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2018 Auditor General Report – A Tale of the Same Woes

The blogmaster feels an infinity for the Auditor General of Barbados. For many years we have regurgitated a similar message, the need for transparency to how we do business. Some ask what has Barbados Underground blog been able to achieve in its 12 years of existence? The blogmaster responds by saying what has the Auditor General been able to achieve in the decades of that office existence?

The blogmaster is motivated by doing what any civic minded citizen should be minded to do. If the result is that it makes a difference then he will smile, wider. The smile will always be there because a civic minded son or daughter of the soil will always smile when they commit unconditionally to“the cause that lacks assistance, the wrong that needs resistance, for the future in the distance, and the good that we can do”is realised.

Here is the 2018 Auditor General report for those who missed it., The message is the same as it was last year and the many years before. Here is what we also know, it mattered not that the Barbados Labour Party or the Democratic Labour Party were in office. It mattered not that Barbadians are considered a well educated people.

In the 2018 report the Auditor General rapped this new government on the knuckles about the lack of transparency surrounding the restructuring exercise. There is a note about unauthorized spending by the Barbados Police Force. The Central Bank of Barbados and the National Insurance Scheme (NIS) were fingered for being behind in the preparation of audited financial statements. Congratulations to the Enterprise Growth Fund, Financial Services Commission, Grantley Adams International Airport and FAir Trading Commission for doing their jobs by declaring current audited financial statements.

Screenshot 2019-07-02 at 04.40.11

190 responses to “2018 Auditor General Report – A Tale of the Same Woes”

  1. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 4 :28 PM

    No I am not happy with late or improperly prepared GoB Accounts. Neither do I believe in making bricks without straw. The Auditor General’s Dept must be properly staffed. The queries and infelicities must be addressed by the Accounting officers i.e Permanent Secretaries and Chief Financial Officers. Those not functioning satisfactorily should be separated.

    @John A

    Business decisions are made on up- to- date information. Audited accounts are stale and may be irrelevant to making wise decisions. Management Accounts no later than 10 days overdue are the bases of BoD decisions in the public and private sectors.

  2. David Avatar
    David

    @Vincent

    The not too subtle point you continue to miss is why would governments adequately staff the AG department if there is no serious attempt to follow through on repeated recommendations from that office? It is not whether the blogmaster agrees, it is more about what we know will happen based on prevailing culture and modus operandi.

  3. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 5:05 PM

    You know nothing. Past behaviour is no fool proof indicator of future behaviour. How can you be sure ? Are you suggesting that we do not arrest criminals because some smart lawyer will get the case thrown out? What kind of logic is that?

  4. David Avatar
    David

    @Vincent

    You have it covered of.

  5. John A Avatar
    John A

    @ Vincent

    Regardless to what you say about in-house financials they are merely a carry on from the last audited financials. They must have a base of continuance and that is the source.

    Are you saying that 3 consecutive years of in-house financials could be more accurate than 2 years of audited financials and the last year only of in-house?

    Sorry can’t agree with You there at all. All in-house figures are is a live rolling set off numbers since the last audited ones and until the next audit is done. Therefore by its very nature the source of the roll over to in-house from last audited must be both correct and timely or it’s ” garbage in garbage out.”

  6. David Avatar
    David

    The feedback from the external auditors through the former Chairman confirms that the public seeing audited financials soon is proving to be problematic.

  7. Vincent Codrington Avatar
    Vincent Codrington

    @ John A

    Please note carefully in the Introductory pages of the AG report of March 2018 the definition of an audited report and what it does and cannot do. It is standard caveat in all audited reports for Public and Private entities. They cannot and do not guarantee accuracy.

  8. Vincent Codrington Avatar
    Vincent Codrington

    @ JohnA

    If you believe it is so, so be it.

  9. John A Avatar
    John A

    @ David

    I rest my RH case. Lol

    Following should be the NIS disclaimer.

