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REPUBLIC OF GHANA PUBLIC BOARDS 2015

REPORT OF THE AUDITOR-GENERAL THE PUBLIC ACCOUNTS OF GHANA – PUBLIC BOARDS, CORPORATIONS AND OTHER STATUTORY INSTITUTIONS FOR THE 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 21 December 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 TABLE OF CONTENT Para Page(s) Transmittal letter vii Contributors x Introduction 1-4 1 PART I Summary of significant findings and recommendations 5-21 3 Audit opinion 22-29 10

PART II Summary of findings and recommendations by Ministries 30-232 13

PART III No. Departments Ministry of Energy 1. Ghana National Petroleum Corp. 233-260 64 2. Petroleum fund 261-273 71 3. Ghana Cylinder Manufacturing Co. Ltd. 274-282 73 4. National Electrification Scheme 283-314 76 5. Energy Commission 315-340 82 6. Energy Commission – Energy Fund 341-347 87 7. Bui Power Authority 348-370 89 8. Ghana Atomic Energy Commission – Sect. 371-379 94 9. National Nuclear Research Inst. – GAEC 380-388 97 10. Radiation Protection Inst. – GAEC 389-397 99 11. Graduate Sch. Of Nuclear & Allied Sciences 398-406 102 12. Biotechnology & Nuclear Agric. Research Inst. 407-415 104 13. Radiological & Medical Sciences Research Inst. 416-423 107 14. Ghana Grid Company Limited 424-442 109 15. Unified Petroleum Price Fund 443-451 113 16. Volta River Authority 452-470 115

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 i 17. Northern Electrification Distribution Co. Ltd. 471-483 120

Ministry of Finance 18. Securities & Exchange Commission 484-499 123 19. Cocoa Marketing Company (GH) Limited 500-522 126 20. Ghana Cocoa Board 523-554 132 21. Social Security & National Insurance Trust 555-575 139 22. Public Procurement Authority 576-609 144 23. National Lottery Authority 610-631 150 24. Ghana Education Trust Fund 632-645 154 25. Students’ Loan Trust Fund 646-664 157 26. National Insurance Commission (NIC) 665-673 161 27. Fire Maintenance Fund (NIC) 674-689 163 28. Motor Compensation Fund (NIC) 690-698 167 29. Venture Capital Trust Fund 699-737 169 30. Bank of Ghana 738-745 176 31. Ghana Investment Promotion Centre 746-773 178

Ministry of Education 32. University of Health & Allied Sciences 774-796 184 33. University of Education – Winneba 797-808 189 34. GIMPA 809-826 192 35. National Accreditation Board 827-864 196 36. Ghana Institute of Journalism 865-914 204 37. Institute of Local Government Studies 915-927 215 38. National Board for Professional & Technical Examination (NABTEX) 928-963 218

Ministry of Trade & Industries 39. Ghana Standards Authority 964-988 227 40. Export Trade, Agricultural Industrial Development Fund (EDAIF) 989-1036 232

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 ii 41. Ghana Free Zones Board 1037-1053 246 42. Songor Salt Project 1054-1073 250 43. Ghana Trade Fair Company Limited 1074-1087 254 44. Ghana Export Promotion Authority 1088-1118 257

Ministry of Environment, Science & Technology 45. Building and Road Research Institute 1119-1131 264 46. Oil Palm Research Institute, Kusi-Kade (CSIR) 1132-1140 267 47. Root and Tuber Crops Project (CSIR) 1141-1152 270 48. Soil Research Institute (CSIR) 1153-1170 272 49. Soil Research Institute, Kwadaso-Kumasi 1171-1187 276 50. Forestry Research Institute (CSIR) 1188-1201 280 51. Animal Research Institute (CSIR) 1202-1211 283 52. Food Research Institute (CSIR) 1212-1235 285 53. Science & Technology Policy Res. Institute 1236-1245 290 54. Plant Genetic Resources Research Inst. (CSIR) 1246-1254 292 55. Inst. For Scientific & Technical Inst. (CSIR) 1255-1263 294 56. Environmental Protection Agency (EPA) 1264-1277 297 57. National Environmental Fund (EPA) 1278-1286 300 58. Crops Research Institute (CSIR) 1287-1300 303

Ministry of Health 59. Ghana Aids Commission 1301-1308 306 60. Global Fund Round 8 (GAC) 1309-1316 308 61. National Health Insurance Authority 1317-1390 310 62. Food & Drugs Authority 1391-1405 330 63. Pharmacy Council 1406-1427 333 64. Ghana College of Physicians & Surgeons 1428-1443 339 65. Nursing & Midwifery Council 1444-1485 352

Ministry of Transport 66. Ghana Railways Development Authority 1486-1504 353

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 iii 67. Ghana Civil Aviation Authority 1505-1513 357 68. Ghana Maritime Authority 1514-1524 359

Ministry of Roads and Highways 69. Ghana Highways Authority 1252-1540 362 70. GHAPOHA – Wa Transport & Transit Facilitation Proj. (WATTFP) IDA Credit No. 4439 – GH 1541-1545 365 71. GRA (Customs Division) Wa Transport & Transit Facilitation Proj. (WATTFP) IDA Credit No. 4439-GH 1546-1551 367 72. Transport Sector Project (TSP) Govt. of Ghana (Conso) Fund Component 1552-1559 370

Ministry of Water Resources, Works & Housing 73. Tema Development Corporation 1560-1576 372 74. State Housing Company Limited (SHC) 1577-1602 375 75. Water Resources Commission 1603-1611 381 76. Architectural & Engineering Services ltd. 1612-1620 383

Ministry of Information 77. New Times Corporation 1621-1429 386

Ministry of Communication 78. National Communications Authority 1630-1651 388 79. Ghana Publishing Company Limited 1652-1665 394 80. Ghana Post Company Limited 1666-1683 397 81. Postal & Courier Services Regulation Comm. 1684-1692 401

Ministry of Food and Agriculture 82. Irrigation Development Authority 1693-1706 403

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 iv 83. Program for the Promotion of Biennial Crops in Ghana (AFD Loan No. CGH6008.02M Grant No. CGJ6008.02M and KfW Loan BMZ – No. 2005 65572) 1707-1728 407 84. CORAF/WECARD Competitive Projects Sustainable intensification integrated crops Small ruminant production systems in West Africa-Ghana (SILCSRP-W/A-GH) 1729-1742 412 85. CORAF/WECARD Competitive projects Plantain (No. CW/03/01 CP/C0/09-1.3) 1743-1752 415 86. CORAF/WECARD competitive projects Yellow rice – mottle virus (RYMV) Proj. No. CW/03/01 CM/V/09) 1753-1765 417 87. CSIR-CRI CORAF/WECARD W/A Seed Program (WASP) (No. AID-624-A-R-0007) 1766-1775 421 88. National Buffer Stock Company Ltd. 1776-1801 423 89. Rural Enterprises Porgram International Fund for Agric. Devt. (Loan No. 841 GH) 1802-1821 429

Ministry of Employment, Labour & Manpower 90. National Pension Regulatory Authority 1822-1858 434 91. National Vocational Training Institute 1859-1874 441

Ministry of Justice and Attorney General 92. Copyright office 1875-1902 445 93. Economic & Organised Crime Office (EOCO) 1903-1936 451 94. Legal Aid 1937-1953 459

Ministry of Toursim, Culture & Creative Arts 95. Ghana Tourist Board 1954-1980 463 96. Abibigromma Theatre Company 1981-1998 468 97. Kwame Nkrumah Memorial Park 1999-2010 472

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 v 98. National commission on Culture 2011-2019 476

Ministry Of Land and Natural Resources 99. The Office Of The Administrator Of Stool Lands 2020-2034 478 100. Minerals Commission 2035-3043 481 101. Precious Minerals Marketing Co. Ltd. 2044-2054 484

Ministry of Youth & Sports 102. National Sports Authority 2055-2107 487

Extra Ministerial Agencies 103. Financial Intelligence Centre 2108-2116 498 104. Electoral Commission 2117-2135 500 105. State Enterprise Audit Corporation 2136-2144 505 106. National Population Council 2145-2164 507 107. Internal Audit Agency 2165-2173 512 108. Kofi Annan International Peace Keeping Training Centre (KAIPKTC) 2174-2187 514

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 vi

TRANSMITTAL LETTER

Ref. No. AG.01/109/Vol.2/98 Office of the Auditor-General Ministries Block ‘O’ P. O. Box MB 96 Accra Tel.: (0302) 662493 Fax: (0302) 675496

21 December 2016

Dear Mr. Speaker,

REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA – PUBLIC BOARDS, CORPORATIONS AND OTHER STATUTORY INSTITUTIONS FOR THE YEAR ENDED 31 DECEMBER 2015

I have the privilege to forward my audit report on the Public Accounts of Ghana-Public Boards and Corporations to you to be tabled in the House in pursuant to Article 187(5) of the 1992 Constitution.

2. As usual, the report has been structured into three parts. Part I provides overall summary of significant findings and recommendations and Part II is a summary of findings and recommendations in respect of each Sector Ministry, and their respective Public Boards, Corporations and other Statutory Institutions while Parts III gives the full details of my findings and recommendations.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 vii 3. Mr. Speaker, this report highlights the significant findings arising from my audit of the financial operations of Public Boards, and Corporations and other Statutory Institutions in accordance with Section 13 of the Audit Service Act of 2000 (Act 584). It includes details of financial errors and irregularities arising out of the breakdowns of internal controls and provides recommendations, where possible to rectify the weaknesses identified in the financial control systems.

4. Aware of the extent of my reliance on others to produce my report, I would like to thank my staff and the contracted Audit Firms for the invaluable assistance provided in preparing this report.

5. I am also grateful to Chief Executives, Chief Finance Officers and their staff for their cooperation during the conduct of the audits.

6. Finally, I would like to thank the Public Accounts Committee for their continued confidence and support for my work by reviewing my reports and reinforcing my recommendations to the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 viii Public Boards and Corporations for purposes of prudent management of the public purse.

Yours faithfully,

RICHARD Q. QUARTEY AUDITOR-GENERAL

THE RT. HON. PEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 ix Contributors

 Egala, Atitso & Associates  Ernst & Young  Kwame Asante & Associates  P K F  James Quagraine  PWC  Deloitte & Touche  Opoku, Andoh & Co  Benning, Anang & Partners  K P M G  Kwesie & Partners  Lobban Hyde  Boateng, Offei & Co.  AADS Consult  Asafu-Adjaye & Partners  Osei Kwabena & Associates  State Enterprises Audit Corporation  AKUS Consult  Veritas Associates  Ahima-Adonteng & Associates  EU Asare & Co.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 x  Osei Owusu-Ansah & Associates  Ofori Anom Consult  Andah & Andah  Sammy Tsahey & Associates  Robert Azu & Partners  Baker Tilly Andah & Andah  Morrison & Associates  O.A.K Chartered Accountants  Asamoa Bonsu & Co  Issifu Ali & Co  Global Auditor  Donaldy Associates  JOP Consult  Baah, Quartey & Associates  Adom Boafo & Associates

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 xi

REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA – PUBLIC BOARDS, CORPORATIONS AND OTHER STATUTORY INSTITUTIONS FOR THE YEAR ENDED 31 DECEMBER 2015

Introduction In accordance with Article 187(2) of the 1992 Constitution of the Republic of Ghana the audit of the accounts of the Public Boards, Corporations and other Statutory Institutions for the period ended 31 December 2015 have been conducted.

2. The objective of the audit is to express an opinion on the accounts submitted to me by each Public Board, Corporation and other Statutory Institutions for my examination.

3. I also evaluated the adequacy of the system of internal financial controls, compliance with relevant legislations, stated accounting policies and applicable financial rules and regulations of these organisations.

4. Matters raised in this report are among those which came to my notice during the period ended 31 December 2015. The observations, and recommendations arising out of the audits were discussed with managements of the affected Institutions and comments received where appropriate, have been incorporated in this report. The report is in three parts:  Part I of the report provides overall summary of significant findings and recommendations arising from my audit of the financial operations of Public Boards and Corporations and other Statutory Institutions.

 Part II of the report highlights the significant findings and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 1 recommendations made in respect of each Sector Ministry and their respective Public Board and Corporation and Statutory Institutions.

 Part III of the report gives the operational results and financial position as well as the full details of financial errors and irregularities arising out of the breakdowns of internal controls and provides recommendations, where possible to rectify the weaknesses identified in the financial control systems.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 2 PART I

SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS 5. Presented in Table 1 is the financial impact of these irregularities according to their nature.

Table 1: Summary of financial irregularities for the period ended 31 December 2015. No Type of % Amount Amount Amt. Amt. Total Irregularities (GH¢) USD Euro GBP Amount (US$) (€) (£) (GH¢) 1 Outstanding 82.33 2,705,086,348 2,705,086,348 Debtors/Loans Recoverable charges 2 Cash 6.02 197,922,326 3,874,372 2,300,163 11,846 222,227,944 Irregularities 3 Payroll 0.04 1,424,941 1,424,941 Irregularities 4 Procurement 0.02 568,322 568,322 Irregularities 5 Tax 11.49 377,410,669 377,410,669 Irregularities 6 Stores - 58,845 58,845 Irregularities 7 Contract 0.10 3,271,981 504,750 5,186,245 Irregularities Total 100.0 3,285,743,432 4,379,122 2,300,163 11,846 3,311,963,314

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 3 6. Table 1 shows that, the irregularities in monetary terms totalled GH¢3,311,963,314 which included US$4,379,122 converted into Cedis at the prevailing exchange rate of GH¢3.7925 to the US$1 as at 31 December 2015, €2,300,163 converted into Cedis at the prevailing exchange rate of GH¢4.1499 to the €1 as at 31 December 2015 and £11,846 converted into Cedis at the prevailing exchange rate of GH¢5.6235 to the £1 as at 31 December 2015.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 4 Table 2: Summary of Financial Irregularities according to Sector Ministries Outstanding Cash Payroll Procureme Tax Stores Contract Debtors / Irregularities Irregularit nt IrregularitIrregularit Irregularities Loans / recoverable ies Irregularit ies ies Charges ies Sector GH¢ GH¢ US$ € £ GH¢ GH¢ GH¢ GH¢ GH¢ US$ Ministry Min. of Energy 7,525,696 20,242,850 42,300 46,592 210,496 504,750 & Petroleum Min of Finance 1,959,074,910 298,695 3,649,134 375,211,492 Min. of 268,000 6,619,356 375,766 24,000 178,892 41,580 275,380 Education Min. of Trade and 18,001,683 158,265,17 72,799 309,533 211,079 17,265 Min.Industry of 3 Environment 22,563 1,062,824 ScienceMin. of Healthand 717,371,667 636,444 627,204 544,322 350,000 Min.Technology of Min.Transportation of Roads & 55,500 Highways Min. of Water Resources, Works & 557,707 60,663 110,139 163 11,864 16,538 257,316 HousingMin. of Information Min. of 2,848 1,279.895 Communication

Min. of Food & 5,145,701 2,300,000 2,603 1,077,969 Min.Agriculture of Employment, Labour & Manpower 382,103 139,649

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 5 Min. of Justice & 96,547 619,039 - 43,583 Attorney General Min. of Tourism, Culture & Creative 5,591 3,122 479,163 Arts Min. of Land & (MOTCA) Natural Resources 1,615 Min. of Youth and 38,498 5,374,953 7,055 78,241 ExtraSport Ministerial Agencies 1,769,537 434,534 Total 2,705,086,348 197,922,326 3,874,372 2,300,163 11,846 1,424,941 568,322 377,410,669 58,845 3,271,981 504,750

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 6 Outstanding Debts/ Loans/ Recoverable Charges - GH¢2,705,086,348 7. These irregularities represent trade debtors, staff debtors and outstanding loans. Lack of debt collection policies, the absence of credit controllers to retrieve the debts and management’s apathy towards loan recovery contributed significantly to the anomalies. Also, improper maintenance of records on debtors, the absence of debtors’ ageing analyses, non-documentation of agreements stipulating the terms and conditions of loans, failure to ensure that loans are repaid and management’s noncompliance with rules and regulations accounted for these irregularity.

8. I recommend that management of Public Boards, Corporations and other Statutory Institutions should strictly adhere to rules and regulations pertaining to debts management. They should put in place proper policies on the granting of loans and should also ensure that loans are repaid on due dates to avoid or mitigate the occurrence of bad debts.

Cash Irregularities - GH¢222,227,944 9. Cash irregularities mostly related to the misapplication of funds, overestimation of budgets, outstanding retirement of imprest, payments not authenticated and outright cash shortages. These occurred as a result of poor oversight responsibility, lack of control, management’s failure to review approved budgets and the failure of Paying Officers to demand receipts for payments made. Other contributory factors were Accountants’ failure to properly file and keep records, management’s failure to ensure the security and safety of vital documents, non-maintenance of returned cheque registers and management’s inertia in complying with procedures stipulate in the Financial Administration Act coupled with poor accounting systems.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 7 10. I therefore urge the management of the Public Boards, Corporations and other Statutory Institutions to strengthen supervisory controls over their Accountants and ensure that they adhered to the stipulations of the Financial Administration Act. I also recommend the authentication of all payment vouchers, the review of approved budgets and the prompt retirement of imprest.

Payroll Irregularities - GH¢1,424,941 11. These lapses were caused by the failure of management to exercise due diligence and the failure of officers in charge of payroll to review payment vouchers to ensure salaries were paid to only those who were entitled. They were also caused by management’s failure to notify banks to stop the payment of unearned salaries.

12. They mostly comprised payments of unearned salaries to separated staff, non-payment of unearned salaries to chest and payment to staff members who were not entitled to receive those salaries.

13. I advised management of the affected Institutions to promptly notify the bankers of the separated staff to withhold and pay to chest all unearned salaries. I also recommend that officers in charge of payroll should exercise due care in the discharge of their duties. Procurement Irregularities-GH¢568,322 14. These irregularities occurred as a result of management procuring goods and services without recourse to the procurement committees of the various Institutions, contrary to the provision of the Procurement Act.

15. I once again recommend that the management of the various Institutions should transact procurement dealings strictly in accordance with the provisions of the Public Procurement Act, 2003

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 8 (Act 663).

Tax Irregularities - GH¢377,410,669 16. The Tax irregularities related to misapplication of tax revenue, failure to pay statutory deductions on due dates contrary to the law and non-adherence to the provisions in the tax laws. They also relate to transaction of business with non VAT registered persons.

17. I recommend that the Finance Officers should strictly adhere to tax laws to ensure that all tax revenues are promptly collected and paid to the responsible revenue agencies.

Stores Irregularities - GH¢58,845 18. These irregularities include non-documentation of store items and unaccounted fuel, resulting from the absence of store ledgers, lack of awareness of officers assigned to store duties, inadequate supervision, use of deficient and improvised logbooks and management’s failure to produce the relevant books for record keeping.

19. I recommend the strengthening of controls over store items, improving supervision and the procurement of store ledgers for effective record keeping. I also recommend the strict adherence to the store regulations and the Financial Administration Regulations.

Contracts Irregularities– GH¢5,186,245 20. These mainly relates to overpayment of contract sum, absence of the signing of contract agreements, failure to comply with tendering procedures, delay in construction, ineffective control over contracts and the absence of transparency in the disbursement of funds and award of contracts.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 9 21. I therefore urge management to strengthen controls over contracts and comply with tendering procedures. I also recommend that responsible officials for the overpayment of contract sum be surcharged with the difference.

AUDIT OPINION 22. Most of the financial statements submitted for validation were prepared under generally accepted accounting principles and my office was satisfied in all material respects that the 161 audited financial statements complied with the Ghana Accounting standards and relevant legislation.

23. In my opinion except for the financial statements of National Buffer Stock Company Limited which had an exception, all the others presented a true and fair view of the financial position and performance of the organisations.

Accounts submission 24. In the year 2015, all the 109 organisations audited presented their financial statements for audit.

25. As stated in my previous reports, to enhance accountability and timely stewardship of public funds, I recommend that Board of Directors as a matter of urgency should take the following remedial measures among others to enhance the performance of Public Boards, Corporations and Statutory Institutions:

 Fill the position of Heads of Accounts Unit with personnel with the requisite skill and experience;  Install computerized accounting software to accelerate the production of financial statements for audit;

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 10

 Resource their accounts departments to enable them clear the back log of outstanding accounts and submit them for audit by 31 December 2015;

 Sanction any Chief Executive who fails to prepare and submit for audit the organisation’s financial statements by the 31 March deadline.  Sanction any official whose inaction resulted in these and future irregularities to serve as a deterrent to others.

Conclusion 26. As part of the processes of good governance, I urge the appointing Authorities to ensure that Board of Directors are constituted immediately for organisations having none including places where there have been reshuffles. This is because the absence of these Boards tend to delay the signing of the financial statements resulting in audit delays thereby stifling my ability to meet the constitutional deadline.

27. The operational results and financial positions of the Public Corporations and other Statutory Institutions during the year under review, could have been healthier if there had been effective supervision of schedule officers.

28. I reiterate my advice to Management to strengthen their Internal Audit Units to support and ensure sound financial practice in accordance with the Internal Audit Agency Act 2003, (Act 658).

29. I also recommend that management should establish and strengthen the audit Report Implementations Committees within the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 11 organisations with Section 30 of the Audit Service Act 2000 (Act 584) to ensure that recommendations made in this report are duly implemented.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 12 PART II

SUMMARY OF FINDINGS AND RECOMMENDATIONS BY MINISTRIES MINISTRY OF ENERGY AND PETROLEUM

GHANA NATIONAL PETROLEUM CORPORATION 30. Contrary to Regulation 288(1) of FAR, 2004, we noted that various advances totaling US$42,300.00 and GH¢35,415.00 granted to officials to undertake various activities for the corporation had not been accounted for as at 31 December 2014.We recommended that management should make the necessary efforts to have the responsible officials retire the imprest or recover the balances by debiting the outstanding amount to their individual personal accounts.

31. In spite of our previous recommendation requesting the Corporation to audit the operations of the partners in the oil industry as empowered by Section 18.6 of the Petroleum Agreements, management had still not undertaken the audits. Management should therefore exercise the right to audit the Petroleum Partners without further delay.

32. We noted during our inspection of the Corporation’s assets that key documents were not available to confirm ownership of property. The Corporation’s vehicles have also not been re-registered as government vehicles. We recommended that Management should ensure that the Facilities Department obtains all the vital documentation required for the Corporation’s lands and buildings. Management should also ensure that the vehicles are re-registered as government vehicles.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 13 PETROLEUM FUNDS 33. Contrary to the compliance checklist for investment purposes for the Ghana Heritage fund which requires that exposure per issuer should not exceed 5% of Ghana Heritage Fund Holdings; we noted that the total amount of Heritage fund invested in the US Treasury exceeded the exposure per issuer. We recommended that management should ensure that the compliance checklist for investment purposes is strictly adhered to.

NATIONAL ELECTRIFICATION SCHEME 34. Despite efforts by management to ensure that levies are remitted to the fund promptly, we noted significant delays of levies collected in 2014 totaling GH¢17,999,762 not remitted to the Fund with PURC being the major culprit. We recommended that the Project Management Team of the National Electrification Scheme should explore alternative means of getting PURC in particular to remit the levies collected to the scheme.

35. Transformers installed in communities visited where the projects have been commissioned, were found to be faulty and had been energized. There were also leakages of oil from some of the transformers. We recommended that Contractors responsible for areas where there are issues with transformers should be compelled to rectify the problem as soon as possible. Also the project management team should evaluate causes of faulty transformers, as this issue continues to recur in all our reports.

36. We noted at Kope area in the Awutu Senya District of the Central Region that the sub-station had not been energized because the Contractor noticed a high incidence of theft of meters even before service was extended to the households. We recommended that the Management team and the contractor should devise a plan to resolve

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 14 the incidence of meter theft as soon as possible. 37. We noted that stringing of the Low voltage (LV) conductors had low sag between them in one community. Additionally, at Akrumatoyom in the Awutu Senya District of the Central Region the take-off point on the LV poles was mounted too low, there by exposing it to children in the community. We recommended that the contractor responsible for stringing of LV lines should be requested to correct the defect to prevent any future loss of lives and properties.

38. At Prampram in the Ningo-Prampram district of the Greater Accra Region, we noted that, LV Poles were mounted in water logged areas around the Ningo-Prampram Senior High School. The Contractor should be made to revisit the site and provide any remedial action to ensure that the poles will withstand that environmental condition. 39. National Electrification Scheme has no insurance policy covering its materials in all depots over the country. This is a problem which has been reported over the years but has still not been resolved due to lack of funds. However, in view of the high risk involved, we still recommended that the materials should be covered with an insurance policy.

ENERGY COMMISSION 40. Contrary to the stores Regulations, 1984, Regulations 1513, we observed that all fixed assets, specifically Furniture, Fittings and Equipment as well as computers and Accessories acquired during the year were not labeled. We recommended to management that any asset purchased in the name of the Commission must immediately be embossed.

41. Contrary to the Public Utilities Regulatory Commission

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 15 (Amendment) Act 2010 (Act 800), we noted that PURC failed to remit 15% of transfers received from GRIDCO amounting to GH¢2,207,673 to the commission. We recommended to management that they should intensify efforts in letting PURC comply with the law.

42. In spite of Section 83 of the Public Procurement Act, 2003 (Act 663) which mandates the head of procurement entity to dispose off stocks that are obsolete, redundant and unserviceable in an orderly and systematic manner, we noticed that vehicles that were not in good condition and thus were unused were abandoned and also left to the mercies of the weather. We recommended to the management that the vehicles should be either repaired or disposed off.

BUI POWER AUTHORITY 43. Though management deducted an amount of GH¢46,592 from staff salary for the period October to December 2013, no payment has been made to the fund as SSNIT refused to receive the Tier 2 pension. We recommended that management should conclude on the selection of a private fund manager and transfer the funds to them appropriately.

44. In contravention of Sections 17 (1), 21(1) and 35(1) of Public Procurement Act, 2003, (Act 663) we noted that BPA did not have a Tender Committee and a procurement plan and also carried out procurement without following competitive process. We recommended that the Board should take the necessary steps to ensure compliance with the provisions of the Public Procurement Act, 2003, (Act 663).

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 16 GHANA GRID COMPANY LIMITED 45. The debt agreement with AFD requires the Company to maintain a debt service ratio of 1.4:1; however, the company had violated the agreement and its debt service ratio for August 2014 was 0.86:1. We recommended that, management should monitor loan agreements to ensure compliance.

46. Contrary to laid down policy, we observed that 80% of the Company’s trade receivables are over sixty (60) days. We further noted that, out of the GH¢224.5 million owed by Electricity Company of Ghana to the Company, 68% of this balance is over 60 days past the due date as at 31 December 2014. We recommended that, measures should be put in place to ensure timely collection of fees for services rendered.

VOLTA RIVER AUTHORITY 47. Management of VRA had failed to provide meters to individual consumers of electricity in Prestea Township, resulting in VRA making full provision for the total amount each year, with this year’s (2014) total amount of GH¢7,525,695.95 representing total power sales provided for. We advised that management of the Authority should consider introducing prepaid meters for customers in Prestea Township or add Prestea Township to the customers of Electricity Company of Ghana (ECG) to enable ECG supply them with prepaid meters.

NORTHERN ELECTRICITY DISTRIBUTION COMPANY LIMITED (NEDCO) 48. Our review of NEDCO receivables revealed that the rate of growth over the past three years’ ranges from 45% to 65%. However, the policy on provision for doubtful debt had been pegged at 2% of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 17 the total receivables at the end of the year. We recommended that management must in consultation with the Board consider revising the provision based on the consistency and the trend of increases of the receivables over the years. MINISTRY OF FINANCE AND ECONOMIC PLANNING

SECURITIES AND EXCHANGE COMMISSION 49. Contrary to Section 9 (b) of the Securities Industry Law, 1993, PNDCL 333 as amended, we observed that the Market Surveillance system was not functioning as expected and as a result the Commission was unable to monitor and capture all trades at the Ghana Stock Exchange. We recommended that management should take urgent steps to fix the surveillance system.

COCOA MARKETING COMPANY (GHANA) LIMITED 50. Contrary to Section 29.4 of Ghana Cocoa Board policies, regulations and procedures fifteen staff members had not retired a total amount of GH¢48,485 released to them as imprest in 2013 and 2014. Management was advised to take necessary action to immediately have the imprest retired or recovered by adjusting it to the personal account of the imprest holders

51. Best management practices require that any amount due to any Company should be identified and collected. Contrarily, it was observed that the Company’s debit balances totaling GH¢21,434 on Ched and Seed production accounts did not show any movement during 2013 and 2014. We recommended that the makeup of the balances should be reviewed and efforts made to collect them.

GHANA COCOA BOARD 52. COCOBOD did not adequately provide for employees benefit in its general ledger in contravention of International

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 18 Accounting Standard (IAS) 19. We recommended that management should engage the services of qualified actuary to undertake actuarial valuations of these benefits. The resultant valuations which should be updated annually should then be recorded in the general ledger.

53. Contrary to Section 26(1) and 28(1 &2) of the Ghana Cocoa Board Act, 1984 (P.N.D.C L81) COCOBOD had failed to establish a contributory insurance scheme for Cocoa, Coffee and Shea nut farmers within the framework of the Social Security Scheme as well as the Depreciation Reserve Fund. We recommended that management should ensure that the relevant provisions of Ghana Cocoa Board Act 1984 (PNDC L 81) as amended by Ghana Cocoa Board (Amendment) Law 1991 (PNDC L 265) are adhered to.

54. We noted that, off-site back up procedures for data captured at the cocoa take-over centres were inadequate. Management should design and implement a backup policy for the take-over centers and ensure that data is backed up to an off-site location on a regular basis.

SOCIAL SECURITY AND NATIONAL INSURANCE TRUST (SSNIT) 55. We noted that fixed deposits with Ghana International Bank (GIB) totaling £620,000 equivalent to GH¢2,788,992.00 were not supported by a Security assignment, contrary to SSNIT’s own practice where fixed deposits are backed by securities. We recommended that SSNIT should request the GIB to back the fixed deposits with securities, to enable SSNIT redeem the amount in times of default.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 19 56. Loans totaling GH¢477,319,200.67 granted to eight private and public organizations were not paid back and the collaterals provided by these loan defaulters were not valued. We recommended that, management of SSNIT should take the necessary steps to recover the loans and strengthen its recovery mechanism. They should also value and perfect collaterals covering these loans, so that recovery can be made from the sale of the collaterals.

PUBLIC PROCUREMENT AUTHORITY 57. Contrary to Section 87(1) of the Internal Revenue Act 2000 (Act 592), we observed that taxes totaling GH¢8,638 withheld from payment made to suppliers had not been remitted to the Commissioner as at end of year 2014. We recommended that all the withholding taxes outstanding must be paid and the receipts given to the respective suppliers as soon as possible.

58. An amount of GH¢77,112 being part of other accruals as at 31 December 2014 were due to stale cheques. We recommended that the holders of the unpresented cheques must be contacted for possible replacements.

NATIONAL LOTTERY AUTHORITY 59. The Authority used wrong rates in the computation of PAYE of GH¢16,339 whilst withholding taxes of GH¢112,330 had not been paid to the Ghana Revenue Authority since January 2014. We recommended that the current income tax rate must be used to compute the income tax deductions and all deductions due the tax authorities should be paid.

60. Contrary to Section 48 of the National Lottery Act 2006 (Act 722) copies of the internal audit reports presented to the Director General and the Board chairperson were not submitted to the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 20 Auditor-General and Minister of Finance. We recommended that quarterly internal audit reports should be presented to the relevant supervisory authorities as required.

GHANA EDUCATION TRUST FUND 61. Our audit revealed that withholding tax of GH¢27,059,150 for the period July 2013 to December 2014 had not been paid. We recommended that management should take the necessary steps to settle the liability.

62. We observed that the 2.5% VAT proceeds meant for the Fund was not forthcoming as expected. As at 31 December 2014 only GH¢382,801,463 had been received out of the expected amount of GH¢730,815,498 leaving a balance of GH¢348,014,035 which represent 47.6% arrears. We recommended that measures should be put in place to ensure that the proceeds are issued to the Fund as and when due. STUDENTS’ LOAN TRUST FUND 63. We observed that, only 36% of the total amount of GH¢22.27 million due for recovery was recovered during the year amounting to GH¢8.13 million. We recommended that management should intensify their efforts for locating all borrowers in order to recover not only overdue amounts but amounts due currently.

64. Contrary to the core activity of the fund which is disbursement of loans to tertiary level students in accredited Institutions in Ghana, we noted that total loans disbursed to students represents 48% of the total grants received during the year under review. We recommended that management should intensify efforts to increase the loan disbursed to students in order to realize the fund’s objectives of supporting needy students.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 21 VENTURE CAPITAL TRUST FUND 65. We noted that management made a wrongful payment of US$3,649,134 to SIC-FSL and two alleged representatives of Bethany Church for the purchase of a property at North Ridge. We recommended to management to ensure that the Fund recover US$3,649,134 from the illegal recipients of the money.

66. Contrary to Section 13 of the Venture Capital Trust Fund Act, 2004 (Act 680) we observed that an amount of GH¢114,360 was paid as gratuity without the Sector Minister’s approval. We therefore recommended that, for the amount to stand charged to the funds account an approval should be sought from the Minister or the amounts should be recovered to chest. 67. Six staff including Board Trustees members who were granted a total imprest of GH¢282,389 failed to retire the imprest on the due date even though the programme had been completed. We advised management to ensure the timely retirement of imprest and institute sanctions to be applied to defaulters.

68. Contrary to Section 15(5&6) of the Venture Capital Trust Fund Act, 2004, Act 680 34% of loan files reviewed did not have documents to prove that loans totaling GH¢1,479,402.00 were approved. We advised management to ensure that all files are updated by the investment department.

69. Contrarily to best practice we noted that agreements on loans totaling GH¢1,305,967 were not signed and dated. We recommended to management to ensure all loan agreements are properly signed and dated.

70. Due to non-compliance of proper loan agreements, 51% of files examined for loans totaling GH¢914,654.00 granted did not have

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 22 adequate information on borrowers. We recommended that files of borrowers should contain adequate information that could help trace them.

GHANA INVESTMENT PROMOTION CENTRE 71. We observed that payments totaling GH¢46,283.56 were made to seven staff members who were allowed to convert their annual leave to cash in contravention of the Labour Law of 2003. These payments were also made without being subjected to tax deductions. We recommended that management strictly adheres to the Labour laws and to also enforce compliance of leave roaster.

72. Contrary to the Public Procurement Act, 2003 (Act 663) all the advertisement contracts signed with foreign companies were not through competitive bidding and were approved single-handed by the Chief Executive Officer. We recommended that in contracting advertising firms, proper procedure should be followed as spelt out only in PPA. The Chief Executive Officer should also desist from awarding contracts which are above his threshold.

73. GIPC had established barter transactions with organizations for sponsorship during the Ghana Club 100 programme without formally signing a contract agreement. We recommended to management that, there should be proper documentation on all operations and transactions of the Centre.

74. We noted during the audit that 89% of the total printing and publications at GIPC is handled by Royal MEDIATEC Investment Company without adherence to the Public Procurement Act. It was recommended to management that the process should conform to the Public Procurement Act.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 23 75. GIPC paid GH¢14,400 as a four year rent for the Tamale Regional Office but failed to occupy the premises until the agreement expired. We recommended that management review the payment and establish why payment was made without utilizing the facility; and whoever caused the loss should be surcharged with the cost involved.

MINISTRY OF EDUCATION

UNIVERSITY OF HEALTH AND ALLIED SCIENCES 76. We observed that assets being occupied and used by the University have not been captured in the University’s books as part of property plant and equipment. We recommended that the University should ensure that all title deeds on those assets are obtained and transfers are made into the University’s books.

77. Due to non-payment of compensation to land owners the University has not recognized the land on which the University’s permanent campus is located in their books as the University has no title for the land. We recommended that management should liaise with Government to ensure compensations are made to the land owners and also all land title documents obtained.

78. Contrary to a grant agreement, the University misapplied an amount of GH¢1,000,000 which was received from Ghana Commercial Bank Limited meant for the construction of an administrative block at the Hohoe Campus for administrative expenses. We recommended that management should endeavour to utilise grants according to terms and conditions specified in the grant agreement.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 24 UNIVERSITY OF EDUCATION-WINNEBA 79. We noted that Kumasi Campus of the University made a transfer of GH¢20,000.00 from Ghana Commercial Bank (GCB) Harper Road to Ecobank, Tanoso Branch on July 30, 2012. Though GCB had debited the UEW account with the amount, Ecobank had not credited UEW Kumasi Account as at 27 October, 2014. We recommended that the University follow-up on this transfer and ensure that the defaulting bank pays interest on the amount.

GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA) 80. The Institute had no Legal Title documents to cover its immoveable properties, notably the land on which its premises are located at Green Hill. Management is urged to vigorously pursue the relevant documents of title and perfection of same to forestall any possible litigation in the future.

NATIONAL ACCREDITATION BOARD 81. Contrary to section 5(a) of Act 735 Act 2007, management spent GH¢4,604,469.50 of its internally generated funds for the period 2014 without submitting monthly records of collection, bank lodgments and monthly returns to the minister of Finance. We advised management to ensure that all collections, lodgments and expenditure returns for 2014 and subsequent ones are submitted to the Ministry of Finance.

82. Management paid GH¢726,886.52 as board members and committee members allowances for the period 2014 without ministerial approval contrary to section 7 of National Accreditation Act 2007 (Act 744) and Ministry of Finance circular referenced B/CEU/2014/05. We recommended strict adherence to the Act and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 25 Ministry of Finance circular and management to seek retrospective approval for payment of the allowances and subsequent allowances from the Minister.

83. Management used GH¢5,139.13 in payment of the internally generated funds for personnel benefits contrary to the section 5(c) of Act 735, Act 2007. We urged management to desist from the practice and to apply to the Controller & Accountant General for reimbursement to the board’s account.

GHANA INSTITUTE OF JOURNALISM 84. The Institute paid unauthorized monthly supplementary salary of GH¢110,877.70 to four personnel who were seconded to the Institute from their Internally Generated Funds (IGF) in contravention of Section 5(e) of the Institute of Journalism Act 2006, Act 717. We recommended that management should seek retrospective approval from Ministry of Finance and Economic Planning (MoFEP) since the payments are salary related, or the beneficiaries be made to refund the total amount paid, and any subsequent payments into the Institute’s account.

85. Contrary to Regulation 295 of the Financial Administration Regulation (FAR) 2004, the Institute paid eight unapproved salary related allowances totaling GH¢170,810.36 for the period reviewed to the Accountant who is on secondment from Controller & Accountant General’s Department (C&AGD). We recommended to management to seek approval to regularize the payments failing which the amount and any subsequent payments should be recovered from him.

86. Management failed to maintain proper records on the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 26 Institute’s contracts, hence contract agreements for three projects and the engagement of two consultants could not be provided for our scrutiny. Additionally, the Institute did not maintain a contract register to monitor payments made to contractors. To enhance transparency, we recommended that management should keep proper records on contracts. Meanwhile the contract agreements and the contract register should be made available for our inspection.

87. In a related development we noted that, the Institute failed to keep records of donations received for the building of an emergency Lecture Hall. We recommended that management provide records on donations received and how they were utilized for our examination. Additionally, management should ensure that all donations received by the Institute are recorded in the appropriate records to enhance proper accountability.

88. Even though the Institute informed C&AGD of the separation of the officer, he was paid one-month salary of GH¢4,454.71 which he would have earned if he had been at post. The officer had refunded GH¢2,500.00, leaving a balance of GH¢1,954.71 yet to be settled. We recommended that efforts should be made by management to retrieve the amount from the former employee and pay into the consolidated fund without delay.

INSTITUTE OF LOCAL GOVERNMENT STUDIES 89. A total amount of GH¢178,892.03 representing withholding taxes deduction on goods, services and PAYE have not been paid to the Ghana Revenue Authority. We recommended that the Institute’s management remit the outstanding withholding tax liability without fail.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 27 NATIONAL BOARD FOR PROFESSIONAL AND TECHNICAL EXAMINATION (NABPTEX) 90. Our audit scrutiny disclosed that, regardless of several reminders, Takoradi Polytechnic failed to remit to NABPTEX an outstanding amount of GH¢268,000 being examination fees collected on its behalf. We recommended that management put in place stringent measures that will compel defaulting Polytechnics to reimburse promptly moneys collected on its behalf.

91. Contrary to Section 35[1,2] of the Financial Administration Act (FAA) 2004, Act 654, 130,000 blank certificates valued at GH¢41,580.00 ordered from CheckPoint Ghana Limited for printing of certificates to clients were not routed through stores. To ensure transparency and enhance proper stores control, we recommended that management should ensure all supplies are routed through the stores.

92. In contravention of Regulation 2[c] of Financial Administration Regulation (FAR) 2004, L.I 1802, our stores inspection revealed that five out of 15 set of computers funded by Get Fund were neglected at the stores to deteriorate. We recommended that the responsible officers whose inaction resulted in the anomaly should explain why the computers, which were procured with the taxpayer’s money, were not used until damaged.

93. We observed that management did not separate unserviceable stores from the serviceable, in contravention of Chapter II, Section 1101 of Stores Regulation 1984. We recommended that, management should take immediate steps to comply with the stores regulation.

94. Two of its staff members sponsored to pursue a degree and a

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 28 masters course at various Institutions during the period reviewed were not bonded. We advised that the officers involved and subsequent beneficiaries should be bonded.

MINISTRY OF TRADE AND INDUSTRIES

GHANA STANDARD AUTHORITY 95. Two bank accounts were noted to be dormant with the bank balances appearing in the books without any movement. We recommended that management should confirm the balances from the bank to determine the status of the balances.

EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF) 96. Contrary to Section 5 of Act 582 as amended by Act 823 (2011) and Section 5 of Act 872 (2013) we noted an increasing trend in the issuance of grants over the years from 2011 to 2014. There was also a significant increase in the proportion of grants as compared to total amounts disbursed in grants and loans from 2011 to 2014. We recommended that more loans should be given out than grants. The Board should also issue clear guidance on the issuance of grants and apportioning of funds among the amounts of the fund indicated in Act 872.

97. We noted that EDAIF did not have documents to indicate whether grants totaling GH¢31,131,914 and GH¢28,970,444 disbursed in 2013 and 2014 respectively had been used for the approved purposes. We recommended that Management should ensure that grant agreements or offer letters to beneficiaries, including government institutions, for approved grant include clauses such as submission of financial returns, activity reports and the right of audit

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 29 of funds by internal or external auditors to ensure judicious use of EDAIF’s financial resources. Management should also obtain and retain copies of financial reports and third party supporting documentation evidencing the use of grants disbursed.

