Financial controllers are to be placed in each Ministry as Government seeks to cut down on absenteeism and improve efficiency.

The news comes after the House of Assembly's Public Accounts Committee (PAC), in its recent report on 2005-06, raised concerns about excessive delays completing accounts by Government bodies and more than $20 million in unapproved spending.

The report said cross-Ministry controllers were taking extended medical leave and accountants were leaving both Government and the Auditor General's office resulting in an unacceptable backlog in audits.

The PAC report said the situation was further exacerbated by out of control accounts.

It said: "The Parish Council audits have been so problematic that the task has even been rejected by private sector audit firms."

The PAC also complained about inadequate computer systems which stopped effective recording and updating of information.

Responding in the House on Friday Finance Minister Paula Cox said: "Controller posts will be established in each Ministry which should result in all controllers having an equal and manageable workload.

"Previously some controllers were responsible for more than one Ministry."

She said the controllers would report to the Accountant General to ensure all accounting are met on a timely basis.

But the recruitment and retention of qualified Bermudian accountants continued to be a struggle, said Ms Cox.

"To address this problem the Accountant General has had to advertise overseas."

And she said a new Government IT system will address 90 percent of the gaps in the current system.

"The system will be implemented in three phases over the next three years. Phase one has already begun and it is anticipated that this phase will be completed by September 2010."

And IT upgrades are promised next month in the Health Insurance Section, which administers the Health Insurance Plan and the Mutual Reinsurance Fund. It will implement phase one of its automated system.

The PAC report also revealed that Police launched an investigation amid allegations of fraud in National Drug Commission (NDC) expenditures and that staff may have colluded for improper transactions in the absence of genuine oversight.

It mentioned missing invoices and destroyed documents.

In her response Ms Cox made some general points about the PAC report covering a period long passed.

She said the NDC merged into the Ministry of Health and Family Services and that from February, 2005 to September 2005 the Accountant General seconded a trainee management accountant to the NDC to assist in the completion of the financial statements for the years 2002 to 2005.

"During this process some lapses in internal controls were identified.

"Consequently the Accountant General's Department conducted an investigation and prepared a report with recommendations to prevent recurrences, and appropriate disciplinary action was taken.

"The Ministry of Finance has assumed responsibility to having all NDC accounts brought up to date. A consultant accountant was engaged by the Ministry, and I am pleased to report that the NDC's 2003, 2004, 2005 and 2006 accounts were prepared together with supporting working papers, using the information available.

"However, I note that not all the required supporting documentation was available when the accounts were referred to the Office of the Auditor General."

Amid lingering criticism of late reporting from Parish Councils Ms Cox said the Culture and Social Rehabilitation Ministries Financial Controller is compiling a report on the status of accounting and audits for each Parish Council.

The target is to bring both up to date on or before June 1, this year. Most of the financial accounts that are available for review at this time relate to fiscal years 2006 through 2008.

The Ministry is issuing a minute book to all Parish Councils in 2009 and is also planning to issue a common book of accounting to each Parish Council, even though some Parish Councils may be capable of using computerised accounting processes.

Funding to Parish Councils that do not operate a rest home will be limited until all Parish Councils are in full compliance in terms of financial reporting.

Workshops are being run in financial reporting and other record-keeping by the Parish Councils Coordinator this year.