MTM – $305M Accounting Discrepancies

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Auditor General's Findings

The Auditor General’s 2019 Annual report (which covers the 2018/19 Financial Year) revealed accounting discrepancies for the Ministry of Transport’s Appropriations-in-Aid.

  1. The actual Appropriations-in-aid (AIA) expenditure for Head 6500 (Ministry of Transport, Works and Housing) exceeded the approved budget by approximately $102.9 million.
  2. The AIA collected by the Toll Road Authority was understated by $961,631 for the 2015/2016 financial year.
  3. The Auditor General was also unable to verify AIA expenditure amounting to approximately $201.2 million for the 2015/2016 financial year relating to the Caribbean Maritime Institute due to the absence of sufficient supporting documents.

Despite requests, the Ministry did not provide the Auditor General with the relevant documents required for review.

Permanent Secretary (current): Alwin Hales

Permanent Secretary (at breach): Alwin Hales

Breach Category: Resource Management

Breach Type: Untimely Preparation of Appropriation Accounts

  • Breach Details
  • Articles & Reports
  • Accountable Officers
  • Calls To Action

Status: Progressing

Year Reported: 2019

Last Assessed: July 7, 2020

Year Resolved:

JAMP UPDATE

May 27, 2020 JAMP received documentation to substantiate that the Ministry of Finance indicated in a March 6, 2018 letter “that the expenditure submitted in the Appropriation Accounts by the Ministry of Transport and Mining will be included in the Final Supplementary Estimates for FY 2015/16.” However, MOF letter dated Oct 8, 2018 addressed to PS Hales indicated that “MOF cannot give retroactive approval for virement.”
See link to MOF letter below

July 7,2020 JAMP received correspondence from Ministry of Transport & Mining advising that “the Auditor General’s Dept is now in receipt of evidence of Appropriations-In-Aid expenditure incurred by the Caribbean Maritime Institute amounting to $201.2 Million.
See link to MTM letter below
Auditor Generals’ Response: Checks with the Auditor General’s Department reveals that “the specific matter remains outstanding. The Ministry submitted a summary of how the funds were allocated/classified by the CMI, however, the supporting documents in relation to the $201.2 million have not been presented.”
JAMP awaits further responses from the Ministry.

Permanent Secretary Dr. Alwin Hales JP 138h Maxfield Avenue, Kingston 10, Jamaica 876-754-1900
Hon Robert Montague MP 138h Maxfield Avenue, Kingston 10, Jamaica (876) 754-2584 View profile in MP Tracker

No Calls To Action are currently associated with this breach.

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