98. Contrary to Section 7(2), of the EDAIF Act 2013, Act 872 the Board approved a decision to write off recoverable grants totaling GH¢7,193,009 granted between 2011 and 2013.

99. In addition, the board of directors passed a resolution to convert the outstanding balance of GH¢10,500,000 due from Eximguaranty Company Limited into an irrecoverable grant.

100. We recommended that the board/management should put rigorous systems and processes in place for granting facilities to beneficiaries. In particular, management should ensure the viability and recoverability of interest free loans. The board should also ensure that its duties are performed in accordance with the EDAIF Act 2013, (Act 872).

101. We noted that twenty-seven individual grants totaling GH¢45,041,164 and GH¢50,188,581 issued in 2013 and 2014 respectively were in excess of the stated threshold of US$100,000 (as per Section 2.3 of EDAIF Guidelines for Export Development and Promotion and Export Credit and Projects Facilities). We recommended that approval of grants should be in line with the stated guidelines. The disbursement of grants in excess of the stated threshold should be a rare occurrence. 102. In 2014, the board approved disbursement of GH¢2,496,173 to the Ministry of Trade and Industry (MoTI) to be paid as a deposit in court pending an appeal for a case brought against Gratis Foundation by its former employees. This payment is contrary to the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 30 prescribed use of EDAIF moneys outlined in EDAIF’s Act (Act 872). We recommended that the amount in question should be refunded by the Ministry of Trade and Industry/Gratis Foundation.

103. Contrary to Good financial management practices a total amount of GH¢46,163owed by three staff who had resigned were included in staff receivables at the end of 2014. We further noted that an amount of GH¢4,430 deducted from a deceased employee benefit was wrongly treated and the balance is still showing as outstanding in the staff receivable schedule. We recommended that management should provide for the GH¢41,733 which may not be recoverable. Entries should also be passed to recognise the GH¢4,430 that was deducted from the benefits of the deceased staff. In addition, we recommended that management should assess the recoverability of all receivables on an annual basis and make provisions where necessary.

104. Contrary to Section 31(1) of the Export Trade, Agricultural and Industrial Development Act, 2013 (Act 872) we noted that the Deputy Chief Executive position was vacant throughout 2014. We recommended that the Board should draw the attention of the President to this and ensure that all positions as stipulated by the Act (Act 872) are filled by qualified personnel.

GHANA FREE ZONES BOARD 105. Contrary to Regulation 28 of the FAR we noted that, Ghana Free Zones Board (GFZB) made payment of GH¢500,000.00 at the exchange rate of GH¢1.83285: US$1.00 in May 2012 to Volta River Authority (VRA) but VRA receipted the said amount on 10 July 2013 when the exchange rate was GH¢2.5: US$1.00 resulting in understatement of US$72,799.19. We recommended to management to immediately request VRA to recognize the understatement of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 31 US$72,799.19 and offset it against GFZB outstanding liabilities. 106. It came to light during the audit of the Ghana Free Zones Board that, three Enterprises paid the required amount on parcels of land allocated to them at the Tema Export Processing Zones but have no signed Sub-Lease Agreement. Management is advised that, Sub- lease Agreement should be prepared and signed by all respective parties involved.

SONGOR SALT PROJECT 107. An amount of GH¢43,532.55 being unpaid balance of SSNIT contributions had still not been remitted to SSNIT as at the end of the year. We recommended that the amount deducted should be paid immediately to avoid the payment of a penalty.

108. Our audit revealed that a total amount of GH¢266,941.29 had been owed to the project since 2012 by five organisations. We recommended that management should take the necessary steps to collect these monies from the debtors. 109. Contrary to Section 87 of Act 592, we noted that total amount of GH¢211,078.91 deducted as withholding taxes and PAYE had not been paid as at the time of audit. We recommended that monies withheld for tax purposes should be paid to GRA when due. Also, the Project should arrange with GRA for the payment of the outstanding amount of GH¢211,078.91 without further delay.

GHANA TRADE FAIR COMPANY LIMITED 110. An ex-Director sued the Company for non-payment of her retirement benefits totaling GH¢466,000 for which the Company was able to pay GH¢200,000 leaving a balance of GH¢266,000; resulting in a court placing a garnishee order on the bank accounts of the Company. We advised management to reach a satisfactory arrangement with the retired employee for settlement of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 32 retirement benefits to expedite the lifting of the garnishee order on the Company’s bank.

GHANA EXPORT PROMOTION AUTHORITY 111. An amount of GH¢253,402.41 transferred to Salon International de L'artisants de Ouagadougou (SIAO) in Ouagadougou, Burkina Faso to facilitate Ghana’s participation in an International Arts and Handicraft Trade Show in 2014 remained unrecovered, even though the fair could not come off due to the outbreak of the Ebola Epidemic. We recommended that management should ensure the recovery of the amount from SIAO the fair Organizers immediately, failing which the paying officer who failed to pursue the recovery should be surcharged with the amount. 112. Special imprest of GH¢82,215.69 granted to seven Officers of the Authority to organise training and awareness programmes for selected farmers in the country as well as the organisation of foreign fairs, were not fully accounted for even though the programme had been completed. We recommended that the officers responsible should account for the shortages immediately.

113. Similarly, a special imprest of GH¢275,704.74 advanced to cater for accommodation and communication during fairs and programmes organised outside Accra is yet to be accounted for. Additionally, funds transferred from the Authority’s project account to various Ghana Missions toward organisation of fairs had not been accounted for. We recommended that, the imprest should be accounted for immediately. We further recommended that management desist from the practice of granting lump sum as special imprest to non-accounting staff; instead it should be the responsibility of the Authority’s accounting staff to handle such special imprest to enhance proper accountability.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 33 MINISTRY OF ENVIRONMENT, SCIENCE AND TECHNOLOGY

BUILDING AND ROAD RESEARCH INSTITUTE (CSIR) 114. We noted that PAYE and Social Security Contributions deducted from staff salaries over the years totaling GH¢954,107.00 were not remitted to the Ghana Revenue Authority (GRA) and Social Security and National Insurance Trust (SSNIT). We therefore advised management to liaise with CSIR Secretariat to clear this outstanding deductions. ROOT AND TUBER CROPS PROJECT (CSIR) 115. The Institute had not received any research grant from the Government since 2013 but continue to pay research staff salaries for no work done which is not a healthy situation. We recommended that the Head Office (C.S.I.R) bring the Government’s attention to this unhealthy situation to enable research work to continue.

SOIL RESEARCH INSTITUTE (CSIR) 116. Contrary to Insurance policy on Commercial buildings, we observed that the office building had not been insured. We recommended that the office buildings be insured without delay.

117. The Institute did not have Title Deeds for the land on which the office buildings were situated. We recommended that immediate steps be taken to obtain title deeds for the Institute’s properties.

118. We observed that most of the chemicals at the stores have expired, and there were visible cracks on most of the test tubes. We recommended that, a Board of Survey should be constituted to oversee the disposal of the expired chemicals.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 34 SOIL RESEARCH INSTITUTE – KWADASO-KUMASI (CSIR) 119. Our stores inspection revealed that most of the chemicals at the stores have expired and tubes used for testing have visible cracks. We recommended that the appropriate authority should be sought for the disposal of the expired or obsolete stocks and deleted from the stores ledger. 120. Section 184(1) and (2) of the Insurance Law, 2006 (Act 742) requires every commercial building to be insured. We however noted that the Institute office building had not been insured as required by the above mentioned law. We recommended that the Institute should have its buildings and other assets insured against fire, burglary and theft.

FORESTRY RESEARCH INSTITUTE (CSIR) 121. Contrary to Regulation 288 (1) of the FAR 2004 (LI 1802) a total amount of GH¢22,563 granted to officials of the Institute for various programmes remained unaccounted for at the end of the year. We recommended that the officers involved should be made to account for the imprest or the amount involved should be adjusted to a personal advance accounts in their names.

FOOD RESEARCH INSTITUTE (CSIR) 122. Contrary to Section 87 (1) of the Internal Revenue Act 2000 (Act 592) as amended and National Pensions Act 2008 (Act 766), we noticed that P.A.Y.E deduction of GH¢75,377.56 and Social Security deductions of GH¢28,500.61 which were outstanding before the Controller and Accountant-General Department took over the preparation of the Payroll still remained unpaid to the appropriate authorities. We recommended that efforts should be made to ascertain the individual details of these outstanding amounts with the view of paying these to the appropriate authorities without further delay.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 35

123. Our audit revealed that some fixed assets belonging to the Food Research Institute were not embossed and most of these were those acquired in 2014. There were also instances where three different fixed assets were given similar identification numbers. We recommended the re-labeling of all the assets and update of the fixed assets register.

124. Sample product for testing the market given to Melcom Stores, Q and O Company in Takoradi, Owura Friends company also in Takoradi among others were not reflected in the books of the institute in contravention to Regulation 1 of FAR 2004 (L.I.1802). We recommended that proper procedures be put in place to ensure that all sales made, be it cash or credit, are properly recorded and accounted for.

ENVIRONMENTAL PROTECTION AGENCY 125. Our visit to the regional and district offices disclosed that most of the laboratories were either not properly equipped or lacked a laboratory technician to operate them. We recommended that efforts should be made to ensure that the laboratories at all the offices are fully equipped and properly manned to ensure that the agency carries out its mandate in a more efficient manner.

CROPS RESEARCH INSTITUTE MIDA PROJECT (BPA – 1101103-09) 126. Contrary to the Internal Revenue Act 2000 (Act 592), we observed that withholding taxes totaling GH¢4,839.06 were not deducted from allowances paid to project staff who were engaged in the training exercise. We recommended that the Institute should

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 36 retrieve the tax from the project staff and pay to the DTRD.

MINISTRY OF HEALTH

NATIONAL HEALTH INSURANCE AUTHORITY 127. We noted that the year on year growth in expenditure of the Authority was significantly higher than the rate of the rate of growth in income. We recommended that management should intensify cost curtailment and cost containment measures so as to manage the operational cost of the Scheme.

128. National Health Insurance Fund established by Section 42(1) of the National Health Insurance Act, 2012, Act 852 was operated by the Controller and Accountant-General’s Department (CAGD) instead of the National Health Insurance Authority/Scheme. We recommended that management liaises with the relevant stakeholders to ensure that the account set up with Bank of Ghana into which SSNIT and the Revenue Collection Agencies pay their collection be operated by the NHIA in accordance with Section 42(1) of the Act and not the CAGD.

129. Contrary to the Ministry of Finance pledge to bear the interest and associated costs on a loan access by the Authority, we noted that not all interest and related costs were paid by the Ministry thus making the Authority incur interest expense of GH¢49,753,222. We recommended that management must work hand in hand with the Ministry of Finance and other stakeholders to ensure that all parties honour their side of the bargain.

130. Notwithstanding Section 3(3) and 3(10) of the National Pensions Act, 2008 (Act 766), we noted that statutory deductions in respect of Social Security and National Insurance Trust for the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 37 purposes of Tier 1 and 2 pensions of the staff were not being paid on time.

131. We recommended that to minimize the risk of interest and penalties on late filing and payments, the Authority should ensure that returns are filed before the deadline and all required payments are made on a timely basis.

132. In contravention to Section 42(1) of the National Health Insurance Act, 2012 (Act 852) we noted that as part of its budgeting process, the Authority sets aside funds to support programmes and institutions referred in the financial statements as support to partner institutions. Beyond disbursement of these funds to the various institutions/entities, no procedure is in place to ascertain that the funds are being applied for the intended purpose. We recommended that the Authority institutes a mechanism that allows them to receive feedback from implementing partners on how the funds advanced to them have been used and also a progress report on the various projects and programmes.

133. Contrary to Section 112(1a) of the National Health Insurance Act, 2012 Act 852, we noted that though the revised National Health Insurance Act was passed in October 2012, a key transitional provision regarding the dissolution of the District Mutual Health Insurance Schemes (DMHIS) which were hitherto operating as companies limited by guarantee was not done as at December 2013. We recommended that Management should intensify efforts at fully integrating the activity of the DMHIS especially in the aspect of financial reporting.

134. In violation of Section 57(2&3) of NHIA, 2003, we noted that the financial statements of all the 60 District schemes visited for the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 38 years 2012 and 2013 were not audited by independent external auditor(s). We recommended that as management work towards a full integration of the schemes into the Authority under the revised Act, management should get financial statements of the schemes audited to the year ended 31 December 2013 so that the balances will be taken on the consolidated report of the Authority from 2014 onwards.

135. We noted a difference of GH¢55,315.44 between amounts of salary support in the books of the Authority and what has been actually received by three Schemes in respect of the 2012 financial year. We recommended that management of the scheme should liaise with management of the Authority with the view to establish causes of the differences to enable them rectify the anomaly.

136. In contravention to Regulation 22(1) of FAR 2004, (LI 1802) we noted a difference of GH¢23,887.90 between premium collections per cash book and the amounts banked in 2 Schemes visited. We also noted at Asunafo North that 10% of the premiums collected amounting to GH¢7,417.00 was deducted as commission before depositing the balance into the bank account. Management should ensure that all premiums collected are paid in gross into the remittance account in a timely manner.

137. Eleven GCR booklets with serial numbers ranging from 1882901 to 1884000 were not found in the GCR register at Builsa National Health Insurance Scheme. We recommended that there should be timely review and reconciliation between the GCR waybill and the GCR register to ensure that all GCR received from head office have been properly accounted for. Further, management should follow the where about of the 11 GCRs in question.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 39 138. Contrary to Regulation 15(1) of FAR 2004 a review of the Ga Mutual bank reconciliation statements of the administrative account indicated an outstanding processing fee of GH¢26,187.00 that had not been banked as at the year-end 2012. Management should ensure that the schedule officers pay back the amount into the scheme account.

139. We observed differences between the total control receipt issued per premium collected and that of the premium collection deposited in the sweeping account of NHIA as per collection reports at Tamale Municipal Mutual Health Insurance Scheme. We recommended that management should retrieve the control receipts to enable us confirm the completeness of the collection report.

140. Our review of sampled medical claims paid in 2012 and 2013 at East Gonja District, Mfantsiman and West Mamprusi District, revealed the absence of vetting report by the medical claims manager. We recommended that vetting reports by the claims Department should be attached to the payment voucher for review by the accounts department before authorization and approval by the Scheme manager.

FOOD AND DRUGS AUTHORITY 141. A separated staff was paid unearned salary of GH¢1,341.96 due to management’s failure to promptly notify his bankers, coupled with the Controller and Accountant General’s Department’s delay in deleting his name from the payroll. We advised management to recover the illegal payment and pay same to chest.

PHARMACY COUNCIL 142. Contrary to Regulation 298 of the F.A.R. 2004 L.I.1802, two separated staff were paid unearned salary of GH¢1,857.74. We

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 40 recommended that management trace the officers to recover the amount involved and pay same into the consolidated fund.

143. Madam Marian Torjagbo, an Inspecting Pharmacist resigned from the Council on November 2013 after completion of her studies without either serving the Council for the stipulated period nor refund the amount of GH¢61,668 to the Council for breach of the contract. We urged management to pursue the matter and recover the GH¢61,448.00 to Government chest without delay.

GHANA COLLEGE OF PHYSICIANS & SURGEONS 144. In contravention of Regulation 295 of the FAR and Regulation 5 of the Retention of Funds Act, 2007, management paid salary related allowances amounting to GH¢507, 240.95 to staff members from their Internally Generated Funds (IGF) for the period under review without any approval from the Minister of Finance. We recommended that management should seek retrospective approval to allow the payment of GH¢507,240.95 stand charged to the account.

NURSING AND MIDWIFERY COUNCIL 145. The Western Regional Accountant failed to account for revenue amounting to GH¢96,882 out of GH¢115,882.00 collected for the period May 2013 to December 2014. Additionally, we noted forged Bank of Ghana stamp on some pay-in slips supposedly used for lodgment of cash to the bank. We recommended to Management to recover the amount involved with interest at the prevailing bank rate and take disciplinary action against the Accountant as provided in Regulation 8 of the Financial Administration Regulation (FAR), 2004 (L.I. 1802).

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 41 146. Similarly, we noted that 4 Regional Accountants at the Council’s Regional offices also did not lodge in full revenue collected amounting to GH¢224,821.50. We recommended to Management, to institute measures that would compel Accountants to promptly lodge all revenue collections within the stipulated time. Meanwhile, the Regional Officers whose Accountants were involved should ensure they refund the moneys with interest and disciplinary action taken against them.

147. Okore Technologies who supplied furniture to the Council was paid GH¢350,000 (representing 50% of the contract sum) as mobilization in contravention of the terms of the contract which does not require the payment of mobilization. We urged management to comply with the terms of the contract to prevent recurrence of the practice in future transactions.

148. Three Canon IR 4045 Photo Copiers totaling GH¢123,994 were procured from Kanakgold Info Tech in 2014 without competitive tendering as required by Section 35 of the Public Procurement Act (PPA). To mitigate the risk of not obtaining value for money, we recommended to Management to ensure that the PPA is followed to the letter.

149. A contract awarded for the procurement of stationary valued at GH¢420,328.00 was fragmented into five lots to avoid the process of competitive bidding and awarded to five contractors, thus circumventing the procurement procedures. We recommended to Management to conform to the dictates of the Act in all future dealings and the Procurement Unit whose inaction resulted in the anomaly sanctioned.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 42 MINISTRY OF TRANSPORTATION

GHANA RAILWAY DEVELOPMENT AUTHORITY 150. Contrary to Section 32(1) and 33(1) of the Railway Act 2008 (Act 779) the Authority is yet to take over the assets and liabilities of the Ghana Railway Company Limited (GRCL). We recommended that the Board of GRDA through the sector Ministry to collaborate with the Board of GRCL for implementation of all aspects of the Act.

151. Contrary to Section 22-25 of the Railway Act 2008, (Act 779) funds transferred into the Railway Development Fund amounting to GH¢205,993.15 were only from sale of tender documents rendering the sustainability of the Fund very risky. Additionally, management had not set up the Fund Management Committee. We recommended that the board should ensure that a Fund management committee is set up and the funds should be invested in fixed deposit.

MINISTRY OF ROADS AND HIGHWAYS

GHANA HIGHWAY AUTHORITY 152. We observed that there was no documentation covering the acquisition of land at the Head Office. We recommended that management should follow up on all the necessary documents on the property.

MINISTRY OF WATER RESOURCES, WORKS AND HOUSING TEMA DEVELOPMENT CORPORATION 153. Contrary to a resolution passed by the Board to close six bank accounts at Standard Chartered Bank we did not sight any correspondence to the effect that the bank has closed the accounts and transferred the balances to Tema Development Corporation (TDC). We recommended that management should take the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 43 necessary steps to follow this issue to recover the monies from the Bank.

154. Even though TDC are now in possession of Adjei Kojo land of a total acreage of 111.53 which is made up of about 839 uncommitted plots, these properties were not included in the schedule of TDC assets. Management must update its assets register by including these properties for close monitoring.

STATE HOUSING COMPANY LIMITED 155. Trade debtors of GH¢557,707 for Greater Accra Region are aging debtors which have been in the books since 2000. We recommended that debt recovery efforts should be strengthened to ensure trade debtors comply with the terms stipulated. Also, management should analyse the aging debtors and take action on the irrecoverable debts.

156. Prices at which two houses were sold were noted to be below the approved selling prices. Additionally, profit margins realized from the sale of these houses were below the Company’s profit margins threshold of 40% as a result of high cost of building houses. We urged management to institute appropriate internal control to ensure that all houses are sold at current prices and proper cost management system is introduced to reduce the cost of building houses.

157. We observed that a land dispute at Kagyase (the only land available for building in the zone) has affected the Company’s operation in the Ashanti Region. We witnessed a vast portion of the land had been occupied by encroachers on our site visit. We recommended to management to secure the land in the zone as these lands are strategically important to revamping of the company.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 44 158. We noted that accumulated balance on statutory deductions totaling GH¢273,854.00 had not been settled in contravention to Section 87(1) of the Internal Revenue Act 2000 (Act 592). We urged management to ensure that all outstanding statutory deductions are paid without further delay.

MINISTRY OF COMMUNICATION

NATIONAL COMMUNICATIONS AUTHORITY 159. Despite our previous recommendation and the requirement for license issued to operators of TV, Commercial FM Stations and Internet Service providers (ISPs) to be renewed every five years, we noted that 14 ISPs had not had their licenses renewed as at the end of 2014. We continue to urge management and the Board of Directors to quicken the process of having these expired licenses renewed. 160. We noted that payments on Capital projects as at year end 31 December, 2014, exceeded the authorized amounts approved by the Central Tender Board by GH¢1,279,895. We urged management to liaise with the consultant on the projects as well as the contractors for the Takoradi and Airport City projects to come out with the necessary revision to the cost to completion for effective budgeting and also to reflect the true Capital Commitment.

GHANA PUBLISHING COMPANY LIMITED 161. Withholding taxes totaling GH¢2,278.44 deducted from allowance paid had not been remitted to the Commissioner, Ghana Revenue Authority (GRA) contrary to Section 87 of Act 592. We recommended that the tax withheld should immediately be remitted to the GRA and ensure that in future all taxes withheld are paid promptly to GRA.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 45 GHANA POST COMPANY LIMITED 162. The Company had not marked a large number of its assets at different locations with the company’s identification marks or tags. We recommended that management should ensure that all assets owned by the Company are appropriately identified with tags or identification marks for easy monitoring and avoidance of unauthorized disposition of these assets.

163. In spite of recommendation made in our previous report, management is yet to acquire title deeds for its landed properties across the country. We recommended that efforts should be made by management to register all landed properties of the company within a defined time frame.

POSTAL AND COURIER SERVICE REGULATORY COMMISSION 164. The Commission failed to include in its Internally Generated Fund (IGF) budget estimates a total of GH¢56,742.00 paid as advances and allowances in 2012 and 2013 in breach of Section 5a of the Retention Funds Act, 2007. Failure to budget for expenditure could result in budget overruns. We recommended that management should include all expenditure in their future budget estimates to ensure that set targets are met.

165. Our audit revealed that Mr. Isaac Annan Riverson a Board Member of the Commission has been acting as the Executive Secretary since December 2012. This contradicts the Public Service Commission Circular Number PSC/APD/01 dated 10 June 2005 concerning acting appointment. We urged the Board as a matter of urgency to expedite action on the appointment of substantive Executive Secretary without further delay.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 46 166. Examination of the fixed assets revealed that the Postal & Courier Service Regulatory Commission does not have any policy on depreciating its fixed assets which contradict Regulation 53 of the L.I. 1802. Failure to depreciate the fixed assets has resulted in overstatement of fixed assets value on the face of the financial statement. We urged management to expedite action in deciding on the depreciation policy without further delay.

MINISTRY OF FOOD AND AGRICULTURE

IRRIGATION DEVELOPMENT AUTHORITY 167. Contrary to Regulation 183 (4) of the FAR, 2004 (L.1.1802) we observed that items totaling GH¢10,147.20 procured during the year 2012 were not made from VAT registered persons. We recommended that management should comply with the Financial Regulation and only procure from VAT registered suppliers.

PROGRAMME FOR THE PROMOTION OF PERENNIAL CROPS IN GHANA – MINISTRY OF FOOD AND AGRICULTURE (AFD LOAN NO. 6008.01 L, GRANT NO. CGH6008.02 M AND KFW LOAN BMZ – NO. 2005 65572) 168. Apart from the counterpart funding disbursed by the GOG, other contributions made by GOG to the project were not quantified and captured as contribution of GOG to the project. Contracts and disbursements made directly by Donors were also not captured in the books of the PCU. We recommended that the PCU, with support from the Ministry of Finance, should as much as practicable determine and quantify all contributions made to the project by the GOG and Donors and should be recognized as GOG contribution to the project.

169. Contrary to the terms of the subsidiary programme

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 47 agreements with the GOG, represented by the Ministry of Finance, an interest element of €2.3 million accruing on the on-lent agricultural credit component of €5.95 million disbursed to financial operators had been shown in the programme’s financial statements. We recommended that the accrued interest of €2.3 million should be reversed in the financial statements in 2015.

170. The programme did not maintain a Contract register to record all commitment for contracts signed by the PPPCG and third parties. We recommended that the PCU should record all commitment for contracts signed by the PPPCG and third parties in a register, which should be updated regularly to reflect the status of contracts, signed by the programme.

CORAF/WECARD COMPETITIVE PROJECTS – SUSTAINABLE INTENSIFICATION INTEGRATED CROPS SMALL RUMINANT PRODUCTION SYSTEMS IN WEST AFRICA – GHANA (SIICSRP – W/A – GH) 171. Contrary to Crops Research Institute policy of paying 10% shares of total project sum towards Institutional Support, we noted that from November 2011 to March 2015, the Project paid GH¢22,860.41 to the Council instead of GH¢132,608.68, a shortfall of GH¢109,748.27. We therefore advised management to ensure compliance of Institutional policies.

CORAF/WECARD COMPETITIVE PROJECTS – PLANTAIN (NO. CW03/01CP/C0/09 – 1.3) 172. Contrary to Crops Research Institute’s policy of paying 10% shares of total project sum towards Institutional Support, we noted that from January 2011 to 31 December 2014, grants totaling GH¢125,700.55 was received by the Institute but there were no deductions made for the Institute in fulfillment of the policy. We

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 48 therefore advised management that all policies relating to Institutional support from projects are fully implemented.

CORAF/WECARD COMMISSIONED PROJECT – RICE YELLOW MOTTLE VIRUS (RYMV) PROJECT (NO. CW/03/01CM/U/09) 173. We noted that, GH¢6,476.80 which represented 10% of the total grants received were not paid to the Institute as required by their policies. Only GH¢936.33 was paid in 2011, representing 14.5% of total sum received. We therefore recommended that, management should ensure that Institutional policies are adhered to.

CSIR –CRI CORAF/WECARD WEST AFRICA SEED PROGRAM (WASP) (NO. AID-624-A-12-00007) 174. We noted during the audit of the project that, an amount of GH¢6,286.83 was overdrawn on the project account at Ecobank Ghana Limited. We therefore recommended that, management should ensure that payments for the project should be within the limit of the project.

NATIONAL BUFFER STOCK COMPANY LIMITED 175. We noted that NAFCO was charged GH¢2,602.03 penalties by SSNIT for late payment of staff contributions. We recommended that management should ensure that pension deductions are paid to SSNIT by the 14 day of the subsequent month as required by Section 63(1) of the National Pensions Act 2008, Act 766 to avoid recurrence.

176. Management is yet to provide documentation to support the award of contract signed between MOFA and FH&C Company Limited, a contracting firm to renovate the Head Office building of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 49 NAFCO at a contract price of GH¢296,785 despite our previous recommendation. We reiterated our earlier recommendation.

177. Contrary to Section 66(1) of the Companies Act 1963 (Act 179) on what constitute stated capital, NAFCO could not provide sufficient evidence to support the opening stated capital of GH¢100,000 and reserves of GH¢14,900,000 reported on the balance sheet. Management should provide adequate supporting documentation for the opening stated capital of GH¢100,000 and reserves of GH¢14,900,000 reported.

178. Out of GH¢55,989 granted as advance to Tamale office for its operation only GH¢34,294 was retired leaving a balance of GH¢21,695 unaccounted for. We recommended that the unsupported amount of GH¢21,695 should be refunded by the Tamale Office if supporting documents cannot be provided.

RURAL ENTERPRISES PROGRAMME INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (LOAN NO. 841 GH) 179. Contrary to Section 1.4.1 of the Manual for Rural Enterprise Development Fund (REDF) and matching Grant Fund (MGF) which requires the Participating Financial Institutions (PFIs) to submit quarterly report we noted that, some PFIs who received the REDF and the MGF on behalf of the clients did not submit their quarterly returns to the PCMU. We recommended that the PCMU should step up its monitoring efforts to ensure the PFIs submit their quarterly returns on time.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 50 MINISTRY OF EMPLOYMENT, LABOUR AND MANPOWER

NATIONAL PENSION REGULATORY AUTHORITY 180. Management authorized the payment of unbudgeted amount of GH¢139,648.86 from its Internally Generated Funds (IGF) as end of year bonus to staff members, in violation of Section 5(a) of the Retention Act, Act 584 beside not seeking approval from the Minister of Finance. For the amount to stand charged to the account, approval should be sought from the Minister or the amount should be recovered to chest.

181. The accounts office did not maintain personal ledgers to adequately monitor recoveries of advances and loans granted to staff members. Management was advised to keep personal ledgers to ensure proper monitoring of recovery of outstanding advances to avoid loss of fund.

182. In contravention of Section 30(1) of the Audit Service Act 2000, (Act 584), management failed to constitute an Audit Report Implementation Committee (ARIC). We recommended that management should liaise with the governing body to establish an ARIC as required to ensure that recommendations in audit and other monitoring reports are implemented to enhance sound financial management.

NATIONAL VOCATIONAL TRAINING INSTITUTE 183. Management’s failure to effectively supervise revenue collection resulted in the Cashier of the Institute not banking a total amount of GH¢5,763.44 at the end of the financial year. This was caused by delayed lodgement of revenue collected totalling GH¢67,103.85 for periods ranging between three to 73 days in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 51 contravention of Regulations 15 & 48 of the Financial Administration Regulations, 2004 (L.I. 1802). We recommended that management should ensure that the Cashier complies with the regulation by lodging revenue collected promptly to avoid any revenue loss. Meanwhile management should ensure that the amount involved is recovered from the Cashier and banked.

184. Debtors schedule of the Institute indicated that only 12 out of 42 staff who were granted loans/advances totalling GH¢32,582.04 between 2011 and 2012 paid back GH¢1,725.64 leaving GH¢30,856.40 in arrears as at 31 December 2012. The delay in recoveries ranges between one to two years. The foregoing situation contravened Regulation 113 (1) of Financial Administration Regulations, 2004 (L.I. 1802). We urged management to introduce and strictly enforce a recovery schedule to ensure timely settlement of the outstanding advances through direct payment by the affected staff. 185. Mr. Anyetei Benjamin who retired from the Institution enjoyed an unearned salary totalling GH¢2,174.12 during the period under review. Even though management made efforts and informed the Controller and Accountant-General Department (C&A-G Dept.) for the deletion of name, the C&A-G Dept. delayed for two months before deletion was effected from the payroll, resulting in the payment of the unearned salary. We urged management to expedite actions to recover the amount, pay same to Government chest and obtain a Treasury Receipt for verification by our office.

186. Equipment purchased during the period reviewed were distributed to user departments without proper documentation. Our physical inspection revealed that, locations of the equipment as indicated by records from the Stores Department and the General Services Department differs from the actual location of the equipment. We recommended that management should ensure the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 52 Stores Department and the General Services Department (GSD) update the inventory register to reflect the appropriate location of the equipment. MINISTRY OF JUSTICE AND ATTORNEY GENERAL COPYRIGHT OFFICE 187. The Copyright Office has not constituted or developed any risk management policy or disaster recovery plan. We recommend to management to ensure that risk awareness is included in its culture and establish a backup system. 188. During the year under review, management received percentage of the blank levy which was not budgeted for and spent accordingly. We recommended that all expected income and expenditure should be budgeted for.

189. We observed during our audit that Copyright Office has not developed a collective bargain agreement upon which allowances are paid. We recommended to management to ensure that such document is put in place as guide in the administering of the office.

190. The supervising officer failed to abide by the Financial Regulation Act by signing the stores issue voucher. In our recommendation we advised the accountant to exercise supervisory authority to prevent possible pilfering of stores items.

191. Our audit revealed that two staffs who retired and resigned from Copyright respectively had their names on the payroll for 12 months before been deleted. We recommended to management to retrieve the amount of GH¢14,556.92 from the separated staffs or their banks.

ECONOMIC AND ORGANIZED CRIME OFFICE (EOCO) 192. Instead of US$366,985.00 and GH¢646,188.35 ordered by the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 53 court to be paid from the EOCO exhibits Account to an applicant, an amount of US$986,024.16 and GH¢646,188.35 were transferred, leading to an excess transfer of US$619,039.16 without authority. We urged management to recover the excess funds of US$619,039.16 or provide justification for the transfer of the amount. 193. Contrary to Regulation 298 of the Financial Administration Regulation (FAR), 2004 (L.I. 1802), six separated staff who retired in 2013 and 2014 enjoyed unearned salaries totaling GH¢22,067.78. We recommended that efforts be made by management to recover the total amount.

194. An amount of GHȼ4,577.63 representing staff debtors remained on the statement of financial position for the past five years without any movement. We advised management to trace the officers involved for recovery or seek authority from the Ministry of Finance through the Sector Ministry with adequate justification for a write off of any irrecoverable debt.

195. Similarly, a total amount of GH¢17,254.63 shown as creditors remained on the financial statement without any movement since 2009. We recommended that management investigate and pay off the liability without further delay to enhance financial discipline.

196. The office operated and conducted business with draft policies which are yet to receive the governing board’s approval. We advised that, the Board’s approval should be immediately sought to officially authorize the policies for enforcement.

197. We noted that no Inventory Register was maintained to record furniture and office equipment of EOCO. We recommended that the Estates and Accounts Department should take the appropriate steps to record all the assets at the Head Office and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 54 Regions in an Inventory Register to enhance effective management of their assets.

LEGAL AID SCHEME 198. Though management promptly notified the Controller and Accountant General Department (C&AGD) for the deletion of the names of two separated staff, however, lack of effective communication with their bankers for the stoppage of the payment of their salaries resulted in the payment of unearned salary totalling GH¢6,958.27. We recommended that efforts be made by management to recover the total amount of GH¢6,958.27 from the separated staff failing which, the Accountant should be surcharged.

199. Management misapplied GH¢91,969.60 on staff advances or loans out of funds meant for Goods and Services. We advised management to desist from the practice since it constitutes misapplication of funds which could impact negatively on the operations of the organisation.

MINISTRY OF TOURISM, CULTURE AND CREATIVE ARTS

GHANA TOURIST BOARD 200. Land title certificate indicating ownership must be obtained from the title registry for land acquired. Contrarily, we observed that the organization did not have title certificate to the land that the head office is situated on. We recommended that management must ensure that the land is properly registered. 201. Contrary to the Internal Revenue Act 2000(Act 592) Section 87(1), and SSNIT law a total amount of GH¢479,163 representing income tax and SSNIT contributions deducted from employees was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 55 not paid to the appropriate bodies. We recommended that management should ensure that the deductions are paid to the appropriate bodies.

202. The Internal Audit Unit did not have an audit programme guiding its operations in violation to Section 16 (3) of the Internal Audit Agency Act. We recommended that the head of internal audit department should prepare a comprehensive audit programme to be followed in the conduct of the audit assignment.

ABIBIGROMMA THEATRE COMPANY 203. A retired staff was paid an unearned salary of GH¢3,212.75 due to management’s non-adherence to Regulation 297 of the FAR, 2004, (L.I.1802). We recommended the recovery of the amount failing which the Accountant, whose negligence resulted in the lapse should be surcharged with the amount involved.

204. The Company did not pursue proactive measures to enable them achieve their revenue targets by failing to liaise with the Ghana Education Service to ascertain assigned textbooks in the approved syllabus so as to base their performances on the textbooks. We advised management to be proactive in their dealings with the relevant stakeholders.

KWAME NKRUMAH MEMORIAL PARK 205. We considered the control over value books to be inadequate as the Supervisor continues to issue roll of tickets to Revenue Collectors even when previous ones had not been fully accounted for. We recommended to management to ensure the completion and accounting of one roll/booklet before the issuance of the next one.

206. Owing to poor supervision, tickets valuing GH¢5,591.00 sold

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 56 at the gate of KNMP were not accounted for. We recommended that management recover the amount involved from the Revenue Collector, Mr. Quansah and pay same into the account and our office informed for verification. NATIONAL COMMISSION ON CULTURE 207. The absence of stringent contract control resulted in the payment of GH¢22,000.00 to PWD (Prestige) for work done at a proposed Craft Village at Kawukudi, near 37 Military Hospital without a Consultant’s certificates as well as not entering it in a contract register to monitor payments. Failure to comply with the control procedure could lead to abuse of the system and payment for work not done. We advised management to provide the certificate(s) substantiating the level of work done for which the contractor deserves the payment.

208. Contrary to Section 48(2) of the Financial Administration Regulation (FAR) 2004, (L.I.1802) management made cash payment of GH¢17,500.00 to Mr. William Boateng for the production of sculptures and paintings for the AU Conference centre in Addis Ababa, Ethiopia. Control procedures provided for in the Regulation to secure optimum value and Parliament’s intention was not followed. To prevent loss of public funds, we advised management to enforce appropriate payment procedure in such circumstances.

209. The Accountant failed to obtain official receipts totaling GH¢23,227.59 from service providers of the Commission in violation of Regulation 15 of the FAR. To ensure accountability and transparency, we advised the Accountant to obtain the receipts from the suppliers serving as evidence of payment, failing which the amount involved should be accounted for.

210. Management disregarded Section 48(2) of the FAR L.I.1802

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 57 by making cash payments to the tune of GH¢18,400.00 instead of cheque. This led to non-payment of tax amounting to GH¢920.00. We advised management to recover the tax and pay same to the Domestic Tax Revenue Division (DTRD) of the Ghana Revenue Authority (GRA) and in future, adhere to the regulation by making payments with cheques.

211. Management failed to provide ownership documents, a proof of ownership to cover two vehicles of the Commission. The absence of ownership documents indicates that the Commission does not own these vehicles legally. We advised management to obtain the necessary ownership documents to avoid litigation.

MINISTRY OF LANDS AND NATURAL RESOURCES

OFFICE OF THE ADMINISTRATOR OF STOOL LANDS (OASL) 212. A Collector of the Commission failed to account for revenue totaling GH¢1,615.00. Further investigations disclosed that the collector, Mr. Koomson died on 21 May 2012. We recommended that management should retrieve the GH¢1,615.00 not accounted for from the guarantors of the late Paul Koomson.

213. The Greater Accra Regional Accountant failed to maintain a cash book to record payment by various revenue collectors in the District before lodging the cash to bank. We could therefore not determine the daily collections from the District and subsequent lodgment to bank at the Regional Office. We urged management to ensure that a summarized revenue cash book is maintained at the Regional Office in order to keep track of all revenue collected from the Districts and subsequent payment to bank.

214. Payment of withholding tax (WHT) deductions of GH¢

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 58 755.40 for the period February 2012 to December 2012 to the Commissioner of the Domestic Tax Revenue Division(DTRD) of the Ghana Revenue Authority (GRA), had been unduly delayed for periods ranging between 20 and 10 months. We recommended that, management of the OASL, GAR remit to the Commissioner without further delay the withholding tax of GH¢ 755.40 to avoid sanctions.

215. Fuel worth GH¢3,275.00 purchased for the running of the official vehicle number GN 558 Z in 2012 was not accounted for in the vehicle log book. We urged the driver to record all future fuel purchases as well as journeys made in the vehicle logbook to ensure transparency and accountability.

MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS AUTHORITY 216. Contrary to Regulation 17 of the Financial Administration Regulation (FAR) 2004, (L.I.1802), the Authority failed to transfer a total amount of GH¢552,955.19 generated as non-tax revenue during the 2013 and 2014 into the consolidated fund. We recommended that management should transfer the unpaid Non Tax Revenue and all future revenue into the appropriate Consolidated Fund account without any further delay and inform our office for verification.

217. Revenue totalling GH¢138,362.00 collected in respect of renting of facilities for the period under review was not banked in contravention of Regulation 15 of the FAR (L.I.1802). We recommended that management should ensure that the Revenue Collectors desist from this practice and comply with the regulations by lodging revenue collected promptly to avoid any revenue loss. Meanwhile the revenue of GH¢138,362.00 should be banked and our office informed for verification and the culprits disciplined as stated

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 59 in Regulation 8(1) of the FAR.

218. Three General Counterfoil Receipts (GCRs) books which were used to collect total revenue of GH¢2,150,738.73 were not made available for our examination. We could therefore not authenticate whether the revenue entered in the cashbook were actually what was receipted. We urged management to make the receipts books available for inspection without further delay.

219. Contrary to Regulation 28 of the L.I.1802, 54 payments totalling GH¢726,954.95 made by the Authority were not covered by receipts. In the absence of valid receipts to authenticate the payments, we recommended that the payments should be disallowed and the paying officer be surcharged with the amount involved.

220. Management of the Authority failed to submit 49 payment vouchers amounting to GH¢279,689.78 in respect of the 2013 and 2014 financial years for our examination. We could therefore not ascertain whether the payments were authorized and approved before they were incurred. We recommended that, management of the National Sports Authority produces the payment vouchers for our examination or consider the payments disallowed and the total amount refunded by the Accounts officers responsible.

221. Contrary to Section 87 of the Internal Revenue Act 2000 (Act 592), management failed to remit to the Commissioner of Domestic Tax Revenue Division (DTRD)of Ghana Revenue Authority (GRA) an amount of GH¢7,055 .00 that was withheld on a transaction. We recommended that management should remit the amount of GH¢7,055.00 to the Commissioner of DTRD of GRA without further delay and submit the receipt to our office for verification.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 60 222. We observed that officers who were granted loans and salary advances totalling GH¢43,722.07 between 2008 and 2014 paid back only GH¢5,213.72 leaving GH¢38,498.35 in arrears as at 31 December 2014. The foregoing situation contravened Regulation 112 & 113 (1) of Financial Administration Regulations (FAR), 2004 (L.I. 1802). We urged management to introduce and strictly enforce a recovery schedule to ensure timely settlement of the outstanding advances and loans.

223. Examination of the noncurrent assets at the Authority revealed that, the National Sports Authority does not have any policy on the depreciation of its fixed asset, contrary to Section 53 of the Financial Administration Act 2003. We advised management to expedite action in deciding on the depreciation policy for its fixed assets without further delay.

224. Our visit to Kumasi revealed that an office rented to Ghana Post has been sub-let to Fidelity Bank without a rent agreement covering the rental leading to inconsistency in the payment of the rent by the occupant. We recommended that the Authority should have a well-documented rent agreement with Ghana Post and subsequently obtain and review the partnership agreement between Ghana Post and Fidelity Bank to ensure that the rent amount is accurately paid.

225. Visits to three project sites of AngloGold-Ashanti funded multipurpose courts revealed that, the courts have developed cracks and the paint used for the marking of the various courts has started fading off due to non-maintenance of the multipurpose courts. We recommended that efforts be made by management to ensure that the Courts are constantly maintained to avoid further deterioration.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 61 EXTRA MINISTERIAL AGENCIES

ELECTORAL COMMISSION 226. Management could not produce a list of motor vehicles disposed off during the year costing GH¢402,328. We urged management to document all its assets to be able to track their existence.

227. Contrary to the provisions of Regulation 39 of the Financial Administration Regulations transactions totaling GH¢18,785.10 from five regions were not properly authenticated. We recommended that the Regional Accountants should ensure transactions are supported with relevant documents failing which the respective schedule officers should be made to refund the amount involved.

