Audit Report Queries $3.6m Unrecorded Active Assets in Ministry of Works

By Lagi Keresoma

APIA, SAMOA – 04 APRIL 2022: The Ministry of Works, Infrastructure & Transport (MWIT) has yet to explain how Assets worth ST$3. 6 million are still active on the Finance One system and nothing was recorded by the Ministry’s Internal Audit from June 2021.

The findings are revealed in the Audit Office Report on the Ongoing Cooperation in National, Governance & National Auditing of 29 September 2021. A follow letter by the Controller and Chief Auditor Fuimaono Papalii Afele of 21 February, said his office had yet to receive a response from MWTI.

“The Audit noted that there are older Assets that do not exist anymore but are still active on the Asset Register Module, such can cause overstatement of Assets for the Ministry,” stated the Report.

The Report said that the challenge is that the Ministry may not able to identify old assets of the Ministry as we found some of these Assets are active in the system but are not found in the ministry locations.

The Report also noted the purchase of 47 new computers bought to replace old ones at a cost of $172, 825.

The computers were all bought on 30 June 2021 on six different Purchase Orders made to the Greenology Consult.

The Computers Purchases
Overall, the 47 computers and 6 Purchase Orders on the same day at a cost of $172, 825 with the following details.

• The supplier, Greenology Consult was paid $43,519.45 for the purchase of 10 new computers to replace the old ones on 30 June 2021.
• Payment of $11,040 was made to Greenology Consult for a Dell Latitude laptop with a 8TB SSD as replacement laptops for the ACEO Legal and ACEO PPD.
• Another $11,040 for the procurement of 2 Dell Latitude laptops for the ACEO of PUMA and ACEO Asset Management to replace old ones.
• An additional $17,204 was paid out for a full PC set for the CEO’s Secretary and sets for 10 civil aviation staff.
• Another $78,027.50 was paid for 7x Dell laptops with mouse and keyboard. 11x Dell Optiplex 5080 sets, 11x Dell Optiplex 5070 and 6x Dell P series monitors.
• The CEO and DGCA’s also received laptops at a cost of $11,994.50.

A Treasury officer told Talamua that the Government procedures regarding Purchase Orders is that the Chief Executive Officer has the authority to approve funds of up to $50,000 but when it is more than $50k, then it has to go through the Tenders Board for approval.

The Reports findings on other areas of importance
The Report noted the Ministry’s total spending by the Ministry at ST$12,484,128.59.

The bulk of the amount was the payment of Grant to SOE-LTA at $11,411,474.41.

The second highest was the salary paid out to the public servants added up to $857,856.53 and also noted that the majority of payments made were for utilities and insurance of the Ministry vehicles.

The Report also noted that Greenology Consult as one of the highest spending of $14,285 for annual subscriptions for Emsisoft Management Console.

Account Receivable
The Audit noted the existence of long overdue debtors which are more than a year old and some of these debtors were from 2018 which reflects the slow recovery procedures by the ministry.

Recommendation have already been place for the Ministry to follow in this particular area is for the Ministry to consider the approach to debtors.

The Audit also noted the “absence of a proper policy to clearly guide the handling of the Ministry debts and such policies supposed to document key controls.

“The Audit recommends that the Ministry should have a policy in place to monitor and manage the ministry debtors properly and effectively. Such police will ensure they comply and enable follow up where necessary.”

Delay in reporting irregularities
The Report stated the continuous delay of reporting of Irregularities to the Ministry of Finance (MOF) as required for investigation on the damage loss of Government assets.

“It’s a serious issue within the Ministry and action should be taken immediately,” stated the Report.