No audited accounts from 52 NDCs in last five years
-none from six municipalities for more than decade and half
Despite receiving millions of dollars every year from Central Government, there have been no audited accounts from six municipalities for at least 15 years. The municipalities have also been collecting taxes from residents.
Former Auditor General, Anand Goolsarran
In total, 52 Neighbourhood Democratic Councils (NDCs), representing 80 per cent of total number, did not have audited accounts for the last five years. About 18 have also never produced audited accounts since they were established in 1994 – that is for 19 years. Writing in his weekly column in the Stabroek News, former Auditor General, Anand Goolsarran, was critical noting this is despite the fact that, as in the case of municipalities, NDCs are in receipt of significant amounts of money from the Treasury, not to mention rates and taxes being collected from local residents. “For example, the 65 NDCs received a total of $195.5 million in 2012 from budgetary allocations approved by Parliament. According to the Audit Office’s records, most of the entities had submitted financial statements for audit several years. However, some statements had to be returned for corrections while for others, the audits were either being planned or were being finalised.” The 2012 Auditor General’s report issued on September 30 last stated that of the 294 sets of financial statements in the possession of the Audit Office as at September 30, 2011, a total of 221 statements were audited by December 2011 but the related reports had not been issued. However, no audits were finalized in 2011 while for 2012, 48 audits were completed and the related reports issued. “So the question is: what happened to the audit of 173 statements carried forward to 2012 that were completed and were
Local Government Minister, Ganga Persaud
“being finalized? Why should there be this overwhelming and undue delay in completing the audits of NDCs when the financial statements comprise merely a statement of receipts and payments? A dedicated auditor with access to the cash book, vouchers and bank statements will take less than a day to complete the audit.” Goolsarran said that an analysis of the situation paints yet another sorrowful picture of the functioning of the Audit Office whose mission statement states, inter alia, that the Audit Office is committed to promoting good governance, including openness, transparency and improved public accountability, through the execution of high quality audits and the timely reporting of the results. “It is time the Audit Office takes stock of itself and ensure that appropriate measures are in place to lift standards of efficiency and effectiveness consistent with its mission statement.” He called on the Ministry of Local Government to play a greater monitoring role in ensuring the timely and proper accountability of NDCs. “After all, there are two subject Ministers as well as two former Ministers acting as advisors to oversee the work of the Ministry. Parliamentarians must also demand proper accountability for funds previously given to the NDCs before new funds are allocated.” Regarding what can be done on a political level, the former Auditor General pointed out that the Minister of Finance has until March 31st to prepare and lay before the National Assembly the Estimates of Revenue and Expenditure for 2014. “Given the present configuration of the National Assembly and in order to ensure the smooth passage of the estimates,
Auditor General, Deodat Sharma
commonsense would dictate that there should be meaningful consultations with the combined Opposition during the preparation of the estimates. However, such consultations have so far not taken place, and from all appearances, we are heading for a third consecutive year of serious disagreements over allocations for government programmes and projects, and possible budget cuts.”
