Kwesi Mugisa, Staff Reporter

ANDREWS

FINANCIAL DISCREPANCIES based on the Auditor General's 2006 Annual Report could land the Institute of Sports Ltd. (INSPORTS) in hot water.

According to the audit done for the 2005-2006 financial year, $12.1 million of employer's contributions and statutory deductions made on behalf of employees between April 2002 and February 2006 had been collected but not submitted to the relevant collection agencies.

In addition, the annual returns for the National Insurance Scheme (NIS) for 2005 were also found to be owing.

In both instances, according to the report, the breaches may not only leave the company's employees at a huge disadvantage in terms of their future entitlements to certain benefits, but also leave the unit open to possible legal action.

"Some of the breaches are serious but it would be up to the entities concerned to take legal action if deemed necessary," Auditor General Adrian Strachan told The Gleaner.

Problems also surfaced regarding salary issues as the report pointed to one member of staff being overpaid by $68,333 while the required statutory deductions were not made for five others.

The auditors were also unable to properly assess the institution's financial state as no audited financial statements had been presented over a 14-year period (1992-1993 to 2005-2006), a requirement explicitly stated by the Public Bodies Management and Account-ability Act.

The institution charged with the development of youth through investment in sport also came up short in terms of providing written accountability for goods received and distributed.

The Auditor General's report went on to indicate that there were no receipts shown for gear acquired by the institution on behalf of various sporting entities. There was also no written acknowledgement that goods got to their intended targets.

No knowledge

INSPORTS Chairman Dr. Winston Dawes told The Gleaner he had no knowledge of the report's findings.

"Thatis not something that we would deal with at the board level. That is an issue for the executive," he said.

Administrative Director, Ian Andrews, said he was unaware of the stated breaches, but promised a full investigation into the affair.

"I was not aware of any of this and, as far as I know, since I came on in 2004 we have always submitted timely financial statements," Mr. Andrews said.

"I can't speak to what happened here before I came on board but I will be looking further into the matter."

kwesi.mugisa@gleanerjm.com