Managing public money is ‘a work in progress’

Apr 28, 2011 News

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– Finance Minister

Government’s management of public money is a work in progress, Dr Ashni Singh, the Minister of Finance, admitted yesterday as he urged private companies to get their books in order.
The government’s financial record has faced stinging criticism, but Dr Singh said the government has taken significant steps to improve financial management of public money. But he admitted that more needs to be done.
“We’re constantly going to endeavour to improve the systems we have and to improve the effectiveness with which we discharge our functions,” Singh told a seminar meant for internal auditors organized by the Guyana chapter of the Institute of Internal Auditors (IAA).

Among the actions taken by the government, Singh said, were revamping legislation to strengthen the independence of the Audit Office, and to expand the mandate of the Parliamentary Public Accounts to have oversight over the Audit Office.
Another measure the government has taken is to set up Standing Sectoral Committees, including an Economic Services Committee “to ensure oversight of Government operations and accountability.”
Singh said that he has personally witnessed how these committees have discharged their functions, leading to enhanced accountability and governance.
He pointed out other measures, such as putting in place institutional structures “that lend themselves to stronger public financial management.”
He said that technology is also being used, such as with the Integrated Financial Management System, and this is evidence that “there is in government a strong recognition of the need for good financial management practices.”
But the Finance Minister said that accountability is also needed in private companies.
While he said that the seminar of internal auditors attracted 36 organisations, who work in both the private and public sectors, Singh bemoaned the absence of representatives from large corporate companies.
“I do believe that issues related to sound financial management, issues related to strong systems and the need for such systems, (and) issues related to accountability are not confined to the public sector, but are as applicable to the private sector as they are to the public sector,” Singh stated.
He said that internal audit function represents an extremely important element of the corporate governance architecture in any entity and leads to greater efficiency and competitiveness.
The two-day seminar for internal auditors was designed to address the issue of the organization and structure of audit reports.
John Seeram, the outgoing president of the IAA in Guyana, said auditors must follow the IIA Standards (Section 2410) on “Audit Report Writing” and be able to communicate their audit findings in clear and easily understood language for action to be taken on the issues uncovered.
By participating in the seminar, auditors in all sectors learn what goes into an effective audit observation and how to organize reports that meet professional standards, elicit management action, and communicate crucial messages to executives and board-level readers.
The IAA Guyana Chapter was established in April 2000, with Seeram serving as president since then.
For over a decade since its formation, this Chapter has held seminars, workshops, and provided information on the profession to senior staff in organizations in order to help them understand the nature and purpose of internal auditing, its underpinning as a key corporate governance pillar, and how it differs from external auditing.
The Guyana Chapter of the IAA also became an examination centre for the Certified Internal Audit examination – CIA.
Lindsay Bascom, a former internal auditor at the Guyana Elections Commission successfully completed the internationally recognized Certified Internal Auditor (CIA) examinations in May 2005. He became the first Guyanese to study and pass the entire examination in Guyana. Following him there were three others, namely Deodat Indar and Mr. & Mrs. Jagalall, who are now residing overseas.
Seeram encouraged those who are not already members of the IIA to apply for membership, given that the organisation faces a severe shortage of members.
“During my tenure of office, this Chapter has had a problem of survival due to decreasing membership,” Seeram stated.
“We cannot achieve our objectives and goals if we do not have adequate membership of at least 15 members.”
The membership of the IAA Guyana Chapter stands at 24.
The Institute of Internal Auditors is the primary international association for the profession. It is the voice of internal auditing with more than 170,000 members in 165 countries and territories.

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