By KEILE CAMPBELL

kcampbell@tribunemedia.net

UNAUTHORISED vehicle purchases and salary increases, misuse of petty cash, and a failure to pay National Insurance Board (NIB) contributions are some of the fiscal shortcomings highlighted in the Office of the Auditor General’s examination of last year’s Bahamas Jubilee Games.

The auditor found a lack of “an approved salary scale structure aligned with the public service salary scales”, noting salary determinations were “solely at the discretion of the chairman”.

The Bahamas Games was held in 2023 for the first time in 20 years as a show of unity ahead of the 50th anniversary of independence.

The audit highlighted a lack of transparency and “shortcomings evident in policy formulation and planning” relating to the preparation of the event.

There was a $1m discrepancy between the approved allocation for the Bahamas Games and the amount the Bahamas Games Secretariat received: $4,531,299 versus $5,559,313.

The auditor found no evidence the Ministry of Finance authorised the purchase of two cars: a $7,750 2014 Nissan Note and a $7,250 2011 Honda Stream Wagon. The Secretariat acquired the cars and submitted purchase requests to the permanent secretary of the Ministry of Youth, Sports, and Culture.

Two employees made monthly payments to eventually own the vehicles.

The audit identified instances when petty cash funds were inappropriately used to acquire two vehicles between February 2023 and July 2023, though it is unclear if those payments were for the Nissan Note and Honda Stream Wagon.

Five hundred dollars was paid from the petty cash for the vehicles in April and May. At least $1,000 was paid in April, contravening the petty cash management policy that no individual claim surpass $500.

The auditor criticised the accounting records of the Secretariat, noting insufficient maintenance and missing documentation.

Other criticisms include incorrect general ledger entries; financial records “lacking certain financial transactions” because the Secretariat did not receive necessary supporting documents; a lack of cash flow statements; inconsistently generated, reviewed, and validated monthly balance sheets; inconsistently generated, reviewed and confirmed monthly profit and loss statements and accounting tasks assigned to employees“randomly”.

The petty cash management document indicated that $5,000 is the maximum amount allowed for petty cash replenishments. However, there were two deposits of $8,000 and $5,000 in May, with the auditor noting that deposits should be made once monthly.

The audit also noted that “several reimbursements” were made from the petty cash account for travel expenses, contravening the approved cash management policy, which mandated that cash be used “solely for minor expenses” and that bank account transactions be avoided.

It said there was “non-adherence to financial regulations and procedures within the employee recruiting process” and “ineffective human resource function”.

Auditors found that three employees received unauthorised salary increases, and four employees received lump sum payments due to issues with the punctuality of wage payments.

Auditors also noted that the Secretariat failed to pay $4,108 to NIB for four retired employees from January 1st, 2022, to July 31st, 2023, despite evidence that the cheques were prepared. The files of those four retirees consequently lacked a certificate of good standing.