Public Accounts part trios

We continue to analyze the report of the Public Accounts' Committee.

OFFICE OF THE PRESIDENT FOR THE YEAR ENDED 31 DEC 2004.
The Public Accounts Committee said that it expressed dissatisfaction that the Guyana Office for Investment retained $0.522 Million which was not expended, IN VIOLATION OF THE LAW, from the amount $7.4 million allocated for the rehabilitation of office building and purchase of office equipment instead of returning same to the Office of the President for REPAYMENT to the Consolidated Fund.

FOR THE YEAR ENDED 31 DEC 2005
The Public Accounts Committee in its report noted the frequency in which the National Communications Network operated in violation of the laws in not following the Procurement Regulations and advised that the Accounting Officer of that Agency should employ greater supervisory control to ensure that there was adherence to Tender Board Procedures.

MINISTRY OF FINANCE
FOR THE YEAR ENDED 31 DEC 2004
The Committee in its report for that year expressed concern about the many unlicensed liquor operators. It was noted from the Auditor General’s report that amounts totaling $15.949 million were collected for liquor licenses. An examination of liquor licenses records for Regions 2, 3, 4 and 10 revealed a total of 1855 registered premises did not renew their licenses in 2004. In the absence of information of the status of these businesses, it could not be determined whether all were due for renewal. The PAC proposed that the Custom and Trade Administration investigate this matter.
 
FOR THE YEAR DEC 31 2005
The Committee continued to express concern that monies collected from the Lottery Fund
1.WERE NOT deposited into the Consol Fund as provided for in the Constitution and
2.Were spent without the consent of the National Assembly

FOR THE YEAR 31 DEC 2004
MINISTRY OF FOREIGN AFFAIRS
The Committee reports that an imprest bank account no.444 which became non operational in July 1996 reflected an overdraft of $51.635 million. The Committee proposed that the Ministry prepare a losses report and submit it to the Finance Ministry to resolve the issue.

With some 11 stale dated cheques valued at US$12,591.36, which were remitted though Diplomatic Bags and whose whereabouts have not yet been ascertained, the Foreign Affairs Ministry was advised to approach the Finance Ministry with a view of obtaining guidance in the clearing of the cheques.

The Committee said that in respect of the Foreign Missions, the Auditor General noted that some of the Mission lacked adequate segregation of duties in the Accounting Units.

FOR THE YEAR 31 DEC 2005
There was evidence to indicate that remittances to the various Missions were not received in a timely manner to allow for the smooth execution of the operations of these missions. The Report said that remittances to meet capital expenditure did not arrive at the Missions until after the close of the financial year, and the committee expressed serious concerns over the issue. In this regard the committee proposed that a routine system be adopted for remitting monies to missions, especially in relation to capital expenditure.

The Auditor General reported that the main bank account was affected by two outstanding advances totaling US$3,901.83 issued to the Ministry of Foreign Trade and International Cooperation to facilitate payment of hotel expenses for a Ministerial visit.

MINISTRY OF AGRICULTURE
FOR THE YEAR END 31 DEC 2004
The Committee advised the Ministry to present all the financial returns for the warrants issued for 2004 for Audit examinations.

FOR THE YEAR END 31 DEC 2005
Report said that the Committee noted with concern that the National Drainage and Irrigation Authority RECEIVED funds from the Agriculture Ministry through subsidies and Contribution to Local Organizations rather than subventions to conduct its operations. It was reported that in the AG report that the NDIA was formed by ACT in 2004. The Authority came into ACT during MAY 2005 and is a separate and legal entity and is required to maintain its OWN accounting records which are subject to separate reporting and audit.

MINISTRY OF TOURISM, INDUSTRY AND COMMERCE
FOR THE YEAR END 31 DEC 2004
Amounts totaling $1.099 million were expended to purchase computers, photocopier, workstation desks and filing cabinets for the Guyana Tourism Authority resulting in an excess expenditure of $598,544 which was deemed as UNAUTHORISED. The Committee in its report expressed concern that the Ministry has been expending sums that were not approved by the Finance Ministry.

MINISTRY OF EDUCATION
FOR THE YEAR END 31 DEC 2004
Amounts totaling $4.850 million expended to purchase 1000 of ‘What’s cooking in Guyana’. The books were received and taken to the Book Distribution Unit of the Ministry. The report said that a physical count revealed that 609 books were in stock where as the bin card and the stock ledger showed balances of 780 and 826 respectively. The Committee advised the Accounting Officer to consider a new mechanism for the distribution of school books.
Three years has elapsed since the Ministry filed a losses report on the misappropriation of funds totaling $136,637 and the matter had not received a response from the Finance Secretary. The Committee asked that the Accounting Officer take the matter up with the Finance Ministry.

