Audit arrears from poor state of accounts

Continuing on from: From the Auditor General’s Report 2.

Caves of Barbados Ltd. Caves of Barbados Ltd (CBL) is mandated under the Caves Act 2000 – 12 to manage and develop Harrison’s Cave and any other caves in Barbados. The CBL has reported that the audit of accounts for the financial year ended 2010 is awaiting board approval, and 2011 is near completion.

The audits of accounts for financial years 2012 to 2014 are also outstanding.

Child Care Board. The principal activities of the Child Care Board are to provide and maintain child care institutions for the safe keeping of children in need of care and protection; and to make grants to voluntary organizations or bodies operating child care institutions.

The audit of the accounts for the financial year ended March 31, 2013, has been completed. The Child Care Board has indicated that the audit for the financial year ended March 31, 2014, is in progress.

Enterprise Growth Fund Limited. The principal activity of the Enterprise Growth Fund Limited (EGFL) is
the provision of loan financing and venture capital to dynamic, small and medium-sized Barbadian companies in the productive sectors. EGFL also provides business advisory services and technical assistance to its client companies. The audit of the accounts for the financial year ended December 31, 2013, has been completed.

Fair Trading Commission. The principal activity of the Fair Trading Commission (FTC) is to enforce the Utilities Regulation Act, Cap. 282, the Telecommunications Act, Cap. 282B, the Fair Trading Competition Act, Cap. 326C and the Consumer Protections Act, Cap. 326D.

The FTC is required to promote efficiency and competitiveness, and improve standards of service and quality of goods and services supplied by service providers and business enterprises over which it has jurisdiction.

The audit of the accounts for the financial year ended March 31, 2014, has been completed.

Financial Services Commission. The Financial Services Commission (FSC) commenced operations on April 1, 2011, under the Financial Services Commission Act, 2010. The FSC represents an amalgamation of the former Registrar of Co-operatives, the Securities Commission and the Supervisor of Insurance and Pensions.

The functions of the Financial Services Commission (FSC) include the supervision and regulation of the operations of financial institutions, the establishment of standards for institutional strengthening, for the control and management of risk in the financial services sector and for the protection of customers of financial institutions, as well as creditors and the public, and the promotion of stability, public awareness and public confidence in the operations of financial institutions.

The audit of the accounts for the financial year ended March 31, 2014, has been completed.

Grantley Adams International Airport Inc. The Grantley Adams International Airport Inc. (GAIA) is responsible for the commercial operations and management of the airport in accordance with the Grantley Adams International Airport (Transfer Of Management And Vesting Of Assets) Act (Act 2003 – 3).

The GAIA has revised its financial year to correspond with central Government. As a result the audit of the accounts covered a nine-month period (July 1, 2013, to March 31, 2014). The audit of these accounts has been completed.

Hotels & Resorts Ltd. Hotels & Resorts Ltd was incorporated under the Laws Of Barbados on December 27, 1995. The principal activity of Hotels & Resorts Ltd is the investment in, and development of, hotel premises.

The company has reported that the audit of the accounts for the financial years ended December 31, 2011 and
2012 is in progress. The audit for 2013 and 2014 also remains outstanding.

Island Crafts (Barbados) Inc. The principal activity of Island Crafts (Barbados) Inc. is the sale and marketing of indigenous handicraft items. The BIDC’s director –– finance reported that due to the absence of a board of directors for Island Crafts (Barbados) Inc., the engagement letters for the audit of the financial statements for the financial years ended March 31, 2007, to 2010 remained unsigned for an extended period of time. As a result, the auditors have not produced the financial statements.

This situation is reportedly being resolved and steps are being put in place to address the audits of financial years 2011 to 2014, given the appointment of a board of directors in February, 2014.

National Conservation Commission. The principal activity of the National Conservation Commission (NCC)
is the management, maintenance and development of the public parks, beaches and open areas of Barbados.

Audit of the accounts of the NCC has been completed for the financial year ended March 31, 2011. The NCC has reported that the audit of the accounts for the financial year ended March 31, 2012, is in progress and the audits for the financial years ended March 31, 2013, and 2014 are outstanding.

National Council On Substance Abuse. The principal activity of the National Council On Substance Abuse (NCSA) is to advise the Ministry of Home Affairs on measures for the eradication or control of substance abuse.

The NCSA reported that the audit for the financial year ended March 31, 2010, was completed. The audits for the years ended March 31, 2011, to 2014 remained outstanding.

