Major anomalies highlighted in 2013 AG's Report on Nausori Town Council

Major anomalies highlighted in 2013 AG's Report on Nausori Town Council

Nausori Town Council

The Auditor General’s Report on Municipal Councils for 2013 has revealed that Nausori Town Council has a weak structure for its financial reporting and the council lacks a good financial management and accounting system.

The Audit Report noted that no supporting documents were provided by the Nausori Town Council for capital grants provided by government.

The Council received a capital grant of $1.304 million in 2013 from the Ministry of Local Government and Housing, however the Council was not able to provide the grant agreement signed with the Ministry of Local Government and Housing.

According to the Auditor General’s Report, the Nausori Town Council stated that all agreements are properly kept in the CEO’s office, however, the grant agreement was not produced for verification during audit.

A copy of the agreement was also requested from the Ministry of Local Government but was not provided for the Audit team’s review despite repeated follow ups.

The Auditor General’s Report also highlighted that the Nausori Town Council did not provide tenancy agreements for a number of its properties that have been let out on rent.

The Council advised the audit team that tenancy agreements have been prepared and signed off and copies have been sent to Fiji Revenue and Customs Service for stamping.

It was also found in the Auditor General’s Report on Municipal Councils for 2013 that the Nausori Town Council does not have a computerized accounting system and therefore relies on manual accounting system for financial information.

The audit team noted that separate general ledger accounts were not maintained for a number of accounts reflected in the financial statements.

Major anomalies were also found in payments and procurement of goods and services.

One such example is contract documents for the garbage contractor who was engaged for five years effective from 8th August 2012 at an annual cost of $166,400 was terminated in October 2013 due to non‑performance. However, the council was unable to produce contract documents and the performance assessment report to support the termination of contractor.

The council advised the audit team that it will establish full electronic financial system for which work will commence from early this year.

We are trying to get comments from Local Government Minister Premila Kumar.