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E-Governance project run without necessary accounting systems – Audit
– Ramotar said it was “an oversight”
The recently released forensic audit into the $7.9B E-Governance project has found the venture was being
Christopher Ram of Ram and McRae
run without the necessary systems of internal control.
Auditors attached to Ram and McRae reported that the project which was being managed by former first son, Alexei Ramotar has no documented Standard Operating Procedures. Also, there were no formal accounting policies and procedures in place. This caused major problems in auditors being able to verify items purchased and other financial transactions.
Auditors listed at least four weaknesses in internal controls.
Major problems were found with regards to inventories. The listing given to auditors by Ramotar did not include cost, which is the most significant element of an inventory listing. Additionally, there was no documentation of movements in inventories. Auditors were therefore unable to determine the total quantity of inventories received and the items issued for maintenance or other purposes at the various sites. Professionals attached to Ram and McRae reported said that there was no method that could be used to match the inventories purchased and utilised with the limited records maintained.
Further, Auditors found that no periodic exercise was being conducted by the project staff to verify the physical existence of fixed assets. There was also an absence of records or listings of all fixed assets owned and controlled by the project.
Auditors also noted that there are no controls governing property, plant and equipment. This increases the risk of assets purchased for administrative or operational use being misappropriated without their loss being detected in a timely manner.
Auditors even found problems with banking procedures.
Former E-Governance Manager, Alexei Ramotar
Ram and McRae reported that Ramotar advised that he was never in possession of any bank statements and no bank reconciliations were performed. This was the case despite the fact that the bank account was used on a regular basis to pay contractors.
Auditors stated, “This appears to indicate that the control of funds was not considered a priority.
It is therefore recommended that the Project employ the use of appropriate accounting software, such as QuickBooks to maintain records in relation to expenses, inventories, assets and banking.”
Auditors also found that there was a lacking with regard to the recording of Project Expenditure.
Ram and McRae reported that “Microsoft Excel was used by E Gov to maintain the records of payments made to contractors and suppliers. Based on our review, it was established that there was no control over input of information into the accounting records since a number of transactions were not recorded in the Excel documents provided”.
Auditors consulted with Ramotar who advised that the omissions were “an oversight.”
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