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Head 40000: Ministry+of+Labour+and+Social+Security">Ministry of Labour and Social Security – Programme of Advancement through Health and Education, Integrated Support to Jamaica’s Social Protection Strategy (ISISPS)

Issue/Concern(s) Financial

Exposure

Governance

3.2.108 The Integrated Support to Jamaica’s Social Protection Strategy (ISJSPS)

Project is funded by a US$50.0 million loan from the Inter-American Development

Bank (IDB) and counterpart funding provided by the Government of Jamaica. The

loan of US$50.0 million should be disbursed over a four-year period from November

25, 2015, when the agreement was signed.

3.2.109 The objective of the Project is to support consumption, protect and

promote the human capital accumulation of the Programme of Advancement

Through Health and Education (PATH) beneficiaries, and strengthen the overall

capacity of the Ministry+of+Labour+and+Social+Security">Ministry of Labour and Social Security (MLSS) to improve quality and

access to the network of social services provided by the Ministry to the poor and

vulnerable population.

Control weakness over reconciliation of the Beneficiary Bank Account

3.2.110 At the time of audit, the reconciliation of the Beneficiary bank account was

six months in arrears; January 2019 being the last month reconciled. Further, we

observed that the December 2018 bank reconciliation statement included

reconciling items amounting to J$15.60 million, coming from as far back as 2006.

This comprised bank charges of J$1.43 million, Erroneous debits amounting to

J$12.79 million and stamp duty, totalling J$1.37 million. PATH indicated that the

outstanding reconciliations were not completed due to system related issues with

the accounting software. PATH’s delay in reconciling the Beneficiary bank account

compromised the internal control surrounding the Project’s cash resources,

making it possible for errors and irregularities to remain undetected for protracted

periods. The Beneficiary bank account is the sole account through which beneficiary

payments are made and US$2.7 billion was paid out during the period that the

reconciliations were not done.

Unspent Balance in Project Bank Accounts

3.2.111 PATH did not surrender monies unspent by the Project to the Consolidated

Fund, as required by the Law. In a previous audit report, PATH was advised that at

the end of all projects, the unspent cash balance should be remitted to the

Consolidated Fund. However, we observed that as at December, 2019 $172.12

million that was unspent on the Social Protection Project II (SPP II), which ended

March 2018 remained in the GoJ Administrative Account. Where monies are left in

bank account after the closure of projects, the Ministry is exposed to unauthorized

expenditure, which may by-pass established budgetary and commitment control

process.

$2.7B

$172M

...
June 10, 2021


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