Legislators must use results of previous year’s audit

May 10, 2018 News

Chartered Accountant and former Auditor General, Anand Goolsarran.

-PAC reports to inform budget – Goolsarran
The reports of the Auditor General and the Public Accounts Committee (PAC) have often showcased that there is an endemic problem with financial mismanagement in Guyana.
But if legislators are serious about changing this state of affairs, it must begin to use the findings of these reports as important reference points when considering how and where to spend the nation’s funds in the future.
This is according to Chartered Accountant and former Auditor General, Anand Goolsarran. He made this salient point in his most recent writings.
The Chartered Accountant has stressed time and again, about the need for the government to discharge its accountability and stewardship responsibilities in a timely manner. In this regard, he referenced the Budget Transparency Action Plan (BTAP) which was developed and introduced to the citizenry in 2015.
The objective of the BTAP is to improve the budget process and more generally, enhancing transparency and accountability in the financial system. Goolsarran stated that the BTAP contains 14 items, of which the advancing of the accountability cycle is perhaps the single most important item.
The former Auditor General noted that the cycle involves budget preparation and approval by the Legislature; budget execution; independent ex post evaluation; Public Accounts Committee (PAC) review of the results and reporting to the Legislature; and the Government’s response via the Treasury Memorandum. The Government is required to take measures to progressively advance the accountability timeframe so that the cycle can be completed within 12 months of the close of the fiscal year.
Goolsarran said that the purpose of this action is two-fold.
The Chartered Accountant said, “First, the Government needs to discharge its accountability and stewardship responsibilities in a timely manner. While acknowledging the efforts of the PAC to bring its work up-to-date, the situation is far from satisfactory, considering that it takes on average four years for the cycle to be completed. Second, legislators need to use the results of the previous year’s audit and PAC examination and reporting as important reference points for the consideration of the national budget for the next fiscal year.”
Goolsarran added, “As it stands, they approve of the budget without any knowledge of how moneys allocated to meet the expenditure on public services in the previous year, were expended, especially as regards economy and efficiency, and the extent to which the desired outputs, outcomes and impacts have been achieved.”
The other items of the BTAP include: consultations with key stakeholders during the preparation of the budget; an enhanced programme budgeting framework; procurement planning and oversight; improved and timelier mid-year reporting; effective follow-up of external oversight of the budget execution; and strengthening of internal controls.

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