Report On The Implementation of Recommendations From Selected Government Related Entities

REPORT ON THE IMPLEMENTATION OF
RECOMMENDATIONS FROM SELECTED

GOVERNMENT-RELATED ENTITIES
Image credit: NASA/METI/AIST/Japan Space
Systems, and U.S./Japan ASTER Science Team
JUNE 2023

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Office of the Auditor General

Reid Hall, Penthouse
3 Reid Street
Hamilton HM 11, Bermuda

Tel: (441) 296-3148
Fax: (441) 295-3849
Email: oag@oagbermuda.bm
Website: www.oagbermuda.bm

Speaker of the House of Assembly
Sessions House
21 Parliament Street
Hamilton HM 12

Honourable Speaker:

In accordance with Section 101(3) of the Bermuda Constitution Order 1968 and Section 10 of the
Audit Act 1990, I have the honour to submit herewith my Report on the Status of the Implementation
of Recommendations from Selected Government‐related Entities.

Respectfully submitted

Heather Thomas, CPA, CFE, CGMA
Auditor General

Hamilton, Bermuda
June 2023

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BACKGROUND ON THE OFFICE OF THE AUDITOR GENERAL

The Auditor General and her staff (the ‘Office’) serve as the Legislative Auditor for the
Government of Bermuda (the “Government”) under the Audit Act 1990.
To fulfill its legislative duties, the Office must:
Attest to the fairness of the financial statement presentation through its

examination and rendering of its independent audit opinion,
Conduct its financial statement audit work in compliance with auditing

and accounting standards generally accepted in Bermuda and Canada, and
Examine whether entities are compliant with applicable laws, regulations,

and governmental accounting and financial reporting standards.
Figure 1 Main functions of the office
The Office has audit responsibility for 55 Government–controlled organizations & other entities,
Public Funds, and Parish Councils – see Office of the Auditor General - Bermuda
(www.oagbermuda.bm). The Office support Parliament in holding Government to account and
providing practical recommendations that lead to better outcomes that promote improvement in
financial administration and helps to improve the availability of resources for public services. We
are accountable to the following stakeholders (see Figure 2).
House of
Assembly
Audit
Committees The Public
Who We are
Accountable
to
Minstries Public
and Accounts
Departments Committee
Figure 2 Who the Office of the Auditor General are accountable to
I

BACKGROUND ON A FINANCIAL STATEMENT AUDIT

In conducting a financial statement audit, the overall objective is to obtain reasonable assurance
about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial
statements are prepared, in all material respects, in accordance with an applicable financial
reporting framework.
The audit process (see Figure 3):
Audit
Risk
Planning Strategy and Fieldwork Reporting
Assessment
Plan
Figure 3 Activities in the audit process
Our financial statement audit work:

 adds credibility to the Government’s financial reporting by providing assurance that financial
statements are presented fairly and accurately, and
 promotes improvement in the financial administration by providing guidance in the form of
recommendations, when implemented, will strengthen the management and conduct of
financial activities of the Government or entities related to the Government.
Financial statement audits include recommendations that entities are expected to implement or
otherwise resolve, generally within a year.
The benefit of the audit work is not in the recommendations made, but the effective implementation
of the recommendations.
As the watchdog of Government spending, the primary responsibility of the Office is to assist the
Parliament in holding the Government to account for how it manages and utilizes public assets and
safeguards the scarce resources at its disposal.
II

Why We Did This Report

Our audit report package includes recommendations to address a risk or close a gap or deficiency
identified through the audit.
Following up on previous audit recommendations closes the loop on our reports, and is a critical
accountability step. Recommendations are intended to work as a guide to the actions needed to
address the matters in the findings. It is the responsibility of the respective ministries, departments,
or quasi-autonomous non-government organizations to decide what actions to take for closing the
deficiency or gap identified by the audit and to follow through on their commitments, as public
stewards.
This report contains a compilation of management self-assessment questionnaires that were sent
out to twenty (20) entities (Table 1) whose last audit was in 2020 or earlier and who are not
scheduled for an audit in the fiscal year 2023/24. Of the twenty (20) entities that received the
questionnaire - there are six (6) entities listed under Appendix III, whose financial statement
audits are in progress. Although we have read the responses and in some cases discussed responses
with the respective authors, these are management’s representations. We offer no assurance
concerning their fairness, completeness or accuracy.
Quite a few of the entities have reported that they have fully implemented our recommendations.
Most of the fully implemented recommendations appear to be satisfactory and will likely result in
the recommendations being fully remediated. In a few instances, alternative approaches were
adopted which is more than fair due to the passage of time or change in the entity environment and
it no longer makes sense to implement the recommendations as originally presented. There are a
few recommendations that were not implemented.
Those charged with governance of the Sandys Secondary Middle School Capitation Grant Account
did not provide management self-assessments by the specified dates.
The entities included in this report purported to hold $2.4 billion of assets entrusted to them (which
can be in the form of cash, property and equipment, rights to collect cash, or rights to receive
benefit or service in the future) and $0.2 billion in liabilities or debts, or obligations owed, and
cover audited financial statement accounts for years ended 2012 to 2019, with different types of
audit opinions (see Appendix I and II). There were a total of 126 recommendations (see Table 1).
I offer my thanks to all that provided updates timely to our Office and all those responsible for
implementing the recommendations.
I invite you to provide feedback regarding this report or any other areas of work via email to
oagbermuda@oagbermuda.bm.
Heather Thomas
Auditor General
III

You may want to ask the following questions:

1. For those recommendations with “no action taken,” why no action has been taken to date?
2. When will the accounts in arrears be presented to the Office of the Auditor General for audit?
3. What are the consequences to entities entrusted with public funds and resources with
financial statement audits in arrears?
IV

Summary of the Status of the Implementation of Recommendations from
selected Entities
TABLE OF CONTENTS
Summary Table .......................................................................................................................................... 1
Bermuda Gaming Commission (March 31, 2019) ..................................................................................... 2
Bermuda Economic Development Corporation (March 31, 2018) ............................................................ 6
Berkeley Institute Capitation Grant Account (The) (March 31, 2014) .................................................... 11
Bermuda Educators Council (March 31, 2014) ....................................................................................... 14
Board of Trustees of the Golf Courses (March 31, 2016)........................................................................ 15
CedarBridge Academy (March 31, 2016) ................................................................................................ 18
Confiscated Assets Fund (March 31, 2010) ............................................................................................. 20
Contributory Pension Fund (March 31, 2012) ......................................................................................... 21
FutureCare Fund/Health Insurance Fund/Mutual Re-insurance Fund (March 31, 2017) ........................ 22
Government Borrowing Sinking Fund (March 31, 2016) ........................................................................ 26
Government Employees Health Insurance Fund (March 31, 2012) ........................................................ 28
Ministers and Members of the Legislature Pensions Fund (March 31, 2015) ......................................... 29
Pension Commission (December 31, 2018) ............................................................................................. 30
Public Service Superannuation Fund (March 31, 2012) .......................................................................... 32
Sandys Secondary Middle School Capitation Grant Account (March 31, 2015) .................................... 33
Trustees of the National Sports Centre (March 31, 2016) ....................................................................... 36
Warwick Parish Council (March 31, 2014) ............................................................................................. 40
Whitney Institute Middle School Capitation Grant Account (March 31, 2014) ...................................... 44
Appendix I ............................................................................................................................................... 47
Appendix II .............................................................................................................................................. 49
Appendix III ............................................................................................................................................. 50

Table 1
Summary of the Status of the Implementation of Recommendations from selected Entities
Entity Release Audit Number of Fully Partially Alternative No

Opinion Recommen implemented implemented action action
dations taken taken
Bermuda Gaming March 2019 Unqualified 17 9 4 3 1
Commission
Bermuda Economic March 2018 Unqualified 13 5 8 0 0
Development
Corporation
Berkeley Institute March 2014 Unqualified 12 7 2 0 3
Capitation Grant
Account
Bermuda Educators March 2014 Disclaimer 1 0 0 0 1
Council
Board of Trustees of the March 2016 Qualified 6 2 4 0 0
Golf Courses
CedarBridge Academy March 2016 Disclaimer 1 0 1 0 0
Confiscated Assets Fund March 2010 Qualified 3 2 0 0 1
Contributory Pension March 2012 Disclaimer 1 0 1 0 0

Fund
FutureCare Fund March 2017 Unqualified 13 4 7 2 0
Health Insurance Fund Unqualified
Mutual Re-Insurance Qualified
Fund
Government Borrowing March 2016 Qualified 6 0 5 1 0
Sinking Fund
Government Employees March 2012 Disclaimer 1 0 0 0 1
Health Insurance Fund
Ministers and Members March 2015 Unqualified 3 0 0 0 3
of the Legislature
Pensions Fund
Pension Commission December Unqualified 6 2 1 2 1
2018
Public Service March 2012 Disclaimer 1 0 1 0 0
Superannuation Fund
Sandys Secondary March 2015 Qualified 7 0 0 0 7
Middle School
Capitation Grant
Account
Trustees of the National March 2016 Disclaimer 8 3 5 0 0
Sports Centre
Warwick Parish Council March 2014 Disclaimer 12 9 2 1 0
Whitney Institute March 2014 Qualified 15 7 7 1 0
Middle School
Capitation Grant
Account
[Total count] 126 50 48 10 18

