PASAI SEEKING EXPRESSIONS OF INTEREST - South-South Co-operation Program Supporting Nauru SAI

At the February 2017 Governing Board meeting the Board approved the proposal for a sub-regional program to provide resources to the Nauru SAI to assist with the conduct of financial audits including the 2014/2015 and 2015/2016 Whole of Government financial statement audits.

The Secretariat has called this Nauru SAI sub-regional programme “Financial Audit Secondments Technical Support” or “FASTS program” and now welcomes Expressions of Interest (EOI) applications for Pacific Auditors of all PASAI members to be seconded to Nauru SAI to provide technical support in relation to the conduct of government financial audits.  The FASTS sub-regional programme are up to one month at a time and PASAI provides for up to four paid secondments annually over the next three years, beginning September 2017.  PASAI will pay for travel costs, accommodation and also provide an allowance according to PASAI’s travel policy.

The selection process consists of reviewing CVs, answers to Selection Criteria, statement to respond to “What will I expect to benefit from this Secondment opportunity?” and an interview process carried out by PASAI Secretariat.

We encourage Heads of SAI to share this opportunity with your staff as an excellent professional development experience and at the same time achieving PASAIs motto of “Pacific Auditors Working Together”. 

We look forward to your nominations and applications in support of this program.    

Deadline to apply: 31 August 2017

Should you need further information please contact Mrs A’eau Agnes Aruwafu at agnes.aruwafu@pasai.org

OFFICE OF THE FSM PUBLIC AUDITOR - Annual Financial Audit on the Caroline Islands Air, Inc. for Fiscal Year 2016

The Office of the National Public Auditor (ONPA) announces the release of the financial audit on the Caroline Islands Air, Inc. (CIA) for the fiscal year ended September 30, 2016. This is a part of the Single Audits for the FSM Government, which is outsourced to Deloitte & Touche under the oversight of the ONPA. A digital copy of the audit is available for public review online at www.fsmopa.fm and printed copies are available at the ONPA in Palikir, Pohnpei.

Background

CIA, a component unit of the FSM National Government, was established by Public Law 10-72 in December 1997, for the purposes of (1) providing air transportation services throughout the FSM, (2) contract with domestic and foreign persons and corporations for the provisions of aircraft and services, (3) operate domestic air transportation, (4) train citizens in professions related to aeronautics, (5) act as a "freely associated state air carrier" within the meaning of the Federal Program and Services Agreement concluded pursuant to the Compact of Free Association, (6) engage in support activities, included but not limited to, freight terminal and delivery activities and passenger services, and (7) enter into joint ventures with other entities in order to effectuate its operations.

It is governed by a six-member Board of Directors. Each of the four state governors recommends a representative. All Board members are appointed by the President with the consent of the Congress. The CEO serves as an ex-officio on the Board.

Financial Results

Based on the audit, the total operating revenues for CIA totalled $674,069. This is an increase of approximately $241,315 compared to prior year. This increase is due primarily to the increases in charter services and passenger airfare.

The total operating revenues comprised of $354,368 (52.6%) from charter services, $250,179 (37.1%) from passenger airfares, $49,668 (7.4%) from baggage fees, $17,844 (2.6%) from freights, and $2,010 (0.3%) from other services such as service fees and drums.

CIA's total operating costs for FY16 totalled $527,139. Of this amount, $331,288 (63%) came from maintenance and operations, $133,565 (25%) from salaries and housing, $27,537 (5%) from insurance, $14,911 (3%) from taxes, and $19,838 (4%) from other costs such as rent and depreciation.

Gross profit for CIA after deducting the operating costs from operating revenues amounted to $146,930, compared to $102,307 in prior year.

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The following table summarizes the financial condition and operations for CIA for FY2016, FY2015 and FY2014:

Audit Findings and Opinion

Findings: There were no unresolved audit findings from the prior year audits for CIA.

Opinion: CIA, Inc. received an UNMODIFIED opinion on its 2016 audit. An unmodified opinion means that the entity's financial statements were fairly presented, in all material respects, in accordance with accounting principles generally accepted in the US.

Deficiencies in internal control over financial reporting were identified during the course of the audit, which included the following:

1.     Written employment contracts were not utilized for several employees.

2.     There were numerous audit adjustments which impacted a significant number of accounts. Many of the adjustments related to the lack of year-end closing entries.

3.     Board meetings have not been held since October 2015 because the members' terms have expired. Board members are still involved with CIA's operation since the new members have not been appointed.

Management:

Alex Tretnoff, CEO/Pilot/Chief Mechanic and Mary Tretnoff, CFO

The 2016 financial audit for CIA was conducted by Deloitte & Touche under a contract awarded by the Office of the National Public Auditor. The deadline for this audit is June 30, 2017. The full copy of the audit report can be accessed on our office website at http://www.fsmopa.fm/.

