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Proposal would give internal audit unit more 'teeth, independence'

Premier Dr. Ewart Brown

New powers are proposed for a team of roving accountants to root out inefficiency within Government.

Premier Ewart Brown said Cabinet was reviewing a paper urging legislation to give the internal audit unit, now under Cabinet Office, the "teeth, resources and independence it needs to carry out its responsibilities".

The Premier added the proposals were for the internal auditors to be a separate department under Cabinet, reporting to the Cabinet Secretary administratively.

But operationally they would report to an internal audit committee which would include one external accountant.

The unit is currently headed by certified fraud examiner Heather Jacobs-Matthews who has been deputy Auditor General, Accountant General and Tax Commissioner.

In the fiscal year ending last March the unit did four departmental audits, 14 internal control reviews, 13 surprise cash counts and four investigations, said the Premier.

"We expect to hear more from internal audit over the months and years as it re-establishes and redefines its role in Government under the proposed internal audit legislation. You can rest assured that Cabinet will give its full support."

The team of five transferred from the Finance Ministry to the Cabinet Office reflecting the importance of its role and in accordance with international best practice.

And Premier Brown said the transfer had been endorsed by Bermuda's Auditor General as well as the past chairman of the Institute of Internal Auditors.

That global body said internal auditors help improve efficiency, transparency and accountability and sound management throughout Government.

It provides a useful tool to assist top managers to improve operations, said the Premier who added: "Most importantly it provides the most effective means of ensuring that taxpayers' money is put to its intended and proper use, thereby safeguarding the public purse."

Dr. Brown said the internal audit unit would also become a training ground for Bermudian university graduates.

The statement was made during yesterday's Budget debate on the Cabinet Office which saw the Opposition complain about consistent under budgeting and overspending.

United Bermuda Party leader Kim Swan welcomed plans to give more power to the internal auditors but complained that the Cabinet Office will cost the taxpayer $7.8 million in the current financial year up from the $4.8 million spent the year before.

In the same period $737,000 was spent on travel up massively on the $262,000 set aside.

And Mr. Swan wondered whether Government would be back for more travel money after estimating a need for $359,000 this year.

He said Government needed to ditch unnecessary glitz and glamour just as it was expecting the public to tighten their belts.

Spending on the Central Policy Unit had also shot up $200,000 said Mr. Swan, while he chided Government for not keeping its promise about setting up mini-census rather than waiting ten years for a major one.

Opposition Education spokesman Grant Gibbons said that despite the Finance Minister calling for 10.5 percent cuts across the board, the Cabinet Office, in the heart of Government, had increased its spending by $1.7 million during the current financial year.

Taking away the shifting of internal audit from Finance the increase was still high at $1.2 million, said Dr. Gibbons.

And this year the plan was to increase spending by five percent.

Dr. Gibbons was critical of the low spending by the Sustainable Development unit which this year cost just $181,000 despite $479,000 being set aside.

However the Premier said whatever Government did the Opposition would criticise and Government would make changes as necessary to deal with changing events.

Dr. Gibbons said internal audit needed more than a handful of staff to keep an eye on Bermuda's enormous Government which had grown by a thousand people in ten years.

And he lamented the fact that management services was being absorbed into human resources as he said it could be an effective unit in cutting out waste.

"We have emasculated a department that had a profound impact on how Government functions."

However the Premier said the move to human resources would not stop key functions being carried out.

Opposition Leader Kim Swan