Did GAC Ignore PKF Audit of CU?

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Documents available to this paper suggest that the General Auditing Commission (GAC) ignored the audit findings of global audit firm, PKF International, during its audit of Cuttington University (CU) for the periods 2006 to 2008. According to these documents, CU had presented the PKF audit findings to the GAC, covering the audit periods asking that body to consider it, as the university’s technology software system had been corrupted.

 But the GAC totally ignored CU’s request, the documents says. It is not clear why the GAC refused to accept PKF International’s audit report on CU, but some eminent citizens of Bong County have anonymously hinted that the GAC report, which was recently submitted to the legislature, protects the political interest of a certain Bong County senatorial candidate, whose name was not divulged.

 Cuttington University president Dr. Henrique F. Tokpa, according to reports from Bong County, has declared his intension to contest the mid-term senatorial election for Bong County.

 The GAC audit charged CU Management for failing to provide documents to account for a total of US$508,626.00 in subsidies received from the Government of Liberia for the fiscal periods 2006/2007 and 2007/2008.

 The GAC report noted that CU’s management informed the GAC that soft-copies of the financial documents covering these two periods were unavailable because the QuickBooks accounting software that hosted CU’s accounting data became corrupted.

Hard copies of documents supporting the US$508,626.00 were also claimed damaged by the management of CU, the report said. It also quotes CU Management as saying that to meet its objectives, it used a portion of the subsidies to purchase petroleum products to provide electricity, and assorted food items for the provision of catering services to residents of the university.

In their opinion for the same audit period, however, PKF noted that the financial statements referred to the above audit present fairly, in all material respects, the financial position of CU as at September 30, 2006 and 2006 and the results of its operations and its cash flows for the years then ended, in conformity with the accounting principles generally accepted in the US.

On April 2, 2013, the CU Management wrote former Auditor General Robert L. Kilby, informing him of the damage to the university’s QuickBooks software, and submitting to him a copy of PKF International’s audit of CU for the same audit periods.

PKF International Limited (PKFI) administers the PKF network of legally independent member firms. There are around 300 member firms and correspondents in 440 locations in around 125 countries providing accounting and business advisory services.

PKF International member firms have a US$2.68 billion aggregate fee income (year end June 2012) and the network is a member of the forum firms—an organization dedicated to consistent and high quality standards of financial reporting and auditing practices worldwide.
According to the GAC audit for the periods submitted to the legislature, CU is liable for not accounting for over US$500,000. The GAC report notes that CU’s total adjusted appropriation was US$2,919,220.00. This amount, according to the audit report, included US$508,626.00 for fiscal years 2006/2007 and 2007/2008, that the university could not account for. As per the 2007/2008 budget laws, the report said allotments to CU were to achieve the following objectives: provide room and board for students; give professional nursing instructions; provide recreational facilities; procure, install and commission a reliable students’ records information management system.

GAC failed to address some key audit issues raised by Cuttington University (CU) when it audited the university for the period 2006/08.

Except for 2007/2008 budget, the GAC did not cite spending items in CU budgetary appropriation for the rest of the fiscal years audited.
 

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