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Report of the Auditor-General on The 2020 Our Vision Our Vision is to become a world-class Supreme Audit Institution delivering professional, REPUBLIC OF GHANA excellent and cost-effective services. REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2020 This report has been prepared under Section 11 of the Audit Service Act, 2000 (Act 584) for submission to Parliament in accordance with Section 20 of the Act. Johnson Akuamoah Asiedu Acting Auditor-General Ghana Audit Service 11 June, 2021 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 2021 i Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 TRANSMITTAL LETTER Ref. No. AG/01/109/Vol.2/159 Office of the Auditor-General Ministries Block ‘O’ P. O. Box M. 96 Accra Tel. (0302)662493 Fax (0302)675496 GA-110-8787 11 June, 2021 Dear Rt. Honourable Speaker, REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA: MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2020 Article 187(2) of the 1992 Constitution empowers me to carry out the audit of the Public Accounts of Ghana and to report thereon to Parliament. 2. I therefore have the honour to submit to Parliament my report on the audit of Ministries, Departments and other Agencies (MDAs) of Central Government and the Courts for the year ended 31 December, 2020. 3. I extend my appreciation to the Public Accounts Committee of Parliament, and the House generally, for their continued support for the work of the Office of the Auditor- General. Yours Sincerely, JOHNSON AKUAMOAH ASIEDU ACTING AUDITOR-GENERAL ii Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 THE RIGHT HONOURABLE SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA iii Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 TABLE OF CONTENTS TRANSMITTAL LETTER ii EXECUTIVE SUMMARY 1 INTRODUCTION 1 AUDIT OBJECTIVES 1 PART I 5 SUMMARY OF IRREGULARITIES 5 PART II 15 SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS 15 PART III 27 DETAILS OF FINDINGS AND RECOMMENDATIONS 27 MINISTRY OF FINANCE 27 MINISTRY OF EDUCATION 49 MINISTRY OF YOUTH AND SPORTS 63 MINISTRY OF HEALTH 65 MINISTRIES OF FOOD AND AGRICULTURE & FISHERIES AND ACQUACULTURE 108 MINISTRY OF ROADS AND HIGHWAYS 118 MINISTRY OF COMMUNICATIONS 120 MINISTRY OF GENDER, CHILDREN AND SOCIAL PROTECTION 123 MINISTRY OF TRADE AND INDUSTRY 125 MINISTRY OF LOCAL GOVERNMENT, DECENTRALISATION AND RURAL DEVELOPMENT 127 MINISTRY OF LANDS AND NATURAL RESOURCES 131 MINISTRY OF EMPLOYMENT AND LABOUR RELATIONS 133 MINISTRY OF TOURISM, ARTS AND CULTURE 134 iv Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 MINISTRY OF CREATIVE ARTS 137 MINISTRY OF INFORMATION 138 MINISTRY OF WORKS AND HOUSING 139 MINISTRY OF JUSTICE AND ATTORNEY GENERAL’S DEPARTMENT 141 MINISTRY OF DEFENCE 147 MINISTRY OF INTERIOR 149 MINISTRY OF FOREIGN AFFAIRS AND REGIONAL INTEGRATION 157 MINISTRY OF SPECIAL DEVELOPMENT INITIATIVE 167 MINISTRY OF TRANSPORT 172 OTHER AGENCIES 172 VALIDATION OF FINANCIAL STATEMENTS OF MDAs 174 v Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA: MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER, 2020 EXECUTIVE SUMMARY Introduction I have in accordance with Article 187(2) of the 1992 Constitution conducted the audit of the accounts of Ministries and their Departments and Agencies (MDAs) for the financial year ended 31 December 2020 and consequently, present the results herewith. The report contains significant issues and matters that in accordance with Section 20 of the Audit Service Act, 2000 (Act 584), I wish to bring to the attention of Parliament. 2. The audit was conducted in accordance with International Standards of Supreme Audit Institutions and best practice, noting that the public financial management system of Ghana is underpinned by relevant legislative and administrative guidelines such as the Public Financial Management Act, 2016 (Act 921), the Public Procurement Act, 2003 (Act 663) as amended, the Audit Service Act, 2000 (Act 584), the Public Financial Management Regulations, 2019 (L.I. 2378) and the accounting instructions of Department and Agencies approved by the Controller and Accountant-General in consultation with the Auditor-General. Audit Objectives 3. The overall objectives of the audit and reporting to Parliament is to determine whether: v Proper records and books of accounts were maintained v The accounts were properly kept v All public monies due were fully accounted for 1 Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 v Rules and procedures applicable were sufficient to ensure an effective