Audit Flags Inadequate Insurance Coverage of Gambia Printing and Publishing Corporation Assets

By Fatou Sillah

The audited financial statements of the Gambia Printing and Publishing Corporation (GPPC) for the year ended 31 December 2022 have disclosed significant gaps in the insurance coverage of the corporation’s fixed assets.

According to the audit report, only the corporation’s motor vehicles were insured during the period under review, leaving other key assets without comprehensive insurance protection and exposed to potential risks.

“We are concerned that, apart from the motor vehicles, none of the assets of the corporation were insured during the period,” the auditors stated.

The report warns that the absence of adequate insurance coverage could expose the corporation to substantial financial losses in the event of unforeseen incidents such as fire, burglary, or other insurable risks.

“The corporation may not have any recourse for losses arising from any insurable risks crystallizing, like fire, burglary, and so on. This would increase the risk profile of the corporation,” the report added.

In addition to insurance concerns, auditors observed weaknesses in asset management practices. The report noted that assets were not properly tagged, a lapse that could complicate identification and tracking during verification exercises.

Furthermore, auditors indicated that no formal asset verification exercise was conducted during the reporting period.

“Without periodic verification of the assets, they could get lost, stolen, or misplaced without the timely knowledge of the corporation. This could result in financial loss,” the auditors cautioned.

To address these shortcomings, the audit recommended that management and the board ensure all assets are comprehensively insured, properly tagged, and subjected to verification exercises at least once annually.

In its response, management acknowledged the findings, attributing the lack of insurance coverage to cash flow constraints.

“Your observation is noted that apart from the motor vehicles, none of the assets of the corporation were insured during the period due to cash flow challenges, notwithstanding management having budgeted for the fixed assets to be fully insured in the coming years,” management stated.

Management further indicated that while some fixed assets had previously been tagged, it would ensure that all newly acquired assets are properly tagged going forward.

Regarding asset verification, management maintained that an exercise had been conducted during the year and submitted for review, adding that the report could be resubmitted for further verification if required.