Ramdass report cites inability to review CBTT data

Auditor General Jaiwantie Ramdass’ Special Report on T&T’s accounts for 2023, shows that a Central Bank of T&T letter of July stated that the CBTT was “unable to accommodate” the Auditor General’s June request for an urgent meeting to examine the Central Bank’s electronic cheque clearing system and its Go AnyWhere platform.

This was part of the Auditor General’s Special Report laid in Parliament yesterday.

The report followed the issue which occurred earlier this year when the ministry and Auditor General Department clashed over the understatement of $2.6 billion in revenue in the Auditor General’s original report on T&T’s accounts for 2023.

After the January 31, 2024 deadline to submit information to the Auditor General, the ministry discovered the $2.6B, which arose from issues with the Central Bank of T&T’s (CBTT) electronic cheque clearing system. Clashes then arose between the Auditor General and ministry to have the $2.6B included in the report on T&T’s accounts for 2023

The Auditor General stated that the Special Report was commissioned to follow up on actions of the ministry to address its deficiencies which were identified and reported on in the original Report. Chapters included the Auditor General’s comments, follow-up action on the issue and on Central Bank’s electronic cheque clearing (ECC) system

Ramdass’ comments in the report noted that her original 2023 report on T&T’s Public Accounts outlined “major weaknesses,” which resulted in a Disclaimer of Opinion being given due to not being able to obtain sufficient audit evidence on the Public Accounts.

The issues which occurred between the ministry and Auditor General’s Office were recounted.

The Auditor General’s audit conclusions cited a “breakdown in the system of internal control, together with an ineffective internal audit, along with an apparent absence of management oversight, as factors which may have contributed to the non-compliance with legislative requirements of the Exchequer and Audit Act Chapter 69:01.”

The report also noted exchanges with Central bank on the ECC. This included the July 2, 2024 letter signed by the Central Bank Governor, which indicated that the Central Bank was unable to accommodate the Auditor General’s request for an urgent meeting with him on the electronic cheque clearing system and the CBTT’s Go AnyWhere platform.

The report showed a copy of the letter from CBTT governor Alvin Hilaire to assistant Auditor General Shiva Sinanan.

The letter stated, “I refer to the contents of your letter dated June 28 2024, The Central Bank of T&T is unable to accommodate your request.”

Among points, the report also cited its follow up with the Ministry in July on the Electronic Cheque Clearing System, or the root cause of the problem causing the understatement of revenue by $2.6 and noted the ministry’s responses.

The report stated that its audit hadn’t seen evidence of internal audit checks on documents examined at both the Inland Revenue and Treasury Divisions. It noted there was a reported material misstatement of $2.599 billion in the Statement of Receipts and Disbursements certified by the then-chairman, Board of Inland Revenue and the Statement of Revenue from the Treasury Division.

“To date, there is no Internal Audit Report on this matter.”

It also noted that the inability to produce accurate and complete accounts showing fully the financial position of T&T for financial year 2023 by the Ministry of Finance, resulted in the Auditor General receiving “five versions of Treasury Statements comprising significant material adjustments as large as $2.599 billion.”

With the financial statements being reconciled with the records of the Treasury on May 14, 2024 onwards, the report stated that the Statement of Declaration and Certification which were previously included with the versions of Financial Statements received on January 31, 2024, April 15, 2024 and April 16, 2024, were “wholly inaccurate.”

It was noted that the Statement of Declaration and Certification was signed by the Accounting Officer, Permanent Secretary, Ministry of Finance, the Comptroller of Accounts and the Acting Treasury Director. The Auditor General then recommended that the Accounting Officer of the Finance Ministry be reminded of the duties of the Accounting Officer.

Other Audit Findings took issue with authorisation, monitoring and reviewing.