department completes reorganisation.

Auditor Mr. Larry Dennis made this promise this week, following National Liberal Party claims that Government was breaching the Constitution by not releasing annual Auditor's reports on the Island's finances as required.

NLP chairman Mr. Geoff Parker pointed out at a recent party forum that Government's Auditor had not commented on the Island's financial position in the past five years.

"The people of Bermuda should know what is being done with taxpayers' money,'' he said, adding that an annual Budget "which is simply a statement of cash flow' and economic review was not good enough.

Mr. Parker said he was considering doing something about the situation this week.

But Mr. Dennis said while he thanked the NLP for being concerned about "the Auditor's position'', plans were underway to improve the office's efficiency.

"The Auditor's office has been under reorganisation,'' he said. "We expect to have the minimum number of 17 (staff members) -- as recommended, in place by September.

"Once things get in place, all things handled by the Audit Office, including Government financial statements and the annual Auditor's Report will be produced on a timely basis.'' Mr. Dennis also said his 1989-90 report should be out "very soon'' and will include his comments on Bermuda's financial position.

But Mr. Dennis said he did not want to disclose "too much'' and preempt the release of the report in the House of Assembly.

Speaking at last week's NLP forum, party leader Mr. Gilbert Darrell said this was not the first time the Auditor's report was five years late.

And he recalled that a committee formed during Governor Viscount Dunrossil's term recommended that the Auditor should be independent of the Finance Ministry and made an officer of the House of Assembly.

"The report was produced and given to the select committee of the House which consisted of three UBP members, one PLP, and one NLP,'' he said.

"The committee met 27 times and had a consultant from Alberta come in every month.

"The report recommended that we follow British procedure -- that the Auditor will be officer of the House and no longer responsible to the Finance Ministry.

"But when finally debated, the UBP rejected it and came with their own suggestion which set up an Audit Committee made up of private individuals with the Finance Minister as an ex-officio member.

"This is not satisfactory. Although we take no issue with the credibility of the individuals, appointed members could be supporters of the Government.'' Taking issue with this and several other claims made by the NLP, Mr. Dennis said according to the Constitution his post falls under the responsibility of the Governor.

Therefore, he said, in order to make the Auditor an officer of the House, legislation would have to drafted to change the relevant section of the Constitution.

Mr. Dennis also said the Audit Committee established through the Audit Act is similar to audit committees formed by board of directors of private companies.

He added that Government could not be breaching the Constitution because although it calls for an annual Audit Report, it mentions no deadline.

And he noted that while the 1990 Audit Act puts an eight-month deadline on a financial year, this can be adjusted by a Government standing committee.