The Samoa National Provident Fund (S.N.P.F.) has shined in the Controller and Chief Auditor’s 2011 report, posting a $9 million net increase to its cash flow.
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In his report to the Legislative Assembly for the financial year ending 2010, Fuimaono C.G. Afele says the Fund’s financial performance had improved over the year.
“With an excess income of $27,024,141 compared to $24,016,937 in the prior year,” the Chief Auditor reports.
“The Fund also experienced growth in total assets, four per cent, and total funds employed. “Cash flow position of the Fund had also improved with a net increase of $12 million compared to the net increase of $3 million in the prior year.”
Fuimaono did note, however, that there was an unreconciled variance of $352,072 between the subsidiary and general ledger for employer contribution and that the following internal control weaknesses were noted for sundry debtors.
“Variances in rental debtors’ balances between the Investment Report and the General Ledger,” the report reads.
“Sundry debtors with credit balances (and) sundry debtors accounts being inactive for over a year.
“Some pension files were not updated as required by member service policy, which required an update on an annual basis.”
The S.N.P.F. took the time to respond to the Auditor’s findings, as reads below:
“Issues one to three - agreed with audit findings,” the Fund responded.
“Issue four - management has recognised these weaknesses in the system and has doubled efforts in ensuring that any variances noted are identified and addressed in a timely manner. Consequently, this issue was not raised again by auditors in the 2011 audit.
“Issue five - a thorough review of the sundry debtors portfolio was done after the 2010 audit was completed.
“The exercise addressed all major weaknesses noted by auditors and improvements were implemented. Consequently this issue was not raised again by auditors in the 2011 audit.
“Issue six - members service department is ensuring that pension files are updated on a regular basis.
“Consequently this issue was not raised again by auditors in the 2011 audit.”
The Chief Auditor’s report on the S.N.P.F. and its subsidiaries – the Parliamentary Pension Scheme and the Senior Citizens’ Benefit Fund, and the Funds’ Building Maintenance Recoverable Account are republished verbatim:
Samoa National Provident Fund
Financial year: 30 June 2010
Audit opinion: Unqualified
Auditor: Lesa ma Penn
Summary of audit findings:
1. The Fund financial performance improved over the year with an excess income of $27,024,141 compared to $24,016,937 in the prior year.
2. The Fund also experienced growth in total assets (4%) and total funds employed
3. Cash flow position of the Fund had also improved with a net increase of $12 million compared to the net increase of $3 million in the prior year.
4. There was an unreconciled variance of $352,072 between the subsidiary and general ledger for employer contribution.
5. The following internal control weaknesses were noted for sundry debtors:
• Variances in rental debtors’ balances between the Investment Report and the General Ledger;
• Sundry debtors with credit balances;
• Sundry debtors accounts being inactive for over a year.
6. Some pension files were not updated as required by member service policy, which
required an update on an annual basis.
7. The Fund responded as follows:
• Issues 1 to 3 - Agreed with audit findings;
• Issue 4 - Management has recognized these weaknesses in the system and has doubled efforts in ensuring that any variances noted are identified and addressed in a timely manner. Consequently, this issue was not raised again by auditors in the 2011 audit;
• Issue 5 - A thorough review of the sundry debtors portfolio was done after the 2010 audit was completed. The exercise addressed all major weaknesses noted by auditors and improvements were implemented. Consequently this issue was not raised again by auditors in the 2011 audit;
• Issue 6 - Members service department is ensuring that pension files are updated on a regular basis. Consequently this issue was not raised again by auditors in the 2011 audit.
Samoa National Provident Fund- Building Maintenance Recoverable Account
Financial year: 30 June 2010 Audit opinion: Unqualified Auditor: Audit Office
Summary of audit findings:
1. Total expenditure of the Fund increased by 1.8% due mainly to the increase in electricity cost for common areas including elevators.
2. Total payments received from tenants increased by 3.7% while total amount owed by tenants reduced by 41% when compared to the prior year.
3. The Fund agreed with issues 1 and 2.
Samoa National Provident Fund – Parliamentary Pension Scheme
Financial year: 30 June 2010
Audit opinion: Unqualified
Auditor: Audit Office
Summary of audit findings:
1. The Scheme had not received the Supplementary Government contribution for the financial year ended 30 June 2010 at the time of the audit.
2. Contributions by some members were incorrectly calculated on the total of basic salary and other allowances instead of the basic salary amount only.
3. Some minutes of Board meetings were not signed to confirm such resolutions as true records of the Board’s discussions.
4. The Scheme responded as follows:
• Issue 1 - Despite our follow up efforts via telephone and letters the MOF advised that they had to incorporate the Government supplementary contributions in a budget. We are still waiting for that payment;
• Issue 2 - It has been corrected since the issue was raised with the Ministry of Finance;
• Issue 3 - Copies of these minutes were misplaced but comments are crucial for development.
Samoa National Provident Fund – Senior Citizens Benefit Scheme
Financial year: 30 June 2010
Audit opinion: Unqualified
Auditor: Lesa ma Penn
Summary of audit findings:
1. The Scheme received a Government grant of $15,400,000 for the year.
2. Overall financial performance resulted in an excess of expenditure over income of $198,129. The performance has improved compared to the prior year with an excess of expenditure over income of $284,923.
3. Cash position had deteriorated with a net decrease in cash during the year of $368,017 compared to a net decrease of $89,256 in the prior year.
4. Unclaimed pensions as at 30 June 2010 of $1,910,074 related as far back as November 2001.
5. The Scheme responded as follows:
• Issue 1 - Agree with audit findings;
• Issues 2 and 3 - Agree with audit findings;
• Issue 4 - Substantial unclaimed pension write back was performed in the subsequent financial year 30 June 2011.
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