IMPROPER record-keeping, irregularities and misappropriation of funds prior to 2008 has resulted in the Integrity Commission’s account on the statement of financial position, valuing $1.469 million.The Audit Office in its report as at December 31, 2014, noted that this amount has since been brought forward on the statement for the years 2008 to 2013.
However, the statement of the financial position as at 31 December 2014, showed a reduction of this amount by $699, 207.
“This movement has not been justified with any evidence or basis for the reduction in the suspense account. As a result, the auditor is unable to confirm that the movement was appropriate and/or the accuracy of the amount reported in the financial statement,” the Audit Office said.
The Commission explained that prior to 2008, due to improper record-keeping some of its assets had to have an estimated value in order to prepare the fixed asset register.
It said due to the revaluation of these assets, the suspense account was decreased.
The Audited Financial Statement of the Commission also has found that the cash flow of the entity as at December 31, 2014, was overstated by some $264, 135.
An amount of $124,814 represented the reconciled bank balance as at December 31, 2014, but on further examination into the accounts of the Commission, the Audit Office revealed that the cash and cash equivalent on the statement of cash flow is $388, 949, giving an unknown difference of $264,135.
The Commission acknowledged the error and promised to resolve the matter. The Audit Office also noted that the amount of $1.795 million was reported as non-current assets of the Commission.
This amount included the value for the office equipment and furniture and fixtures.
“A physical verification done on the respective assets revealed that three assets that are obsolete remained on the fixed-assets register. The inclusion of the three assets in the register results in an overstatement of non-current assets by the sum of $67, 257, since these assets are not in use or provide economic benefit to the Commission.”
To correct this situation, the Audit Office recommended that the Commission update the register to accurately reflect the assets providing economic value to the Commission.
It also recommended that the Commission seek to have assets repaired or brought back into economic use or to dispose of same.
The Commission again acknowledged the shortcoming and said it would take the recommendation into consideration.
This aside, the auditor found that an amount of $505, 842 was included as deferred income statement of comprehensive income, and as a result, the non-compliance with IAS 20.
An explanation or basis for this inclusion could not be ascertained.
The Commission acknowledged the error and also promised to fix this shortcoming.
The Integrity Commission was established on September 24, 1997, and consists of a chairman, and no less than two nor more than four other members. Its vision is to improve public confidence in the integrity of holders of public office.