Reconciling $115 M difference between post office, social security ministry near impossible – PAC hears
Even with the willpower to reconcile the outstanding sum of $115 million between the Ministry of Human Services and Social Security (MHSSS) and the Guyana Post Office Corporation (GPOC), the Public Accounts Committee (PAC) yesterday heard that it was nearly impossible to do so due to the lack of information.
Finance Secretary at the Ministry of Finance Sukrishnalall Pasha made the disclosure when he responded to a question from Government Member Juan Edghill. Nonetheless, he told the committee that they will work to bring the matter to a close.
Edghill, during the scrutiny of the 2019 Auditor General’s Report on the Ministry of Social Protection, questioned the reason for the unreconciled difference between the two agencies. “I would like this to be flagged in our report for the National Assembly… As a matter of urgency this needs to be remedied by the various parties to bring some finality… We cannot continue to have this situation reoccurring,” he told the committee.
According to the 2019 Auditor General’s Report, in the Cash Book Summary, which contains a sum of $1.450 billion, there is an unreconciled difference of $115,931,000, which was used as a balancing figure in the daily totals for the imprest. An examination of the account showed that the sum of $944,367,000 were indebted by GPOC to the ministry, the report said. The reconciliation statements received from GPOC for the month of December 2019 revealed that it was indebted to the ministry in the sum of $732,684, 000, it added.
An explanation from the Head of the Budget Agency stated that the difference of $211,683, comprised $201,361,000 (coupons for December 2019 received by the ministry in 2020), $38,000 (amount understated by GPOC as coupons paid in 2017) and $10,360,000 (amount overstated by GPOC for 2014 to 2016).
Against this background, the Audit Office recommended that the agency continue to reconcile the Old Age Pension Account with a view of having the difference cleared and ascertain GPOC’s indebtedness to the ministry. It was also stated that it should obtain approval for the closure of the account and the opening of a new account to facilitate the payment of the old age pension and public assistance.
The PAC was informed that the recommendation for the new account was put in place and Permanent Secretary of the ministry Shannielle Hossein Outar related that the accounts were currently conciliated.
However, Pasha explained that at a meeting with the ministry he was informed that the reconciliation efforts would be difficult.
“The information to do the reconciliation is difficult to gather. This is something I intend to discuss with the AG and see if we can find some solution for the conciliation. It is difficult if not impossible,” he shared. His position was agreed to by the PS.
Nevertheless, Auditor General Deodat Sharma said that they were working to bring the accounts of the GPOC up to date with the hope of finding some answers. The accounts have been audited up to 2021, he explained before stating that there was still a disclaimer to the sum. He pointed out that they will have to conduct an internal audit to find some of the answers between the Ministry of Finance, GPOC and the Ministry of Social Protection.
“This is the only way we are going to know the true status of the $115 million. The information the post office provided is uncertain.
They have figures on who owe who but they are disclaimed figures and that is our problem,” Sharma said to the committee.
It was explained to the committee that included in the unreconciled difference was money that was in robbery and fraud, as well as uncashed vouchers.
When Edghill enquired if they should draw a red line on the issue, Pasha stated that a draft for that was done but it was unclear why it was never implemented.