THE Auditor-General (AG) Mildred Chiri has decried continued failure to account for public funds by ministries and government departments, which resulted in more than $1,3 billion expenditure not being properly accounted for in 2020 to prove that the recorded transactions really occurred.
In her 2020 report on Appropriation Accounts, Finance and
Revenue Statements and Fund Accounts which were recently tabled in Parliament,
Chiri exposed gross irregularities whereby several payments amounting to
millions of dollars (in foreign currency and Zimdollar) were done on behalf of
ministries without supporting documents, which resulted in millions of dollars
not being accounted for.
Chiri said several government ministries failed to provide
enough documentation for purchased assets, making it difficult to verify the
accuracy of the expenditure they reported.
“Expenditure amounting to $1 309 482 199 was not supported
by documents such as acquittals, invoices, receipts, delivery and goods
received notes as proof that the recorded transactions really occurred. This is contrary to the provisions of section
59(15) of the Public Finance Management (Treasury Instructions) 2019, which
states that payments should be adequately supported,” the report read.
The AG also revealed that dual payments amounting to $9 384
085 were made to suppliers in 2020 resulting in unnecessary expenditure.
“The Finance ministry processed various payments to
suppliers of goods and services on behalf of ministries without adequate
supporting documentation. For example, direct payments amounting to US$22 024
406, R6 403 830 and Pula 8 359 434 were made by Treasury on behalf of the
Lands, Agriculture, Fisheries, Water and Rural Resettlement ministry and
Transport and Infrastructural Development ministry.
“In addition, direct payments amounting to $376 019 364
were made on behalf of the Home Affairs ministry without detailed documentary
evidence of how the transactions were recorded and reported in the accounting
records, which were also not availed for audit,” Chiri said.
“A number of ministries had expenditure variances between
the figures reported in the Appropriation Account and those in the Public
Financial Management System (PFMS), the computerised system used by the
government to process payments.
“The reported expenditure should be in agreement with what
is reflected in the system as all payments are supposed to be processed through
the PFMS. Where there is a variance, reconciliation should be made to establish
the cause.”
Chiri said in most instances, reconciliations were not
done, making it difficult to validate the accuracy of expenditure by ministries
and government departments, an issue which she also reported in 2019.
“The Public Service, Labour and Social Welfare ministry
made unauthorised transfer of funds amounting to $3 602 710 from the child
welfare and the older persons funds to support the ministry’s Appropriation
Account activities without authorisation from Treasury.
“This was contrary to section 116(6) and (9) of the Public
Finance Management Act (Treasury Instructions), 2019 which prohibits
utilisation of fund monies to meet Appropriation Account expenditure without
Treasury approval. As a result, the
objectives of the funds on the development and promotion of welfare and protection
of young persons were compromised.”
She said there were also dual payments made by ministries
to suppliers.
“Refunds for the double payments were still to be received
at the time of concluding my audit in 2021. Consequently, the value of money is
lost due to inflation and lapse of time. Dual payments are indicative of
weaknesses in internal controls.”
The AG also expressed concern over some ministries and
commissions that fail to submit their revenue returns, a situation that
resulted in limited scope for the audit. Newsday
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