4.1.5.1 The Committee recommends that in future, the Ministry should obtain the necessary approvals to vary procurement rules and regulations and proper books of accounts should be maintained at all times to ensure full accountability of public resources.
4.1.6 Poor Management of Fuel (2005)
For the second year running, the audit noted a laxity in fuel management. On March 10, 2015, a payment of $4 998 was made for the purchase of 3 660 litres of diesel from Redan Petroleum and on August 17, 2015, a payment of $9 996 was also made for the purchase of 7 460 litres of diesel. No records of these purchases were made in the fuel register although the bank statement showed that the money had been transferred into the supplier’s account on March 19 and August 24, 2015 respectively. Furthermore, there was no evidence that the fuel was received by the Ministry as receipts from suppliers were not produced for audit. Follow ups on progress of the requisition were not done.
The Ministry informed the Committee that the outstanding 3 660 litres of diesel worth US$4 998 procured on March 10, 2015 was resolved and the coupons were collected and recorded in the register. Evidence in that regard was availed to the Committee. With regards to the 7 460 litres of diesel worth US$9 960.40 procured on August 17, 2015, the Ministry indicated that the coupons were collected on August 25, 2015. The 7 540 litres of diesel recorded in the register was attributed to the amount in question and the variance of excess 100 litres was ascribed to the change in price. The Ministry assured the Committee that tight control measures have been taken to guard against recurrence in future.
4.1.6.1 The Committee recommends that the Ministry should obtain confirmations from Redan Petroleum to facilitate reconciliations with the 7 560 litres of diesel recorded in the register by December, 31, 2016.
4.2 STANDARD DEVELOPMENT FUND, 2013 AND 2014
4.2.1 Levy Income (2013)
Section 3 of the Standards Development Fund Act [Chapter 14:19] stipulates that the Minister may, by Statutory Instrument, impose a levy on such class or description of employers as may be specified by notice. The audit observed that the Fund had no comprehensive list of employers upon which the levy is imposed. The completeness and accuracy of the levy income figure of $12 846 938 disclosed in the financial statements could not be validated.
The Ministry indicated that the Fund employer’s list is compiled from the inspectors’ reports. The inspectors make physical visits to employers where employees are determined, registered or identified. The employers’ list forms the database for the Standards Development Fund. The Ministry was in the process of computerising the employers’ list as previously it maintained manual records. Evidence availed to the Committee showed that the client database is now in place and being updated regularly and as such the observation had been cleared to the Committee’s satisfaction.
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