A short report of Auditor General’s office in Health Ministry’s 2014 Annual report has highlighted a number of anomalies in ministry’s financial management reporting system.
The report has also found out the Ministry breaching the provisions of Financial Management Act.
In 2014, the Health Ministry did not maintain a separate Trust Fund Account to record the retention sums deducted from progress payments for capital works.
Auditor General’s report says the Trust Fund Statement of Receipts and Payments for retention sum held were not included in the special Purpose Financial Statements as required under the Financial Management Act of 2004.
The Ministry recorded total receipts of more than 300 thousand dollars in the trust fund Statement of Receipts and Payments.
However the total receipts in the Trust Fund general ledger were more than 195 thousand dollars.
Auditor General Office as a result was unable to ascertain the correctness of the main Trust Fund Account Balance.
The report further highlights that Ministry’s bank reconciliation for the Trust Fund account for December 2014 did not reconcile to the Financial Management Information System general ledger.
The main Trust Fund account had a closing debit balance of $98,155 in the general ledger.
However the bank reconciliation balance as of December 2014 had a debit balance of $32,069 that resulted in a variance of more than $130,000.
The Trust Fund bank account reconciliation for December 2014 also included an unsubstantiated amount of more than 200 thousand dollars to reconcile with manual cash book balance of $32,069.
Auditor General was unable to ascertain the correctness of the main trust fund account balance.
The Trading and Manufacturing balance sheet showed VAT receivable of $134,794.
Auditor General says this was incorrectly stated.