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African Watch Auditor Report

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African Watch Auditor Report AFRICA EDUCATION WATCH WHERE IS OUR MONEY? A COMPILATION OF KEY ACCOUNTABILITY ISSUES IN THE AUDITOR-GENERAL’S REPORT ON PRE-UNIVERSITY INSTITUTIONS FOR THE YEAR ENDED 31 DECEMBER, 2019 TABLE OF CONTENTS S ACKNOWLEDGEMENT - ii CHAPTER ONE 1 INTRODUCTION - 1 CHAPTER TWO 3 KEY FINDINGS AND RECOMMENDATIONS - 3 Table 1: Summary of Financial Irregularities on Regional basis for 2019 - 3 Trend of Financial Irregularities - 4 Table 2: Trend of Financial Irregularities - 4 CHAPTER THREE 5 FINDINGS AND RECOMMENDATIONS - 5 General Findings and Recommendations - 5 Specific Findings and Recommendations - 5 CONCLUSION - 17 APPENDIXES 18 Appendix 1: 45 Schools under finding 9 - 18 Appendix 2: 41 Schools under finding 20 - 18 Appendix 3: 57 Schools under finding 39 - 19 Appendix 4: 22 Schools under finding 42 - 19 ABLE OF CONTENT T i ACKNOWLEDGEMENT Africa Education Watch acknowledges the work of the Auditor-General of Ghana in the 2019 Audit Report of Pre-University Educational Institutions, flowing from which this report was compiled. The following staff and consultants working with Africa Education Watch are duly recognized for supporting the development of this report. They are: • Obed Quartey, Finance Associate • Bailon Afful, Communications Specialist • Kwasi Nimo Jnr, Programme Officer • Divine Kpe, Eduwatch Secondary Education Expert & Fellow • Sahadatu Ali, Research Associate The production of this report was led by Kofi Asare, Executive Director, Africa Education Watch. ACKNOWLEDGEMENT ii CHAPTER ONE INTRODUCTION Africa Education Watch works with Civil recommendations and the third, details Society Organizations, Governments, of the findings on regional basis. and the Private Sector to promote an equitable, accountable, and responsive To facilitate a collective stakeholder education system that assures of response to demand action from state quality and equal opportunities for all. agencies and bodies, including the Audit As part of our mandate to promote Report Implementation Committees accountability in the use of public funds responsible for overseeing the i n f u r t h e r a n c e o f e d u c a t i o n implementation of recommendations in d e v e l o p m e n t , w e h a v e b e e n respective institutions, Africa Education collaborating with the Audit Service to Watch has developed an abridged advocate the implementation of version of the 273 paged 2019 Auditor- recommendations in their reports on the General’s Report on Pre-University education sector. This has been Institutions. This simplified report necessitated by the successive inaction captures all key accountability issues by education sector agencies to enforce for necessary referencing and follow-up t h e r e c o m m e n d a t i o n s , m o s t action. i m p o r t a n t l y, t h e r e t r i e v a l o f The scope of the audit covers 758 Pre- unaccounted funds. University Educational Institutions. This In a report dated September 28, 2020, includes Senior High/Technical and pursuant to Article 187(5) of the 1992 Vocational Schools, Colleges of Constitution, the Auditor-General laid Education and Special Schools. The before Parliament his report on the Pre- audits were guided by Section 13 of the University Educational Institutions for Audit Service Act, 2000 (Act 584) which the financial year ended December 31, requires the Auditor-General to examine, 2019. The report was in three parts: The as he thinks fit, the accounts of audited first part outlined his mandate, the audit institutions and ascertain, among objectives and approach, and an others, whether in his opinion the ove r v i e w s u m m a r y o f fi n a n c i a l accounts had been properly kept; all irregularities. The second was the public monies collected had been fully s u m m a r y o f fi n d i n g s a n d accounted for and the applicable; rules, WHERE IS OUR MONEY? 