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REPORT of the AUDITOR–GENERAL on the PUBLIC ACCOUNTS of GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS for the Financial Year Ending 31 December 2014

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REPORT of the AUDITOR–GENERAL on the PUBLIC ACCOUNTS of GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS for the Financial Year Ending 31 December 2014 Our Vision To be one of the leading Supreme Audit Institutions in the world, delivering professional, excellent, and cost effective auditing services REPUBLIC OF GHANA REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014 This report has been prepared under Section 11 of the Audit Service Act, 2000 for presentation to Parliament in accordance with Section 20 of the Act. Richard Quartey Auditor General Ghana Audit Service 3 August 2015 This report can be found on the Ghana Audit Service website at www.ghaudit.org For further information about the Ghana Audit Service on this report, please contact: The Director, Communication Unit Ghana Audit Service Headquarters Post Office Box MB 96, Accra. Tel: 0302 664928/29/20 Fax: 0302 662493/675496 E-mail: [email protected] Location: Ministries Block 'O' © Ghana Audit Service 2015 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE – UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014 TABLE OF CONTENTS Para(s) Page Transmittal letter i PART I MANDATE, SCOPE AND AUDIT OBJECTIVES 1 - 4 1 PART II EXECUTIVE SUMMARY 5 – 55 3 PART III Ashanti Region 56-99 11 Brong Ahafo Region 100-156 21 Central Region 157-210 33 Eastern Region 211-253 45 Greater Accra Region 254-282 56 Northern Region 283-311 63 Upper East Region 312-344 70 Upper West Region 345-386 78 Volta Region 387-433 88 Western Region 434-463 98 Appendices REPORT of the AUDITOR–GENERAL on the PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS for the financial year ending 31 December 2014 TRANSMITTAL LETTER Ref. No. AG.01/109/Vol.2/96 Office of the Auditor-General Ministries Block ‘O` P. O. Box M96 Accra Tel. (0302)662493 Fax (0302)765496 3 August 2015 Dear Honourable Speaker, REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014 I have the honour to forward to you to be laid before Parliament, my report on the audit of public Pre-University Educational Institutions for the financial year ended 31 December 2014 in accordance with Article 187(5) of the 1992 Constitution. 2. This report is a consolidation of unresolved significant findings and recommendations made during routine audits of the institutions which have been formally conveyed in management letters and annual reports to the management of the institutions. 3. The report is structured in three parts. Part I outlines our mandate, scope and objectives for the audit, while Part II provides an executive summary of the results of the audit and our recommendations. Part III deals with the details of significant financial irregularities and recommendations on regional basis. 4. Aside from 103 Institutions that failed to prepare and submit their annual financial Statements, our review of the accounts of the institutions noted infractions and financial indiscipline on the part of Heads of the Institutions valued at about GH¢13.1 million. Report of the Auditor–General on the Public Accounts of Ghana, Pre-University Educational Institutions for i the financial year ended 31 December 2014 5. Significant among the irregularities which have been recurring over the years and have appeared in my previous reports included, unsupported payments, uncompetitive procurements, unaccounted stores, payments made without works orders, payroll as well as tax irregularities among others. 6. The persistent failure of Heads of the institutions to comply with the provisions of the financial regulations and accounting instructions is noted as the bane of these irregularities. Additionally, the institutions have attached no seriousness to the establishment of Audit Report Implementation Committees to pursue the implementation of recommendations of Auditor-General reports as well as internal monitoring reports to ensure improvement in the financial management of the institutions. 7. I re-emphasize my previous recommendations that the Director-General of Ghana Education Service should intensify monitoring of the institutions to instill compliance and also mete out punitive sanctions to recalcitrant Heads. 8. I would like to express my appreciation to the Director-General of Ghana Education Service and management and staff of the various institutions for the cooperation accorded my staff during the audits. I also acknowledge the dedication and commitment of my staff in carrying out the audits. Yours faithfully RICHARD Q. QUARTEY AUDITOR-GENERAL THE RT. HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA. Report of the Auditor–General on the Public Accounts of Ghana, Pre-University Educational Institutions for ii the financial year ended 31 December 2014 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014 PART I MANDATE, SCOPE AND AUDIT OBJECTIVES Introduction The accounts and financial statements of public Pre-University Educational Institutions for the financial year ended 31 December 2014 have been audited in accordance with the provisions of Article 187(2) of the 1992 Constitution of the Republic of Ghana. This report summarises the significant findings from our audits and is hereby submitted to the Honourable Speaker to be laid before Parliament as required by Article 187(5) of the Constitution. 