Polynesian Airline’s profitability improved almost a hundred per cent for the financial year ending 2010. That’s according to Controller and Chief Auditor, Fuimaono Camillo Afele.
In his report to Parliament, Fuimaono said the financial performance of the company reflected an increase in net profit after tax from $2,459,282 in the prior year to $4,590,516 in the current year.
“The financial position of the company had improved with a 95% increase in net assets,” his report reads.
Despite the outstanding financial performance, the Controller and Chief Auditor also found some gaps in the airline’s performance.
For example, he found that some of the policies have not been amended to reflect the new systems and policies currently practiced.
“(There was) no reconciliations prepared for some liability accounts,” Fuimaono reports.
“Some fixed assets at Faleolo were not properly identified and labelled. There were accounts receivables with credit balances that management should review to determine appropriate action for clearance from the financial statements.
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“A fraud case involving an employee in Pago Pago had not been settled because the Office was trying to locate the suspected employee.”
Polynesian Air took the time to respond to the issues noted by Fuimaono.
“The re-write of the Finance Manual to reflect the new systems and processes since the downscaling of the company’s operation is still to be completed but it is not presenting any obstacles in the company’s operation,” it responded.
“These liability accounts belong to the old regime and are no longer in existence as of the current financial year ending 30 June 2012.
“These fixed assets at Faleolo are still not being labelled but most are well identified; “The remaining credit balances in accounts receivable are re-classified as creditors for disclosure in Annual Accounts.
“The suspected employee in Pago Pago has been located and he has been making repayments of his debt in accordance with an agreement we have established with him.”
The report is published verbatim below:
Polynesian Limited
Financial year: 30 June 2010 Audit opinion: Unqualified Auditor: Lesa ma Penn Summary of audit findings:
1. The financial performance of the company reflected an increase in net profit after tax from $2,459,282 in the prior year to $4,590,516 in the current year.
2. The financial position of the company had improved with a 95% increase in net assets.
3. Other matters identified during the audit included:
• The Finance Manual was published in January 1996 and some of the policies have not been amended to reflect the new systems and policies currently practiced;
• No reconciliations were prepared for some liability accounts;
• Some fixed assets at Faleolo were not properly identified and labeled;
• There were accounts receivables with credit balances that management should review to determine appropriate action for clearance from the financial statements;
• A fraud case involving an employee in Pago Pago had not been settled because the Office was trying to locate the suspected employee.
4. The Company responded as follows:
• The re-write of the Finance Manual to reflect the new systems and processes since the downscaling of the company’s operation is still to be completed but it is not presenting any obstacles in the company’s operation;
• These liability accounts belong to the old regime and are no longer in existence as of the current financial year ending 30 June 2012;
• These fixed assets at Faleolo are still not being labeled but most are well identified;
• The remaining credit balances in accounts receivable are re-classified as creditors for disclosure in Annual Accounts;
• The suspected employee in Pago Pago has been located and he has been making repayments of his debt in accordance with an agreement we have established with him.
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