“Providing assurance to parliament on the accountability and performance of the public sector”
Role of The Auditor-General
The Auditor-General has the responsibility to make sure that
- The methods by which public money is handled, whether revenue or expenditure, are properly accounted for.
- All finances are used lawfully and for the purposes set out in the appropriation Act.
- Government property or assets are properly looked after and accounted for.
The Audit Office delivers its value through a range of products. It is anticipated that this range of products will become wider and more sophisticated over time as the demands of organisations develop and as audit skills develop. However, this will be dependent on the provision of increased staffing levels and resources for the Office. The traditional product range has at its core an Audit Opinion, based on verifiable evidence, free from bias. This is currently provided together with basic audit compliance and investigative products.
The Skills Transfer Products will be delivered as part of the Interim audit process when the systems underpinning the accounts are subject to review for their effectiveness and for the degree with which they are being complied.
Over the next few years, it is intended to develop both the range and quality of the audit products.
What is Auditing
Auditing can be described as a systematic process of objectively obtaining, evaluating and analyzing evidences to ensure that financial statements provide a fair and accurate representation of the records and transactions in the entity.
Types of Audits
There are a number of types of audits carried out by auditors, some of the major ones are listed below :
- Financial Audits
- Compliance Audits
- Performance Audits (also called Operation Audit)
- Information System Audits
The office is currently involved only Financial and Compliance audits.
Financial audits involves evaluating and analyzing an entity’s financial reports and financial processes to provide assurances on the entities financial statement to interested parties.
A compliance audit is focused more on reviewing and assessing an entities adherence to regulatory requirements.
Investigations are audits that are undertaken on specific topics that have a public interest. These investigations can be instigated by any person and the decision to proceed is entirely at the discretion of the Auditor-General.
Audits Carried out by OAG
Section 25 (5) of the Constitution states that the function of the Auditor-General shall be to audit and report to Parliament and the Government on the Public accounts of Vanuatu.
With the current shortage of staff, AG is unable to audit individual ministries and departments within the Vanuatu Government. The audits that have been carried out by the office thus far are base on the Vanuatu Whole of Government Consolidated accounts. OAG also conduct audits on donor funded projects under the discretion of the AG.
List of audits that are conducted by OAG and tabled in Parliament can be viewed under the Publication page.
Section 24 (1) of the Expenditure Review & Audit Act allows for the Auditor-General to appoint a minimum of 20% of its audit work to external audit service providers. The Auditor General must agree a reasonable audit fee to be charged for these services.
Prior to 2011, many of the donor audits were being led by the donors. Vanuatu OAG wrote to all DG’s and donors advising that all audits would now be tendered through the OAG. In 2012, GFG gave the OAG a grant to cover audit fees for audits we contract out. Contracted audits could be any audit the AG decided was a priority and could include donor project audits.
Below is a list of State Owned Enterprises and their Auditors;
|Name of Government Business Entreprise||Current Auditor|
|Corporatized Commercial State Own Entreprises|
|1||Air Vanuatu Limited||Law Partners Chartered Accountants and Business Advisers|
|2||Airports Vanuatu Limited||iCOUNT Accountants + Business Consultants|
|3||Vanuatu Post Limited||iCOUNT Accountants + Business Consultants|
|4||National Bank of Vanuatu||Law Partners Chartered Accountants and Business Advisers|
|5||Vanuatu Agriculture Development Bank||Business Management Services|
|6||National Housing Corporation||Barrett & Partners Chartered Accountants and Business Advisers|
|7||Vanuatu Broadcasting Television Corporation||iCOUNT Accountants + Business Consultants|
|8||Vanuatu Tourism Office||Barrett & Partners Chartered Accountants and Business Advisers|
|9||Metenesel Estates Limited||TBA|
|10||Vanuatu Livestock Development||TBA|
|11||Reserve Bank of Vanuatu||PriceWaterHouseCoopers Chartered Accountants|
|12||Vanuatu Financial Services Commission||Vanuatu National Audit Office|
|13||Utility Regulatory Authority||Law Partners Chartered Accountants and Business Advisers|
|14||Vanuatu Investment Promotion Authority||Law Partners Chartered Accountants and Business Advisers|
|15||Vanuatu Telecommunication and Radiocommunication Regulatory||Barrett & Partners Chartered Accountants and Business Advisers|
|Non-Corporatized State Own Entreprise|
|16||Asset Management Unit||TBA|
|17||Vanuatu Commodities Marketing Board||TBA|
|Mutual Financial Institutions|
|18||Vanuatu National Provident Fund||Barrett & Partners Chartered Accountants and Business Advisers|
|19||Ifira Wharf & Stevedoring Limited||Barrett & Partners Chartered Accountants and Business Advisers|
|21||Northern Island Stevedoring Limited||TBA|
|22||Vanuatu Abbattoir||James Kluck & Associates|
Below is another list of some of the Project audits that have been tendered and their auditors;
|Audit Name||Period Audited||Auditor|
|VNPF Investigative Audit||2008 -2012||Ernst & Young|
|MFEM Project audits (5) under GFG Grant agreement||April 2008 to Oct 2012||Barrett & Partners|
|MLGMMR Project audits (3) under GFG grand agreement||May 2009 to 30 Oct 2012||Barrett & Partners|
|Management of donor funds expended by Ministry of Health||2011/2012||AJC|
|Management Letter of the audit of:|
- MWP R7 TB
- MWP R7 HIV
- MWP MRCC
|Project audit on UNFPA Funds disbursed to MOH & VNSO||2008 - 2012||Barrett & Partners|
|Project audit on GFG, TMDF & Govt funds disbursed through Ministry of Tourism||2009 - 2012||Barrett & Partners|
|Finance Audit of URA||2012||AJC|
|Vanuatu Transport Sector Support Program audit disbursed through Ministry of Infrastructure & Public Utilities||Feb 2009 to June 2013||Barrett & Partners|
|Vanuatu Inter Island Shipping Support Project||31 Dec 2013, 2014,2015,2016 & 2017||Law Partners|
|Global Fund Grant Programs Managed by the Vanuatu Country Cordinating Mechanism||31 Dec 2012||iCounts|
|Port Vila Urban Development Project||31 Dec 2013,2014,2015,2016 & 2017||Law Partners|
|Mainstreaming Disaster Risk Reduction||31 Dec 2013,2014,2015||Barrett & Partners|
|Increasing Resilience to Climate Change & Natural Hazards||31 Dec 2013, 204,2015,2016,2017 & 2018||Barrett & Partners|
|Financial Audit of URA||31 DeC 2013,2014 2015||Law Partners|
|VBTC||31 Dec 2012 & 2013||iCounts|
|Vanuatu Transport Sector Support Program audit||2014||Barrett & Partners|
|Grant: Enhancing Integrated Framework Trust Fund||31 Dec 2014, 2015, 2016 & Possible extension to 2017||iCounts|
|Vanuatu Transport Sector Support Program audit||2015||Barrett & Partners|
|Vanuatu Institute of Teacher's Education||31 Dec 2012,2013,2014||Law Partners|
|Vanuatu National Cultural Council (Vanuatu Kaljorel Senta)||31 Dec 2004 - 2014||iCount|
|Ministry of Health: Australian Investment Program Direct Funding Agreement GIP 11H861||31 Dec June 2015||Law Partners|
|Global Partnership Out-put Based Aid Project||31 Dec 2015 - 2018||Law Partners|
|Vanuatu Rural Electrification Project||31 Dec 2015 - 2018||Law Partners|