06/2023 1
Questionnaire for Management
Please note the definition of status and address the sections with yellow‐shaded header
Bermuda Gaming Commission (formerly Bermuda Casino Gaming Commission)
Audited entity Last audited Audit opinion Assets Liabilities Accumulated Annual Surplus
reporting year Surplus (Deficit) (Deficit)
Bermuda Casino Gaming 2019 Unqualified 326,224.00 ‐3,186,273.00 ‐2,789,652.00 ‐2,150,395.00
Commission
Bermuda Casino Gaming N/A
Commission was established
under the Casino Gaming Act
2014, to maintain and
administer licensing,
supervision and control of
casinos
Status of implementation in Definition
management's opinion
Fully implemented Recommendation was adopted, imbedded in management process, with evidences/audit trail available
Partially implemented Recommendation was partly adopted, imbedded in management process, with evidences/audit trail available
No action taken Recommendation was not adopted, with specific reason
Alternative action taken Recommendation was not adopted, however alternative action was implemented, with evidences/audit trail available
Observation Recommendation Status of implementation Describe actions plan and timing;

in management's opinion actions taken; results; reasons for
status
(a) Dependence on the #1 ‐ Take action to Partially BGC are currently exploring
Government of Bermuda address negative implemented opportunities to grow
amid increasing level of working capital, lack of alternative revenue sources.
indebtedness to independent funding Our current workplan (2023/24)
commercial bank and and sources of revenue evidences our commitment to
increasing level of deficit exploring online gaming and a
(b) Ability to generate national lottery as future
revenue is affected by: alternative revenue sources. In
lack of correspondent addition, we are currently
bank to process casino collect revenues from cruise
proceeds and delays in ship casinos and gaming
drafting of regulations. vendors/suppliers.
Commissioners' over‐ #2 ‐ Comply with its No action taken The employee handbook will be
riding of Employee Employee Handbook updated to allow the Board to
Handbook resulted in amend the terms of
overpayment of redundancy payouts above the
redundancy pay employment act suggested
minimum in extenuating
circumstances.
Non‐compliance with #3 ‐ Comply with the Partially Recent year‐end audits have
the terms of the terms and conditions of implemented not commenced early enough
overdraft facility its overdraft facility in order to allow for the timely
agreement which agreement completion of audited financial
requires provision of statements. This is a joint
audited year‐end observation for BGC and OAG.
financial statements BGC are currently focused on
within 180 days of fiscal bringing our financials up to
year‐end. date.
Delay in preparation and #4 ‐ Perform adequate Fully implemented BGC is now utilizing an
lack of adequate review and timely review of electronic vacation recording
of the accrual for vacation accrual system which facilitates a more
vacation timely and accurate reporting
06/2023 2
status
Lack of management #5 ‐ Implement control Partially This recommendation will be
review for completeness for audit trail on implemented followed with more consistency
on relevant discussions discussions and going forward
and decisions and for decisions made in
sign‐off by appropriate meeting minutes, e.g.,
authority of the minutes signed off meeting
of Commissioners' minutes
meeting
Management did not #6 ‐ Adhere to disclosure Fully implemented Going forward BGC will confirm
keep up with requirements of Public required and new PSAS
requirements of public Sector Accounting standards relevant to the
sector accounting Standards, e.g., long‐ organization during the
standards, resulting in term debt, financial planning meeting stage
non‐compliance of PSAS statement presentation
1201 Financial
Statement Presentation
and PSAS 3230 Long‐
term Debt
No evidence of bank #7 ‐ Perform regular Alternative action We agree that a manual
reconciliations being review of bank taken signature should accompany
reviewed for accuracy reconciliations with sign‐ monthly bank reconciliations.
and completeness by a off This will be implemented for
person independent of the upcoming financial year
the preparer
Required details were #8 ‐ Ensure completion Alternative action Currently payments are entered
missing on the Vendor of its Vendor Payment taken in Clarien by one person and
Payment Audit Form Audit Form properly for approved by separate single
(VPAF) including all transactions person. Likewise payment
signature of person requests cannot be processed
responsible for the without permission of the
entry. relevant line manager
Failure to deliver audited #9 ‐ Comply with the Alternative action BGC provide MOF a workplan
consolidated accounts to terms and conditions of taken annually for their review and
lender (Government of its Facility Agreement approval. This workplan details
Bermuda), within 90 with the Government projects to be undertaken for
days after the end of the year as well as staffing and
financial year; and budget numbers.
monthly management We will provide monthly
accounts, within 30 days management accounts and
after the end of each audited accounts as requested
month as per Section
12.1 of the Facility
Agreement
No evidence that #10 ‐ Perform regular Fully implemented Accrued liabilities are reviewed
accrued liabilities (e.g., review of the propriety
accrued pension liability of recorded accrued
and accrued payroll tax) liabilities
are reviewed on a
regular basis for
appropriate accounting
and financial reporting
06/2023 3
status
Members travel on a #11 ‐ Update travel Fully implemented A travel policy has been
regular basis on BCGC's policy to include travel implemented to address this
business however there expenses incurred by observation
is no travel policy to Members of BCGC
regulate travel expenses
incurred by the
Members
Non‐compliance with #12 ‐ Comply with its Partially The annual workplan has been
legislation, Casino legislation, e.g., section implemented presented to the minister on
Gaming Act 2014 section 18A (2), (3), (5), (6), (8), time but this has not been the
18A workplan and (9), section 26 (1), case for the annual report. This
budget (2), (3), (5), (6), section 8 (2) has been due to the fact that
(8), (9), section 26 (1) for BGC is not up to date with its
submission of annual audits.
report to the Minister
within 6 months after
financial year end,
section 8 (2) to address
written directions from
the Minister
No policy or procedures #13 ‐ Develop and Fully implemented A related party policy has been
for identifying related implement policies and completed
party transactions. procedures to track
related party
transactions for
appropriate disclosures
in the financial
statements
No policies and #14 ‐ Update policies Fully implemented This policy has been updated

procedures for the and procedures to
preparation and review include preparation and
of journal entries review of journal entries
No policies and #15 ‐ Update its tangible Fully implemented This policy has been updated

procedures for capital assets policy to
determining useful lives reflect threshold for
and thresholds for capitalization and
capitalization of tangible guidelines for
capital assets determining useful life
No policies or #16 ‐ Develop and Fully implemented This policy has been updated

procedures for implement policies and
identifying subsequent procedures to track
events subsequent events for
appropriate disclosures
in the financial
statements
06/2023 4
status
BCGC commenced #17 ‐ Provide Fully implemented The Minister approved the
operations on collaborative response regulations
September 1, 2015, on timeline of drafting
however, as of the regulations
December 2018 some
regulations are not yet
finalized.

06/2023 5

Bermuda Economic Development Corporation
Bermuda Economic 2018 Unqualified 1,831,354.00 ‐259,255.00 1,572,099.00 140,263.00
Development Corporation
Bermuda Economic N/A
Development Corporation was
incorporated under the
Bermuda Economic
Development Corporation Act
1980 to (a) grant loans and give
other forms of financial
assistance, including loan
guarantees to assist residents
in establishing, carrying on, or
expanding small businesses,
mid‐sized businesses and
entities within economic
empowerment zones; (b)
provide technical advice; (c)
operate and manage markets
and economic empowerment
zones


Observation Recommendation Status of Describe actions plan and timing; actions
implementation in taken; results; reasons for status
(a) 2017 comparative #1 ‐ Perform quality Partially Management agrees with the
year’s balances in the review of the implemented recommendation.
financial statements preparation of the
differs with prior financial statements The Finance Director will meet with
year’s audited and notes the Board’s Finance Sub‐committee
balances. to agree that they can provide a
(b) Various account review of the draft statements before
balances do not being submitted to the Auditor
reflect the updated General.
balance.
(c) Account titles in We look to incorporate this process
the financial for the next fiscal year’s (2019/2020)
statements are not accounts to be audited.
updated.
(d) No statement of
remeasurement gains
and losses.
(e) Inaccuracies in the
Notes to financial
statements
06/2023 6
(f) Incomplete Note
disclosures (per
standards).
Presence of unusual #2 - Review unusual Fully implemented Management agrees with the
balances attributable balances and adjust recommendation. The Finance
to posting receipts to accordingly in a timely Director will conduct a review of all
the incorrect manner to facilitate subledger balances going forward.
subsidiary ledger preparation of reliable
account resulting in financial statements This recommendation has been put in
negative balances of place.
$69,000 in the
accounts receivable
Improper accounting #3 - Account leased Fully implemented Managements notes the OAG’s
of leased tangible property according to recommendation and agree. Going
capital assets, using the definition of a forward, the Corporation will account
sum of minimum leased tangible capital for leased property as per the OAG’s
lease payments asset and comply with recommendation.
instead of the applicable accounting
present value of the framework This recommendation has been put in
minimum lease place.
payment.
Lack of established #4 - Establish and Partially Management will establish a formal
policy and implement policies and implemented written policy which outlines how the
procedures on fund procedures on organization manages sponsorship.
receipts relating to sponsorship revenue to Will be done by September 2020
sponsorship revenue be completed for
September 2020 This recommendation is still
outstanding.
Unfortunately, the Finance Director

leading this left BEDC in October 2020
and it took 7 months to fill the post.
In addition, this was delayed due to
Covid and BEDC’s immediate priority
was assisting small businesses to
navigate the crisis. Finally, the
current Finance Director is on
Maternity Leave for an extended
period.
BEDC is currently working with a

consultant accountant firm to assist
in drafting the policy.
No formal written #5 - Establish and Fully implemented Management will establish a formal
policy, which sets out implement policy on written policy on annual declaration
the requirements for annual declaration of of interest by September 2020.
an annual declaration interest by its board
of interest among and key management This recommendation has been put in
those charged with to be completed for place.
governance and September 2020
06/2023 7
members of senior BEDC established a policy and it is in
management. place with the Board. This policy has
been provided to the OAG. For
returning Board members, if there is
no change in the interest of a Board
member from the declaration made
in the previous year, no new
declaration is required.
Non-compliance with #6, #9, #10 - Comply Partially Official Entertainment - Management
policies: (a) Alcoholic with its own Financial implemented will further refine what is official
beverages were Instructions (e.g., FI entertainment in Financial
charged to expenses 10.2, 16.3.3, 16.3.2, Instructions to define.
for the internal 16.4.2)
holiday party (FI Financial Instructions currently
10.2); (b) Lack of includes a provision for this and the
verification Executive Director has discretion for
procedures and approval. Given the
tagging of tangible recommendations from the OAG,
capital assets (FI BEDC will look to further refine FI
16.3.3, 16.3.2); (c) No 10.2 and what constitutes official
separate record of entertainment.
disposals/sales of
assets (FI 16.4.2) and BEDC is currently working with a
presence of assets consultant accountant firm to assist
that could not be in updating its Financial Instructions.
traced to the asset
listing Tagging Tangible Assets -
Management acknowledges this
observation and agrees.
The Asset List and Tagging of assets is

ongoing. The process has started for
tagging capital assets but has not
been completed.
Tangible Assets - BEDC has produced

a policy around tangible assets
subsequent to the 2018 year-end.
This policy has been forwarded to
OAG.
This recommendation has been

completed and provided to OAG.
Record of Disposal/Sales - This is still

outstanding. Looking to continue
progressing the process as part of the
tagging of assets.
Unfortunately, the Finance Director

