People in the private sector would face being fired if they acted like some within Government, says Auditor General Larry Dennis.

And Mr. Dennis recommends written warnings, penalties or even dismissals of leading figures who fail in their duties as he reflects on a "dismal state of affairs" and poor financial management.

It was one of a raft of criticisms from the Auditor General in his report on the financial year 2006-07, tabled yesterday in the House of Assembly.

Mr. Dennis once again reports on late financial reporting, arrears in pension contributions and taxes, unaddressed audit recommendations, his struggle for independence and continuing problems with the Berkeley School performance bond.

He says during the past two years half of Government's entities have been submitted with insufficient evidence for some of the numbers in their annual financial statements to be audited — they receive what is known as a qualification from the auditor.

Some of these, 19 in the past four years, have such a severe and pervasive lack of evidence and control it has been impossible for auditors to express any opinion — a denied audit.

A statement released from Mr. Dennis' office states: "Mr. Dennis suggests that this dismal state of affairs reflects the poor quality of financial management in these entities.

"He notes that in the private sector, qualifications and especially denials would likely result in the dismissal of CFOs and CEOs of the entities.

"The Auditor General recommends that the Ministry of Finance considers disciplinary action, including written warnings, penalties, and in significant or continuing situations, dismissals of CEOs, CFOs, Controllers and Accounting Officers whose entities receive qualifications or denials of opinion due to the unavailability of evidential documentation supporting disimbursement of public funds."

Other subjects tackled by Mr. Dennis include:

• auditor independence: following disruptions to his office in May 2006 when Works and Engineering staff moved his furniture and records to new and unprepared premises while he was off the Island;

• performance bond for Berkeley Institute capital project: he has still been unable to obtain documents from Works relating to the construction project which would show the bonding company had shown it had sufficient assets to meet its potential $6.8 million obligation, and that the $700,000 fee paid to the contractor to cover the purchase of the bond was, in turn, paid to the bonding company;

• late financial reporting: of Government's 38 quangos and public funds, only ten had issued audited financial statements within ten months of their fiscal ends;

• pension contributions and taxes in arrears: Government and its public pension fund is owed almost $50 million of taxes, and pension contributions are more than three months in arrears;

• unaddressed audit recommendations: 62 recommendations remain unaddressed, some of which go back as far as 1992.