Taskforce should be set up to take action on AG findings – Former Auditor General

Dec 20, 2023 News

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Kaieteur News – Each year, the Auditor General (AG) in his Annual Report on the public expenditure highlights overpayments and misconduct in some cases by public officers. These often cost the state millions, however there is hardly any corrective action taken to remedy these cases.

Former AG, Anand Goolsarran in his weekly column ‘Accountability Watch’ published by Stabroek News on Monday said, “The Authorities should immediately commence the process of addressing the findings and recommendations of the Auditor General as contained in his latest report, and take appropriate action to bring about the much needed improvements.”

He added, “It may be appropriate for the Ministry of Finance to set up a task force to undertake this important assignment.”

Goolsarran also made a case for the accountability timeframe to be improved, citing that the current timeline have been in place since colonial days.

The first stage in the accountability cycle begins when the Ministry of Finance issues its budget circular around the middle of the year to the heads of budget agencies.

The former AG said this is to provide them necessary guidance in relation to their inputs to the budget process and to begin the process of crafting the national budget. He noted that such guidance should normally be provided having regard to a Medium-Term Budget Framework (MTBF) and a Medium-Term Fiscal Framework (MTFF), however, these documents are yet to be developed.

Goolsarran said that International Financial Institutions have been consistent in their recommendations for such frameworks to be in place, yet the national budget is prepared in isolation of a strategic framework.

Following the necessary inputs from the heads of budget agencies, the Ministry of Finance proceeds to develop the national budget around the beginning of the third quarter of the year after detailed discussions with key stakeholders, including the political opposition, the private sector, civil society and trade unions. Goolsarran was keen to note that there have been criticisms of the extent of such consultations over the years.

The third stage is the presentation of the Estimates of Revenue and Expenditure to the Assembly within 90 days of the beginning of the fiscal year. According to the former AG, “The previous Administration had agreed that the national budget must be in place before the beginning of the fiscal year. As a result, the Estimates for the years 2017, 2018 and 2019 were presented to and approved by the Assembly before the beginning of the fiscal year. However, when the new Administration took over in 2020, this decision was reversed.”

After the Estimates are approved, the execution of the National Budget effectively begins. A Mid-year report is then presented to the Assembly within 60 days of the end of the half year. Goolsarran pointed out that previously, there was an End-of-Year report on the performance of the economy and on the budget execution but this is now incorporated in the Minister of Finance’s budget speech.

He explained that within four months of the close of the fiscal year, the Accountant General and heads of budget agencies submit to the Auditor General draft financial statements constituting the public accounts, and appropriation and revenue accounts, respectively. The Auditor General has up to 30 September to audit these accounts and submit his report to the speaker of the Assembly who in turn lays it in the Assembly.

Once the report is laid in the Assembly, it is referred to the Public Accounts Committee (PAC) for detailed scrutiny of the audited accounts after which the PAC issues its own report to the Assembly. Goolsarran noted that there is unfortunately, no deadline for doing so.

Finally, the Ministry of Finance issues a Treasury Memorandum, setting out what action it has taken or proposes to take in relation to the findings and recommendations of the PAC. This brings to an end the public accountability cycle.

Revision of accountability timeframe

Arguing that the above timeline have been in place since colonial times when public accounts were maintained manually, the former AG said authorities should consider: (a) bringing forward the date for the submission of draft financial statements to the Auditor General to 28 February; (b) the Auditor General to issue his report not later than 30 June; (c) the PAC to commence its examination of the audited public accounts not later than 15 July and to issue its report not later than 31 August; and finally for the Ministry of Finance to issue its Treasury Memorandum not later than 30 September.

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• Accountability Watch, Anand Goolsarran, Former Auditor General, millions, Ministry of Finance

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