06/2023 8
period.
Undisclosed #7 - Ensure all Partially Management will review all contracts
contractual contractual obligations implemented effective immediately to disclose
obligation for are disclosed in the contractual payments.
contract on which notes to the financial
payments were made statements This is still ongoing and should be
subsequent to year- included in the current 2018/19 audit
end review.
Non-compliance with #8 – Comply with its Partially Management agrees wholeheartedly
legislation on legislation (e.g., Section implemented and is actively working to bring the
submission of annual 18 (5)) outstanding annual reports up to
reports after the end date.
of each financial year
This is still a work in progress as we
are still working on bringing these up
to date.
Final Annual Reports up to 13/14

have been approved by BEDC’s
Board. Draft Annual Reports from
14/15 to 19/20 have been written
and are being reviewed, edited, and
formatted. This was delayed further
due to Covid-19 and BEDC’s
immediate priority was assisting small
businesses to navigate the crisis.
Work has commenced on writing
20/21 and 21/22 Annual Reports.
The chart of accounts #11 - Update the Fully implemented Management agrees with the
has numerous general ledger and recommendations, and this has been
general ledger eliminate unused done.
accounts that are accounts
neither in use nor Updating the COA is an ongoing
have been used for continual process as some
several years programmes have not continued. This
is being reviewed annually.
No documented #12 - Develop and Partially Management will establish a written
policy to track related implement policies and implemented policy for related party and
party transactions procedures to track subsequent events disclosure by
and identify related party September 2020.
subsequent events. transactions and
identify subsequent This recommendation is still
events for appropriate outstanding.
disclosures in the
financial statements Unfortunately, the Finance Director
06/2023 9
period.
BEDC is currently working with a

consultant accountant firm to assist
in drafting the policies.
No policies and #13 - Develop and Fully implemented Management agrees and as such has
procedures in place implement policies and developed a policy subsequent the
for estimating and procedures to estimate 2018-year end. This policy has been
recording provision and record provision forwarded to OAG.
for doubtful accounts for doubtful accounts
This recommendation has been put in
place.
06/2023 10
The Berkeley Institute Capitation Grant Account
Berkeley Institute Capitation 2014 Unqualified 2,324,263.00 ‐599,249.00 1,725,014.00 613,234.00
Grant Account
Berkeley Institute Capitation N/A
Grant Account is used to
finance the operations and
delivery of education at the
Berkeley Institute, which was
established by the Berkeley
Institute Act 1933 and
subsequent amendments. Its
board of governors have a
management agreement with
the Government to manage
delivery of education as an
aided school

in management's opinion actions taken; results; reasons for status
Absence of financial #1 ‐ Develop financial No action taken We considered putting together

instructions and a instructions, policies and the formal financial instructions,
written policies and procedures for policies, and procedures
procedures manual consistency and ourselves but that has been
standardization of difficult due to resources. We
practices will engage a consultant in
current fiscal year to assist with
drafting policies. A further
update will be provided during
our audit.
No formal requirement #2 ‐ Implement Partial Current procedures to be
for bidding and/or procurement controls implementation updated and codified as a policy.
tendering process and adopt formal policy Draft policy to be placed before
particularly for on bidding and Board of Governors at May 2023
significant acquisitions tendering process for meeting for ratification.
of tangible capital transparency and value‐
assets, e.g., significant for‐money
IT infrastructure project
was acquired without
bidding and tendering
process
Minutes of meetings of #3 ‐ Consider tightening Fully implemented Matters related purely to the
the Board of Governors documentation of Governors are now omitted from
encompass matters meeting minutes by minutes.
relating to both The identifying matters
Berkeley Institute and relating to the school or
the Capitation Grant the Capitation Grant
Account. However, Account
there is no clear
06/2023 11
distinction between
matters relating to The
Berkeley Institute and
the Capitation Grant
Account
No evidence or formal #4 ‐ The budget Fully implemented
resolution to approve approval record in the
the budget in the meeting minutes.
Board's minutes of
meetings
Duplicate insurance #5 ‐ Implement required Fully implemented Insurance no longer covers items
coverage was obtained processes to ensure insured by Government
and significant spending activities are
payments made economical and
because of missed cognizant of expenses
enforcement of the liable of the
Berkeley Institute Government of Bermuda
License Agreement
between the Ministry of
Public Works, Ministry
of Education and
Workforce
Development and the
Governors of Berkeley
which included a clause,
stating that the
Government of
Bermuda shall be
responsible for the
buildings and
Government‐owned
contents insurance.
Expiration of the #6 ‐ Continue No action taken Still awaiting response from the
management discussions necessary to Ministry
agreement between the obtain updated
Board of Governors and management agreement
the Ministry of with the Ministry of
Education exposes the Education
Capitation Grant
Account to risk of losing
funding
Tangible capital assets #7 ‐ Implement required Fully implemented Assets are recorded in ledger
were recognized based controls for compliance when deployed for use.
on the date of with Public Sector
proposal/project Accounting Standards
quotation, without (e.g., PS 3150)
evidence that the assets
recorded were available
for its intended use in
those dates
Incomplete and #8 ‐ Ensure Fully implemented All contracts reviewed annually
inaccurate monitoring Management has valid to ensure billings and payments
of contractual contracts with all service are consistent with terms of
obligations providers agreement
06/2023 12
Non‐compliance with #9 ‐ Comply with its Fully implemented Draft accounts up to the 2022‐
the Usage of Aided legislation and Usage of year end have been submitted.
Schools Grants policy Aided Schools Grants Draft accounts for 2023‐year end
which required policy to be filed with OAG before June
preparation for audit of 30 2023
the Capitation Grant
Account no later than
June 30th each year
Deficiencies in tangible #10 ‐ Ensure that Partially Process of specific identification
capital assets schedules: schedules relating to implemented and tagging of assets to be
no proper presentation tangible capital assets completed by August 30, 2023.
of asset register, are prepared properly Reconciliation with year‐end
absence of details such and reviewed by a accounts for Mar 31 2023 to be
as asset name, asset person other than the part of process.
class, description, preparer
location, etc., absence
of proper auditable
summaries from
lapsing, additions,
amortization
All assets included in #11 ‐ Assign unique No action taken Process started. Completion
the TCA register were asset identifiers and deadline is August 30 2023
neither labelled nor label all assets for
tagged identification and
safeguarding of property
Inconsistencies between #12 ‐Reconcile vacation Fully implemented Business Manager will review

the accrual schedule accrual schedule with underlying payroll documents to
and vacation forms, on applicable supporting confirm accuracy of schedule
vacation days taken documentation provided by Office Manager at
March 31 each year.
06/2023 13
Bermuda Educators Council
Bermuda Educators Council 2014 Disclaimer 162,246.00 ‐158,468.00 3,778.00 ‐33,885.00
Bermuda Educators Council was Serious deficiencies in the
established under the accounting records and in
Bermuda Educators Council Act the system of internal
2002 to improve standards of controls; unable to
teaching, to maintain and determine whether
improve standards of adjustments were required
professional conduct of in respect of recorded or
educators in the public interest unrecorded transactions
Observation Recommendation Status of implementation Describe actions plan and timing; actions

in management's opinion taken; results; reasons for status
Serious deficiencies in #1 ‐ Immediate action No action taken The deficiencies cited above have
the accounting records should be taken to not been to our satisfaction
and in the system of address the deficiencies remedied in a meaningful way for
internal controls; in the accounting subsequent years 2015 to 2019.
indicators that records and controls of Partly because of the lack of
entrusted property the Bermuda Educators manpower and the challenge of a
have not been properly Council due to volunteer board having the
managed and/or that disclaimers of audit commensurate time and talent to
accountability has not opinion reported from progress the recommendations.
been maintained 2009 to 2014 However with a new board’s
demonstrated commitment to
fiscal prudence by way of sourcing
new accounting systems and
structures, we look forward to
fulfilling our financial accounting
responsibilities in moving
forward.

06/2023 14
Board of Trustees of the Golf Courses
Board of Trustees of the Golf 2016 Qualified 1,452,160.00 ‐1,263,539.00 188,621.00 238,616.00
Courses
Board of Trustees of the Golf Unable to obtain sufficient
Courses was established under appropriate audit evidence
the Golf Courses to support validity and
(Consolidation) Act 1998, to accuracy of green fees, golf
have general control, cart hires and memberships,
management, and an extrapolated error of
administration over Port Royal $311,175; and unable to
and Ocean View Golf Courses, substantiate rental revenue
and to maintain the golf transactions amounting to
courses in good and proper $67,093
condition.