NATIONAL POPULATION COUNCIL (NPC) 228. We noted during the audit that an amount of twenty-three thousand one hundred Ghana cedi (GH¢23,100.00) given to eight regions in connection with celebration of world population day is yet to be accounted for. We therefore recommended to management to ensure that the regions involved are made to account for the money without further delay. 229. Our review of financial statements revealed that, management had never depreciated any of its non- current assets in contravention with Financial Administration Act 2003 and good accounting practice. We recommended to management to adhere to the above Act and adopt a good accounting practise to sustain the organization.

230. We further advised management to decide on appropriate method and rate for depreciating its non- current assets and inform our office for verification.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 62

231. We observed that the Council had no asset register in which it records its asset. We recommended that management prepared and maintained an asset register to control its numerous assets.

KOFI ANNAN INTERNATIONAL PEACEKEEPING TRAINING CENTRE (KAIPTC) 232. We noted that account receivables for the year under review increased significantly by 136.3% from a balance of GH¢934,204 in 2013 to GH¢2,207,857 in 2014. We further noted that, staff debtors and accrued income increased marginally but Trade debtors alone was GH¢1,769,537 (2013: GH¢76,008) a rise of 2,228.1%. We therefore recommended that, a credit control team should be put in place to ensure speedy recoveries of all outstanding debts.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 63 PART III

DETAILS OF FINDINGS AND RECOMMENDATIONS

MINISTRY OF ENERGY AND PETROLEUM

GHANA NATIONAL PETROLEUM CORPORATION

Introduction 233. This report relates to the audited consolidated Financial Statements of the Ghana National Petroleum Corporation Group for the year ended 31 December 2013 and 2014.

Operational results 234. The Corporation’s operations for the year under review ended with a profit of GH¢590,327,256 compared with GH¢341,783,338 in 2013, representing an increase of 72.7% improved performance. The detailed performance indicators are shown in Table 1.

Table 1: Consolidated Statement of Profit and Loss for the year 2014 2014 2013 % GH¢ GH¢ Change Sales Revenue 624,716,101 568,331,230 9.9 Cost of Sales (192,006,635) (209,232,047) (8.2) Gross Profit 432,709,466 359,099,183 20.5 Other operating Income 327,540,566 90,667,307 261.3 Share of Profit of Joint 423,881 (325,571) (230.2) Venture Total Income 760,673,913 449,440,919 69.2 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 64 Loss from Refined 34,291,716 9,078,240 277.7 Product General & 87,113,306 67,569,653 28.9 Administrative Expenses Petroleum Project 48,754,179 26,965,435 80.8 Expenditure Finance Charges - 3,991,049 - Share of Associate Loss 166,256 53,204 212.5 Income Tax Expenses 21,200 - - Total Expenditure 170,346,657 107,657,581 58.2 Net Profit 590,327,256 341,783,338 72.7

235. Total Income went up by 69.2% from GH¢449,440,919 in 2013 to GH¢760,673,913 in 2014. The increase was mainly due to 261.3% and 230.2% increases in Other Operating Income and Profit from Joint Venture respectively over the previous year figures.

236. Total Expenditure for the year increased by 58.2% from GH¢107,657,581 in the previous year to GH¢170,346,657 in 2014. This was due to increases in all Expenditure Line Items with exception of finance charges.

Financial position 237. A summary of the corporation’s Group financial position as at 31 December 2014 is presented in Table 2.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 65 Table 2: Consolidated Statement of Financial Position as at 31 December 2014. 2014 2013 % Income GH¢ GH¢ Change Non-current Assets 1,163,676,880 765,158,569 52.1 Current Assets 1,150,646,195 355,655,545 223.5 Current Liabilities 324,754,620 33,517,652 868.9 Non-current Liabilities 411,287,762 98,529,342 317.4 Net Current Assets 825,891,575 322,137,893 156.4 Net Assets 1,578,280,694 988,767,120 59.6 Current Ratio 3.5:1 10.6:1

238. Non-Current Assets increased by 52.1% from GH¢765,158,569 in 2013 to GH¢1,163,676,880 in the current year under review. The rise was due to investment in TEN Projects and additions to Non- Current Assets.

239. Current Assets went up significantly by 223.5% from GH¢355,655,545 in 2013 to GH¢1,150,646,195 in 2014. This was as a result of increases in all component items of the current assets over the previous year’s amount.

240. Current Liabilities also increased by 898.9% from GH¢33,517,652 in 2013 to GH¢324,754,620 in 2014. This was due to 1082.7% increase in Trade and Other Payables over the previous year figure.

241. The Current ratio of the Corporation though decreased from 10.6:1 in 2013 to 3.5:1 in 2014, it still shows that the corporation is capable of meeting its short-term obligations as and when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 66 MANAGEMENT ISSUES

Imprest not Accounted for – US$42,300.00 and GH¢35,415.00 242. Contrary to Regulation 288(1) of FAR, 2004, we noted that various advances totalling US$42,300.00 and GH¢35,415.00 granted to officials to undertake various activities for the corporation had not been accounted for as at 31 December 2014.

243. Management failed to effectively monitor the retirement of imprest hence the lapse. We were, therefore, unable to authenticate whether or not the amount was used in the interest of the corporation.

244. We recommended that management should make the necessary efforts to have the responsible officials retire the imprest or recover the balances by debiting the outstanding amount to their individual personal accounts in accordance with FAR 288(1). 245. According to management, steps are taken to ensure that staffs conform to the laid down procedures.

246. Additionally, we have introduced the use of electronic cards to effect payments that eliminates the need for imprest. The use of these cards ensures that the expenditures are captured and accounted for in the period in which they are incurred.

Failure to conduct audit of the Petroleum Operations 247. In our previous report, management’s attention was drawn to the fact that Section 18.6 of the Petroleum Agreements which empowers GNPC to audit the operations of the partners in the oil industry was not complied with. However, this matter has still not been addressed.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 67 248. This was due to non-enforcement of the terms of the Petroleum Agreement. Without an audit GNPC cannot assure itself that partners are prudently utilising the funds advanced to them.

249. In our view, the payments for the cash calls to the Petroleum operators are advances to them to undertake transactions on behalf of GNPC. There is therefore the need for an audit to assure GNPC that the operators have faithfully discharged their fiduciary responsibilities.

250. We therefore urged Management to exercise the right to audit the Petroleum Partners without further delay. 251. Management responded that consistent with the corporation’s rights under section 18.6 to audit Partners, steps were taken to procure the services of an auditing firm to audit the accounts of the Partners.

252. The Ministry of Finance in conjunction with the Ministry of Petroleum and GNPC have appointed PWC to undertake the diagnostic and compliance audit of the petroleum operations under the Deep Water Tano and West Cape three point and Jubilee field phase 1 development plan and utilization agreement for the period 2008 to 2014.

Improper Documentation and Management of the Corporation Assets Improper documentation on Fixed Assets 253. We noted the following during our examination of the Fixed Asset Register and Physical verification of the corporation’s assets; i) Key documents evidencing the corporation’s ownership of its land and Buildings were not available for inspection.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 68 ii) The Corporation’s vehicles have not been re-registered as government vehicles in compliance with the government’s directives.

The Table 3: shows some exceptions from our physical verification of Assets Item Verified Reference Issue Noted/Remarks Light Industrial Area, Plot No.35/12 & No title deed Tema 13 Redco, Madina, Accra Bungalow No. A2 No title deed and A3 Petroleum House GNPC No evidence of Headquarters ownership House at East Airport H/No. 12 & 30 Title Deed not Plot Sighted House at East Airport H/No. 21 Title Deed not Residential Area Sighted Title Deed not Four-Bedroom House H/No. Ex 8 Sighted Unoccupied Comm.3 & Deteriorating Cracks breakages Enpro Building Title Deed No. and 18281/1990 Deteriorating

254. The Chief Facilities Officer explained that the corporation was unable to register the properties because the parent document from REDCO Limited (the organisation from which GNPC acquired the Lands) is being disputed in the Law Court and thus preventing GNPC from registering its portion at Lands Commission.

255. Also, it came to light that a portion of the Land used as a car park by GNPC at Petroleum House belongs to SIC Limited, hence it

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 69 cannot be registered by GNPC. Though SIC Ltd. agreed to sell the land to GNPC, the transaction had not been concluded.

256. With respect to the Head Office Land, GNPC had written to TDC on three occasions with regards to the preparation of lease Documents.

257. The Light industrial area land at Tema, though not registered Management of GNPC had developed (in 2012) the land by fencing the perimeter of the entire 6.7-acre industrial plot.

258. Inadequate controls over the fixed assets of the corporation expose these assets to theft, misuse and even loss.

259. We recommended that management should ensure the Facilities Department obtains all the vital documentation required for the Corporation’s lands and buildings. Management should also ensure that the corporation’s vehicles are re-registered as government vehicles in compliance with government directives and carry out a complete inventory of all the corporation’s fixed assets so as to update the fixed assets register.

260. Management responded as follows: i. The Facilities Department has commenced the exercise of updating title documents database. Contacts have been made with the Land Title Registry to speed up the documentation process. ii. The corporation intends seeking exemption from this re- registration of vehicles as have been granted to some state Corporation. In line with this objective, management has discussion with the Ministry of energy and Petroleum and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 70 has been directed to submit the detailed vehicle list as a first step of the process. This directive has been duly complied. iii. Management conducts a fixed asset inventory numbering and update of register on a daily basis.

PETROLEUM FUNDS Introduction 261. This report relates to the audited Financial Statements of Petroleum Funds for the year ended 31 December 2014.

Operational results 262. The fund recorded a Net Surplus of US$5,851,349 in the year under review as compared to US$2,519,141 in 2013, representing improved surplus growth of 132.3%.

263. The performance indicators are shown in Table 4.

Table 4: Income and Expenditure Statement for 2014 2014 2013 % US$ US$ Change Investment Income 5,881,040 2,540,104 131.5 Bank Charges (Expenses) (29,691) (20,963) 41.6 Surplus 5,851,349 2,519,141 132.3 264. Investment Income registered a 131.5% or US$3,340,936 increase over the 2013 figure of US$2,540,104 to US$5,881,040 in 2014. The growth or increase in the Investment Income was significantly influenced by the Investment Income from Ghana Heritage Fund which went up by 284.4%.

265. Total Expenses charged to the fund (Bank charges) also went up by 41.6% from US$20,963 in 2013 to US$29,691 in 2014. This was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 71 due to increase in management fee charged by fund managers or Banks.

Financial position 266. A statement of the financial position of the fund as at 31 December 2014 is shown in Table 5. Table 5: Statement of Financial Position as at 31 December 2014 2014 2013 % US$ US$ Change Assets 536,633,137 447,456,203 19.9 Equity 536,633,137 447,456,203 19.9

267. Assets grew by 19.9% or US$89,176,934 from US$447,456,203 in 2013 to US$536,633,137 in 2014. The increase was as a result of 196.1% increase in Bank balance from US$109,069,863 in 2013 to US$322,982,385 in 2014.

268. The Fund Accounts also increased by 19.9% from US$447,456,203 in 2013 to US$536,633,137 in 2014. MANAGEMENT ISSUE

Non-compliance with Investment Checklist 269. Contrary to the compliance checklist for investment purposes for the Ghana Heritage fund which requires that, exposure per issuer shall not exceed 5% of Ghana Heritage Fund Holdings; we noted that the total amount of Heritage fund invested in the US Treasury exceeded the exposure per issuer as per the investment /compliance checklist. Details of the non-compliance are summarized in Table 6.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 72 Table 6: Non-compliance with investment checklist Total Ghana Exposure Acceptable Issuer Settlement Heritage Per Issuer Exposure Per Amount Funds % Issuer US$ Holding % US$ US Treasury 34,942,773 248,915,220 14 5

270. The limits set by the Board did not consider situations where the absence of suitable investments will result in the breach of the base currency.

271. Assets/Securities in the investment portfolio are not aligned with the acceptable risk profile which could result in sub-optimal allocation of resources. Exceeding the exposure per issuer could also result in failure to balance the risks posed by different issuers.

272. Management should ensure that the compliance checklist for investment purposes are strictly adhered to.

273. According to management, the breach of the limitation resulted from the time. Being the base currently, this resulted in the temporary breach. The compliance framework has since been updated to reflect this.

GHANA CYLINDER MANUFACTURING COMPANY LTD Introduction 274. This report relates to the audited financial statements of Ghana Cylinder Manufacturing Company Limited for the year ended 31 December 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 73 Operational results 275. The Company recorded a Net profit of GH¢608,016 in 2013 as against a Net Loss of GH¢231,196 in 2012 representing an improved performance of 363%. Details of the performance indicators of Ghana Cylinder Manufacturing Company Limited are provided in Table 7.

Table 7: Income Statement for 2013 and 2012 2013 2012 % GH¢ GH¢ Change Turnover/Revenue 7,720,494 6,638,927 16.3 Other Income 91,272 7,371 1138.3 Total Income 7,811,766 6,646,298 17.5 Expenditure Cost of Sales 5,811,458 5,595,043 3.9 General & Administrative 977,224 826,949 18.2 Expenses Exceptional Item 415,068 455,502 (8.9) Total Expenditure 7,203,750 6,877,494 4.7 Net Profit 608,016 (231,196) (363)

276. Total Income increased by 17.5% from GH¢6,646,298 in 2012 to GH¢7,811,766 in 2013. This was mainly due to 1,138.3% increase in Other Income and 16.3% increase in Turnover.

277. Total Expenditure also increased by 4.7% from GH¢6,877,494 in 2012 to GH¢7,203,750 in 2013. This was as a result of 3.9% and 18.2% increases in cost of Sales and General and Administrative Expenses respectively over the previous year’s figure.

Financial position 278. Table 8 shows a summarized statement of financial position

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 74 as at 31 December 2013.

Table 8: Statement of financial position as at 31December 2013 2013 2012 % GH¢ GH¢ Change Fixed Assets 12,654,983 3,048,850 315.1 Current Assets 4,606,129 3,154,678 46 Current Liabilities 4,629,017 5,339,080 (13.3) Long-term Loan 1,185,524 1,478,398 (19.8) Net Current Assets (22,888) (2,184,402) (99) Net Assets 11,446,571 (613,950) (1,964.4) Current Ratio 1:1 0.6:1

279. Fixed Assets stood at GH¢12,654,983 at December 2013 compared to GH¢3,048,850 in 2012 representing an increase of 315.1%. The upward trend in Fixed Assets was attributed to the revaluation of the company’s assets during the year under consideration.

280. Current Assets increased by 46% to GH¢4,606,129 in 2013 from GH¢3,154,678 in 2012. The increase was due to GH¢1,000,000 short-term investment in 2013 and 44.2% increase in inventory.

281. Current Liabilities reduced from GH¢5,339,080 in 2012 to GH¢4,629,017 in 2013. This was due to 62.6% and 26.6% decreases in Accruals and short-term loan respectively.

282. Current ratio for 2013 was 1:1 compared to 0.6:1 at the end of 2012.Though the Liquidity position has improved slightly over the previous year, this fell below the standard benchmark of 2:1 indicating the company’s inability to meet its short-term financial

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 75 obligations as and when they fall due.

. NATIONAL ELECTRIFICATION SCHEME

Introduction 283. This report covers the audited Financial Statements of the National Electrification Scheme for the year ended 31 December 2014.

Operational results 284. Presented in Table 9 are the performance indicators for the Scheme.

Table 9: Revenue and Expenditure Statement for 2014 2014 2013 % Revenue GH¢ GH¢ Change Levy Income 9,092,171 8,526,595 6.6 Government Funding 470,149,622 482,024,170 (2.5) Total Revenue 479,241,793 490,550,765 (2.3) Expenditure Direct Project Expenses 466,537,042 479,324,089 (2.7) Administrative & General Exp 5,481,957 2,838,317 93 Total Expenses 472,018,999 482,162,406 (2.1) Surplus 7,222,794 8,388,359 (13.9)

285. Total Income of the company fell by 2.3% from GH¢490,550,765 in 2013 to GH¢479,241,793 in 2014. The decrease was mainly due to 2.5% drop in Government Funding.

286. Total Expenditure for the year under review amounted to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 76 GH¢472,018,999 as against GH¢482,162,406 recorded in 2013. This showed a decrease of 2.1% or GH¢10,143,407 over the previous year’s expenditure and was mainly due to 2.7% decrease in Direct Project Expenses.

287. Net Income Surplus recorded a decrease of 13.9% from GH¢8,388,359 in 2013 to GH¢7,222,794 in 2014. The decline in total income in 2014 contributed to the decrease in the net income.

Financial position 288. The summarized statement of Financial Position for National Electrification Scheme as at 31 December 2014 is shown below:

2014 2013 % GH¢ GH¢ Change Non-Current Assets 5,875,208 3,875,245 51.6 Current Assets 176,848,168 256,736,212 (31.1) Current Liabilities 157,246,929 242,357,804 (35.1) Net Current Liabilities 19,601,239 14,378,408 36.3 Net Assets 25,476,447 18,253,653 39.6 Current Ratio 1.13:1 1.06:1

289. Non-Current Assets stood at GH¢5,875,208 at the end of 2014 as against GH¢3,875,245 in 2013 an increase of 51.6%. Acquisition of Motor Vehicle, Office Furniture, Office Equipment Container Storage and Computer Equipment accounted for the increase. 290. Current Assets decreased by 31.1% from GH¢256,736,212 in 2013 to GH¢176,848,168 in 2014. This was mainly due to 35.6% decrease in inventory, which form 88.2% of the entire Current Asset. Current Liabilities decreased from GH¢242,357,804 in 2013 to GH¢157,246,929 in 2014, representing 35.1% decline.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 77 291. Current Ratio which shows the ability of the scheme to meet its short-term obligations as and when they fall due, improved marginally from 1.06:1 in 2013 to 1.13:1 in 2014 but fell short of the standard benchmark of 2:1. As such the scheme will not be able to meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Delays in Remitting Levies Collected to the National Electrification Fund – GH¢17,999,762 292. Our audit revealed that there were significant delays in remitting Levies collected to the National Electrification Fund. This has been a major weakness observed over the years and despite efforts by the management team to ensure that levies are remitted to the fund, the problem still persist with PURC being the major culprit. Details are the summarized in Table 10.

Table 10: Delays in remitting levies collected to the National Electrification Fund Amount Due Amount Paid Balance 31 Dec. Companies 2014 GH¢ 2014 GH¢ GH¢ ECG 1,402,654 900,000 502,654 VRA 427,418 416,307 11,111 NED 228,277 177,398 50,879 PURC 18,535,118 1,100,000 17,435,118 20,593,467 2,593,705 17,999,762 293. The balance due from ECG increased by 44% from GH¢350,143 in December 2013 to GH¢502,654 in December 2014.

294. Collection from VRA has improved significantly leading to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 78 93% decrease in indebtedness from GH¢153,182 in 2013 to GH¢11,111 in December 2014.

295. NED also performed quite well by reducing its balance due by 55% from GH¢113,311 in 2013 to GH¢50,879 in December 2014.

296. PURC presents the major challenges as the amount to be remitted increased by 60% from GH¢10,879,533 in 2013 to GH¢17,435,118 in December 2014.

297. This practice slowed down the completion of the projects and threaten the sustainability of the scheme. 298. We recommended that the Project Management Team of the National Electrification Scheme should explore alternative means of getting PURC in particular to remit the levies collected to the scheme.

299. Management accepted our recommendation.

Faulty Transformers 300. Transformers installed in some communities we visited where the projects have been commissioned, were faulty and had been energized. There were leakages of oil from some of the transformers.

301. The Communities below are where we observed issues with transformers:  Sege in the Ada West District of the Greater Accra Region.  Kwesitwikwaa in the Agona East District in the Central Region.  Obrawomian and Fosu Dunkwa in the Assin District of the Central Region.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 79  Tainono No.2 in the Jaman South District of the Brong Ahafo Region.

302. The defective transformers are additional cost to the project in term of repairs or replacement.

303. Contractors responsible for areas where there are issues with transformers should be compelled to rectify the problem as soon as possible. Also the project management team should conduct an investigation into the causes of faulty transformers, as this issue continue to recur in all our reports. Management has accepted this for strict compliance and implementation.

304. High incidence of theft of meters resulting in delays in energizing the sub-station.

305. We noted at Kope area in the Awutu Senya District of the Central Region that the sub-station had not been energized because the Contractor noticed a high incidence of theft of meters even before service was extended to the households. The community has been deprived of power even though the Project has been completed.

306. We recommended that the Management team and the contractor should devise a plan to resolve the incidence of meter theft as soon as possible. Also, the project management team should evaluate the causes of the faulty transformers. No management responses.

Faulty Work done on Low Voltage (LV) Lines 307. Stringing of the Low voltage (LV) conductors had a low sag between them in one community.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 80

308. The affected community is Akoley in the Awutu Senya District in the Central Region. We also noted at Akrumatoyom in the Awutu Senya District of the Central Region that the take-off point on the LV poles was mounted too low there by exposing it to children in the community.

309. This is a reflection of poor work done and the consequence of the collapse of the lines could result in the destruction of lives and properties.

310. We recommended that the contractor responsible for the stringing of LV lines should be made to correct the defect to prevent any future loss of life and property. Also fencing should be constructed around take-off points which are close to communities to prevent the occurrence of any casualties in future.

Monitoring of LV Poles in Water Logged Area 311. At Prampram in the Ningo-Prampram district of the Greater Accra Region, we noted that LV Poles were mounted in water logged areas around the Ningo-Prampram Senior High School as at the time of our visit. No precautions were taken to ensure that the poles withstand such adverse environmental conditions. The poles may not last their expected useful lives as they are likely to be damaged by water within a short period of time. Their replacement will result in additional cost to Electricity Company of Ghana.

312. The Contractor should be made to revisit the site and provide any remedial action to ensure that the poles will withstand that environmental condition.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 81 Absence of Fire Insurance Policy for the Materials 313. We noted during our audit that the National Electrification Scheme has no insurance policy covering its materials in all depots over the country. This is a problem which has been reported over the years but has still not been resolved due to lack of funds. However, in view of the high risk involved, we still recommended that the materials should be covered with an insurance policy.

314. In response, management said they are working with its Broker to identify and advise the Ministry on the Fire Insurance policy for the materials and as soon as funds are made available, a Fire Insurance Policy for materials will be implemented.

ENERGY COMMISSION Introduction 315. This report relates to the audited accounts of the Energy Commission for the period 1 January 2013 to 31December 2014.

Operational results 316. The Commission’s operations for the year under review ended with a surplus of GH¢1,115,749 representing a 26.2% decreased as compared to GH¢1,510,912 reported for 2013. Details of the performance indicators are shown in Table 11.

Table 11: Income Statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Revenue Grant 13,413,441 10,091,499 32.9 Other Income - 9,961 - Total Income 13,413,441 10,101,460 32.8 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 82 Personnel Emoluments 4,590,083 4,541,053 1.1 Administrative & General 2,356,925 1,716,342 37.3 Expenses Service Activity Expenses 5,350,684 2,333,153 129.3 Total Expenditure 12,297,692 8,590,548 43.2 Excess of Income over 1,115,749 1,510,912 (26.2) Expenditure

317. Total Income increased by 32.8% from GH¢10,101,460 in 2013 to GH¢13,413,441 in 2014. This increase was as a result of a 32.9% increase in Revenue Grant.

318. Total Expenditure increased by 43.2% from GH¢8,590,548 in 2013 to GH¢12,297,692 in 2014. This was as a result of a significant increase of 129.3% in Service Activity Expenses.

Financial position 319. Below is a summary of the Commission’s financial position as at 31 December, 2014.

Table 12: Assets and Liabilities as at 31st December, 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 6,516,676 6,129,571 6.3 Current Assets 5,938,944 357,700 1,560.3 Current Liabilities 1,323,546 503,687 162.8 Net Current Assets 4,615,398 (145,987) (3,261.5) Current Ratio 4.5:1 0.7:1

320. Non-Current Assets increased by 6.3% from GH¢6,129,571 in 2013 to GH¢6,516,676 in 2014. The increase was as a result of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 83 impact of capital work-in progress transferred into property plant and equipment.

321. Current Assets increased by 1,560.3%, from GH¢357,700 in 2013 to GH¢5,938,944 in 2014. This was primarily due to increase in the Accounts Receivable.

322. Current Liabilities increased by 162.7% from GH¢503,681 in 2013 to GH¢1,323,546 in 2014. This increase was a result of an increase in Accounts payable from a nil balance in 2013 to GH¢346,624 in 2014. Bank overdraft also increased by 2,058.3%.

323. The Commission’s liquidity position as depicted by the current ratio of 4.5:1 in 2014 and 0.7:1 in 2013 shows that the organisation has an improved position and might be able to fulfill its immediate debt as they fall due. MANAGEMENT ISSUES

Un-labelled Assets 324. Contrary to the stores Regulations, 1984, Regulations 1513, we observed that all fixed assets, specifically Furniture, Fittings and Equipment as well as computers and Accessories acquired during the year were not labeled.

325. This implies that the assets of the business have not been sufficiently safeguarded.

326. We recommended to management that any asset purchased in the name of the Commission must immediately be embossed.

327. Management explained that embossment are done in the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 84 ensuring year due to warranty conditions as inscriptions on them could pose problems in situations where they have to be returned to the supplier.

Non-remittance of 15% Levy – PURC – GH¢2,207,673 328. The Public Utilities Regulatory Commission (Amendment) Act 2010 (Act 800), mandates the Public Utilities Regulatory Commission to remit the Energy Commission, 15% of transfers received from GRIDCO.

329. We noted that PURC went contrary to the Act by not remitting the 15% of its transfer received. As of 31 December 2012, an amount of GH¢2,207,673 was confirmed as indebtedness to the commission by PURC.

330. The Commission has therefore been deprived of much needed funds that could have been used for its operations.

331. We recommended to management that they should intensify efforts in letting PURC comply with the law.

332. Management gave the inconsistent flow of funds from clients as the cause and that the Commission will ensure payments are made promptly in the ensuring year.

Non-payment of Statutory Deductions IRS and SSF 333. Contrary to Section 87(1) of IRS Act, 2000 (Act 592) and Section 63(1) of Pensions Act 2008 (Act 766), we noted that payments for PAYE and SSF to GRA and SSNIT respectively, were not made within the period.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 85 334. Non-payment of these deductions can attract punitive penalties as well as distort staff social security payments.

335. We recommended that such payments must be made within stipulated statutory periods to avoid the payment of punitive penalties.

Abandoned Motor Vehicles 336. Section 83 of the Public Procurement Act, 2003 (Act 663) mandates the head of procurement entity to dispose off stocks that are obsolete, redundant and unserviceable or surplus to requirement in an orderly and systematic manner.

337. We however noticed that vehicles that were not in good condition and thus were unused were abandoned and also left to the mercies of the weather.

Details of abandoned vehicle are as follows: No. Vehicle Type Registration Year of No. Purchase I Mitsubishi Gallant GR46177 2006 Ii Toyota Hilux GT7323V 2004 Iii Nissan Pickup GT3008V 2004 Iv Toyota Land Cruiser GT5491V 2003 V Toyota Prado GR7260T 2002 Vi Toyota Prado GR5030T 2002 Vii Toyota Hilux GR5034T 2002

338. Continuous disregard would mean that, these vehicles would

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 86 further deteriorate and as such suffer loss of value.

339. We recommended to the management that the vehicles should be either repaired or disposed off. 340. Management responded that the vehicles have been assessed and a report indicating their disposal has been received. Management has therefore made plans to dispose off the vehicles in accordance with the Procurement Act.

ENERGY COMMISSION – ENERGY FUND

Introduction 341. This report relates to the audited accounts of the Energy Commission –Energy Fund for the year ended 31 December, 2014.

Operational results 342. The Fund’s operations for the year under review ended with a surplus GH¢428,314.00 representing an improved performance of 212.2% as compared to a deficit position of GH¢381,794.00 in 2013. Details of the performance indicators are shown in the Table below.

Table 13: Income Statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Release by CAGD from 1,635,835 1,931,401 (15.3) Petroleum Levy Account Fees from Permits & Licenses 6,286,915 4,014,247 56.6 EDMF Project Fund 1,850,000 284,501 644.5 Other Income 394,336 73,258 438.3 Total Income 10,167,086 6,267,407 62.2 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 87 Promotion of the Energy Efficiency and Productive uses 4,023,071 1,998,563 101.3 of Electricity Renewable Energy Resources 406,521 464,427 12.5 including Solar Energy Human Resources Dev. in the 624,705 533,630 17.1 Energy Sector Other relevant Expenditure 4,684,005 3,652,526 28.2 approved by Commissioner Bank Charges 470 55 754.5 Total Expenditure 9,738,772 6,649,201 46.5 Surplus / (Deficit) 428,314 (381,794) (212.2)

343. Total Income increased by 62.2% from GH¢6,267,407 in 2013 to GH¢10,167,086 in 2014. All income streams increased with the exception of transfer from the petroleum levy account which reduced by 15.2%. Fees from permits and licenses went up by 56.6%, EDMF project fund posted a 644.5% increase. Finally, other income, closed with a 438.3% increase.

344. The Expenditure increased to GH¢9,738,772 in 2014 from GH¢6,649,201 in 2013, representing a 46.5% increment. All expenditure lines went up. Expenditure on promotion of the Energy Efficiency and productive uses of electricity went up by 101.3% from GH¢1,998.563 in 2013 to GH¢4,023,071 in 2014.

Financial position 345. Below is a summary of the Fund’s financial position as at 31 December, 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 88 Table 14: Assets and Liabilities as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Current Assets 512,892 84,578 506.4 Current Liabilities 512,892 84,578 506.4

346. Current Assets increased by 506.4% from GH¢84,578 in 2013 to GH¢512,892 in 2014. This increase was due to increase in Bank Balance.

347. Current Liabilities increased by 506.4% from GH¢84,578 in 2013 to GH¢512,892 in 2014. The increase was due to transfer from Revenue Account of GH¢428,314.

BUI POWER AUTHORITY

Introduction 348. This report covers the audited financial statement of the Bui Power Authority for the year ended 31 December 2013.

Operational results 349. The Authority closed the year 2013 with a surplus of US$941,181 as against US$1,053,526 surplus recorded in 2012. A 10.7% decrease in surplus. 350. Performance indicators for 2013 are shown in Table 15.

Table 15: Income Statement for 2013 2013 2012 % US$ US$ Change Receipts Receipt of Sinohydro 6,366,667 4,622,280 37.7 Other receipts 2,812,030 873,168

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 89 Total Receipts 9,178,697 5,495,448 67.0 Payments Employer’s Engineering & 7,127,706 4,250,196 67.7 Adm. Costs Irrigation 168,442 138,150 21.9 Resettlement 941,368 53,576 1,657.1 Total Payments 8,237,516 4,441,922 85.4 Surplus/(Deficit) 941,181 1,053,526 (10.7) Exchange Gain/(Loss) (47,421) 97,953 (148.4) Closing Cash Balance 893,760 1,151,479 (22.4)

351. Total Income made up of Receipts from Sinohydro and Other Receipts increased by 67.0% from US$5,495,448 in 2012 to US$9,178,697 in 2013. This was due to a 184.1% rise in Sundry Receipts and 37.7% rise in receipts from Employer’s Engineering and Administration Costs.

352. Total Expenditure for the year under review was US$8,237,516 as compared to the figure of US$4,441,922 for 2012 representing an increase of 85.4%. The rise was due to additions in Resettlement Costs as well as Employer’s Engineering & Administration Costs.

353. The Closing Cash Balance also decreased marginally by 22.4% from US$1,151,479 in 2012 to US$893,760 in 2013.

Financial position 354. Presented in Table 16 is the financial position of the Authority as at 31 December 2013.

Table 16: Financial Position as at 31 December 2013

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 90 2013 2012 % US$ US$ Change Capital Work-in-Progress 626,203,209 574,724,109 9.0 Current Assets 163,876,928 27,948,599 486.4 Liabilities - 63,043,331 - Represented by: Investment by 790,080,137 539,629,377 46.4 Government of Ghana

355. Capital Work-In-Progress increased marginally by 9.0% from US$574,724,109 in 2012 to US$626,203,209 in 2013. This increase was mainly due to additional payments for Work certified.

356. Current Assets made up of Prepaid Insurance, Accounts Receivable and Cash and Cash Equivalents increased significantly by 486.4% from US$27,948,599 in 2012 to US$163,876,928 in 2013. This increment was due to 18.4% increase in Prepaid Insurance from US$25,000,000 in 2012 to US$29,601,123 in 2013.

357. There was however no Liabilities recorded for the period under review as against US$63,043,331 recorded in 2012. This was as a result of recoveries of advances given and payments made during the period to offset the total certified interim payment applications.

358. Investment by Government of Ghana (GOG) increased by 46.4% from US$539,629,377 in 2012 to US$790,080,137 in 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 91 MANAGEMENT ISSUES

SSF Tier 2 contributions deducted not transferred to SSNIT or Fund Manager – GH¢46,592 359. The National Pensions Act 2008, (Act 766) has set up a three tier pensions scheme. The second tier mandatory employee contribution is to be privately managed. However due to delays in licensing Fund Managers and Custodians, the National Pensions Regulatory Authority (NPRA) requested SSNIT to collect tier 2 contributions until NPRA had completed the process of licensing administrators, fund managers and custodians.

360. We noted that for the period January 2013 to September 2013, BPA paid tier 2 contributions to SSNIT. However, for the period October to December 2013, no payment was made although an amount of GH¢46,592 had been deducted from staff salaries as their tier 2 contributions.

361. Management explained that this was because SSNIT indicated it was not going to continue receiving tier 2 contributions, and BPA had not yet selected a Fund Manager.

362. Employees have lost interest on those contributions since the funds were not invested.

363. Management should conclude on the selection of a private fund manager and transfer the funds to them appropriately.

364. Management responded that it has selected Enterprise Insurance as Fund Manager for Tier 2 contributions and payments are now being effected every month.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 92 Non-Compliance with Procurement Act 365. Section 17 (1) of Public Procurement Act, 2003, (Act 663) provides that “each procurement entity shall establish a Tender Committee in the manner set out in schedule 1”. Further, Section 21 (1) of a procurement plan is to support its approved programme. Lastly, Section 35 (1) of Act 663 provides that “A procurement entity shall procure goods, services or works by competitive tendering except as provided in this part” contrary to the above provisions.

366. We noted the following during the audit: . BPA did not have a Tender Committee . BPA did not have a procurement plan . BPA carried out procurement during the period but there was no evidence that competitive process had been followed.

Table 17: presents the details of the significant payments made during the year Descrip Vendor Contract Amt. paid Comments tion Sum during 2013 Forty Mechani US$1,346,000 US$504,750 The total contract (40) Ford cal Lloyd sum was to procure Ranger 40 pick-ups at a unit Double cost of US33,650 each. Pick-ups The payment made was an advance payment for initial order of 25 pick-ups. The payment was made on 24 December 2013. Lease of Tema GH¢210,496 GH¢210,496 The contract sum is land for Devt. made up of ware- Corp GH¢209,760 as Land

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 93 house (TDC) Management Fee and GH¢736 as the annual Ground Rent. The payment was made on 16 September 2013. 367. The non-compliance of the PPA Act, 2003 (Act 663) was because in Managements’ opinion procurement done during the construction phase of the Bui Dam should not be subjected to the Public Procurement Act.

368. BPA management has not complied with the provision of the Public Procurement Act, 2003, (Act 663).

369. We recommended that the Board should take the necessary steps to ensure compliance with the provisions of the Public Procurement Act, 2003, (Act 663).

370. Management responded that necessary steps are being taken to comply with the Public Procurement Act, 2003, (Act 663).

GHANA ATOMIC ENERGY COMMISSION - SECRETARIAT

Introduction 371. This report relates to the audited accounts of the Ghana Atomic Energy Commission Secretariat for the year ended 31 December 2013.

Operational results 372. The Secretariat ended the year with a deficit of GH¢325,448 as compared to GH¢653,882 deficit in 2012, representing a 50.2% decrease in the deficit position. Presented in Table 18 are the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 94 performance indicators.

Table 18: Income and Expenditure Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government 37,285,409 39,985,943 (6.8) Subvention Internally Generated 770,907 682,451 13.0 Fund Other Income 931,067 594,177 56.7 Donor Funds/Grants 100,262 128,400 (21.9) Total Income 39,087,645 41,390,971 (5.6) Expenditure Compensation for 36,840,997 39,644,063 (7.1) Employees Goods and Services 2,572,096 2,400,790 7.1 Total Expenditure 39,413,093 42,044,853 (6.3) Deficit (325,448) (653,882) (50.2)

373. Total Income decreased to GH¢39,087,645 in 2013 from GH¢41,390,971 in 2012, representing 5.6% drop. This was as a result of a 6.8% decrease in Government subvention which dropped to GH¢37,285,409 in 2013 as against GH¢39,985,943, in 2012.

374. Total Expenditure reduced by 6.3% from GH¢42,044,853 in 2012 to GH¢39,413,093 in 2013. The fall was primarily due to reduction in compensation for Employees which dropped to GH¢36,840,997 in 2013 from GH¢39,644,063 in 2012, representing 7.1% decrease.

Financial position 375. The Financial Position of the Secretariat as at 31December

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 95 2013 is summarized in Table 19.

Table 19: Financial Statement as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 2,110,063 2,444,033 (13.7) Current Assets 609,610 56,544 978.1 Current Liabilities 1,149,177 611,969 87.8 Net Current Assets (539,567) (555,425) (2.9) Net Assets 1,570,497 1,888,608 (16.8) Current Ratio 0.5:1 0.1:1

376. Non-Current Assets reduced by 13.7% from GH¢2,444,033 in 2012 to GH¢2,110,063 in 2013. The fall was as a result of decreases in Property, Plant & Equipment from GH¢2,441,451 in 2012 to GH¢2,107,481 in 2013. Investment remained the same for both years.

377. Current Assets increased to GH¢609,610 in 2013 as compared to GH¢56,544 in 2013, representing 978.1%. This was as a result of a 1,139,1% increase in Cash and Bank Balances.

378. Current Liabilities went up by 87.8% from GH¢611,969 in 2012 to GH¢1,149,177 in 2013. This was mainly due to a 61.7% increase in Accounts Payable.

379. Current Ratio for 2013 which is 0.5:1(2012; 0.1:1) indicated that the Secretariat might face difficulty in meeting its short term financial obligations.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 96 GHANA ATOMIC ENERGY COMMISSION NATIONAL NUCLEAR RESEARCH INSTITUTE Introduction 380. This report relates to the audited accounts of the Ghana Atomic Energy Commission – National Nuclear Research Institute for the year ended 31 December 2013.

Operational results 381. The Institute recorded a deficit of GH¢45,270.00 in 2013 as compared with GH¢101,055.00 surplus in 2012, representing a decrease of 144.8%. Table 20 shows the details on the performance indicators.

Table 20: Income and Expenditure Statement for 2013 Income 2013 2012 % GH¢ GH¢ Change Government 5,770,211 8,267,650 (30.2) Subvention Miscellaneous 362,526 488,290 (25.8) Income Total Income 6,132,737 8,755,940 (30.0)

Expenditure Personnel 5,742,898 8,164,929 (29.7) Emolument Travelling & 64,533 110,635 (41.7) Transport General Expenses 171,722 196,642 (11.1) Repairs & 28,268 33,524 (15.7) Maintenance Other Recurrent 170,586 149,155 14.4 Expenses Total Expenditure 6,178,007 8,654,885 (28.6)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 97 382. Total Income reduced by 30% from GH¢8,755,940 in 2012 to GH¢6,132,737 in 2013. The reduction in total income was mainly due to the decrease in Government subvention by 30.2% and 25.8% decrease in miscellaneous income.

383. Total Expenditure recorded a 28.6% decrease to close at GH¢6,178,007 in 2013 from GH¢8,654,885 in 2012. All cost items recorded reduction in 2013 with exception of Other Recurrent Expenses which increased by 14.4%.

Financial position 384. Below is a summary of the Institute’s financial position as at 31 December 2013.

Table 21: Assets and Liabilities as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 237,717 176,009 35.1 Current Assets 111,401 142,823 (22.0) Current Liabilities 122,074 74,092 64.8 Net Current Assets (10,673) 68,731 (115.5) Net Assets 227,044 244,740 (7.2) Current Ratio 0.9:1 1.9:1

385. Non-Current Assets increased by 35.1% from GH¢176,009 in 2012 to GH¢237,717 in 2013. Investment remained the same. However, property, plant and equipment increased by 35.2% as a results of additions during the year.

386. Current Assets went down by 22% from GH¢142,823 to GH¢111,401 in 2012 and 2013 respectively. The fall was primarily

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 98 due to the 77.4% decrease in Cash and Bank balances, from GH¢130,300 in 2012 to GH¢29,438 in 2013. Although Accounts Receivable increased by 554.5% from GH¢12,523 in 2012 to GH¢81,963 in 2013, the absolute reduction in the Cash and Bank Balances was huge enough to erode the increases.

387. Current Liabilities increased by 64.8%, from GH¢74,092 in 2012 to GH¢122,074 in 2013. The rise was due to the institute’s having an overdraft in the current year of GH¢9,821 and increased in Accounts payable of 48.1% and Accruals of 77.1%. 388. Current Ratio in 2012 of 1.9:1 worsened in the current year showing 0.9:1. This indicates the inability of the Institute to meet its short term obligations as and when they fall due.

GHANA ATOMIC ENERGY COMMISSION RADIATION PROTECTION INSTITUTE

Introduction 389. This report relates to the audited accounts of the Ghana Atomic Energy Commission- Radiation Protection Institute for the year ended 31 December 2013.

Operational results 390. The Institute closed the year with a surplus of GH¢540,073 as against GH¢266,583 reported in 2012, representing a 102.6% increment. Presented in Table 22 are the performance indicators.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 99

Table 22: Income and Expenditure Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government Subvention 3,532,146 5,056,008 (30.1) Internally Generated Fund 1,563,079 1,130,663 38.2 Other Income 52,354 6,526 702.2 Total Income 5,147,579 6,193,197 (16.9) Expenditure Compensation for Employees 3,531,224 5,010,995 (29.5) Material – Office Suppliers 68,779 79,245 (13.2) Utilities 13,130 21,389 (38.6) General Cleaning 1,170 1,187 (1.4) Training – Transport 283,484 174,234 62.7 Repairs – Maintenance 33,376 74,368 (55.1) Training - Seminars – 166,344 201,013 (17.3) Conferences Other Charges – Fees 18,980 9,368 (102.6) Consumption of Fixed Capital 142,322 55,660 155.7 Employees Social Benefits 145,204 76,366 90.1 General Expenses 203,493 222,729 (8.6) Total Expenses 4,607,506 5,926,614 (22.3) Surplus Transferred 540,073 266,583 102.6

391. Total Income reduced by 16.9%, from GH¢6,193,197 in 2012 to GH¢5,147,579 in 2013. The fall was due to a 30.1% decrease in Government Subvention.