    ” The public is herby advised that Seeing that we are unable to produce audited financials for the last 6 or more years, we shall continue to function on in-house figures since 2014. All errors therefore made during the 5 years of in-house figures will therefore be brought forwarded and compounded by further unchecked errors made in future years until we can get around to do an audit. Should that ever occur we may or may not bother to reconcile the figures depending on how we feel. The public’s patience is therefore requested in the matter. Further please be advised that when our government speaks of a sound NIS it is more of a guess and must not therefore be taken as a statement of fact.”

    Sincerely

    CHAIRMAN
    NIS BOARD OF ESITMATES & GUEST WORK
    LA LA LAND
    ST MICHAEL

  10. John A Avatar
    John A

    @ Vincent

    All audits carry a disclaimer that exempts them from producing financials based on false information. Usually in the accompanying notes they will state the areas they are uncomfortable with. Problem is we can’t even get an audit they uncomfortable with! Lol

  11. John A Avatar
    John A

    The problem here is that too many entities have refused to bring their financials up to date making the job of the AG dam near impossible. Look at the variances between recorded and accounted for in terms of cash that walk away, they are massive amounts. The NIS should never of been allowed to get this far behind as they are too many people dependant on their pension. Also we need audited financials there more than ever so the public can see for themselves the effect the debt restructure had on the fund.

    As taxpayers we should accept no less and I can’t see how different should be expected of us.

  12. Vincent Codrington Avatar
    Vincent Codrington

    @ John A

    There can be no doubt GoB has been negligent in maintaining its physical ,financial and human capital. These are areas that require GoB ‘s full attention . I do not detect any urgency in dealing with them. I hope there will be no unacceptable consequences.

  13. John A Avatar
    John A

    @ Vincent

    I like you see no urgency from either party to deal with this waywardness. The NIS though is my biggest issue and concern, as alot of low and middle income Bajans will be the most dependant on the NIS fund. The better off may have been able to invest in rental properties or have sizeable assets parked in mutual funds and private retirement plans, but who is looking out for the salaried person making $3000 a month or under?

    I find the way we played with the NIS to be unconscionable at the very least. I will also add my total dissatisfaction at how this government have gone about trying to deal with it as well.

    I herby now step down off my soapbox 😁

  14. Marisa8 Avatar
    Marisa8

    20% vat
    Now that is what i call bad a.ss
    You go IMF
    Thanks for the upgrades

  15. Robert Goren Avatar
    Robert Goren

    The not too subtle point you continue to miss is why would governments adequately staff the AG department if there is no serious attempt to follow through on repeated recommendations from that office? (Quote)

    @ David Blogmaster

    Are you implying there is some ulterior motive for successive governments not adequately staffing the Audit Department?

    You know this is several years that the RBPF do not have an adequate amount of police officers? The last count they were short by just over 200.

    What are your thoughts on this worrisome situation?

  16. David Avatar
    David

    @Robert Goren

    The following article is instructive. The Police has been active in trying to recruit, with limited success.

    Changes coming to police requirements

    Article by
    Barbados Today Published on
    May 9, 2019
    The door has now been opened for older men and women to join the Royal Barbados Police Force.

    However, Attorney General Dale Marshall says time will tell if the adjustment will result in an increase in recruits at the Regional Police Training Centre (RPTC).

    In light of decreasing interest in joining the Force, Marshall this evening revealed that Cabinet had amended the legislation which required persons to be between the ages of 18 and 30 to do so.

    Speaking at the 143rd Passing Out Parade and Graduation Ceremony at the RPTC’s Seawell, Christ Church headquarters, the Attorney General said that age limit had now been raised to 35.

    “We consider that in today’s Barbados a maximum age limit of 30 is simply too low if we are going to expect to recruit an increasing number of police officers. Cabinet has therefore just agreed that the legislation will be amended to increase the upper limit from 30 to 35,” he said.

    https://barbadostoday.bb/2019/05/09/changes-coming-to-police-requirements/

  17. TheOGazerts Avatar
    TheOGazerts

    https://barbadostoday.bb/2019/07/04/barbadians-urged-to-take-more-investment-risks/
    Second article I read from this guy and at the end of it I asked myself “What the hell did I just read?”
    Not a single suggestion.
    Perhaps this guy could hook up with Grenville.

