THE Public Accounts Committee (PAC) noted Energy Fiji Ltd had carried approximately $139million assets in its fixed assets register with zero written down value.
This is stated in their review of the Audit Reports on Public Enterprises and Other Entities for the audit year ending from 2019-2020 and 2021-2022 that was tabled in Parliament on Thursday.
PAC said there were numerous fully depreciated assets in the fixed assets register, some of which may no longer be in use or held by the company, adding EFL does not have a policy for carrying out a periodic physical verification of assets.
“Management should periodically perform a physical verification of its fixed assets,” recommended PAC.
“Management should review the fixed assets register and reconcile this with the underlying assets to determine whether there are assets that no longer exist or are no longer in use so that the underlying accounting records can be adjusted.
“The company should also establish a policy for the periodic verification of fixed assets. This would ensure the existence of assets included in the fixed asset listing and improve the accuracy of periodic financial reporting as misappropriation and errors would be detected on a timely basis.”
EFL said in its response it has taken a staged approach to physically verify the assets with zero written value in view of the limited resources available with only two full-time fixed asset officers,” EFL told PAC.
