Minister of Finance Paula Cox said Government is doing its best to improve after another damning report from the Auditor General Larry Dennis.

He released a raft of criticisms last week including late financial reporting meaning $500 million was unaccounted for and pension contributions and taxes worth $50 million that were more than three months in arrears.

During the past two years, he said half of Government's entities have submitted insufficient evidence for some of the numbers in their annual financial statements to be audited.

And 62 audit recommendations remain unaddressed, some of which go back as far as 1992.

Ms Cox, in a press statement on the report on the financial year 2006-07, said she noted the Auditor General's long-standing concerns about late financial reporting.

"In many cases, management accounts have been prepared and significant progress has been made with regard to bringing all public fund accounts falling under the Ministry of Finance's purview up to date.

"Progress has been made on the financial statements of other public sector entities as well."

On the problem of pension contributions and taxes in arrears, she said Government placed a high priority on collecting outstanding amounts owed.

She said: "The Debt Enforcement Unit in the Attorney-General's Chambers has had a significant impact on the ability of the Office of the Tax Commissioner and the Department of Social Insurance to collect outstanding receivables.

"The timely processing of writs has seen a significant increase in collections."

Pressure from the Attorney-General's Chambers on delinquent employers has also enhanced collections, said Ms Cox.

"Whilst I acknowledge there are still obstacles to overcome, these obstacles are being addressed and will be resolved.

"Government's plan for the improvement of management practices, controls and reporting systems is in the process of implementation.

"Our shared goal is to ensure the continued trust of Bermudians in their public institutions."

Ms Cox said the report had also highlighted successes in how Government balances its books.

"The Consolidated Fund which is the Government of Bermuda's main operating account received a clean audit opinion.

"More than $1 billion of expenditure on current programmes and capital outlays as well as $884 million of revenue were audited and accounted for.

"The Auditor General commended Government and public sector boards for this 62 percent increase in the filing of audited statements.

"Indeed, the Auditor General described the turnaround as 'an excellent year-over-year achievement'."

Government understood the importance of timely financial information, said the Finance Minister.

"Much more needs to be done and is required by all of us who are accountable for actions that need to be accelerated across the board. I include myself."

Ms Cox said it was essential all public sector entities prepared annual financial statements on a timely basis and she pledged financial reporting will improve this year.

Mr. Dennis had called for disciplinary action including dismissals against lax bosses including CEOs, CFOs, controllers and accounts.

But Ms Cox said Government had launched several initiatives to raise the bar in financial governance.

"The Accountant General's Department is working with controllers in Ministries to ensure audit recommendations that have been noted in prior years are addressed."

To improve the control over bank accounts, additional staff and consultants have been brought in and significant overtime has been approved to assist with timely and accurate bank reconciliations this year.

The bank reconciliation section is striving to keep reconciliations up to date while the section becomes fully staffed and thoroughly trained, added Ms Cox, who will also give an official response to the Auditor General's report in the House of Assembly once the Public Accounts Committee issues its report.