Auditors look at how to improve communication with stakeholders

The Pacific Association of Supreme Audit Institutions (PASAI) was in the Solomon Islands last week delivering a communications workshop for the Solomon Islands Office of the Auditor-General (SIOAG). The aim of the workshop was to assist the Office of the Auditor- General to develop a SAI Communications Strategy to effectively communicate with its stakeholders. The workshop also trained auditors on how to write clear, concise and simple audit reports that would enable audit findings to be communicated more effectively to Parliament, the Public Accounts Committee, audit entities, the media and the general public.

The four-day workshop commenced on Tuesday, 6 June 2017 with a total of 23 participants comprising of financial auditors, performance auditors and corporate services staff of the SIOAG. Mr Peter Lokay, Auditor-General of the Solomon Islands opened the workshop and welcomed the participants emphasizing, “Our corporate plan requires us to make a difference to our citizens. This workshop fits in well with our corporate plan. I hope that by the end of this workshop you will all be able to communicate and promote the value and benefit of our SAI.”

Participants learnt how to identify and analyse key stakeholders for their SAI and how towrite a communication strategy to effectively communicate the value and benefit of theirwork to make a difference in the Solomon Islands public service. The second half of the workshop was spent on learning how to write clear, concise and simple audit reports to communicate audit findings, as well as how to write media releases. Public speaking and using social media to communicate audit results was also covered. Participants stated, “The session helped a lot towards report writing” and “This training is useful and can help me improve my communication skills”.  The response from all the participants was very positive.

The workshop concluded on Friday, 9 June 2017 with closing remarks from Counsellor Karyn Murray of the Australian High Commission in Honiara, saying “We are always keen to support the Auditor-General’s office as you do a great job and a very important job here in the Solomon Islands.  Take note of what you have learnt this week and use it.”

This workshop is the third SAI specific communications training that PASAI has delivered over the last 12 months with the aim to improve report writing and stakeholder engagement for its members. The training was co-facilitated by PASAI’s Director of Advocacy, Engagement and Financing, Aolele Su’a Aloese and PASAI’s Communications Advisor, Tina Vaka. The training was hosted by the Solomon Islands Office of the Auditor-General and supported by the Australian Department of Foreign Affairs and Trade (DFAT) and the NZ Ministry of Foreign Affairs and Trade (MFAT).

Photo: The staff of Solomon Islands Office of the Auditor-General who participated in the communications workshop.  Auditor-General, Mr Peter Lokay is seated in the middle of the front row.

Photo: Participants engaged in learning activities in the communications workshop

SAI Communicates, Citizens Assured - Nadi, Fiji

Auditor-Generals and Public Auditors (Heads of Supreme Audit Institutions (SAI)) from around the Pacific attended the ‘Enhancing Effective Communication with Stakeholders’ in Nadi last week.

The three day workshop, held from 29 – 31 May, provided the Heads of SAI the opportunity to develop strategies to achieve greater audit impact through effective and efficient communication with public and private stakeholders, and within Pacific SAIs. Sessions on media, social media and public speaking provided valuable insights and ideas on communicating audit work and results through broader platforms.

Ihlen Joseph, the Public Auditor for Pohnpei State in the Federated States of Micronesia and PASAI Chairperson said, “This workshop has given us much to think about and implement in our SAIs to improve communicating our work.”

The Australian High Commission (Fiji) Pacific Regional Counsellor, Matthew Lapworth, in his opening address, said “Australia is pleased to support this workshop as good effective communication is crucial for SAIs in promoting good governance, accountability and transparency in the region.”

Hon. Dr. ‘Aisake Valu Eke, Member of Parliament for Tonga, and a key speaker at the workshop shared his reflection from the workshop stating, “I feel that this workshop was about changing from being a SAI of the past and becoming a SAI that is relevant for now and in the future. I am looking forward to the transition that will take place in our Pacific SAIs as a result of this workshop.” According to Tuvalu Auditor-General, Eli Lopati, “We have been encouraged, challenged and equipped to be better communicators as Heads of SAI.”

The insights gained from this workshop have prompted SAIs to commit to reviewing their communication policies in key areas. The actions on these commitments will be considered at the 20th PASAI Congress to be held in Funafuti, Tuvalu from 8 – 11 August 2017 with the theme “Promoting Values and Benefits of SAIs through Effective Communication”.

The workshop was hosted and facilitated by the PASAI Secretariat team, staff from the Australian National Audit Office (ANAO) and the Audit New Zealand.

Forty-seven participants and key speakers from twenty PASAI member countries, states, parliaments, regional and other organisations attended the workshop. Key speakers included Members of Parliament from Fiji and Tonga, the Permanent Secretary for Fiji Ministry of Public Enterprises, the Australian Commonwealth Ombudsman, Pacific Islands Private Sector Organisation (PIPSO), Pacific Islands Association of Non-Government Organisations (PIANGO), and development partners. Also present was the CEO for Taimi Media Network and representatives from Capital Toastmasters Suva and Interactionz.

PASAI acknowledges the support of the Australian Government and the New Zealand Ministry of Foreign Affairs and Trade for making this workshop possible for all their member SAIs.

Photo: Pacific Auditors-General and Public Auditors and representatives from various stakeholders attended the regional workshop for heads of supreme audit institutions (SAIs) on enhancing effective communication with stakeholders, Nadi, Fiji.