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Report of the Auditor-General on the Public Accounts of Ghana, Pre-University Educational Institutions for the Financial Year Ended 31 December, 2010

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Report of the Auditor-General on the Public Accounts of Ghana, Pre-University Educational Institutions for the Financial Year Ended 31 December, 2010 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER, 2010 Our Vision To be one of the leading Supreme Audit Institutions in the world, developing professional, excellent, and cost effective auditing services REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE – UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 TABLE OF CONTENTS Para(s) Page Transmittal letter i PART I Executive summary 1 - 7 1 PART II Summary of findings and recommendations 8 – 34 4 PART III Ashanti Region 35-113 11 Brong Ahafo Region 114-161 30 Central Region 162-225 41 Eastern Region 226-279 56 Greater Accra Region 280-335 71 Northern Region 336-359 83 Upper East Region 279-306 90 Upper West Region 360-395 98 Volta Region 396-476 106 Western Region 477-517 119 Appendices Report of the Auditor-General on the Public Accounts of Ghana, Pre-University Educational Institutions for the financial year ended 31 December 2010. TRANSMITTAL LETTER AG.01/109/Vol.2/58 Office of the Auditor–General Ministries Block ‘O’ P. O. Box M. 96 Accra Tel (0302) 662493 Fax (0302) 675496 22 October 2012 Dear Madam Speaker, REPORT OF THE AUDITOR GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE – UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 I have the honour to transmit, herewith, my report on the audit of Pre-University Educational Institutions for the financial year ended 31 December, 2010 to be laid before Parliament in accordance with Article 187(5) of the 1992 Constitution. 2. As usual the report has been structured into three parts. Part1 covers the introduction, audit objectives and approach as well as a summary of significant findings. Part II provides an overall summary of my recommendations on the significant findings whilst Part III gives the details of the findings and recommendations according to each Region. 3. The recurring lapses and deficiencies disclosed in this report, which have been identified in previous reports, are sources of concern to the Audit Service. These lapses which include cash irregularities, procurement, stores, payroll and tax irregularities, are all due to ineffective supervising controls over the financial activities of Accounting Officers by Heads of the Institutions. i Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational institutions for the financial year ended 31 December, 2010 4. Apart from weak supervisory controls, I attribute the situation to the refusal of the Institutions to comply with the Financial Administration Regulations of 2004, the Public Procurement Act of 2003, the Internal Revenue Act of 2000 and the Financial and Accounting Institutions for Secondary Schools, Training Colleges and Educational Units issued by the Ghana Education Service (GES). 5. I would also like to emphasise, as recommended in my previous reports, that the Director-General of Ghana Education Service should impose sanctions on Heads and Accountants of Institutions who persistently fail to submit their financial statements for audit certification on schedule or are regularly involved in the complete disregard of public financial management requirements. 6. The co-operation and assistance accorded my Officers by the Director- General of GES and the staff of the various Pre-University Educational Institutions are gratefully acknowledged. Yours faithfully, AUDITOR-GENERAL THE RT. HON. SPEAKER OFFICE OF THE PARLIAMENT PARLIAMENT HOUSE ACCRA Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational institutions for the ii financial year ended 31 December 2010 REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA, PRE-UNIVERSITY EDUCATIONAL INSTITUTIONS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER, 2010 PART I EXECUTIVE SUMMARY Introduction The accounts of Pre-University Educational Institutions have been audited covering the financial year ended 31 December, 2010 in accordance with Article 187(2) of the 1992 Constitution of the Republic of Ghana. This report, prepared out of the audits, is hereby presented to the Speaker to be laid before the House in accordance with Article 187(5) of the 1992 Constitution. 2. The audit was conducted in accordance with 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 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 for Secondary Schools, Training Colleges and Educational Units (FAI) issued by the Ghana Education Service (GES), the Store Regulations of 1984, the 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. Guided by the requirements of Section 14 of the Audit Service Act, 2000 (Act 584) the audits have been conducted to ascertain whether in my opinion: 1 Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational institutions for the financial year ended 31 December, 2010 i) the accounts had been properly kept: ii) rules, regulations and procedures established were adequate to provide effective check on the assessment, collection and proper allocation of revenue; iii) all moneys collected had been fully accounted for ; iv) moneys had been judiciously used for the purpose for which they were appropriated and expenditures made as authorised; v) essential records were maintained, and rules and procedures applied were adequate to safeguard and control the Institutions’ property; vi) financial business had been conducted with due regard to economy, efficiency and effectiveness; and vii) the annual accounts of the Institutions/Units give a true and fair view of their financial positions. 4. We maintained our traditional practice of discussing our preliminary observations and draft management letters with the Heads of the Institutions in order to ensure the accuracy and completeness of the evidence on which our conclusions and recommendations were based. This report, which is presented on regional basis, covers those matters which, in my opinion, should be brought to the notice of Parliament in accordance with Article 187(5) of the 1992 Constitution. Internal controls 5. Generally, the internal control procedures which have been established by the management of the various Institutions were satisfactory. However, some irregularities, lapses and losses which were the result of non- adherence to internal controls and financial administration regulations were noted during the audits. The significant ones are highlighted in the succeeding paragraphs of this report. Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational institutions for the 2 financial year ended 31 December 2010 Significant findings for the financial year ended 31 December 2010 6. The significant findings contained in the report include cash irregularities, procurement irregularities, stores, payroll and tax irregularities as well as the failure to submit financial statements for validation; the failure to collect outstanding debts and the failure to honour financial commitments to creditors. These irregularities were virtually the same type that I reported on in the previous reports. Though not the same in their total value each year, they are an indication that not much had been done by the managements of the Institutions and the Ghana Education Service Headquarters to reduce and eventually eliminate these irregularities. 7. The details provided in the table below show that cash management irregularities constitute the most significant drain on government financial resources. Significant findings for the 2010 financial year No. Type of irregularities Amount (GH¢) % 1 Cash irregularities 3,050,570.14 45.5 2 Procurement/contract irregularities 3,039,741.82 45.4 3 Stores irregularities 71,189.00 1.1 4 Payroll irregularities 342,835.78 5.1 5 Tax irregularities 195,456.58 2.9 Total 6,699,793.32 100 3 Report of the Auditor-General on the public accounts of Ghana, Pre-University Educational institutions for the financial year ended 31 December, 2010 PART II SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS 8. A summary of my recommendations on the significant findings are provided in the paragraphs below with the details of the recommendations provided under the various irregularities found in each region. Payments without expenditure supporting documents – GH¢1,648,733.74 9. The Accountants and Heads of 57 Institutions failed to obtain supporting documents for a total of GH¢ 1,648,733.74 disbursed in the 2010 financial year. Failure to ensure that all payments are supported by relevant, detailed and adequate supporting documents before approving and authorising the payments makes the managing officials culpable and should be held accountable. I therefore call for the provision of the supporting documents or the recovery of the amounts involved from the Heads of the institutions and their Accountants. Payment for contract works without performance certificate – GH¢116,038.21 10. Ten Institutions paid for contract works valued at GH¢116,038.21 without Engineers’ performance certificates to attest to the level of work done and the amount due. I recommend that the Accountants
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