By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

DURING his audit of the National Sports Authority, Auditor General Terrance Bastian concluded the organisation’s accounting practices did not fully comply with regulations and weaknesses were apparent.

In reviewing the engagement of certain employees – some without the necessary qualifications - how they were paid and the “unusual” handling of petty cash, Mr Bastian said the NSA did not adhere to the Financial Administration and Audit Act 2010, Financial Regulations 1975 and the Sports Authority Act 2011.

Irregularities regarding their terms of work were revealed in the audit report, tabled in the House of Assembly Wednesday which covered the operations of the authority from July 2011 to December 2017.

“We noted that board minutes dated January 20, 2016 stated that employees in senior positions should acquire the relevant competency and qualifications for each post,” the report noted. “However, we observed several employees holding key positions without proof of qualifications on file.”

None of the employees were identified by name.

Regarding their salaries, Mr Bastian said a worker described in the report as “Employee B” received a total of $55,466.56 over three years despite documents on file indicating non-performance.

Auditors could also not find a commencement date of employment for the worker, but it was confirmed the first payments began on December 16, 2014 and ended December 6, 2017.

Another employee, who was not a permanent staff member and brought on to assist with product development, was found to have failed to complete the agreed deliverables.

“We noted that ‘Employee A’ was paid an amount of $34,706.96 that began on May 27, 2016 and ended April 5, 2017. A review of the NSA transactions report highlighted that payments was for salary; giving the impression that ‘Employee A’ was a member of staff.

“We further noted that board minutes for March 1, 2017 indicated concerns about the activities of ‘Employee A’; the board wanted to know if any deliverables were completed; and as no deliverables were completed, the contract was ended.”

The audit also looked at a third employee who was hired in the absence of the needed approval to pay the salary.

“We noted an agreement made on January 4, 2013 appointing ‘Employee C’ as a consultant with the Ministry of Youth, Sports and Culture for a period of three years. The salary indicated was $40,000 per annum, plus 15 percent gratuity based on the completion of satisfactory service.

“We further noted that the terms in the agreement were suspended at the end of February 2013 because of the failure of executive management to obtain the necessary approval to pay the employee.

“However, at the end of the employee’s departure from the organisation an amount of $123,366.29 had been received.”

It was further found that a contract was signed between “Employee E” on October 1, 2012 and ending June 30, 2015 for a monthly amount of $5,000.

However for the period January 1, 2012 through January 6, 2016 the total amount paid was $333,398.38.

Additionally, another worker’s consultancy contract could not be found for audit inspection. The audit said the transaction report showed that “Employee D” was paid $31,246.14 that began from December 2016 and ended August 2017. Payments to this employee were also described as salaries rather than consulting fees.

Mr Bastian also noted in his report that a senior government official with the Ministry of Youth, Sports and Culture served as a member of the board during the periods July 2015 to June 2016 and July 2016 to June 2017.

Payment for this totalled $12,282.78.

“The Sports Authority Act 2011 makes no mention of senior government officials serving as member of the board, however the act allows the director of sports to serve in an ex officio capacity,” he said.

Regarding his findings from a payroll investigation, Mr Bastian said it was found that there was no official procedural manual for purchasing and making payments. There were also no salary scales, no increment structure and no employee handbook governing workers and salaries.

The report furthered that there was a senior NSA executive who did not have a contract. This person also received a salary increase from $5,000 to $7,000.

As for the NSA’s petty cash, the auditor general said the fixed sum of $1,000, despite being “immaterial” was used in unusual ways such as paying for passport and visa renewal for an officer. It was also used to pay for gas for a private vehicle and numerous times paid for lunches, snacks and dry cleaning.

Receipts had neither been given to officers when they received the cash.