THE Auditor General’s Department (AuGD) says $15.7 billion in financial risk has been uncovered in the Ministry of Finance and Planning in relation to public debt amoratisation and interest charges activities carried out between 2015 and 2018.

The over-expenditure was for 46 activities, which the auditor general said involved a breakdown in the Accountant General Department’s commitment planning and control system, and failure to adhere to financial guidelines, which resulted in excess expenditure of $11.379 billion on 18 activities for 2015/2016 – 2017/2018 on the Public Debt Amortised Appropriation Accounts.

Also, public debt interest appropriation accounts for those financial years showed over-expenditure of $4.330 billion under 28 activities. Auditor General Pamela Monroe Ellis noted that although the approved budget for each head was not exceeded, overspending on the various projects on the appropriation accounts had increased the risk of reduced amounts available for Government’s other planned priority activities.The findings are outlined in the Auditor General’s Compendium Report on her department’s performance audit for December 2020 to November 2021, including audits of public bodies up to November 2021, and examinations of the Government’s accounts ending March 31, 2021.The report said the Accountant General’s Department has advised that the commitment control feature mechanism has now been implemented, that should mitigate over-expenditure on activities.At the same time, a review of the finance ministry’s appropriation accounts of public debt amoritisation and interest charges for 2015-2018 revealed regulatory breaches by either non-submission or late submission of those accounts, which had an approved budget of $898 million, Monroe Ellis pointed out.Furthermore, the submission of appropriation accounts with approved budget allocations of $1.074 billion, for those financial years lagged for up to four years after the statutory deadline. “In the context where 26 per cent of the national budget was allocated to public debt for the financial year 2017/18, the Accountant General’s Department failure to submit the appropriation accounts prevented the timely assessment on the implementation of the public debt budget,” the auditor general found.The spotlight has also been shone on Government’s revenue collection agency’s accounting records, showing $327.9 million in payments on expired contracts. The auditor general pointed out that despite being the subject of a 2018/2019 audit report and giving assurance that the arrangement for courier and security services would have been regularised, Tax Administration Jamaica (TAJ) is yet to have a valid contract in place.As a result, for 2019/20 and 2020/21, it paid $171.825 million and $156.087 million, respectively, for courier and security services despite not having formal contracts in place.“The absence of a formal arrangement with the security services provider poses both financial, safety and security risks for TAJ, who may not be able to hold the service providers accountable in the event of non-performance of service or for sub-standard service,” the report stated.Its noted that in 2020 TAJ cancelled the procurement process for courier and security services, which it started because its financial institution outsourced the counting and verification of lodgements to the same courier firm that submitted a bid.The TAJ has promised to ensure that contracts are established for those services for the start of the 2022/23 financial year.

— Alphea Sumner