National Cultural Foundation. The principal activities of the National Cultural Foundation (NCF) are to stimulate and facilitate the development of culture, organize and assist in cultural activities, and develop, maintain and manage theatres and other cultural facilities and equipment provided by the Government of Barbados.

The NCF has reported that the audits of the accounts for the financial years ended December 31, 2010, 2011 and 2012 are completed. The audit for the financial year ended December 31, 2013, is outstanding.

National Housing Corporation. The National Housing Corporation (NHC) is a state agency which has responsibility for the development of land and the construction of housing units for sale or rent to low and middle-income persons. The NHC has reported that the accounts for the financial year ended March 31, 2012, are with the auditors.

The audits for the financial years ended March 31, 2013, and 2014 are also outstanding.

National Productivity Council. The principal activities of the Barbados National Productivity Council (BNPC) are to create and develop methodologies for measurement, management and improvement in the public service and private sector, and to provide technical advice and assistance for devising productivity related payment schedules.

The audit of the accounts for the financial year ended March 31, 2014 has been completed.

National Petroleum Corporation. The National Petroleum Corporation (the NPC) has as its principal activity the supply of natural gas to industrial, commercial and domestic customers. The audit of the accounts for the financial year ended March 31, 2013, has been completed and the NPC has indicated that the draft audited financial statements is awaiting approval by the board. The NPC reported that the audit of the accounts for the financial year ended March 31, 2014, is in progress.

National Sports Council. The principal activities of the National Sports Council (NSC) are to maintain and develop sporting facilities provided for public use, and to stimulate the development of sports in Barbados. The NSC has reported that the audit of the accounts for the financial years ended March 31, 2013, and 2014, has been completed and the council is awaiting the reports from the auditors.

Queen Elizabeth Hospital. The Queen Elizabeth Hospital (QEH) has as its principal activities the provision
of medical care for patients, facilitating the provision of medical education and research, and providing facilities and technical support for education and training in nursing and other health related professions.

The audits of the accounts for the financial years ended March 31, 2009, and 2010, were reported to be in progress.

The audits of the accounts for 2011 to 2014 also remain outstanding.

Rural Development Commission. The Rural Development Commission (RDC) was incorporated on August 21, 1995, under the Rural Development Commission Act, 1995 –12. Its principal activity is to improve the quality of life of persons living in rural communities in Barbados.

The audits of the accounts for the financial year ended March 31, 2008, to 2014, are outstanding. The RDC indicated that no auditors were appointed since 2008 and this was the major reason for the delay of the completion of all the financial statements. The commission reported that auditors had been appointed and were currently working on the financial year ended March 31, 2008.

Student Revolving Loan Fund. The principal activity of the Student Revolving Loan Fund (SRLF) is to assist in the educational process through the provision of loans. The SRLF has reported that the audit of the accounts for the financial year ended March 31, 2014, is in progress.

Technical And Vocational Education And Training (TVET) Council. The principal activities of the Technical And Vocational Education And Training (TVET) Council are to provide advice on policy, and to prepare plans and establish standards for technical and vocational education at the tertiary level, in accordance with national policies and economic needs.

The audit of the accounts for the financial year ended March 31, 2014, has been completed.

Transport Board. The Transport Board’s principal activity is the provision of transportation to the general public. The audit of the accounts for the year ended March 31, 2010, is currently being finalized. The Transport Board indicated that the audit of the accounts for the financial year ended March 31, 2011, is expected to be completed by June, 2015, and the audit for the financial year ended March 31, 2012, by December, 2015.

The audit of the accounts for the financial years ended March 31, 2013, and 2014, also remains outstanding.

Urban Development Commission. The principal activities of the Urban Development Commission (UDC)
are to undertake slum clearance and improve social amenities in urban areas. The UDC also provides loans to individuals with small enterprises, and for assistance in house acquisition, repairs and improvements.

The audit of the accounts for the financial years ended March 31, 2008, to 2014, is outstanding.

Audits of secondary schools. Section 20 (1) (b) of the Education Act requires that the audited accounts of secondary schools be submitted to the minister not later than six months after the close of the financial year which
ends on December 31. The status of the accounts of these schools at December 31, 2014, was as follows:

The audits of the accounts of the schools listed below have been completed for the financial year ended March 31, 2014. The accounts of these schools are therefore up to date as required by the Education Act.

Daryll Jordan Secondary School, Deighton Griffith Secondary School.

The audits of the accounts of the following schools were not up to date as required by the Education Act.

Alexandra School. The School has reported that the audits of the accounts of The Alexandra School for the financial years ended March 31, 2013, and 2014 are outstanding.

