Government departments' tardiness in producing financial statements is getting worse and some are overspending by millions of dollars each year, according to Auditor General Larry Dennis.

His annual report reveals that for the last three years statements have not been produced and audited in time to meet the deadline set by a lender that finances the Government's borrowing requirement.

Mr. Dennis says production of the financial statements of the Consolidated Fund — i.e. Government ministries, departments, legislature and other offices — is "getting later each year".

"Accounting records are worse than they were four or five years ago," he said, adding that bank accounts and capital assets are two of the areas where the worst audit delays occurred.

He said his last three audits, for 2005, 2006 and 2007, were delayed because of inaccurate accounting records, slow responses to requests for information and an "inordinate number" of adjustments needed to correct the financial statements.

His report — tabled in the House of Assembly on Friday — also calls on Government departments to control spending.

Mr. Dennis said the Ministry of Public Safety and Housing spent almost $50 million of public funds without approval in 2007 — the amount needed to write off debts owed by the Bermuda Housing Corporation.

"This amount was not anticipated or approved in the 2007 Appropriation Act and no supplementary estimate was obtained," said Mr. Dennis.

He names 14 other departments which collectively overspent by almost $13 million last year, breaching statutory limits and acting unconstitutionally.

The worst offender was the Department of Social Insurance, which went almost $4 million over budget. It was closely followed by the Accountant General's department, which overspent by $3.2 million.

Other culprits included the departments of Tourism, Marine and Ports, Airport Operations and the Ministry of Health.

The Auditor General said departments could avoid overspending by getting money transferred from another department within the same ministry.

"The fact that some departments do not bother to do this supports my view that they are unworried about breaching legislated expenditure controls," concluded Mr. Dennis.

He also raised concerns about departments such as the Office of the Tax Commissioner, HM Customs, the Transport Control Department, the Registrar of Companies and the Post Office.

Mr. Dennis said they needed to improve control over the accounting and reporting of the revenues they collect.