1 regulations and procedures are undertaken with due regard to economy, sufficient to provide an effective check efficiency and effectiveness; and the on the assessment, collection and financial statements of the institutions proper allocation of revenue; monies give a true and fair view of their financial had been spent for the purpose for positions as at the end of the year. The which they were appropriated and Audit Service is commended for laying expenditures made as authorized; f o u n d a t i o n s f o r i n s t i t u t i o n a l essential records were maintained and accountability in the education sector. applicable rules and procedures applied were sufficient to safeguard and control the assets of the institutions; financial activities of the institutions had been 2 WHERE IS OUR MONEY? CHAPTER TWO KEY FINDINGS AND RECOMMENDATIONS Malfeasance and other irregularities were similar to those of previous years, were discovered in the areas of cash the magnitude was 84% higher management, procurement and stores, compared to 2018. This indicated a lack contract management, payroll, asset o f c o m m i t m e n t o n t h e p a r t o f management, rent payments, advances Ma n a g e m e n t o f i n s ti tu ti o n s to and taxes. Significant among the implement audit recommendations and irregularities were cash management, s a n c t i o n o f f e n d e r s t o e n f o r c e procurement and stores which together compliance with regulations. accounted for about 86% of total value of infractions. Even though the breaches Table 1: Summary of financial irregularities on Regional basis for 2019 Regions Cash GH₵ Procurement/ Contract Payroll Tax GH₵ Total GH₵ Stores GH₵ GH ₵ GH₵ Ahafo 68,348.13 301,242.00 - 48,117.02 9,398.89 427,106.04 Ashanti 315,989.69 588,533.37 - 56,171.95 38,194.75 998,889.76 Bono East 197,288.30 74,393.27 - 118,207.88 4,865.21 394,754.66 Bono 55,346.89 - - 22,997.00 - 78,343.89 Central 2,915,806.06 1,782,444.65 - 87,293.53 285,864.16 5,071,408.40 Eastern 765,008.63 1,019,950.97 - 92,633.34 - 1,877,592.94 Greater 936,732.23 1,555,883.24 - 25,231.86 9,457.81 2,527,305.14 Accra North East 55,776.23 78,088.00 - 10,254.71 4,807.58 148,926.52 Northern 527,349.69 12,290.00 48,000.00 82,832.35 186,600.42 857,072.46 Oti 182,640.80 54,622.65 - - - 237,263.45 Savana - - - 3,151.80 - 3,151.80 Upper 34,558.60 5,197,928.87 1,375,213.32 59,564.09 31,626.84 6,698,891.72 East Upper 8,818.00 1,941,396.25 - 27,115.80 91,198.00 2,068,528.05 West Volta 83,373.65 547,368.05 - 9,171.34 3,616.89 643,529.93 Western 134,389.07 304,179.99 100,000.00 - 13,200.16 551,769.22 North Western 432,272.34 89,329.10 - 103,344.93 282,977.99 907,924.36 Totals 6,713,698.31 13,547,650.41 1,523,213.32 746,087.60 961,808.70 23,492,458.34 Source: 2019 Report of the Auditor-General on Pre-University Educational Institutions WHERE IS OUR MONEY? 3 Ta b l e 1 p r e s e n t s t h e r e g i o n a l management, procurement and stores, distribution of all five categories of contract, payroll and tax, experienced irregularities identified in the Report. In increase in quantum over 2018 figures, terms of the quantum of funds involved signifying laxity by school Heads to in the reported irregularities per region, implement audit recommendations and Upper East (GHC 6.6 million), Central enforce regulations and directives. It (GHC 5.5 million), Greater Accra (GHC suggests that between 2018 and 2019 2.5 million) and Upper West (GHC 2.0 alone, there was a 50% increase in the million) lead the regional table, with the q u a n t u m o f c a s h m a n a g e m e n t lowest being recorded in Savanna (GHC irregularities, 112% increase in 3,151), Bono (GHC 78,343) and the North procurement related irregularities and East (GHC 148,926). It is further 87% increase in payroll irregularities, observed that, all the regions with the among others. The highest dimension of l o w e s t q u a n t u m o f fi n a n c i a l irregularities was recorded in taxes, irregularities are new regions with the which saw a 206% increase over 2018. smallest number of institutions. These irregularities and their trends point to only one deficit; the lack of Trend of Financial Irregularities enforcement of recommendations in previous audit reports and poor Table 2 shows the trend of irregularities compliance with laws and accounting identified in the various schools since practices. 2017. Infractions in all the areas; cash Table 2: Trend of financial irregularities No Type of 2017 2018 2019 % irregularity Amount Amount Amount Difference + or - (GH¢) (GH¢) (GH¢) 0ver 2018 over 2018 1 Cash 4,805,823.43 4,468,206.51 6,713,698.31 2,245,491.80 50.25% Management 2 Procurement/ 8,744,835.78 6,365,154.04 13,547,650.41 7,182,496.37 112.84% Stores 4 Contract 13,937,825.04 1,202,517.08 1,523,213.32 320,696.24 26.67% 3 Payroll 553,621.71 398,947.46 746,087.60 347,140.14 87.01% 5 Tax 659,859.47 313,417.02 961,808.70 648,391.68 206.88% Total 28,701,965.43 12,748,242.13 23,492,458.34 10,744,216.21 84.28% Source: 2019 Report of the Auditor-General on Pre-University Institutions 4 WHERE IS OUR MONEY? CHAPTER THREE FINDINGS AND RECOMMENDATIONS General Findings and Recommendations 1.
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