Backlog of outstanding audited reports raises concern

He stated that the committee would review the report in the next Parliament report, adding that major improvements were needed at the municipal councils and ministry levels.

The Assistant Minister for Finance and the Public Accounts Committee chair Esrom Immanuel has raised concerns regarding the backlog of outstanding audited reports, citing delays in submitting draft financial statements to the Office of the Auditor General (OAG) as the cause.

Mr Immanuel has also highlighted issues of mismanagement of funds and the misuse of capital grants for operational expenses in the audit reports on municipal councils for 2018-2019 and 2019-2020. Mr Immanuel emphasised the lack of compliance with the financial reporting framework, international accounting standards, and the Local Government Act, as reflected in the audit opinion issued by the OAG.

He stated that the committee would review the report in the next Parliament report, adding that major improvements were needed at the municipal councils and ministry levels.

“Lack of compliance with the financial reporting framework, lack of compliance with the international accounting standards and lack of compliance with the Local Government Act,” Mr Immanuel said.

“The lack of compliance is reflected in the audit opinion issued by the OAG. In the 2018-2020 report, the OAG issued modified or qualified opinions on six financial statements that were audited while eight financial statements were issued with modified with disclaimer of opinion.”

He said the committee would look into the report for the next report to Parliament.

“One thing that is certain is that we will agree that there is a need for a major improvement at all our municipal councils and also at ministry level and how they keep, operate their financial affairs and also how they keep their books,” Mr Immanuel said.

Opposition Member of Parliament Semi Koroilavesau called for a change in the chairman of the Public Accounts Committee, citing unfairness with the Assistant Minister for Finance holding the position.

However, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, defended the government’s decision, stating that there was no conflict of interest since the committee was reviewing all annual and audit reports that occurred during their leadership.