Report of the auditor general on the public accounts of guyana on the accounts of ministries

560 Pages·2015·5.21 MB·English

MISSION STATEMENT
As the Supreme Audit Institution of the State we are committed to the promotion of good
governance including openness, transparency and improved public accountability through:
1. the execution of high quality audits of the public accounts, entities and projects assigned by
the Audit Act;
2. timely reporting of the results to the legislature and ultimately the public;
3. ensuring that the independence, integrity and objectivity of the Audit Office is recognised;
4. the provision of cost effective service by the implementation of the most up-to-date Audit
Practices;
5. the recruitment and retention of the best qualified personnel to achieve set targets, on a
sustained basis; and
6. developing professional relationships with our clients, and producing reports which
facilitate improvements in their operations.
REPORT OF THE AUDITOR GENERAL
ON THE PUBLIC ACCOUNTS OF GUYANA AND ON THE
ACCOUNTS OF THE MINISTRIES, DEPARTMENTS AND REGIONS
FOR THE FISCAL YEAR ENDED 31 DECEMBER 2013
TABLE OF CONTENTS
PAGE
Audit Opinion i
Auditor General’s Overview of the Office iv
Executive Summary vi
Report on the Public Accounts Statements:
Introduction 1
End of Year Budget Outcome and Reconciliation Report (Revenue and Expenditure) 5
Statement of Contingent Liabilities 11
Receipts and Payments of the Consolidated Fund 12
Expenditure from the Consolidated Fund as compared with the Estimates of Expenditure 16
Expenditure in respect of those services which by Law are directlycharged upon the
Consolidated Fund 17
Receipts and Payments of the Contingencies Fund 18
Current Assets and Liabilities of the Government 20
Appropriation Accounts of Heads of Budget Agencies 22
Receipts and Disbursements by Heads of Budget Agencies 22
Statement of Public Debt 22
Schedule of Issuance and Extinguishment of all Loans 26
Financial Reports of the Deposit Funds 26
Schedule of Government Guarantees 28
Report on the Accounts of Ministries/Departments/Regions:
Office of the President 30
Office of the Prime Minister 34
Ministry of Finance 35
Guyana Revenue Authority 45
Ministry of Foreign Affairs 58
Guyana Elections Commission 61
Ministry of Local Governmentand Regional Development 64
Ministry of Amerindian Affairs 67
Ministry of Agriculture 77
Ministry of Tourism, Industry and Commerce 87
Ministry ofNatural Resources and Environment 92
Ministry of Public Works 93
Ministry of Education 107
Ministry of Culture, Youth and Sport 115
Ministry of Housing and Water 118
Georgetown Public Hospital Corporation 118
Ministry of Health 125
Ministry of Labour, Human Services and Social Security 135
Ministry of Home Affairs 139
Ministry of Home Affairs (Guyana Police Force) 143
Ministry of Legal Affairs 149
Guyana Defence Force 151
Supreme Court 154
Region 1 - Barima/Waini 161
Region 2 -Pomeroon/Supenaam 169
Region 3 -Essequibo Islands/West Demerara 171
Region 4 -Demerara/Mahaica 175
Region 5 -Mahaica/Berbice 187
Region 6 -East Berbice/Corentyne 190
Region 7 -Cuyuni/Mazaruni 201
Region 8 -Potaro/Siparuni 205
Region 9 -Upper Takatu/Upper Essequibo 216
Region 10 -Upper Demerara/Berbice 226
Summary of Recommendations 232
Report on Other Entities:
Summary of Audit Opinions Issued 233
Audits of Public Enterprises 234
Audits of Statutory Bodies 236
Summary of Recommendations –Qualified Opinions 238
Audit of Trade Unions 238
Audits of Foreign Funded Projects 239
Special Investigations 240
Acknowledgements 240
Statements and Accounts 2/1(a)