392. Total Expenditure decreased to GH¢4,607,505 in 2013 as against GH¢5,926,614 in 2012, representing 22.3%. All expenses reduced with the exception of travel and transport, consumption of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 100 Fixed Capital and Employer Social Benefits.

Financial position 393. Table 23 shows the financial position of the Institute as at 31 December 2013.

Table 23: Financial Position for year ended 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 1,015,240 724,186 40.2 Current Assets 777,807 537,330 44.3 Current Liabilities 32,009 40,551 (21.0) Net Current Assets 745,798 496,779 50.1 Net Assets 1,761,038 1,220,965 44.2 Current Ratio 24.3:1 13.3:1

394. Non-Current Assets increased by 40.2% from GH¢724,186 in 2012 to GH¢1,015,240 in 2013. The rise was due to an increase of GH¢433,376 in property plant and equipment from GH¢721,387 in 2012 to GH¢1,012,441 in 2013.

395. Current Assets went up by 44.3%, from GH¢537,330 in 2012 to GH¢777,807 in 2013. There were increases in both accounts receivable and cash and bank balance, of 29.8% and 2.3% respectively.

396. Current Liabilities decreased by 21.0% from GH¢40,551 in 2012 to GH¢32,009 in 2013. This was due to a reduction in Accounts Payable.

397. Current Ratio of 24.3:1(2012; 13.3:1) indicates that the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 101 Institution can meet its immediate financial obligations as and when they fall due. GHANA ATOMIC ENERGY COMMISSION – GRADUATE SCHOOL OF NUCLEAR AND ALLIED SCIENCES

Introduction 398. This report relates to the audited financial statements of the Ghana Atomic Energy Commission – Graduate School of Nuclear and Allied Sciences for the period ended 31 December 2013.

Operational results 399. The Institute closed 2013 with a surplus of GH¢165,308 as compared with that of 2012 which recorded GH¢1,075, representing 15,277.5% increase. Details of the performance indicators are shown in Table 24.

Table 24: Income and Expenditure statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government Subvention 7,200 16,044 (55.1) Internally Generated Funds 81,183 85,510 (5.1) Other/Miscellaneous Income 69,915 50,912 37.3 Academic User Fee 678,434 1,267,624 (46.5) Total Income 836,732 1,420,090 (41.1) Expenditure – Goods & Services Materials – Office Supplies 38,654 44,964 (14.0) Utilities 4,295 2,173 97.7 General Cleaning 6,122 10,037 (39.0) Travel – Transport 96,828 91,772 5.5 Repairs –Maintenance 37,082 48,076 (22.9)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 102 Training – Seminars- 101,007 85,529 18.1 Conferences Other Charges Fees 16,554 8,651 91.4 Consumption on Fixed 76,154 69,398 9.7 Capital Employees Social Benefit 35,348 37,071 (4.7) Other General Expenses 259,380 1,021,344 (74.6) Total Expenditure 671,424 1,419,015 (52.7) Surplus/(Deficit) Transferred 165,308 1,075 15,277.5

400. Total Income reduced by 41.1% from GH¢1,420,090 in 2012 to GH¢836,732 in 2013. The decrease was mainly due to both absolute and percentage reduction in the various income streams with the exception of Other Income.

401. Total Expenditure reduced to GH¢671,424 in 2013 from GH¢1,419,015 in 2012, representing a 52.7% reduction. The decreased was due to the reduction in most expenditure items however both percentage and absolute reduction in other-general expenses dropped to GH¢259,380 in 2013 from GH¢1,021,344 in 2012.

Financial position 402. The overall financial position of the Institute showed an upward movement in Net Assets from GH¢506,011 in 2012 to GH¢671,319 in 2013 representing a 32.7% increase. Details are shown in Table 25.

Table 25: Financial Position as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 243,079 270,308 (10.1)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 103 Current Assets 681,080 286,248 137.9 Current Liabilities 252,840 50,545 400.2 Net Current Assets 428,240 235,703 81.7 Net Assets 671,319 506,011 32.7 Current Ratio 2.7:1 5.7:1

403. Non-Current Assets decreased by 10.1%, from GH¢270,308 in 2012 to GH¢243,079 in 2013.This was due to depreciation charged for the year.

404. Current Assets increased by 137.9% from GH¢286,248 in 2012 to GH¢681,080 in 2013. This was as a result of a 138.8 increase in Cash and Bank Balances, from GH¢285,228 in 2012 to GH¢681,080 in 2013.

405. Current Liabilities also increased to GH¢252,840 in 2013 from GH¢50,545 in 2012, representing 400.2% increase. The increase was primarily due to a 472.0% increase in Accounts Payable.

406. Current Ratio for 2013 was 2.7:1 (2012:5.7:1) indicating the ability of the institute to meet its short-term financial obligations as and when they fall due.

GHANA ATOMIC ENERGY COMMISSION – BIO TECHNOLOGY AND NUCLEAR AGRICULTURE RESEARCH INSTITUTE - BNARI

Introduction 407. This report relates to the audited accounts of the Ghana Atomic Energy Commission-Biotechnology and Nuclear Agriculture

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 104 Research Institute for the year ended 31 December, 2013. Operational results 408. The Institute closed 2013 with a deficit of GH¢59,877 as compared to GH¢17,119 in 2012, representing 249.8% increase. Details of the performance indicators are shown in Table 26.

Table 26: Income and Expenditure Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government Subvention 4,974,905 7,018,243 (29.1) Internally Generated Fund 125,101 67,020 86.7 Other Income 28,029 10,659 163.0 Donor fund 2,867 101,470 (98.0) Grants 135,241 26,764 405.3 Total Income 5,266,144 7,224,156 (27.1) Expenditure Compensation for 4,960,571 6,980,647 (28.9) Employees Materials – Office Supplies 27,250 24,691 10.4 Utilities 9,505 779 1,120.2 General Cleaning 1,424 1,990 (28.4) Travel – Transport 44,018 38,669 13.8 Repairs – Maintenance 14,921 18,106 (17.6) Training – Seminars – 569 1,212 (53.1) Conferences Other Charges – Fees 7,905 7,555 4.6 Consumption of Fixed 165,915 79,248 109.4 Capital Other General Expenses 93,942 88,379 6.3 Total Expenditure 5,326,021 7,241,276 (26.5) Surplus/(Deficit) (59,877) (17,119) 249.8

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 105 409. Total Income decreased to GH¢5,266,144 in 2013 by 27.1% as compared with GH¢7,224,156 in 2012. This was mainly due to 29.1% drop in Government Subvention which was GH¢7,018,243 in 2012 and dropped to GH¢4,974,905 in 2013.

410. Total Expenditure reduced by 26.5% from GH¢7,241,276 in 2012 to GH¢5,326,021 in 2013. This was primarily due to reduction in compensation for employees. This reduced by 28.9% from GH¢6,980,647 in 2012 to GH¢4,960,571 in 2013. Financial position 411. The financial position of the Institute as at 31 December 2013 is summarized in Table 27.

Table 27: Financial Statement as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 988,039 1,335,026 (26.0) Current Assets 95,199 71,276 33.6 Current Liabilities 26,710 19,878 34.4 Net Current Assets 68,490 51,398 33.3 Net Assets 674,814 999,962 23,8 Current Ratio 3.6:1 3.6:1

412. Non-Current Assets reduced by 26% from GH¢1,335,026 in 2012 to GH¢988,039 in 2013. The drop was as a result of depreciation.

413. Current Assets increased to GH¢95,199 in 2013 from GH¢71,276 in 2012 representing a 33.6% increment. This was mainly as a result of increase in Cash and Bank balance from GH¢69,471 in 2012 to GH¢95,199 in 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 106 414. Current Liabilities increased by 34.4% from GH¢19,878 in 2012 to GH¢26,710 in 2013. This was as a result of a 39.4% increase in Accruals which increased to GH¢20,418 in 2013 from GH¢14,652 in 2012. 415. Current Ratio remained the same at 3.6:1 in both years. The result shows the Institute’s ability to meet its short-term financial obligations.

GHANA ATOMIC ENERGY COMMISSION – RADIOLOGICAL AND MEDICAL SCIENCE RESEARCH INSTITUTE - RMSRI Introduction 416. This report covers the audited accounts of the Ghana Atomic Energy Commission – Radiological and Medical Science Research Institute – RMSRI, for the period ended 31 December 2013.

Operational results 417. The year 2013 ended with a deficit of GH¢21,881 representing 45.6% increase in the deficit position of the previous period’s deficit of GH¢15,032. Presented in Table 28 is a summary of the performance indicators.

Table 28: Income and Expenditure Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government Subvention 6,700 18,294 (63.4) Internally Generated 4,553 6,679 (31.8) Fund Other/Miscellaneous 6,350 10,000 (36.5) Income Total Income 17,603 34,973 (49.7) Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 107 Materials – Office 2,788 2,858 (2.5) Supplies Utilities 100 355 (71.8) Travel – Transport 10,392 10,209 1.8 Repairs – maintenance 773 1,455 (46.9) Training – Seminars – 1,358 7,040 (80.7) Conferences Other Charges – Fees 5,565 4,497 23.7 Consumption of Fixed 13,141 12,215 7.6 Capital Employer Social Benefits 1,131 5,303 (78.7) – Cash Other – General Expenses 4,236 6,073 (30.3) Total Expenditure 39,484 50,005 (21.0) Excess of (21,881) (15,032) 45.6 Income/(Expenditure)

418. Total Income decreased by 49.7% from GH¢34,973 in 2012 to GH¢17,603 in 2013. All revenue streams saw high reductions most especially Government Subvention which reduced by 63.4%.

419. Total Expenditure closed at GH¢39,484 in 2013 from GH¢50,005 in 2012 representing a 21% decrease. The reduction was mainly due to significant decreases in most of the expenditure items.

Financial position 420. The financial position of the Institute as at 31st December 2013 is indicated in Table 29.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 108 Table 29: Financial Statement as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 42,876 50,367 (14.9) Current Assets 1,156 9,996 (88.4) Current Liabilities 20,648 15,098 36.8 Net Current Assets (19,492) (5,102) 282.1 Net Assets 23,384 45,265 (48.3) Current Ratio 0.1:1 0.7:1

421. Non-Current Assets reduced by 14.9% from GH¢50,367 to GH¢42,876 in 2012 and 2013 respectively. This was as a result of depreciation charged for the year.

422. Current Assets reduced by 88.4% to GH¢1,156 in 2013 from GH¢9,996 in 2012. The reduction was due to significant reduction in Cash & Bank Balances.

423. Current Ratio for both years indicates an unfavourable position. Thus in the short-term the Institute may not be able to fully cover its financial obligations. The 2012 result of 0.7:1 was reduced to 0.1:1 in 2013.

GHANA GRID COMPANY LIMITED

Introduction 424. This report covers the audited accounts of the Ghana Grid Company Limited for the year ended 31 December 2014.

Operational results 425. Total Income for the year under review grew by 37.2% from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 109 GH¢338,500 in 2013 to GH¢464,484 in 2014. Revenue generated from transmission of power went up by 30.6% and it constituted about 85.2% of the total revenue realized. The other income also rose by 121.2% and this was mainly due to a significant increase in exchange gain during the year. The performance indicators are shown in Table 30 below.

Table 30: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Changes Revenue 395,941 303,236 30.6 Other Income 64,298 29,064 121.2 Finance Income 4,245 6,200 (31.5) Total Income 464,484 338,500 37.2 Expenditure Direct Costs 247,900 185,530 33.6 General & Administrative 72,796 52,494 38.7 Expenses Finance Costs 122,544 48,154 154.5 Tax Expenses 62,747 35,523 76.6 Total Expenditure 505,987 321,701 57.3 (Loss)/ Profit for the year (41,503) 16,799 (347.1)

426. Total Expenditure also increased by 57.3% from GH¢321,701 in 2013 to GH¢505,987 in 2014. The increase was mainly due to33.6% increase in Direct Cost. A 154.5% increase in finance cost was as a result of significant increase in Exchange loss from GH¢40,363 in 2013 to GH¢111,091 in 2014 or 175.2% rise.

427. The Company’s operations for the year 2014 ended with a

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 110 deficit of GH¢41,503 as compared to a surplus of GH¢16,799 recorded in 2013, thus showing a drop of 347.1%.

Financial position 428. Details of the Company’s financial position as at 31 December 2014 are shown in the Table below:

Table 31: Financial position as at 31 December 2014 2014 2013 % GH¢ GH¢ Changes Non-Current Assets 2,500,584 1,632,522 53.2 Current Assets 531,219 371,822 42.9 Current Liabilities 287,392 137,827 108.5 Non-Current Liabilities 1,007,782 565,633 78.2 Net Assets 1,736,629 1,300,884 33.5 Current Ratio 1.8:1 2.7:1

429. Non-Current Assets rose by 53.2% to GH¢2,500,584 in 2014 from GH¢1,632,522 in 2013. This was as a result of gross revaluation adjustments to Transmission Assets, Buildings and motor vehicles.

430. Current Assets increased by 42.9% from GH¢371,822 in 2013 to GH¢531,219 in 2014. This was due to increases in Inventories and Trade and Other receivables.

431. Current Liabilities stood at GH¢287,392 in 2014 as compared to GH¢137,827 in 2013, showing a rise of 108.5%. Trade and other payables accounted for the rise.

432. Non-Current Liabilities also increased by 78.2% from GH¢565,633 in 2013 to GH¢1,007,782 in 2014. Increase in Borrowings

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 111 accounted for the rise.

433. Liquidity outlook needs to be improved as it fell from 2.7:1 in 2013 to 1.8:1 in the year under review.

MANAGEMENT ISSUE

Breach of Agence Francaise de Development (AFD) Loan covenant ratio 434. We noted that, the debt agreement with AFD requires that, the Company maintain a debt service ratio of 1.4; however, the company has violated the agreement and its debt service ratio for August 2014 was 0.86.

435. Non-compliance with agreed debt covenants may trigger early repayments, non-approval of subsequent disbursements or penalties payments.

436. We therefore recommended that, management should monitor loan covenants to ensure compliance.

437. In response, management attributed this anomaly to cash flow challenges but accepted the recommendation to comply with the debt covenant ratio.

Long outstanding debtors – GH¢152.7 million 438. We observed that 80% of the Company’s trade receivables are over sixty (60) days contrary to the laid down policy.

439. We further noted that, out of the GH¢224.5 million owed by

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 112 Electricity Company of Ghana to the Company, 68% of this balance is over 60 days past due as at 31 December 2014. 440. There is the possibility that, these long outstanding receivables may become bad debt one day and impact negatively on the Company’s operating cash flow, if not checked now.

441. We recommended that, measures should be put in place to ensure timely collection of fees from services rendered.

442. Management responded that almost all transmission debtors pay on time except ECG and VALCO which are related parties. Management has engaged key stakeholders including the Ministries of Finance and Power, PURC and other industry players to resolve these delayed payments.

UNIFIED PETROLEUM PRICE FUND

Introduction 443. This report relates to the audited accounts of the unified Petroleum Price Fund for the year ended 31 December 2014.

Operational results 444. The year 2014 ended with a surplus of GH¢85,650,916 which is 68.2% increase from GH¢50,930,143 in 2013. Details of the performance indicators are shown in Table 32.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 113 Table 32: Income and Expenditure statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Fund Income 451,499,947 284,900,345 58.5 Other Income 653,340 2,123,183 (69.2) Total Income 452,153,287 287,023,528 57.5 Expenditure Operational Cost 354,393,959 230,159,871 54.0 Levy /Charges on 3,963,350 3,198,057 23.9 the Fund General & 8,145,062 2,735,457 197.8 Administrative Expenses Total Expenditure 366,502,371 236,093,385 55.2 Surplus 85,650,916 50,939,143 68.2

445. Total Income increased from GH¢287,023,528 in 2013 to GH¢452,153,287 in 2014 by 57.5%. This was as a result of 58.5% increase in the Fund Income.

446. Total Expenditure increased by 55.2% from GH¢236,093,385 in 2013 to GH¢366,502,371 in 2014. The rise was due to increases in Salary and Allowances and Trading Device Expenses.

Financial position 447. Table 33 is a summary of the Fund Assets and Liabilities as at 31 December 2014. Table 33: Assets and Liabilities as at 31 December 2014 Item 2014 2013 % GH¢ GH¢ Change Non-Current Assets 37,511,620 9,856,278 280.6

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 114 Current Assets 131,092,935 52,843,157 148.1 Current Liabilities 29,072,413 8,818,209 229.7 Net Current Assets 105,020,522 44,024,948 138.5 Net Assets 139,532,142 53,881,226 159 Current Ratio 4.5:1 6:1

448. Non-Current Assets increased by 280.6% from GH¢9,856,278 in 2013 to GH¢37,511,600 in 2014. This was as a result of acquisitions during the year which amounted to GH¢30,692,502.

449. Current Assets of the Fund increased by 148.1%, from GH¢52,843,157 in 2013 to GH¢131,092,935 in 2014. This was due to increases in Accounts Receivable of 249.1% and Cash and Bank of 260.1%.

450. Current Liabilities increased by 229.7% from GH¢8,818,209 in 2013 to GH¢29,072,443 in 2014. The increase was mainly due to increases in Accounts Payable of 231.4% and accruals of 1,205.6%.

451. Current Ratios of 6:1 in 2013 and 4.5:1 in 2014 give an indication of the funds ability to meet its immediate obligations.

VOLTA RIVER AUTHORITY

Introduction 452. This report relates to the audited accounts of the Volta River Authority for the financial year ended 31 December 2014.

Operational results 453. The total power generated from both hydro and thermal

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 115 sources in 2014 was 9,749 GWh as compared to 10,325 GWh in 2013, representing a decrease of 5.6%. Generation of power from hydro sources was 7,657 GWh in 2014 as against 7,871 GWh in 2013 whilst thermal power generation was 2,092 GWh in 2014 (2013: 2454 GWh).

454. This was supplemented by purchasing power from Compagnie Ivoirienne d’ Electicite’ (CIE) of La Cote D’Ivoire and Takoradi International Company Ltd (TICO) of Ghana of 763 GWh (2013: 1,059 GWh). The Authority however, exported 57 GWh (2013: 20GWh) to CIE.

455. Revenue from the sale of electricity increased by GH¢18,655,000 or 0.8% from GH¢2,212,073,000 in 2013 to GH¢2,230,728,000 in 2014. This was due to two main factors, namely: the upward adjustment in the Bulk Generation Tariff (BGT) by PURC and a 47% depreciation of the average GH¢/US$ exchange rate from GH¢1.9944/US $1 in 2013 to GH¢2.9341/$1 in 2014.

456. Other Income increased by 60.6% from GH¢115,025,000 in 2013 to GH¢184,692,000 in 2014. This was mainly due to a 221.3% increase in proceeds from gas sold to Sunon Asogli and 71.9% increase in subsidiaries’ income. Presented in Table 34 is a summarized income statement.

Table 34: Income Statement for 2014 2014 2013 % Income GH¢’000’ GH¢’000’ Change Sale of Electricity 2,230,728 2,212,073 0.8 Cost of Sales (2,052,344) (1,851,057) 10.9 178,384 361,016 (50.6)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 116 Operating Income 184,692 115,025 60.6 Administrative Expenses (437,207) (267,934) 63.2 Operating (Loss)/Profit (74,131) 208,107 (135.6) Financial Income 8,386 6,133 36.7 Financial Expenses (308,674) (78,953) 291.0 Exchange Gain/(Loss) 292,292 14,758 1,880.6 Exchange Fluctuation Gain/(Loss) on Foreign Debts (685,698) (87,911) 680.0 Taxation (32,103) (394) 8,048.0 (Loss)/Profit for the year (799,928) 61,740 (1,395.6)

457. The Authority’s cost of sales for the year under review increased by 10.9% from GH¢1,851,057,000 in 2013 to GH¢2,052,344,000 in 2014. The increase can be attributed to a rise in the cost of fuel for the thermal power generation and purchase of electricity. The operating loss occurred as a result of 63.2% increase in administrative expenses.

458. A 291.0% increase in financial expenses can be attributed to high interest on short term loans from GH¢31,133,000 in 2013 to GH¢240,717,000 in 2014.

459. The Exchange Fluctuation Loss on Foreign Debts went up by 680.0% from GH¢87,911,000 in 2013 to GH¢685,698,000 in 2014. This was as a result of the depreciation of the value of Ghana Cedis against the US dollar and other foreign currencies in which loans were held.

460. The year ended with a deficit of GH¢799,928,000 as against a net profit of GH¢61,740,000 recorded in 2013, showing a high deficit

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 117 of 1,395.6%.

Financial position 461. Shown in Table 35 is the financial position of the Authority.

Table 35: Balance Sheet as at 31 December 2014 2014 2013 % GH¢’000’ GH¢’000’ Change Non-Current Assets 6,645,943 4,465,435 48.8 Current Assets 3,912,589 2,222,398 76.1 Current Liabilities 3,442,473 1,407,473 144.6 Non-current Liabilities 1,739,390 754,014 130.9 Net Assets 5,376,669 4,526,346 18.8 Current Ratio 1.1:1 1.6:1

462. Non-Current Assets rose from GH¢4,465,435,000 in 2013 to GH¢6,645,943,000 in 2014, representing a 48.8% increase. This was due to additions to fixed assets during the year.

463. Current Assets also rose by 76.1% from GH¢2,222,398,000 in 2013 to GH¢3,912,589,000 in 2014. This was due mainly to a 92.2% increase in Trade and Other Receivables and 54.2% increase in Cash and Bank balances.

464. Current Liabilities registered a significant increase of 144.6% from GH¢1,407,473,000 in 2013 to GH¢3,442,473,000 in 2014. These increases resulted in a 237.1% rise in Borrowings from GH¢764,455,000 in 2013 to GH¢2,577,083,000 in 2014 and a 29.6% rise in Trade and Other Payables.

465. Non-Current Liabilities recorded 130.9% increase over the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 118 previous year figure of GH¢754,014,000. Increase in Long Term Borrowings from GH¢616,433,000 in 2013 to GH¢1,555,538,000 in 2014 accounted for the rise.

466. The liquidity position of the Authority as measured by the current ratio of 1.1:1 (2013: 1.6:1) showed an unhealthy position as the Authority might not be able to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Unpaid Bills: Prestea Township – GH¢7,525,695.95 467. We noted that, power bills sent to Prestea Township on monthly basis are not being paid, even though the power is consumed. The Authority subsequently makes full provision for the total amount each year. In the current year, an amount of GH¢7,525,695.95 representing total power sales for the year was provided for. In aggregate, the Authority has made a total provision of GH¢25,963,188.08 in relation to the power consumed by Prestea Township over the years.

468. The above situation occurred because the Prestea Township is not being metered. The Authority absorbs the cost of supplying power to the Prestea Township, thereby increasing its cost of operations.

469. We therefore, advised that, management of the Authority should consider introducing prepaid meters for customers in Prestea Township or add Prestea Township to the customers of Electricity Company of Ghana (ECG) so that, they can provide them with prepaid meters.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 119

470. Management responded that, they are working with ECG and the Ministry of Power to resolve the Prestea Township billing issue which has been long outstanding.

NORTHERN ELECTRICITY DISTRIBUTION COMPANY LIMITED (NEDCO)

Introduction 471. This report covers the audited Financial Statements of the Northern Electricity Distribution Company Limited (NEDCO) for the financial year ended 31 December 2014.

Operational results 472. The Northern Electricity Distribution Company Limited (NEDCO) recorded a loss of GH¢25,653,000 in 2014 as against a loss of GH¢68,296,000 in 2013 representing 62.6% improved performance over the 2013 figure.

Table 36: the detailed analysis of the performance indicators 2014 2013 % GH¢’000 GH¢’000 Change Revenue 325,634 182,494 78.4 Other Operating 5,743 643 793.2 Income Finance Income 1,270 1,847 (31.2) Total Income 332,647 184,984 79.8 Expenditure Cost of Sales 337,548 235,903 43.1 Administrative 20,662 17,377 18.9 Expenses

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 120 Total Expenditure 358,210 253,280 41.4 Loss for the year (25,563) (68,296) (62.6)

473. Total Income rose by 79.8% from GH¢184,984,000 in 2013 to GH¢332,647,000 in 2014. This resulted from 78.4% increase in Revenue and a 793.2% increase in Other Operating Income over the 2013 figure.

474. Total Expenditure also went up by 41.4% from GH¢253,280,000 in 2013 to GH¢358,210,000 in 2014. The increase was due to 43.1% rise in Operating & General expenses.

Financial position 475. The Company’s financial position is shown in Table 37.

Table 37: provides the Company’s financial position as at 2014

2014 2013 % GH¢000 GH¢000 Change Non-Current Assets 755,137 560,823 34.6 Current Assets 355,146 195,837 81.3 Current Liability 38,654 10,918 254.0 Non-current 328,125 254,751 28.8 Liabilities Net Current Asset 316,492 184,919 71.2 Net Asset 743,504 490,991 51.4 Current Ratio 9.2:1 17.9:1

476. Non-Current Assets increased by 34.6% from GH¢560,823,000 in 2013 to GH¢755,137,000 in 2014. This was mainly caused by additions to Fixed Assets and Revaluation adjustment to Other

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 121 Assets.

477. Current Assets went up by 81.3% from GH¢195,837,000 in 2013 to GH¢355,146,000 in 2014. The increase was due to 96.7%, 33.9% and 28.7% rise in Trade and Other receivable, Cash and Bank balances and short-term investment respectively over the 2013 figures.

478. Current Liabilities registered an increase of 254.0% from GH¢10,918,000 in 2013 to GH¢38,654,000 in 2014. This was due to an increase in Trade and other payables. 479. Non-Current Liabilities rose by 28.8% from GH¢254,751,000 in 2013 to GH¢328,125,000. This was made up of VRA Current Account.

480. The Company’s liquidity position of 9.2:1 (2013: 17.9:1) showed its ability to pay its short term debts when they are due.

MANAGEMENT ISSUES

Need for an updated basis for provision for doubtful debt 481. Our view of the receivables for NEDCO revealed that they continue to grow over the years. The receivables balance in 2013 was GH¢168,228,107 while that of 2014 was GH¢277,665,688 showing an increase of 65%. The percentage increase has been consistent over the past three years ranging between 45% and 65%.

482. The policy on provision for doubtful debt to NEDCO based on their previous movements and the receivable balances had been pegged at 2% on the total receivables at the end of the year. Considering the trend with which the balances keep increasing, there

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 122 is the need for management to have a second look at the provision.

483. We recommended that management must in consultation with the Board consider changing the provision based on the consistency and the trend of increases of the receivables over the years.

MINISTRY OF FINANCE AND ECONOMIC PLANNING

SECURITIES AND EXCHANGE COMMISSION

Introduction 484. This report covers the audited accounts of the Securities and Exchange Commission for the year ended 31 December 2014.

Operational results 485. The summary of the operations for the year under review is provided in Table 38

Table 38: Performance Indicators for 2014 2014 2013 % Income GH¢ GH¢ Change Grants – Ghana Government 2,409,249 1,480,096 62.8 Operating Income 3,923,240 2,111,861 85.8 Other Income 132,292 254,076 (47.9) Investment Income 828,601 579,541 43 Total Income 7,293,382 4,425,574 64.8 Expenditure Administration Programme 4,962,400 3,773,162 31.5 Delivery Staff Loans – Market rate 173,527 147,106 18

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 123 Charge Total Expenditure 5,135,927 3,920,268 31 Surplus/(Deficit) 2,157,455 505,306 327 486. Total Income increased by 64.8% from GH¢4,425,574 in 2013 to GH¢7,293,382 in 2014. This was mainly due to 85.8% increase in Operating Income and 62.8% increase in Grants from Ghana Government.

487. Total Expenditure Increased by 31% from GH¢3,920,268 in 2013 to GH¢5,135,927 in 2014. This was mainly due to 31.5% increase in Administration and Programme Delivery Costs.

488. The Commission’s operations for the year ended with a surplus of GH¢2,157,455 compared with a surplus of GH¢505,306 for 2013.

Financial position 489. Table 39 shows the financial position of the Commission as at 31 December 2014.

Table 39: Balance Sheet as at 31 December 2014 2014 2013 % Item GH¢ GH¢ Change Non-Current Assets 1,827,319 1,895,920 (3.6) Current Assets 6,025,933 3,745,815 60.9 Current Liabilities 365,517 311,455 17.4 Net Current Assets 5,660,416 3,434,360 64.8 Net Assets 7,487,735 5,330,280 40.5 Current Ratio 16.5:1 12.0:1 490. Non-Current Assets decreased slightly by 3.6% from GH¢1,895,920 in 2013 to GH¢1,827,319 in 2014. This was due to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 124 reclassification of Assets and depreciation charges.

491. Current Assets increased by 60.9% from GH¢3,745,815 in 2013 to GH¢6,025,933 in 2014. This was due to a 234.1% increase in cash and cash equivalents and a 36.2% increase in short-term investments.

492. Current Liabilities increased by 17.4% from GH¢311,455 in 2013 to GH¢365,517 in 2014. This was mainly due to a 48.8% increase in Accounts payable and accrued liabilities.

493. Net Current Assets registered an increase of 64.8% to GH¢5,660,416 during the year under review as compared to GH¢3,434,360 in the previous year.

494. Net Assets of the Commission grew by 40.5% from GH¢5,330,280 in 2013 to GH¢7,487,735 in 2014.

495. The liquidity position of the Commission as measured by the current ratio of 16.5:1 (2013: 12.0:1) showed a very healthy position as the Commission will be able to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Market Surveillance System 496. Section 9 (b) of the Securities Industry Law, 1993, PNDCL 333 as amended, mandates the Commission to maintain surveillance over activities in the securities industry to ensure orderly, fair and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 125 equitable dealings in securities.

497. We observed that the Market Surveillance system is not functioning as expected and as a result the Commission is unable to monitor and capture all trades at the Ghana Stock Exchange.

498. We recommended that management should take urgent steps to fix the surveillance system. This will enable the Commission to perform its statutory duty effectively and efficiently.

499. Management responded that they have taken note of our recommendation.

COCOA MARKETING COMPANY (GHANA) LIMITED

Introduction 500. This report relates to the audited financial statements of the Cocoa Marketing Company (Ghana) Limited for the year ended 30 September 2014.

Operational results 501. The operational results of the Company for the year under review ended with a surplus of GH¢9,815,483, thus registering 80.9% increase over the 2013 surplus of GH¢5,425,260.

502. The Company’s performance indicators for the period under review are provided in Table 40.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 126 Table 40: Income and Expenditure Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Share of FOB 39,201,611 37,149,243 5.5 Sales Commission 33,329,173 20,442,943 63.0 Other Income 45,796,013 21,520,713 112.8 Total Income 118,326,797 79,112,899 49.6 Expenditure Operating Expenses 51,926,768 31,939,486 62.6 Personnel Cost 43,247,883 32,738,561 32.1 Establishment Cost 6,059,196 3,718,841 62.9 Administrative Cost 1,793,396 1,810,964 (1.0) Professional & 1,428,236 567,816 151.5 Financial Charges Depreciation 773,731 1,030,720 (24.9) Company Tax 3,282,104 1,881,251 74.5 Total Expenditure 108,511,314 73,687,639 47.3 Surplus 9,815,483 5,425,260 80.9 503. Total Income for the year increased by 49.6% from GH¢79,112,899 in 2013 to GH¢118,326,797 in 2014. The 112.8% and 63% increase in Other Incomes and Sales Commission respectively contributed to the rise in Total Income.

504. Total Expenditure increased by 47.3% from GH¢73,687,639 in 2013 to GH¢108,511,314 in 2014. The major items which accounted for the increase were operating expenses of 62.6% and Establishment Costs of 62.9%.

Financial position 505. Table 41 provides the Company’s financial position as at 30 September 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 127 Table 41: Balance Sheet as at 30 September 2014 2014 2013 % GH¢ GH¢ Change Non-current Assets 3,359,430 3,211,055 4.6 Current Assets 549,912,938 718,816,128 (23.5) Current Liabilities 517,122,649 695,692,947 (25.7) Current Ratio 1.1:1 1.0:1

506. Non-Current Assets increased by 4.6% from GH¢3,211,055 in 2013 to GH¢3,359,430 in 2014. This was as a result of additions to Buildings, Weighing Systems, Motor Vehicles, Furniture and Equipment and Computers.

507. Current Assets decreased by 23.5% from GH¢718,816,128 in 2013 to GH¢549,912,938 in 2014 due to reductions in Accounts Receivable, warehouse rent prepayment and cash and short-term deposits.

508. Current Liabilities reduced from GH¢695,692,947 in 2013 to GH¢517,122,649 in 2014 representing a decline of 25.6%. This was mainly due to a reduction in the Accounts payable from GH¢619,765,567 in 2013 to GH¢450,633,699 in 2014.

509. The current ratio of 1.1:1 in 2014 indicates that the Company may not be able to meet its short-term obligations when they fall due.

MANAGEMENT ISSUES

Long outstanding Staff Imprest-GH¢48,485.00 510. Contrary to Section 29.4 (c) of Ghana Cocoa Board policies,

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 128 imprest amounts released to fifteen staff members in 2013 and 2014 had not been retired nor adjusted to a personal advance account in the name of the imprest holders as at the time of reporting. Below are the details:

Amt. Date Name outstanding as at 30/09/14 (GH¢) October 2013 SedinamMammara 1,500.00 February 2014 George Yaw Klu 2,500.00 November 2013 Francis Opare 173.00 February 2014 Francis Opare 1,230.00 December 2013 Susie Supeni 1,000.00 April 2014 Edwin Ofori Maclean 3,600.00 April 2014 KojoNstiful 3,244.00 January 2014 Joyce Poku-Dwomoh 10,000.00 January 2014 Francis Amoah 5,000.00 January 2014 Charles Kukah 10,000.00 January 2014 S.B.E.S. Nkrumah 2,788.00 March 2014 M. Osumana Abu 3,000.00 December 2014 Robert Abonga 950.00 November 2013 Evelyn Kyei 1,000.00 November 2013 Ralph Jones Quartey 2,500.00 48,485.00

511. This could lead to loss of money to the Company. We could therefore not confirm whether the amount had been used in the interest of the Company.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 129 512. Consequently, management was advised to take necessary action to immediately have the imprest retired or recovered by adjusting it to the personal account of the imprest holders.

Staff Loans -Difference between Ledger balances and details balances -GH¢2,215,148.13 513. We noted that differences between the various staff balances and their control accounts of GH¢2,215,148.13 were not reconciled. Please find details below:

Payroll Total Ledger Difference Staff Loan GH¢ Balance GH¢ Scheme GH¢ Household 66,087.34 67,284.90 1,197.56 Durable Car/Motor Loan 2,723,229.01 3,023,689.33 300,460.23 Homeownership 3,343,629.01 5,123,755.79 1,780,135.78 Car Repair 46,655.87 121,416.53 74,760.66 Rent Advance 356,104.83 414,163.76 58,058.93 Training 11,839.80 17,189.02 5,349.22 Insurance 13,128.92 15,368.07 2,239.75 Education 2,885.15 3,088.15 1,000.00 Special Loan 13,823.54 5,668.79 (8,154.75) 2,215,148.13

514. We requested for balances on staff loan to confirm balances listed on the payroll as at 30 September, 2014, and we noted that one staff member Mr. Ernest Boadi who has been listed as owing GH¢29,875 under the Homeownership Loan had actually not taken any loan.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 130 515. This was due to the fact that the ACCPAC Software used by the Company did not have a subsidiary ledger for staff loan that could be compared with the payroll list.

516. If this continues, the default in the recovery of loans from staff would go unnoticed.

517. We recommended that subsidiary ledger for staff advances should be created in the ACCPAC Accounting Software to take records of these transactions.

518. Management responded that they are currently working at finding the causes of the differences so as to correct them at source.

Dormant Accounts 519. In violation to best management practices which requires that any amount due to any Company should be identified and collected, we observed that, the Company’s debit balances on the under listed accounts did not show any movement during these years.

2014 2013 GH¢ GH¢ Ched 17,848 17,848 Seed Production 3,586 3,586

520. This was because no action was taken to recover the amounts.

521. We recommended that the makeup of the balances should be reviewed and efforts made to collect them.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 131 522. Management said, the two units’ attention has been drawn and requested them to settle their indebtedness with the Company.

GHANA COCOA BOARD Introduction 523. This report relates to the audited Financial Statement of the Ghana Cocoa Board for the years ended 30 September 2013 and 2014.

Operational results 524. The Board recorded a profit of GH¢329,311,000 in the year under review as against a loss of GH¢1,093,472,000 in 2013, representing an improved performance of 130.1%.

525. Table 42 shows the income statement for the year ended 30 September 2014. Table 42: Income Statement for the year ended 30 September 2014 2014 2013 % GH¢000 GH¢000 Change Revenue 6,030,610 3,753,856 60.7 Other Operating Income 59,300 38,481 54.1 Finance Income 156,899 104,587 50.0 Total Income 6,246,809 3,896,924 60.3 Expenditure Direct Costs 4,919,081 3,755,576 31.0 Distribution Expenses 19,940 42,225 (52.8) Administrative 575,344 757,611 (24.1) Expenses Finance Cost 399,845 433,103 (7.7) Taxation 3,288 1,881 74.8 Total Expenses 5,917,498 4,990,396 18.6 Net Profit/(Loss) 329,311 (1,093,472) (130.1)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 132

526. Total Income increased by 60.3% from GH¢3,896,924,000 in 2013 to GH¢6,246,809,000 in 2014. This was as a result of increases in all the income components over the previous year’s figures.

527. Total Expenditure also went up by 18.6% or GH¢927,102 from GH¢4,990,396 in the previous year to GH¢5,917,498 in the year under review. The 31.0% increase in Direct cost and 74.8% increase in Tax expenses were largely responsible for the increase in total expenses. Financial position 528. The highlights of the Board’s financial position are presented in Table 43.

Table 43: Financial Position as at 30 September 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 2,593,923 618,674 319.3 Current Assets 2,308,674 2,067,893 11.6 Current Liabilities 1,818,271 1,686,304 7.8 Non-current Liabilities 1,992,147 2,069,169 (3.7) Net current Assets 490,403 381,589 28.5 Net Assets 1,092,179 (1,068,906) (202.2) Current Ratio 1.3:1 1.2:1

529. Non-Current Assets increased by 319.3% from GH¢618,674,000 in 2013 to GH¢2,593,923,000 in 2014. Addition to Fixed Assets and Revaluations of Land and Buildings which constitute 97.9% of the Non-Current Assets mainly accounted for the increase.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 133 530. Current Assets increased from GH¢2,067,893,000 in 2013 to GH¢2,308,674,000 in 2014, representing 11.6% rise. This increase was largely due to increases in Trade and other receivables and Cash and Cash equivalents.

531. Current Liabilities went up marginally by 7.8% from GH¢1,686,304 in 2013 to GH¢1,818,271 in 2014. This was largely as a result of a 73.4% increase in Trade and other payables.

532. The Board recorded a current ratio of 1.3:1 in the year under review as compared with 1.2:1 in 2013. This shows that the Board can barely meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Non-recognition of employee benefit obligations 533. We noted that COCOBOD operates the following employee benefit schemes which provisions were not adequately made in contravention to the requirement of International Accounting Standard (IAS) 19 (Employee Benefits);  Superannuation (final salary) scheme  Post-retirement medical benefit  Long service award.

534. Non-recognition of employee benefits could result in the misstatement of balances for employee benefit obligations.

535. We recommended that Management should engage the services of qualified actuary to undertake actuarial valuations of these benefits. The resultant valuations which should be updated

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 134 annually should then be recorded in the general ledger.

536. At the instance of the audit, management submitted the required employee numbers and other necessary data to the actuaries to compute the obligation for 2014.

Noncompliance with contributory insurance scheme for Cocoa, Coffee and Shear nut farmers

537. We noted that management did not establish a contributory insurance scheme for Cocoa, Coffee and shear nut farmers as well as opening a Depreciation Reserve Account in contravention of Section 26(1) and 28 (1&2)of the Ghana Cocoa Board Act 1984 (PNDC L81) as amended by Ghana Cocoa (Amendment) Law, 1991 (PNDC L 265)

538. Management should ensure that the provisions of the Act are adhered to.

539. According to management, Depreciation Fund has been established and Depreciation Revenue Account also opened in compliance with the provisions of the law. Management is also in the process of requesting for a review of the law as it is not practical to implement the insurance scheme. This was duly verified.

Reconciling deliveries with invoiced quantities 540. Best practice requires that reconciliations are prepared on regular basis so that any reconciling item(s) adjusted on time.

541. Contrary to this, we noted that actual deliveries of cocoa beans were not reconciled and monitored against invoiced quantities

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 135 on a regular basis for financial reporting purposes.

542. Even though the marketing department prepared yearly reconciliations with the local factories, we observed that these reconciliations were performed after the year end and differences identified were not reflected in the general ledger to correct any misstatements from over/under-deliveries.

543. Upon further inquiry we were informed that a log was kept of all over-deliveries and separate contract were written, and invoices subsequently raised to recover associated revenues and debts arising from over-deliveries. Irregular reconciliations and monitoring of invoiced quantities against actual delivery of cocoa beans could result in misstatements of revenues.

544. Going forward, management should design and implement a more frequent system of reconciliation of actual deliveries of cocoa beans against invoiced quantities. Internal monitoring of actual deliveries against invoiced quantities could be performed on weekly basis whilst monthly reconciliations are performed with the local factories. These measures would facilitate early identification of errors and other anomalies within the sales process, and thus lead to timely investigations and resolution of issues identified.

545. Management in response stated that reconciliations are now being done regularly. That notwithstanding, has subsequently settle all disputed case of excess cocoa beans deliveries over the period and has raised supplementary contract to cover them.

Off-site back up of data generated at the take-over centers

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 136 546. Best back-up practice requires that data is backed-up at an off-site location on a regular basis to prevent loss of data in the event of disasters or hardware and software malfunction.

547. We noted during the audit that, off-site back up procedures for data captured at the cocoa take-over centres were inadequate. For instance, the Cocoa Take-Over Receipts (CTOR) database for the year ended 2011 for Kumasi could not be obtained. Upon further inquiry management asserted that the data could not be obtained because the computer used for capturing the data had crashed and there was no back up.

548. The lack of adequate backup for data generated at the takeover centers poses a risk of data loss in the event of disasters or hardware and software malfunction. This risk is considered material as a lot of data is generated at the take centers i.e. take-over and delivery of the cocoa beans which form the core of COCOBOD’s operations.

549. We recommended that management should design and implement a backup policy for the take-over centers and ensure that data is backed up to an off-site location on a regular basis.

