The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

Kvirgil@tribunemedia.net

THE operations of Urban Renewal’s Band were identified as an “extreme risk” to the government that needed immediate attention and the implementation of a response procedure after auditors were unable to ascertain the programme’s total expenditure.

According to the Auditor General’s report, which covered July 1, 2012, to September 30, 2014, auditors were not provided with the supporting documentation of payouts for several elements of the band. It was also noted that an audit team, on numerous occasions, requested an interview with the Band Director but were not accommodated.

The Urban Renewal Band has a membership of 600 youth, which are chaperoned by Royal Bahamas Police Force officers.

The report read: “We were unable to ascertain the total expenses incurred for band-related expenses as we were not provided with all the supporting documentation of payment. We recommend that all expenses related to band-related expenditure be supplied for audit scrutiny.”

Auditors were only provided with documentation to support $130,837.07 in expenses for a range of activities including overseas travel, funds to band members and the purchase of instruments. They were seeking specific information to substantiate the band’s activities, including the total cost of instruments acquired from the commencement of Urban Renewal in 2012; donations received in cash from private citizens and the corporate community; and bank reconciliations of funds received from band concerts.

In addition, the report said there was no clear indication of a schedule of band appearances for private and national events along with the total spent for band uniforms and accessories.

A $45,000 invoice for uniforms and accessories was provided to auditors and with proof that a 50 per cent deposit was paid. However, auditors said a balance of $22,500 remained.

This comes after Auditor General Terrence Bastian, in a report of which The Tribune has obtained a copy, categorised the Urban Renewal 2.0 plan as having weak controls that left the door open for there to be abuses of government funds.

As a result of the audit into Urban Renewal’s accounting procedures and internal controls, several deficiencies came to light.

Among the issues the auditor reported that contractors cleared down overgrown lots without the prior approval of the Urban Renewal Commission or submission to the government’s Tender Board.

According to the report, contractors were paid more than $400,000 from September 2013 to October 2014 to clear overgrown lots. “In some instances contractors indicated that their Member of Parliament or a senior official in the Ministry of National Security authorised the works.”

The report notes that this is an “extreme risk” warranting immediate attention and implementation of a response procedure.

In its recommendations, the auditor said this “deficiency” in Urban Renewal’s internal controls, due to the fact that there are no documented procedures for lot clearance, “can lead to abuse of government funds.”

Other weaknesses included a finding during the audit that $66,000 worth of grants were issued by the Urban Renewal Foundation to seven organisations last year to assist with projects. However, these recipients did not account for the funds they received.

The largest single grant, $30,000, was given to one group in May 2014. Another group received $10,000 in April 2014.

The report recommends that Urban Renewal ensure that grant recipients comply with the requirements of accounting for the money they receive.