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 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. Finding: Out of 758 Pre-Tertiary Recommendation: The Auditor- Educational Institutions that were G e n e r a l r e c o m m e n d s t h a t audited, 705, representing 93% managements of the institutions submitted financial statements as at should put in place effective December 31, 2019 to the Audit mechanisms to boost the collection Service for validation in compliance of the debts. with the PFM Act 2016 (Act 921) and t h e F i n a n c i a l A c c o u n t i n g 3. Finding: At the end of the 2019 Instructions (FAI) for Schools and financial year, the 705 schools Colleges. whose financial statements were validated, were indebted to students, Recommendation: The Auditor- suppliers, and other ser vice General recommends that the Heads p r o v i d e r s t o t h e t u n e o f of the defaulting schools should GH¢83,021,213.55. comply with the PFM Act and FAI and submit their financial statements on Recommendation: The Auditor- time for audit and organize further G e n e r a l r e c o m m e n d s t o t h e training in the preparation of management of the institutions to financial statements for those honor their obligations in order to Accounting Officers who lack the avoid legal suits and to continue to capacity in this area. enjoy the goodwill and confidence of their creditors. 2. Finding: Validations of financial statements submitted by the 705 Specific Findings and schools in the country disclosed that Recommendations a total of GH¢108,425,771.90 was CASH IRREGULARITIES owed by students, staff and other debtors as at December 31, 2019. 4. Finding: Management of three Debts owed by students including schools expended a total amount of completed ones amounted to GH¢643,885.13 on goods, works and GH¢91,065,568.38 representing 84% services for the period under review of total debt owed to the schools. without an approved budget contrary to Section 7 of the Public Financial

WHERE IS OUR MONEY? 5 Management Act 2019. The schools violation of Regulation 46 of the are Islamic Girls SHS, Suhum, Public Financial Management Diaspora Girls SHS (Obodan) and Regulations, 2019, (LI. 2378). The Suhum Presby SHS. institutions are Komenda College of Education, Adankwaman Senior Recommendation: The Auditor- High School, Academy of Christ the General recommends that the Heads King SHS, Ola College of Education, and Accountants of the three Presbyterian Senior High School, Schools should be sanctioned in La; Tema Technical Institute, McCoy accordance with Section 96 of the College of Education, Nadowli; Sovie Act. CYO Technical/Vocational Institute, Sacred Hearts Senior High School. 5. Finding: Six Schools could not account for a total revenue of Recommendation: The Auditor- GH¢316,013.59 collected from G e n e r a l r e c o m m e n d s t h a t school fees, rent, canteen services, management of the schools should and stock sales in violation of recover the amount from the staff Regulation 46 of the Public Financial concerned and further institute Management Regulations 2019 L.I measures to strengthen the rate of 2 3 7 8 . T h e s e a r e O d u p o n g recovery of advances granted. Community Day Senior High School, Bia Lamplighter College, Dormaa 7. F i n d i n g : T h e E c o n o m i c a n d Vocational Training Institute, Organized Crime Unit in College of Education, St failed to refund to Ola College of John’s Grammar Senior High, Kpone Education, advances of GH¢ Community Senior High. 8,645.00 recovered from staff contrary to Regulation 46 of the Recommendation: The Auditor- PFMR 2016, LI 2378. G e n e r a l r e c o m m e n d s t h a t management of the schools should Recommendation: The Auditor- recover the amount from the General recommends management defaulting officers and sanction to recover the total amount from them. EOCO and pay same to the College’s account. 6. Finding: Fifty (50) staff in nine institutions defaulted in repayment 8. Finding: The Member of Parliament o f s a l a r y a d v a n c e s t o t a l i n g (MP) for Jaman North failed to honor GH¢77,963.20 granted them in an amount of GH¢13,868.17 owed by

