Premier and Minister of Finance, Hon Andrew A. Fahie (R1) has revealed that the Ministry of Finance is unable to account for the territory’s uncollected revenues brought forward from previous years as a result of an error with the current accounting software at his Ministry. Photo: VINO/File

Noting that the issue was inherited from previous Premier and Minister of Finance, Dr D. Orlando Smith, the revelations came to the fore following persistent questioning from the Second District Representative, Hon Melvin M. Turnbull for the Premier to provide details of the Territory’s books to the house. Photo: VINO/File

Second District HoA Representative, Hon Melvin M. Turnbul. Photo: VINO/File

Noting that the issue was inherited from previous Premier and Minister of Finance, Dr D Orlando Smith, the revelations came to fore following persistent questioning from the Second District Representative, Hon Melvin M. Turnbull for the Premier to provide details of the territory’s books to the house.

Dr Smith couldn’t answer

Speaking at the Sixth Sitting of First Session of The Fourth House of Assembly on July 31, 2019, Hon Turnbull had asked, “What is the detailed financial position of the Territory as at 31st June, 2019: (a.) Balance in Consolidated Fund?; (b.) Balance in the Reserve Fund?”

Further, in revealing that the question had been asked for the third time—the latest being May 17, 2019—the member asked for, “Total Uncollected Revenue brought forward from 31st December, 2015 to 31st December, 2018 and the amounts that have been collected from the previous year,” including balance brought forward from each year spanning 2014 to 2019.

According to Premier Fahie, “I’ve been in the Opposition side with the Honourable Member from the time he was asking this and I know that he could not get an answer from then and in May when he asked it, we didn’t get much of an answer then,” he said in noting that he demanded that the Ministry provide answers to the House.

The Premier revealed that the Consolidated Fund as of June 30, 2019, was $96,562,009 and the balance in the Reserve Fund as of June 30, 2019, including dormant funds, is $81,064,100.

However, when it came to the question of total uncollected revenue brought forward from December 31, 2015, to December 31, 2018, Premier Fahie was unable to provide that information.

Software Failure

In his answer to Hon Turnbull, the Leader of Government Business in acknowledging that the territory ought to have kept an accurate record of their account receivables said, “It is all agreed that proper financing and management dictated that we should try to keep these account receivables accounts at manageable controllable levels.”  

“Unfortunately, however, I was made aware that the current software system failed to capture and track arrears of revenues, Mr Speaker, when any of these outstanding revenues are paid, they are comingled with the current year’s revenues,” he said.

Premier Fahie continued, “Member, there is a problem with the system, that's the reason why you couldn’t get your answer in a year and change and I’ve directed them to fix this system because it cannot continue that way.”

Further, the Premier said he was only made aware of the issue after pressuring staff at the Ministry of Finance to provide an answer and noted that the current accounting software is now going through an upgrade process.

‘Predicament’ – Hon Turnbull

According to Hon Turnbull, the issue is a predicament, “As a country not knowing your accounts receivable, the money that is due to the government… it is a sad state for this country to be in,” he said. 

The Premier noted that while the information is available, the issue persisted since under the National Democratic Party (NDP) government and it will take some ‘old-time methods’ of accounting to capture the data and get the full picture.