550. Management noted our recommendation for implementation in 2014/2015 financial year. Our follow up on the recommendation indicated that data is now stored on the cloud with the ERP software system. Separate external drives are also stored outside premises. Copies are scanned to separate locations.

Monitoring and retention of source documentation for local deliveries

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 137 551. We noted that COCOBOD uses a manual system for recording cocoa deliveries to the local factories. These deliveries were recorded on waybills and ‘cocoa delivery notes’ (CDNs). The source documents i.e. Waybills and CDNs were not prepared on a timely basis. In addition some of the source documents were not appropriately retained for future reference.

552. Inadequate monitoring and retention of booklets of waybills and CDNs issued could hinder the monitoring of issues and subsequent usage of these documents.

553. We recommended that the following procedures should be considered for adoption to reduce the identified risk.  When booklets are received from suppliers, the number of booklets and their unique serial numbers should be recorded by CMC accounts office before they are handed over to staff of warehouse and Ports Operations (WPO)  Upon receipt, WPO (Head office) should record the number of booklets and their corresponding serial numbers.  WPO should also keep a record of the total number of booklets and their serial numbers issued to each take-over centre.  Each take-over centre should also keep a record of booklets received.  At the point of issue to the sheds the area coordinators should record the number of booklets and their serial numbers.  These booklets should be used in sequential order and completed booklets should be retained and accounted for in an orderly manner in a secured off-site location.  Regular checks should be performed to ensure compliance with this process. The checks could take the form of planned monthly checks and unannounced spot checks.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 138

554. Management stated that they have taken note of the recommendation. These deficiencies would be addressed by the system upgrade and automation is being considered by management.

SOCIAL SECURITY AND NATIONAL INSURANCE TRUST (SSNIT) Introduction 555. This report covers the audited accounts of the Social Security and National Insurance Trust (SSNIT) for the period January 2013 to 31 December 2014.

Operational results 556. Total Income of the Trust rose by 25.0% from GH¢1,675,215,000 in 2013 to GH¢2,094,659,000 in 2014. Contributions received, remained the major components of total income, accounting for 85.2% in 2014 as against 69.2% in 2013 due to more members (both government and private sectors) joining the scheme hence a rise in contributions.

557. Presented in Table 44 are the performance indicators for the period under review.

Table 44: Income statement for 2014 2014 2013 % Income GH¢ GH¢ Change Contribution Received 1,784,433 1,159,713 53.9 Net Investment Income 162,586 460,421 (64.7) Other Income 147,640 55,081 168.0 Total Income 2,094,659 1,675,215 25.0

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 139 Expenditure Operational Cost 90,545 67,257 34.6 Benefits 941,271 692,314 36.0 General and Administrative 142,505 111,988 27.3 Expenses Transfer to NHIS 194,199 214,766 (9.6) Total Expenditure 1,368,520 1,086,325 26.0 Net Surplus 726,139 588,890 23.3

558. Total expenditure made up of pensions benefits and general administrative expenses among others increased by 26.0% from GH¢1,086,325,000 in 2013 to GH¢1,368,520,000 in 2014. The increment was mainly due to a rise in payments in respect of old age, invalidity, death and survivors. The operational cost went up by 34.6% and was as a result of increase in personnel costs from GH¢52,588,000 in 2013 to GH¢77,272,000 in 2014.

559. Operations for the year under review closed with an increase in the surplus from GH¢588,890,000 in 2013 to GH¢726,139,000 in 2014, representing a 23.3% increase.

Financial position 560. The Trust’s financial position as at 31 December 2014 is presented in Table 45.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 140 Table 45: Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-current Assets 6,637,162 4,637,250 43.1 Current Assets 961,056 1,120,435 (14.2) Current Liabilities 170,900 192,901 (11.5) Net Assets 7,427,318 5,564,784 33.5 Current Ratio 5.6:1 5.8:1

561. Non-Current Assets increased by 43.1% from GH¢4,637,250,000 in 2013 to GH¢6,637,162,000 in 2014. Additions to fixed assets from GH¢3,934,563,000 in 2013 to GH¢5,256,760,000 in 2014 or 33.6%, mainly accounted for the increase.

562. Current Assets, however, fell to GH¢961,056,000 in 2014 from GH¢1,120,435,000 in 2013, a drop of 14.2%. A drop in housing stock and cash and bank balances accounted for the decrease.

563. Current Liabilities also fell by 11.5% from GH¢192,901,000 in 2013 to GH¢170,900,000 in 2014. This was due to a drop in accounts payable.

564. The Trust’s liquidity ratio of 5.6:1 (2013:5.8:1) was favourable and indicated the Trust ability to meet its short term liabilities.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 141 MANAGEMENT ISSUES

Fixed deposits in GIB not backed by Security assignment £620,000 (GH¢2,788,992.00) 565. We noted that fixed deposits with Ghana International Bank (GIB) totaling £620,000 (GH¢2,788,992.00) were not supported by a Security assignment, contrary to SSNIT’s own practice where fixed deposits are backed by securities.

566. This anomaly occurred as a result of management’s decision to convert dividend paid by the bank to fixed deposit in order to earn interest.

567. In the event of a default, SSNIT stands to lose its investment since there was no security to rely on.

568. We therefore recommended that SSNIT should request the GIB to back the fixed deposits with securities, so that in times of default, SSNIT can fall on the security to redeem the amount.

569. Management said, they have written to the Bank to seek clarification on assignment of security for Fixed Deposits for their next line of action and in conformity with their domestic fixed deposit placements.

Non-performing loans – GH¢477,319,200.67 570. We noted that loans granted to eight private, public institutions and organisations were not paid back. We also noted that collaterals provided by these loans defaulters were not valued so management cannot assess whether the loans are recoverable from the sale of the collaterals. Below is the list of defaulters as at 31 December 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 142 Loan balance Name of Entity as at 31/12/2014 GH¢ FOS Aluminium Limited 1,366,563,79 Bridal Trust Limited 1,114,500.23 Ghana Leasing Company Limited 5,866,362.68 Ghana Road Fund Loan 261,698,706.24 Share Holders Advance (Bridal Trust) 193,129.40 Shareholder Advance (Intercity STC 20,292,258.13 Coaches) Intercity STC Coaches Limited 10,712,512.20 Golden Beach Hotels 176,075,168.00 Total 477,319,200.67

571. Management’s inability to value and perfect the collaterals provided by these organizations, may cause SSNIT to lose funds which may eventually affect its ability to pay pensions in the future and in a timely manner.

572. We recommended that, management of SSNIT should take the necessary steps to recover the loans and strengthen its recovery efforts. They should also value and perfect collaterals covering these loans, so that recovering can be made from the sale of the collaterals.

573. Management responded that, they have obtained judgment in court to recover the amount involved with FOS Aluminum Limited and Bridal Trust and therefore ordered for judicial sale of the mortgaged properties (land and building).

574. Management have also obtained judgment against Ghana Leasing Company Limited and ordered for the sale of the leased

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 143 assets which were acquired with loan. With, Golden Beach Hotels, the loan amount has been converted to shares.

575. For Ghana Road Fund, a final demand notice had been sent to the Ministry of Finance and Ghana Road Fund Board to pay the outstanding amount.

PUBLIC PROCUREMENT AUTHORITY

Introduction 576. This report relates to the audited financial statement of Public Procurement Authority for the year ended 31 December 2014.

Operational results 577. Table 46 shows the summary of the Income Statement of the Authority for the year ended 31 December 2014.

2014 2013 % GH¢ GH¢ Change Government Subvention 5,848,617 4,257,299 37.4 Grants and Other Income 195,126 72,971 167.5 Total Income 6,043,743 4,330,270 39.5 Personnel Emoluments 2,676,789 2,404,228 11.3 Service Activities 1,680,910 834,710 101.4 General and Administrative 1,047,024 879,310 19.1 Expenses Financial and Professional Charges 15,493 11,898 30.2 Total Expenditure 5,420,216 4,130,146 31.2 Surplus 623,527 200,124 211.5

578. Total Income rose by 39.5% from GH¢4,330,270 in 2013 to GH¢6,043,743 due to an increase in Government Subvention from GH¢4,257,299 in 2013 to GH¢5,848,617 in 2014 and Grants and other

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 144 income from GH¢72,971 in 2013 to GH¢1,951,126 in 2014.

579. Total Expenditure increased from GH¢4,130,146 in 2013 to GH¢5,420,216 in 2014, an increase of 31.2%. This was largely due to an increase in Service Activities from GH¢834,710 in 2013 to GH¢1,680,910 in 2014.

580. The Authority’s operations for the year under review recorded a surplus of GH¢623,527, an increase of 211.5% over the previous year’s figure of GH¢200,124. This amount had been transferred to Accumulated Fund Account.

Financial position 581. Shown in Table 47 is the financial position as at 31 December 2014.

Table 47: Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 674,790 530,466 27.2 Current Assets 829,048 2,272,211 (63.5) Current Liabilities 100,750 274,133 63.2 Net Assets 1,403,088 2,528,544 (44.5) Current Ratio 8.2:1 8.3:1

582. Non-Current Assets increased by 27.2% from GH¢530,466 in 2013 to GH¢674,790 in 2014. The increase in Non-Current Assets is due to additions during the year.

583. Current Assets decreased by 63.5% from GH¢2,272,211 in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 145 2013 to GH¢829,048 in 2014. This was mainly due to GH¢1,486,694 reduction in Cash and Bank balance.

584. Current Liabilities also decreased by 63.2% or GH¢173,383 from GH¢274,133 in the previous year to GH¢100,750 in 2014 mainly due to decrease in accruals. 585. The Current ratio of 8.2:1 for the year as against that of 8.3:1 in 2013 shows that the Authority could meet its short term obligations when they fall due. MANAGEMENT ISSUES

Failure to remit Withholding Tax 586. In contravention of Section 89(1) of the Internal Revenue Act 2000 (Act 592), we observed that an amount of GH¢8,638 withheld as tax from suppliers were not remitted to the Commissioner of Domestic Tax Division of Ghana Revenue Authority.

587. Failure to remit taxes withheld to the Commissioner promptly could attract penalty of not less than 20% of the amount due to Ghana Revenue Authority. Also the contractors and the suppliers may have difficulties in claiming their tax credits.

588. We recommended that all the withholding taxes outstanding must be paid and the receipt given to the respective beneficiaries as soon as possible.

589. Management responded that the delay in payment of withholding taxes was as a result of financial constraints due to irregular releases from the Ministry of Finance.

Other payables 590. Issued cheque not presented to the bank within six months

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 146 automatically becomes stale and the banks will not honour it after the expiration of the six months period.

591. We realised that an amount of GH¢77,112 outstanding as other accruals as at 31 December 2014 were due to cheques not presented to the bank by service providers. Below is the age analysis of the unpresented cheques.

Amount Item Date GH¢ Unpresented 2014 36,642 Cheques “ 2013 29,920 “ 2011 and 10,550 2012 Total 77,112

592. We further observed that some of these cheques were still in possession of the finance department of the Authority and had not been released to the beneficiaries.

593. The implication is that the financial statement may not be fairly presented and reconciliation of bank accounts may be difficult and also distort cash planning.

594. We recommended that the holders of the unpresented cheques must be contacted for possible replacements.

595. Management responded that steps have been taken to replace those cheques still in their custody.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 147 Non-current assets register 596. Best accounting practice requires that the assets register and non-current assets schedule in the Financial Statement should agree.

597. Non-current Assets register made available to us was still not comprehensive and lacked detailed information of the various non- current assets, such as date of purchase, their initial costs, location and their respective accumulated depreciable amounts.

598. We further observed that the non-current assets of the Authority did not have any identification or embossment numbers on them to serve as a source of reference for easy identification and inspection. It was therefore difficult to verify assets.

599. We recommended that all relevant information required on each non-current assets owned by the Authority should be included in the register and agreed with the non-current assets schedule in the financial statements.

600. Management responded that they will expedite action to complete and implement the usage of the assets register.

KUMASI ZONAL OFFICE

Non-embossment of Non-Current Assets 601. It was noted that some of the non-current assets at the Kumasi Zonal office had not been embossed with any identification numbers as at the time of our visit even though attention of management was drawn to this issue in our previous reports.

602. This implies that if the assets are not properly embossed their

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 148 exposure to theft may be high and also verification and inspection of the assets may be difficult.

603. We recommended that, all assets of the Authority should have identification numbers embossed on them to serve as a source of reference, and this should be quoted in the assets register.

604. Management responded that steps are being taken to resolve such challenges.

Review and supervision of entities 605. The zonal office is responsible for the review, supervision and ensuring the implementation of procurement procedures by all the public entities of the Northern Zone per the Public Procurement Authority demarcation. However, we noticed that the Zonal office did not undertake any formal review of the entities in their zone during the year ended 31 December 2014.

606. We again observed that the zonal offices were unable to visit most entities outside the Ashanti region and Southern parts of Brong Ahafo to observe the opening of tenders due to lack of funds.

607. The implication is that the Authority may not be able to fully carry out its mandate in ensuring that public entities adhere to the procurement modalities and procedures. Again verification and confirmation of implementation of recommendations in annual assessments report may be very difficult if not impossible.

608. We recommended that measures should be taken to ensure that funds are made available for the supervision of entities as

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 149 requested by the Authority’s mandate.

609. Management accepted the recommendation for strict compliance.

NATIONAL LOTTERY AUTHORITY

Introduction 610. This report covers the audited accounts of National Lottery Authority for the years ended 31 December 2013 and 2014.

Operational results 611. The summary of National Lottery Authority’s operations for the period under review is provided in Table 48.

Table 48: Performance Indicators for 2013 and 2014 2014 2013 % Income GH¢ GH¢ Change Lotto Intake 315,918,377 255,238,053 23.8 Miscellaneous Income 2,285,013 1,909,216 19.7 Total Income 318,203,390 257,147,269 23.7 Expenditure Direct Operating 244,602,574 193,334,243 26.5 Expenses Personnel Cost 27,554,088 19,526,077 41.1 Administrative and 21,102,129 33,461,789 (36.9) General Expenses Finance Cost 623,052 - Total Expenditure 293,258,791 246,945,161 18.8 Net Profit 24,944,599 10,202,108 144.5

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 150

612. Total Income for the period increased by 23.7% from GH¢257,147,269 in 2013 to GH¢318,203,390 in 2014. This was due to a 23.8% rise in lotto intake as well as a 19.7% rise in Miscellaneous Income.

613. Total Expenditure went up by 18.8% from GH¢246,945,161 in 2013 to GH¢293,258,791 in 2014. The increase was mainly due to a 26.5% rise in direct operating expenses and a 41.1% increase in Personnel cost. 614. The operational results for the period closed with a surplus of GH¢24,944,599 as compared with a surplus of GH¢10,202,108 recorded in 2013, thereby showing a 144.5% increase.

Financial position 615. Table 49 shows the financial position of National Lottery Authority as at 31 December 2013 and 2014.

|Table 49: Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-current 21,820,299 23,529,058 (7.3) Assets Current Assets 11,768,357 14,273,136 (17.5) Current Liabilities 24,714,574 42,022,710 (41.2) Net current (53.4) Assets (12,946,217) (27,749,574) Current Ratio 0.5:1 0.31:1

616. Non-Current Assets decreased by 7.3% from GH¢23,529,058 in 2013 to GH¢21,820,299 in 2014. This was due to depreciation

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 151 charged for the year.

617. Current Assets decreased from GH¢14,273,136 in 2013 to GH¢11,768,357 in 2014 representing 17.5% decrease. It included inventory balance of GH¢3,399,771, Prepayment of GH¢1,001,137 and cash and Bank balance of GH¢7,130,314. 618. Current Liabilities also decreased from GH¢42,022,710 in 2013 to GH¢24,714,574 in 2014 representing 41.2% reduction. This was due to rise in payables.

619. The current ratio of 0.5:1 (2013: 0.3:1) showed that, the Authority is insolvent and cannot meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Inaccurate Tax Rates and Non Payment of Taxes 620. In contravention to Internal Revenue Act 2000 (Act 592), we noted that, Income taxes deducted from salaries of staff in the Directorate section had not been paid since January 2014. The total amount of these deductions was GH¢16,339.

621. We also noted that withholding taxes totaling GH¢112,330 deducted on the Staff and Board of Directors as well as tax on severance pay deducted from payments made in March and May had not been paid to Ghana Revenue Authority.

622. Additionally, the employee income tax computation was wrongly calculated since the Authority did not take into consideration the amended income tax rate which took effect from May 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 152 623. The Authority not paying taxes withheld promptly could lead to the imposition of penalty in addition to the amount withheld.

624. We recommended that the current income tax rate must be used to compute the income tax deductions and all deductions due the tax authorities should be paid.

625. Management stated that, the PAYE deductions have been paid to GRA and would comply with the other recommendation.

Submission of Internal Audit Reports 626. Contrary to the National Lotto Act 2006 (Act 722) section 48 (a, b) copies of the internal audit reports presented to the Director General and the Board chairperson were not submitted to the Auditor-General and Minister responsible for finance.

627. We recommended that quarterly internal audit reports should be presented to the relevant supervisory authorities as required.

628. Management responded that the Audit Committee has met to review the 2014 reports and is presenting their papers to the Board following which copies will be sent to the Internal Audit Agency and the Auditor-General.

Lack of policy on retrieval of amount from POST debtors 629. During the audit of debtors, we observed that there was no clear policy on the retrieval of debt arising out of charging receivers for stolen or lost Point of Sales Terminals (POST). This might lead to over statement of POST debtors in subsequent period without the Authorities being able to retrieve these moneys.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 153 630. We recommended that management takes immediate steps to put in place a policy on the retrieval of these debts and also educate the receiver about the policy.

631. Management in response stated that, Finance is in the process of putting in place a policy on the retrieval of these debts from POST debtors. This shall be done with concerns and concurrence of other departments, notably Operations, Sales and Marketing and IT.

GHANA EDUCATION TRUST FUND

Introduction 632. This report relates to the audited Financial Statements of the Ghana Education Trust Fund (GETFund) for the year ended 31 December 2014.

Operational results 633. The details of the operations of the fund are provided in Table 50.

Table 50: Income statement for 2014 2014 2013 % GH¢ GH¢ Change Allocation for 5,603,000 5,106,000 9.7 Operations Other Income 101,719 23,100 340.3 Total Income 5,704,719 5,129,100 11.2 Total Expenditure 4,610,445 4,054,419 13.7 Surplus /Deficit 1,094,274 1,074,681 1.8

634. Total Income increased by 11.2% from GH¢5,129,000 in 2013

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 154 to GH¢5,704,719 in 2014. This was largely due to an increase in Allocation for Operations and Other Income. Other Income increased as a result of profit on disposal.

635. Total Expenditure also increased by 13.7% from GH¢4,054,419 in 2013 to GH¢4,610,445 in 2014. This was largely due to an increase in staff salaries and Allowances by 23.6% and Maintenance & Running of Vehicles by 63.1%.

636. Excess income over expenditure recorded a marginal increase of 1.8% from GH¢1,074,681 in 2013 to GH¢1,094,274 in 2014.

Financial position 637. The summarized statement of Financial Position of the Fund as at 31 December 2014 is shown in Table 51.

Table 51: Statement of financial position- 2014. 2014 2013 % GH¢ GH¢ Chan ge Non-current Assets 14,647,549 1,360,500 976.6 Current Asset 482,528,728 543,685,093 (11.2) Current Liabilities 699,479,466 690,457,099 1.3 Net current Asset (216,950,738) (149,772,006) 44.9 Net Asset (202,303,189) (145,411,506) 39.1 Current Ratio 0.7:1 0.8:1

638. Non-Current Asset comprise of Property, Plant and Equipment and work-in-progress. This increased by 976.6% due to additions to work-in-progress from GH¢380,589 in 2013 to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 155 GH¢13,866,974 in 2014. This increase was mainly due to GH¢13,340,529 incurred on GETFund office complex in 2014.

639. Current assets reduced from GH¢543,685,093 in 2013 to GH¢482,528,728 in 2014 as result of reduction in amount due from MOFEP.

640. The liquidity position of the fund as shown by current ratio of 0.7:1 in 2014(0.8:1 in 2013) portrayed a worsen liquidity position of the Fund. It means that the fund would not be able to meet its short-term financial obligations as and when they fall due.

MANAGEMENT ISSUES

Delayed Payment of Withholding tax GH¢27,059,150 641. Our audit revealed that withholding tax of GH¢27,059,150 for the period July 2013 to December 2014 had not been paid. Meanwhile the contractors need the withholding tax receipts as evidence to reduce their tax liabilities.

642. We recommended that management take the necessary steps to settle the liability. Management responded that the recommendations are noted and steps are being taken to settle the liability by the end of December 2015.

2.5% VAT Proceeds to the Fund 643. Our audit revealed that the 2.5% VAT proceeds meant for the Fund was not forthcoming as expected. As at 31 December 2014 only GH¢382,801,463 had been received out of the expected amount of GH¢730,815,498 leaving a balance of GH¢348,014,035 which represents 47.6% arrears. This may not enhance the sustainability of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 156 the fund, going forward.

644. We recommended that measures are put in place to ensure that the proceeds are issued to the Fund as and when due.

645. Management did not respond to our observation.

STUDENTS’ LOAN TRUST FUND

Introduction 646. This report relates to the audited accounts of the Students’ Loan Trust Fund for the year ended 31 December 2014.

Operational results 647. The Trust fund recorded a surplus of GH¢1,749,210 for 2014 as against GH¢127,421 in 2013. The performance indicators are shown in Table 52.

Table 52: Income statement for the year ended 31 December 2014 2014 2013 % Income GH¢ GH¢ Change Administrative Grant 1,875,000 550,000 240.9 Interest on Student Loan 1,708,622 1,267,107 34.8 Investment Income 1,919,518 1,044,192 83.8 Other Income 59,283 18,679 217.4 Total 5,562,423 2,879,978 93.1 Expenditure Staff Cost 1,483,935 1,197,402 24.0 Travelling and Transport 414,212 213,026 94.4 Financial and Professional 36,745 22,680 62.0 Charges Administrative & Other 1,585,848 1,081,440 46.6

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 157 Expenses Provision for Bad Debt 292,474 238,009 22.8 Total Expenditure 3,813,213 2,752,557 38.5 Income Surplus 1,749,210 127,421 1,272.8 648. Total income increased from GH¢2,879,978 in 2013 to GH¢5,562,423 in 2014, representing n increase of 93.1%. The increase was mainly due to 241% increase in Administrative Grant.

649. The expenditure for the year under review also increased by 38% from GH¢2,752,557 in 2013 to GH¢3,813,213 in 2014. This was due to increase in travelling and transport expenses by 94%.

Financial position 650. Details of the Student Trust Fund financial position for the year ended 31 December 2014 is shown in Table 53.

Table 53: Student Trust Fund financial position 2014 2013 % GH¢ GH¢ Change Non-Current Assets 103,336,502 93,713,196 10.3 Current Assets 58,355,745 16,640,893 250.7 Current Liabilities 110,820 137,473 ( 19.4) Net Current Assets 58,244,925 16,503,420 252.9 Non-Current Liabilities 48,928,242 36,677,430 33.4 Net Assets 112,653,185 73,539,186 53.2 Current Ratio 526.6:1 121.5.1

651. Non-current Assets increased by 10% from GH¢93,713,196 in 2013 to GH¢103,336,501 in 2014 as a result of increase in unmatured student loan outstanding from GH¢93,450,525 in 2013 to GH¢102,772,463 in 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 158 652. Current Assets increased by 251% which is accounted for by an increase in investment from GH¢6,540,628 in 2013 to GH¢30,532,177 in 2014, representing an increase of 367%.

653. Current Liabilities decreased from GH¢137,473 in 2013 to GH¢110,820 in 2014, representing 19.4%. The decrease was accounted for by 87.7% drop of SSNIT disbursement charges, 34.24% drop in consultancy services etc.

MANAGEMENT ISSUES Loan Recovery 654. We observed that, out of the total amount of GH¢22.27 million due for recovery, only GH¢8.13 million was recovered during the year representing 36% of the total amount.

655. Although the amount recovered increased from GH¢6.03 million to GH¢8.13 million in the year under review, in comparing amount due with amount recovered, we noted a short fall of GH¢14.4 million. However, in 2013 the shortfall was GH¢4.76 million.

656. Table below illustrates the percentage of recovery and the shortfall in the recovery generated from fund’s application program (SLMS).

Amt. due Amt. Shortfall % of % of Year GH¢ Recovered GH¢ Amount Shortf GH¢ Recovered all 2014 22,277,234 8,312,339 14,144,895 36 64 2013 10,794,465 6,034,283 4,760,182 55 45 2012 5,519,096 1,938,869 3,535,227 35 65 2011 1,051,956 497,175 554,777 47 53

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 159 657. As management is fully aware, the risk of default increases significantly when the amount become overdue. Additionally, failure to recover the amount due deprives the fund of resources to be used in expansion of the scheme.

658. We recommended that management should intensify efforts for locating all borrowers (including those in the informal sector) in order to recover not only overdue amounts but amount due currently.

659. Management has noted the above comment on the potential risk of possible high default by beneficiaries. Management quest to ensure high recoveries of monies due has a direct bearing on our promotional and advertising budget that increased significantly over the 2013 figure. Management gave assurance that it will continue to engage appropriate measured to ensure improvement in repayments.

Loan Disbursements 660. The core activity of the fund is disbursement of loans to tertiary level students in accredited institutions in Ghana. We noted that total loans disbursed to students represents 48% of the total grant received during the year under review.

661. The Table below indicates the relationship between loans disbursed and grants received. Net Grant Loan % of Loan Year Received Disbursed Disbursed GH¢ GH¢ 2014 37,364,789 17,824,634 48 2013 2,825,249 7,924,895 281 2012 12,262,276 8,755,623 71

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 160 662. During the year under review, students in teacher Training colleges began accessing loans from the fund. We noted that only 2,731 students out of about 15,000 eligible students received loans during the year under review.

663. We recommended that management should intensify efforts to increase the loan disbursed to students in order to realize the fund’s objectives of supporting needy students.

664. Management responded that, their effort to improve disbursement figure is evident by the over 22.5% increase in amount disbursed over the previous years. Management noted our comments for compliance. NATIONAL INSURANCE COMMISSION

Introduction 665. This report relates to the audited accounts of the National Insurance Commission for the year ended 31 December 2014.

Operational results 666. The Commission made a surplus of GH¢1,640,895 during the 2014 financial year as against GH¢220,282 for the 2013 financial year. This represented a 644.9% increase over the previous year’s figure. The Summary of the Commission’s performance for the period under review is shown in Table 54.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 161 Table 54: Income statement for 2014 2014 2013 % Income GH¢ GH¢ Change Income 11,593,863 8,558,673 35.5 Other Income 34,890 317,291 (89) Total Income 11,628,753 8,875,964 31 Expenditure 9,987,658 8,655,682 15.4 Surplus 1,640,895 220,282 644.9

667. Total Income for the year stood at GH¢11,628,753 as against GH¢8,875,964 during the 2013 financial year. This represented a 31% increase over the 2013 year. The rise in income was mainly due to 392% increase in Licensing and Renewal income.

668. Total Expenditure rose from GH¢8,655,682 in 2013 to GH¢9,987,858 in 2014, representing 15.4% rise. The increase in total expenditure was mainly due to 87.5%, increase in cost of stickers and Adhesive.

Financial position 669. Table 55 shows a summary of the Commission’s financial position as at the end of the year 2014.

Table 55: Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 1,557,777 1,263,861 23.2 Current Assets 6,300,422 5,046,158 24.8 Current Liabilities 878,016 945,296 (7.11) Net Current Assets 5,422,406 4,100,862 32.2 Net Assets 6,980,183 5,364,723 30.1 Current Ratio 7.2:1 5.3:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 162 670. Non-Current Assets for 2014 was GH¢1,557,777 as compared to GH¢1,263,861 for the 2013 financial year, representing an increase of 23.2% over the 2013 figure. The increase was due to acquisitions of Property, Plant and Equipment.

671. Current Assets recorded a 24.8% increase from GH¢5,046,158 in 2013 to GH¢6,300,422 in 2014. The increase was mainly due to increase in Short-term Investment and Cash and Cash Equipment 672. Current Liabilities dropped by 7.11% from GH¢945,296 in 2013 to GH¢878,016 in 2014. The decrease was attributed to a decline in Accounts payable and Accruals.

673. There was an improvement in the Commission’s current ratio of 7.2:1 (2013:5.3:1), an indication of the Commission’s ability to meet its short-term obligations when they fall due.

NATIONAL INSURANCE COMMISSION – FIRE MAINTENANCE FUND Introduction 674. This report relates to the audited accounts of the National Insurance Commission, Fire Maintenance Fund for the year ended 31 December 2014.

Operational results 675. The Fund recorded a surplus of GH¢315,807 during the year under review, an increase of 16.19% over that of the previous year’s figure of GH¢271,794.

676. The summary of the fund’s performance is shown in Table 56.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 163 Table 56: Income statement for the year ended 31 December 2014 2014 2013 % Income GH¢ GH¢ Change Contribution from 256,455 287,333 (10.7) Insurance Companies Investment Income 89,001 17,167 418.4 Total Income 345,456 304,500 13.5 Expenditure 29,649 32,706 (9.3) Surplus 315,807 271,794 16.2

677. Total Income for the year under review increased by 13.5% from GH¢304,500 in 2013 to GH¢345,456 in 2014. This was due to a significant increase of 418.4% in investment Income.

678. Total Expenditure fell from GH¢32,706 in 2013 to GH¢29,649 in 2014, representing a fall of 9.3%. This was due to a 100% fall in support to Ghana National Fire Services, from GH¢10,000 in 2013 to a nil figure in 2014.

Financial position

Table 57 is the Fund’s financial position as at 31 December, 2014. 2014 2013 % GH¢ GH¢ Change Current Assets 641,745 331,267 93.7 Current Liabilities 6,825 12,154 (43.8) Net Current Assets 634,920 319,113 98.9 Current Ratio 94:1 27.2:1

679. Current Assets increased significantly by 93.7% from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 164 GH¢331,267 in 2013 to GH¢641,745 in 2014. This was due mainly to increases in Short-term investment by 115.6% and Account Receivable by 113.3%.

680. Current Liabilities however declined by 43.8% from GH¢12,154 in 2013 to GH¢6,825 in 2014, due to a decrease in Account payable.

681. The Fund’s liquidity position of 94.1 in 2014 (2013: 27.2:1) showed its ability to pay its short-term debts when they are due.

NATIONAL INSURANCE COMMISSION - CLIENT RESCUE FUND

Introduction 682. This report relates to the audited accounts of the National Insurance Commission, Client Rescue Fund for the year ended 31 December 2014.

Operational results 683. The Fund recorded a surplus of GH¢1,087,834 in 2014 compared with GH¢572,661 in 2013, an increase of 90%. The performance indicators are shown in Table 58.

Table 58: Income statement for the year ended 31 December 2014 2014 2013 % Income GH¢ GH¢ Change Contribution from Insurance Companies 904,179 655,072 38.0 Investment Income 272,164 28,502 854.9 Total Income 1,176,343 683,574 72.1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 165 Expenditure Enforcement Action 74,076 92,948 (20.3) Other Expenses 14,433 17,965 (19.7) Total Expenditure 88,509 110,913 (20.2) Surplus 1,087,834 572,661 90.0

684. Total Income for the year under review increased by 72.1% from GH¢683,574 in 2013 to GH¢1,176,343 in 2014. This was due to a significant increase of 854.9% in investment income and 38.0% in contributions from Insurance Companies.

685. Total Expenditure dropped from GH¢110,913 in 2013 to GH¢88,509 in 2014, representing a fall of 20.2%. This was due to a fall of 20.3% in expenses relating to enforcement actions.

Financial position 686. Table 59 shows the financial position of the fund.

Table 59: Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Current Assets 2,272,123 1,186,958 91.4 Current Liabilities 9,065 11,734 (22.7) Net Current Asset 2,263,058 1,175,224 92.6 Current Ratio 250.6:1 101.1:1

687. Current Assets increased by 91.4% from GH¢1,186,958 in 2013 to GH¢2,272,123 in 2014. This was due to increase in Short Term Investment from GH¢549,997 in 2013 to GH¢1,760,136 in 2014. 688. Current Liabilities dropped from GH¢11,734 in 2013 to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 166 GH¢9,065 in 2014, representing a fall of 22.7%. This was as a result of a reduction in Accounts payable. 689. The Fund’s liquidity position stood at 250.6:1 in 2014 (2013: 101.1:1) showed its ability to pay its short term debts when they fall due.

NATIONAL INSURANCE COMMISSION – MOTOR COMPENSATION FUND Introduction 690. This report relates to the audited accounts of the National Insurance Commission, Motor Compensation fund for the year ended 31 December 2014.

Operational results 691. The Fund made a surplus of GH¢496,024 during the 2014 financial year as against GH¢426,300 in 2013. This represented an increase of 16.4% over the previous year’s figure. The performance indicators are shown Table 60.

Table 60: Income statement for the year ended 31 December 2014 2014 2013 % GH¢ GH¢ Change Income 1,257,278 874,576 43.8 Expenditure 761,254 448,276 69.8 Surplus 496,024 426,300 16.4

692. Total Income went up by 43.8% as a result of increases in contribution from Insurance Companies from GH¢443,655 in 2013 to GH¢658,949 in 2014, representing a 48.5% increase. 693. Expenditure for the year increased by 69.8% from GH¢448,276 in 2013 to GH¢761,254 in 2014. The major items which

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 167 accounted for the increase were depreciation of GH¢30,912 (2013: GH¢4,732), a rise of 553.3% and Compensation awards of GH¢551,900 (2013: GH¢278,952).

Financial position 694. A summary of the Fund’s financial position as at 31 December 2014 is shown Table 61.

Table 61: Financial position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 171,297 66,670 156.9 Current Assets 2,706,551 2,322,313 16.5 Current Liabilities 6,574 13,733 (52.1) Net Current Assets 2,699,977 2,308,580 17.0 Current Ratio 411.7:1 169.1:1

695. The Fund’s Non-Current Assets shot up by 156.9% from GH¢66,670 in 2013 to GH¢171,297 in 2014. The increase was as result of additions to Property, Plant and Equipment.

696. Current Assets of the fund recorded an increase of 16.5% from GH¢2,322,313 in 2013 to GH¢2,706,551 in 2014. This was mainly due to increase in Accounts Receivable and Short term investments by 130.2% and 20.0% respectively. 697. Current Liabilities recorded a 52.1% fall from GH¢13,733 in 2013 to GH¢6,574 in 2014. This resulted from a reduction in Account payable.

698. The current ratio of 411.7:1 (2013: 169.1:1) far exceeded the benchmark of 2:1. This is an indication of the Fund’s ability to meet

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 168 its short term liabilities as and when they fall due.

VENTURE CAPITAL TRUST FUND Introduction 699. This report relates to the audited accounts of the Venture Capital Trust Fund for the years ended 31 December 2013 and 2014.

Operational results 700. The fund closed 2014 with a surplus of GH¢7,206,390 as compared with a deficit of GH¢2,429,555 in 2013. This represented a 396.6% increase. Details of the performance indicators are shown in Table 62.

Table 62: Income and Expenditure Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Operating Income 5,593,426 4,571,479 22.4 Grant from Rockefeller-Fund - 177,998 - Grant from Ministry of 10,000,000 - - Finance Total Income 15,593,426 4,749,477 228.3 Expenditure Staff Cost 2,137,268 1,491,320 43.3 Trustees Emoluments 234,172 380,113 (38.4) Administrative Expenses 3,700,200 1,718,561 115.3 Financial Cost 21,835 5,208 319.3 Rockefeller Foundation - 177,998 - Expenses Total Expenditure 6,093,475 3,773,200 61.5 Net Operating Income 9,499,951 976,277 873.1 Less Impairment loss on 8,383,269 10,735,401 (21.9)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 169 loans 1,116,682 (9,759,124) (111.4) Net Changes in Fair Value of Financial Assets 6,089,708 7,329,569 16.9 Surplus/(Deficit) 7,206,390 (2,429,555) (396.6)

701. Total Income increased by 228.3% from GH¢4,749,477 in 2013 to GH¢15,593,426 in 2014. The increase was due to a 22.4% rise in the operating income and a grant of GH¢10,000,000 that was received from the Ministry of Finance in 2014.

702. Total Expenditure increased by 61.5%, from GH¢3,773,200 in 2013 to GH¢6,093,475 in 2014. The increase was mainly due to 115.3% rise in Administrative cost and 319.3% rise in financial cost.

Financial position 703. Table 63 shows a summary of the Funds Financial Position as at 31 December 2014.

Table 63: Assets and Liabilities as at 31 December, 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 28,106,791 19,567,515 43.6 Current Assets 16,747,888 18,214,303 (8.1) Current Liabilities 357,432 490,961 (27.2) Net Current Assets 16,390,456 17,723,342 (7.5) Net Assets 44,497,247 37,290,857 19.3 Current Ratio 46.9:1 37.1:1

704. Non-current Assets closed in 2014 with GH¢28,106,791 as

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 170 compared with GH¢19,567,515 in 2013, representing an increase of 43.6%. This was as a result of additions to fixed Assets as well as unrealized gains in the Financial Assets.

705. Current Assets reduced by 8.1% from GH¢18,214,303 in 2013 to GH¢16,747,888 in 2014. This was due to a 28.5% decrease in loans and a 3.4% decrease in Cash and Cash Equivalents.

706. Current Liabilities reduced to GH¢357,432 in 2014 as against GH¢490,961 in 2013, representing a 27.2% decrease. Part payment of Payables and Bank Overdraft accounted for the reduction.

707. Current Ratio for both years shows the Fund’s ability to meet immediate financial obligations. The ratio improved in the year under review closing with 46.9:1 as against 37.1:1 in 2013.

MANAGEMENT ISSUES

Wrongful payment of US$3,649,134 for the property Situated at North Ridge 708. We noted that the fund purchased a property at North Ridge valued at US$3,000,000 from SIC-FSL. Though a total amount of US$2,810,000.00 was paid to SIC-FSL, records at Lands Commission showed that, the property had been registered in the name of the Trustees of the Bethany Church and not SIC-FSL. There was no evidence to prove that Bethany Church authorized SIC FSL to receive funds on their behalf.

709. We further noted that an amount of US$839,134.00 was paid on different dates as indicated below to Nana Kwame Adusei and Dr. Prince Blankson representatives of Bethany Church

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 171 Date Payee US$ 22/11/2011 Nana Kwame Adusei 190,000.00 14/06/2012 Nana Kwame Adusei 35,000.00 27/03/2013 Dr. Prince Blankson 614,134.00 TOTAL 839,134.00

710. However, we could not obtain any power of attorney from trustees of the Bethany Church (owners of the property) authorizing the representatives to collect monies on their behalf. 711. We attributed the lapses to the failure of management to exercise due diligence to search at the Lands Commission to establish the true ownership of the property; resulting in wrongful payments of US$3,649,134.00 to SIC-FSL and the two alleged representatives of Bethany Church.

712. We recommended to management to ensure that the Fund recover US$3,649,134 from the illegal recipients of the money. Additionally, management whose inaction resulted in the illegitimate payment of the money should be sanctioned.

713. Management responded that the issue has been sent to the court.

Gratuity to Board of Trustees without approval 714. Section 13 of the Venture Capital Trust Fund Act, 2004 (Act 680) requires that payments of allowances to chairperson and other members shall be determined by the Minister of Finance.

715. We observed that an amount of GH¢114,360 was paid as gratuity to six board members without the Sector Minister’s approval.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 172 716. The implication is that the payment had not been approved as stated in the Trusts Fund Act, hence rendering the payment illegitimate.

717. We therefore recommended that, for the amount to stand charged to the funds account an approval should be sought from the Minister or the amounts should be recovered to chest.

718. Management gave assurance that a letter has been sent to the Minister and are still waiting for the approval from the Minster.

Accountable Imprest not retired – GH¢282,389 719. Contrary to Regulation 288(1) of the FAR and in spite of our previous audit recommendation, we noted that a total amount of GH¢282,389 granted to six staff including board trustee members have not been accounted for even though the programs for which the imprest were given had been completed. Details are shown below: Name Amount (GH¢) Daniel Duku 207,162 Susan Okyere 11,287 Richard Lassey 35,676 Daniel Bebaako 9,208 Percy Ampomah 3,412 Cliford Mpare 15,644 Total 282,389

720. As at 31 December 2014 the balances had been standing for more than two years.

721. The irregularity noted was because management failed to put in place measures that would enforce the implementation of Regulation 288(1).

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 173 722. At the instance of the audit, Mr. Daniel Duku accounted for his outstanding imprest of GH¢207,162 on the 19 August 2015. We urged management to ensure the rest account for their balances without delay and the prescribed sanctions to be applied to defaulters. Meanwhile management should ensure timely retirement of imprests.

723. Management has written to both staff and trustees concerned to account for their imprest within 48 hours or the said amount would be deducted from their salaries. Management also mentioned that 75% of the total imprest has been recovered.

Non-approval of loans – GH¢1,479,402.00 724. Contrary to Section 15(5&6) of the Venture Capital Trust Fund Act, 2004, Act 680 which states that the board shall within 28 days after the receipt of an application, grant the application if specified conditions are fulfilled, we observed that out of 154 files examined, 53 representing 34% do not have documents to prove that the loans were approved.

725. This was as a result of improper keeping of records on borrowers. The effect is that it puts the fund at risk of loans being approved without meeting the set criteria. Also officials may take advantage of this lapse and push loans that have not been through.

726. We advised management to ensure that all files are updated by the investment department. 727. Management has promised to ensure that all files are updated.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 174 Loans granted without signed agreements - GH¢1,305,967 728. Best practice requires that upon approval of loan application, an agreement that spells out terms and conditions, including interest rates, repayment amount, starts and end periods, is signed between the Trust Fund and the borrower.

729. It was noted in cause of the audit that loan agreements on some files were not signed and dated by the recipient. This was as a result of lapses in the process and procedures bothering on ineffective monitoring and follow ups.

730. In the event of a dispute resulting from defaults or a breach, management may face challenges in bringing legal action against clients or borrowers. Thus the agreement is rendered ineffective.

731. We recommended to management to ensure all loan agreements are properly signed and dated. Additionally, beneficiaries who have not signed their loan agreements should be called upon to sign.

732. Management has assured that all agreements would be looked at and regularised as updating of records is ongoing.

Granting loans without sufficient information On borrower’s location - GH¢914,654.00 733. Acceptable practices demands that particulars of borrowers such as location and registered offices where borrowers operate, must be on file.

734. Fifty-one percent (51%) of files examined, that is 79 out of 154

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 175 files did not have information on the location of borrowers and the registered offices.

735. This situation will make it difficult for the fund monitor to evaluate the performance of those companies.

736. We recommended to management to ensure that a record of the location of each borrower is on file.

737. Management stated that updating of files is in progress.

BANK OF GHANA Introduction 738. This report relates to the audited Financial Statements of the Bank of Ghana (BOG) for the period 1 January 2013 to 31 December 2014.