6 WHERE IS OUR MONEY? 10 past students he sponsored at Recommendation: The Auditor- Nafana SHS. General recommends that, the amount of GH¢4,270.00 should be Recommendation: The Auditor- recovered from him or his guarantor General recommends management with interest for three years at the to pursue the MP for the settlement prevailing bank rate. of the outstanding sponsorship amount of GH¢13,868.17 without 11. F i n d i n g : A r e v i e w o f b a n k further delay. reconciliations of four schools (Ekumfi TI Ahmadiyya SHS, Bisease 9. Finding: Forty-five (45) institutions Secondary Commercial School, from ten Regions failed to collect Senior High School, rent due from 996 staff and Millicom Odorgonno Senior High School) Company (TIGO) amounting to disclosed that lodgments totaling GH¢504,243.92 in contravention of GH¢18,092.37 made between 2016 Section 46 of the Public Financial and 2019 have not been credited to Management Regulation 2019, LI the Schools’ Bank Accounts by their 2378. (See Appendix 1 for the list of bankers. schools). R e c o m m e n d a t i o n : W e Recommendation: The Auditor- recommended that managements of G e n e r a l r e c o m m e n d s t h e the four schools should take legal Headmasters of the institutions to actions against the banks to recover recover the outstanding rent directly the amounts with interest. from the salaries of defaulting tenants and put measures in place 12. Finding: Two Schools (Kwegyir that would ensure that staff and Aggrey Senior High Tech and Binduri Millicom Company (TIGO) pay their Community Senior High School) rent promptly. could not access their total funds of GH¢184,583.66 at their banks 10. Finding: Mr Martin Ankomah, a contrary to Section 7 of the Public former librarian who was granted a Financial Management Act 2016, Act s p o n s o r s h i p p a c k a g e o f 921. GH¢4,270.00 by the College of Education to pursue a Masters’ Recommendation: The Auditor- Degree in Information Systems G e n e r a l r e c o m m e n d s t o t h e failed to serve the mandatory three- management of the two schools to year bond. notify the Regulators - Bank of

WHERE IS OUR MONEY? 7 Ghana, and Apex Bank about this to recover an outstanding amount of development to enable the schools GH¢16,179.00 from six students who access their funds. allegedly stole computers and accessories valued at GH¢21,365.00 13. Finding: The Headmaster and the and damage to school properties P.T.A of Kpone Community Senior costing GH¢810.00. High School converted part of the E- block of the school to a hostel and Recommendation: The Auditor- collected a total of GH¢132,096.00 General recommends that the as hostel fees without authorization. Headmaster should pursue and ensure prompt recovery of the Recommendation: The Auditor- amount. G e n e r a l r e c o m m e n d s t h e Headmaster and the P.T.A Chairman 16. Finding: In 2018 the Principal of Ola should refund the amount of College of Education contracted a GH¢132,096.00 collected from the loan of GH¢250,000.00 with an students. interest of GH¢300,000.00 from Akatakyiman Rural Bank without 14. Finding: The Headmistress of approval from the College Council, M p o h o r S e n i o r H i g h S c h o o l Director-General of Ghana Education collected unapproved sanitation Service, Minister for Education or the fees of GH¢15.00 per semester from Minister for Finance contrary to 1,085 students amounting to Section 25 of the Public Financial GH¢32,550.00, which were not Management Act, 2016, Act 921. accounted for in contravention of Section 47, of the Public Financial Recommendation: The Auditor- Management Act 2016 (Act 921). General recommends that the Principal and the Accountant should Recommendation: The Auditor- desist from the practice and always General recommends that the seek approval from the appropriate Headmistress should refund the a u t h o r i t y b e f o r e l o a n s a r e amount of GH¢32,550.00 to the c o n t r a c t e d . W e f u r t h e r school and be sanctioned as recommended that the two officers required under Section 96 of the should be duly sanctioned for non- Public Financial Management Act compliance with the Act. (Act921). 17. Finding: St. Augustine’s College paid 15. Finding: Management of Mankessim unclaimed Scholarship bursaries of Senior High Technical School failed

8 WHERE IS OUR MONEY? GH¢9,258.00 to the Economic and imprest of GH¢117,487.33 granted Organized Crime Office (EOCO) to them after discharging their i n s t e a d o f t h e S c h o l a r s h i p respective official assignments Secretariat contrary to Regulation 78 contrary to Regulation 102 of the of the Public Financial Management Public Financial Management Regulations, 2019 (L.I.2378). Regulation 2019.

Recommendation: The Auditor- Recommendation: The Auditor- G e n e r a l r e c o m m e n d s t h a t General recommends that the funds management should recover the should be adjusted to personal total amount of GH¢9,258.00 from advance accounts in the name of the E O C O a n d p a y s a m e t o t h e imprest holders and recovered Scholarship Secretariat. accordingly.

