The Auditor-General has raised serious concerns over financial reporting, governance and internal controls across Fiji’s municipal councils after modified audit opinions were issued on all 19 financial statements audited.
In its Report on Municipal Councils, the Auditor-General said the findings reflected negatively on the councils and required urgent attention from those responsible for their governance.
This report includes the audit results of 19 financial statements for 8 Municipal Councils as follows:
-Nausori Town Council 2019 to 2021
-Tavua Town Council 2021 to 2023
-Rakiraki Town Council 2024 & 2025
-Levuka Town Council 2019
-Savusavu Town Council 2018 to 2020
-Suva City Council 2020
-Labasa Town Council 2019 to 2021
-Lami Town Council 2021 to 2023
“Urgent attention should be given to address matters which have been highlighted in the Auditors’ Reports,” the report stated.
A major concern identified was the quality and timeliness of financial reporting, with delays in submitting financial statements preventing the Auditor-General from providing Parliament and other stakeholders with timely audit findings.
“Improving the quality and timeliness of financial reporting is a major concern that needs to be addressed by those charged with governance of the Municipal Councils,” the report said.
The audit also found weaknesses in governance and internal controls, with some regulations, formal policies and procedures either outdated or non-existent.
“Good governance and internal controls are lacking because regulations, formal policies and procedures to govern all aspects of the Municipal Councils’ operations were not reviewed and updated for a long period of time or that they do not exist,” the report stated.
Poor records management was another concern, with the Auditor-General noting missing financial records and the absence of a policy specifically addressing effective records management.
The report recommended that improving financial statements be treated as an “utmost priority”, including employing suitably qualified accountants capable of preparing financial statements on time.
It also recommended establishing a robust audit, risk and improvement committee to address financial reporting, governance and internal control deficiencies.
Municipal councils were further urged to maintain accurate fixed-asset records and develop clear plans for asset valuations.
“The Ministry of Local Government should continue to strengthen its monitoring role on the operations of the Municipal Councils to improve financial accountability,” the Auditor-General said.
