Durrant Pate/Contributor

The effectiveness of the Auditor General’s Department (AuGD) in providing oversight of government expenditure is being threatened by the systemic late provision of financial statements by government ministries, departments and agencies (MDAs).

The timely completion of audits by the AuGD of MDAs continues to be impacted by the late submission of Financial Statements and Appropriation Accounts, delays by auditees in providing the relevant supporting documents, and inaccurate or incomplete statements.  In its 2024 Annual Report, which was tabled in Parliament last week, the AuGD notes that up to the time of this report, a total of 421 statements were outstanding, spanning financial years 2009/2010 to 2023/2024. 

Of this number, 181 represent Appropriation Accounts and 240 represent the Financial Statements of Public Bodies.

Assurance Audits 

During the period under review, the AuGD certified 90 statements comprising 25 Appropriation Accounts and 65 Financial Statements, as part of its assurance audits of Financial Statements prepared by Municipal Corporations, Statutory Bodies, Executive Agencies, Internationally Funded Projects as well as the annual Appropriation Accounts of MDAs.

An additional 34 statements were completed and are either awaiting return from the MDAs or final quality control reviews. Another 93 statements comprising 47 Appropriation Accounts and 46 Financial Statements were at varying stages of work in progress.

These audits are undertaken to express an opinion on whether the Financial Statements and Appropriation Accounts prepared and presented by management are free from material misstatements and are presented in accordance with the applicable financial reporting framework.

Completed audits

During the period December 2023 to November 2024, the Quality Assurance Unit successfully completed 13 quality assurance reviews and reports. The completed reviews comprised nine assurance audits and four non-assurance audits. 

One partial review was also conducted on a special audit of the Tax Administration of Jamaica, while nine other QA reviews remained as works-in-progress for the reporting period. As part of its mandate, the QA unit conducts “hot reviews” on all performance audits and special audits (non-assurance audits). 

These reviews are typically conducted before the reports are signed off by the Auditor General, providing an added layer of assurance on the rigour and integrity of the audit process. Additionally, the QA unit performs post-issuance or “cold reviews” of assurance audits (Financial Statement, Appropriation Accounts) evaluating the quality of the audit process and identifying areas for continuous improvement after the reports have been issued.

Findings 

The QA unit has continued to see a reduction in the number of areas identified as non-conformities. Over the last year, the unit has seen improvement in the three main phases of the audit process (Planning, Execution, Reporting). 

Where deficiencies were observed, the relevant QA report along with the appropriate recommendations were submitted for the review and consideration of the Executive Management Committee of the AuGD. 

Of note, where non-conformities were identified during QA reviews, these were either addressed before the reports were published, or did not compromise the audit process or affect the integrity of those audit reports, which were issued before the QA review.