18. Finding: Management of Adjoafua 20. F i n d i n g : M a n a g e m e n t o f 4 1 Senior High school and Dadieso institutions could not substantiate Senior High School failed to deposit total payments of GH3,371,391.80 a total amount of GH¢24,108.00 for goods and services with the collected into the schools’ accounts relevant supporting documents to before spending as required by law, authenticate them contrary to but rather directly expended it on Regulation 78 of the Public Financial various activities contrary to Management Regulations (PFMR), Regulation 50 of the Public Financial 2019 (L.I. 2378). (See Appendix 2 for Management Regulations, 2019 (LI. the list of schools). 2378). Recommendation: The Auditor- Recommendation: The Auditor- General recommends that the Heads General recommends that, all of the institutions and their payment of fees should be made by Accountants should refund the bankers draft or payment orders to amount to the schools’ accounts. avoid losses in future. 21. Finding: The management of two 19. Finding: Fifteen (15) members of institutions (Bongo Senior High staff from three institutions in the School & Sekondi College) overpaid (Efutu Senior High two suppliers by GH¢20,942.13 Technical School, Komenda College contrary to Regulation 78 of Public of Education, Adankwaman Senior Financial Management Regulation High School) did not retire a total 2019 (L.I 2378).

WHERE IS OUR MONEY? 9 Recommendation: The Auditor- to pay the students in cash or allow General recommends that, the parents and guardians to open overpayments should be recovered accounts in trust for the students for from the suppliers, failure of which onward transfer of the amounts to the Headmasters and Accountants the students. should be held liable. 24. Finding: The College of 22. Finding: Contrary to Section 7 of the Education paid Research and Book Public Financial Management Act, Allowances totaling GH¢147,746.30 2016 (Act 921), Manhean Senior to 29 tutors who failed to submit High Technical School made a direct their research proposals for review, debit of GH¢19,298.79 in favour of certification, and publication the Director General of the Ghana contrary to Regulation 78 of the Education Service (GES). Public Financial Management Regulations (PFMR), 2019 (L.I. Recommendation: The Auditor- 2378). G e n e r a l r e c o m m e n d s t h a t management to provide the relevant Recommendation: The Auditor- justification for the transfer, failing G e n e r a l r e c o m m e n d s t h a t w h i c h t h e t o t a l a m o u n t o f management recovers the amount GH¢19,298.79 should be recovered from the 29 tutors, failing which, the from GES or in default the amount amount of GH¢147,746.30 should be s h o u l d b e r e f u n d e d b y t h e refunded by the Acting Principal and Headmistress and the Accountant. the Finance Officer. The Acting Principal should ensure that in 23. Finding: Management of Hwidiem f u t u r e , b o o k a n d r e s e a r c h Senior High school failed to disburse allowances are paid to only tutors an amount of GH 31,500.00 received whose research proposals have under the Secondary Education been reviewed, certified, and Improvement Project (SEIP) for the published by the Staff Development benefit of 42 students contrary to and Research Committee. Section 7 of the Public Financial Management Act, 2016 (Act 921). 25. Finding: Management of six schools could not account for fuel and other Recommendation: The Auditor- lubricants purchased totaling G e n e r a l r e c o m m e n d s t h a t G H ¢ 9 5 , 4 4 6 . 5 2 c o n t r a r y t o management should contact the Regulation 78 of the Public Financial fund providers and obtain approval Management Regulations (PFMR),

10 WHERE IS OUR MONEY? 2019 (L.I. 2378). These schools are Sandema Senior High School, Akumadan Senior High School, Guakro Effah Senior High School, Obuasi Senior High Technical (Tuobodom), Kwarteng Ankomah School, Serwaa Nyarko Senior Senior High School, Techiman, School, Akyerensua Senior High Techiman Senior High School, School, Nkoranman Senior High Techiman. School, Wulugu Senior High School. Recommendation: The Auditor- Recommendation: The Auditor- General recommends that the General recommends that the amount should be recovered from Headmasters, Accountants and the Heads and Accountants of the Transport officers should refund the institutions and that the same be amount involved. paid into their respective accounts.