Lack of sufficient and #1 ‐ Implement Fully implemented The Bermuda Golf Course Accountant
appropriate audit required control is provided all supporting
evidence to support: processes to ensure documentation for green fees, golf
a. Green fees, golf cart supporting cart hires and memberships by the
hires and memberships documentation to pro shop staff daily, these documents
b. Rental revenues substantiate are used to update the financial
Serious deficiencies in transactions is system, reducing the risk.
the accounting records maintained
1 ‐ No evidence that #2 ‐ Define, Partially Many of the financial policies and

financial policies and implement and implemented procedures listed in the observation
procedures were monitor required have been reviewed and will be
reviewed and structure, processes presented to the Golf Course
approved and controls to Financial subcommittee for approval.
2 ‐ No policy and strengthen the Preparation of the policies and
procedures to estimate Board's corporate procedures is one of the priorities on
and record provision governance practices the Golf Courses Business strategy
for doubtful accounts and any outstanding policies
and write‐offs identified will be addressed within
3 ‐ Inadequate the next two years.
financial policy for
tangible capital assets The declaration of interest from
e.g., valuation, unique board members and key
identification, management remains outstanding
capitalization and will be addressed within the next
threshold and criteria two months.
4 ‐ No declaration of
interests from Board The budget for 2022/23 was
members and key presented and approved by the board
management and this practice will continue for
2022/23 budgeting process.
06/2023 15
5 ‐ Budget approval
not formally The service contracts (janitorial,
documented in security) are currently being
minutes of Board addressed for the 2023/24 financial
meeting year.
6 ‐ Lack of updated
contracts for ongoing The review of processes and
transactions procedures will assist with improving
7 ‐ Lack of supporting the documentation required for the
documentation for audit trail, this process has started
audit trail and will continue in a systemic
8 ‐ No standard policy manner.
for special golf rates,
discounts and binding The policy for special golf rates
agreements with client agreements remains outstanding and
groups is currently being addressed. The
9 ‐ Complimentary golf goal is to have a standard agreement
fees for government for special golf rates by the end of
officials are recorded June 2023.
without monetary
value
1 ‐ Incorrect valuation #3 ‐ Define, Partially There have been improvements and
of inventory held for implement and implemented controls put in place for the ground’s
use monitor required maintenance inventory system and
2 ‐ No evidence of structure, processes getting the inventory to standard is a
review and approval of and controls to work in progress. The team have
manual journal entries strengthen the completed the written year‐end
3 ‐ No unique control Board's financial procedure, and they are currently
number over manual reporting working on the daily procedures for
journal entries management managing inventory transactions. A
4 ‐ No reconciliation of practices new computer application has also
inventory from been implemented in 2022 to assist
physical count with with managing the inventory,
inventory in records included in the work completed is a
5 ‐ Inadequate new store location. The valuation of
inventory count inventory at the maintenance shed
procedures to address remains an issue due to absent unit
accuracy and cost for several parts. We are
completeness currently working on gathering unit
6 ‐ No evidence of cost information from the vendors
bank reconciliations and will update the system with this
being reviewed data. This project will take a few
regularly by someone months to complete.
other than preparer
The practice of reviewing
reconciliations by a second person
will be implemented in the next 3
months.
Reference used in #4 ‐ Use updated Fully implemented Most of the vacation confirmation for
determining the leave agreements in BIU and BPSU for December 31, 2022,
entitlement days per determination of have been signed off by the
year were not up‐to‐ vacation leave accrual employees. The current union
date. The BIU and balances
06/2023 16
BPSU agreements were agreements will be used to prepare
used for periods the accrual balances.
January 1, 2011 to
December 31, 2012
and October 1, 2008 to
September 30, 2011,
respectively.
Incomplete and #5 ‐ Define, Partially The Board of Trustee government
inaccurate disclosure implement and implemented golf courses currently are made
of (a) contractual monitor required aware contractual obligations using a
obligations, (b) structure, processes board action memorandum, the
subsequent events and controls to manager prepare a memo, the memo
strengthen the informs the board of the purpose,
Board's adherence to background and the manager
Public Sector recommendation and budget
Accounting Standards requirement. The management team
are also currently reviewing standard
services (janitorial, security etc) and
will ensure the contracts are
updated.
Non‐compliance with #6 ‐ Comply with its Partially The practice of approval of the Golf
legislation. No legislation (e.g., implemented Course rates by the Board Trustees
evidence 2016 golf Sections 12 (1), 12 (4), and the Minister of Public Works is
rates were approved 13 (1)) currently being practiced, the Port
by the Board, Section 7 Royal rates for 2023/4 have been
(1). Inadequate approved by the board and the
revenues have placed Minister of Public Works. The Ocean
the Golf Courses in a View rates 2023/24 are in draft and
deficit position for the will be present to the Board and the
last few years, Section Ministry of Public Works by the end
8. Delayed audits. No of April 2023 as per the Act.
evidence annual
reports were The Board of Trustees has approved
submitted for fiscal the hiring of an accounting firm to
year ends before or complete the financial statement for
after March 2016, outstanding years and they will be
Sections 12 (1) (4), starting the process May 2023.
Section 13 (1)

06/2023 17
CedarBridge Academy
CedarBridge Academy 2016 Disclaimer 38,627,759.00 ‐37,616,869.00 633,928.00 ‐393,772.00
CedarBridge Academy is a Serious deficiencies in the
public school, providing accounting records and in
education under the Education the system of internal
Act 1996 and subsequent controls; unable to
amendments determine whether
adjustments were required
in respect of recorded or
unrecorded transactions

Serious deficiencies in #1 ‐ Immediate action Partially Since the 2016 audit opinion,
the financial reporting should be taken to implemented CedarBridge Academy have
process. Challenges in address the deficiencies taken steps to remediate their
obtaining sufficient and in the financial reporting financial reporting process. This
appropriate audit process of the Academy process has entailed that our
evidence due to disclaimers of consultants focus on putting
audit opinion reported together audit files from FY 2017
in 2015, 2016 for submission to the Auditor
General.

Unfortunately, during the period
of the Auditor General’s review
of the FY 2017 audit file
submission, the BOG’s was faced
with two resignations, both of
which supported the BOG’s
Finance Committee.

This void has only just been
remediated (April 10, 2023), with
the Minister of Education
appointing a qualified
accountant to the BOG to
support this committee.

The CedarBridge Academy BOG
is requesting a period of four
months for the new finance
committee to assimilate and
begin the overall review process
of the FY2017, 2018 & 2019 files
for submission to the Auditor
General in July 2023. This
timeframe will enable
06/2023 18
preparation and submission of
the FY 2020 & 2021 files by
October 2023.

The BOG is committed to
ensuring that the deficiencies
noted from the 2016 audit
opinion are resolved and that
the Auditor General is confident
that there is sufficient and
appropriate evidence with our
submissions.

06/2023 19
Confiscated Assets Fund
Confiscated assets fund (CAF) 2010 Qualified 26,294,472.00 ‐13,082,744.00 13,211,727.00 ‐9,972,900.00
Confiscated assets fund (CAF) Unable to obtain sufficient
was established by subsequent appropriate audit evidence
amendments to the Proceeds with respect to
of Crime Act 1997 for proceeds completeness of revenue
of criminal conduct recovered $127,591 and unable to
under a confiscation order and determine adjustments
money paid to the Government necessary to revenue,
of Bermuda by foreign accounts receivable, net
jurisdiction in respect of financial assets, annual
confiscated assets deficit and accumulated
surplus

status
(a) Confiscation and #1 – Define a No action taken Discussions had begun with the
forfeitures orders are standardized process or relevant parties but with the
not recorded in the guidelines that meets staff changes this was never
correct fiscal year. stakeholder needs and completed.
(b) No standardized aids in ensuring proper
process for complete accounts and record‐
and relevant financial keeping in relation to
information to properly the accounts of CAF
account for transactions.
Multiple instances of #2 – Make timely Fully implemented Detained and forfeited funds

cash deposited into the transfers to the CAF’s are deposited directly into the
Consolidated Fund bank account to ensure CAF bank accounts. Where
during fiscal year with proper records funds are to be returned the
delayed transfer to the transfer from the CAF is done
CAF bank account in the and recorded at the same time
following fiscal year that the payment is being
made from the CF.
(a) No evidence of #3 – Ensure all Fully implemented All disbursements now are
approval from the disbursements or done only under the approval
Ministers for the grants expenditures are of the Minister of Finance and
and expenditures from properly authorized in the Attorney General
CAF. accordance with
(b) A contract was not Proceeds of Crime
available for review. Amendment Act 2000
with supporting
documents for the
approval in file

06/2023 20
Contributory Pension Fund
Contributory Pension Fund 2012 Disclaimer (since 2005) 1,591,905,299.00 ‐66,040,440.00 1,525,864,859.00 ‐6,890,471.00
Contributory Pension Fund was Serious deficiencies in the
established under the accounting records and in
Contributory Pensions Act 1970 the system of internal
and subsequent amendments controls; unable to
to provide old‐age pension, determine whether
disability and death benefits adjustments were required
for persons meeting in respect of recorded or
contribution, citizenship and/or unrecorded transactions
residency requirements
Observation Recommendation Status of implementation in Describe actions plan and timing;

management's opinion actions taken; results; reasons for
status
Serious deficiencies #1 ‐ Immediate action Partially implemented The custody agreement with
in the accounting should be taken to Bank of New York was revised
records and in the address the to provide better reporting on
system of internal deficiencies the investments for the CPF. In
controls, resulting in addition the ACG now does
disclaimers of audit independent pricing on the
opinion reported listed securities to confirm the
from 2005 to 2012 pricing reported by the
custodian as well as do a
review of available audited
statements for investment
managers

