“The Authority managed to earn a surplus of $1,963 from its first year of operation. “It received a grant from the Government of $2,579,654, which was its main source of income”
In its first year operating as a Public Body, the Samoa Fire and Emergency Services Authority (S.F.E.S.A.) turned a profit the Chief Auditor reports.
In his 2011 report to the Legislative Assembly, Fuimaono C.G. Afele, says not only did the Authority manage to make money at the end of the 2009 financial year, it made enough to meet its fiscal obligations.
“This is the first year of the Authority operating as a Public Beneficial Body under the Public Bodies (Performance and Accountability) Act 2001,” his report reads.
“The Authority managed to earn a surplus of $1,963 from its first year of operation. “It received a grant from the Government of $2,579,654, which was its main source of income.”
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“The main operating costs were personnel costs and administrative expenses.”
The Auditor reports that the Authority’s financial position as at year’s end, was stable which indicated the Authority’s ability to pay its immediate obligations with its current assets.
“The Authority did not have a subsidiary ledger for revenues, expenditures and accounts receivable,” Fuimaono reports.
However he did note a couple of issues such as the posting of receipts and payments to the general ledger.
“(It) was not checked and monitored to ensure that postings on the system were accurate and complete,” the report reads.
“Fixed assets register was not properly maintained and posting of fixed assets to the general ledger was incomplete.”
“The Authority should review its V.A.G.S.T. status with the Ministry for Revenue considering the Authority’s status as a Public Beneficial Body.”
S.F.E.S.A. responded to Fuimaono, addressing most of the issues he flagged.
The report reads in full below:
--------------------------------
Financial year: 30 June 2009
Audit opinion:
Unqualified
Auditor: Audit Office
Summary of audit findings:
This is the first year of the Authority operating as a Public Beneficial Body under the Public Bodies (Performance and Accountability) Act 2001. The following were some of the matters discovered during the audit.
1. The Authority managed to earn a surplus of $1,963 from its first year of operation. It received a grant from the Government of $2,579,654 which was its main source of income. The main operating costs were personnel costs and administrative expenses.
2. The Authority’s financial position as at year end was stable which indicated the Authority’s ability to pay its immediate obligations with its current assets.
3. The Authority did not have a subsidiary ledger for revenues, expenditures and accounts receivable.
4. Posting of receipts and payments to the general ledger was not checked and monitored to ensure that postings on the system were accurate and complete.
5. Fixed assets register was not properly maintained and posting of fixed assets to the general ledger was incomplete.
6. The Authority should review its VAGST status with the Ministry for Revenue considering the Authority’s status as a Public Beneficial Body.
7. There was no Capitalization Policy that determined items to be capitalized and to ensure consistency in accounting for such payments.
8. There was no Internal Audit Unit within the Authority. This unit would assist in strengthening the Authority’s internal controls and procedures for managing its operations at the different locations namely Faleata and Salelologa.
9. The Authority responded as follows:
• In relation to 1 and 2, we concur with the findings stated;
• Issue 3 - This issue has been addressed and will be put in place for reconciliations;
• Issue 4 - We have addressed this issue by putting in place a network and allow the system to have multiple users for monitoring actions to ensure accuracy of data input;
• Issue 5 - We have now addressed this issue by re-documenting the asset register for accuracy of the following years’ assets;
• Issue 6 - We have now addressed the findings with the Ministry for Revenue;
• Issue 7 - The issue has now been addressed in conjunction with the Fixed Assets Register;
• Issue 8 - This will be considered as an important aspect for the Authority to implement.
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