The Auditor-General has published a troubling finding for Fiji’s provincial councils: modified audit opinions were issued on all 32 financial statements reviewed, underscoring serious concerns about governance, financial reporting quality, and transparency. The findings appear in the Audit Report on Provincial Councils – Volume 7, which was tabled in Parliament last week.
While the report notes some progress, it points out that delays in submitting financial statements for audit continue to hinder timely opinions and deprive Parliament and other stakeholders of full visibility into how public funds are managed. It also highlights that a number of councils have slipped back into weaker positions, with the overall tone reflecting persistent weaknesses across the sector.
The Auditor-General emphasized that quality and timely financial reporting remain a concern despite earlier recommendations for improvement. Delays in submission not only slow accountability but also limit Parliament’s ability to scrutinize how provincial funds are used. The findings acknowledge the iTaukei Affairs Board’s role in facilitating training for council finance personnel, but stress that this support must be consistently effective to translate into real improvements.
Governance and internal controls were repeatedly identified as areas needing strengthening. The report calls for heightened oversight and more robust governance by those charged with stewarding public funds. It suggests that the Finance and Audit Committee at each council should include members with strong accounting backgrounds who can understand the Independent Auditor’s Report and ask the right questions of fund custodians. Such oversight is viewed as essential to improving accountability and preventing recurring audit qualifications.
Record management has shown some progress, but councils are urged to consolidate these gains to ensure they are sustainable. The audit also flags substantial investments and loans to provincial companies where documentation of ownership is lacking, with missing share certificates or loan agreements cited as a key risk to transparency and accountability.
On the investment front, the need for better record-keeping—clear ownership records, investment lists, and documentation of dividends received—was stressed to ensure ongoing transparency and to support effective monitoring of provincial holdings.
The report reiterates that decisive steps are needed by the iTaukei Affairs Board and the provincial councils to tackle ongoing audit qualifications. It specifically calls for improved monthly reconciliations of all account balances, noting that timely and accurate reconciliations are crucial to addressing discrepancies that drive qualifications.
In terms of path forward, the Auditor-General’s findings align with broader initiatives already underway to address a long-standing audit backlog. These include targeted reforms, ongoing training programs for finance officers, and efforts to uplift the qualifications of finance staff, alongside mechanisms to accelerate the completion of backlogged audits and strengthen financial governance across all councils.
Commentary and context from recent discussions suggest a hopeful trajectory: as training, qualifications, and governance reforms take root, there is potential for notably improved financial reporting and stewardship of resources. The scales of reform are large, but sustained commitment from the iTaukei Affairs Board, provincial councils, and oversight bodies could restore public confidence and ensure better governance for communities served by the provincial councils.
Summary: The latest Auditor-General report paints a challenging but updateable picture of provincial council finances, with all statements receiving modified opinions and widespread calls for stronger governance, timely reporting, and robust oversight. The emphasis on improving reconciliations, documentation for investments, and the professional capacity of finance committees points to a targeted reform effort that, if effectively implemented, could raise transparency and accountability in local governance. Positive momentum in training and backlog clearances offers a basis for cautious optimism about future improvements.
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