Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (Mdas) for the Year Ended 31 December 2012
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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 for the year ended 31 DECEMBER 2012 MINISTRIES, DEPARTMENTS AND OTHER AGENCIES OF THE CENTRAL GOVERNMENT TABLE OF CONTENTS Para- Pages Graph Transmittal letter PART I Introduction 1-3 1-2 Audit objectives 4-7 2-4 Summary of significant findings and 8-28 4-14 Recommendations PART II Summary of findings & recommendations 29-124 15-54 By MDAs PART III Ministry of Finance & Economic Planning 125-375 55-134 Ministry of Health 376-421 134-151 Ministry of Food & Agriculture 422-570 151-188 Ministry of Education 571-847 189-261 Ministry of Employment & Social 848-899 261-276 Welfare Ministry of Foreign Affairs 900-928 276-284 Ministry of Interior 929-1045 284-312 Ministry of Water Resources Works & 1046-1088 312-323 Housing Ministry of Roads & Highways 1089-1154 324-340 Ministry of Local Government & 1155-1175 340-345 Rural Development Ministry of Lands, Forestry & Mines 1176-1215 346-356 Ministry of Information 1216-1220 357-358 Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2012 Ministry of Defence 1221-1245 358-363 Ministry of Justice & Attorney General’s 1246-1254 363-365 Department Ministry of Youth & Sports 1255-1261 366-367 Ministry of Trade & Industries 1262-1269 368-369 Judicial Service 1270-1342 370-389 Other Agencies 1343-1436 390-412 Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2012 TRANSMITTAL LETTER Ref. No. AG.01/109/Vol.2/65 Office of the Auditor-General Ministries Block “O” P. O. Box M.96 Accra Tel.: (0302) 662493 Fax: (0302) 675496 10 September 2013 Dear Mr. Speaker, REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2012 I have the honour to forward to you to be laid before Parliament, my report on the audit of the public accounts of Ghana for the year ended 31 December 2012. This particular report relates to regularity audits carried out at Ministries, Departments and Agencies of Central Government. Significant findings and recommendations made were consolidated for the compilation of this report. The respective findings were conveyed to the institutions audited through Management Letters issued directly to them. Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2012 There has not been significant compliance with financial reporting requirements and internal controls though record-keeping continued to improve. Financial indiscipline and activities contrary to the Financial Administration Regulations, L.I. 1802 still persisted. Some MDAs have prepared and submitted their financial statements but these have not met fully the requirements of Section 41 of the Financial Administration Act and are not commented on in this report. It is my expectation that with the roll out of the Ghana Integrated Financial Management Information System (GIFMIS) there will be an improvement in the situation such that my reports can now embody my audit opinion on MDAs’ financial statements. I must, in this regard, repeat my previous submission to the House that timely preparation of sound and accurate consolidated financial statements and their submission by the MDAs for subsequent audit should be seen as a key requirement for continued assistance for the Central Government, and Local Government Units. I would like to express my appreciation to my Deputies and my staff for their tireless efforts in carrying out the work that leads to the production of this report, in the face of daunting financial and logistic challenges to this task. I acknowledge also the cooperation and assistance received from the management and staff of the audited institutions. Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2012 My final appreciation goes to Parliament and the Public Accounts Committee for their collaboration in dealing with my reports. Yours Sincerely, AUDITOR-GENERAL THE RT. HONOURABLE SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA. Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2012 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA – MINISTRIES, DEPARTMENTS AND OTHER AGENCIES (MDAs) FOR THE YEAR ENDED 31 DECEMBER 2012 PART I Introduction I have, in accordance with Article 187(2) of the 1992 Constitution, audited the transactions and accounts of Ministries, Departments and Agencies (MDAs) of Central Government and present, herewith, the results of the financial and regularity audit of the MDAs. The report covers audits carried out between 2011 and 2012, since the issuance of my last report, and contains matters of significance within the audited periods that I believe ought to be brought to the attention of the House. 2. The relevant provisions of the Constitution and subsidiary legislations governing public financial management in Ghana were taken into consideration in performing the audits. Notable amongst these are the Financial Administration Act, 2003 (Act 654), the Financial Administration Regulations of 2004, the Public Procurement Act, 2003 (Act 663), and other relevant legislations, as well as international auditing standards and best practices. Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments 1 and Other Agencies (MDAs) for the year ended 31 December 2012 Scope of audit 3. The audits were planned to cover corporate governance and management, including internal audit arrangements, cash management, budgetary control, payroll and staff costs, procurement and contract management, assets management and control, accounts, and their underlying records. Audit objectives 4. Section 13 of the Audit Service Act, 2000 (Act 584) allows me to examine, in such manner as I think fit, the programmes, activities and financial operations of MDAs and ascertain whether, among other things: expenditure appropriations authorised by Parliament have been utilised towards approved programs and objectives and the intended purposes have been achieved; proper books of accounts and essential records have been maintained and that sufficient internal controls have been introduced and exercised to comply with the public financial management requirements and public assets and property have been safeguarded; and all public monies due to be collected have been duly collected and fully accounted for and that rules and procedures applied were sufficient to facilitate an effective 2 Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended 31 December 2012 check on the assessment, collection and proper allocation of revenue. I also sought to: ensure and encourage proper and prudent management of public funds and resources; provide assurance on the adequacy and effectiveness of existing regulations, rules and related procedures in managing and administering the affairs of the MDAs and make recommendations towards their improvement where necessary. Audit approach 5. A combination of systems and risk-based audit approach was used to carry out the various audits. These included knowing and understanding the MDA and the environment within which it exists and operates, as part of the audit planning process. Governance arrangements and the related regulatory framework as applicable were studied closely. 6. Issues, conclusions and recommendations including those presented in this report, intended to improve and further deepen financial management and controls, were discussed with the MDAs during exit conferences. The explanations, comments and written responses of the heads of the MDAs, where given, were incorporated Report of the Auditor-General on the Public Accounts of Ghana – Ministries, Departments 3 and Other Agencies (MDAs) for the year ended 31 December 2012 in management letters and subsequently issued to them. It was expected that management action would be taken to address the audit findings and recommendations conveyed. 7. In compiling this report for submission to Parliament, the matters selected for inclusion herein were again referred for the comments of heads of the MDAs and communication of any updates on the status of the matters referred to in order that this report would be based on confirmed and up to date facts. Some MDAs appreciated and acted on the opportunity whereas others did not respond. Significant findings and recommendations 8. I have the honour to present in the following paragraphs a summary of the significant findings and matters that came to my attention and the conclusions and recommended measures and actions that I believe should be taken towards correcting the issues of concern contained in this report. 9. We observed that mechanisms put in place to protect Government revenue at the ports and enhance increased revenue collection while decreasing Customs Officers abuse of discretionary power, among other purposes, were not being as effective as expected. The inefficiencies within had led to petroleum tax revenue