PARLIAMENT’S Public Accounts Committee has cited a number of major deficiencies in the accounting systems of a number of government ministries and departments.

The PAC, in its report for the period January to May 2003, tabled Tuesday by committee chairman Audley Shaw, listed:

* accounting arrears;

* uncleared advances;

* failure to remit statutory deductions;

* losses and irregularities;

* internal control weaknesses; and

* breaches of financial guidelines.

These were among the deficiencies cited in the more than 30 ministries, departments and agencies reviewed between January and May, from reports submitted by Auditor General Adrian Strachan for the 2000/2001 fiscal year.

With respect to accounting arrears, the PAC noted that there were outstanding financial statements for several ministries, departments and agencies, including the Ministry of Labour and Social Security; Ministry of National Security; Jamaica Fire Brigade, Southern Parks and Markets; Jamaica Agricultural Society; College of Agriculture, Science and Technology; Post and Telegraph Department, and three missions of the foreign ministry.

“The committee was alarmed that the financial statements for the Jamaica Fire Brigade Department were outstanding for the period 1996/97 to 2000/01.

“The committee learned that there were so many inconsistencies with the statements that a great deal of qualifying statements may have to be made by the auditors,” the report said.

The Fire Brigade, it noted, had cited inadequate staffing as one of the major problems why its accounts were not completed properly.

Southern Parks and Markets had outstanding financial statements for 1992/93 and 2000/01, but the PAC said it was informed that the National Solid Waste Management Authority, which assumed responsibility for its operations, had since advised that the draft audited financial statements, up to 2001, were ready for presentation to the board.

At the same time, the PAC said the Jamaica Agricultural Society had not presented financial statements for auditing from 1996/97. The agriculture ministry, it said, had promised to follow up and ensure that the statements were completed and submitted. The JAS, had, in the meantime, given an undertaking that the statements would be ready by the end of the 2003/04 financial year, which ends on March 31.

In the meantime, the PAC said it was appalled to find that although the audited financial statements for the College of Agriculture Science and Education (CASE) were submitted, serious audit qualifications were noted.

“…The auditor’s report states that CASE’s accounting records for the years ending March, 2000 and 2001, did not provide sufficient evidence to support its revenue and expenditures to permit the application of adequate accounting procedures. The committee was told that the qualifications were so serious that the auditors refused to offer an opinion as to the state of these accounts,” said the PAC.

The PAC also reported that the Accountant General’s Department was operating in contravention of Section 24(H) of the Financial Administration and Audit Act, which required the accountant general to submit to the Auditor General’s Department certain financial statements by July 31, after the close of the financial year. But it said the Accountant General’s Department was submitting some of its accounts after the auditor general made queries.

The PAC said it also discovered several cases of losses and irregularities in the examination of the accounts of several ministries and departments.

“The committee found that nine cases of losses and irregularities were detected at the Southern Regional Health Authority’s head office. Just under $100,000 of the money defrauded was repaid. The committee learned that persons involved had been relieved of their jobs and that one person had left the jurisdiction. The committee was not pleased that in the instance where a former senior employee defrauded the Government of $248,076, representing cash, computer and computer supplies, the officer was let off on a ‘no submission order’ by virtue of the fact that the money was repaid.

“It was felt that although the money was repaid the person should be made an example and should write a letter of apology to the ministry,” said the PAC report.

Also, it noted, that there were irregularities involving $3,184,833 at the commerce and technology ministry, due to a breakdown in the procurement of office supplies, as well as collusion and/or negligence on the part of some officers. This matter is being investigated by the police.

This irregularity, the PAC recommended, should be the subject of a special report from the accounting officer to the auditor general. “The report should include an in-depth evaluation of the competence, trustworthiness and effectiveness of the officers involved,” said the PAC.

At the same time, it recommended that:

* where there are concerns in the auditor general’s report relating to a Government entity that has a board, the chairman should be summoned before the PAC to answer the unresolved queries;

* a representative of the portfolio ministry, along with a representative from the finance ministry be nominated to all boards of statutory agencies and government companies; and that

* the finance ministry undertake a study of the state of the outstanding statutory deductions in all ministries and departments, with a view to develop a strategy to deal with the situation.

Said the PAC: “Efforts were made to give guidance and suggestions on how to deal with errors and irregularities that occur so that matters can be brought to a closure.”

It said, too, that public officers were warned that they would be surcharged if negligence was cited in the administration of the accounts which resulted in the loss of public funds.