DCS - $646,625.99 (6,743 litres of fuel) unaccounted for and unreported to authorities

Auditor General's Findings

A review of the controls over fuel at the DCS’s Transportation Centre revealed that there was inadequate segregation of duties and the absence of regular independent checks of the fuel records at the Transportation Centre. The audit revealed that 6,743.88 litres of fuel with an estimated cost of $646,625.99 was not accounted for in the register for the periods beginning January 2015 and 2016.

Management reported that a major leak discovered on January 29, 2016 may have resulted in the undocumented loss. However, the Department has not conducted a full investigation to determine the total fuel lost or formally reported the loss to the Auditor General and Financial Secretary in accordance with the Financial Management Regulations.

Permanent Secretary (current): Dianne McIntosh

Breach Category: Resource Management

Permanent Secretary (at breach):

Breach Type: Misuse of Assets

Status: Non-Compliance

Last Assessed: April 30, 2018

Year Reported: 2016

Year Resolved:

Recommendation

The Department is to report the loss to the Ministry of Finance and strengthen its internal controls to ensure that the risk of errors, irregularities and losses are reduced.

JAMP Update

After the AG’s report, the Department wrote to the Ministry of Finance on Dec 1, 2016, referencing the AG’s report and advised that a leak was discovered in a “routine check”. It was determined that a fuel pipe had decayed. The pipes were replaced.
January 19, 2016 the Ministry of Finance replied, requesting a “formal report”.
JAMP does not consider what was provided a report