AG 2013 report…Extra $35M spent on UG Project was used for grants, honorarium

AG 2013 report…Extra $35M spent on UG Project was used for grants, honorarium – Education Ministry

Jul 04, 2015 News

The multimillion-dollar University of Guyana Science and Technology Support Project came under review in the 2013 Auditor General’s Report with the AG calling out some discrepancies between the amounts of money reportedly spent and the actual expenditure.
But though the difference was in excess of $35M, the Education Ministry said that the figure reflected amounts paid for grants and honorarium.
According to the Report, the Appropriation Account for the project showed that amounts totaling $35.244M were expended during the period under review. However, the records of the project reflected that expenditure had actually been $70.596M, a difference of $35.352M.
The UG STS Project was reportedly funded by the Government of Guyana and the International Development Association (IDA) under a credit agreement. The project was subject to separate financial reporting and audit.
In response, the Ministry stated that the difference of $35.352M reflected amounts paid by the project to UG for the payments of grants and honorarium. These payments, the Ministry said, occurred in December 2013.
“Hence, this amount was not reflected in the Ministry of Finance records as foreign inflows,” the Ministry said. It went on, “as the final expenditure is incurred, it will be reflected as foreign inflows in the Ministry of Finance records in 2014.”
The AG Report also called out what it deemed a slow rate of delivery. According to the report, the Project, which has a total cost of US$11.450M, planned to spend US$1.440M in 2012. For 2013, a total of US$3.036M was to be expended. For the two years, the planned expenditure represented 39 per cent of the total project cost.
However, the AG said, financial statements for the initial period of September 20, 2012 to December 31, 2013 indicated that planned expenditure was only US$387,713. This represented a difference of US$4.088M.
“This gave indications that there was a revised budget, but such a budget was not provided for audit scrutiny,” the Report stated.
Additionally, the report noted that the planned expenditure of US$387,713 represented only nine per cent of the initially stated plan of US$4.476M and three per cent of the total project cost.
“Given the fact that the duration of the project was approximately 60 months and the financial statements covered a period of 15 months, the failure to achieve anticipated levels of expenditure activity could lead to completion delays and possibly cost overruns of the project,” the AG said.
The AG further said that even if the planned US$387,713 could be authenticated, the project had actually received amounts totaling US$948,078 from the IDA for the year 2013. Yet, the project expended only US$348,001 during 2013.
“It is unclear therefore why the project requested US$948,078 from the IDA, when in fact, the stated plan was to spend only US$387,713.”
However, the Education Ministry explained that the project had been slated to start in early 2012 and had a budget set for January to December 2013. But the Financing Agreement was signed in September 2012 while actual implementation commenced in December 2012. “This inevitably affected 2012 planned expenditure,” the Ministry said.
The Ministry further said that the Project Unit is in consultation with the Ministry of Finance and the World Bank to review and revise the planned expenditure.
“This will result in an updated and realistic budget. It should be noted however, that the completion date remains June 30, 2017 and we do not envision cost overruns,” it said.
Additionally, the Ministry said in defence that the World Bank’s system of requesting disbursement is based on a six-month cash forecast.
The project, it said, would request three months advance while withdrawal applications are in process or in transit. The Ministry added that this was being done to avoid cash flow problems.
The AG nonetheless maintained that the Ministry should take the necessary steps to ensure that the project achieves the anticipated level of activity.
The UG STS Project is aimed at strengthening the four Science and Technology faculties at UG. This is to be done through the provision of curriculum reform, ICT development, rehabilitation of infrastructure, and capacity building and studies.

Latest News

AG 2013 report…Extra $35M spent on UG Project was used for grants, honorarium – Education Ministry

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Thomas’ hat-trick inspires D.C Caesar Fox 10-5 victory, as Annai...

Stabroek Ballers, Sparta Boss, Bent Street...

West Indies Falter in Disheartening Series Loss...

Trophy Stall hands over trophies for Kennard...

Omari Glasgow, carrying the hopes and dreams of a...

GCF eyeing growth across other regions in 2025...

Features/Columnists

The stakes are high in Guyana’s democracy

Let the asylum seekers go: a first step for Venezuela to rebuild relations in the Americas

A leader undresses in public

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

AG 2013 report…Extra $35M spent on UG Project was used for grants, honorarium – Education Ministry

Share this:

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]