The Tribune

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

AN audit of the revenue and expenditure accounts of the Registrar General’s Department has revealed nearly $400,000 worth of dishonoured cheques, outstanding utility bills and a register cluttered with hundreds of delinquent IBCs (international business companies).

The audit report also pointed to a hefty overtime bill of $162,305.55 for the period of April 2015 to July 2016, which was paid to staff who worked beyond the 40-hour week to process payments, letters of good standing, preparation for the e-service launch, and update files.

The audit recommended that management seriously consider whether it was feasible to continue footing the overtime bill or introduce a shift system to accommodate excess workload.

Inadequate staffing and storage space to secure files featured high among concerns itemised in the report, which stressed that every effort be made to properly secure highly sensitive records, company files, deeds and other records.

The audit examination was conducted for the period of July 1, 2014, and June 30, 2016 by interviews, observations and examinations of the accounting documents.

The report stated that during the examination period, dishonoured cheques totaled $69,993; however, a listing provided by the department indicated an accumulated total of $392,976.49 up to July 31,2016.

It was recommended that several measures be taken to mitigate or minimise the number of dishonoured cheques: instruct cashiers to scrutinise cheques for common oversights; obtain and secure an identifying departmental stamp and stamp each cheque for deposit; accept certified cheques or cash only when settling dishonoured cheques, and once settled, to forward information expeditiously so that entries can be cleared.

An outstanding electricity bill for September 2016 amounted to $13,457.98, according to the report, which also outlined outstanding fees owed to Dell security of $13,975. The report noted that the inability to maintain current vendor accounts could lead to overpayment or incorrect payments.

As for the delinquent IBCs, there were 2,228 delinquent accounts with outstanding company fees. A ten per cent fee is levied on delinquent accounts during the months of April to October; however, a 50 per cent fee is charged from November to December.

At the time of review, the report stated that it could not be determined the amount of monies owed by these companies, and it was recommended that a section be formed to focus on delinquent accounts.

Staffing shortages were said to be the reason for the accumulation of $12,150 in stale-dated cheques, according to the report, which noted the untimely processing of company registration fee payments.

“Highly sensitive records were not adequately stored, due to shortage of storage space,” the report read.

“Companies’ files were stored in cabinets that were not fire proof.”

It continued: “Deeds and other records are stored on top of filing cabinets or wherever space can be found. The deeds contained irreplaceable records going for decades.”

The audit report was submitted to the Attorney General’s Office in July, and requested a response on whether action had been taken or proposed on each of its recommendations by September 11.

It was not clear up to press time whether a response was given.

While a large number of companies routinely left cheques with the cashier to be processed, the audit report noted that a cheque register was not consistently maintained and cheques were kept in an unlocked filing cabinet.

It further suggested management implement such a register to record the collection of company cheques, and that a safe or fire-proof filing cabinet be obtained to secure the cheques.

As for payroll, it was recommended that management initiate efforts to recover funds after it was revealed a terminated employee was overpaid by $503.26.

It also noted that several employees have been allowed to exceed the 75 per cent limit on salary deductions. The report underscored that net take home pay for employees should not fall below 25 per cent of gross salary unless approval was obtained by the relevant authority.

The report raised concerns over the storage of birth certificates and marriage licences, recommending that all documents be copied onto a hard drive and duplicates secured in a fire proof cabinet.

There were 4,313 new births registered in the 2014/2015 period, and 4,022 new births during the 2015/2016 period.

As for marriages, there were 3,890 new licenses in 2014/2015, and 3,663 the following year period.

However, the report noted that internal controls have been strengthened: “the official Registrar General seals which authenticates documents are properly secured; employees change their passwords every three months; and voids are being approved by the accounts supervisor.”

It further noted that controls had been implemented to mitigate fraudulent activities as it related to search cards.

“Birth verification letters are now requested through the Department of Public Health for Family Island clients,” the report read.

“Clients in Nassau can ascertain search cards once they collect a confirmation letter to confirm that the child was born at a medical facility in The Bahamas, accompanied with one other supporting document.”