Basis of recording questioned
4 April, 2018, 5:16 pm
Update: 5:16PM The Ministry of Infrastructure and Transport in their submission to Public Accounts Committee (PAC) this morning were questioned by chairman Ashneel Sudhakar on why their FMIS general ledger had a nil accounts receivable balance whereas the TMA account for 2016 account had a balance of $210,188.
“What basis of recording are you using for the FMIS and I understand from the audit findings that you are doing both cash basis and accrual accounting,” Mr Sudhakar said.
The ministry�s principal accounts officer Sen Jeet said before they were recording cash sales only and now they were also recording credit sales.
When the chairman asked how was credit sales recorded Mr Sen said: “It was recorded only in the department ledgers but it was not recorded in the system.”
The ministry’s initial comments on the issue was that they were recording all TMA sales on a cash basis and this is why there was a nil balance in the FMIS accounts receivable.
The ministry’s team was led by deputy secretary Manasa Lesuma with the PAC consisting of chair Mr Sudhakar, Government member Alex O’Connor and Opposition members Aseri Radrodro and Ratu Naiqama Lalabalavu with reps from Ministry of Economy and the Office of the Auditor-General.