PROCUREMENT 27. Finding: The Principal of Sefwi & STORES IRREGULARITIES College abrogated the contracts of Sarfo Trading valued at 26. F i n d i n g : M a n a g e m e n t o f 1 6 GH¢171,584.00 for the supply of institutions from seven Regions food items without justification and m a d e t o t a l p a y m e n t s o f re-awarded it to Bert B. Ventures for GH¢685,705.48 for maintenance of GH¢185,185.00 resulting in an official vehicles and buildings increase in contract price by w i t h o u t W o r k s O r d e r a n d GH¢13,601.00 contravening Section Performance Certificates to support 22 of the Public Procurement Act the expenditures contrary to 2004, Act 663 as amended by Regulation 78 of the PFMR, 2019 (L.I. Section 8 of Act 914. 2 3 7 8 ) . T h e i n s t i t u t i o n s a r e Akumadan Senior High school, Recommendation: The Auditor- Agogo State SHS, St. Joseph's General recommends that the College of Education, Ghana Principal should refund the amount National College, Swedru School of of GH¢13,601.00 to the College. Business, Komenda College of Education, Ola College of Education, 28. Finding: The Sefwi Wiawso College K o f o r i d u a Te c h . I n s t i t u t e – of Education awarded contracts , Saviour Senior High worth GH¢269,778.99 to Bert B. School – Osiem, Ada Senior High ventures for the supply of various School, Ghanata Senior High School, goods and services by handpicking Prampram Senior High School, the supplier contrary to Section 40 of

WHERE IS OUR MONEY? 11 Public Procurement Act 2003 (Act Technical/Vocational Institute – 663) as amended. Kaleo, Kaleo SHTS, Wa Technical Institute, T.I. Ahmadiyya Senior High Recommendation: The Auditor- School – Wa, St Peters Senior High General recommends that the School, Nkwatia. Principal should be sanctioned in accordance with Section 92 of the Recommendation: The Auditor- Public Procurement Act 2003 (Act G e n e r a l r e c o m m e n d s t o 663) as amended by Section 51 of management of the nine schools to Act 914. take the necessary action to ensure that the Buffer Stock Company 29. Finding: Managements of three Limited deliver the outstanding food schools (Samuel Otu Senior High items without fail. School, Essiama SHS, Sekondi College (SHS)) could not account for 31. Finding: Dunkwa Senior High store items costing GH¢106,027.10 Technical School failed to record and contrary to Section 52 of the Public account for food items worth Financial Management Act, 2016 GH¢48,400.00 supplied by Rackman (Act 921). Ventures/National Buffer Stock Company in violation of Section 52 of Recommendation: The Auditor- the Public Financial Management General recommends recovery of Act, 2016 Act 921. G H ¢ 1 0 6 , 0 2 7 . 1 0 f r o m t h e Headmasters and the Accountants Recommendation: The Auditor- of the Schools. G e n e r a l r e c o m m e n d s t o t h e Headmaster to ensure that the 30. Finding: Various food items valued at Senior Storekeeper accounts for the GH¢170,722.00 expected to be i t e m s , o r t h e a m o u n t o f supplied to nine Schools in two GH¢48,400.00 be jointly refunded by regions for the year 2019 by Buffer the Headmaster and the Senior Stock Company Limited were not Storekeeper. delivered as at December 31, 2019. In accordance with Regulation 79 of 32. Finding: Shama Senior High School the Public Financial Management has not put to use a milling machine Regulations 2019, (LI. 2378). The donated to the School in 2017 in schools are Queen of Peace SHS – violation of Section 52 of the Public Nadowli, Daffiama SHS, Wa SHS, Wa Financial Management Act 2016, S H T S , S t . B a s i l i d e s (Act 921).

12 WHERE IS OUR MONEY? Recommendation: The Auditor- management should recover the General recommends that the laptop computers or their market Headmistress should ensure the mill values should be recovered from the is installed and used as intended to officers responsible for the loss. cut down the cost of feeding. CONTRACTS/ASSETS 33. Finding: Management of ten schools IRREGULARITIES failed to recover 1,086 text/library books from students and staff 35. Finding: Two completed classroom contrary to Section 52 of the Public a n d a d m i n i s t r a t i o n B l o c k s Financial Management Act, 2016 c o n s t r u c t e d i n t w o s c h o o l s (Act 921). (Refer to Page 13, number (Adanwomase SHS and Kaleo Senior 56 of the main report). High Technical School) valued at GHC 1,475,213.32 were not in use Recommendation: The Auditor- due to lack of furniture. G e n e r a l r e c o m m e n d s t o management to notify the parents of Recommendation: The Auditor- the students for the retrieval or G e n e r a l r e c o m m e n d s t h a t surcharge the parents with cost of managements of the schools should the books, failing which the Heads of liaise with the Ministry of Education the schools should be held liable for to expedite action on the provision of replacements. the furniture to ensure that the projects are put to use.

