Finance ministry overstates revenue inflows by more than $200 million, poor monitoring blamed
Another report from the auditor general’s department found that the finance ministry is failing to properly monitor its revenue inflows causing errors including an overstatement by more than $280 million.
The audit was done on the ministry’s regulatory operations and appropriation accounts for the financial year 2012-2013.
In her report, Pamela Monroe Ellis said the failure to properly monitor resulted in discrepancies in the reporting of inflows as miscellaneous revenue which were not identified in a timely manner.
According to the auditor general, revenue from the provident fund, dividends and financial distribution and bank fees were understated by $276,644,000.
And it was also found out that revenue from cash forfeiture and dividends were overstated by $282,309,000.
Monroe Ellis says the reporting of incorrect revenue inflows and misclassification of revenue types renders the information in the Financial Statement of Revenue Estimates unreliable.
She adds that users of the information could make inappropriate decisions and analysis as to whether the ministry met the projected revenue targets.
The auditor general says the finance ministry should formulate and implement policies and procedures to govern the process of accounting for miscellaneous revenue.
THE GLEANER MINUTE