Wednesday March 21, 2018

Private auditors for ADB projects in Sri Lanka

Mar 14, 2018 08:21 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - The Asian Development Bank (ADB) is considering having private auditors to audit projects it funds in Sri Lanka given capacity constraints in the Auditor General’s department.

This is because of delays in meeting audit deadlines in projects, according to a new report designed to support fiduciary risk assessments of projects financed by the Asian Development Bank.

ADB loan agreements state a deadline for the submission of audited project financial statements to the donor.

To meet these deadlines, the Auditor General’s department sets timelines for the issuance of audit and management reports, draft audit reports, and final audit reports by its staff.

“However, in practice, there are delays in meeting these deadlines because of resource constraints,” the report said.

“The Auditor General’s department does not subcontract project audits to private firms or individuals. “

It recommended that the ADB hold discussions with the borrower and the executing agency to ensure that the Auditor General’s department has enough resources to audit the project.

“If resource capacity is limited, ADB may discuss with these entities the possibility of hiring an independent external auditor in accordance with ADB’s financial management guidelines, at the same time that improvements are made in audit staff capacity with financial assistance from other development partners.”

(COLOMBO, March 14, 2018)


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