06/2023 21
Please note the definition of status and address the sections with yellow-shaded header
FutureCare Fund
FutureCare Fund 2017 Unqualified 3,755,029.00 ‐4,705,382.00 ‐950,353.00 660,917.00
FutureCare Fund was set up to N/A
provide hospital and medical
insurance for all residents of
Bermuda, over the age of 65
years; it is administered and
managed by the Health
Insurance Committee under
the provisions of Health
Insurance Act 1970 and
subsequent amendments
Health Insurance Fund
Health Insurance Fund 2017 Unqualified 4,945,563.00 ‐4,348,182.00 597,381.00 2,255,021.00
Health Insurance Fund was set N/A
up to provide hospital and
medical insurance for all
residents of Bermuda; it is
administered and managed by
the Health Insurance
Committee under the
provisions of Health Insurance
Act 1970 and subsequent
amendments
Mutual Re‐Insurance Fund
Mutual Re‐Insurance Fund 2017 Qualified 15,919,985.00 ‐9,735,696.00 6,184,289.00 2,961,092.00
Mutual Re‐Insurance Fund was Unable to obtain sufficient
established under the Health appropriate audit evidence
Insurance Act 1970 to spread with respect to
the cost of certain claims completeness of re‐
among licensed insureres and insurance fees from
approved schemes; a Government Employees
prescribed sum is allocated per Health Insurance Fund
the Health Insurance (Mutual amounting to $6,476,538
Re‐insurane Fund) (Prescribed and related receivable
Sum) Order 2014; it is amounting to $2,150,312
the Health Insurance
Committee under the
provisions of Health Insurance
Amendment (No. 2) Act 2009
06/2023 22
Observation Recommendation Status of implementation in Describe actions plan and timing; actions
management's opinion taken; results; reasons for status
No population #1 ‐ Provide complete Partially 99% of the portability claims are
information and accurate claims implemented automated. There is 1% of all
maintained at populations at the oversea claims, for which the
individual claim level individual claim level process remains manual. HID
for statistical hopes to further implement a
sampling at individual process for this very small
level. percentage.
No checks or reviews #2 ‐ Perform review on Partially HID continues to work on a
are done by the work performed by implemented retrospective process that will be
Health Insurance third parties and obtain implemented in fiscal year 23‐24.
Department (HID) to regular attestation
verify the accuracy, report on system and
completeness and organization controls at
eligibility of the third parties
claims adjudicated by
third parties. No
independent opinion
obtained on the
system of controls at
third parties involved
in the adjudication
process.
No evidence that all #3 ‐ Perform regular Partially With effect from April 1, 2018, the
claim and revenue review of claims and implemented general ledger is being used in the
reports generated system‐generated system. Monthly expense and
were reviewed for revenue reports, revenue reporting and
completeness and investigate and resolve reconciliations will be prepared
accuracy by a person differences and reviewed and signed off by
independent of the management.
preparer on a regular
basis.
No controls in place #4 ‐ Implement policies Fully implemented HID has put a process in place
to ensure that all and procedures to where all claims received by fax,
submitted claims review claims mail and email are saved in a
were properly submitted and compressed folder and sent to the
uploaded. uploaded into the ftp site. The ftp site generates a file
system number which is sent to Sutherland
to confirm receipt. The claims are
then loaded into the system.
No assessment of #5 ‐ Design and Fully implemented The administration expenses will
reasonability of the implement policies for continue to be shared evenly
allocation of determining a across HIF, FCF & MRF until 2018‐
administrative reasonable allocation 2019 when the allocation will be
expenses especially of expenses across 2/3 to HIF & FCF under One Fund &
for the Mutual Re‐ FutureCare Fund, 1/3 to MRF.
insurance Fund Health Insurance Fund
whose operations and Mutual Re‐
and functions are Insurance Fund
different from those
of the Health
Insurance Fund and
the FutureCare Fund.
06/2023 23
Adjusting entries #6 ‐ Complete timely Partially HID is clearing outstanding items
pertaining to long bank reconciliations implemented on the bank reconciliations for
outstanding bank with review and 2017‐2018 and future years. HID
reconciling items disposition of will seek permission from the
were not posted to reconciling items, Ministry of Finance to write off
the specific medical including outstanding unresolved items within the next 3‐
provider or items owed between 6 months.
policyholder sub‐ FutureCare Fund,
ledgers for accurate Health Insurance Fund
tracking. and Mututal Re‐
insurance Fund
Management #7 ‐ Complete financial Partially HID will soon be preparing the

accounts are not reporting regularly implemented 2017‐2018 financial statements
prepared on a and will continue to work on
monthly basis subsequent years to become
because the financial current. Reporting will be
reporting is only performed regularly.
performed annually
as part of the year‐
end process.
Budget amounts are #8 ‐ Comply with Fully implemented HID did not include a budget in the
not reported in the accounting standards
2016‐2017 financial statements but
financial statements. (of financial statement
will be including one in the 2017‐
presentation of actual
2018 fiscal year.
results and budget)

The Mutual Re‐ #9 ‐ Implement use of Partially The MRF financial statements will
insurance Fund trial accounting system for implemented continue to be prepared in excel
balance is prepared the Mutual Re‐ until the financial year 2018‐2019,
manually without insurance Fund and for future periods, HID will be
evidence of review. utilizing the general ledger in
Luminx.
No strategic plan to #10 ‐ Design and Alternative action As of April 1, 2018, HIF & FCF are
manage inter‐fund implement a strategic taken administered under One Fund. At
balances; their plan to manage inter‐ this time, the HIF & FCF inter‐fund
recoverability is fund balances balances will net to zero and the
uncertain with 100% MRF inter‐fund balances will be
provision satisfied.
Clearing accounts #11 ‐ Perform regular Fully implemented In 2018‐2019 a process was
used in initial set‐up reconciliation of developed that better identifies
of new individuals clearing accounts payments made on new
and groups are not enrolments that are credited to the
reconciled regularly clearing account so that they may
leaving unknown be more easily reconciled.
balances.
No policy on review #12 ‐ Implement Partially HID is implementing a formal policy
and monitoring of policies and procedures implemented to ensure timely contract review
terms of contracts for contract review and and monitoring. Implementation
with third parties monitoring will be completed within this
quarter.
06/2023 24
No policy on the #13 ‐ Design and Alternative action As of April 1, 2018, HIF & FCF are
process to be implement policies for taken administered under One Fund, so
followed in allocating grant allocation across this is no longer a challenge.
grant funding FutureCare Fund,
received from the Health Insurance Fund
Government of and Mutual Re‐
Bermuda insurance Fund

06/2023 25
Please note the definition of status and address the sections with yellow-shaded header
Government Borrowing Sinking Fund
Government Borrowing Sinking 2016 Qualified (since 2014) 117,274,389.00 0.00 117,274,389.00 ‐18,073,169.00
Fund (GBSF)
Government Borrowing Sinking Included in Cash and Cash
Fund (GBSF) was established as equivalents and Temporary
a separate legal entity for the Investments shown on the
repayment of Government Statement of Financial
borrowing under the provisions Position is an amount of
of the Government Loans Act $114,943,791 which is not
1978 readily convertible to cash

Management had not #1 ‐ Implement control Partially As is practical the ACG continues to
applied the correct measures for implemented make best effort to improve the
accounting treatment compliance with public recording and presentation of the
in recording financial sector accounting financial statements and have
assets as per PS 1200 standards (e.g., these be in line with the applicable
Financial Statement temporary standards.
Presentation, PS 3030 investments, portfolio
Temporary investments, financial
Investments, PS 3040 statement presentation
Portfolio Investments. of financial assets)
No evidence that #2 ‐ Implement control Partially The ACG does a review of the

management measures to account implemented reports provided by the custodian
performed due for investments as – Bank of New York against the
diligence on the required by accounting reports provided by the Manager –
appropriate standards Payden & Rygel to confirm
recognition of purchases, sales etc. throughout
portfolio investments the year for recording in the
as reflected in the financial statements.
financial statements.
No record trail of the
transactions
(purchases, sales,
amortization of
premiums/discounts,
interest income, etc.)
that had taken place
throughout the year
related to portfolio of
investments.
06/2023 26
The sale of #3 ‐ Review internal Partially The ACG does a review of
investment was not control activities over implemented transactions based on the available
recognized in a timely financial statement information from both manager
manner resulting in preparation addressing and custodian to mitigate against
an overstatement in completeness of cut off issues such as the one
investment and recorded transactions noted.
understatement in
the receivables for
investment sold.
(a) No evidence of #4 ‐ Review internal Partially The ACG makes the statutory
Ministerial approval, control activities to implemented contributions in line with
as required by address compliance legislation.
legislation in the with relevant
annual statutory legislations to GBSF The tabling of the statements has
contribution being unfortunately not progressed. The
deemed paid from Ministry of Finance will seek to
the excess borrowing remediate during the 2023/ 24
funds invested during fiscal year.
the financial year
(b) No evidence of
Ministerial approval
in the transfer of
excess funds to the
Consolidated Fund
(c) Substantial delay
in the tabling of the
annual report in the
Legislature
Lack of review and #5 ‐ Strengthen review Alternative action Credit facilities, bonds, etc. are
incomplete disclosure of financial statements, taken correctly recorded and disclosed in
of material including completeness the annual statements of the
subsequent events and accuracy of Consolidated Fund
that had occurred, disclosures, e.g.,
e.g., credit facility subsequent events and
agreement, bond transactions
issuance, repurchase
of senior notes
Management had not #6 ‐ Implement Partially As noted previously the ACG
reflected the controls for compliance implemented continues to make best effort to
investment hierarchy with Public Sector improve the recording and
for disclosure related Accounting Standards, presentation of the financial
to its financial e.g., investment statements and have these be in
instruments as hierarchy on financial line with the applicable standards.
required by PS 1201 instruments
Financial Statement
Presentation
06/2023 27
Government Employee Health Insurance Fund
Government Employees Health 2012 Disclaimer (since 2006) 10,552,306.00 ‐22,679,047.00 ‐12,126,741.00 1,869,301.00
Insurance Fund (GEHI)
Government Employees Health Serious deficiencies in the
Insurance Fund (GEHI) was accounting records and in
established under the the system of internal
Government Employee (Health controls; unable to
Insurance) Act 1986 and determine whether
subsequent amendments to adjustments were required
provide health insurance in respect of recorded or
benefits for government unrecorded transactions
employees, ministers and
members of the Legislature,
their enrolled dependents. It is
the Accountant General

Serious deficiencies in #1 ‐ Immediate action No action taken It is my understanding that the
the accounting should be taken to recommendation given was
records and in the address the deficiencies accepted and that work had begun
system of internal in the accounting in strengthening the system of
controls resulting in records and controls of internal controls for the GEHI Fund.
disclaimers of audit GEHI However due to severe staffing
opinion reported from constraints within the ACG Financial
2006 to 2012 Reporting section this was not
completed. I was made aware that
one of the issues was the lack of
support for claims and that steps
were taken to address this in terms
of proper filing and archiving of
claims and related documents.

