Chinamasa under fire

4.3    PROGESS IN IMPLEMENTATION OF PRIOR YEAR’S RECOMMENDATIONS

4.3.1 Non-disclosure of Public Financial Assets

The Ministry had no Public Financial Assets Register with details of loans and investments paid to parastatals, private sector and other organisations since 2009. The Accountant General advised the Committee that Treasury had challenges in locating a consolidated public financial assets register and in order to address the long outstanding observation, Treasury was compiling a new consolidated register. The Audit however noted a big improvement in the quality of return submitted for 2014.

4.3.1.1 The Committee recommends that the PFMS should be configured to capture all payments made for equity and lending by 31st September, 2016.

4.3.2    STATEMENTS OF PUBLIC FINANCIAL ASSETS 2013.

4.3.2.1    Incomplete Accounting Records for Public Financial Assets

Treasury did not keep proper records of accounts such as the ledger/register for Public Financial Assets that show the amounts disbursed from loan appropriations, net amounts outstanding, recoveries of loans and adjustments made during the year. There was no evidence suggesting that the Statement of Public Financial Assets was checked and verified in line with good international practice. The statements might have errors and/or omissions due to poor maintenance of records resulting in the misstatement of the Public Financial Assets and failure to effectively monitor the Account. The Accountant General advised the Committee that Treasury had challenges in locating the consolidated public financial assets register; however, they are currently compiling a new register from audited records. The Office of the Auditor General advised the Committee that the yearend return for 2015 showed some improvements.

4.3.2.1   As in the above observation, the Committee recommends that the PFMS should be configured by 31st September, 2016, to capture take-on balances, loans, investments, recoveries and adjustments to ensure proper accountability of public financial assets.

4.3.3 Opening take on balances of $549 128 116 which did not agree with closing balance of $554 128 116 as at December 31, 2012

The opening balance of $549 128 116 did not agree with the closing balance of $554 128 116. This anomaly has been observed over a number of years and the adjusted opening balance was not supported by any documentary evidence. It was observed that registers/ledgers of the Public Financial Assets were not being maintained in the Public Finance Management system.

Expenditure for lending and equity only appeared in the year the payments were made resulting in loss of accounting information. The Accountant General informed the Committee that Treasury does not directly pay debtors as payments are done through parent Ministries. It is therefore, the responsibility of each Accounting Officer to ensure that balances are reconciled to debtors.

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