34. Finding: The managements of four 36. Finding: A transformer installed at schools could not produce 32 laptop college of Education at a computers and accessories for our cost of GH¢48,000.00 is not inspection contrary to Section 52 of functioning. the Public Financial Management Recommendation: The Auditor- Act, 2016 (Act 921). The schools are G e n e r a l r e c o m m e n d s t o t h e Ahafoman Senior High Technical Principal to write to the GETFUND School, Methodist Technical Secretariat to engage the contractor Institute (Sunyani), Mankessim to replace the faulty transformer. Senior High Technical School, Presbyterian Senior High School 37. Finding: Senior (Osu). High School failed to put to use a furnished ICT lab funded by Televic Recommendation: The Auditor- Group/African bag Limited at a cost G e n e r a l r e c o m m e n d s t h a t

WHERE IS OUR MONEY? 13 of GH¢100,000.00 under the Recommendation: The Auditor- Secondary Education Improvement General recommends that the Heads Programme (SEIP) due to damage of the institutions and the salary Rack System. validators should refund the amount if the unearned salary could not be Recommendation: The Auditor- recovered from beneficiaries or the G e n e r a l r e c o m m e n d s t o t h e next of kin of the separated staff. Headmaster to contact the supplier to replace it to enable the school put 40. Finding: Nine separated staff of two the laboratory to its intended use. institutions (Presbyterian Boys’ Senior High School, Accra Technical 38. Finding: Contrary to Section 52 of the Tr a i n i n g C e n t r e ) h a v e b e e n Public Financial Management Act, occupying the schools’ bungalows 2016 Act 921, the Kpandai and since 2015. Kumbungu Senior High Schools served meals to students under trees Recommendation: The Auditor- because of the failure to maintain the General recommends that the heads dining halls which led to their of the two institutions should collect collapse. rent from the separated staff for the period of unlawful occupancy of the Recommendation: The Auditor- bungalows and ensure that they G e n e r a l r e c o m m e n d s t o vacate the bungalows immediately. management to appeal to the A s s e m b l i e s a n d G E T F U N D TAX AND SSNIT IRREGULARITIES Secretariat through the Ghana Education Service to construct 41. Finding: Three institutions in three dining halls for the schools. Regions paid total tax penalty of GH¢48,489.21 to GRA for failing to PAYROLL IRREGULARITIES withhold and remit taxes on supplies of goods and services contrary to 39. F i n d i n g : M a n a g e m e n t o f 5 7 Sections 116 and 117 of Income Tax institutions in 13 Regions paid Act 2015, (Act 896). The institutions u n e a r n e d s a l a r i e s t o t a l i n g are Hwidiem Senior High School, Ola GH¢681,324.89 to 108 separated College of Education (Cape Coast), staff contrary to Regulation 92 of the Komenda College of Education. Public Financial Management Regulation 2019, LI 2378. (See Recommendation: The Auditor- Appendix 3 for the list of schools). General recommends that the penalty amount of GH¢48,489.21

14 WHERE IS OUR MONEY? should be recovered from the Heads Afiadenyigba Senior High School, and Accountants who managed the Adjoafua Senior High School, schools during the periods of default College of Health. in accordance with Section 61 of the seventh schedule of the Income Tax Recommendation: The Auditor- Act 2015. General recommends that the Headmasters and Accountants of 42. F i n d i n g : M a n a g e m e n t o f 2 2 these institutions should remit the Institutions from seven Regions tax of GH¢174,168.53 to the Ghana failed to withhold taxes totaling Revenue Authority to avoid penalty GH¢113,228.00 from payments charges. made for goods and services contrary to Section 116 of Income 44. Finding: Upon a directive from EOCO, Tax Act, 2015 (Act 896). (Refer to two institutions from Upper East Appendix 4 for the list of schools). Region wrongly paid tax revenue amounting to GH¢25,736.64 to Recommendation: The Auditor- EOCO instead of the Commissioner General recommends that the General of the GRA. The institutions Accountants of the institutions are Kusanaba Senior High and should pay the total amount to the Zebilla Senior High school. Commissioner General of GRA and recover same from the payees in Recommendation: The Auditor- accordance with Section 117 (5) of General recommends that the the Income Tax Act, 2015, (Act 896). H e a d m a s t e r s s h o u l d o b t a i n evidence that the amount had been 43. Finding: Ten schools in six Regions duly transferred to Ghana Revenue failed to remit withheld taxes of Authority or recover the amount from GH¢213,691.05 to GRA contrary to EOCO and pay same to GRA. Section 117 of the Income Tax Act, 2015 (Act 896). The schools are 45. Finding: Three (3) schools procured Hwidiem Senior High School, goods and services valued at S w e d r u S c h o o l o f B u s i n e s s , GH¢342,860.00 from entities Komenda College of Education, and w i t h o u t o b t a i n i n g V A T Kwanyako Senior. High/Tech Sch., invoices/receipts in contravention of Tamale Business Senior High Section 41 of the VAT Act 2013 Act School, Bongo Senior High, Gowrie 870. The schools are Komenda Senior High Technical Schools, Anlo Senior High/Technical School,

