The Auditor General’s Office has made some strong suggestions in its 2013 report to the Education Ministry in relation to a number of matters picked up during the audit.
The report states that the Ministry’s Finance Manual does not state the limit for officers to approve and carry out adjustments into the general ledger which is a high risk of fraudulent or incorrect journal entries passed and processed into the Financial Management Information System.
The audit noted a number of examples of journal vouchers not approved which included amounts ranging from $20,000 to $5 million.
The Auditor General said the Permanent Secretary for Education should consider reviewing the Ministry’s Finance Manual and provide approval limits for journals.
The report also said that the Permanent Secretary should investigate and take appropriate action against the Principal Accountant for not controlling and monitoring the processing of journals.
However the Ministry responded by saying that it wants to continue with the current practice as the journal vouchers are raised to rectify mis-postings.
The report also highlighted that the Education Ministry destroyed the free bus fare coupons and ticket butts for the year 2013 without proper approvals as it was required for audit purposes.
This has been the practice since the inception of the bus fare scheme in 2010.
$16.1 million was allocated for the free bus fare program in 2013.
The Education Ministry claims that it does not have enough space to store the vouchers and there is a risk of fraudulent use of used bus fare coupons.
The Auditor General said the issue was highlighted by the audit in year’s 2011 and 2012.
However the Ministry continued to destroy coupons.
The report has recommended that the Ministry of Finance should take appropriate action for the destruction of records without proper approvals.
The Auditor General said in the absence of the records and inadequate controls, the audit could not ascertain whether the money allocated was properly used.
The Education Ministry now said that it will seek the approval of the Finance Ministry before destroying the 2014 bus fare coupons.
The Ministry has also set up a Transport Assistance Unit who are now responsible for the ordering, receiving, recording and dispatching of the coupons to the districts, divisions and schools.
Meanwhile the Education Ministry has also said to the Auditor General that it will explore the option of surcharging or taking disciplinary action against those that are found to be directly involved in creating overpayment of salaries.
The audit has raised serious concern about the overpayment of salaries which stands at $91,051.
The Auditor General also highlighted that the $89,685 contract for school improvement works for Saint John Cawaci and the $61,845 contract for Delana Methodist Primary was awarded to Skaffworks.
This was done without calling for tenders as required for works valued at $50,001 and more.
The audit report said the Ministry should take action against the Senior Education Officers and the schools for not following proper procedures.
The Education Ministry said it will ensure that all capital works in excess of $50,000 goes through the tender process so that there is transparency and accountability in the use of public funds.
It said it will also take appropriate action against those that do not comply with the Procurement Regulations.
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