THE Agricultural Marketing Authority was unable to provide relevant supporting document and accounting record to substantiate salary, wages and related payments amounting to $2,196,995 reported in its 2022 financial statements.
The Office of the Auditor-General (OAG) has reported this to Parliament in his report on statutory authorities, independent bodies, and commissions that was tabled on Monday.
The report added an unreconciled variance of $87,960 was noted between the payroll report and general ledger.
“As a result, audit was unable to ascertain the accuracy of the salaries, wages and related payments of $2,196,995 recorded in the financial statements,” said the OAG.
The audit also found the authority was unable to provide relevant supporting document and accounting record to substantiate “sales of $6,406,364 and cost of sales amounting to $6,367,342”.
“Consequently, audit was unable to perform audit procedures to confirm accuracy and completeness of sales and cost of sales, respectively.
“As a result, audit was unable to ascertain the accuracy and completeness of $6,406,364 and $6,367,342 recorded in the financial statements of the authority for the year ended 31 July 2022.”
The Auditor-General said internal control function of cash, revenue management, payroll processing and procurement of goods and services were found to be weak at AMA.
“Poor internal control may lead to fraud and possible misappropriation of funds.
“The board did not have in place approved written policies, procedures, and guidelines to govern its accounting functions and manage risk, including risk associated with fraud and anti-corruption, disaster recovery and business continuity.”
