The National University of Samoa (N.U.S) has failed to uphold good accounting keeping practices, the Controller and Chief Auditor has reported.
In the Controller and Chief Auditor’s Report to the Legislative Assembly for financial year ending 2011, Fuimaono C G Afele reports that in spite of this, the Institution was able to report improved financial results, which were put down to non-recurring costs.
“The University’s financial performance improved tremendously achieving an excess of income over expenditure of $1,435,559 compared to an excess of expenditure over income of $2,624,435 in the prior year,” the Auditor’s report reads.
“The improved results were due to non-recurring costs of $2,431,002 which occurred in the prior year and none for the current financial year. In addition, total income increased by 6.5 per cent while total expenses decreased by 3.8 per cent.”
However, notwithstanding this result, Fuimaono did note several issues with the institution’s account keeping practices.
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“The University’s financial position showed that the University could not meet its short term obligations using its short term assets,” the Auditor reports.
“NUS Consult Ltd is a wholly owned subsidiary of the University, whose financial activities and results have not been consolidated with the results of the University’s financial activities.
Cash collected at the Bookshop were not handed over to the Finance division on a daily basis and therefore such receipts were not banked daily in accordance with generally accepted accounting practice.
“There was no policy to regulate and control the use of the University’s credit cards.” The report is republished in full below:
National University of Samoa Financial year: 30 June 2010 Audit opinion: Unqualified Auditor: Betham & Co Summary of audit findings: 1. The University’s financial performance improved tremendously achieving an excess of income over expenditure of $1,435,559 compared to an excess of expenditure over income of $2,624,435 in the prior year. The improved results were due to non-recurring costs of $2,431,002 which occurred in the prior year and none for the current financial year. In addition, total income increased by 6.5% while total expenses decreased by 3.8%.
2. The University’s financial position showed that the University could not meet its short term obligations using its short term assets.
3. NUS Consult Ltd is a wholly owned subsidiary of the University, whose financial activities and results have not been consolidated with the results of the University’s financial activities.
4. Cash collected at the Bookshop were not handed over to the Finance division on a daily basis and therefore such receipts were not banked daily in accordance with generally accepted accounting practice.
5. There was no policy to regulate and control the use of the University’s credit cards.
6. The University was invited to send comments and clarifications including an update on remedial and corrective actions taken before the report went to printing. When the report was finalized for printing, no response had been received.
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