PAAC not happy with financial secretary’s responses
MEMBERS of Parliament’s Public Administration and Appropriations Committee (PAAC) yesterday dismissed explanations from Financial Secretary Darlene Morrison of her office’s limited knowledge of how the finance ministry handles transactions with government’s ministries, departments and agencies (MDAs).
Noting that permanent secretaries are the chief accounting officers for the MDAs, the MPs expressed concerns that, despite the fact that public funds are disbursed by her office, through the Accountant General’s Department, Morrison was unable to answer questions about the process.
They referred to the Auditor General’s Department’s latest annual report to Parliament which raised the issue of seven years of outstanding appropriation accounting at the Ministry of Education, Youth and Information, revealing what appeared to be a breakdown in accountability and possible breaches of the Financial Administration and Audit (FAA) Act and its regulations.
After Morrison sought more time to provide information to respond to some of the questions, PAAC Chairman Mikael Phillips quipped, “I am sure this would have come across your desk,” as the committee conducted its review of the 2021/22 Second Supplementary Estimates at Gordon House.
Phillips recalled that the auditor general’s report stated that for seven years not even bank reconciliations had not been done, “but every year that same ministry that she was reporting on gets an increase in its budgetary allocation”.
“…We understand that education is important, but still the breach continues! So, at what point does the Ministry of Finance, and you as the financial secretary, step in to ensure that these MDAs are compliant,” Phillips asked.
The chairman was supported by Government member Juliet Holness, who questioned whether any action could be taken in relation to the financial officers of the MDAs who are in charge of administrating, updating and keeping proper accountancy records, when they fail to do so.
She said that, while she suspected the financial secretary could take the decision to provide additional manpower to get up to where they should be, “Is there any form of performance management of their capabilities to do the work, and get it done, do so efficiently, and keep the MDAs up to date? Not just the Ministry of Education and Youth?”
“I would need to do some checks to give you a definitive position,” Morrison responded, suggesting at the same time that improvements are expected shortly.
“Currently, the accounting officer, to the best of my knowledge, can be held accountable. But, in terms of actual sanctions, I can’t speak to that right now,” Morrison added.
“The question is have we ever held any accounting officer accountable,” Phillips asked.
“I mean, over the period you are talking about the Ministry of Education and Youth would have been allocated $642 billion… ( 2012/2013 to 2018/2019) and, in doing your own research, it would be good to know how many other MDAs that are in breach of the same FAA Act. How many accounting officers would have been held accountable?” Phillips inquired.
“Madam Financial Secretary, I am not feeling comfortable that you, as the financial secretary, coming here today to tell me that this is a matter that you have to do some research on. I mean you are the financial secretary!” Phillips charged.
Holness added: “I have sat here for the last five years observing how very often ministers are targeted for breaches within their ministries, as if the minister is the one who runs the ministry. It is not so, and it is something for the public to appreciate, that the permanent secretary is the accountable officer at each ministry, and so it is very, very critical that this is understood.”
Government MP Tova Hamilton (Trelawny Northern) added: “If it is that we have accounts that have been outstanding for seven, eight, nine years, and we have some person in that position, it means that we are not being productive and we are not operating as we should, because we are not doing performance reviews…”
Opposition MP Fitz Jackson (St Catherine Southern) said that the committee would want to make sure that the financial secretary could, for example, say what are the real problems, and why things are not being done to remedy the problems.
He questioned whether the the finance ministry required technical competence that does not already exist, and suggested that the financial secretary inform the committee of these problems if there are any.
The report of the PAAC on the Second Supplementary Estimates will be tabled in the House of Representatives today.