Fund: AG finds faults
By Chandani Kirinde
In his report on the accounts of the President's
Fund for the year 2003, submitted to Parliament on Friday, the Auditor
General has noted several accounting deficiencies.
to the accounts presented for audit, the operations of the Fund
during the year under review discloses a deficit of Rs. 586,574,229
as against the surplus of Rs. 329,255,939 for the preceding year
thus disclosing a decrease of Rs. 915,830,168.
Report also noted that the Board of Governors of the Fund who are
vested with the administration, management and control of it under
the President's Fund Act No. 7 of 1978, had not held any meeting
since July 18, 2001, up to the date of audit on March 16, 2004,
to decide on the utilisation and investment of the moneys of the
to the Income and Expenditure Account of the Fund for the year under
review, a sum of Rs. 156,197,957 had been shown as receipts from
the Development Lotteries Board (DLB) but according to information
received by the audit the correct amount was Rs. 631, 926,664, the
DLB had purchased debentures for a sum of Rs. 6,000,000 receivable
from the Board for the year 2001 and had transferred those debentures
to the Fund during the year. However that amount has been brought
to account as a receipt for the current year, it said.
another instance flood relief aid of 2000 pounds received in July,
2003 and a sum of Rs. 350,000 paid as scholarship aid had not been
brought to account and in another case even though the parents of
a patient had stated that the medical aid of Rs. 500, 000 paid on
September 23, 2003 was not necessary as the patient had died, that
amount has been brought to account as a donation.
sum of Rs. 1,089,989 refunded out of a donation made during the
year 2002 had been credited on an expenditure account during 2003
thus understating the expenditure for the year by that amount.
for doubtful debts had not been made even during 2003 in respect
of several loans remaining non-performing over a number of years.
They include Rs. 195,000,000 borrowed in 1993 by the National Housing
Development Authority, Rs. 50,000 borrowed in the same year by the
Welfare Society of the Presidential Secretariat, Rs. 3,000,000 also
in 1993 by the National Film Corporation and Rs. 1,145,000 in 1995
by the Sri Lanka Red Cross Society.
sum of Rs. 150,000,000 paid during the year under review to the
Mahapola Higher Education Scholarship Trust Fund has not been shown
as a payment in the financial statement. Additionally action had
not been taken during the year under review for the settlement of
the balance Rs 1,758,703 payable to the Mahapola Fund since 1993,
the Report said.
Auditor General said special attention is needed in respect of utilisation
of funds, accounting, investments, receivables and receipts from
the Development Lotteries Board.
balance of the President's Fund as at December 31, 2003 stood at
Rs. 2,313,771,588 with withdrawals in that year standing at Rs.
543,898,796 and investments at Rs. 439, 848,195.