THE GEORGETOWN PUBLIC HOSPITAL CORPORATION
FOR THE YEAR END 31 DEC 2004
The Georgetown Public Hospital Corporation which is now a separate entity from the Health Ministry continued to use the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 NOV 2005 for the purchase of drugs and medical supplies from specialized agencies, locally and overseas. The Procurement Act supersedes the Cabinet decision and as such the Committee advised the GPHC Accounting officer to adhere to the Procurement Act.

FOR THE YEAR END 31 DEC 2005
The Committee in its report noted that the Corporation was using a Cabinet approval as the basis of procuring drugs from the New Guyana Pharmaceutical Corporation rather than procuring such drugs through the Health Ministry. It was reported by the Auditor General that amounts totaling $443.203 Million were paid to the New Guyana Pharmaceuticals Corporation for the supply of drugs and medical supplies and during the year under review, the Corporation entered into 3 contracts using the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 Nov 2003 for the purchase of drugs and medical supplies of which amounts totaling $198.802 million were paid on these contracts.

MINISTRY OF HEALTH
FOR THE YEAR END 31 DEC 2004
The Auditor General Reported that amounts totaling $723.945 were expended on Materials, Equipment and Supplies. Included in this figure are sums totaling $675.816 million which related to the purchase of drugs of which $225.059 million represents purchases made from overseas suppliers. This was done via cabinet approval CP (2003):4: M of Dec 2003 which was utilized to purchase drugs and medical supplies from specialized agencies locally and overseas. Given the time period that would have elapsed, it would appear necessary for the present arrangements for the supply of drugs and medical supplies from overseas be reviewed.

FOR THE YEAR END 31 DEC 2005
The Committee expressed disappointment over the absence of a supervisory role by the Government and particularly the Health Ministry in the procurement process involving the GPC.

ONCE AGAIN THE COMMITTEE WARNED AN ACCOUNTING OFFICER OF THE PRACTICE OF PROCURING GOODS AND SERVICES WITHOUT TENDERING.

LABOUR, HUMAN SERVICES AND SOCIAL SECURITY
FOR THE YEAR END 31 DEC 2004
The Public Assistance imprest bank account no.092 which ceased to be operational several years ago was overdrawn by $270.586 as at 31 Dec 2004. This was due mainly to inadequate provisions made over the years in the National Estimates to facilitate the payment of Old Age pensions and public assistance.

LOCAL GOVERNMENT AND REGIONAL DEVELOPMENT
FOR THE YEAR END 31 DEC 2005
The Committee expressed serious concerns over the failure of the Heads of Municipalities and District Councils to submit financial statements on an annual basis as required by the law despite the legal requirement to produce financial statements in a timely manner as well as the penalties involved for the failure to do so. It was noted in the PAC report by the AG that two of the municipal councils and majority of the district councils have been violating the provisions of the Law.

MINISTRY OF CULTURE,YOUTH AND SPORTS
FOR THE YEAR END 31 DEC 2005
The Committee in its report said that with regard to the Auditor General’s comments that the Ministry operated a current account no. 410004235 held at the then National Bank of Industry and Commerce for the operations of the National Cultural Centre and did not pay over the proceeds to the Consolidated Fund and have the related expenditure met out of the appropriations.
The Committee advised the Accounting Officer to regularize the operations of the National Cultural Centre and reminded that all revenue collected should be paid into the Consolidated Fund and related expenditures be met from appropriations.

MINISTRY OF HOUSING AND WATER
FOR THE YEAR END 31 DEC 2005
It was reported by the Auditor General that unspent monies totaling $23.796 was not refunded to the consolidated Fung BUT KEPT IN A SEPARTE ACCOUNT. The Committee in its report reminded that Accounting Officer that all unspent amounts should be refunded to the Consolidate Fund and expenditures should be met from the appropriated sum.

MINISTRY OF HOME AFFAIRS
FOR THE YEAR END 31 DEC 2005
The PAC in its report said that with regard to the Auditor General’s findings that there were:
1. 41 instances where breaches of Tender Board Procedures were observed
2. 5 payments amounting to $2.720 million for which Ministerial Tender Board approvals were not seen
3. 28 payments valued at $2.245 million subdivided to avoid adjudication to the Departmental Tender Board
4. 8 payments totaling $703,050, which exceeded the limit of $600,000 and should have had the approval of the National Procurement and Tender Administration Board
5. And 9 payment vouchers valued at $7.074 million which had no supporting documents attached to verify accuracy and validity of the transactions.

MORE TO COME: Fuel for Regional administration’s generators’ provided electricity to private homes for a fee, Contractors paid without physical examination done, resulting in overpayment, 300 meters purchased for Hinterland area still in store and Magistrates used $700000 in taxis for out of town duties.