Emphasis of Matters
I draw attention to the following matters that are ancillary to my responsibilities in the audit of the Public Accounts.
Government National Social Security Insurance Trust (NASSIT) Liability
Included in Note 11 to the Public Accounts (Other Creditors and Accrued Charges) is a liability owed to NASSIT of Le1,119 Million as at 31st December 2010. This amount is unchanged from 31st December 2009. The Government of Sierra Leone has accepted that this liability is due but has made no repayments during 2010. NASSIT is responsible for making pension payments and managing the funds to be able to do so. It is important that Government endeavour to pay money owed to NASSIT as early as possible to ensure that adequate funds are available for NASSIT to meet future pension payments.
Miscellaneous Debtors
Note 7 to the Public Accounts discloses a total balance for Miscellaneous Debtors of Le211,591 Million as at 31st December 2010.
Le194,572 Million of this debt was also due as at 31st December 2009. No repayments on these debts were made to Government during 2010 and in one case, Loan to Sierra Rutile, the size of the debt actually increased. Government should ensure that all possible measures are taken to recover these debts. If no repayment is likely then these debts can no longer be considered as Government assets and should be written off and removed from the Public Accounts in 2011.
Lara Taylor-Pearce
AUDITOR GENERAL
4.2 Financial Statements of the Government of Sierra Leone
| STATEMENT OF THE FINANCIAL ASSETS AND LIABILITIES OF THE CONSOLIDATED FUND AS AT 31ST DECEMBER 2010 | |||||
| In millions of Leones | Notes | 2010 | 2009 | ||
| CONSOLIDATED FUND ASSETS | |||||
| CASH AND BANK BALANCES | |||||
| Cash and Bank Balances with the Central Bank | 81,585 | 327,920 | |||
| Cash and Bank Balances with Commercial Banks | 127,985 | 110,112 | |||
| Cash in hand with PIUs | 22 | - | |||
| 209,592 | 438,032 | ||||
| LOANS AND ADVANCES | |||||
| Staff Loans and Advances | 1,398 | 1,154 | |||
| Debtors – Privatisation | 3,106 | 3,488 | |||
| Miscellaneous Debtors | 211,591 | 194,572 | |||
| 216,095 | 199,214 | ||||
| INVESTMENTS | |||||
| Multilateral Agencies | 54,654 | 50,886 | |||
| Public Enterprises | 127,234 | 99,374 | |||
| 181,888 | 150,260 | ||||
| Total Consolidated Fund Assets | 607,575 | 787,507 | |||
| CONSOLIDATED FUND LIABILITIES | |||||
| SHORT TERM | |||||
| Domestic Suppliers Arrears | 80,276 | 99,230 | |||
| Other Creditors and Accrued Charges | 3,752 | 1,119 | |||
| Domestic Public Debt | 782,898 | 583,320 | |||
| Special Marketable Securities | 210,000 | 132,500 | |||
| Deferred Interest | 53,592 | 38,662 | |||
| 1,130,517 | 854,831 | ||||
| LONG TERM | |||
| Non-Marketable, Non-Interest Bearing Securities held by the Bank of Sierra Leone | 81,803 | 243,733 | |
| Creditors | 4,768 | - | |
| 5 Year Bond | 280,000 | 180,000 | |
| External Public Debt | 2,588,008 | 1,909,856 | |
| 2,954,579 | 2,333,589 | ||
| Total Consolidated Fund Liabilities | 4,085,096 | 3,188,420 | |
| NET CONSOLIDATED FUND LIABILITIES | 3,477,521 | 2,400,912 | |
| Attributable to | |||
| GENERAL REVENUE BALANCE | |||
| Balance at beginning of year | 2,400,912 | 2,003,388 | |
| Prior Year Adjustments | 41,785 | (144,524) | |
| Restated Balance | 2,442,697 | 1,858,864 | |
| Special Funds | 203,774 | 51,555 | |
| Foreign Exchange Loss written off | 287,113 | 296,957 | |
| Increase in Government Share of Equity- Public Enterprises | (27,860) | - | |
| Loss on capitalisation of NNIB | 15,570 | - | |
| Loan Disbursement to Projects | 372,622 | 238,384 | |
| Net (Surplus)/Deficit for the period | 183,605 | (44,848) | |
| Balance at end of year | 3,477,521 | 2,400,912 | |
Kebbe A. Kouroma
Accountant General
31
st March 2011| STATEMENT OF FINANCIAL PERFORMANCE | ||||||||
| For the year ended 31st December 2010 | ||||||||
| In millions of Leones | ||||||||
| 2010 | 2009 | |||||||
| Notes | Original Budget | Actual | Variance | Actual | ||||
| OPERATING REVENUE | ||||||||
| Domestic Revenue Collection | ||||||||
| Income Tax | 240,511 | 303,026 | (62,515) | 212,010 | ||||
| Customs and Excise | 477,689 | 321,715 | 155,974 | 418,190 | ||||
| Goods & Services Tax | - | 246,362 | (246,362) | - | ||||
| Mineral Resources | 20,269 | 24,190 | (3,921) | 20,162 | ||||
| Fisheries | 6,572 | 12,298 | (5,726) | 8,742 | ||||
