A combined total of about 130 years of public bodies’ financial statements are in arrears, the Auditor-General’s office revealed yesterday.

It was said that 42 per cent of those were “under the auspices of” the Ministry of Finance and there was not yet a timeline for when the accounts might be available for audit.

The office said that the Government’s challenges in properly preparing accounts were exacerbated by the coronavirus pandemic.

Heather Thomas, the Auditor-General, insisted: “The responsibility of auditing public money – your money – is not transferable.”

Her comments came after Lieutenant-Colonel David Burch, the Minister of Public Works, told the House of Assembly last week “there should be a wider look at this whole process of audits for government entities”.

Colonel Burch claimed that “on the rare occasion when the Auditor-General agrees to use an outside agency, it’s with the caveat that they must then audit the audit”.

He added: “I will go this far and say this is symptomatic of several auditors-general of late that have held on to this responsibility as if they are the only people on the planet that can do it.”

Ms Thomas said today that her constitutional and legislative role was to make sure the Government spent residents’ money wisely and “to enhance public sector efficiency, transparency and accountability through the financial statements audits”.

A statement from the Auditor-General’s office highlighted: “As at September 2022, roughly 32 publicly funded entities have approximately 131 years of financial statements in arrears.

“Of the 131 accounts in arrears 55, or 42 per cent, are under the auspices of the Ministry of Finance and the timeline for when these accounts may be available for audits remains outstanding.”

It said: “Financial statement audits enable the Parliament and the citizens and residents of Bermuda to hold the Government and individual public bodies accountable for their use of your money – public money.”

It added that audits of financial statements were also relied upon by accreditors and other parties for "assurance that management has presented a true and fair view of its financial performance and position“.

Ms Thomas pointed out that “no one said that her job will be easy” and acknowledged that criticism was expected sometimes.

The statement added: “As reported previously, information provided to her office by many publicly funded entities is often incomplete or not reviewed in sufficient detail by management or those charged with governance resulting in multiple accounting adjustments, or the financial accounts not being submitted at all.

“This situation has gotten worse because of the Covid-19 pandemic.

“However, it should be noted that even before the Covid-19 pandemic, the Government of Bermuda had significant challenges in properly preparing its financial accounts for audit as reported also by my predecessors.

“These challenges have only been exacerbated over the last two years by the Covid-19 pandemic.”

Ms Thomas said that her office “will continue to work with our auditees, which will mean that additional time will be taken to complete financial statement audits”.

She added: “The audits in arrears also frustrates me.

“It is frustrating hearing or reading about public money being spent on transactions and the financial accounts and supporting documentation are not provided to [my] office for audit or the information provided … is unauditable.

“Audits are posited to increase accountability and the usefulness of the financial statements is diminished each year that passes.”

The statement said there was “little financial training for board members or their volunteers”.

It added that the guidance was the responsibility of the Ministry of Finance.

Ms Thomas added that her office had carried out training for board members “on their fiduciary financial duties and how to prepare for a financial audit”.

The statement said that there was “significant momentum” on the reviews of parish councils.

The Auditor-General’s office also provided a summary of work in progress.

Its statement added: “There are many entities, including Bermuda Sport Anti-Doping Authority, Bermuda Monetary Authority, Bermuda Public Accountability Board, Bermuda Tourism Authority and St George’s Preparatory School Capitation Grant Account – this list is not exhaustive – who consistently produced timely accounts for audit, in accordance with the prescribed standards.”

Download PDF File

Auditor-General statement

* To see the statement in full and the list of work in progress, please click on the PDF under “Related Media”.