment."
13134xxxx PTLT&T 63% $ 7,000.00 Assessment form is not signed by the second assessor.
18632xxxx DBS 71% 13338xxxx MC 83% 01133xxxx AES 83% $ 7,000.00 $ 7,000.00 $ 7,000.00 Assessors recommended approval of $4,389 while amount approved on MCTTT records $7,000 Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 Assessors recommended approval of $3,500 while amount approved on MCTTT records $7,000 Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 Assessors Comments and Panels Decision Loan approved Approved by Panel and paid $7,000 Working capital of $7,000 requested.
Nature of business to determine if loan can be approved.

Need to loan is not critical.

Loan amount is based on points percentage.


Approved by Panel and paid $7,000 Loan approved Approved by Panel and paid $7,000 Approved Approved by Panel and paid $7,000 Recommended for approval of $5,000 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 56 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessor did not sign on the assessment sheet and only one assessor stated his name.

Assessment was done on the soft copy.


Assessors Comments and Panels Decision List of working capital requirements.

Approved by Panel and paid $7,000 04465xxxx DE 65% $ 7,000.00 Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 Recommended.

Existing business needs support for stock.

Quotations provided.

2233xxxx EVFG&K 64% $ 7,000.00 30615xxxx JI 59% $ 7,000.00 19540xxxx 55% $ 7,000.00 Approved by Panel and paid $7,000 Recommended.
To purchase freezers and materials.

Quotation provided.

Approved by Panel and paid $7,000 Approved Approved by Panel and paid $7,000 Approved Assessor did assessment on soft copy and assessment form is not signed off at all by the assessors.

Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000.

Assessor did assessment on soft copy and assessment form is not signed off at all by the assessors.

No assessor signature, only one of the assessors name.
Amount approved shows NIL (Declined).

Application declined, business is a Small business but applying as micro, No bank statement, tax compliance or FNPF complinace letter.

Assessor scores was only 41 out of 75 and NIL amount recommended by the assessor.

Decision changed by assessor 2 however no justification provided.
MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 57 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 20557xxxx TE 57% $ 7,000.00 No assessment sheet attached Loan requested amount $3,704, however $7,000 was paid 07075xxxx WME 77% $ 7,000.00 Assessors recommended approval of $5,411 while amount approved on MCTTT records $7,000 Only one assessor signed off on the assessment form FRCS data (08/10/2020) Assessors Comments and Panels Decision Approved by Panel and paid $7,000 Application is declined however further probing required - example market vending license should application is late considered for approval.
Sales figures seem a bit over stated against the nature of business and its operation - There are no evidence of existing experience in the line of business.

Applicant has failed to indicate how COVID-19 has impacted this line of business.

Proposal seems to be a good line of business with future success however need to address the above issues more thoroughly ( Upon Review -above 50%- recommend proceed) Approved by Panel and paid $7,000 Working capital of $7,000 requested.

Retention of employment x3.


Continued business in providing information to schools and universities.

Loan amount is based on point’s percentage.

MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 58 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision 03256xxxx KH 67% $ 7,000.00 does not contain information on loan.
Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs Was approved by panel on the 3rd sept.

Quotation For purchase of materials from the village/ island which are ready-made.

Applicant also wanted equipment to build products.

Creation of jobs for people creating handicraft.

Contribute to economy by increasing productivity of people in the islands and people in the business to be employed to create crafts.
Even though handicraft business is at a standstill, the business was good for the applicant.

The applicant wants to create his own handicraft and has the skills to do so.

He assumes that the business will be as usual from 2021.

However, the intention is good but some figures of sales are overstated and need adjustment for COVID19.

No estimates or quotations have been provided by applicant.
Thus assumed amount of $5,000.00 for loan seems appropriate keeping in mind that 59 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 02657xxxx ECD 61% $ 7,000.00 Only 1 assessor signed off on the assessment form.
07070xxxx NB 65% $ 7,000.00 Assessors recommended approval of $4,270 while amount approved on MCTTT records $7,000 Assessors recommended approval of $1,500 while amount approved on MCTTT records $7,000 Both receiving and verifying officer did not sign off on the application forms Assessors Comments and Panels Decision the applicant has enough money in his bank account.

Approved by Panel and paid $7,000.

Quotations from applicant Full capital required.


Intends to create employment and contribute to economy.

Business case as per guideline.

Approved by Panel and paid $7,000.

Quotations from applicant Weak Cash flow & Profit loss Approved by Panel and paid $7,000.

