Unreconciled accounts, missing inventory and discrepancies appeared to mark the National Emergency Management Agency’s [NEMA’s] accounting of the finances and construction materials that were donated and purchased for the reconstruction effort in the aftermath of the devastating twin storms Frances and Jeanne in September 2004, according to a Compilation Report completed by accounting firm Deloitte & Touche.
The report was contained in the Unaudited Financial Statements of the Bahamas National Disaster Relief and Recovery Fund created by the government to support recovery efforts following national disasters.
As of August 31, 2005, the fund was more than half a million dollars in the red on its capital account but held $3.9 million in cash on its administrative account, according to the unaudited report. The financial year started with a balance of $52,419, the figures showed.
Total assets were estimated at $6.6 million and liabilities were estimated at the same amount.
The accountants said certain information was simply not available for an accurate reflection of the financial position of the disaster relief fund.
Members of the Opposition have been demanding for many months the release of a proper accounting of the fund’s administration.
The accountants reported that vouchers for purchases of materials had been issued without copies, control numbers and in some cases dollar values leaving them unable to reconcile the vouchers submitted by the vendors to determine the resulting amount of the outstanding commitment. However, they did indicate that management had indicated unpresented vouchers were no long being honoured.
Additionally, accounts payable have not been reconciled, according to the Compilation Report.
“Significant amounts of inventory have not been accounted for,” the report noted. “Several islands reportedly held inventory during the year, however, no inventory reports have been received for these islands, therefore, their inventory values have not been included. Additionally we have not received inventory reports updated beyond May 31, 2005 for certain other islands.”
The accountants said they had also not been able to disclose the final disposition of bank accounts where overdrafts represented cheques written which had not been presented by the account closing dates.
The sentiments were dated April 18, 2006.
Between August 31, 2004 and August 31, 2005, financial and material contributions amounted to $7.6 million. There was a $1 million donation that was also classified as restricted. Over the year long period, the government used approximately $20 million on the reconstruction exercise.
The accountants also exposed a discrepancy regarding the account named Accounts Payable – Ministry of Housing. The amount show in the statement of financial position [$1,613,772 million] represents the amount owing as verified by the fund, with supporting schedules and related invoices also confirming the amount.
However, officials pointed out in a letter dated February 10, 2006 that the Ministry of Housing and National Insurance had indicated that the fund owed it a total of $1,796,103 million. The $182,331 difference between the amounts submitted has not been reconciled, Deloitte & Touche reported.
NEMA is responsible for administering the fund and has a staff complement of seven full time employees. In the wake of hurricanes Frances and Jeanne, the government established a recovery and reconstruction unit within the Ministry of Housing having lead responsibility for reconstruction efforts.
Regional Coordinators were appointed for Grand Bahama, Abaco and the southeastern islands and staff was either seconded from government agencies or appointed on a temporary basis to newly established NEMA units in Grand Bahama, Abaco, Eleuthera, San Sanvador, Acklins, Cat Island, Crooked Island, Mayaguana and the Berry Islands.
The government has also assigned accounting staff from both the Ministry of Finance and the Treasury Department to assist with the compilation of the fund’s accounts.
By: Tameka Lundy, The Bahama Journal
