Report of the Auditor-General on the Public Accounts of Ghana, Pre-University Educational Institutions for the Financial Year Ended 31 December 2015
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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 PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 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 30 November 2016 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 2016 TRANSMITTAL LETTER My Ref. No. AG.01/109/Vol.2/102 Office of the Auditor-General Ministry Block ‘O’ P O Box MB96 Accra Tel. (0302) 662493 Fax (0302) 675496 30 November 2016 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 2015 In pursuance of Article 187(5) of the 1992 Constitution, I have the honour to present to you to be laid before Parliament, my report on the Pre-University Educational Institutions for the financial year ended 31 December 2015. This report is a consolidation of the significant findings and recommendations made during routine audits carried out by my staff under my direction and formally conveyed to the management of the Institutions in management letters and annual reports on their financial statements. The report is in three parts. The first part outlines our mandate, the audit objectives and approach as well as an overview of reported irregularities. Part II provides a summary of the findings and recommendations while Part III gives details of the findings on regional basis. Even though 90 Institutions failed to prepare annual financial statements for audit validation, their financial transactions and related activities were Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational Institutions for the financial year ended 31 December 2015 i subjected to transactional audits and the irregularities noted have been included in this report. The irregularities include misappropriation of funds, unaccounted payments, uncompetitive procurements, payment of salaries to separated staff, unaccounted stores and statutory tax infractions which amounted to GH¢21.64 million. The irregularities resulted from lack of commitment on the part of the Heads of Schools to ensure compliance with established internal control measures, administrative rules and legislation governing the management of financial resources. I wish to reiterate my recommendation for the Director-General of the Ghana Education Service to strengthen monitoring and supervision of activities of the Institutions and impose sanctions on Heads and Accountants who persistently fail to adhere to public financial management requirements. I acknowledge the cooperation and assistance accorded my officers by the Director-General of GES, management and staff of the various Pre-University Educational Institutions. The invaluable contributions of my staff towards the production of this report are also hereby acknowledged. 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 the financial year ended 31 December 2015 ii REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE – UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 TABLE OF CONTENTS Para(s) Page Transmittal letter i PART I Executive summary 1 - 6 1 PART II Summary of findings and recommendations 7 – 25 4 PART III Ashanti Region 26-89 9 Brong Ahafo Region 90-152 25 Central Region 153-201 37 Eastern Region 202-260 47 Greater Accra Region 261-323 63 Northern Region 324-401 79 Upper East Region 402-459 94 Upper West Region 460-488 105 Volta Region 489-540 112 Western Region 541-576 123 Appendices Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational Institutions for the financial year ended 31 December 2015 iii REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 PART I EXECUTIVE SUMMARY Introduction The accounts and related records of Pre-University Educational Institutions for the financial year ended 31 December 2015 have been audited by my office in accordance with Article(2) of the 1992 Constitution of the Republic of Ghana. 2. We conducted the audits appropriate to the standards of the International Organisation of Supreme Audit Institutions (INTOSAI) and it took into consideration the criteria established for public financial management in the now repealed Financial Administration Act of 2003 (Act 654), the Financial Administration Regulations (FAR) of 2004 (L.I. 1802), the Public Procurement Act of 2003 (Act 663), the Financial and Accounting Instructions (FAI) for secondary schools, Training Colleges and Educational Units issued by the Ghana Education Service (GES), the Stores Regulations of 1984, and the then Internal Revenue Act of 2000 (Act 592), the Value Added Tax Act of 1998 (Act 546) and the Audit Service Act of 2000 (Act 584). 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: the accounts had been properly kept; Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational Institutions for the financial year ended 31 December 2015 1 all public monies collected had been fully accounted for and the applicable rules, regulations and procedures are sufficient to provide an effective check on the assessment, collection and proper allocation of revenue; monies had been spent for the purpose for which they were appropriated and expenditures made as authorized; essential records were maintained and 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 as at the end of the year. 4. The findings and recommendations contained in this report were discussed with the Heads of the Institutions and their comments, where necessary, were incorporated in management letters and annual reports issued to them after each audit. This report therefore covers, on regional basis, issues which in my opinion, should be brought to the attention of Parliament compliant with Article 187(5) of the Constitution. Internal controls 5. Although the control procedures instituted by the management of the institutions were found to be generally satisfactory, we noted lapses and irregularities which were mainly due to non-adherence to existing controls and financial rules and regulations. Significant findings for the year ended 31 December 2015 6. The significant findings on malfeasance and other irregularities noted in all the regions occurred in the areas of cash management, payroll, procurement and Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational Institutions for the financial year ended 31 December 2015 2 stores, statutory tax and contract management. These have been summarized below together with their comparative figures for the 2013 and 2014 financial years. Summary of financial irregularities for 2015 Amount (GH¢) No. Type of irregularity 2013 2014 2015 1 Cash management 7,034,283.49 4,505,400.96 6,894,716.24 2 Procurement/Stores 7,736,823.58 6,177,043.77 12,075,399.85 3 Payroll 586,732.28 553,697.87 343,596.44 4 Contract 1,202,331.12 1,147,817.83 5 Tax 629,875.40 682,939.48 1,231,606.89 Total 15,987,714.75 13,121,413.20 21,693,137.25 Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational Institutions for the financial year ended 31 December 2015 3 PART II SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS 7. A summary of my significant findings and recommendations are provided in the succeeding paragraphs with the details provided in Part III of this report under the various irregularities found in each region. Cash irregularities 8. Misappropriation of funds occurred at three institutions in Ashanti and Northern Regions where an amount of GH¢36,819.65 was misappropriated by officials. The amounts were revenue from hire of school mattresses at Ejuraman SHS (GH¢3,372.00) and school fees at St. Monica’s SHS (GH¢27,610.45) both in the Ashanti Region, and PTA funds at Vittin SHS (GH¢5,837.20) in the Northern Region. We recommended retrieval of the amounts with sanctions. 9. PTA dues and other student fees amounting to GH¢538,974.33 could not be accounted for at seven schools in Ashanti, Brong Ahafo, Northern and Upper East Regions. This involved GH¢125,220.00 house dues collected by the House Mistress of Yaa Asantewa Girls SHS that was not accounted for, a total of GH¢197,587.83 fees paid to bank by three schools in the Brong Ahafo and Eastern Regions but not credited to the schools’ bank accounts, and PTA dues in the sum of GH¢216,166.50 paid to Executives at three schools in the Northern and Upper East Regions that were not accounted for. We recommended retrieval of the amounts from the officials with sanctions in the absence of accountability.