Operational results 739. The Bank recorded a profit of GH¢963,911,000 in 2014 as compared to GH¢341,322,000 in 2013, representing an improved performance of 182.4% over the prior year’s figure. The Banks performance indicators for the period are provided in Table 64.

Table 64: Statement of Profit or Loss for the year 2014 2014 2013 % Income GH¢000 GH¢000 Changes Interest Income 1,803,145 1,322,119 36.4 Fee & Commission 104,085 80,469 29.4 Income Other Operating 88,511 63,574 39.2 Income

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 176 Exchange Differences 449,517 (43,759) (1,127.3) Dividend Income - 12,280 - Total 2,445,258 1,434,683 70.4 Expenditure Interest Expenses 901,818 666,517 35.3 Administration 369,626 320,456 15.3 Premises & Equipment 56,108 34,155 64.3 Currency and Issue 68,985 59,260 16.4 Impairment 63,739 - - Recognized Taxation 21,071 12,973 62.4 Total 1,481,347 1,093,361 35.5 Profit for the year 963,911 341,322 182.4

740. Total Income went up by 70.4% from GH¢1,434,683,000 in 2013 to GH¢2,445,258,000 in 2014. This was attributed to increases in all the income components for the year with exchange differences being the main contributor.

741. Total expenditure increased by 35.5% from GH¢1,093,361,000 in 2013 to GH¢1,481,347 in 2014. This was as a result of increases in all expenditure items over the previous year’s figures.

Financial position 742. A summary of statement of financial position of the Bank as at 31 December 2014 is shown in Table 65.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 177 Table 65: Statement of Financial Position as at 31 December 2014 2014 2013 % GH¢000 GH¢000 Changes Total Assets 40,725,867 27,615,255 47.5 Liabilities 36,794,373 24,698,288 49.0 Net Assets 3,931,494 2,916,967 34.8 (Equity)

743. Total Assets rose by 47.5% from GH¢27,615,255,000 in the previous year to GH¢40,725,867,000 in 2014. The rise was as a result of a significant increase in cash and amounts due from other Banks and Loans and Advances.

744. Total Liabilities in 2014 also increased by 49.0% to GH¢36,794,373,000 as against GH¢24,698,288,000 recorded in 2013. Deposits, other liabilities, Liabilities to IMF, and Currency in circulation accounted for the increase.

745. Net assets for the year increased from GH¢2,916,967,000 in the previous year to GH¢3,931,494,000 in 2014, representing a rise of 34.8%. The rise in net assets was due to an increase in total assets.

GHANA INVESTMENT PROMOTION CENTRE

Introduction 746. This report relates to the audited accounts of the Ghana Investment Promotion Centre for the year ended 31 December, 2012.

Operational Results 747. The year 2012 closed with an excess Income of GH¢305,032

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 178 representing a decrease of 64.1% from the previous year’s results of GH¢848,377. Details of the performance indicators are shown in Table 66.

Table 66: Income Statement for 2012. 2012 2011 % Income GH¢ GH¢ Change Ghana Government 1,310,069 630,298 107.9 Subventions Internally Generated Funds 6,803,571 6,209,267 9.6 Private Sector Dev. Strategy - 96,230 - Grant Other Income 393,501 372,544 5.6 Total Income 8,507,141 7,308,339 16.4 Expenditure General and Administrative 8,186,760 6,445,555 27.0 Expenses Financial Charges 15,349 14,407 65.0 Total Expenditure 8,202,109 6,459,962 27.0 Excess Income 305,032 848,377 64.1

748. Total Income increased by 16.4% from GH¢7,308,339 in 2011 to GH¢8,507,141 in 2012 Ghana Government Subventions mainly accounted for the increase by 107.9%, from GH¢630,298 in 2011 to GH¢1,310,069 in 2012

749. Total Expenditure increased by 27% from GH¢6,459,962 in 2011 to GH¢8,202,109 in 2012. Salaries and Other Related costs which is a component of the General and Administrative Expenses increased by 35%, from GH¢2,809,890 in 2011 to GH¢3,802,339 in 2012. Consultancy/Professional Fees also increased by 134.3%, from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 179 GH¢81,897 to GH¢191,876 in 2011 and 2012 respectively.

Financial Position 750. Table 67 is a summary of the entity’s Financial Position as at the end of 2012. Table 67: Statement of Financial Position as at 31 December 2012 2011 % GH¢ GH¢ Change Non-current Assets 2,630,611 2,714,289 (3.1) Current Assets 1,342,117 1,021,290 31.4 Current Liabilities 166,906 234,789 (28.9) Net Current Assets 1,175,211 786,501 49.4 Net Assets 3,805,822 3,500,790 8.7 Current Ratio 8.0:1 4.3:1

751. Non-current Assets decreased by 3.1% from GH¢2,714,289 in 2011 to GH¢2,630,611 in 2012. Investments reduced by 16.7% from GH¢600,000 in 2011 to GH¢500,000 in 2012.

752. Current Assets increased by 31.4% from GH¢1,021,290 in 2011 to GH¢1,342,117 in 2012. This was due to a 143.6% increment in Account Receivable and a 30% increase in Cash and Bank Balances.

753. Current Liabilities decreased by 28.9% from GH¢234,789 in 2011 to GH¢166,906 in 2012. The reduction was due to a 100% payment of an amount owed Stallion Motors Ghana Ltd. and a 28% reduction in other payable which moved from GH¢194,392 in 2011 to GH¢139,906 in 2012.

754. Net current Assets improved further in 2012 by 49.4% from GH¢786,501 in 2011 to GH¢1,175,211 in 2012. This is an indication of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 180 a sound position in the organisation’s ability in meeting short-term obligations and this is evident from the results of the Current Ratio in 2012 of 8.0:1 and 4.3:1 in 2011.

MANAGEMENT ISSUES

Cash Payment in Lieu of Annual Leave Days 755. We noted that contrary to Act 651 of Ghana Labour Law of 2003 and in spite of our 2010 and 2011 reports, the Centre had converted leave days of some staffs into a total cash of GH¢46,283.56 and without the deduction of taxes. Table 67 shows the details. Amount Name Year GH¢ George Aboagye (CEO) 2011 27,864.98 Edward B.A. Lartey 2011 7,105.24 Vivian Agyepong 2011 4,687.68 Doris Anyan 2011 2,373.03 KaziaDarko 2011 1,790.88 Tetteh Ani 2011 1,080.25 Charles Kwarteng 2011 1,381.50 46,283.56

756. This is a complete disregard of the Labour Law and favouratism of some selected staff.

757. We recommended that management strictly adheres to the Labour laws and to also enforce compliance of leave register.

758. Management however, assured the Audit Team of putting mechanisms in place to ensure that staff take annual leave within the year, any outstanding days shall be written off if not supported by a

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 181 written permission from the Head of Department. Also the beneficiaries are to pay appropriate taxes on amounts collected.

Foreign Advertising Contracts 759. We observed that contrary to the Public Procurement Act, 2003 (Act 663) all the advertisement contracts signed with foreign companies were not through competitive bidding and were approved single-handed by the Chief Executive Officer. Details of selected contracts are presented in Table 68 below.

Amount Name Amount In Foreign In Currency GH¢ Globus Vision Limited Euro 25,000 56,528.74 Prisma Group Limited Euro 15,000 Part- payment 17,159.85 Quality Communication US$ 33,000 Production Ltd. 59,400.00

760. Outstanding balance owed Prisma Group Limited was not provided for in the accounts. This has understated both the total Advertisement Expenditure and Liabilities.

761. We also observed that the payments to the foreign advertising companies were not subjected to withholding tax resulting in loss of revenue.

762. We therefore recommended that such contracts should be carried out only in accordance with the law. The Chief Executive

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 182 Officer has been advised to desist from awarding contracts which are above the stipulated threshold. Also, we recommended that henceforth, taxes should be withheld on payments made to these companies. 763. Management accepted all the recommendations and agreed to comply with all the relevant statutes.

Inadequate Documentation - Sponsorship in kind 764. It came up during the audit that the GIPC had barter transactions with some organizations for sponsorship during the Ghana Club 100 programme. These transactions were without any formally agreed and signed arrangements of contract. Normal primary documentations such as invoices were also not available. Lastly, the organization couldn’t monitor adverts in both newspapers and live coverage that was carried by Radio Gold.

765. The above has the risk of income generated from sponsorship being misstated.

766. We recommended to management that, there should be proper documentation on all operations and transactions of the Centre.

767. Management accepted our recommendation for compliance.

Printing and Publication – Royal Mediatec Investment 768. We noted during the audit that 89% of the total printing and publications at GIPC is handled by Royal Mediatec Investment. There was no indication of the award being competitively bided.

769. The irregularity was due to the fact that the organization

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 183 didn’t adhere to the Public Procurement Act.

770. We recommended to management to ensure that the process conform to the Public Procurement Act. Thus all purchases above the threshold should be referred to the appropriate Tender Committee.

Office Rent 771. GIPC paid an amount of GH¢ 14,400 for a four year rent for the Tamale Regional Office but failed to occupy the premises. The agreement expired without the centre making use of the premises, implying that the Centre’s fund has gone wasted.

772. We recommended that management should follow up and establish why payment was made without using the premises and whoever caused the loss should be surcharged with the cost involved. 773. Management has accepted for strict compliance.

MINISTRY OF EDUCATION

UNIVERSITY OF HEALTH AND ALLIED SCIENCES

Introduction 774. This report relates to the audited accounts of University of Health and Allied Sciences for the period 1 April 2012 to 31 December 2013. However, the comparative figures cannot be provided, since this is a maiden audit.

Operational results 775. Operations for the year closed with a deficit of GH¢2,213,560. Presented in Table 69 are the performance indicators for the 2013

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 184 financial year.

Table 69: Income Statement for 2013 2013 Income GH¢ Tuition Fees 732,193 Government & Other Public Inst. 2,933,425 Subvention Research Grant 959,788 Other Income 927,720 Total Income 5,553,126 Expenses Administrative and General Expenses 2,946,532 Salaries and Benefits 3,647,157 Depreciation 993,421 Repairs and Maintenance 179,576 Total Expenditure 7,766,686 (Deficit)/Surplus (2,213,560)

776. Total Income registered GH¢5,553,126 in 2013 which is made up of Tuition Fees of GH¢732,193, Government and other Public Institution Subvention of GH¢2,933,425, Research Grant of GH¢959,788 and Other Income of GH¢927,720. Government and other Public Institute Subvention represent 52.8% of the total income.

777. Total Expenditure registered GH¢7,766,686 in 2013 which is made up of Administrative and General Expenses of GH¢2,946,532 and Salaries and Benefits of GH¢3,647,157. Administrative expenses and Salaries/Benefit represents 37.9% and 47% respectively of the total expenditure.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 185 Financial position 778. The University’s financial position, as at 31 December 2013 is shown in Table 70.

Table 70: Financial Position as at 31 December 2013 2013 GH¢ Non-Current Assets 10,838,939 Current Assets 2,169,796 Current Liabilities 1,391,696 Non-Current 5,103,165 Liabilities Current Ratio 1.6:1

779. Non-Current Asset which stood at GH¢10,838,939 in 2013 was made up of property, plant and equipment.

780. Current Assets of GH¢2,169,796 in 2013 comprise of cash and bank balances and receivable from exchange transactions.

781. Current Liabilities of GH¢1,391,696 in 2013 consist of accounts payable, deferred tuition fees, non-monetary grants and overdraft.

782. Non-Current Liabilities which was GH¢5,103,165 in 2013 was made up of non-monetary grants of GH¢4,103,165 and other grants of GH¢1,000,000.

783. The current ratio which shows the liquidity position of the University was 1.6:1 in 2013. This indicates that the University cannot meet its short term financial obligation when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 186 MANAGEMENT ISSUES

Failure to Account for Property and Equipment in the books 784. Contrary to best practice which requires assets belonging to an entity to be accounted for in its books, we observed that some hostel facilities and housing units being occupied and used by the University have not been captured in the University’s books as part of property, plant and equipment.

785. This occurred because the University is yet to obtain title documents for these assets. Total assets owned by the University cannot be ascertained.

786. We recommended that the University should ensure that all title deeds on these assets are obtained and transfers are made into the University’s books.

787. Management responded that most of the assets do not belong to the University. They were borrowed from the Ministry of Health which could not be captured into the university’s books and depreciated accordingly.

No compensation for land owners 788. It is expected that for ownership of a land to be passed on to an Institution, compensation should be paid to the land owners before title deed can be acquired.

789. We however, observed that the University has not recognized the land on which the University’s permanent campus is located in their books. This is because; the land owners have not been compensated to enable the appropriate transfer of title to the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 187 University.

790. There may be future dispute over ownership of the land which the University is occupying without legal title.

791. We recommended that management should liaise with Government to ensure compensations are made to the land owners to facilitate early regularization of ownership.

792. Management responded that the University and government entered into memorandum of understanding that government would compensate the original land owners and the University will occupy the land after government have published the executive instrument. The Lands Commission is in the process of identifying the real owners of the land to compensate. On November 19, 2015 the President in Commissioning the permanent site project publically assured the land owners that they would be compensated appropriately when the exercise is completed.

Non-compliance with Grant Agreement 793. Contrary to the grant agreement, we observed that the University did not comply with certain terms and conditions specified in the grant agreements. For instance, an amount of GH¢1,000,000 which was received from Ghana Commercial Bank Limited for the construction of an administrative block at the Hohoe Campus of the University, was used to purchase fixed deposits. The fixed deposits were subsequently redeemed and the funds used for administrative work. Due to the decrease of subvention from the government in 2013 the University used the funds provided for the expansion of its infrastructure for administrative purposes.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 188 794. Donors of grants may not be willing to provide additional funds if grants are misapplied. 795. We recommended that management should endeavour to utilise grants according to terms and conditions specified in the grant agreement.

796. Management explained that the University was allowed to invest the GH¢1,000,000 with Ghana Commercial Bank until the University was ready to start the project. The University redeemed the fund in 2013 to support the preparation of the permanent site since the counter-part was not ready and the University was not able to raise funds internally for the purpose.

UNIVERSITY OF EDUCATION, WINNEBA

Introduction 797. This report relates to the audited accounts of the University of Education, Winneba for the year ended 31 December 2013. Operational results 798. The operations of the University for the year under review ended with a surplus of GH¢12,083,748 as compared to a surplus of GH¢12,607,199 in 2012 representing a decrease of 4.2% in performance. Details of the performance indicators are shown in Table 71.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 189 Table 71: Statement of comprehensive income for the year ended 31 December 2013 2013 2012 % Income GH¢ GH¢ Chan ge Government Subvention & 65,487,388 50,367,709 30.0 Grants Donor Funds 12,240 57,317 (78.6) Fees and Other Incomes 60,678,249 43,236,569 40.3 Total Income 126,177,877 93,661,596 34.7 Expenditure Cost of Employee 69,411,254 54,006,705 28.5 Compensation Cost of Goods & Service - 16,458,631 10,265,664 60.3 Non Teaching Cost of Goods & Services – 18,604,370 11,545,678 61.1 Teaching Cost of Investment Written 9,619,874 5,236,348 83.7 off Total Expenditure 114,094,129 81,054,396 40.8 Surplus of the year 12,083,748 12,607,199 (4.2) 799. Total Income increased by 34.7% from GH¢93,661,596 in 2012 to GH¢126,177,877 in 2013. The rise in Income was due to 30.0% and 40.3% increase in Government Subvention and Grants and Fees and Other Incomes respectively.

800. Total Expenditure rose by 40.8% from GH¢81,054,396 in 2012 to GH¢114,094,129 in 2013. Increases in Goods and Services – Non Teaching and Goods and Services-Teaching and Cost of Investment Written off accounted for the rise.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 190 Financial position 801. The summarized statement of financial Position as at 31 December 2013 is shown in Table 72.

Table 72: Financial Position as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets (PPE) 53,880,902 38,754,924 39.0 Long Term Investments 49,001 49,001 - Current Assets 30,780,563 33,720,130 (8.7) Current Liabilities 1,051,178 1,065,705 (1.4) Net Current Assets 29,729,384 32,654,425 (9) Net Assets 83,659,288 71,458,350 17.1 Current Ratio 29.3:1 31.6:1

802. The Non-Current Assets rose from GH¢38,754,924 in 2012 to GH¢53,880,902 in 2013, an increase of 39% due to the acquisition of additional assets.

803. Current Assets decreased by 8.7% from GH¢33,720,130 in 2012 to GH¢30,780,563 in 2013. The decrease was due to 66.1% and 65.5% reduction in Inventory and Bank and Cash Balances respectively.

804. Current Liabilities decreased by 1.4% from GH¢ 1,065,705 in 2012 to GH¢1,051,178 in 2013.This was due to reduction in accounts payable.

805. The Current Ratio in 2013 was 29.3:1 as against 31.6:1 in 2012,

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 191 indicating the ability of the University to meet its short-term obligation when they fall due.

MANAGEMENT ISSUES

Transfer of Twenty Thousand Cedis (GH¢20,000.00) from GCB Harper Road to ECOBANK, Tanoso Branch Not Credited to New Kumasi Account as at 27 October, 2014 806. Our audit disclosed that Kumasi Campus of the University made a transfer of GH¢20,000.00 from Ghana Commercial Bank (GCB) Harper Road to Ecobank, Tanoso Branch on July 30, 2012. GCB had debited the UEW account with the amount but Ecobank had not credited UEW Kumasi Account as at 27 October, 2014. The first follow-up letter was written to GCB about Sixteen months after the transfer was made (10th of November, 2013). There was another follow-up letter on the 15September 2014. GCB had not responded to any of the letters. There had not been any letter to Ecobank, the recipient bank yet.

807. We recommended that the University should follow up on this transfer and ensure that the defaulting bank pays interest on the amount. The University should also safeguard its cash resources at the Bank.

808. Management has accepted the recommendation and promised to ensure that the defaulting bank pays the appropriate interest on the amount for the entire period of the delay.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 192 GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA)

Introduction 809. This report relates to the audited financial statements of the Ghana Institute of Management and Public Administration (GIMPA) for the year ended 31 December 2013 and 2014.

Operational results 810. Total Income increased by 34.4% or GH¢12,529,406 from the previous year’s figure of GH¢36,370,840 to GH¢48,900,246 in 2014. This was largely due to 22.4% increase in fees collected from the various schools, which rose from GH¢28,251,541 in 2013 to GH¢34,574,699 in 2014.

Table 73 below is the summarized income statement for 2014 2014 2013 % GH¢ GH¢ Change Total Income 48,900,246 36,370,840 34.4 Expenditure Personnel Emoluments 18,243,199 14,471,825 26.1 Operating expenses 8,493,868 8,108,629 4.8 Administration & Gen 11,541,220 9,175,788 25.8 Expenses Travel & Transport 2,145,254 1,332,787 61.0 Repairs and 1,195,967 750,645 58.5 maintenance Total Expenditure 41,619,508 33,839,674 23.0 Surplus 7,280,738 2,531,166 187.6

811. Total Expenditure went up from GH¢33,839,674 in 2013 to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 193 GH¢41,619,508 in 2014 representing a 23.0% rise. This was mainly due 61.0% increase in Travel and Transport and 58.5% increase in Repairs and Maintenance.

812. An operational surplus of GH¢7,280,738 was registered during the year, compared with GH¢2,531,166 recorded in the preceding year. This represented 187.6% or GH¢4,749,572 increase over the previous year’s figure. Financial position 813. Presented in Table 74 is the statement of financial position of the GIMPA for the year under review.

Table 74: Balance sheet as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 24,717,380 21,395,323 15.5 Current Assets 14,159,773 10,869,152 30.3 Current Liabilities 6,884,290 7,561,160 (9.0) Net Current Assets 7,275,483 3,307,992 119.9 Long-term - 712,848 - Liabilities Net Assets 31,992,863 23,990,467 33.4 Current Ratio 2.1:1 1.4:1

814. Non-Current Assets rose by 15.5% from GH¢21,395,323 in 2013 to GH¢24,717,380 in 2014. The increase was due to a rise in Capital Work-In-Progress as well as the acquisitions of fixed assets.

815. Current Assets increased by 30.3% from GH¢10,869,152 in 2013 to GH¢14,159,773 in 2014. The increase was mainly due to 151.3% rise in Cash and Cash Equivalents and 44.3% increase in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 194 Short-Term Investments over the prior year’s figure.

816. Current Liabilities however, decreased by 9.0% from GH¢7,561,160 in 2013 to GH¢6,884,290 in 2014, mainly due to decline in Creditors and Accruals from GH¢6,877,540 in 2013 to GH¢6,356,406 in 2014.

817. Current Ratio rose to 2.1:1 over the previous year’s ratio of 1.4:1. The increment however, shows the ability of GIMPA to meet its current and short-term liabilities as and when they fall due.

MANAGEMENT ISSUES

Penalty on SSNIT Contributions 818. We observed that an amount of GH¢86,984.47 was paid as penalty for delayed payment of the 17.5% SSNIT Contribution for the period March 2005 to September 2014.

819. This implied that the Institute did not ensure that liabilities were paid within the stipulated period. The amount, however, could have been used to finance other essential needs of the Institute.

820. We recommended that efforts should be made to settle statutory payments on time to avoid future payment of penalties.

821. Management in its response stated that the anomaly occurred as a result of the recruitment of staff beyond payroll processing dates that resulted in off-payroll salary payments. Additionally, the migration from a manual system to an electronic verification at SSNIT also led to delays in giving clearance for payment. Management also reiterated that the anomaly has now been resolved

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 195 and hence not likely to recur in the future. GIMPA Fixed Assets not covered by the Title Deed 822. We noted that the Institute has not acquired Legal Title to its immoveable properties, notably the land on which its premises are located at Green Hill. The Institute might not be able to prove ownership should the need arise.

823. Management is urged to vigorously pursue the relevant documents of title and perfection of same to forestall any possible litigation in the future. The recommendation is well noted for compliance.

Lack of identification Marks on Fixed Assets 824. Our physical verification of assets revealed that assets acquired in the year under review did not have identification marks embossed to indicate that they belong to the Institution. The inability of management to emboss these assets can lead to loss of some of the assets without detection.

825. We recommended that management should ensure that all assets of the Institution are embossed with unique marks to facilitate identification and control.

826. According to management, it has acquired an enterprise resource planning system to automate the assets embossment system to integrate unto the fixed asset registry.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 196 NATIONAL ACCREDITATION BOARD

Introduction 827. This report relates to the audited accounts of the National Accreditation Board for the period 1 January 2014 to 31 December 2014.

Operational results 828. The Board’s Income Surplus increased by 197.64% from GH¢481,612.71 in 2013 to GH¢1,433,451.00 in 2014.

829. A summary of the Board’s operational performance is provided in Table 75.

Income 2014 2013 % GH¢ GH¢ Change GOG-Subvention 3,116,044.50 1,762,387.73 76.8 Internally Generated Funds 4,669,469.50 3,405,172.07 37.1 Other Funds and Int. On 728,223.31 346,220.77 Investment 110.3 Total 8,513,737.31 5,513,780.57 54.4 Expenditure Personal Emoluments 2,756,288.61 1,724,897.48 59.8 Administration 1,367,223.38 1,150,899.83 18.8 Service Activity 2,956,774.32 2,156,370.55 37.1 Total 7,080,286.31 5,032,167.86 40.7 Excess(Deficit) Income over Expenditure 1,433,451.00 481,612.71 197.6 830. Total Income of the Board increased by a margin of 54.4% from GH¢5,513,780.57 in 2013 to GH¢8,513,737.31 in 2014. The increase in Government subvention (i.e. Employees Compensation)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 197 from GH¢1,762,387.73 to GH¢3,116,044.50 (GH¢1,353,656.77) representing an increase of 76.8% over the previous year and a 37.1% increase in Internally Generated Fund from GH¢3,405,172.07 in 2013 to GH¢4,669,469.50 in 2014 accounted largely for the increase in total revenue.

831. Total Expenditure also saw an increase of 40.7% from GH¢5,032,167.86 in 2013 to GH¢7,080,286.31 in 2013. This was mainly due to 59.8% upward movement in personal emoluments. Service activity increased by a margin of 37.1% from GH¢2,156,370.55 in 2013 to GH¢2,956,774.32 in 2014.

Financial Position as at 31 December 2014 Assets 2014 2013 % GH¢ GH¢ Inc./Dec. Non-Current Assets 1,274,814.37 1,365,251.61 (6.6) Current Assets Investments 3,535,840.69 1,586,448.88 122.9 Advances(Staff Debtors) 57,190.92 84,378.02 (32.2) NABSAF Loan 300,000.00 300,000.00 0 Cash and Bank Balances 559,371.91 966,569.46 (42.1) Total 4,452,403.52 2,937,396.36 51.6 Less Sundry Creditors 0 7,131.08 -100.00 Total Net 4,452,403.52 4,295,516.89 Assets(Equity) 3.7 Liquidity ∞ 411.91:1

832. Non-Current Assets reduced by margin of 6.6% from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 198 GH¢1,365,251.61 in 2013 to GH¢1,274,814.37 in 2014. This was mainly due to the policy of the Board to defer the depreciation of its assets in the year of acquisition. Additions in the previous year was GH¢987,194.86, resulting in the movement the depreciation and the consequent decrease in the Non-Current Assets.

833. Current assets increased by 51.6% from GH¢2,937,396.36 in 2013 to GH¢4,452,403.52 in 2014. This was mainly due to an increase in Short term Investment from GH¢1,586,448.88 to GH¢3,535,840.69 representing a 122.9% movement over the previous year. Net asset also saw an increase by a marginal percentage of 3.7% during the period.

834. Liquidity of the Board remains strong as it did not register any liability over the period.

MANAGEMENT ISSUES

Failure to Submit I.G.F. Expenditure Returns to the Ministry Of Finance-GH¢4,604,469.50 835. The Retention of Funds Act 2007, Act 735, Section 5, on Utilization of internally generated funds says (5a)” Ministries, Departments and Agencies which have approval to retain and utilize internally generated funds can only incur expenditure funded by internally generated funds for a particular month if the records of collection for the previous month, bank lodgements and expenditure returns for the previous month have been submitted to the Ministry of Finance.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 199 836. Our review of the Board’s Collection and Utilisation of its internally generated funds amounting to GH¢4,604,469.50 for the period 2014 revealed that management has not submitted its records of collection, bank lodgements and expenditure returns to the Ministry of Finance.

837. Management failed to adhere to the dictates of Act 735 Section 5a. Failure to adhere to the dictates of the act could lead to unapproved expenditure.

838. We advised management to ensure that all collections, lodgements and expenditure returns are sent to the Minister of Finance in adherence to the stipulations to the Retention Act and for approval for usage of the IGF.

839. Management submitted to the team, budgetary estimates and added in its response that the NCTE established the format for the preparation of the Expenditure returns. We are however of the opinion that what the board prepared is not what is required by the Act. The Act requires that IGF Expenditure Returns should include the following information: the type of Revenue, Monthly target, Monthly Collection and the Cumulative amount retained. We reiterated that management should adhere to the dictates of the Act.

Failure to obtain Ministerial Approval for Board and Committee Allowances -GH¢726,886.52 840. Section 7 of the National Accreditation Board Act 2007(Act 744) requires that board members and members of a committee of the board shall be paid allowances approved by the Minister (Education) in consultation with the Minister responsible for Finance.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 200

841. Further to the above requirement, a circular by the Minister of Finance referenced B/CEU/2014/05 on “Allowances for Boards and Councils in Public Services” required that Boards and Councils apply to the Minister (Finance) for rates that the Minister had catalogued for various institutions.

842. The Chairman of the Accreditation Board, Professor D.A. Akyeapong responded in a letter referenced NAB/A/18/SF1 dated 14/8/2014 to the Minister indicating that the work of the Accreditation Board, aside formulation of policies, conducts accreditation by itself. He also added that their meetings require more than regular meetings as compared to other boards and thus appealed to the Minister to allow the board maintain its current rates which are higher than the ones approved by the Minister. We could not cite any response from the Minister for the approval of the current rates used by the Board resulting in the payment of GH¢142,306.20 and GH¢584,580.32 as monthly board allowances and committee sitting allowances respectively in 2014.

843. Payment of Board and Committee Allowances without ministerial approval could lead to over or underpayment of the allowances.

844. The anomaly occurred due to failure of the Minister to respond to the request of the board and management’s failure to follow up for a ministerial approval for the payment of board and committee allowances.

845. Consequently, management paid allowances that were contrary to the approved rates from the Minister (Finance).

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 201

846. We recommended that a ministerial approval be sought for payment of the current rates of the board or management reverts to the rates stipulated by the Minister for Finance.

847. Management said in its response that, it will follow up as was advised. We reiterated that ministerial approval be sought for the payment of the allowances especially that NAB’s rates are higher than what the Minister stipulated in the letter referenced B/CEU/2014/05 on “Allowances for Boards and Councils in Public Services”.

Use of Internally Generated Funds for Payment of Personnel Benefits-GH¢5,139.13 848. Retention of Funds Act, 2007 Act 735 section 5(c) says,” Internally Generated Funds shall not be used for the payment of salaries, staff benefits and other allowances except where the allowances are directly related to the provision of services that will lead to increased revenue”.

849. Management paid GH¢5,139.13 to two staff of the board as security guard allowances and overtime allowances. These allowances are personnel benefits and should have been paid by the controller and Accountant General.

850. Management failed to adhere to the modalities of payments from the Internally Generated Funds as stipulated in Act 735; Section 5(c).

851. We urged management to apply to the Controller and Accountant General for the amount and pay same to the Internally

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 202 Generated Fund Account. Also, management should ensure that all such allowances are paid by the Controller and Accountant General subsequently.

852. Management said an application has been made to the Controller for payment of the allowances in 2013 but has not received any response.

853. It is however contrary to the dictates of the Retention of Funds Act to pay personnel emoluments with IGF. We insist that the payment should be strictly done by the Controller and Accountant- General.

Absence of Information Technology Governance Policy 854. Information Technology governance focuses specifically on information technology systems, their performance and risk management. The primary goals of IT Governance are to assure that the investments in IT generate business value and mitigate the risk that are associated with IT. This can be done by implementing an organizational structure with well-defined roles for the responsibility of information, business processes, applications and infrastructure.

855. We noticed during our interview with the Assistant Information Technology Officer that, the Board has no IT Strategic/Steering Committee, IT Security Policy, IT Strategic Plan that supports business requirements; and undefined roles and responsibilities.

856. The non-establishment of an IT Strategic/Steering Committee at the board level could result in IT Governance not being

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 203 adequately adhered to. Also, if the Board does not have an IT Security Policy, there is no clear direction to maintain information security across the organisation and to properly safeguard the Council’s assets. Furthermore, undefined IT roles and responsibilities could result in an IT function that is non-responsive to the departmental needs.

857. We recommended that Management develops an IT Governance Policy so as to improve the structure, oversight and management processes which would ensure the delivery of the expected benefits of IT in a controlled way so as to enhance the long term sustainable success of the Board.

858. Management said that it will ensure that our recommendation is adhered to.

Absence of Business Continuity/Disaster Recovery Plan 859. Disaster Recovery Plan (DRP) is a plan that allows businesses to continue in the event of a disaster that might destroy part or all of a business’s resources, including IT equipment, data records and the physical space of an organisation. Just as a disaster is an event that makes the continuation of normal functions impossible, a DRP consists of the precautions taken so that the effects of a disaster will be minimized and the organisation will be able to either maintain or quickly resume mission-critical functions.

860. During the course of our audit, we noticed that the Board has no business continuity plan to rely on in the event of a Disaster.

861. The absence of a business continuity plan could render the Board dysfunctional in the event of a disaster and difficult to salvage her resources.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 204 862. We recommended to management to expedite action and develop a business continuity plan and orientate staff on what steps to follow when a disaster occurs.

863. The Board should as matter of urgency contact NITA in order to mount the data on their platform to safeguard it.

864. Management said it is putting temporary measures in place but will contact NITA to boost their back up data to ensure maximum safety in times of disaster.

GHANA INSTITUTE OF JOURNALISM

Introduction 865. This report relates to the audited accounts of the Ghana Institute of Journalism for the period 1 January 2009 to 31 December 2012.

Operational results 866. The year 2012 ended with operational surplus of GH¢322,142.69 representing 55.2% increase of the previous year’s surplus of GH¢207,638.87. The increase was as a result of the increase in IGF by 64.1% in 2012. The performance indicators for the year are shown in the Table 76.

Table 76: Income and Expenditure Statement for 2012 2012 2011 % Income GH¢ GH¢ Cha nge Government 2,439,496.35 2,523,394.00

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 205 Subvention (3.3)

Internally 2,113,471.13 1,288,150.46 64.1 Generated Fund (IGF) Total Income 4,552,967.48 3,811,544.46 19.5

Expenditure Personal 2,336,891.80 2,422,343.13 Emoluments (3.5) Administration 1,541,215.48 929,620.23 65.8 Expenses Service Activity 352,717.51 251,942.23 40.0 Expenses Total Expenditure 4,230,824.79 3,603,905.59 17.4

Surplus/(Deficit) 322,142.69 207,638.87 55.2 867. Total Income registered an increase of 19.5%, from GH¢3,811,544.46 in 2011 to GH¢4,552,967.48 in 2012. The increase was mainly due to the increase in the IGF from GH¢1,288,150.46 in 2011 to GH¢2,113,471.13 in 2012, representing 64.1% increase.

868. Total Expenditure also went up by 17.4% from GH¢3,603,905.59 in 2011 to GH¢4,230,824.79 in 2012. The major component which accounted for the increase was Administration Expenses, from GH¢929,620.23 in 2011 to GH¢1,541,215.48 in 2012, a rise of 65.8%.

869. However, personnel emolument recorded a decrease of 3.5%. The decrease was as a result of additional book and research allowance paid in 2011.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 206 Financial position 870. The School’s financial position as at 31 December 2012 is shown in the Table below; 2012 2011 % Items GH¢ GH¢ Change Non-Current Assets 632,791.33 256,474.39 146.7 Current Assets 698,776.23 638,553.48 9.4 Current Liabilities 114,397.00 - 100.0 Net Current Assets 584,379.23 638,553.48 (8.5) Liquidity Ratio 6.1:1 100:1

871. Non-Current Assets went up by GH¢376,316.94 or 146.7% in 2012 due to the acquisition of additional assets in the year.

872. Current Assets went up by 9.4%, from GH¢638,553.48 in 2011 to GH¢698,776.23 in 2012. The increase was mainly due to the increase in the Accounts Receivable by 58.8%, from GH¢86,144.25 in 2011 to GH¢136,780.61 in 2012. This was as a result of increases in both staff and student’s debtors’ figures in 2012.

873. Current Liabilities recorded 100.0%, increase in 2012 due to advanced School Fees payment by students in 2011. 874. The Liquidity ratio as measured by a current ratio of 6.1:1 in 2012 and 100:1 in 2011 financial years indicates the ability of the school to meet its short term debts as and when they fall due.

MANAGEMENT ISSUES

Supplementary Salary - GH¢110,877.70 875. Section 3.2 (d)(e) of ‘The Statutes of the Institute specifies among others that the function of the Council shall include control

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 207 over the finances of the Institute and shall have power to determine finally any question of finance arising out of administration of the Institute along with allocation of funds at the disposal of the Institute”.

876. Regulation 295 of the FAR 2004 also stipulates that when a public servant’s personal emolument is payable on Controller and Accountant General (C&AG) mechanized payroll or Departments main payroll, payment by manual voucher is prohibited except as approved by C&AG.

877. Notwithstanding the above regulations, we noted that the Institute paid monthly salary supplement to four personnel of the Institute on manual vouchers beside the payment of their salaries as follows:

Designation Rates (US$) Rector 1,000.00 Vice Rector 600.00 Registrar/Accountant 333.00

878. We also did not sight any approval from the Council, C&AG or Ministry of Finance for the payments which started from January 2010.

879. Within the period under review, a total amount of GH¢110,877.70, the equivalent of US$69,588.00 was paid to these officers.

880. We attributed this irregularity to management’s failure to comply with the above quoted regulations which had resulted in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 208 extra expenditure against the Institute’s planned programmes.

881. Management explained that the heading of the allowance was what was misleading and that the allowance is paid quarterly to the principal officers of the Institute referred to as the Executive Management Board members in the Institute’s status in lieu of their sitting allowance for the executive meetings in the quarter.

882. We could not agree with management’s assertion as there was no approval from the Board or the Ministry of Education who determines the rate for the payment of sitting allowance. Additionally, sitting allowances are paid as and when a committee (Executive or otherwise) sits using the approved rate but not as a monthly or quarterly allowance. Moreover, the Institute’s budget did not support the payment of monthly allowances in US Dollar to the Executive members.

883. We therefore advised management to seek retrospective approval from MOFEP through the Council or the beneficiaries be made to refund the total amount of GH¢110,877.70 and any subsequent payments into the Institute’s account.

884. Management in response stated that the practice has since been discontinued. Management now takes sitting allowance as and when it sits of which we are yet to verify.

Salary Related Allowance 885. In a related development, we noted that the under listed salary related allowances were paid to the Accountant of the Institute who is on secondment from C&AG’s Department and receives his salary from C&AG’s Department;

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 209

 Professional allowance  Head of Department allowance  Acting allowance  Off Campus allowance  Responsibility allowance  Rent allowance  Entertainment allowance

886. No authority, as well as the basis for the calculation was provided to enable us determine the legitimacy or otherwise of the payment of the allowances. Besides our review disclosed that the Accountant is not a Chartered Accountant to qualify for the payment of a professional allowance. Our review revealed that a total amount of GH¢170,810.36 had been paid to the Accountant, Mr. Mathias Dugu for the period under review.

887. Management’s failure to enforce the regulation as stated in Regulation 295 of the FAR, by ensuring the required approval was obtained before the payment of these allowances contributed to the irregularity. The Institute could lose the amount involved if it cannot be recovered.

888. In the absence of a proper authority to regularize the payment, indicating the basis of calculation, we recommended to management to ensure the Accountant refunds the GH¢170,810.36 paid him for the period under review and any other subsequent payments made to him. Additionally, we urged management to in future seek approval from the appropriate bodies before authorizing such payments, failing which the authorizing and approving officers should be surcharged with the illegitimate payment.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 210 889. Management responded among others that, all allowances for senior members of the Institute are covered in the schedule of allowances for Public Universities which had been budgeted and approved under item 2 expenditure of the Institute.

890. Our follow-up revealed that management sought clarification on the issue from Controller and Accountant General and NCTE. Response from the two departments stated that the officer is entitled to only top-up allowance; which is the difference in salary between C&AG and that of GIJ (if any) but not the salary related allowances as paid him.

891. We also wish to emphasize that the Institute’s Condition of Service recognize the status of senior members’ of staff only on the approval by the Board, based on the qualification of the officer but not his responsibility as it is in the case of the Accountant. Any officer who assumes the position of a Senior Officer is supposed to take acting allowance.

892. We did not see any approval by the board approving the officer’s status as a senior member, besides the officer is not an employee of the Institute.

893. We therefore, reiterated our recommendation that management should ensure that the officer is paid only allowances, being difference (if any) between his salary as a senior accounts officer in C&AG and what GIJ would have paid senior accounts officer. Meanwhile Mr. Mathias Dugu should be made to refund the amount of GH¢170,810.36 wrongfully paid to him.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 211 Contract documents 894. For effective management and control over contracts, it is expected that for each contract, records on the project would be maintained in a coherent manner such that appreciation of each aspect of the project can be effectively monitored by a file supporting it. The contract file should contain the contract agreement indicating the contract sum, expected date of completion as well as payment certificates among others.

895. Regulation 1 of the FAR also enjoins Heads of Departments to keep proper records of all transactions and produce these records for inspection when called upon to do so by the Minister, the Auditor-General or C&AG or any other officer authorized by them.

896. Contrary to the above expectations, our review of projects awarded by the Institute proved otherwise. We noted that the Institute entered into contract agreement with three contractors and two consultants on the under listed projects:

Project Contractor Amt paid Refurbishment of old urinal & Paaku - construction of a new urinal Construction Refurbishment of existing Daa - classroom Construction Construction of 1 to 4 unit Zangoze - lecture hall The consultants were SCI GEO Tasiame - Consult and Hope

897. There were no files maintained on the projects as well as contract register to record the details of the contracts and monitor payments made on them. Our request for agreements on the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 212 contracts to enable us scrutinize the projects yielded no results. 898. In the absence of such vital information, we could not determine the contract sum, whether the amount paid to the Consultants met the requirements of the agreement; payments to Contractors were properly supported by the Consultants certificates and whether duration of the project, specifications etc. are in conformity with the agreement.

899. Meanwhile, a total amount of GH¢275,380.32 were paid to the contractors and the consultants within the period under review.

900. Management’s failure to keep proper records of all transactions could undermine procedures set for contract management. This could lead to payment for work not done or shoddy work could go undetected.

901. We recommended that management should ensure that the contract agreements for both the contractors and the consultants are made available for our examination. Management should also ensure that contract register is kept to record all transactions with contractors.

902. Management alleged it attached the original documents to the payment vouchers, which we disagree as there was no contract agreement attached to the payment vouchers; besides attaching them to the payment vouchers is not the appropriate filing procedure.

903. We therefore reiterated that contract agreements for both the contractors and the consultants should be made available for our examination, failing which the paying officer should be sanctioned in accordance to Regulation 8 of the FAR.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 213 Building Donations 904. The Institute wrote to various Corporations and Institutions to solicit for building materials for building of emergency Lecture Hall. Our examination revealed that records were not maintained on the receipt and usage of the items donated by the various institutions.

905. We noted during our physical inspection that 20 packets of roofing sheets said to have been donated by NADMO, packed at the school were not covered by any document aside the letter appealing for the assistance. A further investigation disclosed that the roofing sheets were packed because they did not meet the specification required for the roofing of the Lecture Hall. 906. The non-adherence to Stores Regulation could lead to pilfering, suppression and misuse of the items received. We attributed this irregularity to lack of managerial supervision and control over stores.

907. We recommended that management should make available records on the donations received and their utilization for our audit inspection. We further advised that in future management should ensure that all transactions of the Institute including donations received are recorded in the appropriate documents to enhance proper accountability.

908. Management response stated that the donations were factored into the various certificates that were raised for payments by the consultant. That is, the costs of the donated materials were deducted from the contract sum before payments were made to the contractor.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 214 909. We could not substantiate management’s claim as there was no documentary evidence on the materials donated to the Institute to enable us compute the costs to reconcile with any deductions from the certificates. Moreover, as cited earlier, contract agreements and certificates were not provided to facilitate the confirmation of this statement. We therefore stand by our previous recommendation.