check on the assessment, collection and proper allocation of the revenue v Monies were expended for the purposes for which they were appropriated and the expenditures made as authorized and v Programmes and activities were undertaken with due regard to economy, efficiency and effectiveness in relation to the resources utilised and results achieved. Scope 4. The audit covers the period January 2020 to December 2020. Based on the above objectives, internal control and the internal audit functions were reviewed to assess the risk associated with the management and utilisation of public resources, and to determine if there were fairness and integrity in administrative decision making and in dealing with the stakeholders. Audit approach 5. In preparing this report, it was necessary to establish a background to the findings, conclusions and recommendations that were made in the report. 6. For the purpose of our audit, we sought to understand the cycle of financial control within the Public Financial Management (PFM) system. The flow was that revenue were raised in the form of taxes, grants, loans and other finances and these were deposited in the Consolidated Fund or the appropriate Public Fund. 7. Expenditures to be made from the revenue paid into the Consolidated Fund were to be approved by Parliament in an Appropriation Act. Expenditures from 2 Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 other public funds were to be made as authorised by or under the authority of an Act of Parliament. Any expenditure made from the funds without these authorities were considered irregular and contrary to law. 8. The Government or Executive takes the initiative to prepare a national budget based on revenue expectations and government policy direction for the year and presents this to Parliament for approval. Outcomes/Benefits expected 9. The following are general and relevant outcomes or benefits to the audited entity and all stakeholders that are expected to be associated with the audit: v The audit may lead to improvement in quality of financial information to stakeholders v The process could enhance compliance with the Public Financial Management laws and other related legal framework v The audit could help improve key internal controls that could minimise fraud, risks and errors v The audit process assists covered entities in highlighting best practices that when observed would improve good governance, check or safeguard against loss, misuse or abuse and damage to government properties. 10. However, not all instances of breach of financial discipline and malfeasances could be guaranteed as identified in the audit process. The audits were planned and conducted to the extent necessary for the effective performance of our work such that there were reasonable chances that infractions could be detected. 3 Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 General comments on Irregularities in the report 11. The irregularities represent either losses that had been incurred by the State through the impropriety or lack of probity in the actions and decisions of public officers or on the other hand, the savings that could have been made, if public officials and Institutions had duly observed the public financial management framework put in place to guide their conduct and also safeguard national assets and resources. 12. I have therefore included in this report my conclusions and recommendations intended to improve and further deepen effective public financial management and controls within the MDAs. 4 Report of the Auditor-General on the Public Accounts of Ghana: Ministries, Departments and other Agencies for the year ended 31 December, 2020 PART I REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA – MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2020 SUMMARY OF IRREGULARITIES 13. In this report, I have summarised the financial weaknesses and other irregularities under seven broad categories as follows: § Tax Irregularities § Cash Irregularities § Indebtedness/loans/Advances § Payroll Irregularities § Stores/Procurement Irregularities § Rent payment Irregularities and § Contract Irregularities Audit Results 14. The overall financial impact of weaknesses and irregularities identified in the course of my audit amounted to GH¢2,053,176,449.85. A summary is provided below as Table ‘1A’. 15. I will investigate these matters further and where appropriate, disallow any items of expenditure that were contrary to law, and surcharge responsible officials accordingly.
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