WHERE IS OUR MONEY? 15 Tamale Business Senior High contributions are remitted to SSNIT School, and Ullo Senior High School or be held liable for any penalty that in Jirapa. may be imposed on them for the delay. Recommendation: The Auditor- G e n e r a l r e c o m m e n d s t o OTHER MATTERS managements of the schools to ensure that purchases are made 48. Finding: 140 GET Fund and other from VAT registered entities and VAT special funded projects under receipts obtained during payment to construction in 63 institutions in comply with the above provision. eleven Regions had been abandoned for periods up to 14 years contrary to Section 52 of the Public Financial 46. Finding: Two schools (Holy Child Management Act, 2016 (Act 921). College of Education, Sefwi Wiawso Senior High Technical School) failed These institutions include t o r e m i t S o c i a l S e c u r i t y SHS, Bimbilla Senior High School contributions of 26 temporal staff and Bagabaga College of Education. totaling GH¢8,759.75 to SSNIT contrary to Section 3 of the National Recommendation: The Auditor- Pension Act 2008, (Act 766). G e n e r a l r e c o m m e n d s t o managements of the institutions to 47. Recommendation: The Auditor- pursue the funding sources to G e n e r a l r e c o m m e n d s t o provide the necessary funding for managements of the schools to early completion of the projects. e n s u r e t h a t t h e e m p l o y e e s ’

16 WHERE IS OUR MONEY? CONCLUSION

The Auditor-General’s Report unearths a total amount of GHC 23,492,458.34 unaccounted for, as a result of malfeasance, cash management, procurement and stores, contract management, payroll, asset management, rent payments, advances and tax irregularities. The recommendations made by the Auditor- General imposes a duty on the GES, School Managements/Boards, MoE among others to ensure the said funds are accounted for and measures put in place to forestall the recurrence of the malfeasance and irregularities, while ensuring strict compliance to existing laws, policies, and regulations. It is the responsibility of Civil Society to demand action from the responsible institutions as a way of ensuring accountability, value for money and greater spending efficiency in the management of scarce education sector funds.

WHERE IS OUR MONEY? 17 APPENDIXES

Appendix 1: Schools under finding 9 Technical Institute, St. Paul’s Senior High School, Mawuli Senior Adugyama Senior High school, High School, Archbishop Porter Girls' Akrokeri College of Education, Senior. High, Benso Senior High Tech. Akumadan Senior School, Mampong School, Bompeh Senior High Technical Technical College of Education, School, Fijai Senior High School, Mampong; , Seventh Sekondi College, St. John's Senior High Day Adventist SHS - -Ashanti, School, Takoradi Senior High School Tepa Senior High School, Tweneboah and Tarkwa Senior High School. Kodua Senior High School, ; Christ the King SHS, Obuasi – Millicom Appendix 2: Schools under finding 20 Co. Ltd (TIGO); Dormaa Vocational Training Institute, Berekum College of Adugyama SHS, Agogo State SHS, Education, Ghana National College, Amaniapong Senior High School, , Wesley Girls High Denyaseman Catholic SHS, Poano; School, Boa Amponsem Senior High, Effiduase SHTS - Effiduase; Manso Komenda College of Education, Adubia SHS, Manso Adubia, Obuasi Edinaman Secondary School, Jukwa SHTS, Derma Senior High School, SHTS, Ola College of Education, Yamfo Anglican Senior High School, Tech. Institute – (Akwatia), Kwabre Senior High School, Yefriman Apeguso Senior High School – (Osei Bonsu) Senior High School, (Apeguso), Senior High University Practice Senior High School, School – (Mpraeso), Nkwantia Presby Swedru School of Business, Mozano Senior High School – (Nkwantia), Pope Senior High School (SEIP), Mozano John Senior High School – (Koforidua), Senior High School, Dunkwa SHTS, SDA College of Education – (Asokore Diaso Senior High, Komenda College of Koforidua), St. Martin Senior High Education, Adankwaman Senior High School – (), Presbyterian Boys School, Ola College of Education, SHS, (Legon), St. John Grammar Senior Achiase Senior High School – Achiase, High, Odorgonno Senior High School, Bepong Senior High School – Bepong, Tema Technical Institute, Kpone SDA College Education – Asokore, Ada Community Senior High, Nkonya Senior High School, Ada Technical Senior High School, Bishop Herman School, Ningo Senior High School, College, Kpando Senior High School, Prampram Senior High School, Accra

