Financial Statement of Economic Ministry not in accordance with regulations: Audit report

The Auditor General’s Office has said that the Financial Statement for the year 2010 of the Ministry of Economic Development is not in accordance with the state financial regulations.

The Audit Report released last Monday says that the Annual Financial Statement submitted to the Auditor General should be prepared according to the International Public Sector Accounting Standards (IPSAS), and that the basis of the Economic Ministry’s Financial Statement is unclear. The full set of documents as obligated by IPSAS was also not submitted to the Auditor General.

The Audit Report also said that large discrepancies were noted between Economic Ministry’s finances and Finance Ministry’s economic ledger of the Economic Ministry under the Public Accounting System. The differences of Rf 6.6 million in income and Rf 8 million in expenditure, were not reconciled by the Economic Ministry.

The Report further said that the purchase of goods and services by the Economic Ministry in 2010 were not in accordance with the state financial regulations. Several assets purchased were missing, including a laptop which the Ministry claims was lost. Yet, the matter was not reported to the relevant authorities.

The Report also said that a contract of Rf 595,930 was awarded to MS Carpentry for the finishing touches of the new building of the Economic Ministry, however, Rf 179,629 was spent in addition following the failure to present to Ms Carpentry the details of the work to be completed.

The Report also said that Rf 8 million spent as compensation for the losses suffered by five parties following the government’s ban on souvenirs using shark components, was not included in the Ministry’s budget approved by the Parliament.