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Report of the Auditor-General on the Public Accounts of Ghana, Pre-University Educational Institutions for the Financial Year Ended 31 December 2017

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Report of the Auditor-General on the Public Accounts of Ghana, Pre-University Educational Institutions for the Financial Year Ended 31 December 2017 Our Vision To become a world-class Supreme Audit Institution, delivering professional, excellent, and cost effective auditing Service. REPUBLIC OF GHANA REPORT OF THE AUDITOR-GENERAL ON THE PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 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. Daniel Yaw Domelevo Auditor-General Ghana Audit Service 31 July 2018 This report can be found on the Ghana Audit Service website: www.ghaudit.org For further information about the Ghana Audit Service, 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 2018 TRANSMITTAL LETTER My Ref. No. AG.01/109/120 Office of the Auditor-General Ministries Block ‘O` P. O. Box M96 Accra GA/110/8787 Tel. (0302)662493 Fax (0302)765496 31 July 2018 The Rt. Honourable Speaker, REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 In accordance with Article 187 (5) of the 1992 Constitution, I have the honour to present to you to be laid before Parliament, my report on the audit of Pre-University Educational Institutions for the financial year ended 31 December 2017. 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 my mandate, the audit objectives and approach and an overview of summary of financial irregularities. Part II provides an executive summary of the results of the audit and our recommendations, and Part III provides the details of significant financial irregularities and recommendations on regional basis. 4. Even though 83 Institutions failed to prepare and submit annual financial statements, they are included in our overall review of the accounts of all Pre- University Educational Institutions within the year under review. The infractions Report of the Auditor-General on the Public Accounts of Ghana - i Pre-University Educational Instutitions for the financial year ended 31 December 2017 noted included unsupported payments, uncompetitive procurements, unaccounted stores, payments made without works orders, unearned salaries as well as tax irregularities among others. 5. The irregularities keep recurring due to lack of commitment on the part of the heads of the institutions to ensure compliance with established internal control measures operating within their respective institutions as well as regulations governing the management of financial resources entrusted into their care. 6. I call upon the Honourable Minister of Education and especially Heads of Educational Institutions to take note of my mandate under Article 187 (7) (b) (iii) of the 1992 Constitution of the Republic of Ghana to disallow any item of expenditure which is contrary to law and surcharge the amount of any loss or deficiency, upon any person by whose negligence or misconduct the loss or deficiency has been incurred. In other words, notwithstanding our recommendations in this report, we will proceed to hold those responsible for the infractions accountable. 7. I wish to express my profound appreciation to the Honourable Minister, the Director-General of GES, 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 and producing this report. Yours faithfully, DANIEL YAW DOMELEVO AUDITOR-GENERAL THE RT. HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA. Report of the Auditor-General on the Public Accounts of Ghana - ii Pre-University Educational Instutitions for the financial year ended 31 December 2017 CONTENTS Para(s) Page Transmittal letter PART I Executive summary 2-6 1 PART II Summary of findings and recommendations 7-29 3 PART III Details of findings and recommendation for each Region Ashanti Region 30-77 7 Brong Ahafo Region 78-190 16 Central Region 192-296 34 Eastern Region 299-450 52 Greater Accra Region 451-546 65 Northern Region 547-577 82 Upper East Region 578-629 88 Upper West Region 630-677 97 Volta Region 678-753 105 Western Region 756-911 119 Appendices Report of the Auditor-General on the Public Accounts of Ghana - iii Pre-University Educational Instutitions for the financial year ended 31 December 2017 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 PART I EXECUTIVE SUMMARY Introduction My office has audited the accounts and related records of Pre-University Educational Institutions for the financial year ended 31 December 2017 in accordance with the provisions of Article 187(2) of the 1992 Constitution of the Republic of Ghana. 