The Public Accounts Committee (PAC) highlighted that Energy Fiji Ltd (EFL) reported approximately $139 million in assets within its fixed assets register, all having a zero written down value. This information was included in their audit report review of Public Enterprises and Other Entities for the fiscal years ending in 2019-2020 and 2021-2022, which was presented in Parliament on Thursday.
PAC pointed out the presence of multiple fully depreciated assets in the fixed assets register, many of which may no longer be utilized or owned by the company. They noted that EFL lacks a policy for conducting periodic physical verification of its assets.
The committee recommended that “management should periodically perform a physical verification of its fixed assets.” They further suggested that management assess the fixed assets register and reconcile it with the actual assets to identify any that are no longer in existence or use, allowing appropriate adjustments to be made in the accounting records.
Additionally, PAC urged the establishment of a policy for regular verification of fixed assets to ensure that the assets listed are accounted for and to enhance the accuracy of financial reporting, which would help in detecting misappropriations and errors promptly.
In response, EFL indicated that it is adopting a phased approach to verify physically the assets with no written down value, citing limited resources and the presence of only two full-time fixed asset officers.