Georgetown: Reflecting that the Contingencies Fund continues to be abused, the 2010 Auditor General Report was presented to the National Assembly today by Speaker of the House, Attorney-at-Law, Raphael Trotman.
The Report points to the abuse of amounts totalling in excess of $550M which was drawn from the Fund and utilized to meet expenditure that did not meet the eligibility criteria as defined in the Act. Additionally it was outlined that amounts totalling more than $211M were shown as Contingent Liabilities for entities that were no longer in existence. However, it was noted that the Ministry of Finance and the Accountant General’s Department had still not taken steps to have these liabilities transferred to the Public Debt.
It was also outlined that several transfers from other accounts to the Consolidated Fund were not effected and several accounts had overdrafts. Transfers not effected included an amount of approximately $4.416 Billion representing balances held in 11 special accounts, a balance of $23M held in the General Account Number 405 and another balance of $316M held in Non-Sub Accounting Ministries and Departments Bank Account Number 3001, while another balance of $13.287 billion was held in other Ministries/Departments bank accounts.
Accounts with overdrafts included the old Consolidated Fund bank account Number 400 which was overdrawn by $46.776 billion as at December 31, 2010, and the new Consolidated Fund Bank account Number 407 which was overdrawn by $4.684 billion also as at the end of December 31, 2010.
The Fiscal Management and Accountability Act of 2003 (FMA Act) provides for the regulation of the preparation and execution of the annual budget, the receipt , control and disbursement of public moneys and the accounting for public moneys and is the most vital legislation governing the transparent and efficient management of the finances of Guyana, the report outlined. It was stated too, that the according to this Act, a number of Public Accounts Statements are required to be prepared and submitted for audit hence this allowed for the aforementioned observations made by the Auditor General’s office.
However it was pointed out that the introduction of the IFMAS, which replaced some aspects of the previous manual system contributed to a more efficient accounting system and assisted in avoiding over-spending and reduced the processing time of payments, among others.
As a result several accounts, which were previously operational, were required to be closed. However, this was not done thus allowing for the continued existence of the old Consolidated Fund bank account Number 400, the General Account Number 405, which was used as an intermediary account to monitor and control releases of funds from the Consolidated Fund to the accounts of Ministries and Departments. Also in existence remained the Non-Sub Accounting Ministries and Departments Bank Account Number 3001 which was used as an intermediary account to monitor and control releases of funds from the Consolidated Fund to Non-Sub Accounting Ministries and Departments.
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