Audit variance

A NUMBER of discrepancies were noted in government’s annual financial statements for 2008 including bank account balances totalling $1.3m for overseas missions and agencies that were not reconciled nor confirmed by relevant overseas banks.

The release of government’s annual financial and appropriation statements for 2006-2012 on the Ministry of Finance website also highlighted other audit opinions expressed by Auditor-General Tevita Bolanavanua.

The 2008 financial statement drew attention to a prior year’s adjustment of $4.2m in the consolidated fund statement of receipts and payments that could not be verified and a capital loss of $4.4m incurred when four trading and manufacturing account (TMA) operations were written off.

“These were the gravel washing plant, cane trucks, RFMF air wing and marine shipbuilding TMA.

“Debts owed to government totaling $9.5m was not recorded in the lending fund account, of which $4.6m was advanced to Rewa Rice Ltd and $4.9m was the guarantor payment on behalf of Fiji Electricity Authority and Fiji Sugar Cane Growers Council.

“Account balances totaling $64.9m in the clearing account for domestic and overseas loans appearing under the revolving fund account are outstanding.

“Other clearing accounts in the operating fund totalling $73.8m also remained outstanding,” the 2008 financial statement highlighted.

The report also pointed to drawings account being reduced with unexplained debit balances totalling $16.7m and $10.6m in respect of trust moneys shown in the statement of assets and expenditure of the whole of government financial statements not appropriately supported by cash at bank in a separate trust bank account.

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