FOR some seven and a half years, the National Land Agency (NLA) has failed to regularly reconcile some of its bank accounts, a basic financial safeguard that Auditor General Pamela Monroe Ellis says left public funds exposed to undetected errors, fraud, and potential losses.

The finding is contained in the Auditor General’s 2024/25 Annual Report, which examined the NLA’s financial statements for the financial year 2011/2012 and revealed long-standing weaknesses in its core accounting practices that could significantly increase its financial risk.

According to the report, the agency delayed the preparation of bank reconciliation statements for five bank accounts, with some delays stretching as long as 92 months, while three statements lacked dates altogether, making it impossible to confirm whether they were reviewed or approved by management.

In outlining the seriousness of the lapse the auditor general pointed out that this created conditions in which problems could persist unnoticed for years.

“The National Land Agency (NLA) faced heightened risks of undetected discrepancies, financial errors, and potential fraud due to weaknesses in bank reconciliation practices,” the report stated.

The auditor general further explained that the delay in reconciling the bank accounts represents a breach of Section 8.7.1 (vi) of the Financial Instructions, which require monthly reconciliations to ensure that cash balances recorded by an entity match those held by its bank.

Beyond the reconciliation failures, the report also found weaknesses in how the NLA tracked and safeguarded its physical assets, compounding concerns about overall financial management.

While the NLA maintained a master inventory system showing assets valued at $93.4 million, the audit revealed that the system had not been updated to reflect additional acquisitions totalling $10.6 million during the review period.

The auditor general warned that this omission breached the Government’s Comprehensive Asset Management Policy and exposed the agency to further risks.

“This omission exposed the agency to significant risks, including inability to verify asset existence and increased vulnerability to loss, theft, or misappropriation,” the report added.

The NLA plays a central role in Jamaica’s land administration system, with responsibility for land titles, surveys, valuation services and geographic data that underpin property ownership and development across the island.

As a result, weaknesses in its financial controls carry implications not only for public accountability, but also for confidence in the management of public property.

In response to the audit findings, the auditor general recommended that the agency strengthen its internal controls and ensure full compliance with established financial rules, including the timely preparation and review of monthly bank reconciliation statements.

The report also pointed to the need for improved asset tracking systems to ensure that all Government-owned property is accurately recorded and safeguarded.

The NLA has since advised auditors that it is moving to address the issues identified, including plans to automate aspects of its bank reconciliation process.

“The agency is advancing efforts to strengthen its bank reconciliation process through planned automation by March 2027,” the auditor general noted, while cautioning that “current obstacles, including unresolved reconciling items, must be addressed to enable successful implementation”.

MONROE ELLIS…the delay in reconciling the bank accounts by the NLA represents a breach of Section 8.7.1 (vi) of the Financial Instructions