06/2023 28
Ministers and Members of the Legislature Pensions Fund
Ministers and Members of the 2015 Unqualified 11,620,394.00 ‐94,646.00 11,525,748.00 196,303.00
Legislature Pensions Fund
(MMLPF)
Ministers and Members of the N/A
Legislature Pensions Fund
(MMLPF) was established by
the Ministers and Members of
the Legislature (Salaries and
Pensions) Act 1975 and
subsequent amendments, to
provide retirement pensions
for the ministers, members and
officers of the Legislature. It is
the Accountant General

Required change to #1 ‐ Follow up the No action taken Suggested wording for the change
legislation, Section 8 (7) Ministry of Finance on in legislation was provided to the
of the Ministers and proposed wording former Financial Secretary but
Members of the changes in Section 8 (7) this was not progressed. The
Legislature (Salaries of the Ministers and ACG’s Department will work with
and Pensions) Act 1975 Members of the the Ministry of Finance with the
Legislature (Salaries and aim of having the required
Pensions) Act 1975, i.e., changes during the 2023‐2024
Auditor General to fiscal year.
prepare an auditor's
report instead of annual
report
Unfunded liability, #2 ‐ Provide a No action taken The Ministry of Finance has
resulting from net of sustainable long‐term advised that this will addressed
accrued pension comprehensive plan to once the work currently
obligation and net address the unfunded underway with respect to the
assets available liability of MMLPF Pension Reform is completed.
No functioning board in #3 ‐ Prioritize No action taken This was previously discussed
absence of minutes of establishment of an with the Ministry of Finance. The
meetings of Ministers oversight board ACG department follow up with
and Members of the the Ministry to have this
Legislature Salaries progressed during the 2023/24
Review Board since last Fiscal year.
meeting in April 2011

06/2023 29
Pension Commission
Pension Commission 2018 Unqualified 1,119,648.00 ‐101,859.00 1,017,789.00 ‐26,082.00
Pension Commission operates N/A
under the National Pension
Scheme (Occupational
Pensions) Act 1998 and its
related regulations, to promote
and administer compliance
thereof, to consider and
determine applications for
registration of pension plans

status
No policy regarding the #1 ‐ Establish and Fully implemented Amortization policy approved in
commencement of the implement a formal March/23.
amortization of newly policy for amortizing
purchased tangible newly acquired tangible
capital assets. There capital assets
were inconsistency in
instances of recognizing
a full month of
amortization regardless
of when the asset was
purchased during the
month, and in instance
of a new asset without
applying the same
approach
Lack of review for #2 ‐ Implement No action taken Agreed to research how best to
prepayments, debit procedure to identify satisfy the requirement.
balances in accounts outstanding balances for
payable and long reclassification or write‐
outstanding checks off
under bank reconciling
items
Absence of #3 ‐ Establish a formal Fully implemented Board Members are required to

requirement for annual policy on annual submit an Annual Declaration of
declarations of interest declaration of interests Interest Form each year.
from those charged among those charged
with governance and with governance and
key management, to key management
identify related party
and potential conflicts
of interest situations
06/2023 30
status
a) Financial hardship #4 ‐ Perform regular Alternative action Management recognizes the
withdrawal fees ‐ no reconciliation and taken observation but advises that the
evidence of periodic review of deposit logs, hardship log was never intended
reviews and financial hardship logs, to be used for financial
reconciliations of staff transaction logs reconciliation purposes. In
financial hardship logs, addition, due to a lack of human
to the application resources, the ability to conduct
forms received, to the such reviews is not possible. The
deposit logs. Commission no longer accepts
b) Amendment fees ‐ cash, and debit/credit cards are
no evidence of periodic now utilized instead. The fees
reviews and are normally processed daily,
reconciliations of staff and its bank account is credited
transaction logs, to the with the respective payment.
application forms The CEO reviews the card
received and the transactions and confirms the
deposit receipt of the applicable fees in
logs. its bank account.
Receivables on Annual #5 ‐ Establish and Alternative action Management believes that the
Information Report implement a clear and taken current allowance for doubtful
("AIR") fees from 2000 quantifiable policy for accounts is reasonable.
to 2017 were long recording provision for However, it is willing to review
overdue. Allowance for doubtful receivables the amount.
doubtful accounts of
$1,000 provided but
there is no clear and
quantifiable method of
determining such
provision.
Non‐compliance with #6 ‐ Comply with its Partially Steps are being taken to have
legislation requiring the legislation (e.g., Sections implemented the outstanding audits
submission of annual 64 (1), 64 (2)) completed to enable the
report within 6 months submission of the required
after the end of annual reports.
financial year, to be laid
before both Houses of
Legislature

06/2023 31
Public Service Superannuation Fund
Public Service Superannuation 2012 Disclaimer 515,071,309.00 ‐11,406,832.00 503,664,477.00 16,658,791.00
Fund (PSSF)
Public Service Superannuation Serious deficiencies in the
Fund (PSSF) was established by accounting records and in
the Public Service the system of internal
Superannuation Act 1981 and controls; unable to
subsequent amendments, to determine whether
provide retirement pensions adjustments were required
for retired employees of the in respect of recorded or
Government, and various quasi unrecorded transactions
autonomous non‐
governmental organizations; it
is administered and managed
by the Accountant General

Lack of fund accounting #1 ‐ Implement control Partially The custody agreement with Bank
and inability to provide activities to address the implemented of New York was revised to
documentation to deficiencies in provide better reporting on the
support the account accounting of PSSF due investments for the PSSF. In
balances and to disclaimers of audit addition the ACG now does
transactions opinion reported from independent pricing on the listed
last audit securities to confirm the pricing
reported by the custodian as well
as do a review of available
audited statements for
investment managers.

06/2023 32
Sandys Secondary Middle School Capitation Grant Account
Sandys Secondary Middle 2015 Qualified 343,978.00 ‐51,510.00 292,468.00 ‐29,489.00
School Capitation Grant
Account
Sandys Secondary Middle Unable to obtain sufficient
School Capitation Grant appropriate audit evidence
Account is used to finance the to support accuracy and
operations and delivery of completeness of tangible
education at the Sandys capital assets with net book
Secondary Middle School, value of $80,381 and related
which was established by the amortization expense of
Sandys Secondary School Act $112,214; current liabilities
1950. It is an aided school by of $19,942; revenues from
the Government under the donations
Education Act 1996.

(a) No updated asset #1 ‐Maintain an updated Choose an item.
register and lapsing asset register and retain
schedule to support the all schedules, source
net book value of the documents to be
opening balance of available for review;
tangible capital assets agree all sub‐ledgers to
and related the general ledger
amortization expense;
(b) Absence of
supporting documents
for accounts payable
and accrued liabilities
Lack of timely responses #2 ‐Ensure Management Choose an item.
to auditor queries and fulfills responsibility for
information requests. financial reporting and
Only one response agreed timelines
received; the remainder
queries were
unanswered after
numerous follow‐ups
and meeting.
(a) Use of generic, #3 ‐Implement clearly Choose an item.
varying naming written, approved
conventions for general policies and procedures
ledger accounts, neither regarding accounting
providing appropriate operations and oversight
logical structure, nor
account distinction
(b) Lack of regular
quarterly board
meetings as required by
06/2023 33
the school's bye‐laws,
only 3 occasions of
Board meeting in the
fiscal year
(c) Lack of review of the
subsidiary ledgers
(d) No formal
declaration of interest
documentation from
board members and key
management
(e) Inadequate
monitoring of
contractual obligations
and corresponding
disclosure in the
financial statements
No support beyond #4 ‐Retain sufficient Choose an item.
bank statements appropriate supporting
showing the receipt of documentation for
the donations was donated revenues
available for review
(a) Recorded expenses #5 ‐Establish, implement Choose an item.
and capital assets based and monitor cut‐off
on the Purchase Order policies and procedures
(PO) date without
regard to when the
actual transaction was
incurred.
(b) Journal entries
relating to rental of the
cafeteria posted
without adequate
evidence of review,
approval and supporting
documentation
(c) No signed
employment contracts
(d) No tangible capital
assets policy which
establishes thresholds
for items to be
capitalized or expensed
Non‐compliance with #6 ‐Comply with policy Choose an item.
the Usage of Aided governing use of aided
Schools Grants policy school grants
and The Education Act
1996, section 21 which
required preparation for
audit of the Capitation
Grant Account no later
than June 30th each
year; and section 20 (1)
06/2023 34
for budget submission
not later than August
31st for the coming year
(a) No supporting #7 ‐Ensure all payments Choose an item.

documents for a wire are supported, approved
payment and no PO and related to
approval for operating operations of the
expenses. School; implement
(b) No evidence of written approved
approval of payments to policies and procedures
be made in the Board for provision of doubtful
meeting minutes accounts
(c) No policy governing
provision or write‐off of
long outstanding or
uncollectible accounts
receivable.

06/2023 35
Trustees of the National Sports Centre
Trustees of the National Sports 2016 Disclaimer 51,573,525.00 ‐450,748.00 51,122,777.00 ‐1,281,909.00
Centre
Trustees of the National Sports Serious deficiencies in the
Centre (the Centre) was accounting records and in
established by the National the system of internal
Sports Centre Trustees Act 1988 controls; unable to
and subsequent amendments determine whether
to administer the Centre in an adjustments were required
efficient manner; to maintain in respect of recorded or
the facilities and make such unrecorded transactions
facilities available for sports
and other events
Observation Recommendation Status of Describe actions plan and timing; actions taken; results;

implementation in reasons for status
Supporting documents #1 ‐ Immediate action Partially  In 2019, we engaged the services of
for material balances should be taken to implemented a professional firm to strengthen the
and transactions were strengthen financial financial reporting and put in place
either not available, or reporting process, internal controls over the record
were deemed specifically those keeping and retentions. The firm has
incomplete/insufficient internal controls over
been contracted to prepare
record‐keeping and
accounts for Audit purposes for the
retention due to
disclaimers of audit years ending 31 March 2013 – 31
opinion reported from March 2021
2012 to 2015  The firm has also been contracted to
provide financial management
support going forward.
 Subject to budget restrictions, we
will be progressing the
implementation of documented
procedures and controls to address
the observations and
recommendation noted from this
audit.
 Drafted financial instructions and
policies are in place; For Board
approval; Partially being
implemented to strengthen the
internal controls over financial
processes.
06/2023 36
Expense with no #2 ‐ Ensure sufficient Partially  Drafted NSC Purchasing Tendering
service contract appropriate supports implemented Vendor Procedures is in place
related to service but are maintained for all subject for Board review and
timesheet provided; expenses approval.
expenses without
support; and expense
recorded with cut‐off
issue
(a) No evidence of #3 ‐ Review and Fully  Drafted NSC Payroll Process is in