Unearned Salaries GH¢4,454.71 910. Regulation 298(1c) of the FAR, 2004 enjoins all heads of departments to immediately cause the stoppage of payment of salary to a separated staff.

911. We detected during a payroll review that a staff who was separated from the Institute through retirement was subsequently paid one-month unearned salary of GH¢4,454.71, even though Management notified Controller and Accountant-General of the Officer’s effective date of retirement.

912. Details as follows; Name Grade Date Unearned Sal. Net Amount Retired Month Collected GH¢ Eben. T. Ag. Registrar 31/8/2012 Sept. 2012 4,454.71 Anim

913. We recommended that efforts should be made by management to retrieve the amount from the former employee and pay into the consolidated fund without delay.

914. Management intimated it had recovered GH¢2,500.00, and that efforts would be made to recover the balance of GH¢1,954.71.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 215 INSTITUTE OF LOCAL GOVERNMENT STUDIES

Introduction 915. This report relates to the audited accounts of the Institute of Local Government Studies for the financial year ended 31 December 2014.

Operational results 916. The organization’s operations for the year 2014 ended with a surplus of GH¢293,804, thus registering an increase of GH¢320,216 or 1,216.2% over 2013 deficit of GH¢26,322. A summarized income statement is shown in Table 77. Table 77: Income and Expenditure statement for 31 December 2014 Income 2014 2013 % GH¢ GH¢ Change Rental 965,848 878,480 9.9 Collaborations 1,913,409 2,786,920 (31.3) Academic Programme 1,123,051 1,268,715 (11.5) Management 17,220 - - Development Programme Other Income 2,467 83,209 (97) Donated Assets 18,872 18,872 - Total Income 4,040,867 5,036,196 (19.8) Expenditure Compensation 1,139,615 942,188 21 Goods and Services 2,607,448 4,120,330 (36.7) Total Expenditure 3,747,063 5,062,518 (26) Surplus / (Deficit) 293,804 (26,322) (1,216.2)

917. Total income reduced by 19.8% from GH¢5,036,196 in 2013 to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 216 GH¢4,040,867 in 2014. This was mainly due to 31.3% decrease in revenue from collaborations and a 97% decrease in other Income.

918. Expenditure incurred in 2014 totalled GH¢3,747,063 as against GH¢5,062,518 in the previous year, representing a decrease of 26%. This was as a result of 36.7% decrease in goods and services.

Financial position 919. The financial position of the Institute is shown in Table 78.

Table 78: Financial Positions at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current 1,072,269 1,029,184 4.2 Assets Current Assets 1,386,291 840,104 65 Current Liabilities 889,323 574,983 54.7 Net Current 494,968 265,121 87.4 Assets Current Ratio 1.6:1 1.5:1

920. The organisation’s Non-Current Assets which stood at GH¢1,029,184 in 2013 went up by 4.2% to register GH¢1,072,269 in 2014. The increase was due to the acquisition of additional property, plant and equipment.

921. Current Assets also increased from GH¢840,104 in 2013 to GH¢1,386,291 in 2014, representing 65% rise. This rise was mainly due to an increase in debtors’ balance.

922. Current Liabilities also increased by 54.7% from GH¢574,983

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 217 in 2013 to GH¢889,323 in 2014.

923. Though the current ratio improved in 2014 to 1.6:1(2013: 2.5:1) it still fell below the benchmark of 2:1. This depicts that the organization cannot meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Non-payment of Withholding Taxes and PAYE 924. The Internal Revenue Act 2000(Act 592) requires that taxes should be withheld from the payment of salaries as well as goods and services and paid to Ghana Revenue Authority. We observed that a total amount of GH¢178,892.03 representing withholding taxes deduction on goods, services and salaries have not been paid. Withholding taxes payable at the end of the year for goods and services amounted to GH¢63,574.79 and PAYE amounted to GH¢115,317.24 which has not been paid by the Institute to Ghana Revenue Authority.

925. The Institute may pay penalty in addition to the amount withheld.

926. We recommended that the Institute’s management must pay the outstanding withholding tax liability.

927. Management indicated that shortfalls in its cash flows were the reason the payments were not made.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 218 NATIONAL BOARD FOR PROFESSIONAL AND TECHNICAL EXAMINATION (NABPTEX)

Introduction 928. This report relates to the audited accounts of the National Board for Professional and Technical Examination for the period 1 January 2012 to 31 December 2013.

Operational results 929. The Board recorded a surplus of GH¢77,361.22 for 2013 as against a deficit of GH¢107,073.49 for the previous year’s operations which represented an increase of 172.3%. The performance indicators for the year are shown in the Table 79 below:

Table 79: Income and Expenditure statement for 2013 Income 2013 2012 % GH¢ GH¢ Change Government 1,711,571.83 1,589,093.11 7.7 Subvention Internally Generated 2,332,415.00 846,960.00 175.4 Fund Total Income 4,043,986.83 2,436,053.11 66.0 Expenditure Personal Emoluments 1,801,661.23 1,594,189.43 13.0 Administration 564,548.62 414,639.45 36.2 Service 1,600,415.76 534,297.72 199.5 Total Expenditure 3,966,625.61 2,543,126.60 56.0 Surplus/(Deficit) 77,361.22 (107,073.49) (172.3)

930. Total Income increased by 66.0%, from GH¢2,436,053.11 in 2012 to GH¢4,043,986.83 in 2013. The increase was mainly due to a

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 219 175.4% rise in IGF from GH¢846,960.00 in 2012 to GH¢2,332,415.00 in 2013.

931. Total Expenditure also increased by 56.0% from GH¢2,543,126.69 in 2012 to GH¢3,966,625.61 in 2013. The major component which accounted for the increase was Service Expenditure, from GH¢534,297.72 in 2012 to GH¢1,600.415.76 in 2013, an increase of 119.5%. Increase in the conduct of Technical Exams from GH¢111,328.32 in 2012 to GH¢793,458.00 in 2013 representing 612.7% accounted for the increase in service expenditure. Financial position 932. The department’s financial Position as at 31 December 2013 is shown in the Table below: Items 2013 2012 % GH¢ GH¢ Change Non-Current Assets 319,864.35 250,000.35 27.9 Current Assets (24,675.96) (47,363.18) (47.9) Current Liabilities - - - Net Current Assets (24,675.96) (47,363.18) (47.9)

933. Non-Current Assets increased by GH¢69,864.35 or 27.9% in 2013. Additions to fixed assets during the year accounted for the rise.

934. Current Assets decreased by 47.9%, from (GH¢47,363.18) in 2012 to (GH¢24,675.89) in 2013. The decrease was mainly due to payment of debt.

935. No Current Liabilities was recorded for the period, meaning the Board settled all its debt during the period.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 220 MANAGEMENT ISSUES

Indebtedness of Takoradi Polytechnic – GH¢268,000 936. NABPTEX conducts examination for the Polytechnics. Consequently, the Polytechnics collect examination fees on behalf of NABPTEX which they in turn reimburse to NABPTEX. Our review of amounts reimbursed to NABPTEX showed that Takoradi Polytechnic is indebted to NABPTEX to the tune of GH¢268,000 despite several reminders sent to the Polytechnic.

937. The occurrence was due to the Polytechnic’s failure to remit to NABPTEX examination fees collected on its behalf for the past years, hence accumulating this huge debt. Also NABTEX management did not put in place appropriate sanctions to deter defaulters.

938. The delay in the payment of this amount would considerably affect NABPTEX in carrying out its core duties and mandate as enshrined in its Act.

939. We therefore recommended that management put in place stringent measures that will compel defaulting Polytechnics to pay, which may include withholding of certificates and interest charged for delayed payment. This could be done through the signing of a Memorandum of Understanding with the Polytechnics. Meanwhile a copy of this observation together with a reminder letter should be sent to Takoradi Polytechnic demanding the payment.

940. Management responded that the Polytechnic will be informed about the Audit Observation to facilitate prompt payment of the amount owed to NABPTEX.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 221 Blank Certificates Not Routed through Stores 941. Section 35[1,2] of the FAA Act 654 states that ‘’ a head of department is accountable for government stores from time of acquisitions to the time they are of no further use or value to government. Accountability is discharged when government stores have been consumed in the course of public business and records are available to show that the government stores have been consumed.’

942. Notwithstanding the above regulation, we noted that 130,000 blank certificates with a face value of GH¢41,580.00 ordered by the Board during the period under review from CheckPoint Ghana Limited for printing of certificates to its clients were beset with the following flaws:  The blank certificates supplied were not routed through store,  Requisitions for the blank certificates were made on loose memo sheet and left in the register.  We did not sight any store issue voucher appropriately signed by recipients to control the issues.

943. We could therefore not confirm whether the quantity of blank certificates ordered was the correct quantity supplied and receipted. We could also not match issues with requisitions in the absence of issue vouchers.

944. Management’s failure to adhere to proper stores procedure could lead to short supply which may go undetected besides diversion of some certificates for personal gains. The omission also resulted in lack of audit trail in the purchases and use of the blank certificates.

945. We recommended that management should ensure all

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 222 supplies are routed through the store to enhance adequate control over the blank certificates. Also, the Blank Certificate Register should be redesigned to include receipts. Issue vouchers should be introduced to control the issues of the blank certificates to leave audit trail and guarantee transparency.

946. Management responded that it has noted our recommendations and an issue voucher had been introduced at the point of issuance to guarantee transparency and ensure value for money.

Computers procured left damaged – GH¢24,000 947. Regulation 2[c] of FAR 2004 L.I 1802 requires the head of government department to secure the efficient and effective use of appropriations under departmental control within the ambit of government policy and in compliance with any enactment, regulations or instructions issued under the authority of any enactment.

948. On the contrary, we observed during our inspection of the Board’s stores that five boxes which contained unused system processing unit key boards inclusive, four other boxes of unused system processing unit and another box containing a monitor were all marked faulty. 949. further investigation revealed that the items were part of 15 set of computers financed by GETFund with a total cost of GH¢24,000 in 2010 for online examination project which was later abandoned by the Board. The Procurement Officer confirmed that there were no defects when the items were procured and delivered.

950. The IT Officer who was engaged in May 2013 said that the defect could either be a faulty mother board, memory and or power

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 223 source. He attributed the faults to conditions under which the items were kept for the past three to four years.

951. We recommended that the officers whose inaction led to the lapse should explain why the computers which were procured with the taxpayer’s money were left to deteriorate to this state without being used.

952. Management responded that the IT department is rectifying the problems.

Unserviceable Items 953. Chapter 11, Section 1101 of Stores Regulation 1984, states that “it is the responsibility of all supervisory officers in charge of stores and equipment to determine what unserviceable stores are lying in their compounds and stores. It is their further responsibility to take immediate action to dispose off such categories of store and, when necessary to report the circumstances to the appropriate authority for disposal action”.

954. We assessed the Board’s 12 vehicles vis-à-vis the log books and noted the following:  four of the vehicles were not in very good condition;  one has been grounded for the past three years;

955. In a related development we noted other office equipment which had become unserviceable but mixed up with store items and others left in the offices.

956. Laxity on the part of management to effectively supervise stores and observe the relevant store procedures contributed to the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 224 anomaly. The continuous grounding of these vehicles and the office equipment could be detrimental to the Institution as it would cause further physical deterioration leading to loss of value. These may lead to little or no money realized during their disposal.

957. We urged management to use laid down procedures and take immediate action to dispose off these vehicles and other items to avoid further deterioration and loss of value.

958. Management accepted our recommendation, it however stated that almost all their vehicles are over seven years old and Government had not since provided funds for replacement considering the nature of their work which demanded frequent travels.

Officers on Education Sponsorship not bonded 959. To ensure that an organization is not deprived of the benefit of investing in building its human resource capacity, officers who are granted approval to study leave with pay to pursue fulltime courses should be bonded.

960. Our audit revealed that the Board had sponsored two of its staff members during the years under review to pursue a degree and a master’s course. Our review further disclosed that the officers failed to complete the Board’s bond form. See details below:

NAME PROGRAM MAD. JUDITH AGIDI DEGREE MARCUS GABBY SACKEY MASTERS

961. Failure to bond the beneficiaries may deprive the Board of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 225 the benefit to be derived from the investment made in its human resource capacity building, if after completion of the studies the beneficiary decided to resign from the Board.

962. We advised that the above mentioned officers and subsequent beneficiaries are made to complete and submit bond forms to safeguard the investment made by the Board in building its human capacity to enhance productivity.

963. Management accepted our recommendation for compliance.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 226 MINISTRY OF TRADE AND INDUSTRIES

GHANA STANDARDS AUTHORITY

Introduction 964. This report covers the audited accounts of Ghana Standards Authority for the period 1 January 2011 to 31 December 2014.

Operational results 965. The year 2014 ended with an operational surplus of GH¢7,283,870, which represented an increase of 68.1% over the previous year’s surplus of GH¢4,334,217. Table 80 presents a summary of the Authority’s performance indicators.

Table 80: Income statement for the year ended 2014 Revenue 2014 2013 % GH¢ GH¢ Change Recurrent Grant 5,707,244 5,232,910 9.1 Internally Generated Fund: Net Destination Inspection Scheme 6,590,258 7,247,112 (9.1) Other Internally Generated 18,833,494 11,194,870 Fund 68.2 Total Internally Generated 25,423,752 18,441,982 Funds 37.9 Total Revenue 31,130,996 23,674,892 31.5 Expenditure Personnel Emolument 10,683,635 9,750,916 9.6 Administration Activity 8,125,624 6,021,236 34.9 Service Activity 5,037,867 3,568,523 41.2 Total Expenditure 3,847,126 19,340,675 23.3 Surplus 7,283,870 4,334,217 68.1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 227 966. Total Income rose by 31.5% from GH¢23,674,892 in 2013 to GH¢31,130,996 in 2014. The rise was due to a 68.2% increase in other internally generated fund from GH¢11,194,870 in 2013 to Ghc18, 833,494 in 2014.

967. Total Expenditure went up by 23.3% from GHc19, 340,675 in 2013 to GH¢23,874,126 in 2014. Prominent in the expenditure pattern was service activity which went up by 41.2% from GH¢3,568,523 in the previous year to 5,037,867 in 2014.

Financial Position 968. Shown in Table 81 is the Authority’s financial position as at 31 December 2014.

Table 81: Financial Position as at 31 December 2014. 2014 2013 % change Non-Current Assets 32,174,280 24,284,437 32.5 Current Assets 14,795,645 15,435,730 (4.1) Current Liabilities 1,609,921 1,644,033 (2.1) Equity 45,360,004 38,076,134 19.1 Current Ratio 9.2 9.4 969. The Non-Currents assets of the Authority increased by 32.5% from GHc24,284,437 in 2013 to GHc32,174,280 in 2014. The increase was due to increase in property, plant & equipment and capital work in-progress.

970. Current Assets declined from GH¢15,435,730 in 2013 to GH¢14,795,645 in 2014, a fall of 4.1%. The decline was mainly due to 20.7% decrease in inventory from GH¢2,174,530 in 2013 to GHc1, 725,359 in 2014.

971. Current Liabilities also registered a decrease of 2.1% from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 228 GH¢1,644,033 in 2013 to GH¢1,609,921 in 2014. This was due to a decrease of GH¢422,119 or 5% decrease in Accounts payable.

972. The liquidity position of the Authority as measured by current ratio, decreased from 9.4: 1 in 2013 to 9.2:1 in 2014. In spite of the drop, the authority can meet its short term obligations as and when they fall due.

MANAGEMENT ISSUES

Overstatement in Property, Plant and Equipment Value 973. Contrary to the authorities accounting policy to recognize fixed asset at the cost, we observed that there were differences between the system’s report figures and the invoices/SRV figures from the stores in the pricing of some of the fixed assets issued. Some of these difference were significant. Examples are as follow: Item Invoice/SRV System Variance Value Value 12 air- 19,200.00 31,053.00 11,853 conditioners 5 air conditioners 11,250.00 12,938.75 1,688.75 12 swivel chairs 5,040.00 8,762.64 3,722.64

974. Property, plant and equipment are overstated in the financial statements, therefore resulting in misleading financial reporting.

975. We recommended that valuation of the Authority’s asset should be consistent with its stated policy.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 229 976. Management agreed to investigate and adjust the differences accordingly.

DORMANT BANK ACCOUNT 977. We observed that the following bank accounts have been dormant and the bank balances have been reappearing in the books without any movement. The banks did not respond to our confirmation letters.

Account Balance Name (GHC) GARFUND 482.08 EDIF 5,092.11 Account

978. The existence of the balance may be in doubt.

979. We recommended that management should confirm the balances so that the status of the balances could be known.

980. The Authority has sent a reminder to the banks concerned to transfer the balances to the Authority’s Account with Bank of Ghana, High Street.

POOR STORES MANAGEMENT 981. Stores regulation 1984 regulation 0105 requires a Head of Department to be accountable for the proper care, custody and use of public supplies and equipment from the time of acquisition until they have been used or otherwise disposed.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 230

982. We observed the following weaknesses in the store management i. The air-conditioners in the chemical and glassware stores were not functioning. These chemicals generate heat on their own. ii. Store items in the stationery and glassware stores were not properly laid out and arranged. In the stationery store items like A4 sheets, toilet roll, lab coats were parked on the bare floor. iii. We also noted that lots of expired chemicals were still kept in stocks. Below are list of expired chemicals:

Name of Chemical Quantity Carbon Tetrachloride II 3 Chloride Standard Solution 500ml 2 Leishnans Stains – 500ml 2 Liquid Parafin – 100ml 1 Mecuric Potassium lodide 250g 2 Methel Oenanthate – 5ml 2 Murexide 1g 1 Picrolomic Acid 25g 1

983. The anomaly in stores management can be attributed to lack of supervision.

984. The heat generated in the store rooms could damage the chemicals, the expired chemicals could easily explode and are hazardous to the health of store keepers. It may be difficult to identify and access stock items. 985. We recommended that management should ensure that the air conditioners in the chemical and glassware stores are functioning

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 231 and items in the store must be properly arranged as well as obtaining pallets to put store items on.

986. Expired chemicals must be moved out of stores and authorization obtained for proper disposal.

987. Management responded that the air conditioners have been serviced and are functioning. Steps are being taken to arrange the stores for easy identification.

988. The Environmental Protection Agency (EPA) had been invited to supervise the destruction of the expired chemicals.

EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF)

Introduction 989. This report covers the audited accounts of Export Trade, Agricultural and Industrial Development Fund (EDAIF) for the years ended 31 December 2013 and 2014.

Operational results 990. The operations for 2014 ended with a surplus of GH¢75,070,902, as against GH¢56,193,260 reported in the previous year. The details of the operations of the Fund for the two year period are provided in Table 82.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 232 Table 82: Income statement for 2013 and 2014 2014 2013 % Revenue GH¢ GH¢ Change Levies 111,822,607 101,120,236 10.6 Other Income 53,175,090 35,169,230 51.2 Total Revenue 164,997,697 136,289,466 21.1 Expenditure Operating 15,194,830 11,761,334 29.2 Expenses Grant Expenses 74,731,895 68,334,872 9.4 Total 89,926,725 80,096,206 12.3 Expenditure Surplus 75,070,902 56,193,260 33.6

991. Total Revenue increased by 21.1% to GH¢164,997,697 in 2014 from GH¢136,289,466 in 2013. The increase was due to a 51.2% rise in Other Income and a 10.6% rise in Levies.

992. Total Expenditure for 2014 amounted to GH¢89,926,725 as against GH¢80,096,206 recorded in 2013. This showed an increase of 12.3% over the 2013 expenditure. The rise was as a result of increases in Operating Expenses and Grant Expenses.

Financial position 993. Shown in Table 83 is the financial position as at 31 December 2014 and 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 233 Table 83: Balance sheet as at 31 December 2014 and 2013 2014 2013 % GH¢ GH¢ Change Non-Current 54,110,793 809,210 6,586.9 Assets Current Assets 477,257,886 454,469,418 5.0 Current 1,545,406 959,168 61.1 Liabilities Net Assets 528,022,650 452,951,678 16.6 Current Ratio 308.8:1 473.8:1

994. Non-Current Assets made up of Property and Equipment went up by 6,586.9% from GH¢809,210 in 2013 to GH¢54,110,793 in 2014. The increase was as a result of acquisition of Office Building, Computers and Accessories, Furniture & Fittings and Office Equipment. 995. Current Assets rose by 5.0% from GH¢454,469,418 in 2013 to GH¢477,257,886 in 2014. This was due to increases in Loan Receivables and Other Receivables.

996. Current Liabilities also registered a significant rise of 61.1% from GH¢959,168 in 2013 to GH¢1,545,406 in 2014. This was largely attributed to increases in Other Accrued Expenses and Sundry Payables.

997. The current ratio stood at 308.8:1 in 2014 compared with 473.8:1 in 2013 indicating that though the ratio declined the Fund will still be able to discharge its short-term obligations as and when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 234 MANAGEMENT ISSUES

Excessive issuance of grants compared to loans and levies 998. Section 5 of Act 582 as amended by Act 823 (2011) states the following: 1) The board shall divide the moneys of the Fund into three categories of accounts, namely the Export Development and Promotion Account, the Agriculture and Agro-processing Development and Credit Account and the Export Credit Facility Account.

999. Section 5 of Act 872 (2013) also describes the categories of accounts of the Fund as follows: i. The Board shall in consultation with the Minister allocate the moneys of the Fund for the following categories of accounts: a) Research and Development Promotion Account; b) Credit Facility Account; c) Projects Account; d) Equity Finance Account; e) Operational Account; and f) Any other account determined by the Board.

1000. We noted an increasing trend in the issuance of grants over the years from 2011 to 2014. The proportion of grants to levies issued per year increased from 14% in 2011 to 67% in 2014. There was also a significant increase in the proportion of grants as compared to total amounts disbursed in grants and loans from 2011 to 2014. Table 84 below clearly indicate the grant amounts and proportions over the last four years:

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 235 Description 2011 2012 2013 2014 Levies (GH¢) 73,708,416 96,372,040 101,120,236 111,822,607 Total grants (GH¢) 10,211,424 13,700,738 68,334,872 74,731,895 Grants as a 14% 14% 68% 67% percentage of levies

Description 2011 2012 2013 2014 Grants (GH¢) 10,211,424 13,700,738 68,334,872 74,731,895 Loan disbursement 16,981,266 35,425,027 65,040,317 50,618,648 during the year (GH¢) Total (Grants + 27,192,690 49,125,765 133,375,189 125,350,543 Loans) (GH¢) Grants as a 38% 28% 51% 60% percentage of total grants and loans Loans as a 62% 72% 49% 40% percentage of total grants and loans

1001. In general, the issuance of grants is increasing at a high rate from 14% in 2011 to 67% in 2014 of total Levies. This may have a negative impact on the growth and sustainability of the Fund as grants are not recoverable. Currently, management does not monitor the impact of grants and the growth rate of the Fund; hence, any adverse impact of the excessive issuance of grants may go unnoticed.

1002. We recommended that more loans should be given out than grants. Giving out loans to beneficiaries that meet requirements would help to grow the fund as loans are repayable. The Board also should issue clear guidance on the issuance of grants and proportioning of funds among the amounts of the fund indicated in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 236 Act 872.

1003. Management in response recognises the need to reduce the proportion of grants as compared with loans and this reflects clearly in the 2015 budget allocations. The Board has taken steps to ensure that in the future a more appropriate balance should be made between grants and credits of about 30:70 in favour of credits.

Financial returns on grants not submitted to EDAIF 1004. Good accounting practices require that financial transactions should be adequately supported with payment vouchers or certificates duly signed by the authorised personnel and third party documents such as invoices, receipts and contracts. Grants disbursed were supported by documents such as detailed activity budgets and work plans were submitted by applicants for review. There was also adequate evidence of board approval for the disbursement of grants. 1005. We noted that EDAIF does not always require the grantees to submit financial reports and supporting documents for expenditure incurred out of the grants. Consequently, not all the grantees submitted financial reports and supporting documents. As a result, EDIAF did not have documents at its level to indicate whether grants totalling GH¢31,131,914 and GH¢28,970,444 disbursed in 2013 and 2014 respectively had been used for the approved purposes. Table 85 below provides the details.

Name of Institution 2013 Grant 2014 Grant Total amount amount (GH¢) (GH¢) (GH¢) Ministry of Trade and 27,215,716 18,807,600 46,023,316 Industry National Board for Small 2,584,765 117,434 2,702,199 Scale Industries

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 237 Ghana Export Promotion 842,824 3,576,018 4,418,842 Authority Parliamentary Select 320,000 - 320,000 Committee on Trade Ghana Chamber Of 168,609 - 168,609 Commerce and Industry Ghana National Service - 3,289,392 3,289,392 Scheme Board (Dizengoff Gh. Ltd) Youth Enterprise Support - 3,000,000 3,000,000 Fund Total 31,131,914 28,790,444 59,922,358

1006. As a follow-up, we visited the agencies listed below and reviewed the supporting documents at their offices: . Ministry of Trade and Industry . Ghana Export Promotion Authority . National Board for Small Scale Industries . Ghana National Service Scheme Board

1007. From the foregoing, Management risk not being able to ascertain whether funds are used for the intended purpose.

1008. We recommended that Management should ensure that grant agreements or offer letters to beneficiaries, including government institutions, for approved grant include clauses such as submission of financial returns, activity reports and the right of audit of funds by internal or external auditors to ensure judicious use of EDAIF’s financial resources.

1009. Management should also obtain and retain copies of financial reports and third party supporting documentation evidencing the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 238 use of grants disbursed.

1010. Management in response said that, agreements and offer letters are attached to offer letters to beneficiaries and the recommended clauses are included to offer letters. Management asserted that there were a few omissions and the necessary procedures would be put in place to ensure such omissions are corrected and not repeated. Write off of “interest free loans” and loan to government agency 1011. Between 2011 and 2013, EDAIF Board approved recoverable grant facilities totalling GH¢7,193,009; comprising of grants to mango farmers of GH¢6,979,685 and butternut squash farmers of GH¢213,324. However, at the board’s 115th meeting held on 24th April 2014, it approved a decision to write off these recoverable grants. The rationale for the write-off was that the mango project was poorly designed and recoverability of the amount was doubtful. Based on this decision, management wrote off the balance of GH¢7,193,009 in the 2013 financial statements.

1012. In addition to the above, in an extraordinary board meeting held on the 24 May 2014, the board of directors of EDAIF passed a resolution to convert the outstanding balance of GH¢10,500,000 due from Eximguaranty Company Limited into an irrecoverable grant. 1013. This constitutes non-judicious use and loss of financial resources to the Fund, and contributes to the potential depletion of the resources of the fund as an amount of GH¢17,693,009 have been written off per decision of the Board without recourse to Parliamentary approval. In addition, this contravenes section 7(2) of EDAIF Act 2013, Act 872 which requires the Board to perform its functions and conduct its affairs in accordance with sound investment and financial standards and practices.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 239

1014. The Board may also not be thorough in their assessment of initial loan applications prior to approval, as they can always come back to write-off loans.

1015. We recommended that the Board/Management should put rigorous systems and processes in place for granting facilities (credit and grants) to beneficiaries. In particular, management should ensure the viability and recoverability of interest free loans. The Board should also ensure that its duties are performed in accordance with the EDAIF Act 2013, (Act 872). Additionally, the Board should seek approval from Parliament before writing-off GH¢17,693,009.

1016. Management responded that, the board ensures that its duties are performed in accordance with the EDAIF Act 2013, (Act 872). Management explained that, in the matter of the GH¢7,193,009 ‘recoverable grants’, the Board, at the time the facilities were granted, approved the facilities as grants and not credits, and so they should have been treated as grants in the first place. That was why the facilities were disbursed under the grant window and through the grant facility account. The accounting treatment which initially recorded the transaction as loans was not appropriate. The Board and Management treat the transaction as ‘recoverable’ in order to exact commitment from the beneficiaries that the facility was recoverable could do the trick.

1017. As regards, the GH¢10,500,000; facility was a credit line given to Eximguaranty Company to enable them grant insurance cover for

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 240 beneficiaries who could not offer adequate collateral. The company’s challenge was that if they repaid the facility to EDAIF, they would not be able to recycle the funds for continual use; hence, a request was made to the Board of EDAIF to consider the facility as a grant, so that Eximguaranty could continue to use the funds to provide insurance cover to the intended beneficiaries. The Board approved the request.

1018. Management indicated that since 2013, the procedures carried out prior to approval and disbursement of facilities have been much more vigorous than before and that is meant to ensure viability and recoverability of loans.

Approval of grants in excess of stated threshold 1019. Section 2.3 of EDAIF guidelines for the Export Development and Promotion and Export Credit and Projects Facilities (March 2013) states the following: ii. Approvals under the grant for a particular project shall generally not exceed the cedi equivalent of US$100,000. iii. The EDAIF board reserves the right to exceed the US$100,000 limit if, in the Board’s assessment, the required funding for a particular project exceeds the stated limit of US$100,000.

1020. We noted that in contravention of the aforementioned Act, 27 individual grants totalling GH¢45,041,164 and GH¢50,188,581 issued in 2013 and 2014 respectively were in excess of the stated threshold of US$100,000. These were issued mainly to government agencies. The high frequency of issuing grants in excess of US$100,000 suggests that such occurrences have become the norm, rather than a rule to be applied in exceptional cases. Also, no justification was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 241 provided for approving these grants.

1021. We recommended that approval of grants should be in line with the stated guidelines. The disbursement of grants in excess of the stated threshold should be a rare occurrence. Since grants have the potential of depleting the resources of the fund (as they are not repayable), justification should be provided for approving requests above the stated threshold of US$100,000.

1022. Management in its response said that, the approval limits were set by the previous Board of Directors. Upon taking office, the new Board indicated that they would not go by these limits but would approve projects on merit based on reasonable judgment. It is worth noting that the limits were set before Act 872 of 2013 came into being. Act 872 introduced the Project Facility (government project grants are usually much higher than US$100,000), which made the initial limitations unrealistic in the circumstances; hence the Board decision not to go by the limits set by the previous Board. The Board has agreed to review the policy and retain the US$100,000 for the “pure grants” under Research, Development and Promotion (RDP) facility.

Misapplication of Funds- GH¢2,496,173 1023. Section 2(2) of the Export Trade, Agricultural and Industrial Development Act, 2013 (Act 872); which was assented to on 8 January, 2014 indicates that, “for the purpose of achieving the object of the Fund, monies from the Fund shall be applied to the following activities: a) The development and promotion of (i) export products, (ii) export market development, and (iii) agriculture related to agro-processing;

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 242 b) Infrastructure development; c) Export trade oriented activities of institutions and bodies in the public and private sectors of the economy; d) Fostering the development of small and medium scale enterprises; e) Undertaking research and the appraisals and studies required to determine the areas of export trade, agriculture related to agro-processing and industry that need interventions; f) Monitoring and evaluation of the impact of interventions on export trade, agriculture related to agro-processing and industry; g) The provision of credit, credit guarantee, export insurance, refinancing through designated financial institutions to persons in the sectors related to export trade, agriculture related to agro-processing and industry; h) Equity funding through the approved equity fund managers; and,

i) Any other activity determined by the Board to achieve the object of the Fund.

1024. We noted that in 2014, the board approved disbursement of GH¢2,496,173 to the Ministry of Trade and Industry (MoTI) to be paid as a deposit in court, pending an appeal for a case brought against Gratis Foundation by its former employees. This payment is contrary to the prescribed use of EDAIF moneys outlined in EDAIF’s Act (Act 872). 1025. The payment is not in line with the objective of the fund. 1026. We recommended that the amount in question should be refunded by the Ministry of Trade and Industry/Gratis Foundation.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 243

1027. Management responded that, “the request was made by the Honorable Minister of Trade and Industry to make a refundable disbursement on behalf of GRATIS to the court pending judgment in order to prevent the properties of the agency from being auctioned. The Board examined the request and granted approval based on the Minster’s request. When the court disposes of the case, Management will follow up with the Ministry of Trade and Industry to recover the money.

Long outstanding staff loans 1028. Good financial management practices require that loan schedules are updated promptly with all repayments and disbursements. Doubtful and bad debts should also be assessed and provided for or written off as appropriate.

1029. Included in staff receivables at the end of 2014 is a total amount of GH¢41,733recognized in respect unpaid car and welfare loans owed by three staff. These staff have resigned with their loan balances still outstanding as at the time of audit. Details provided in the Table 86.

Table 86: Outstanding staff loans Loan Type Amount Comments GH¢ Car loan 15,539 Staff resigned in 2012 Car loan 15,361 Staff resigned in 2010 Welfare loan 10,833 Staff resigned in May 2013 Total 41,733 1030. We recommended that management should put in measures

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 244 to recover the outstanding amount of GH¢41,733.

1031. Management in response said that the outstanding staff loans of GH¢41,733 relate to staff whose Provident Fund contributions (which exceed the total balance) have been withheld by EDAIF until they settle all outstanding issues with the Fund.

Vacancy in Deputy Chief Executive Position 1032. Section 31(1) of the Export Trade, Agricultural and Industrial Development Act, 2013 (Act 872) which was assented on 8 January 2014 states that, “the President shall in accordance with Article 195 of the Constitution, appoint (a) a Chief Executive; and (b) a Deputy Chief Executive.”

1033. We noted that the Deputy Chief Executive position was vacant throughout 2014. Hence, in the absence of the Chief Executive, another person is selected to act in his position.

1034. Non-compliance with the provisions of the Act (Act 872) could result in increased workload on the Chief Executive.

1035. We recommended that the Board should draw the attention of the President and ensure that the position as stipulated by the Act (Act 872) is filled by qualified personnel.

1036. Management in its response stated that the board has taken note of the comments and has agreed to refer this to the appointing authority.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 245 GHANA FREE ZONES BOARD

Introduction 1037. This report is on the audited accounts of the Ghana Free Zones Board for the period January 2011 to 31 December 2012. Operational results 1038. The Board made a surplus of GH¢5,554,600 in 2012, an improvement of 64.9% over the previous year’s surplus of GH¢3,368,514.

1039. A summary of the Board’s performance for the review period is show in Table 87.

Table 87: Income Statement for 2012 2012 2011 % Income GH¢ GH¢ Change Income 11,788,480 7,431,534 58.6 Expenditure Operational Expenses 273,084 256,045 6.7 Employee Costs 1,480,864 936,699 58.1 Board and Committee 375,239 455,287 (17.6) Expenses Financial and Professional 389,503 199,328 95.4 Charges Travelling and Transport 1,236,245 651,570 89.7 Repairs and Maintenance 550,921 279,759 96.9 Administration and General 1,928,024 1,284,333 50.1 Exp. Total Expenditure 6,233,880 4,063,021 53.4 Surplus/(Deficit) 5,554,600 3,368,514 64.9

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 246

1040. Total Income went up to GH¢11,788,480 in 2012 from GH¢7,431,534 in 2011, representing a rise of 58.6%. This was mainly due to the rise in sales of forms and processing fees, Lease premium and Exchange gains.

1041. Total Expenditure also went up by 53.4% from GH¢4,063,021 in 2011 to GH¢6,233,880 in 2012. The rise in Employment cost of GH¢544,165, Travelling and transport of GH¢584,675 and Administrative and General Expenses of GH¢643,691 contributed to the increase.

Financial position 1042. The financial position of the Board as at 2012 is shown in Table 88.

Table 88: Assets and Liabilities as at 31 December, 2012 2012 2011 % GH¢ GH¢ Change Non-Current 6,584,228 2,902,474 126.8 Assets Current Assets 30,341,916 26,752,896 13.4 Current Liabilities 11,857,014 11,744,864 1.0 Net Current Asset 18,484,902 15,008,032 23.2 Net Assets 25,069,130 17,910,506 40.0 Current Ratio 2.6:1 2.3:1 -

1043. Non-Current Assets went up by 126.8% from GH¢2,902,474 in 2011 to GH¢6,584,228 in 2012. The increase in Fixed Assets was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 247 due to the acquisition of motor vehicles, office equipment, furniture, fixtures and fittings in the year under review.

1044. Current Assets registered an increase of 13.4% from GH¢26,752,896 in 2011 to GH¢30,341,916 in 2012. This was as a result of an increase in the short term investment.

1045. Current Liabilities increased marginally to GH¢11,857,014 in 2012 from GH¢11,744,864 in 2011 a rise of 1.0%. The rise was attributed to increase in Accrued Expenses as at the year end.

1046. The liquidity position of the Board as measured by current ratio stood at 2.6:1 in 2012 (2011:2.3:1). This means the Board would be able to meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Under-receipting of payment by VRA- US$72,799.19 1047. Ghana Free Zones Board (GFZB) made payment of GH¢500,000.00 at an exchange rate of GH¢1.832.85: US$1.00 in May 2012 to Volta River Authority (VRA) to defray part of the dollar liabilities owed to VRA. The dollar equivalent of the GH¢500,000 at the time of payment was US$272,799.19. VRA recognized and issued receipt for US$200,000 on 10 July 2013 as acknowledgment of the GH¢500,000 leading to under recognition of US$72,799. GFZB did not send any letter to protest the understatement of the receipt to VRA as at the date of the audit on 21 July 2015.

1048. Management of Ghana Free Zones Board stands to lose an amount of US$72,799.19 if 10 July 2013 was used as the date for recognizing the payment by VRA instead of 16 May 2012 when the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 248 payment was made.

1049. We recommended that immediate effort should be taken by management to request VRA to recognize the understatement of the US$72,799.19 and offset against GFZB outstanding liabilities to VRA. Also, GFZB should prepare regular reconciliation statements with suppliers and debtors to identify any differences on account balance for immediate correction.

1050. Management responded that, they have taken note of the recommendation and a letter had been sent to VRA to correct the situation.

Absence of Sub-lease agreements on leased lands allocated to Free Zones Enterprise 1051. It came to light during the audit of the Ghana Free Zones Board that, a number of Enterprises paid the required amount on parcels of land allocated to them at the Tema Export Processing Zones but have no signed Sub-lease Agreement.

Table 90 below is the list of such companies with no signed Sub-lease Agreement. Name of Enterprise Final Premium Acres Payment Date Purchased Niche Cocoa Land B. 21/12/2011 2.60 KGM Industries 16/08/2011 4.00 Lewadis Limited 02/11/2010 4.00

1052. To forestall sanity in the Tema Export Processing Zones or

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 249 avoid possible dispute between GFZB and Free Zones Enterprises, Management was advised to ensure that Sub-lease Agreement are prepared and signed by all respective parties involved. Additionally, the Free Zones Enterprises personal files at the accounts section should regularly be updated.

1053. Management accepted our recommendation for compliance. SONGOR SALT PROJECT

Introduction 1054. This report covers the audited accounts of the Songor Salt Project for the year ended 31 December 2013.

Operational results 1055. The entity’s operations for the year 2013 ended with a deficit of GH¢821,711 as compared with a surplus of GH¢102,495 in 2012. This represent a decrease of 901.7% which resulted from increases in both operating expenditure and Administrative and Overhead Expenses. Details of the performance indicators are shown in Table 91.

Table 91: Income Statement for 2013 2013 2013 % Income GH¢ GH¢ Change Operational Income 4,818,062 4,348,841 10.8 Other Income 134,995 64,687 108.7 Total Income 4,953,058 4,413,528 12.2 Expenditure Operating Expenditure 3,668,040 2,333,141 57.2 Administrative & Overhead 2,106,729 1,977,893 6.5

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 250 Expenses Total Expenditure 5,774,769 4,311,034 34 Surplus/(Deficit) (821,711) 102,495 (901.7)

1056. Total Income increased by 12.2% from GH¢4,413,528 in 2012 to GH¢4,953,058 in 2013. The two components of total income which are operational and other income increased by 10.8% and 108.7% respectively.

1057. Total Expenditure for the year under review increased by 34% from GH¢4,311,034 in 2012 to GH¢5,774,769 in 2013. This was as a result of a 57.2% increase in operating Expenditure and a 6.5% increase in the Administrative and Overhead Expenses. Financial position 1058. Table 92 is a summary of the Projects Financial Position as at 31 December 2013.

Table 92: Assets and Liabilities as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 687,865 148,525 363.1 Currents Assets 1,918,491 1,834,623 4.6 Current Liabilities 3,471,388 1,838,883 88.8 Net Current Assets (1,552,897) (4,260) 36,353 Net Assets (865,032) 144,265.32 (699.6) Current Ratio 0.6:1 1.0:1

1059. Non-Current Assets increased by 363.1% from GH¢148,525 in 2012 to GH¢687,865 in 2013. The increase was as a result of additions to plant and machinery, motor vehicles and Furniture and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 251 Equipment.

1060. Current Assets recorded a marginal increase of 4.6% from GH¢1,834,623 in 2012 to GH¢1,918,491 in 2013. This was due to an increase in the Bank and Cash Balances of 374.1%.

1061. Current Liabilities also increased significantly by 88.8% from GH¢1,838,883 in 2012 to GH¢3,471,387 in 2013. An increase of 81.9% in Sundry Creditors and Accruals accounted for the rise.

1062. The Project’s liquidity position for the year was 0.6:1 (2012: 1.0:1). This shows that the Project will not be able to meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Non-payment of contribution to SSNIT- GH¢43,532.55 1063. We noted from our review that an amount of GH¢43,532.55 deducted as social security fund had not been paid to SSNIT as required by law. Details are shown in Table 93.

Table 93: Non-payment of contribution to SSNIT

GH¢ Opening Balance 31,399,65 Charge for the year 157,599.73 188,999.38 Payment further year 145,466.83 Closing balance 43,532.55

1064. This was as a result of management’s non-compliance with

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 252 the provisions of the SSNIT law and this may lead to the payment of penalties on the outstanding amount.

1065. We recommended that the amount deducted should be paid immediately to avoid the payment of a penalty.

1066. Management in response stated that the outstanding SSF is the second tier deduction, which is yet to be paid to a fund manager. The delay is due to management’s inability to identify a fund manager.

Outstanding Debtors – GH¢266,941.29 1067. Our audit revealed that a total amount of GH¢266,941.29 has been owed to the project since 2000. The situation was attributed to management’s inertia towards debt recovery which could impede the implementation of the projects programmes due to financial constraints. The details are shown in Table 94 below. GH¢ Date Vaccum Salt Products 11,215.44 Since 2000 Loan to Government of 248,189.85 “ Ghana Ministry of Mines 4,980.00 Since 2012 Ternoval Company 1,365.00 “ Limited High View Ventures 1,191.00 “ Total 266,941.29

If these debts were declared irrecoverable their eventual write-off would destabilize the project financially.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 253 1068. We recommended that management should take the necessary steps to collect these monies from the debtors.

Delayed remittance of withholding Tax and PAYE -GH¢211,078.91 1069. Contrary to Section 87 of Act 592, we noted that an amount of GH¢37,564.71 deducted as withholding taxes had not been paid at the time of the audit.

1070. In a related development, we observed that PAYE deductions from staff salaries over the years totaling GH¢173,514.20 were not remitted to the Commissioner of Ghana Revenue Authority.

