Customs has introduced a new checking system after an audit found nearly 20 percent of a sample of custom duties were calculated at the wrong rate.

Auditor General Larry Dennis, in his annual report released last week, said Customs duties accounted for $185 million in 2003 but 18 percent of a sample of entry documents were classified during the audit by the wrong tariff - with half of the misclassifications actually going through. Some were undercharged and some were overcharged.

He said previous audits had detected similar problems. Customs have now introduced a risk based checking system and believe a new customs automated processing system due in 2004-5 will solve the problem.

And the Bermuda Hospitals Board is finally clamping down on sloppy financial management which has dogged it for years said Mr. Dennis.

He said: “For many years I have commented on serious and pervasive accounting, financial control and financial management problems.

“The 2003 audit, however detected the beginnings of improvements - increased use of reconciliations and general ledger accounts are being cleaned up.

“I acknowledge that addressing fully the years of cumulative effect of so many years of neglect will take time and sustained effort.”

The hospitals board said in Mr. Dennis' report that it was working to on electronic solutions to stop overbilling of patients moving between wards in St. Brendan's.