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| 26/8/08 - Cabinet accepts Auditor General's Report on Municipal Councils |
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Cabinet has accepted the report of the Auditor General on municipal councils.
Cabinet based its decision on a submission by the Prime Minister and Acting Minister for Finance and National Planning, Commodore Voreqe Bainimarama.
The Prime Minister explained that there are 12 Municipal Councils established under section 8 of the Local Government Act 1985.
“In 2007, the Office of the Auditor General (OAG) completed the audit of 14 years accounts of 8 Municipal Councils.”
The Prime Minister said that the report revealed that the statements of Revenue and Expenditure of some Councils had been prepared using the cash basis of accounting and did not take into account revenues not received and expenditures not paid at balance date.
“Similarly, property, plant and equipment had not been incorporated in the Statements of Financial Position as at the end of the year, contrary to sections 57(1) of the Local Government Act.”
He said that there were some councils that used the General Fund Account for Parking Meter expenses without obtaining the approval of the Minister, contrary to section 48 of the Local Government Act, while there were some that owed fire rates to the National Fire Authority.
The Prime Minister said that there was also an inadequacy of internal control and general weaknesses in management and operation in the accounting treatment of certain transactions of some Councils.
The audit report will now be subject to the Public Accounts Committee’s deliberation.
Cabinet has also agreed that the Ministry of Local Government carry out in-depth investigations on Municipal Councils who are not complying with the requirement of the Local Government Act and accounting standards and institute appropriate disciplinary actions against those responsible.
-End-
(No.1435)
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