A parliamentary review released on Tuesday has revealed pervasive weaknesses in the financial management of Fiji’s provincial councils, with auditors finding missing documentation, unreliable records and ongoing non‑compliance with international reporting standards across several councils.
Standing Committee on Public Accounts chair Manoa Kamikamica presented the review of provincial council audits, which draws on findings from the Office of the Auditor‑General under iTaukei Affairs regulations. The report covers financial years 2017 to 2022 and warns that many councils were unable to substantiate account balances because supporting records were incomplete, inconsistent or entirely absent. Controls around staff advances and investments were especially weak, the review found, producing significant audit adjustments where balances could not be verified.
The Auditor‑General received 275 draft financial statements during the review period. Of those, 259 had been previously audited and reported. Volume 7 of the review includes 32 statements covering four councils for 2017–2018 and six councils for 2019–2022. However, 56 financial statements from seven councils remain outstanding, Kamikamica told Parliament, underscoring a lingering multi‑year reporting gap that the committee said must be closed.
During the audit process the PAC visited provincial councils in Ba, Bua, Ra, Naitasiri, Lau and Rewa and acknowledged the iTaukei Affairs Board and the Auditor‑General’s Office for making progress in reducing the backlog. Kamikamica noted that some councils have begun modernising their systems — several have implemented the SAGE accounting platform and a new human resources information system for payroll and leave — but the committee flagged that poor internet connectivity in many provinces undermines the effectiveness of those electronic tools and complicates timely reporting.
Specific problems highlighted include poorly documented or unmonitored advances to staff, which in many cases lacked adequate authorisation or reconciliation; and investment records for provincial holding companies that were outdated or not produced, preventing auditors from confirming reported asset values. Where supporting documentation was weak or missing, auditors were forced to make material adjustments to the councils’ financial statements, the report said.
To address the weaknesses, the PAC is recommending that future audits be conducted on site at provincial council offices so auditors can directly verify original records and strengthen internal controls. The committee also recommends formation of an inter‑agency task force to coordinate reform efforts across iTaukei Affairs, provincial councils and the Auditor‑General’s Office, and to improve training, connectivity and reporting standards across the provincial system.
Kamikamica cautioned that without stronger governance the credibility of provincial operations — and by extension the reputation of the iTaukei community — is at risk. The committee’s findings mark the latest push by Parliament to tighten oversight of local institutions after recurring audit concerns in other sectors; the recommendations aim to convert recent technical fixes, such as system rollouts, into reliable, auditable financial practice at the provincial level.
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