18 WHERE IS OUR MONEY? Senior High School, Kpone Community High Technical School, Mozano Senior Senior High School, Tamale Business High School, Senior High School, Senior High School, Wapuli Community Aburaman Senior High School, Assin Day School, Wulensi Senior High State Senior High School, Efutu Senior School, Anlo Senior High School, Anlo, High Technical School, Akwamuman Anlo Technical Institute, Anlo, E.P. SHS – (), Klo Agogo SHS Senior high School, Three Town Senior –(Agogo), Koforidua Tech. Institution High School, Amenfiman Senior High – (Koforidua), Manya Krobo SHS School, Manso Amenfi Senior High (Odumase), Savior SHS – (Oseim), SDA School, Sekondi College, Sefwi Wiawso SHS AkimSekyere, St. Martin’s SHS College of Education. Bunkurugu (Nsawam), O’Reilly Senior High School, Senior High/Tech. School and Odorgonno Senior High School, Senior High Technical School Margaret Mary Senior High/Tech, Accra Senior High School, Kpone Appendix 3: Schools under finding 39 Community Sen. High School, Wulugu Senior High School, Pong-Tamale Adugyama Senior High School, Antoa Senior High School, Tolon Senior High S.H.S – (Antoa), Bodwesango Senior School, Zuarungu SHS, Bawku High School, Dwamena Akenten Senior Technical Institute, Bawku SHS, High School, Sekyedumase Senior Bolgatanga S.H.S, Tumu SHTS, Jamiat High School, T.I Ahamadiyya SHS – Al- Hidaya Islamat Girls SHS, Abor ( F o m e n a ) , K r o b e a A s a n t e Senior High School, Kpedze Senior Technical/Vocational, Mabang SHTS, High School, Wovenu Senior High Ahafoman Senior High Tech. School, Technical School, Adiembra Senior. Presbyterian Senior High School, High School, High School Mansen Senior High, Berekum College Senior, Holy Child College of Education, of Education, Akumfi Ameyaw Senior Sekondi School for the Deaf (Inchaban) High/Tech. School – (Techiman), and Shama Senior School High. Atebubu College of Education – (Atebubu), Kintampo Senior High Appendix 4: Schools under finding 42 School (Kintampo), Prang Senior High School – Prang, Ghana National Acherensua Senior High School, College, University Practice Senior Derma Senior High School, Gyamfi High School, Wesley Girls High School, Kumanini Senior High School, Ola Girls Academy Of Christ The King SHS, Senior High School, Agogo State SHS, , Methodist Senior Amaniampong Senior High Sch., High School, Twifo Hemang Senior Krobea Asante Technical /Vocational,

WHERE IS OUR MONEY? 19 Kumasi Academy School, Presbyterian Axim Girls' Senior. High School, College of Education – (Agogo), Senior High Technical School, Shalom Special School, Techiman HolyChild College of Education, St. Senior High School, Holy Trinity Augustine's SHS (), Enchi Cathedral Senior High School, Accra College of Education, Sefwi Wiawso Wesley Girls’ Senior High School, College of Education and Sefwi Margaret Mary Senior High/Tech. Wiawso Senior High Technical School. School, Adiembra Senior. High School,

20 WHERE IS OUR MONEY? This report is published by Africa Education Watch For Enquiries Contact Africa Education Watch, 25 Nii Torgbor Avenue, Est Legon. 0303 975 001 / 020 997 7899 / 020 188 8889 [email protected] AFRICA AfricaEduWatch EDUCATION WATCH www.africaeducationwatch.org 21