    Going to put it here and hope my favorite professors comment
    J/A
    VC
    H/A
    WS

  18. TheOgazerts Avatar
    TheOgazerts

    Have a great day Barbados

    It’s the 4th of July.

    One reason I like the USA is that despite the numerous problems that we have, there is the underlying belief that we will overcome them. Sometimes we go backward instead of forward, but I know that we will discover the error of our ways, correct them, recover lost ground, and move the baton closer to the finish line. God Bless, you America.

    God Bless, You Barbados. Have a great day Barbados.

  19. John A Avatar
    John A

    @Ogazerts

    That comment is based on what I like to refer to as “book smart vs street smart” not to mention a few holes in his argument.

    To say rates are low so invest, one may have noticed the fact that they were no suggestions made as to what to invest in, wonder why? So let’s help the gentleman.

    Real estate is off around 30 percent both in terms of sale price and rental income. To make things worst a 61% increase in Land tax on some did little to help the risk to return ratio. So let us cross that off the list.

    Government paper has slaughtered its owners turning many that could of been comfortable retirees into part time workers till the grave. So cross that one off too.

    I know insurance investments! Wait many loss money in Clico so confidence ain t strong there. Cross that off too then.

    I got it a small business! Now which of the many half empty and struggling malls should I open my shoe shop in? Cross that off the list too then.

    So we have established the conditions for investment are not there as we are in a recession with threats of further taxation looming, which could include the move to an Increase in vat to 20%. Lord the environment for investment piss poor so cross the shoe shop off the list too.

    Alright this is my last straw I going buy stock in the stock market and be the Bajan Warren Buffett! Wait hold on some days I hear that only trading like 400 shares at $4 so if I but who I going to sell to when I ready? Alas another X there too.

    Now should I take comfort in the fact the bossman say we got $1.2B in reserves? Wait we ain t pay a foreign creditor a cent for 13 months so if I deduct what owed how much I left with? No I going run and put my two cents on the bank!

    Oh hell I just forget that is where they was at the begging of my post so who idea it was again to make me take dem up?

    Street smart vs book smart. Theoretical finance based on fund availability and low interest without taking into account environment and potential for a decent ROI.

    Summary:

    Political statement made to instill confidence which when dissected is not worthy of reading.

  20. Vincent Codrington Avatar
    Vincent Codrington

    @ John A at 7:37 AM

    John A,
    How come Moody’s gave an upgrade and you give so many down grades? You seemed to have on the ground and Underground information. Most likely you did a fundamental analysis. Piece O Legend soon going to ban you.

  21. John A Avatar
    John A

    @Vincent.

    Moody looking out for the foreign people money and I looking out for mine! Lol

    Although if the bossman can identify a sector that showing growth in real terms and has not be caught up in the recession I ready to listen. 😁

  22. Hal Austin Avatar
    Hal Austin

    @ Vincent,

    Is this the same Moody’s that gave the SPVs triple A ratings in 2007/8, even as the whole shebang was collapsing?

  23. John A Avatar
    John A

    I was looking at the stock market but when I see some days only 4 hundred shares was trading at $4 I say even if I did make 10 percent after a year thay would be $160. But then I would have to subtract fees, the 4 bus fares at $3.50 each to get town plus lunch money, so I didn’t bother.

    You like a lot of foolish talk. Lol

  24. John A Avatar
    John A

    @ Hal.

    Now why you had to go and bring that up for! Them people book smart not like we humble plebs that only street smart and could add and subtract little bit .

  25. Hal Austin Avatar
    Hal Austin

    I think we should have a military parade on Nov 30 and the nation should salute the president.

  26. Vincent Codrington Avatar
    Vincent Codrington

    @ Hal at 9 : 39 AM

    Yes. You have the right group. No need to say more. But if we view these exercises as mind games ,we may retain our sanity.

