The Government Auditor's report for the fiscal year ending March 1991 has again documented his lack of satisfaction with the handling of the public purse.

The just-released report to Parliament is the last to be prepared by Government Auditor Mr. Larry Dennis under the ageing 1968 Audit Act, retired March 31, 1991, and replaced by The Audit Act 1990.

But for the fifth year in a row, the auditor has complained that Government has failed to present consolidated financial statements, as recommended for all governments by the Canadian Institute of Chartered Accountants and the Institute of Chartered Accountants of Bermuda.

It is such statements which reflect the financial position, transactions and activities of all entities owned or controlled by the Government, and for which there is accountability to the House of Assembly.

Yet in his report to Parliament, Mr. Dennis has concluded, "The Government has made no advance towards issuing consolidated financial statements.'' For the fourth year in a row, the auditor has commented on what he called "serious deficiencies within the accounting and internal control systems of the Contributory Pension Fund (CPF).'' He stated, "I was unable to satisfy myself that all contribution receipts had been recorded, nor was I able to satisfy myself that the recorded transactions were proper.'' Mr. Dennis said he was therefore unable to express an opinion as to whether the financial statements were presented fairly in accordance with the stated accounting policies of the CPF.

Mr. Dennis further complained that it took nine months to April 1995 for the Accountant General's office to approve the fund's audited financial statements for the year through July 1990.

He wrote just this past April: "In light of four consecutive denials of opinion by the auditor on the financial statements of the Contributory Pension Fund, it would seem that the failure to be in a position to approve audited financial statements or to submit accounts for audit within a reasonable time is an unacceptable breakdown in accounting and management controls.

"In the opinion of the auditor, it is essential that the Ministry of Finance develops a solution to the ongoing administrative problems and implements it at the first possible opportunity.'' Mr. Dennis was told that corrective measures were being taken and controls put in place. At the time of writing, however, he could not confirm their existence.

But Parliamentarians are also reading in the auditor's document, an excerpt from the CPF's report that says,"The Bermuda Contributory Pension Scheme is quite sound. Indeed, it has the surplus and flexibility to take care of inflationary increases up to reasonable limits within the foreseeable future.'' The 1990 financial statements show the net assets available for benefits to be in excess of five times the total annual payments for benefits and expenses. A 1992 report estimated the net accrued pension benefit liability of the fund to be a billion dollars. Mr. Dennis said that the revelation of that figure was claimed to be alarmist, especially because as a pay-as-you-go scheme, no liability accumulates. But he pointed to other countries where serious debates were already underway to determine how they would finance their schemes (the Canada Pension Plan in Canada and Social Security in the US) in the future.

"In the opinion of the auditor,'' said Mr. Dennis last April, "it is time that discussion starts in Bermuda.''