– Audit also finds 50% of expenditure was unrelated to the fund

THE previous Donald Ramotar administration repeatedly approved excess sums for the Sports and Art Development Fund amounting to more than $150M without any justification. In the end, less than 50 per cent of the expenditure had no relation to the fund.According to a Forensic Audit, in 2012 $100M was budgeted for the Art Development Fund, but at the level of Cabinet $106.414M was approved – in excess of $6.414M.
In 2013, approximately $99.9M was approved by Cabinet.
“The approved budget for the year 2014 was G$100,000 000 however, Cabinet approvals were seen for amounts totalling G$116, 118, 097,” the audit report stated.
According to the auditors, during the initial stage of the investigation, the Ministry of Culture, Youth and Sport had failed to present the register in relation to the expenditure in 2012, as such, the total number of payment vouchers relative to the expenditure totalling $99.7M could not have been determined.
However, 249 expenditure vouchers representing an expenditure of approximately $200.4M were presented for the audit. Upon examination, it was noted that only 210 of the vouchers amounting to $76.6M were related to the fund. The other 39 vouchers which represented expenditure totalling $123.98M show no relation to the fund.
“The IFMAS Account Analysis Report at December 31, 2012, revealed that the expenditure for all sub-activities under Programme Two, including the expenditure for the Sports and Art Development Fund were grouped under Programme Administration. The actual expenditure for 2012 could not be ascertained,” the auditors reported.
Similar trends were seen in 2013. Prior to the preparation of the draft report, 197 expenditure vouchers were presented totalling $155.9M. However, they were presented without the register.
When examined, only 96 of the vouchers amounting to $15.9M were related to the fund, the remaining 101 vouchers representing expenditure totalling $139.9M showed no relation.
As was the case in 2012, the actual expenditure incurred or associated with the Sports and Art Development Fund for 2013 could not have been ascertained.
In response, the ministry stated that the 101 vouchers totalling $139.9M were payments for National Trust, Professional Sports Programmes and the Castellani House. However, this could not have been verified because of the ministry’s failure to implement and maintain a system to systematically track the expenditure.
“A total of $99.9 was reportedly expended in the expenditure schedule for 2013 submitted by the ministry. However, only four Cabinet approvals totalling $10.140M were presented for audit prior to the draft report dated 10th August, 2015,” the auditors pointed out.
For 2014, 105 payment vouchers valued at $61.8M were not presented for examination. As a result, the auditor said the accuracy and validity of the amounts expended in the sum of $61.8M could not have been verified.
Financial discrepancies were also discovered in instances where contracts were awarded.
According to the auditors, the sum of $172, 000 was awarded for the Cleaning of Castellani House compound and the clearing of a large concrete garbage bin in the area, although there were approved budgetary estimates for Castellani House.
Additionally, $996,000 was awarded for repairs to the eastern walls and construction of flooring for storeroom at Castellani House, although there was an approved budgetary estimate for the entity.
“The third contract for the sum of $349,102 was paid from the Sports and Art Development Fund to Massy Security (Guyana Inc) for Baton Security Services for Castellani House, for October and November 2014. The payment was within the ministerial limit for contracts and would have required the authority of the Ministerial Tender Board. (However) such authority was not seen or indicated on the payment voucher, sub-vouchers or documents in support of the transaction; neither was there a contract to support the payment made to the security company,” the auditors pointed out in their report.

(Svetlana Marshall)