  27. David Avatar
    David

    @John

    What is your definition of growth?

  28. John A Avatar
    John A

    @ Vincent

    How the calypso coming and what is the topic about ? Hal say he good but if he faint prop him up in a chair to recharge. So not that I want to know you business but i curious as to the topic.

  29. Hal Austin Avatar
    Hal Austin

    John A

    I can count to ten – 20 if I take off my shoes and socks. I can’t subtract or multiply. Who do you think I am? Chris Sinckler?

  30. John A Avatar
    John A

    @ David.

    That depends on who you speaking to it appears.

    But in my humble opinion real growth is only present when all of society benefits in some way, either directly or indirectly. It should also be measured net of liabilities.

    For Instance to say we got ” growth in reserves to $1.2b” is true but does not take into account liabilities owed by not paying the foreign creditors a red cent for 13 months.

    I also heard Warren Buffet say that he likes to speak to ” net growth ” which is growth rate minus the rate of inflation over the said period.

    So they got many different ways of viewing it depending on if you are a politician or not it seems.

  31. David Avatar
    David

    @John A

    Economic growth is a subject economists often disagree.

    Next question, given the state of the economy one year ago what is your expectation after little over one year?

  32. John A Avatar
    John A

    @ Hal

    Be carefully with that shoe thing cause I was told a past MOF went in a local shoe shop and ask for a pair of size 14s only to be told they were out of stock. To prove his master of maths he told the clerk to bring 2 pairs of 7s.

    To protect the ignorant no names have been used.

  33. Vincent Codrington Avatar
    Vincent Codrington

    @ John A at 9 :56 AM

    The calypso coming along fine.There is so much information emerging ,that I am suffering from material overload. I still looking for background singers that are immune to bottle throwing. Lol !!!

  34. John A Avatar
    John A

    @ David

    Based on the measures put In place continued contraction and an extended recession into 2020. This as no clear growth plan has been implemented to date.

  35. John A Avatar
    John A

    @ Vincent.

    I got that covered we going use the ” red neck bottle repellent system ” the fellows in the deep South use.

    We going erect 10 foot high chicken wire all around the stage so we will get soak in beer but not cut.

  36. David Avatar
    David

    @John A

    The information you are being encouraged to share is how can the government implement a growth plan under a program of austerity designed to stabilize.

  37. NorthernObserver Avatar
    NorthernObserver

    @TheoG
    after the BHL sale, i was flush with cash. Of the limited choices, I selected sagicor shares and GEL shares. Why? IMO there were the ‘most likely’ to take their business offshore, and trade in another currency. Sagicor is obliging, GEL not so far.
    Barbadians must be able to invest elsewhere.
    For understandable reasons, many do not like Dr W. But go back and read what he has said recently. With a few tweeks, it can work.
    for decades, the Barbadian dream for those with money, has been to convert to a hard currency, and invest it offshore. It was not only a buffer against local circumstance, it provided much higher yields. And liquidity. It would take me months, maybe years, to offload my shares in Bim. If it were not for a ‘put through’, it would have taken equally long to acquire them. And the broker fees in Bim are so far beyond acceptable, they eat a huge portion of any yield.
    Friend of all, and satellite of all.

  38. John A Avatar
    John A

    @ David.

    If we accept what the last MOF said when he stated between BRA and Customs they were owed “just over $1B” then why didn’t we focus on collecting even half of that instead of austerity ? As Vincent likes to say the indirect tax system got more leaks than an old main. Why didn’t we address this matter and at least try to collect another $100m a year currently lost in leakage ?

    Instead the powers opted for a $400m austerity program. Had we of collected even $300m of receivables owed and plugged just $100m in annUal leakage, there was the $400m. That would of meant the $400m in New taxes could of been either done away with or considerable reduced. That liquidity if left in the system would of been enough to spur growth in the economy.

    But no it easier to tax we tail than get the 30 ministers to do their job l

  39. David Avatar
    David

    @John A

    We need to improve tax collection however the questions asked about this matter remain unanswered. One senses there are other considerations you must factor. What percentage of tax outstanding is collectible. If it is collectible over what period etc.

