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(Mdas) REPORT of the AUDITOR-GENERAL

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(Mdas) REPORT of the AUDITOR-GENERAL 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 MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2013 This report has been prepared under Section 14 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 1 September 2014 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 2014 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA–MINISTRIES, DEPARTMENTS AN D OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2013 TABLE OF CONTENTS Para Pages Transmittal letter i PART I Introduction 1 1 Audit objectives 4 2 Summary of significant finds and recommendations 19 7 PART II Summary of findings and recommendations by MDAs 38 19 PART III DETAILS OF FINDINGS Ministry of Finance and Economic Planning 418 149 Ministry of Health 667 205 Ministry of Food and Agriculture 718 221 Ministry of Education 1018 288 Ministry of Employment & Labour Relations 1564 409 Ministry of Youth & Sports 1629 426 Ministry of Interior 1817 473 Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2013 Ministry of Water Resources, Works & Housing 2023 517 Ministry of Roads & Highways 2058 526 Ministry of Local Govt. & Rural Development 2102 535 Ministry of Land, Forestry & Mines 2152 547 Ministry of Information & National Orientation 2266 573 Ministry of Communication 2293 578 Office of Gender, Children & Social Protection 2304 581 Ministry of Defence 2436 612 Ministry of Justice & Attorney-General 2443 614 Ministry of Tourism, Culture & Creative Arts 2603 650 Ministry of Foreign Affairs, Regional Integration 2617 653 Other Agencies 2643 659 Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2013 TRANSMITTAL LETTER Ref. No. AG.01/109/Vol.2/84 Office of the Auditor-General Ministries Block “O” P. O. Box M.96 Accra Tel.: (0302) 662493 Fax: (0302) 675496 30 August 2014 Dear Mr. Speaker, ANNUAL REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA – MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2013 Article 187(2) of the 1992 Constitution of the Republic of Ghana gives the Auditor-General the mandate to audit all the public accounts of Ghana and to report to Parliament. In accordance therewith, I have the privilege to present to the Honourable Speaker of Parliament, my audit report on Ministries, Departments and Agencies (MDAs) of Central Government, including the Courts, to be laid before Parliament for its consideration. Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Page i Departments and Other Agencies (MDAs) for the year ended 31 December 2013 2. My report is in three parts and covers the operations, programmes and activities of the MDAs as well as their financial records which were audited in respect of the year ended 31 December 2013. 3. The objectives as well as full scope covered, the methodology used and the limitations that affected the audit have been captured in Part 1 of my report. Part 1 provides also a background to the audits and an overview of the content including a general summary of significant findings and recommendations made as a result of the audit. 4. Part 11 of the report contains the summary of findings and recommendations made in respect of the individual Ministries and their respective Departments and Agencies. 5. Part 111 of the report provides the full details of all the findings made in respect of each MDA and the individual recommendations for each finding which were summarized in Part 11. 6. Mr. Speaker, my function includes the conduct of financial and regularity audit of the accounts, programmes and activities of MDAs. In this respect, some MDAs have prepared and submitted financial statements but these have not met fully the requirements of Section 41 of the Financial Administration Act and are therefore not commented upon in this report. It is my expectation, however, that with the roll out of the Ghana Integrated Financial Management Information System Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Page ii Departments and Other Agencies (MDAs) for the year ended 31 December 2013 (GIFMIS) there will be an improvement in the situation such that my reports from 2015 can now embody my audit opinion on MDAs’ financial statements. 7. My report on MDAs for 2013 indicates continued infractions and financial indiscipline on the part of MDAs in acknowledging and observing legislative supremacy. Several irregularities have been highlighted in this report. The irregularities show the lack of probity and propriety or the extent of non-compliance with or deviation from and disregard for the tenets of laws, rules and regulations designed to secure the conduct of government financial business in an orderly and legal manner and as well preserve or improve the nation’s wealth and resources. 8. The irregularities represent either losses that have been made by the nation 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 public institutions had duly observed the public financial management framework put in place to guide their conduct and also safeguard national assets and resources. 9. Additionally, Section 30 of the Audit Service Act, 2000 (Act 584) requires the establishment of Audit Report Implementation Committees (ARICs) to ensure that all audited entities act on recommendations contained in the Auditor- General’s Reports as well as internal monitoring reports, etc. to Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Page iii Departments and Other Agencies (MDAs) for the year ended 31 December 2013 ensure improvement in administration and operations of MDAs, and to report annually on action taken to Parliament, the President and the Auditor-General. However, most MDAs have not attached any seriousness to the establishment and operation of these ARICs. 10. We bring this to your attention in the hope that Parliament will assist in securing effective action in this regard to improve accountability and enhance public financial management. ARICs established and functioning effectively should be able to bring the spate of irregularities under control. 11. As Parliament proceeds to deliberate upon this report, I would like to draw the Speaker and Members attention that the audit of governmental and public institutions generally in 2013 was conducted under very austere conditions that have been very tasking for my institution. It is my fervent wish that Honourable Members will take note that my staff were compelled out of their goodwill to use their own salaries and personal resources to finance the auditing activities, in expectation that they would be reimbursed, but my Office did not receive the relevant funds from the Ministry of Finance to effect such reimbursement to the officers. 12. Mr. Speaker, I have, in line with modern and emerging auditing trends and evolving international auditing standards introduced new auditing methodologies whose implementation and practice require requisite training, sustained monitoring Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Page iv Departments and Other Agencies (MDAs) for the year ended 31 December 2013 and evaluation effort including intensified quality assurance to ensure effectiveness in practice. The introduction of GIFMIS has also required that my staff should obtain specialized IT training and be provided with relevant tools to audit this computerized platform. I am however constrained in this drive because my Office has not received the necessary budgetary resources from the Ministry of Finance even though funds were approved for these purposes. 13. I must caution that given these circumstances, if the auditing function is not supported with adequate resources there may come a time when the governmental or public sector auditor’s independence and integrity might be at risk and the tax payer and others with stakeholder interest in our function and reports may not be assured of our auditing services as an institution. This would be as a result of poor funding and the lack of incentive and basic working tools as well as the enabling environment for professionalization of our institution and services leading to inability to adhere to international standards and work ethics that would produce the best effort in my staff. 14. In conclusion, Mr. Speaker, my Office would appreciate due and appropriate consideration in the disbursement of funds required to support our constitutional mandate to provide auditing services that assure transparency, probity and accountability in the management of public sector and national resources. Annual Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Page v Departments and Other Agencies (MDAs) for the year ended 31 December 2013 Acknowledgement 15. Mr. Speaker, I would like to acknowledge the cooperation by personnel and Managements of the MDAs that my staff audited nationwide. I also extend my gratitude to my Management and officers for their goodwill and restraint that has enabled me to present this report to Parliament.
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