Water PNG under fire

National

WATER PNG has not been able to provide accurate information and produce accurate financial
reports.
Its accounting system and internal control environment are both deficient.
“The result of this is slow, ineffective and incomplete accounting as well as unreliable information for management,” the auditor-general said in his 2015 report recently.
“This increases the risk of sub-optimal decision-making, as well as incomplete financial records and delayed financial statements.”
The auditor-general said Water PNG had not been able to keep proper records of its financial transactions since 2013 and its last financial report was submitted in the same year.
He said the entity’s reports were inaccurate and the management was unable to substantiate many of the balances included in the general ledger.
“This effectively meant neither management nor any third party could place reliance on the accounting system to give a complete and accurate information,” he said.
“Because of the failures in record keeping, internal control, segregation of duties and management oversight, I am of the view that the Water PNG did not keep proper accounting records of its 2013 financial transactions.”
Water PNG also lacked a proper documentation system which prevented the auditor-general from testing the internal control system.
“(The) number of essential documentation either could not be retrieved or simply did not exist,” he said.
“This resulted in delays and even failures to provide the requested audited information which impacted me to complete the audit as planned.
“The lack of proper documentation and the non-adherence to standard procedures and processes
is an example of an ineffective internal control system.
“The absence of documentary evidence of any control procedures restricted me from carrying out tests for compliance of control procedures and processes, but in itself is evidence that the procedures were ineffective.”

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