Auditor Raises Concerns Over Opening Book Balances, Imrest, and Savings Bank

Audit Report Highlights Discrepancies and Concerns

A recent audit report has identified several concerns over the opening book balances, imprest accounts, and savings bank activities of various government departments. The report highlights discrepancies in bank statements, inadequate evidence for prior period’s closing balances, and concerns over the accuracy of financial records.

Opening Book Balances

The auditor found that the opening book balances for 2018 were based on reconciled closing balances as at December 31, 2017, which included undrawn cheques from previous years. However, one major bank account continued to show discrepancies in its closing amounts, casting doubt over the accuracy of the bank statements.

• The auditor was unable to express an opinion on the accounting method used by the Accountant General due to the discrepancies.
• ISSAI 1510 section 6 outlines the audit procedures pertaining to opening balances, emphasizing the need for sufficient and appropriate evidence to ensure that prior period’s closing balances have been correctly brought forward or restated.

Imprest Accounts

The audit report highlighted the use of imprest accounts, which are issued from the Consolidated Fund for making small payments that cannot conveniently be made through the Treasury. As at December 31, 2018, there were 18 imprest holders with an aggregate amount of $2,089,487.

• The auditor commended the Accountant General for ensuring that all imprest accounts were retired by the end of the financial year, as stipulated in the Finance and Administration Act, 2006.
• However, the report noted that there may be a need for greater transparency and accountability in the use of imprest accounts.

St John’s Savings Bank

The audit report examined the activities of the St John’s Savings Bank of Antigua and Barbuda, which was established under the Savings Bank Act of 1846. The bank’s activities have remained largely unchanged over the past eight years, with approximately 91% of accounts remaining inactive.

• The auditor noted that interest is payable on deposits at a rate of 2.5% per annum, as outlined in Section 9 of the Savings Bank Act.
• However, the report highlighted concerns over the status of these accounts and whether they accurately reflect the financial position of the bank.

Conclusion

The audit report emphasized the need for greater transparency and accountability in government accounting practices, particularly with regards to opening book balances, imprest accounts, and savings banks. The report highlights the importance of ensuring that accurate and reliable financial records are maintained, and that adequate evidence is provided to support prior period’s closing balances.

• The auditor’s findings underscore the need for greater scrutiny and oversight in government accounting practices to ensure transparency and accountability.
• The report provides recommendations for improving accounting practices and reducing discrepancies in financial records.