“The (Agricultural Store) Corporation’s fi nancial performance has improved tremendously achieving a net profi t of $468,968 compared to a net loss of $807,936 in the prior year. The improved results were due to a signifi cant increase in total revenue despite a slight increase in total expenses” - Fuimaono A.G. Afele.
Both the Accident Compensation Corporation (A.C.C.) and the Agricultural Store Corporation (A.S.C) demonstrated monetary stability for the financial year ending June 30 2010, the Controller and Chief Auditor reports.
Despite this stability, however, Fuimaono A.G. Afele did note a number of issues for the A.C.C. in his 2011 report to the Legislative Assembly.
“An amount of $406,958 relating to V.A.G.S.T. Receivable was included in the Corporation’s financial statements that should have been assessed by the Ministry for Revenue to confirm its recoverability,” he reports.
“Computer files were not backed up, properly labelled and stored at off-site premises preferably in a fireproof vault to ensure safe storage of computer information."
“Register of accountable forms was not appropriately formatted to record all details.”
Looking at the A.C.C.’s overall financial position, Fuimaono reports that the total revenue for the 2012 financial year reduced by one per cent due to a reduction in interest revenue as well as other income.
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“The Corporation managed to control its total expenditure with a reduction by one per cent despite incurring expenses for tsunami compensation,” the report reads.
“The Corporation achieved a return on total assets of 10.41 per cent."
“The Corporation’s financial position was stable.”
Looking now to the A.S.C., Fuimaono reports that its financial performance has improved tremendously achieving a net profit of $468,968 compared to a net loss of $807,936 in the prior year.
“The improved results were due to a significant increase in total revenue despite a slight increase in total expenses,” he says.
Both current assets and current liabilities have increased with the increase in current liabilities outweighing the increase in current assets.
“Despite this decline in working capital, the Corporation was still in a healthy liquidity position.”
Both reports are republished in full below:
Accident Compensation Corporation
Financial year: 30 June 2010 Audit opinion: Unqualified Auditor: Audit Office
Summary of audit findings:
1. An amount of $406,958 relating to VAGST Receivable was included in the Corporation’s financial statements that should have been assessed by the Ministry for Revenue to confirm its recoverability.
2. Computer files were not backed up, properly labeled and stored at off-site premises preferably in a fireproof vault to ensure safe storage of computer information.
3. Register of accountable forms was not appropriately formatted to record all details.
4. Overall results of the Corporation’s operation and financial position were as follows:
• Total revenue reduced by 1% due to a reduction in interest revenue as well as other income;
• The Corporation managed to control its total expenditure with a reduction by 1% despite incurring expenses for tsunami compensation;
• The Corporation achieved a return on total assets of 10.41%; • The Corporation’s financial position was stable.
5. The Corporation responded as follows:
• The VAGST receivable amount is deemed correct as the MFR has agreed to offset it against future VAGST payable by ACC. ACC therefore did not pay any VAGST to the Ministry in 2011 resulting in a significant reduction in VAGST Receivables at the end of the financial year 2011.
• ACC has since put in place measures to ensure regular backup and security of electronic files. Computer files are now being backed up twice a week, one backup copy is kept in the office while the other one is kept off-site.
• ACC has since adopted the format for the register as recommended and the audit of the financial statements for the year 2011 should confirm compliance.
Agriculture Store Corporation Financial year: 30 June 2010 Audit opinion: Unqualified Auditor: Lesa ma Penn Summary of audit findings:
1. The Corporation’s financial performance has improved tremendously achieving a net profit of $468,968 compared to a net loss of $807,936 in the prior year. The improved results were due to a significant increase in total revenue despite a slight increase in total expenses.
2. Both current assets and current liabilities have increased with the increase in current liabilities outweighing the increase in current assets. Despite this decline in working capital, the Corporation was still in a healthy liquidity position.
3. Board approval was required for writing off debtors’ accounts that were considered irrecoverable
4. Leave cards were not regularly updated
5. The Corporation responded that
actions have already been taken on findings 3 and 4.
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