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AUDIT OFFICE OF GUYANA Promoting Good Governance, Transparency and Improved Public Accountability REPORT OF THE AUDITOR GENERAL ON THE PUBLIC ACCOUNTS OF GUYANA AND ON THE ACCOUNTS OF THE MINISTRIES/DEPARTMENTS/REGIONS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2008 31 March 2010 Hon. Ralph Ramkarran, S.C., M.P. Speaker of the National Assembly Public Buildings Avenue of the Republic Georgetown. Dear Mr. Speaker, REPORT OF THE AUDITOR GENERAL ON THE PUBLIC ACCOUNTS OF GUYANA AND ON THE ACCOUNTS OF MINISTRIES, DEPARTMENTS AND REGIONS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2008 In accordance with Article 223(3) of the Constitution of the Republic of Guyana, I am pleased to submit the attached report on the Public Accounts of Guyana and on the Accounts of the Ministries/Departments/Regions for the fiscal year ended 31 December 2008. The report is required to be laid before the National Assembly, and I would very much appreciate if this is done at the earliest opportunity. With best regards. Yours sincerely, DEODAT SHARMA AUDITOR GENERAL (ag.) MISSION STATEMENT As the Supreme Audit Institution of the State we are committed to the promotion of good governance including openness, transparency and improved public accountability through: 1. the execution of high quality audits of the public accounts, entities and projects assigned by the Audit Act; 2. timely reporting of the results to the legislature and ultimately the public; 3. ensuring that the independence, integrity and objectivity of the Audit Office is recognised; 4. the provision of cost effective service by the implementation of the most up-to-date Audit Practices; 5. the recruitment and retention of the best qualified personnel to achieve set targets, on a sustained basis; and 6. developing professional relationships with our clients, and producing reports which facilitate improvements in their operations. REPORT OF THE AUDITOR GENERAL ON THE PUBLIC ACCOUNTS OF GUYANA AND ON THE ACCOUNTS OF THE MINISTRIES, DEPARTMENTS AND REGIONS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2008 TABLE OF CONTENTS PAGE Audit Certificate i Auditor General’s Overview iv Highlights of the Report vi Report on the Public Accounts Statements: Introduction 1 End of Year Budget Outcome and Reconciliation Report (Revenue and Expenditure) 4 Statement of Contingent Liabilities 7 Financial Information Receipts and Payments of the Consolidated Fund 8 Expenditure from the Consolidated Fund as compared with the Estimates of Expenditure 12 Expenditure in respect of those Services which by Law are charged upon the Consolidated Fund 12 Receipts and Payments of the Contingencies Fund 13 Current Assets and Liabilities of the Government 14 Appropriation Accounts of Heads of Budget Agencies 17 Receipts and Disbursements by Heads of Budget Agencies 17 Statement of Public Debt 18 Schedule of Issuance and Extinguishment of all Loans 19 Financial Reports of the Deposit Funds 20 Schedule of Government Guarantees 21 Report on the Accounts of Ministries/Departments/Regions: Office of the President 22 Office of the Prime Minister 25 Ministry of Finance 26 Accountant General’s Department 30 Customs and Trade Administration 32 Internal Revenue Department 39 Ministry of Foreign Affairs 46 Guyana Elections Commission 64 Ministry of Local Government and Regional Development 76 Ministry of Amerindian Affairs 77 Ministry of Agriculture 80 Ministry of Tourism, Commerce & Industry 84 Ministry of Public Works and Communication 86 Ministry of Education 96 Ministry of Culture, Youth and Sports 109 Ministry of Housing and Water 113 Georgetown Public Hospital Corporation 115 Ministry of Health 117 Ministry of Labour, Human Services and Social Security 123 Ministry of Home Affairs 126 Ministry of Home Affairs (Guyana Police Force) 129 Ministry of Legal Affairs 131 Guyana Defence Force 137 Supreme Court 145 Region 1 - Barima/Waini 153 Region 2 - Pomeroon/Supenaam 158 Region 3 - Essequibo Islands/West Demerara 166 Region 4 - Demerara/Mahaica 174 Region 5 - Mahaica/Berbice 188 Region 6 - East Berbice/Corentyne 195 Region 7 - Cuyuni/Mazaruni 204 Region 8 - Potaro/Siparuni 207 Region 9 - Upper Takatu/Upper Essequibo 209 Region 10 - Upper Demerara/Berbice 214 Report on other Entities Audits of Public Enterprises 219 Audits of Statutory Bodies 222 Audits of Foreign Funded Projects 223 Special Investigations 223 Acknowledgements 223 Statements and Accounts 2/1 REPORT OF THE AUDITOR GENERAL ON THE PUBLIC ACCOUNTS OF GUYANA AND ON THE ACCOUNTS OF MINISTRIES, DEPARTMENTS AND REGIONS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2008 AUDIT CERTIFICATE I have audited the Public Accounts of Guyana and the Appropriation Accounts and the Receipts and Disbursements of Ministries, Departments and Regions for the fiscal year ended 31 December 2008, as set out in pages 2/1 to 2/225. My audit was carried out in accordance with Sections 24 and 25 of the Audit Act 2004. Management’s responsibility for the financial statements The Ministry of Finance and the Heads of Budget Agencies are responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor’s responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing, issued by International Federation of Accountants (IFAC), International Organisation of Supreme Audit Institutions (INTOSAI) and the various funding agencies. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. i An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud and error. In making those risk assessments, I consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Ministry of Finance and the Heads of Budget Agencies, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Qualified opinion based on limitation in scope Except for any adjustments, which might have been shown to be necessary as a result of the observations contained in the relevant sections of my report, in my opinion, the financial statements properly present: • The financial information necessary to present fairly the financial transactions and financial position of the State; and • Receipts and Payments of the Consolidated Fund; • Expenditure of the Consolidated Fund as compared with the Estimates of Expenditure; • Expenditure in respect of those Services which by Law are directly charged upon the Consolidated Fund; • Receipts and Payments of the Contingencies Fund; • Appropriation Accounts of Heads of Budget Agencies; and • Receipts and Disbursements by Heads of Budget Agencies; • The Schedule of Public Debt; for the fiscal year ended 31 December 2008. However, because of the significance of the comments as contained in the relevant sections of my report relating to the following statements, I am unable to form an opinion whether they properly present their respective state of affairs as at 31 December 2008: ii • End of Year Budget Outcome and Reconciliation Report of the Consolidated Fund; • Statement of Contingent Liabilities; • Current Assets and Liabilities of the Government (other financial information); • Schedule of Issuance and Extinguishment of all Loans; • Financial Reports of the Deposit Funds; and • Schedule of Government Guarantees. DEODAT SHARMA AUDITOR GENERAL (ag.) 31 March 2010 iii Auditor General’s Overview of the Office 1. The Audit Office of Guyana which was established by the Audit Act 2004 has legal responsibility to audit the financial statements of all government entities. The mission of the Audit Office is to promote good governance, transparency and improved public accountability. In this regard the Audit Office has continually striven to modernize its organizational structure and human resources management systems, while ensuring that the most up-to-date operating procedures, professional practices, technical standards, and modern technology are incorporated. 2. In 2008, the Audit Office continued its improvement of audit procedures, professional practices and technical standards; improving critical support systems to enhance operational effectiveness; institutionalizing best practices and skills transfer; and creating stakeholder awareness of constructive role of the office. This was made possible through
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