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud and error. In making those risk assessments, I consider internal
control relevant to the entity’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness of
accounting estimates made by the Ministry of Finance and the Heads of Budget Agencies, as well
as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis
for my audit opinion.
Qualified opinion based on limitation in scope
Except for any adjustments, which might have been shown to be necessary as a result of the
observations contained in the relevant sections of my report, in my opinion, the financial statements
properly present:
(cid:122) The financial information necessary to present fairly the financial transactions and financial
position of the State;
(cid:120) Receipts and Payments of the Consolidated Fund;
(cid:120) Expenditure of the Consolidated Fund as compared with the Estimates of Expenditure;
(cid:120) Expenditure in respect of those Services which by Law are directly charged upon the
Consolidated Fund;
(cid:120) Receipts and Payments of the Contingencies Fund;
(cid:120) Appropriation Accounts of Headsof Budget Agencies; and
(cid:120) Receipts and Disbursements by Headsof Budget Agencies;
(cid:122) The Scheduleof Public Debt;
(cid:122) Schedule of Issuance and Extinguishment of all Loans; and
(cid:122) End of Year Budget Outcome and Reconciliation Report of the Consolidated Fund.
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Auditor General’s Overview of the Office
The Audit Office of Guyana, which was established by the Audit Act 2004, has legal
responsibility to audit the financial statements of all government entities, including all foreign
funded Projects. The mission of the Audit Office is to promote good governance, transparency
and improved public accountability. The Office continued its progression towards a more
improved National Audit Office. The Office continued its process of modernization and
strengthening through the support of a Technical Cooperation Agreement signed in May 2012
between the Government of Guyana and the Inter-American Development.
In our quest to achieve the objectives of our mission, especially as it relates to the execution of
high quality audits and timely reporting to the legislature; whilst ensuring that the independence,
integrity and objectivity of the Audit Office is recognized, we continued capacity building in the
area of auditing controls. In addition, seven officers were provided with training in forensic
accounting and fraud investigations and are now better placed to investigate frauds. Fifteen
officers also undertook a “Train the Trainers” Course and are now equipped to deliver training,
which will be done primarily in-house to develop and hone our technical skills. Forty-two
officers, who included Directors, Managers, Supervisors and Engineers, were the beneficiary of
training in supervisory and managerial competencies, which should enhance these said officers
abilities to execute their functions.
We also sought to enhance the human resource function, which is also in keeping with our
mission to recruit and retain the best qualified personnel to achieve set targets. Moreover, a
performance management framework was developed, which included a staff retention strategy
and an improved performance appraisal system, which will be implemented. The information
technology capacity and infrastructure continued to be improved, especially storage capacity and
communications capabilities. Also, relevant equipment was also acquired to meet our needs. In
addition, the Audit Office has taken steps to promote its roles and functions, thereby reaching out
to its stakeholders.
In keeping with international best practices whereby follow-up Value for Money (VFM) Audits
are conducted within a three years period to verify action taken to implement the
recommendations made, the Audit Office has just concluded the field work on its first follow-up
audit, which is expected to be reported by the end of 2014. The Audit office is committed to
continue the execution of VFM Audits in keeping with its mandate to ensure the provision of
reports that will facilitate improvements in the operations of our clients.
Through the INTOSAI’s Development Initiative (IDI), four officers have successfully completed
and are certified International Standards of Supreme Audit Institutions (ISSAI) Facilitators. This
initiative will seek to ensure that the work of the Audit Office is in keeping with international
standards and best practices. Two officers also received training in the conduct of Information
Technology Audits through IDI.
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We are also part of a team in CAROSAI who are undertaking a “cooperative audit” of our
respective Revenue Agencies. This will facilitate the sharing of best practices and
methodologies, which is in keeping with CAROSAI’s aim of using “Collaboration as a Tool for
Promoting Best SAI Audit Practices”.
The Audit Office also benefitted from the services of the Canadian Executive Service
Organisation (CESO). Moreover, five officers were trained in the conduct of Information
Technology Audits, and they have since commenced an audit of the Government’s accounting
system, Integrated Financial Management Accounting System (IFMAS). This audit is scheduled
to be completed in 2015. CESO have also assisted in revising our Value for Money Audit
Manual, whilst training was delivered to fifteen officers in relation to the conduct of Practice
Reviews for Value for Money Audits. In addition, the work of our Quality Assurance Unit was
reviewed and recommendations made for improvements, which have since been implemented.
Five officers were also trained in various audit related areas under the Indian Technical and
Economic Cooperation (ITEC) programme in India.
With regards to professional development, training materials continued to be made available to
the Office’s staff through the acquisition of text books, and examination kits. These training
materials have enabled a number of staff members to pursue professional certification in the
accounting field. The Office was able to add to its complement one more qualified Accountant,
whilst six others were in the final stage of gaining certification.
Looking forward, we aim to continue improving our services, which will ultimately lead to
achieving our mission. In so doing, it is our plan to implement an audit management software,
which would increase efficiency and productivity in our audit process. We would also seek to
continue our capacity building initiatives, especially in the area of Value for Money, Information
Technology Audits, as well as other core areas. We also intend to reach out to our stakeholders,
especially those in the hinterland regions.
I take this opportunity to thank the Heads of Departments and their staff for their cooperation and
courtesies extended to us, and we look forward to continuing our professional relationship. I
must also commend my staff for their continued relentless commitment, contribution and
support, despite the many challenges we may have faced. This report would not have been
possible without their efforts.
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