2. The audits were conducted in line with the International Standards for Supreme Audit Institutions (ISSAIs) and considered the provisions outlined for public financial management in the Public Financial Management Act, 2016 (Act 921), Audit Service Act, 2000 (Act 584), Financial Administration Regulations (FAR), 2004 (L.I. 1802), Public Procurement Act, 2003 (Act 663), Public Procurement (Amendment) Act, 2016 (Act 914), the Financial and Accounting Instructions (FAI) for Senior High Schools, Colleges of Education and Educational Units issued by the Ghana Education Service (GES), Income Tax Act, 2015 (Act 896), Value Added Tax Act, 2013 (Act 870) and other relevant legislations. Audit objectives and approach 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; a. the accounts have been properly kept; b. all public monies collected had been fully accounted for and the applicable rules, regulations and procedures are sufficient to provide effective check on the assessment, collection and proper allocation of revenue; c. monies had been spent for the purposes for which they were appropriated and expenditures made as authorised; d. essential records were maintained and the applicable rules and procedures applied were sufficient to safeguard and control of the assets of the institutions; e. financial activities of the institutions had been undertaken with due regard to economy, efficiency and effectiveness; and f. The financial statements of the institutions give a true and fair view of their financial positions. Report of the Auditor-General on the Public Accounts of Ghana - 1 Pre-University Educational Instutitions for the financial year ended 31 December 2017 4. The audit findings and recommendations contained in this report were discussed with the heads of the institutions and their comments, where appropriate, were incorporated in management letters issued to them after each audit. This report covers, on regional basis, issues which in my opinion should be brought to the attention of Parliament in accordance with Article 187 (5) of the 1992 Constitution. Internal controls 5. Although internal control procedures instituted by management of the institutions were found to be generally satisfactory, we noted lapses and irregularities which were mainly as a result of non-adherence to existing financial rules and regulations as well as ministerial guidelines. The significant ones are highlighted in the succeeding paragraphs of this report. Significant findings for the year ended 31 December 2017 6. The malfeasance and other irregularities noted in all the regions occurred in the areas of cash management, procurement and stores, payroll, contract management and tax. These have been summarized below together with their comparative figures for 2016 financial year. Summary of financial irregularities for 2017 No. Type of irregularity Amount (GH¢) Amount (GH¢) 2016 2017 1 Cash management 8,527,504.33 4,805,823.43 2 Procurement/Stores 12,539,621.85 8,744,835.78 3 Payroll 134,741.37 553,621.71 4 Contract 2,943,512.24 13,937,825.04 5 Tax 590,597.44 659,859.47 Total 24,735,977.23 28,701,965.43 Report of the Auditor-General on the Public Accounts of Ghana - 2 Pre-University Educational Instutitions for the financial year ended 31 December 2017 PART II SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS 7. A summary of the significant findings and recommendations are provided in the succeeding paragraphs and on Regional basis in Part III of this report. Cash irregularities 8. Management of 55 educational institutions made payments totalling GH¢2,112,155.55 without supporting the disbursements with documents such as invoices, receipts and statements of claim to authenticate the payments. We recommended recovery of the amounts from the Heads and Bursars of the schools. 9. Our audit examination revealed that 10 Pre-University Educational Institutions in six regions could not account for a total amount of GH¢741,366.65 fees collected and funds released to staff to undertake official assignments. We recommended retrieval of the amounts from the officials and also sanction them. 10. The Headmaster, Accountant and Secretary of Nkoranman Senior High School misappropriated an estimated amount of GH¢579,936.20 collected from students using falsified receipts and/ students declared as being under Scholarship. The Bursar of the same school also purchased five gallons of fuel costing GH¢100.00 but altered the figure on the receipt to GH¢1,000.00 therefore defrauding the school an amount of GH¢900.00. In similar situation, Mr. Mark Amissah, the Electrician of Takoradi Senior High School, falsified receipts for the payment of pre-paid electricity which aided him to defraud the school a total amount of GH¢13,550.00 on 69 payment vouchers.
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