PAC to summon local gov’t officials amid increase in audit disclaimers
Published:Wednesday | July 17, 2024 | 12:09 AM
A sharp increase in the number of disclaimers issued by the Auditor General’s Department (AuGD) to municipal corporations raised eyebrows on Tuesday during a meeting of the Public Accounts Committee (PAC) in Gordon House.
Deputy Auditor General Marlon McAdam told members of the PAC that of the 44 opinions issued by the auditor general in relation to financial statements submitted by municipal corporations, 38 – or 86 per cent – of them are disclaimers.
In the AuGD’s 2022-2023 annual report, Auditor General Pamela Monroe Ellis reported that she issued 22 disclaimer opinions to several municipal corporations for their failure to properly account for billions of dollars spent or in their possession.
On Tuesday, members of the PAC learnt that the disclaimers issued to municipalities increased from 22 earlier this year to 38.
The issuance of a disclaimer means that the auditor cannot form an opinion on the financial statements submitted because the necessary information and evidence to do so have not been provided.
The deputy auditor general stressed that without the submission of the necessary information to support financial statements, the auditor general was not in a position to say whether the accounts were true or fair.
“That is a very serious matter, and as it is now, we have not seen any significant improvements, and that is why we say it is a matter we continue to monitor,” McAdam said.
Committee Chairman Julian Robinson observed that there are systemic issues facing the municipal corporations, adding that the PAC would have to summon the permanent secretary in the Ministry of Local Government and Community Development to appear before the committee to respond to the concerns.
McAdam said that the AuGD has embarked on a project to reduce the massive arrears of financial statements that have not been submitted by the municipal corporations.