review of timesheet reconcile time sheet implemented place subject for Board review and
summaries prepared summaries in a timely approval.
by department heads; manner; ensure all
(b) Timesheet hours worked are
recorded in the wrong recorded in the correct
period; accounting period;
(c) No sufficient ensure that all rates
appropriate evidence (salaries and wages)
to support basis of the used are approved and
various rates and appropriately
salaries paid documented, either by
formal policy or
employment contract;
ensure all employees
have fully executed
contracts
(a) No contracts to #4 ‐ Maintain Partially  In 2021, we started RecDesk, a
support the amounts appropriate implemented recreation management software,
invoiced and no review documentation for all that will enable us to better track
of membership revenue items and and manage our memberships.
revenue. adhere to recording  To retain duly accomplished and
(b) Government grant amounts in the correct
signed membership forms on file.
recorded in wrong year period(s)
end  To ensure all revenues relating to
rentals must be supported by
contracts. No event shall take place
without a final and signed contract.
 In case of valid exemption, an email
approval from the chairman of the
board or the directors should be
sufficient, but the contract must
follow as soon as possible.
 If support cannot be obtained or
provided at the time of recording,
and payment such as contract or
invoices, an email approval from the
chairman of the board or the
directors shall be obtained, (subject
to materiality‐management should
06/2023 37
define) but we will make sure to
obtain the relevant supporting
document.
 Draft POS Transaction Posting
procedure is in place, subject for
Board review and approval.
 Financial management support
reviews the membership revenue
Excel spreadsheet monthly. After
following the POS transaction
posting workflow, the membership
summary spreadsheet is updated
with information from Rec Desk and
QuickBooks. Cells are formula driven
to ensure the information from Rec
Desk and QuickBooks are reconciled.
Ensure to stamp REVIEWED once
reconciled. (implement the stamping
in FY 2024).

No management policy #5 ‐ Develop and Partially  Drafted Provision for Doubtful

on provision for implement a policy on implemented Accounts policy. Subject for review
doubtful accounts; accounts receivable by the SVP Operations Manager
management did not and/or provision for before presenting to the board for
perform an doubtful accounts approval.
assessment of
receivable
collectability
(a) No testing of #6 ‐ Ensure all tangible Fully  Strictly following the NSC
opening balances of capital assets are implemented Capitalization policy.
tangible capital assets supported with  Financial management support
and related sufficient and maintains lapsing schedule and
accumulated appropriate records appropriate amortization.
amortization due to documentation;

the prior years’ reconcile recorded
disclaimers. amounts to the
(b) Inadequate financial statements
supports for tangible and investigate
capital assets and variances in a timely
unexplained variance manner
between tangible
capital assets schedule
and the financial
statements.
06/2023 38
Management posted #7 – Communicate and Fully  Close QuickBooks database once
adjustments and agree financial implemented audit opinion and financial
reclassified certain statement adjustments statements are issued. Any prior
amounts to the prior for prior period year adjustments should be
year 2015 balances. balances with auditors discussed with the auditor and post
These adjustments and before adjusting prior
against retained earnings.
reclassifications were year values; post those
posted on multiple adjustments through  Currently, 2016 is now closed.
accounts on both the accumulated surplus
statement of financial
position and statement
of operations and
accumulated surplus.
The journal entries
lacked appropriate
support.

Non‐compliance with #8 ‐ Comply with its Partially  Project updates on capital works are
legislation: legislation (e.g., implemented shared with the Ministry of Culture
Section 7 (2B) from the Sections 7 (2B), 12 (1), & Sport monthly.
date of works 13)
commenced, submit
quarterly reports on  All legislated requirements are met
current capital and proof provided to Ministry of
operations and Culture & Sport at the end of each
proposed capital works fiscal year in accordance with
within 30 days of Section 12 and 13. Draft financials
quarter‐end to for years 2017 – 2022 have been
Minister of Finance
previously submitted.
and the Accountant‐
General;
Section 12 proper  Audited financials cannot be
accounts to be kept attached as the most recent Audited
relating to operations; financials are for the year ending 31
Section 13 annual
March 2016.
report on performance
and on policy and
programme after the
end of financial year,
including audited
reports and statement
of salaries and wages
paid

06/2023 39
Warwick Parish Council
Warwick Parish Council 2014 Disclaimer 1,083,493.00 ‐505,896.00 577,597.00 200,902.00
Warwick Parish Council was Serious deficiencies in the
established under the Parish accounting records and in
Councils Act 1971, to oversee the system of internal
the operations of Lorraine Rest controls; unable to
Home, to provide and maintain determine whether
recreational places and adjustments were required
facilities, to preserve and in respect of recorded or
improve general amenities of unrecorded transactions
the parish, to promote well‐
being of parish residents

Serious deficiencies in #1 ‐ Immediate action Fully implemented As laid out in the 2017 / 2018

the accounting records, should be taken to internal Audit analysis, the WPC,
the system of internal address the deficiencies took immediate action, and
controls and the in the accounting follows established accounting
financial reporting records and controls of standards and procedures.
process due to lack of the Council due to Windcrest Management
sufficient and disclaimers of audit was contracted on October 1st ,
appropriate evidences, opinion reported in 2017 to provide accounting
i.e., allowance for 2014 services and prepare Financials
doubtful accounts, Statements for WPC/LNH.
tangible capital assets, The Accounting Policies and
accounts payable, Procedures were approved
donated income, other by the Warwick Parish Council
donations, amortization at the Meeting held on October
expense, repairs and 23, 2017.
maintenance
The Chairman met
with the LRH Administrator &
the Administrative assistant.
To discuss every procedures
with them and provided them
with a hard copy and an
electronic copy of Accounting
Policies and Procedures.
The Accounting policies and
Procedures were implemented

06/2023 40
No appropriate policies #2 ‐ Document, issue Fully implemented See above

and procedures to: (a) and implement policies
identify related party and procedures to
transactions and their strengthen financial
measurement and reporting process
disclosure in the
appropriately; (b)
identify and track
significant events
occurring after the
financial statement date
that may require
adjustment or
disclosure in the
financial statements; (c)
estimate and record
provision for doubtful
accounts and address
write‐offs.
No formal declarations #3 ‐ Establish written Fully implemented See above
of interest policies to ensure
documentation for declaration of interest
Council members and forms are completed
its key employees to annually by all Council
identify related party members, employees;
and potential conflicts maintain files of
of interest situations completed forms
No evidence in the #4 ‐ Approve annual Partially In the process of being
minutes of meetings budget and formally implemented accomplished. (2021‐2022 was
that budget (for 2014 document approval by first, and 2023‐2024 is in final
fiscal year) was the Council in meeting stages)
approved by the minutes
Council.
19 unsigned Council #5 ‐ Implement controls Fully implemented Done
meeting minutes to ensure all meeting
between June 2015 to minutes are signed by
December 2017 appropriate authority
level
06/2023 41
Unable to provide (a) #6 ‐ Implement controls Fully implemented Done
monthly management to ensure sufficient and
reports;(b) explanations appropriate evidence is
of significant variances available to support
between the actuals recorded transactions;
and the approved maintain and secure
budget; (c) contracts/ written policies for all
agreements supporting significant processes
bathroom renovations
project in FY 2014; (d)
supporting approval for
vacation leave carry‐
forwards; (e) updated
system narratives for
these processes:
preparation, payroll,
revenue, receipts and
receivables, purchases,
payments and payables
Cash donations #7 ‐ Implement controls Fully implemented Done
collected by the Council to ensure donations are
from employees to be promptly remitted to
donated to various selected charitable
charitable organizations organizations
has not been remitted
by the Council; this was
recorded under accrued
charity account from
March 31, 2012 to
March 31, 2014.
Wage rates from weekly #8 ‐ Obtain and maintain Fully implemented Done
payroll report do not copy of updated
agree with collective collective agreement
agreement attributed to between the Council
lack of updated and and Bermuda Industrial
signed collective Union
agreement applicable
for FY 2014 and signed
copy of updated
schedule to the
collective agreement
The collective #9 ‐ Assess accrued Partially Policy is being reviewed during
agreement provides for benefit obligations implemented 2023/2024 CBA.
employees who retire annually
on or after the age of 60
years to receive paid
pre‐retirement leave in
accordance with their
length of service. No
assessment for accrued
liabilities.
06/2023 42
Current capitalization #10 ‐ Set dollar Alternative action Being reviewed.(To utilize the
policy lacks guidelines thresholds for taken charity committee to work on
on lower dollar capitalization of all capital products for the home.)
thresholds for assets
capitalization
No formally completed #11 ‐ Establish formal Fully implemented Done
and signed agreements: signed agreements with
(a) with residents of the tenants and service
Rest Home, (b) with day providers
care individuals, (c) with
service provider for
bookkeeping and
accounting and for clerk
services
No annual report made #12 ‐ Comply with its Fully implemented Done (The council produces
to the Minister for the legislation, e.g., section quarterly reports for the
year ended March 31, 12 (1) Ministry)
2014 and has not been
produced as of March
2020.

06/2023 43
Whitney Institute Middle School Capitation Grant Account
Whitney Institute Middle 2014 Qualified 28,759.00 ‐383,054.00 ‐354,295.00 ‐92,816.00
School Capitation Grant
Account
Whitney Institute Middle Unable to obtain sufficient
School Capitation Grant appropriate audit evidence
Account is used to finance the to support accuracy and
operations and delivery of validity of amount due to
education at the Whitney the Whitney Educational
Institute Middle School, which Trust of $171,120; current
was established by the liabilities of $18,134;
Whitney Educational Trust Act operating expenses with
1974. It is an aided school by extrapolated error of
the Government under the $100,165
Education Act 1996.