  40. Mariposa Avatar
    Mariposa

    This form of vodoo economics that this govt has embarked is stale left over soup which has been tried over and over again by the IMF in these third world countries
    Proof of any significant economic growth emerging and brought about after austerity plans have been implemented is yet to be found
    Jamaica is a clear example of entering a IMF plan and reaping the sweets of an economic growth plan afterwards
    Just like barbados most of Jamaicas revenue is generated from tourist

  41. Vincent Codrington Avatar
    Vincent Codrington

    @ David Bu

    What are you stabilizing? Is what you doing stabilization or turning off the engines in full flight? Stabilization and growth are inseparable for aeroplanes and economies.

  42. John A Avatar
    John A

    David

    This nor no other government was ever good at collecting money so you don’t give them it to collect. After all you going Give the same people that let the receivables run up the money to collect?

    No we like English Companies so you contact some like LOVETT UK and say fellows we got $1b here in receivables come deal with it and take 20% and give us the rest. Or the other road which Hal likes, is sell the dam debt to a Vulture for say 40 cents on the dollar and let them fight up with collecting it.

    Don’t let no politician fool you bout its not that simple. Why they don’t tell you instead the truth which is ” listen some of dem that owe is party financers left dem lone.” Plus remember the last MOF said SOES and others from government had owe the Vat office over $200m alone. If you sell to the debt vultures they coming for that $200m too! So more tax in we tail to find it and pay them.

    You seeing why a politician would tell you well it ain’t that easy now?

  43. John A Avatar
    John A

    @ David

    I think the best way of simplifying it is to use the below summary.

    Every dollar lost in the leak of indirect taxation= another dollar in direct taxation on the backs of the populace.

    E.G

    So inefficient bus service no problem left it so and increase bus fares

  44. David Avatar
    David

    @John A

    You are aware the political ramifications of factoring public debt?

  45. charles Skeete Avatar
    charles Skeete

    The Auditor-General has done his duty in accordance with the Financial Administration and Audit Act. Examine and report to Parliament by the 31st ,December.If the report points to infelicities then it is up to those with the requiste responsibilities also provided for in the same Act to perfrom their duty. The duties of the Auditor-General do not include prosecution. At most, hemight becalled as a witness for the prosecution as ha happened in the past when charges arising out of his report reach the court.

  46. Mariposa Avatar
    Mariposa

    It took Jamaica 32 years within an IMF agreement ridfle with grueling austerity policies to reach a goal of 99%of its GDP
    Barbados for the most part has a smaller population which can least afford to be handed austerity measures for another 30 years with out govt having a growth plan
    IMF statement which adress a strategy of growth by govt says enought to the inquisitive mind that govt continual borrowing as a supplementary policy for keeping the reserves in good standing would be needing additional fiscal support in order for the reserves to be sustainable long term
    Govt needs to take the IMF hint as one withall seriousness for the good of the people and country
    After a year of borrowing govt should released itself from the coattails of the IMF and put barbados on an economic path absent of more austerity measures

  47. David Avatar
    David

    How long was Grenada in an extended imf program?

  48. Mariposa Avatar
    Mariposa

    Mottley also indicate for the most part that govt would continue in austerity
    Which in itself is an eyeopener to the inquisitive mind that govt has no real-time initiatives for creating a growth strategy for the country
    Also Mottley did send a message of desperation to the IMF while agreeing in part that vat could be increased as a solution to help tackle the debt
    While the poor struggle govt glorious expectations are handed to the IMF behind closed doors
    One day coming soon the people would say no more

  49. Hal Austin Avatar
    Hal Austin

    @John A
    Economic growth is a subject economists often disagree. (Quote)

    Plse explain this genius observation. Can economists count more than zero?

  50. John A Avatar
    John A

    @ David

    They can postpone it but they will have no choice but to address it as the IMF will not let them getaway with not addressing it.

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