The analysis of the audited financial statements of the Universal Service Fund Limited (USF), which falls under the Ministry of Science, Energy and Technology (MSET), was undertaken to assist Parliament and the Public Accounts Committee (PAC) in their review of the financial performance of public bodies, in the context of the Fiscal Responsibility Framework (FRF). The Public Bodies Management and Accountability (PBMA) Act requires public entities to demonstrate prudent financial management of public resources. Where the findings from a financial statements assessment (FSA) signal the need for more in-depth investigation, this may be followed by a performance
audit or other audit type.

Our review of the financial statements revealed that the entity experienced net losses in FY2017/18 and FY2018/19 in a context of a consistent decline in core revenue, while gains on foreign exchange stemming from the depreciation of the Jamaica Dollar contributed to net profits in the other periods. Notwithstanding declining liquidity conditions over the review period, USF current assets remained adequate to cover short-term obligations.