2. The audits were conducted in line with standards of the International Organisation of Supreme Audit Institutions (INTOSAI) and considered criteria established for public financial management in the Financial Administration Act, 2003 (Act 654), Financial Administration Regulations, 2004 (LI 1802), Public Procurement Act, 2003 (Act 663), the Financial and Accounting Instructions (FAI) for Senior High Schools, Colleges of Education and Educational Units issued by the Ghana Education Service (GES), Ministry of Finance Stores Regulations, 1984, Internal Revenue Act, 2000 (Act 592), Value Added Tax Act, 1998 (Act 546) and Audit Service Act, 2000 (Act 584). Scope and audit objectives 3. Our audits were guided by Section 13 of the Audit Service Act, 2000 (Act 584) which requires the Auditor-General to examine, as he thinks fit, the accounts of audited institutions and ascertain, among others, whether in his opinion; The accounts have been properly kept All public monies collected had been fully accounted for and the applicable rules, regulations and procedures are sufficient to provide Report of the Auditor–General on the Public Accounts of Ghana, Pre-University Educational Institutions for 1 the financial year ended 31 December 2014 effective check on the assessment, collection and proper allocation of revenue. Monies had been spent for the purposes for which they were appropriated and expenditures made as authorised. Essential records were maintained and the applicable rules and procedures applied were sufficient to safeguard and control the assets of the institutions. Financial activities of the institutions had been undertaken with due regard to economy, efficiency and effectiveness; and The financial statements of the institutions give a true and fair view of their financial positions. 4. The audit findings and recommendations, which are presented on Regional basis, have been discussed with Heads of the institutions and formally communicated to them in management letters and in annual audit reports for their comments and necessary action. Report of the Auditor–General on the Public Accounts of Ghana, Pre-University Educational Institutions for 2 the financial year ended 31 December 2014 PART II EXECUTIVE SUMMARY 5. Controls established by management of the institutions were fairly satisfactory. However the persistent failure of managements to comply with the financial rules and regulations is the main cause of irregularities and lapse which have been summarized in the table below and in the ensuing paragraphs. Summary of financial irregularities for 2014 Type of irregularity Amount (GH¢) Percentage Cash management 4,502,400.96 34.3 Payroll 553,697.87 4.2 Procurement/Stores 6,177,043.77 47.1 Contract 1,202,331.12 9.2 Tax 682,939.48 5.2 Total 13,118,413.20 100.0 Misappropriation of funds 6. Cash embezzlements in the sum of GH¢80,906.23 occurred at four Institutions during the year 2014 which involved unauthorized insertions on cheques to withdraw cash from School accounts, manipulation of official receipts to conceal fees collected and outright dissipation of cash withdrawals. 7. We held the opinion that the frauds occurred because the Heads and Accountants did not exercise effective supervision over cash receipting and banking duties. We recommended to the managements to sanction officials who failed to effectively supervise the errant officials and report the thefts to the Police for their investigations and possible prosecution. Misapplication of funds 8. Management of Annor Adjaye Senior High School at Half Assini collected a total amount of GH¢40,388.00 from 654 students in the 2012/2013 and 2013/2014 academic years to supply them with anniversary cloth but misapplied the amount on administrative expenses. Report of the Auditor–General on the Public Accounts of Ghana, Pre-University Educational Institutions for 3 the financial year ended 31 December 2014 9. To avert possible student agitation, we recommended to management to procure and distribute the cloths or credit the accounts of the paid up students. Payments from cash collections 10. Management of two institutions directly disbursed GH¢29,179.60 from fees collected without lodging the gross amount to bank. 11. We recommended full lodgment of revenue and for all disbursements to be subjected to the prescribed payment procedures. Unaccounted payments 12. Some 85 institutions made payments totaling GH¢3,458,809.60 without supporting the disbursements with documentations such as purchase orders, invoices, ways bills and in some cases payment vouchers to justify the transactions, neither did they provide records to confirm delivery of the items to their stores. 13. We recommended recovery of the total amount involved from the Heads and Accountants of the institutions with sanctions.
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