Institute fails to maintain fixed register of assets


THE Goroka-based Institute of Medical Research failed to maintain a fixed register of assets worth more than K37 million, according to the Report of the Auditor-General for 2016.
It also failed to acquit for travel and subsistence expenses of more than K1.7 million by staff on duty travel both in country and overseas.
It also had more than 30 bank accounts, and did not comply with the Public Finances (Management) Act 1995 by submitting its financial statements on time.
Auditor-General Philip Nauga said his review of the fixed assets register and capital expenditure for 2014 revealed that it was not properly maintained and updated on a timely basis.
“The institute’s accounts are prepared using the cash-basis of accounting,” he said.
“The fixed assets register not only forms part of the financial statements, but is the only record that keeps track of the institute’s fixed assets.
“Consequently, I could not perform all my planned audit procedures to satisfy myself on the amount stated in the accounts.
“As such, I was unable to conclude on the accuracy, valuation and existence of the fixed assets balance of K37, 039,979 disclosed in the financial statements.”
Nauga also found that:

  • Travel and subsistence expenses totaling K1,775,428 during the year by staff on domestic and overseas duty travel were not acquitted. There was also no travel advances register;
  •  The institute continued to maintain more than 30 bank accounts and should consider increasing staff to manage these; and
  •  The institute had failed to submit its financial statements for 2014 on a timely basis.