| Other Departments | 41,784 | 49,139 | (7,355) | 52,309 | ||||
| Road User Charges | 57,285 | 53,077 | 4,208 | 48,621 | ||||
| Total Domestic Revenue | 844,110 | 1,009,806 | (165,696) | 760,034 | ||||
| Other Revenue (Direct Grant Budgetary Support) | ||||||||
| HIPC Debt Relief Assistance | 14,850 | 19,145 | (4,295) | 15,893 | ||||
| Other Grants Received | 254,770 | 314,023 | (59,253) | 328,693 | ||||
| MDRI Fund Transfer | - | 204,072 | (204,072) | 58,856 | ||||
| Petroleum Strategic Fund Transfer | - | 580 | (580) | 11,478 | ||||
| Projects and Subvented Agencies | 469,506 | 214,343 | 255,163 | |||||
| Total Other Revenue | 739,126 | 752,163 | (13,037) | 414,920 |
| Total Operating Revenue | 1,583,236 | 1,761,969 | (178,733) | 1,174,954 |
| OPERATING EXPENSES | ||||
| Wages, Salaries and Employee Benefits | 453,263 | 531,661 | (78,398) | 399,585 |
| Non-Salary, Non-Interest Recurrent Expenditure | 501,131 | 631,853 | (130,722) | 497,740 |
| o/w Grants to Educational Institutions | 39,749 | 54,082 | (14,333) | 42,754 |
| Transfers to the Road Fund | 57,285 | 53,077 | 4,208 | 48,621 |
| Transfers to Local Councils | 70,358 | 78,438 | (8,080) | 58,113 |
| Domestic Development Expenditures | 614,472 | 341,533 | 272,939 | 104,349 |
| PIUs and Subvented Agencies | - | 243,940 | (243,940) | - |
| Total Operating Expenses | 1,568,866 | 1,748,987 | (180,121) | 1,001,673 |
| Surplus/(Deficit) from Operating Activities | 14,370 | 12,982 | 1,388 | 173,281 |
| STATEMENT OF FINANCIAL PERFORMANCE | ||||
| For the year ended 31st December 2010 | ||||
| In millions of Leones | ||||
| 2010 | |||||||
| Original Budget | Actual | Variance | Actual | ||||
| Finance Costs | (137,579) | (159,918) | (22,339) | (102,089) | |||
| Domestic Interest | (120,148) | (141,309) | (21,161) | (88,803) | |||
| Foreign Interest | (17,431) | (18,403) | (972) | (13,285) | |||
| PIUs and Subvented | - | (207) | (207) | - | |||
| Arrears Payments | (33,848) | (36,669) | (2,821) | (26,344) | |||
| Wages Arrears | (1,335) | (5,744) | (4,409) | (5,754) | |||
| Parastatal Arrears | (1,200) | (28,516) | (27,316) | (600) | |||
| Domestic Arrears | (31,313) | (2,410) | 28,903 | (19,991) | |||
| Total Non-Operating Revenue/(Expenses) | (171,427) | (196,587) | (25,160) | (128,433) | |||
| Net Surplus/(Deficit) for the period | (157,057) | (183,605) | 26,548 | 44,848 | |||
| CASH FLOW STATEMENT | |||
| during the financial year ended 31st December 2010 | |||
| In millions of Leones | |||
| 2010 | 2009 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Surplus/(Deficit) from ordinary activities | (183,605) | 44,848 | |
| Non-cash movements | |||
| Decrease/(increase) in Miscellaneous Debtors | - | (2,164) | |
| Increase/(decrease) in Domestic Suppliers Arrears | (30,032) | (24,199) | |
| Increase/(decrease) in Other Creditors and Accrued Charges | 2,633 | - | |
| Net Movement – Subvented Agencies & Project PIUs | - | (238,384) | |
| Net cash flows from operating activities | (211,006) | (219,899) | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Net Increase in staff loans and advances | (232) | (396) | |
| Privatization Receipts | 611 | 294 | |
| Net cash flows from investing activities | 379 | (102) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from external borrowings | (372,622) | - | |
| Repayment of external borrowings | 384,599 | 245,900 | |
| Net increase in domestic borrowing | 199,579 | 14,155 | |
| Prior year adjustment | (29,813) | (842) | |
| PIUs and Subvented proceeds from borrowing | 4,218 | ||
| MDRI Relief Income and Strategic Petroleum Fund | (203,774) | (51,555) | |
| Net cash flows from financing activities | (17,813) | 207,658 | |
| Net increase/(decrease) in cash and cash equivalents | (228,440) | (12,343) | |||
| Cash and cash equivalents at beginning of the year | 438,032 | 450,375 | |||
| Cash and cash equivalents at end of the year | 209,592 | 438,032 | |||
| Cash and cash equivalents | |||||
| as at 31st December 2009 | |||||
| In millions of Leones | |||||
| 2010 | 2009 | Change | |||
| Cash and Balances with the Central Bank | 81,585 | 327,920 | (246,335) | ||
| Cash and Balances with Commercial Banks | 127,985 | 110,112 | 17,872 | ||
| Cash in hand with PIUs | 22 | ||||
| 209,592 | 438,032 | (228,463) | |||
SOME COMMENTS ON THE PUBLIC ACCOUNTS - AUDIT REPORT 2010
