Explore Potential Solutions to the Problem of Qualified Audit Opinions

Project Updates as at 31 May, 2017

Status: Closed

  • The project has achieved the target outcome desired by Cabinet and has been closed. A Project Closure Report has been finalised.
  • The project has resulted in:
    • The appointment of the Financial Secretary as the Finance Leader, to provide guidance and support in order to improve the accuracy, integrity, and consistency of Government’s financial information and to champion improved financial performance across the entire Government.
    • The establishment of monthly CFO meetings to provide a forum to discuss and improve financial matters.
    • The development of a CFO Handbook to assist with the consistent application of accounting policies and will complement the Financial Regulations.
    • The development of a Revenue Completeness methodology and framework to assist with the consistent application of accounting policies.
    • Amendment of the Public Management and Finance Law to bring-about improvements such as a new financial year that is intended to assist with better expenditure decision-making.
    • Improvement of the process for the preparation of consolidated financial statements for the entire Public Sector, transactions between agencies within the Entire Public Sector have been all but eliminated and, any remaining unreconciled inter-agency transactions are now immaterial.
    • Separation of the accounting activities of the Public Service Pensions Board from those of Public Service Pension Funds and legislated that such funds are not to be included in the preparation of consolidated financial statements for the Entire Public Sector.
    • A Revaluation of all public sector entities’ real property and roads network.
    • Significant improvements in the audit opinions on the Government’s actual accounts.

Project Updates as at 30 November, 2016

Status: Execution

This project is being successfully implemented.  Following the establishment of the Financial Secretary as the leader for CIG’s Finance Function and the introduction of monthly Chief Financial Officer (CFO) meetings in May 2016, a CFO Handbook has been completed, which will assist with the consistent application of accounting policies across the entire public sector.  The revenue completeness methodology and framework has been fully established. This will be used to assess the completeness and accuracy of CIG revenue. The Attorney General’s Office has provided legal guidance on the separation of the accounting for the Public Service Pensions Board and the Public Service Pension Plans. Amendments to the Pensions Law are currently being drafted. All public sector assets have been revalued, thus removing the audit qualification on the Government’s Entire Public Sector financial statements. The draft Public Management & Finance (Amendment) (No.2) Bill, 2017, is currently being finalised for approval at the January 2017 meeting of the Legislative Assembly.  Amendments that are included in the Bill includes holding the Chief Officer for finance accountable for compliance with the Law, reintroducing quarterly reporting to the Legislative Assembly for Core Government, and allowing the Government to make the additional and voluntary debt principal payments without causing an increase to the debt-service ratio.


Project Updates as at 25 May, 2016

Relevant EY Recommendations:

22.4 – Initiate project to find practical solutions to the issues of qualified audit opinions.

PROJECTS ASSIGNED TO: MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT

Minister: Hon. Marco Archer

Project Sponsor: Mr. Ken Jefferson, Chief Officer

Overview (taken from Cabinet’s Project Future Programme Brief): This project seeks to address areas of weakness identified by the Auditor General, in order for CIG to receive unqualified or “clean” audit opinions.

Status: In Project Initiation.

Ministry/Portfolio Update:

  • Interagency charges have been confirmed and agreed.
  • Further work is being planned:

° Separation of the accounting for the Public Service Pensions Board and the Public Service Pension Plans, by 31 July 2016;

° Public Management and Finance (Amendment) Bill, 2016 , by 30 September 2016;

° Implement an AGIS interagency module, by 31 December 2016.