No sufficient and #1 ‐Take action to Partially Lead Schedules with Supporting
appropriate audit strengthen financial implemented invoices
evidence to verify reporting process to
operating expenses, address deficiencies in
accounts payable and accounting records and
accrued liabilities, due controls of the
to the Whitney Capitation Grant
Educational Trust Account
No documents to #2 ‐Establish formal Alternative action Ensure financial matters are part

support validity and policy to prescribe taken of minutes of Board meetings.
authorization of funds controls and accounting
received and recorded procedures over funds
as Due to the Whitney received via direct
Institute Middle School deposit or electronic
Trust transfers
No capital asset policy #3 ‐Establish, implement Partially Capital funds have been

setting out criteria, and monitor tangible implemented apportioned. Expenditure can be
threshold and useful life capital asset classified appropriately.
of the capital assets to capitalization policies
be capitalized. and procedures; review
Expense testing showed repairs and maintenance
transactions that should transactions for items
have been capitalized that are capitalizable in
based on the nature nature
and amount of the
transaction
06/2023 44
No invoices and other #4 ‐Ensure sufficient and Partially Supporting docs safeguarded.
supporting appropriate evidence is implemented Bursar’s office moved to a more
documentation on available to support secure area.
expenses, pension expenses and payments
liability, bank debit made
charge, Due to the
Whitney Educational
Trust account
No formal policy, which #5 ‐Establish formal Fully implemented Policy established and form
sets out the policy on completion of signed regarding declaration of
requirements for an annual declaration of interest.
annual declaration of interests by those
interest among those charged with
charged with governance and key
governance and key management
management
No proper procedures #6 ‐Establish, implement Fully implemented Internal cut off testing
to ensure the and monitor cut‐off conducted.
transactions are policies and procedures
reported in the correct
period
No policy or procedures #7 ‐Develop and Fully implemented Internal subsequent events
for identifying implement policies and testing implemented.
subsequent events to procedures to track
form basis for subsequent events for
appropriate disclosures appropriate disclosure in
in the financial the financial statements
statements
Inadequate details on #8 ‐Review bank Fully implemented Preparation of more detailed
bank reconciliations reconciliations in a bank reconciliations
(relevant date and timely manner; research
details of payee) and no and resolve
evidence of timely discrepancies timely
review
(a) Financial statements #9 ‐Comply with policy Partially The Bursar and outside sourced
for the fiscal year were governing use of aided implemented Accountant have been tasked to
not submitted for audit school grants follow the deadline of June 30 to
within the timeline set be in accordance with the
out in the policy #12 ‐Comply with its Government Regulations.
governing use of aided legislation, Education
school grants Act 1996 (sections 20 (1)
("…prepared for audit and 21)
no later than June 30th
each year), and in the
Education Act 1996
section 21
(b) Budget was not
submitted to the
Minister not later than
August 31th for the
coming year as required
in the Education Act
1996 section 20 (1)
06/2023 45
Lack of documented #10 ‐Document and Partially Leave vacation etc. forms
financial policies and disseminate accounting implemented approved by School Principal
procedures, e.g., policies and internal signed off by Bursar
overtime work and controls to all relevant
payments thereof parties
No signed #11 ‐Ensure presence of Partially Signed contracts/Agreements
contracts/agreements signed implemented drafted when necessary.
available and no contracts/agreements
monitoring of with all vendors and
contractual obligations employees; maintain
complete listing of
contractual obligations
and disclose those
significant in the
No evidence of vacation #13 ‐Maintain leave Fully implemented Vacation forms used to track
days tracking and no tracking schedule; set up vacation leave.
corresponding accrual and review vacation
for unused vacation accrual regularly
No policy on how to #14 ‐Develop and Fully implemented Revenue outside of the
allocate common costs implement policy on Government Grant accounted for
and record income allocation of common through another Account.
generated from other costs and recording of
school activities other income
between the Capitation
Grant Account and The
Whitney Educational
Trust
In the financial #15 ‐Adhere to Fully implemented (a) Schedule produced to show
statements: disclosure requirements remaining liabilities (if any)
(a) No disclosure on of Public Sector with Vendors.
maturity analysis for Accounting Standards (b) Comparatives of budget to
non‐derivative financial actual produced
liabilities that shows the
remaining contractual
liabilities;
(b) No comparison of
actual and budgeted
financial results

06/2023 46

APPENDIX I - Summary of Audit Opinions (Continued)

3. Adverse Opinion
The auditor shall express an adverse opinion when the auditor, having obtained sufficient
appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both
material and pervasive to the financial statements.
4. Disclaimer of Opinion
The auditor shall disclaim an opinion when the auditor is unable to obtain sufficient appropriate
audit evidence on which to base the opinion, and the auditor concludes that the possible effects on
the financial statements of undetected misstatements, if any, could be both material and pervasive.
In addition, the auditor shall disclaim an opinion when, in extremely rare circumstances involving
multiple uncertainties, the auditor concludes that, notwithstanding having obtained sufficient
appropriate audit evidence regarding each of the individual uncertainties, it is not possible to form
an opinion on the financial statements due to the potential interaction of the uncertainties and their
possible cumulative effect on the financial statements.

06/2023 48

APPENDIX I - Summary of Audit Opinions

The entities in this report had the following audit opinions (see Figure 5)
Audit Opinion across the Entities in Scope

of this Report
35% 35%
30%
Disclaimer Qualified Unqualified
Figure 5 Audit Opinion
TYPES OF AUDIT OPINIONS:
1. Unqualified / Unmodified (Clean) Opinion
The auditor shall express an unmodified opinion when the auditor concludes that the financial
statements are prepared, in all material respects, in accordance with the applicable financial
reporting framework.
2. Qualified Opinion
The auditor shall express a qualified opinion when:

(a) The auditor, having obtained sufficient appropriate audit evidence, concludes that
misstatements, individually or in the aggregate, are material, but not pervasive, to the financial
statements; or
(b) The auditor is unable to obtain sufficient appropriate audit evidence on which to base the
opinion, but the auditor concludes that the possible effects on the financial statements of
undetected misstatements, if any, could be material but not pervasive.

06/2023 47

APPENDIX II – Assets Entrusted and Liabilities Owed

Figure 6 Assets and liabilities component within entities in scope

06/2023 49

APPENDIX III - Audits In Progress:
1. 2015 The Berkeley Institute Capitation Grant Account

2. 2016 - 2019 Bermuda Educators Council
3. 2016 Sandys Secondary Middle School Capitation Grant Account
4. 2017 Trustees of the National Sports Centre
5. 2019 Bermuda Economic Development Corporation
6. 2020 Bermuda Gaming Commission (formerly known as Bermuda Casino
Gaming Commission)
*Accounts received not yet scheduled

 2016-2022 The Berkeley Institute Capitation Grant Account
 2017-2018 Sandys Secondary Middle School Capitation Grant Account
 2018-2021 Trustees of the National Sports Centre
 2021 Bermuda Gaming Commission

06/2023 50

Report On The Implementation of Recommendations From Selected Government Related Entities

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Report On The Implementation of Recommendations From Selected Government Related Entities

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REPORT ON THE IMPLEMENTATION OF

RECOMMENDATIONS FROM SELECTED

Office of the Auditor General

To fulfill its legislative duties, the Office must:

Attest to the fairness of the financial statement presentation through its

Conduct its financial statement audit work in compliance with auditing

Examine whether entities are compliant with applicable laws, regulations,

Figure 1 Main functions of the office

Figure 2 Who the Office of the Auditor General are accountable to

The audit process (see Figure 3):

Figure 3 Activities in the audit process

Our financial statement audit work:

Summary Table .......................................................................................................................................... 1

Bermuda Gaming Commission (March 31, 2019) ..................................................................................... 2

Bermuda Economic Development Corporation (March 31, 2018) ............................................................ 6

Bermuda Educators Council (March 31, 2014) ....................................................................................... 14

Board of Trustees of the Golf Courses (March 31, 2016)........................................................................ 15

CedarBridge Academy (March 31, 2016) ................................................................................................ 18

Confiscated Assets Fund (March 31, 2010) ............................................................................................. 20

Contributory Pension Fund (March 31, 2012) ......................................................................................... 21

Government Borrowing Sinking Fund (March 31, 2016) ........................................................................ 26

Government Employees Health Insurance Fund (March 31, 2012) ........................................................ 28

Pension Commission (December 31, 2018) ............................................................................................. 30

Public Service Superannuation Fund (March 31, 2012) .......................................................................... 32

Trustees of the National Sports Centre (March 31, 2016) ....................................................................... 36

Warwick Parish Council (March 31, 2014) ............................................................................................. 40

Appendix III ............................................................................................................................................. 50

Entity Release Audit Number of Fully Partially Alternative No

Contributory Pension March 2012 Disclaimer 1 0 1 0 0

Observation Recommendation Status of implementation Describe actions plan and timing;

No policies and #14 ‐ Update policies Fully implemented This policy has been updated

No policies and #15 ‐ Update its tangible Fully implemented This policy has been updated

No policies or #16 ‐ Develop and Fully implemented This policy has been updated

Unfortunately, the Finance Director

BEDC is currently working with a

The Asset List and Tagging of assets is

Tangible Assets - BEDC has produced

This recommendation has been

Record of Disposal/Sales - This is still

Unfortunately, the Finance Director

Final Annual Reports up to 13/14

BEDC is currently working with a

Observation Recommendation Status of implementation Describe actions plan and timing;

Absence of financial #1 ‐ Develop financial No action taken We considered putting together

Inconsistencies between #12 ‐Reconcile vacation Fully implemented Business Manager will review

Observation Recommendation Status of implementation Describe actions plan and timing; actions

Observation Recommendation Status of Describe actions plan and timing; actions

1 ‐ No evidence that #2 ‐ Define, Partially Many of the financial policies and

Observation Recommendation Status of implementation Describe actions plan and timing;

Observation Recommendation Status of implementation Describe actions plan and timing;

Multiple instances of #2 – Make timely Fully implemented Detained and forfeited funds

Observation Recommendation Status of implementation in Describe actions plan and timing;

Management #7 ‐ Complete financial Partially HID will soon be preparing the

Observation Recommendation Status of implementation in Describe actions plan and timing; actions

No evidence that #2 ‐ Implement control Partially The ACG does a review of the

Observation Recommendation Status of implementation Describe actions plan and timing; actions

Observation Recommendation Status of implementation Describe actions plan and timing; actions

Observation Recommendation Status of implementation in Describe actions plan and timing;

Absence of #3 ‐ Establish a formal Fully implemented Board Members are required to

Observation Recommendation Status of implementation Describe actions plan and timing; actions

Observation Recommendation Status of implementation Describe actions plan and timing;

(a) No supporting #7 ‐Ensure all payments Choose an item.