PASAI director visits Kiribati

Bairiki, Kiribati: Programme Director for the Pacific Association of Supreme Audit Institutions (PASAI), Susana Laulu, visited Kiribati last week to provide in-person technical support.

Auditor-General, Eriati Manaima, and his staff at the Kiribati Audit Office (KAO) hosted Ms Laulu during her mission.

The primary purpose of Ms Laulu’s trip was to assist and guide the staff responsible for the 2022 Financial Statements of Government (FSG) with the audit planning and process. PASAI’s central strategic priority is that its member audit offices complete high-quality audits of government accounts on a timely basis.

Ms Laulu explained, “It’s very important that auditors have a broad understanding of government operations, the nature of key components of the FSG, and linkages to the work of each ministry to ensure the government budget is appropriately expensed and accounted for.

“Auditing is much more than double-checking numbers. Effective auditors must build relationships, communicate well and know what the right questions are to obtain the relevant information.”

Ms Laulu discussed with KAO staff the challenges impacting workflow and timelines to the FSG audit, and how to manage those challenges with existing resources. 

On her final day in Kiribati, Ms Laulu paid a courtesy visit to senior staff at the Ministry of Finance and Economic Development. Accompanied by Audit Supervisor, Tematang Raimon, Ms Laulu met Accountant General, Toromon Metutera, and Deputy Accountant General, James Ruatu.

Before leaving Ms Laulu assured the Auditor-General that PASAI will continue its support of KAO online and in person where needed near the closing of the FY2022 FSG audit.

PASAI acknowledges the support of the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the Australian Department of Foreign Affairs and Trade (DFAT).

PASAI Programme Director, Susana Laulu (seated in centre) and Auditor General, Eriati Manaima (seated on far right) with staff from the Kiribati Audit Office

Left to right: Deputy Accountant General, James Ruatu; Audit Supervisor, Tematang Raimon; PASAI Programme Director, Susana Laulu; and Accountant General, Toromon Metutera

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Contact information:

Susana Laulu, Programme Director PASAI
E: Susana.Laulu@pasai.org P: +64 9 304 1275

PDF version of this media release

SAI Chuuk releases audit report on the Department of Health Services

4 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-01 entitled ‘Chuuk State Department of Health Services: Issues Found on Documentation, Inventory System, and Warehousing’. This audit covered the period beginning fiscal year 2020 to fiscal year 2022. It was conducted in accordance with the Generally Accepted Government Auditing Standards issued by the U.S. Comptroller General.

The objective of this audit was to determine whether the Chuuk State Department of Health Services (DHS) is effectively ensuring that financial transactions are compliant with applicable laws and regulations of Chuuk State, focusing on the proper filing and complete documentation of obligation and appropriate payment of government housing allowance. In addition, the second objective was to determine the efficiency and effectiveness of internal controls on pharmaceutical products, medical supplies. and donated items; focusing on inventory system and warehousing management.

The OCPA concluded the DHS did not comply with the Chuuk State Financial Regulation regarding the proper documentation and filing. Important documents were misplaced and untraceable. The OCPA found the documentation of $354,210.73 worth of payments was missing on file: $648,132 worth of payments was lacking supporting documents and, this cannot be substantiated. However, $356,480.27 of this amount represents document for formulation of pharmaceuticals which was explained as filed with the Division of Planning and Statistics. In addition, a total of $118,200 was overspent in housing allowance for three years caused by variance in rate and conflict of interest.

The OCPA also concluded that the DHS poorly managed its inventory and warehousing. The DHS was incurring a substantial amount estimated at $1.5million yearly for procurement of pharmaceutical products and medical supplies. And an estimated of about $1 million is left in the inventory. However, the pharmaceutical products were manually tracked using Microsoft Excel which is not updated timely, and there was no system for medical supplies and donated items. As a result, an estimated purchased of medical supplies worth of $432,514.32 was not properly accounted for. In addition, the OCPA noted that the inventory was stored in four different, fully packed warehouses.

The OCPA recommended proper filing of documentation and an updated policy on housing allowance. Regarding the inventory, the OCPA recommended for investment on new inventory system and bigger warehouse.

Press Release 2023-01