By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Government’s top financial watchdog has warned that “insufficient” staffing and resources are undermining its ability to protect Bahamians and hold successive administrations to account.

Terrance Bastian, the Auditor General, writing in his office’s report on the Government’s finances for the 2020-2021 fiscal year, revealed his team was challenged to conduct “comprehensive and timely audits” on more than 55 ministries, public agencies and state-owned enterprises (SOEs) because it was 42 percent under-staffed.

The Auditor General’s Office finished that year with just 47 staff, as opposed to the authorised 81, leaving some 34 vacancies including the two senior deputy auditor-general posts that remained unfilled. Of the three authorised deputy auditor generals, just one post was filled, while there were only two of the required three assistant auditor generals on staff.

As a result, Ms Bastian urged the Government to “allocate a dedicated Budget to address the staffing gap” within his office, arguing that such an investment was “not just a responsible fiscal choice but a moral imperative to protect the interests of citizens and promote the highest standards of governance” within The Bahamas.

“The fiscal year began with staff complement of 46 and ended with 47,” Mr Bastian wrote in the 2020- 2021 report. “Although efforts were made to increase the staffing complement during the fiscal year, due to attrition we still fell short of meeting the desired staffing levels. This situation presents ongoing concerns and challenges for the office’s operations and effectiveness.

“The staff shortage, even with some increase, can still lead to issues such as increased workloads on existing employees and potential delays in conducting audits and releasing audit reports. It may be challenging for the office to handle its full mandate effectively with limited resources and certain areas of concern or emerging audit issues may remain unaddressed due to resource constraints.”

Suggesting that the Auditor General’s Office may have to “outsource” audits where deemed appropriate, Mr Bastian spelled out the consequences the staffing shortage could have for his office’s ability to protect the Bahamian people’s interest in ensuring their tax dollars are spent wisely and efficiently, and they gain value for money.

“Our audit responsibility extends to more than 55 ministries, departments and agencies (MDAs), state- owned enterprises (SOEs) and various autonomous bodies,” he added. “These entities collectively represent a significant portion of our nation’s resources and financial activities.

“Effective auditing of these entities is vital not only for ensuring financial accountability but also for safeguarding the interests of our citizens. As we face an increasingly complex and dynamic economic environment it is imperative that our budget reflects the demands of the times.

“Regrettably, our current staffing levels are insufficient to carry out comprehensive and timely audits of all these bodies. This staffing deficit poses several challenges.” The first identified by Mr Bastian was “reduced oversight”, and he added: “The inability to conduct audits in a timely manner hinders our ability to provide real-time oversight, potentially exposing vulnerabilities to financial mismanagement and inefficiencies.”

Then there was the “risk of misallocation” of resources by his office, Mr Bastian said, “which can have serious consequences for our economy, public services and citizen welfare”. He identified the final danger as “limited accountability”.

“Our inability to thoroughly audit all MDAs, SOEs and autonomous bodies undermines public trust and confidence in our auditing processes, which are essential pillars of good governance,” the Auditor General warned.

“In light of these concerns, I continue to request of our government to allocate a dedicated Budget to address the staffing gap within the Office of the Auditor General. This budget should prioritise the recruitment and training of qualified auditors and support staff who can effectively carry out audits, investigations and reviews of the aforementioned entities.”

Adequately resourced, Mr Bastian said his office would be able to improve “the quality and efficiency of audits” plus enhance “the detection of financial irregularities and potential fraud”. Other benefits would be strengthened accountability and transparency, plus better safeguards for The Bahamas’ financial resources and “economic stability”.

“I believe that this investment in our auditing capacity is not just a responsible fiscal choice but a moral imperative to protect the interests of our citizens and promote the highest standards of governance within the Government of The Bahamas,” Mr Bastian said.

The Auditor General’s Office did not spent its full 2020-2021 Budget allocation, with expenditure for that year totalling $1.956m as opposed to the prior year’s $2.325m. The actual spend was also down from 2019-2020’s $2.341m. A similar amount was allocated for the 2022-2023 fiscal year.

Going forward, the Government approved a slight increase in the Auditor General’s Budget to $2.543m for the current 2023-2024 fiscal year. Further modest increases to $2.605m and $2.702m are forecast for 2024-2025 and 2025-2026, respectively.