Subject to quotations for boutique business 19530xxxx KT 79% $ 7,000.00 Assessors recommended approval of $6,140.15 while amount approved on MCTTT records $7,000 Approved by Panel and paid $7,000.
Quotations from applicant Receiving and verifying officer did not sign off on the application forms MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 60 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision 18745xxxx HSC 83% $ 7,000.00 Applicant only requested $2,000 however, assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 Approved Approved by Panel and paid $7,000 04155xxxx SBS 71% $ 7,000.00 Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 Approved 19513xxxx SKS 76% $ 7,000.00 The applicant had a score of 41 only which was below the qualified points of 45 out of 75, yet the loan was approved Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 14212xxxx BC 71% $ 7,000.00 The applicant did not state the loan amount requested, however the assessor approved $7,000.
13247xxxx LTFS 65% $ 7,000.00 Both assessors signed off on the form, 1st assessor recommended $4,500 based on quotations provided but 2nd assessor approved $7,000.

No Assessor signature.

One of the assessors name shows FCEF.

Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 FRCS data (08/10/2020) Approved by Panel and paid $7,000 Approved Approved by Panel and paid $7,000 Approved Approved by Panel and paid $7,000 Business needs assistance to grow its business.
Buy stock and equipment’s for food business.

Existing micro business in Nadi MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 61 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision does not contain information on loan.
Quotations from applicant 13438xxxx MCB&C 79% $ 7,000.00 12480xxxx VE 73% $ 7,000.00 Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 No assessor signed, only one assessors name mentioned.

FRCS data (08/10/2020) does not contain information on loan.

Only one assessor has signed Assessors recommended approval of $3,500 while amount approved on MCTTT records $7,000 FRCS data (08/10/2020) does not contain information on loan.
22176xxxx FVI 64% $ 7,000.00 Pre- operating cash flow $64,105 No assessor signed on the marking sheet 14357xxxx MHR 93% $ 7,000.00 Assessors recommended approval of $4,480 while amount approved on MCTTT records $7,000 FRCS data (08/10/2020) does not contain information on loan.
Assessors recommended approval of $3,000 while amount approved on MCTTT records $7,000 FRCS data (08/10/2020) Loan is approved for $7,000 as it benefits both the business owner and the community There is retention and creation of employment in Lajonia Applicant to provide quotation for items.

Funds to be disbursed according to funds quoted.

Applicant to attain training in financial management, financial literacy and entrepreneurship.

Working capital requests, has an existing loan of $5,1284.
Should be under small category - High Liabilities Quotations from applicant Approved MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 62 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations 22551xxxx WC 84% $ 7,000.00 does not contain information on loan.
Assessors recommended approval of $4,000 while amount approved on MCTTT records $7,000 12381xxxx HS 76% $ 7,000.00 Both assessor has signed but one of the signatures has another signature on top of the previous 11409xxxx GAR 73% $ 7,000.00 19894xxxx ASB 77% 22354xxxx MVE 64% $ 7,000.00 $ 7,000.00 Assessors recommended approval of $3,500 while amount approved on MCTTT records $7,000 Assessors recommended approval of $2,450 while amount approved on MCTTT records $7,000.
FRCS data (08/10/2020) does not contain information on loan.

Assessors recommended approval of $4,500 while amount approved on MCTTT records $7,000 Assessment form not signed by the 2nd assessor.
Assessors recommended approval of $4,480 while amount approved on MCTTT records $7,000 Assessors Comments and Panels Decision List of working capital requirements and quotations Approved Approved by Panel and paid $7,000 Approved Approved by Panel and paid $7,000 Loan approved Quotations from applicant Approved Approved by Panel and paid $7,000 02147xxxx LKS 61% $ 7,000.00 Assessors recommended approval of $4,000 while Approved MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 63 REPORT OF THE AUDITOR GENERAL OF THE REPUBLIC OF FIJI Business TIN Number Business Name % Score Amount Approved Observations Assessors Comments and Panels Decision 22394xxxx VRS amount approved on MCTTT records $7,000 FRCS data (08/10/2020) does not contain information on loan.
$ 7,000.00 No assessor signature, FCEF written on one the assessors signature.

Assessors recommended approval of $5,000 while amount approved on MCTTT records $7,000 Proper business registration was not attached Purcha se solar syste m and freeze r Recommended.

Business in existence.

Need to buy solar system and freezer.


Quotation provided Approved by Panel and paid $7,000 MANAGEMENT OF CONCESSIONAL LOAN PACKAGE TO MSMEs 64 OFFICE of the AUDITOR GENERAL Republic of Fiji www.oag.gov.fj