The Auditor General has given the Consolidated Fund - the general operating fund through which Government conducts the majority of its financial transactions - a qualifed audit for the third year running.According to a statement from Premier Paula Cox the “qualification in this and the prior year was based on the Auditor General's opinion that there were serious deficiencies in internal controls in the management of certain capital development projects”.The statement added: “She (the Auditor General) stated that these deficiencies led her to question the appropriateness of certain transactions and the underlying value of the assets at March 31, 2010. She went on to say that without the benefit of an independent professional valuation she was still unable to determine whether adjustments might be necessary.”The Consolidated Fund financial statements report the operations, financial position and changes in financial position that result from the activities of the Government. This includes the accounts of the Senate, the House of Assembly, all Government departments and offices and all courts.They were tabled in the House of Assembly this morning and Ms Cox told Parliament that the detailed reasons for the qualification on the accounts will be included in the Auditor-General's Annual report when it is tabled.She added: “The Government fully understands, respects and values the Office of the Auditor General. The Government will work with the Auditor General and take the required steps to ensure that this qualification is removed in the future, in the same manner they did when actions were taken on qualified accounts in 2000 and on other previous occasions.”In a statement also issued this afternoon, Auditor General Heather Jacobs said she was disappointed that it had taken so long for the financial statements to be tabled.“The Consolidated Fund financial statements were issued on October 28, 2010 and should have been available for tabling in the House of Assembly shortly after that date,” she said.“This delay is not in keeping with the principles of transparency and accountability and has resulted in Members of the House of Assembly and the public not having timely access to important information.”Mrs. Jacobs Matthews noted that her Auditor's Opinion on the 2009/10 Consolidated Fund financial statements was qualified, as it had been in the previous year when there were serious deficiencies in internal control over the management of various development projects.She explained that the deficiencies led her to question the appropriateness of certain transactions and the underlying value of assets as at March 31, 2009. “As a consequence of last year's qualification, and without the benefit of an independent professional valuation on the assets in question, I am still unable to determine whether adjustments might be necessary to tangible capital assets, assets under construction and the accumulated deficit as at March 31, 2010.”Meanwhile she commented on selected financial data from the 2009/10 audited financial statements of the Bermuda Government's Consolidated Fund and said: “The key trends continue to highlight Bermuda's increasing financial challenges. These challenges include a shrinkage in revenue, a weak cash position, expenditures significantly outstripping revenues, increasing long-term debt and, by extension, a growing deficit and public debt.”During the period from March 31, 2009, to March 31, 2010, interest expense on debt rose from approximately $60,000 per day to approximately $100,000 per day (up 67percent).Mrs Jacob Matthews said she is encouraging the Government to publish a “Financial Statement Discussion and Analysis” in conjunction with the Consolidated Fund financial statements.“Such a document would provide a robust analysis of what the statements mean and what the long-term trends are and is vital if readers are to understand the Government's financial position and results.”Mrs. Jacobs Matthews also revealed that she will shortly be publishing her first annual report on Government's Consolidated Fund financial statements. “My report will include some of the detailed analysis that I believe Government should be providing,” she said, noting that trend information, in both table and graphical format, can help put the current year's figures into context.“The public is advised that the Consolidated Fund financial statements cover only the financial results and position of Government ministries and departments, the House of Assembly, the Senate and the courts. They do not include the financial results or the financial position of other government-controlled organizations such as the Bermuda Hospitals Board, the Bermuda Housing Corporation and the Bermuda College.”Mrs. Jacobs Matthews cautioned that, consequently, the Consolidated Fund statements do not show the overall financial results or financial position of the Government of Bermuda as a whole. “I am hopeful that the Accountant General will be able to present consolidated financial statements for the Government of Bermuda as of March 31, 2011,” she said.Tonight the Ministry of Finance refuted the assertion in the Auditor General’s media release stating that she was disappointed it had taken so long for the financial statements to be tabled. As quoted, “The Consolidated Fund financial statement were issued on October 28, 2010 and should have been available for tabling in the House of Assembly shortly after that date,” she said.A statement said: "However, on review, it can be confirmed that the final signed report was received from the Auditor General on 28 October 2010. The compiling of the full set of statements by the Accountant General, receiving a cost effective quote and the printing process, returned bound copies to the Ministry in December, after the House had recessed for the Christmas break.The Ministry of Finance asserts the financial statements were tabled at the earliest possible time.'