Alma Parris Secondary School. The audit of the accounts of the Alma Parris Secondary School for the financial year ended March 31, 2013, is reportedly in progress. The audit for the financial year ended March 31, 2014, remains outstanding.

Christ Church Foundation School. The audits of the accounts of the Christ Church Foundation School for the financial years ended March 31, 2011, to 2014 are outstanding.

Coleridge & Parry School. The school has reported that audits of the accounts for the financial years ended March 31, 2012, and 2013, are in progress. The audit of the accounts for the financial year ended March 31, 2014, is outstanding.

Combermere School. The audits of the accounts of the Combermere School for the financial years ended March 31, 2011, to 2014, are outstanding.

Ellerslie Secondary School. The school has reported that it is awaiting results of the audits of the accounts of the Ellerslie Secondary School for the financial years ended March 31, 2010 and 2011. The audits of the accounts for the financial years ended March 31, 2012, to 2014, are also outstanding.

Frederick Smith Secondary School. The audit of the accounts of the Frederick Smith Secondary School for the financial years ended March 31, 2013, and 2014 are outstanding. The school reported that the auditor experienced difficulties which prohibited the execution of the audit.

Graydon Sealy Secondary School. The audit of the accounts of the Graydon Sealy Secondary School for
the financial year ended March 31, 2013, has been completed. The audit for the year ended March 31, 2014, is outstanding.

Grantley Adams Memorial School. The audit of the accounts of the Grantley Adams Memorial Secondary School for the financial year ended March 31, 2013, remains outstanding. The school reported that the auditor is unable to audit the school’s financial statements for the year ended March 31, 2013.

Harrison College. The audit of the accounts of Harrison College for the financial years ended March 31, 2011, 2012,
and 2013 is completed. The audit of the accounts for the financial year ended March 31, 2014, is outstanding.

Lester Vaughan School. The Lester Vaughan School has reported that the audits of the accounts for the financial years ended March 31, 2013, and 2014 are outstanding.

The Lodge School. The Lodge School has reported that the audit of the accounts for financial year ended March 31, 2014, will commence shortly.

Parkinson Memorial School. The audits of the accounts of the Parkinson Memorial School for the financial years ended March 31, 2013, and 2014 are outstanding. The school indicated that the auditor was experiencing problems with the audits.

Princess Margaret Secondary School. The audit of the accounts of the Princess Margaret Secondary School for the financial year ended March 31, 2012, has been completed. The audits for the years ended March 31, 2013, and 2014 are outstanding. The board of management has requested the Audit Office to audit the accounts and this process will commence shortly.

Queen’s College. The audit of the accounts of Queen’s College for the financial years ended March 31, 2013 and 2014 are outstanding.

Springer Memorial Secondary School. The audits of the accounts of Springer Memorial Secondary School for the financial years ended March 31, 2012, 2013 and 2014 are outstanding.

St George Secondary School. The audits of the accounts of the St George Secondary School for the financial years ended March 31, 2013, and 2014 are outstanding. The school reported that the auditor experienced difficulties which prohibited the execution of the audit.

St Leonard’s Boys’ Secondary School. The audits of the accounts of the St Leonard’s Boys’ Secondary School for the financial years ended March 31, 2013, and 2014 are outstanding.

The St Michael School. The St Michael School has reported that the audit of its accounts for the financial year ended March 31, 2013, is in progress. The audit for the financial year ended March 31, 2014 remains outstanding.

General observations. The audits of a number of Government agencies are in arrears, and this must be of concern for Government. These agencies have received hundreds of millions of dollars and should have had their accounts audited annually as required by law.

The main reason for this state of affairs is the poor state of their accounts which prevents the submission of statements for audit in a timely manner. These agencies, whose audits are in arrears, need to re-examine their accounting systems, processes and staffing to see how they can be improved.

The submission of accounts long after the due period often leads to problems in finalizing the audits. This is contrary to statutory requirements and can create an environment where fraud can thrive and remain undetected.

The audit of the accounts of the secondary schools has proven to be challenging for the private sector auditors since these accounts have been integrated with those of Central Government; and a number of schools have requested the assistance of my office in conducting the audits.

I will provide the necessary assistance wherever possible.

To be continued.

Also see: From the Auditor General’s Report 1.

One Response to Audit arrears from poor state of accounts

  1. Patrick Blackman March 25, 2015 at 9:29 am

    Wow… man this place has some serious problems.. The heads need to start rolling….

    Reply

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