1071. We pointed out that the disregard of the relevant provisions of Act 592 could result in the loss of tax revenues to the state. We also intimated that such acts might attract sanctions which could negatively affect the Project’s financial position.

1072. We recommended that monies withheld for tax and PAYE purposes should be paid to GRA when withheld. Also, the Project should arrange with GRA for the payment of the outstanding total amount of GH¢211,078.91without further delay.

1073. Management responded that the project has entered into settlement arrangement with the statutory bodies and monthly installments are going on steadily.

GHANA TRADE FAIR COMPANY LIMITED

Introduction 1074. This report relates to the audited accounts of the Ghana Trade Fair Company Limited for the financial year ended 31

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 254 December 2013.

Operational results 1075. Total Income for the year 2013 decreased by 14.7% from GH¢2,772,334 in 2012 to GH¢2,366,110 in 2013. The fall in income was due to reduction in operating income by 31.3%. There was other income of GH¢462,564 received from EDAIF to support the rehabilitation of Ghana International Trade Fair Centre and other preparatory activities towards the 7th ECOWAS Fair. The performance indicators for the period are shown in Table 95.

Table 95: Income Statement for 2013 2013 2012 % Income GH¢ GH¢ Changes Operating Income 1,903,546 2,772,334 (31.3) Other Income 462,564 - - Total Income 2,366,110 2,772,334 (14.7) Expenditure Operating Expenses 934,300 764,514 22.2 Admin. Expenses 677,076 1,035,647 (34.6) Staff Expenses 769,840 839,748 (8.3) Financial Charges 277,838 21,659 1,182.8 Total Expenditure 2,659,054 2,661,568 (0.1) Net (Loss)/Profit (292,944) 110,766 (364.5) 1076. Total Expenditure also decreased marginally by 0.1% from GH¢2,661,568 in 2012 to GH¢2,659,054 in 2013. This was due to a 34.6% reduction in administrative expenses. A cut down on the Directors’ remuneration and allowances accounted for the differences in administrative expenses.

1077. Financial Charges however increased significantly by 1,182.8%. Interests and finance cost of GH¢244,267 during the period

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 255 under review accounted for the increase in financial charges.

1078. The Company’s operations for the year ended with a net loss of GH¢292,944 as against a net profit of GH¢110,766 recorded in 2012.

Financial position 1079. Table 96 provides the Company’s financial position as at 31 December 2013.

Table 96: Balance Sheet as at 31 December 2013 2013 2012 % GH¢ GH¢ Changes Non-Current Assets 2,355,620 1,956,761 20.4 Current Assets 926,252 821,631 12.7 Current Liabilities 3,212,647 2,416,223 33.0 Net Assets 69,226 362,169 (80.9) Current Ratio 0.3:1 0.3:1

1080. Non-Current Assets increased by 20.4% from GH¢1,956,761 in 2012 to GH¢2,355,620 in 2013 due to purchase of additional fixed assets.

1081. Current Assets also rose by 12.7% from GH¢821,631 in 2012 to GH¢926,252 in 2013. The rise was mainly due to the increase in trade debtors and prepayments.

1082. Current Liabilities also went up by 33.0% from GH¢2,416,223 in 2012 to GH¢3,212,647 in 2013. Trade Creditors and accruals accounted for the increase.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 256 1083. The current ratio of 0.3:1 (2012:0.3:1) indicates the Company’s inability to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUE

Garnishee order on bank accounts – GH¢266,000.00 1084. Our observation revealed that an Ex-Director of the Company, Ms. Esther Ofori filed a suit against the Company for non- payment of End of Service Benefits and other claims for outstanding salaries and other benefits to the tune of GH¢466,000. The Company was able to settle GH¢200,000 leaving a balance of GH¢266,000.

1085. Further inquiry revealed that, a court has placed a garnishee order on the bank accounts of the Company for non-payment of her retirement benefits hence the Company could not transact any business with that bank accounts. 1086. We therefore advised management that a satisfactory arrangement should be made with the retired Director for settlement of her retirement benefits so as to set that bank account free for Company’s usage. 1087. Management responded that arrangement is in place with the involvement of MOTI for the settlement of the debt.

GHANA EXPORT PROMOTION AUTHORITY

Introduction 1088. This report relates to the audited financial statement of the Ghana Export Promotion Authority for the period 1 January 2012 to 31 December 2014.

Operational results 1089. Shown in Table 97 below are the performance indicators for

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 257 2014 financial year.

Table 97: Income Statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Subvention for Employees 1,170,267.47 1,161,864.19 0.7 Compensation Subvention for Goods & - 53,955.41 Services Support from EDAIF 5,543,850.88 3,010,336.77 84.2 Other Income 240,876.19 177,323.64 35.8 Support from MOTI 53,220.59 - Dividend from 4,414.16 3,694.06 19.5 Investment( HFC) Total Income 7,012,629.29 4,407,174.07 59.1 Expenditure Employees Compensation 1,213,202.96 1,181,177.31 2.7 Goods & Services 1,722,989.44 1,305,586.49 32.0 Fairs and Exhibition/ 2,464,385.69 2,451,654.98 0.5 Market Access Total Expenditure 5,400,578.09 4,938,418.78 9.4 Surplus/ Deficit 1,612,051.20 (531,244.71) (403.4) 1090. Total Income for the Authority in 2014 increased by 59.1% from GH¢4,407,174.07 in 2013 to GH¢7,012,629.29 in 2014. This was due mainly to 84.2% rise in support from Export Development Agricultural Investment Fund (EDAIF). Other Income also increased from GH¢177,323.64 in 2013 to GH¢240,876.19 in 2014.

1091. Total Expenditure increased marginally by 9.4% from GH¢4,938,418.93 in 2013 to GH¢5,400,578.09 in 2014. The increase was largely due to 32.0% increase in Goods and Services expenditure from GH¢1,305,586.49 in 2013 to GH¢1,722,989.44 in 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 258

1092. The Authority’s operational result in 2014, ended with a surplus of GH¢1,612,629.29 as against deficit of GH¢531,244.71 recorded in 2013. Financial position 1093. The Table 98 below is the balance sheet for the year ended 31 December 2014 2014 2013 % GH¢ GH¢ Change Non–Current Asset 513,069.08 247,219.26 107.5 Long Term Investment 25,652.25 21,238.09 20.8 Current Asset 1,402,364.24 92,609.89 1414.3 Current Liabilities (115,948.84) (147,981.82) (21.6) Net Current 1,286,415.40 (55,371.93) ( 2 , 423.2 ) Asset/Liabilities Net Asset 1,825,136.73 213,085.53 756.5 Current Ratio 12.1:1 0.6:1

1094. Non-Current Asset increased by 107.5% from GH¢247,219.26 in 2013 to GH¢513,069.08 due to acquisition of additional non- current assets amounting to GH¢352,285.68 in 2014.

1095. Current Assets increased significantly by 1414.3% from GH¢92,608.89 in 2013 to GH¢1,402,364.24.

1096. The increase was due to increase in cash holding position of the Authority as at 31 December 2014.

1097. The situation has increased the Net Current Asset of the authority from a negative position of GH¢55,371.93 to a positive

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 259 figure of GH¢1,286,416.40, an increase of 2,423.2%. 1098. As the result of above performance a weak liquidity ratio of 0.62:1 in 2013 rose to a strong liquidity ratio of 12:1 in 2014, putting the Authority in a good position to meet its obligations as and when they become due.

MANAGEMENT ISSUES

Payment for Service Not Rendered GH¢253,402.41 1099. Section 16(1) of Financial Administration Act (FAA) 2003, states that “Payment shall not be made for work done, goods supplied or services rendered whether under a contract or not in connection with any part of the public service, unless in addition to any other voucher or certificate that is required, the head of the government department or any other officer authorised by the head of department certifies.

1100. That the work has been performed, the goods supplied or service rendered, and that the prize charged is according to the contract or if not specified by the contract, is reasonable, or where payment is to be made before the completion of the work, delivery of the goods or rendering of the service that the payment is in accordance with the contract’’.

1101. Our examination of records disclosed that, the Authority paid an amount of GH¢253,402.41 to SIAO, the organizers of an International Arts and Handicraft Trade Show in Ouagadougou, Burkina Faso on the 26 September 2014. The payment was towards the Authority’s participation in the fair which was to start from 31 October to 9 November 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 260 1102. We further noted that the amount which was to be used to acquire a pavilion for Ghana’s stand remained unrecovered even though the fair could not come off due to the outbreak of the Ebola Epidemic.

1103. We attributed the anomaly to the Head of Accounts failure in exercising due diligence by ensuring the money is recovered from the organisers when the fair was unsuccessful. The amount which could have been used to promote other export promotion activities, the core mandate of the Authority, has been locked up.

1104. We recommended that, management should take necessary action to recover the amount paid to the fair organizers as soon as possible, failing which the paying and authorising officers who failed to pursue recovery should be surcharged with the amount.

1105. Management stated that the fair organizers, SIAO have been communicated to transfer the amount involved to GEPA account. However, the amount is yet to be received.

1106. We urged management to bring pressure to bear on the organisers to refund the amount immediately. Short Accounting for Special Imprest-GH¢82,215.69 1107. Section 45 of Financial Administration Regulation (FAR), 2004 (L.I.1802) provides that if any expenditure is made in excess of amounts actually due, the over payment shall be recovered immediately and paid into the account from which it was originally paid and the officer concerned shall report the circumstances immediately to head of department or the appropriate authority.

1108. Notwithstanding the regulation, we noted that the Authority

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 261 paid a total amount of GH¢118,594.82 as special imprest to seven officers to organise training and awareness programmes for selected farmers in the country as well as organisation of foreign fairs, but failed to ensure the officers fully accounted for monies advanced to them after the programme. As a result, an amount of GH¢82,215.69 could not be accounted for.

1109. The Authority’s inability to put in place measures that would compel imprest holders to account for imprest granted them contributed to the irregularity coupled with the failure on the part of the officers to document and promptly account for the special advance.

1110. The practice, if not discouraged, could lead to unspent amounts on imprest being locked up in individual’s pockets rather than being used in furtherance of the Authority’s programmes. We could also not authenticate whether the funds were used for the intended purpose. 1111. We recommended that the officers responsible should be called upon to account for the shortages immediately or the amount involved adjusted to their personal account. Additionally, appropriate disciplinary action should be taken against them for breach of financial discipline as stipulated in Regulation 8(1) of the FAR. Meanwhile management should institute measures that would ensure imprest holders account for their imprest immediately the programme is completed.

1112. Management stated in its response that they had notified the responsible officers to account for the imprest and appropriate measures have been put in place by management for timely

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 262 retirement of imprest.

Special Advance Payment not Accounted for GH¢275,704.74 1113. In a related development we noted that, special imprest amounting to GH¢275,704.74 granted to officers to carter for accommodation and communication whenever fair activities and programmes were organised outside Accra were also not accounted for. Included are funds transferred from the Authority’s project account to Ghana Missions in various countries toward organisation of fairs which were not accounted for.

1114. The above situation violates Regulation 288(2) of the FAR, 2004, (L.l.1802), which states that “failure to retire an imprest by due date, unless occasional by the death or incapacity of the imprest holder is a breach of financial discipline as defined in Regulation 8(1)”. Failure of the officers involved to render account for their stewardship suggests the money was not judiciously used for the purpose for which the fund was released to them.

1115. Under the circumstances, we could not vouch for validity of these payments. We could also not obtain assurance that the payments were made in the interest of the Authority or were in line with its approved plan.

1116. We attributed the anomaly to weaknesses in the internal control systems which allow officers other than accounting staff to handle huge physical cash without ensuring accountability.

1117. We recommended that, the payments should be accounted for immediately. In future, proper control should be exercised in regulating the granting of such imprest and any imprest not so

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 263 retired, should be adjusted to the personal account of the imprest holder as stipulated in Regulation 288(1) of the FAR.

1118. Management responded that, they will ensure that imprest for accommodation is properly accounted for.

MINISTRY OF ENVIRONMENT, SCIENCE AND TECHNOLOGY

BUILDING AND ROAD RESEARCH INSTITUTE

Introduction 1119. This report relates to the audited accounts of the Building and Road Research Institute of the Council for Scientific and Industrial Research (CSIR) for the year ended 31 December 2014.

Operational results 1120. The Institute’s operations for the year under review ended with a deficit of GH¢163,781. This position is a huge dip from the previous years that closed with a surplus of GH¢78,378, thus a deficit of 309%. Details of the performance indicators are shown in Table 99.

Table 99: Income statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Government Grants 8,617,934 2,132,444 304.1 Consultancy Income 457,497 186,382 145.5 Other Income 451,081 373,990 20.6 Total Income 9,526,512 2,692,816 253.8 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 264 Administrative 340,262 280,771 21.2 Expenses Employment Cost 8,617,934 1,609,884 435.3 Travelling & Transport 131,360 244,466 (46.3) Repairs & Maintenance 197,030 118,021 66.9 Financial Charges 17,145 52,347 (67.3) Depreciation 386,563 308,948 25.1 Total Expenditure 9,690,294 2,614,437 270.6 Surplus / (Deficit) (163,781) 78,378 (309)

1121. Total Income increased by 253.8% from GH¢2,692,816 in 2013 to GH¢9,526,512, in 2014. Government Grant, that forms 90% of Total Income increased by 304.1% from GH¢2,132,444 in 2013 to GH¢8,617,934 in 2014.

1122. Total Expenditure rose by 270.6% from GH¢2,614,437 in 2013 to GH¢9,690,294 in 2014. Major factors of this increment are Administrative Expenses and Employment Cost. Administrative Expenses increased by 21.2%. General Staff Salaries & Allowances which form 72.3% of Employment Cost rose by 1,084.3%.

Financial position 1123. Below is a summary of the entity’s Financial Position as at 31 December, 2014 presented in Table 100.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 265 Table 100: Assets and Liabilities as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 48,381,910 10,027,760 382.5 Current Assets 1,464,981 1,733,967 (15.5) Current Liabilities 1,483,111 1,880,646 (21.1) Net Current Assets (18,130) (146,679) (87.6) Net Assets 48,363,781 9,881,081 389.5 Current Ratio 1.0:1 0.9:1

1124. Non-Current Assets increased by 382.5% from GH¢10,027,760 in 2013 to GH¢48,381,910 in 2014. The increment was as a result of land revaluation which added up an amount of GH¢35,300,248.

1125. Current Assets however decreased by 15.5% moving from GH¢1,733,967 in 2013 to GH¢1,464,981 in 2014. The decrease resulted primarily from the 100% clearing of the inter-bank account.

1126. Current Liabilities decreased by 21.1% from GH¢1,880,646 in 2013 to GH¢1,483,111 in the year under review. The decrease resulted from a 50% decrease in Other Payable, showing a current position of GH¢419,475 as compared to GH¢838,431 in 2013.

1127. Current Ratios of 0.9:1 and 1.0:1 for 2013 and 2014 respectively indicate that the Institute cannot meet its financial obligations as and when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 266 MANAGEMENT ISSUES

Outstanding Statutory Deductions-GH¢954,107 1128. We noted that PAYE and Social Security Contribution deducted from staff salaries over the years totaling GH¢954,107.00 were not remitted to the Ghana Revenue Authority (GRA) and Social Security and National Insurance Trust (SSNIT) respectively. Details showing below: GH¢ Ghana Revenue Authority 349,164 Social Security Fund 604,943 954,107

1129. The practice of not remitting statutory deduction would deny the state the use of potential revenue and also increase the liability status of the Institute.

1130. We therefore advised management to liaise with CSIR Secretariat to clear this outstanding deduction to avoid any penalty from the two institutions.

1131. Management agreed to follow up on these outstanding statutory deductions with the government through the CSIR secretariat.

OIL PALM RESEARCH INSTITUTE, KUSI-KADE (COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH)

Introduction 1132. This report covers the audited accounts of Oil Palm Research Institute for the years ended 31 December 2013 and 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 267 Operational results 1133. The year 2014 closed with a deficit of GH¢1,065,658 as compared to the previous year’s surplus of GH¢917,809, recording a decrease of 216.1%. The performance indicators for 2014 are shown in Table 101.

Table 101: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Subvention from 7,337,830 10,688,593 (31.3) Government of Ghana Internally Generated Funds 1,077,280 983,037 9.6 Total Income 8,415,110 11,671,630 (27.9) Expenditure Personnel Emoluments 7,285,204 8,521,448 (14.5) Repairs and Maintenance 241,758 188,980 27.9 Financial Charges 7,438 12,832 (42) Travel and Transport 403,368 401,713 0.4 Administrative and General 1,543,000 1,628,848 (5.3) Expenses Total Expenses 9,480,768 10,753,821 (11.8) Surplus/(Deficit) (1,065,658) 917,809 (216.1) 1134. The Institute’s total revenue decreased by 27.9% from GH¢11,671,630 in 2013 to GH¢8,415,110 in 2014. The decrease of 31.3% in Subvention from Government of Ghana accounted for the reduction in total income.

1135. Total Expenditure for the year 2014 amounted to GH¢9,480,768 compared to GH¢10,753,821 in 2013, registering a decrease of 11.8%. A reduction of 42% in Financial Charges and 14.5% in Personnel Emoluments contributed to the decrease.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 268 Financial position 1136. The Institute’s financial position as at 31 December 2014 is summarized in Table 102.

Table 102: Statement of financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-current Assets 325,107 114,630 183.6 Current Assets 714,767 1,929,327 (63.0) Current Liabilities 398,614 337,037 18.3 Current ratio 1.8:1 5.7:1

1137. Non-Current Assets increased by 183.6% from GH¢114,630 in 2013 to GH¢325,107 in 2014. This was as a result of additions to Property, Plant and Equipment and addition to Work In Progress (WIP) at Begro’s project.

1138. Current Assets reduced by 63% from GH¢1,929,327 in 2013 to GH¢714,767 in 2014. This was as a result of decrease in stocks by GH¢89,886 and Accounts Receivables by GH¢106,401 in 2014 financial year.

1139. Current Liabilities increased by 18.3% from GH¢337,037 in 2013 to GH¢398,614 in 2014 mainly due to an increase in accounts payable.

1140. The Institute’s current ratio of 1.8:1 (2013:5.7:1) shows that the Institute will not be able to meet its short term obligations when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 269 ROOT AND TUBER CROPS PROJECT (CSIR)

Introduction 1141. This report relates to the audited accounts of the CSIR-Root and Tuber Crops Project for the financial years ended 31 December 2012, 2013 and 2014. Operational results 1142. The Project’s operations for 2014 ended with a deficit of GH¢125,350 as against a deficit of GH¢222,959 in 2013. The performance indicators are shown in Table 103.

Table 103: Income statement for the year ended 31 December 2014 Income 2014 2013 % GH¢ GH¢ Change Grants 2,425,575 2,396,233 1.2 Expenditure Employment Cost 2,454,483 2,350,815 4.4 Establishment & Admin 11,794 81,818 (85.6) Expenses Travelling & Transport 67,640 166,008 (59.3) Repairs & Maintenance 11,857 15,967 (25.7) Financial & Professional 5,151 4,584 12.4 Charges Total Expenditure 2,550,925 2,619,192 (2.6) Surplus / (Deficit) (125,350) (222,959) (43.8)

1143. Total Income increased by 1.2% from GH¢2,396,233 in 2013 to GH¢2,425,575 in 2014. The increase was mainly due to an increase in Grants for the year.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 270 1144. Total Expenditure decreased by 2.6% from GH¢2,619,192 in 2013 to GH¢2,550,925 in 2014. The decrease was due to a reduction of 85.6% in Establishment & Administration expenses and also a reduction of 59.3% in Travelling & Transport cost.

Financial position 1145. Table 104 shows a summarized balance sheet of the Project as at 31 December 2014. Table 104: Financial position as at 31 December 2014 Item 2014 2013 % GH¢ GH¢ Change Non-Current Assets 8,389 9,815 (14.5) Current Assets 103,828 238,545 (56.5) Current Liabilities 22,620 33,413 (32.3) Net Current Assets 81,208 205,132 (60.4) Net Assets 89,597 214,947 (58.3) Current Ratio 4.6:1 7.1:1

1146. Non-Current Assets decreased by 14.5% from GH¢9,815 in 2013 to GH¢8,389 in 2014. The decrease was mainly due to depreciation charge of GH¢1,426 for the year.

1147. Current Assets decreased by 56.5% from GH¢238,545 in 2013 to GH¢103,828 in 2014. The decrease was due to a 41% decrease in Bank and Cash Balances.

1148. Current Liabilities also decreased by 32.3% from GH¢33,413 in 2013 to GH¢22,620 in 2014. The decrease was due to a 32.3% decrease in Accounts payable.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 271 1149. The Project’s current ratio for the year under review stood at 4.6:1 as against 7.1:1 for 2013. This means that the project can meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Research Grant 1150. We observed that the Institute had not received any research grant from the Government since 2013 but continue to pay research staff salaries for no work done which is not a healthy situation.

1151. We recommended that the Head Office (C.S.I.R) should bring to the Government’s attention this unhealthy situation to enable research work to continue.

1152. Management responded that they had taken note of our recommendations.

SOIL RESEARCH INSTITUTE (CSIR)

Introduction 1153. This report relates to the audited accounts of the Soil Research Institute (Council for Scientific and Industrial Research) for the years ended 31 December 2012 and 2013.

Operational results 1154. Total Income grew by 66.9% from GH¢5,859,687 in 2012 to GH¢9,783,442 in 2013. This was due to increases in Subvention from Ghana government and Internally Generated Funds by 66.1% and 93.3% respectively. The performance indicators are show in Table

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 272 105. Table 105: Income Statement for the year ended 2013 2013 2012 % GH¢ GH¢ Change Subvention from GoG 9,430,643 5,677,186 66.1 Internally Generated Funds 352,799 182,501 93.3 Total Income 9,783,442 5,859,687 66.9 Recurrent Expenditure Personnel Emoluments 8,515,794 4,573,857 86.2 Repairs and Maintenance 102,021 63,204 61.4 Financial Charges 2,072 6,295 (67.1) Travelling and Transport 285,457 155,524 83.5 Administrative and 775,359 546,169 41.9 General Expenses 9,680,703 5,345,049 81.1 Excess Income over 102,739 514,638 (80.0) Expenditure

1155. Total Expenditure increased from GH¢5,345,049 in 2012 to GH¢9,680,703 in 2013, representing 81.1% rise. This was largely due to a rise in employment cost to reflect changes in the single spine salary structure from GH¢4,573,857 in 2012 to GH¢8,575,794 in 2013 and travelling and transport expenses which increased from GH¢155,524 in 2012 to GH¢285,457 in 2013.

1156. Excess Income over expenditure decreased by 80.0% from GH¢514,638 in 2012 to GH¢102,739 in 2013. Financial position 1157. Table 106 shows the financial position as at 31 December 2013

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 273 Table 106: Financial position as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 413,435 444,405 (6.9) Current Assets 528,482 1,245,885 (57.6) Current Liabilities 107,640 958,752 (88.8) Net Current Assets 420,842 287,133 46.5 Current Ratio 4.9:1 1.3:1

1158. Non-Current Assets decreased by 6.9% from GH¢444,405 in 2012 to GH¢413,435 in 2013 due to depreciation charged in the current year.

1159. Current Assets reduced by 57.6% from GH¢1,245,885 in 2012 to GH¢528,482 in 2013. A reduction in Accounts Receivable and Prepayments from GH¢741,974 in 2012 to GH¢53,963 in 2013 largely accounted for the decrease.

1160. Current Liabilities fell from GH¢958,752 in 2012 to GH¢107,640 in 2013, representing 88.8% decrease. This was mainly due to decreases in Inter-CSIR accounts of 99.7% and superannuation fund of 97.7%.

1161. The liquidity position of the Institute as measured by a current ratio of 4.9:1 in 2013 (2013: 1.3:1) indicates the Institutes ability to meet its short-term obligations when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 274 MANAGEMENT ISSUES

Office Building not insured 1162. Contrary to Insurance policy on Commercial buildings, we observed that the office building had not been insured. In case of any eventuality, especially fire outbreak, the Institute can incur huge losses without recourse to adequate compensation.

1163. We recommended that the office buildings be insured without delay.

1164. Management responded that the issue has been discussed at Management/Board Meeting for prompt action but the challenge is the premium involved. Meanwhile it has been captured in the Institute’s budget.

Title Deeds 1165. We observed that, the Institute did not have Title Deeds for the land on which the office buildings were situated. The existence of the deeds could forestall unnecessary land litigation.

1166. We recommended that immediate steps be taken to obtain title deeds for the Institute’s properties. 1167. Management responded that the lease has expired since June, 2008. CSIR Head office has formed a Committee to deal with the issue. We were also informed that part of the Land has been released to the Chiefs and the Committee is working on the payment of compensation for the remaining land.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 275 Laboratory Chemicals 1168. We observed that most of the chemicals at the stores have expired, and there were visible cracks on most of the test tubes. This is a clear indication that stores were not properly maintained. It also suggest that due diligence as to the life span of the chemicals were not done at the time of the purchase.

1169. We recommended that a board of survey should be instituted to dispose off the expired chemicals.

1170. Management responded that, the expired chemicals are being kept separately for disposal. The Scientist in-charge of the laboratories, Dr. F.M. Tetteh has been assigned to meet with Environmental Protection Agency for the exercise to be carried out.

COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH – SOIL RESEARCH INSTITUTE KWADASO – KUMASI

Introduction 1171. This report relates to the audited accounts of CSIR – Soil Research Institute Kwadaso-Kumasi for the year ended 31 December 2014. Operational results 1172. Total Income registered a decrease of 19.2% from GH¢9,783,442 in 2013 to GH¢7,900,642 in 2014. This was as a result of a decrease in Government subvention by 19.4% and Internally Generated Funds by 15.8%. The performance indicators are as shown in Table 107.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 276 Table 107: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Subvention from 7,603,572 9,430,643 (19.4) Government of Ghana Internally generated funds 297,071 352,799 (15.8) Total Income 7,900,643 9,783,442 (19.2) Expenditure Personnel emoluments 7,303,039 8,515,794 (14.2) Repairs and Maintenance 103,497 102,021 1.4 Finance Charges 986 2,072 (52.4) Travelling and Transport 432,715 285,457 51.6 Administrative and 449,806 775,359 (42) general Expenses Total Expenditure 8,290,043 9,680,703 (14.4) (Deficit)/Surplus (389,400) 102,739 (479)

1173. Expenditure incurred in 2014 totaled GH¢8,290,043 as against GH¢9,680,703 in 2013 indicating a decrease of 14.4%. Total Expenditure included Personnel Emolument which decreased by 14.2% and Finance Charges which also decreased by 52.4%.

1174. The operations of the Institute for the year under review ended with a deficit of GH¢389,400 as against a surplus of GH¢102,739 for the previous year registering a 479% decrease.

Financial position 1175. The Institute’s financial position, as at 31 December 2014 is shown in Table 108.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 277 Table 108: Statement of Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 420,867 413,435 1.8 Current Assets 243,964 528,482 (53.8) Current Liabilities 219,954 107,640 104.3 Current Ratio 1.1:1 4.9:1

1176. Non-Current Assets increased by 1.8% in 2014 due to additions to fixed assets for the year.

1177. Current Assets decreased by 53.8% to GH¢243,964 in 2014 (2013: GH¢528,482). This included stocks balance of GH¢42,685 and Debtors and other receivables balance of GH¢125,455.

1178. Current Liabilities recorded an increase of GH¢112,314 or 104.3% from the previous year’s amount of GH¢107,640 to GH¢219,954 in 2014. This was due to increase in Creditors and Accruals.

1179. The liquidity position as measured by the current ratio of 1.1:1 for 2014 and 4.9:1 for 2013 financial year shows a decline in the liquidity position. This indicates that the Institute cannot meet its short term obligations as and when they fall due.

MANAGEMENT ISSUES

Obsolete Laboratory Chemicals 1180. Regulation 1104 of the Stores Regulation 1984, requires obsolete stores to be segregated from the general stocks and be

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 278 transferred from the main stock control ledger to a subsidiary ledger (Losses and Depreciation) as soon as a decision to survey the items has been taken.

1181. It came to our notice that most of the chemicals at the store have expired and tubes used for testing have visible cracks.

1182. We recommended that the appropriate authority should be sought for the disposal of the expired or obsolete stocks and must be deleted from the stores ledger.

1183. Management stated that the expired and obsolete stock items are being handled by the Environmental Protection Agency and Zoom lion for disposal.

Insurance of Office Buildings 1184. The Insurance Law, 2006 (Act 742) Section 184 (1) and (2) requires every commercial building to be insured against hazards of collapse, fire, earthquake, storm, and flood as well as the legal liabilities of an owner or occupier of premises, in respect of loss of or damage to property, bodily injury or death by any user of the premises and third parties.

1185. We noted that the Institute office building had not been insured as required by the above mentioned law. In the absence of an insurance cover, the Institute cannot claim for damages.

1186. We recommended that the Institute should have its buildings and other asset apart from motor vehicle insured against fire, burglary and theft.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 279 1187. Management responded that the Institute has written to Insurance Companies for quotations and hope to use part of its Internally Generated fund to pay the Insurance cover.

FORESTRY RESEARCH INSTITUTE (CSIR)

Introduction 1188. This report relates to the audited accounts of the Forestry Research Institute (CSIR) for the year ended 31 December 2013.

Operational results 1189. The Institute realized a total income of GH¢9,796,119 in the year under review as compared to total income of GH¢6,440,691 recorded in 2012, representing an increase of 52.1%. This was mainly due to increase in subvention received from the Government of Ghana

1190. Presented in Table 109 is summary of Institute’s performance indicators.

Table 109: Income statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government 9,251,571 6,031,120 53.4 Grant/Subvention Other Income 544,548 409,571 33.0 Total Income 9,796,119 6,440,691 52.1 Expenditure Operating Expenditure 10,194,636 6,046,231 68.6 (Deficit)/Surplus (398,517) 394,460 (201.0)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 280 1191. Total Expenditure increased significantly by 68.6% from GH¢6,046,231 in 2012 to GH¢10,194,636 in 2013. The major items which accounted for the increase were Basic Salary which moved from GH¢1,961,036 in 2012 to GH¢5,540,464 in 2013 representing a 182.5% rise and payments of IA Factor Allowance of GH¢1,624,614 in the year under review.

1192. The Institute incurred a deficit of GH¢398,517 at the end of 2013 as compared with a surplus of GH¢394,460 in 2012, registering a fall of 201.0%.

Financial position 1193. The financial position of the Institute is presented in Table 110.

Table 110: Financial position as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 764,606 746,160 2.5 Current Assets 1,107,653 2,350,125 (52.9) Current Liabilities 483,803 1,309,312 (63.0) Net Assets 1,388,456 1,786,973 (22.3) Current Ratio 2.3:1 1.8:1

1194. The Institute’s Non-Current Assets at the close of 2013 stood at GH¢764,606 as against GH¢746,160 in 2012, showing a marginal rise of 2.5% and this was due to additions to land and building, equipment and furniture, fixtures and fittings. 1195. Current Assets reduced by 52.9% from GH¢2,350,125 in 2012 to GH¢1,107,653 in 2013. The decrease was largely due to the reduction in Accounts Receivable which dropped from GH¢1,583,600

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 281 in 2012 to GH¢350,698 in 2013 or 77.9% fall.

1196. Current Liabilities also recorded a decrease of 63.0% from GH¢1,309,312 in 2012 to GH¢483,803 in 2013. A decrease of 92.5% in Internal Revenue Service payable and 99.1% in FORIG Staff Fund Loan accounted for the difference.

1197. The Institute’s liquidity position as depicted by its current ratio of 2.3:1 in 2013 as compare to 1.8:1 in 2012 appears favourable, this indicates the Institute’s ability to meet short-term obligations when they fall due.

MANAGEMENT ISSUES

Failure to retire Accountable Imprest – GH¢22,563 1198. Contrary to Regulation 288 (1) of the FAR, we noted that total amount of GH¢22,563 granted to officials of the Institute for various programmes remained unaccounted for at the end of the period.

1199. We could not determine whether the funds were used for the intended purposes or not.

1200. We therefore recommended that the officers involved should be made to account for the imprest or the amount involved should be adjusted to a personal advance accounts in their names. 1201. Management said, they have decided to transfer all unretired imprest balances standing in the name of staff to their personal accounts

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 282 ANIMAL RESEARCH INSTITUTE (CSIR)

Introduction 1202. This report relates to the audited accounts of the Animal Research Institute – CSIR for the financial year ended 31December 2014.

Operational results 1203. The entity’s Operations for the year under review ended with a deficit of GH¢483,875 as compared to 2013 surplus of GH¢512,567. This downward drop is significant as it resulted in a 194.4% deficit. The details of the performance indicators are shown in Table 111.

Table 111: Income Statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Recurrent Grant 7,129,902 9,606,173 (25.8) Other Income 483,853 212,570 127.6 Total Income 7,613,755 9,818,743 (22.5) Expenditure Establishment and Admin. 572,589 408,362 40.2 Expenses Employment Cost 7,177,510 8,545,722 (16) Travelling and Transport 164,757 165,603 (0.5) Repairs and Maintenance 76,418 70,018 9.1 Financial & Professional 8,663 6,706 29.2 Charges Depreciation Charges 97,693 109,763 (11) Total Expenditure 8,097,630 9,306,174 (13) Surplus / (Deficit) (483,875) 512,567 (194.4)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 283

1204. Total Income decreased by 22.5% from GH¢9,818,743 in 2013 to GH¢7,613,755 in 2014.

1205. Recurrent Grant which constituted 93.6% of the total income dropped by 25.8%.

1206. Total Expenditure reduced by 13% from GH¢9,306,176 in 2013 to GH¢8,091,630 in 2014. This resulted from a decrease in Employment Cost, of 16%.

Financial position 1207. Below is a summary of the entity’s Financial Position as at 31st December, 2014.

Total 112: Assets and Liabilities as at 31st December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 749,080 407,696 83.7 Current Assets 2,099,843 2,092,754 0.3 Current Liabilities 1,184,866 1,545,681 (23.3) Net Current Assets 914,977 547,073 67.2 Net Assets 1,664,057 954,769 74 Current Ratio 1.8:1 1.4:1

1208. Non-Current Assets increased by 83.7% from GH¢407,696 in 2013 to GH¢749,080 in 2014. Major factor of this increment resulted from a 444.8% increase in Construction Works which moved from GH¢57,215 in 2013 to GH¢311,683 in 2014. 1209. Current Assets made a marginal increase of 0.3, moving from GH¢2,092,754 in 2013 to GH¢2,099,843 in 2014. Increase in inventory

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 284 accounted for the rise.

1210. Current Liabilities decreased by 23.3% from GH¢1,545,681 in 2013 to GH¢1,184,866 in 2014. Accounts payable which forms bulk of the current liabilities reduces by 23.2%

1211. The liquidity position of the Institute stood at 1.8:1 in the current year as against 1.4:1 in 2013. Though the liquidity position improved slightly, it was still unfavourable and needs more attention so that the Institute will be able to meet its short term obligations when they fall due. FOOD RESEARCH INSTITUTE (C SIR) Introduction 1212. This report relates to the audited financial statements of CSIR – Food Research Institute for the period of January 2013 to 31 December 2014.

Operational results 1213. A deficit of GH¢904,244.00 was recorded in 2014 as compared to a surplus of GH¢385,955.00 in 2013 representing 334.3% decline in performance which could be attributed to decrease in Recurrent Grant received. Performance details are shown in the Table 113.

Table 113: Income statement for 2014 2014 2013 % Income GH¢ GH¢ Change Recurrent Grant 6,420,890 8,461,582 (24.1) Other Income 302,207 128,950 134.4 Total Income 6,723,097 8,590,532 (21.7) Expenditure General and Administrative 874,633 586,491 49.1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 285 Expenses Employment Cost 6,512,750 7,432,395 (12.4) Repairs and Maintenance 185,314 138,342 34.0 Travel and Transport 54,644 47,349 15.4 Total Expenditure 7,627,341 8,204,577 (7.0) Surplus/(Deficit) (904,244) 385,955 (334.3) 1214. Total Income decreased by 21.7% from GH¢8,590,532 in 2013 to GH¢6,723,097 in 2014. The decrease was as a result of 24.1% decrease in Recurrent Grant. Other Income on the other hand increased by 134.4% from GH¢128,950 in 2013 to GH¢302,207 in 2014.

1215. Total Expenditure also decreased by 7.0% from GH¢8,204,577 in 2013 to GH¢7,627,341.00 in 2014. The decrease in total expenditure could be attributed to 12.4% decrease in Employment cost from GH¢7,432,395 in 2013 to GH¢6,512,750 in 2014.

Financial position 1216. The analysis of the Financial Position of CSIR – Food Research Institute for 2014 and its comparative figures for 2013 are shown in the Table 114.

Table 114: Balance Sheet as at 31 December 2014. 2014 2013 % GH¢ GH¢ Change Non-Current Assets 1,218,569 1,257,559 (3.1) Current Assets 1,294,080 2,001,666 (35.3) Current Liabilities 555,857 401,183 38.6 Net Current Assets 738,223 1,600,483 (53.9) Net Assets 1,956,792 2,858.042 (31.5) Current Ratio 2.3:1 5.0:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 286 1217. Non-Current Assets decreased by 3.1% from GH¢1,257,559 in 2013 to GH¢1,218,569 in 2014. The reduction was due to depreciation charged for the year. 1218. Current Assets dropped significantly from GH¢2,001,666.00 in 2013 to GH¢1,294,080.00 in 2014 representing a 35.3% decrease. This was mainly caused by 44.9% and 38.9% decrease in Account Receivable and Bank and Cash Balances respectively.

1219. Current Liabilities rose by 38.6% from GH¢401,183 in 2013 to GH¢555,857 in 2014. This was as a result of 57.4% increase in Accounts payable from GH¢269,404 in 2013 to GH¢424,078 in 2014.

1220. The Liquidity position of the Institute as measured by Current Ratio, declined from 5.0:1 in 2013 to 2.3:1 in 2014. This implies that the ability of the institute to meet its short-term obligations as and when they fall due is declining.

MANAGEMENT ISSUES

Salary Administration

Delay in payment of PAYE and Social Security deductions- GH¢75,377.56 and GH¢28,500.61 1221. Contrary to Section 87 (1) of the Internal Revenue Act 2000 (Act 592) as amended and National Pensions Act 2008 (Act 766), we noticed that P.A.Y.E deduction of GH¢75,377.56 and Social Security deductions of GH¢28,500.61 which were outstanding before the Controller and Accountant-General Department took over the preparation of the Payroll still remained unpaid to the appropriate authorities. Consequently, the State was deprived of the much needed revenue for development programmes.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 287 1222. We recommended that efforts should be made to ascertain the individual details of these outstanding amounts with the view of paying these to the appropriate authorities without further delay.

Failure to Emboss Assets and update Fixed Assets 1223. Our audit revealed that some fixed assets belonging to the Food Research Institute were not tagged and most of these were those acquired in 2014. There were also instances where two or three different fixed assets were given similar identification numbers.

1224. A fixed assets register provided for our inspection did not have details of most fixed assets physically identified. These were in contravention to Regulation (1513) of the Store Regulation 1984 and regulation 2(n) of FAR 2004 (L.1.1802). This arose because the Institute is yet to constitute an estates unit to conduct proper labeling of the assets. Also the accounts department has delayed in updating the Fixed Assets Register. This could lead to difficulty in inventory taking, creating room for diversion of assets and/or misuse.

1225. We recommended that relabeling of all fixed assets of the institute be conducted. The fixed assets register should also be updated to include all assets belonging to the Institute.

1226. According to management, the process of labeling of all fixed assets has been started with the formation of a three man team to identify all fixed assets within the institute which were not labeled. All these assets will be labeled before the end of 2015. Management has now agreed that fixed assets should be labeled as and when they are purchased and or installed

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 288 Account Receivables - Inaccurate sales records 1227. Our audit revealed that sampled products given to companies such as Melcom Stores, Q and O Company in Takoradi, Owura Friends company also in Takoradi among others did not reflect in the books of the institute contrary to Regulation 1 of FAR 2004 (L.I.1802). This was due to lack of proper system of recording sampled product for testing the market.

1228. Improper tracking of such product could result in the companies not accounting for the proceeds accurately from such sales.

1229. We recommended that proper procedures should be put in place to ensure that all such sales made, be it cash or credit, are properly recorded and accounted for.

1230. According to management, the Commercialization Division has been mandated to copy all invoices concerning credit sales to the Accounts Division for proper documentation.

Inaccurate stock value 1231. For purposes of presenting accurately the results and total assets of the institute, relevant inclusions should be made of all assets both non-current and current, including stocks for sales. 1232. Our examinations revealed that year end stock did not include stocks of finished products produced by the institute. Bin cards meant for recording stock items did not have values attached to them and were kept at the accounts office instead of the respective store-houses as is appropriate.

1233. This might be due to the institute not being aware of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 289 essence of including all stock items in the closing stock figure. 1234. We recommended that all stock items of the institute should be valued at year end, and the correct amounts reflected in the statement of accounts. Bin cards should also be kept at the stores for effective recording of stocks.

1235. In response, management said the Accounts Division has taken over the finished goods store from the Commercialization Division for proper recording of stocks. Meanwhile, the storekeeper has been advised to put all bin cards in the bins containing the items.

SCIENCE AND TECHNOLOGY POLICY RESEARCH INSTITUTE (C.S.I.R)

Introduction 1236. This report covers the audited financial statements of the Science and Technology Policy Research Institute (C.S.I.R) for the year ended 31 December 2013.

Operational results 1237. Shown in Table 115 below is a summary of the Institute’s performance indicators. 2013 2012 % GH¢ GH¢ Change Government Subvention 2,475,949 1,235,087 100.4 Other Income 1,184,485 756,110 56.6 Total Income 3,660,434 1,991,197 83.8 Compensation of 2,130,619 883,893 141.0 Employees Goods and Services 1,273,383 912,614 39.5

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 290 Depreciation 63,061 49,557 27.2 Audit fees 5,930 4,388 35.1 Total Expenditure 3,472,993 1,850,452 87.6 Surplus for the year 187,441 140,745 33.2

1238. The Institute realized a Total Income of GH¢3,660,434 in 2013, representing an increase of 83.8% over the 2012 figure of GH¢1,991,197. The rise in Total Income was mainly due to a 100.4% increase in Government Subvention and 56.6% increase in Other Income.

1239. Total Expenditure also increased by 87.6% from GH¢1,850,452 in 2012 to GH¢3,472,993 in 2013. The rise was mainly due to an increase in compensation of employees from GH¢883,893 in 2012 to GH¢2,130,619 in 2013. 1240. The Institute realized a surplus of GH¢5187,441 at the end of 2013 as compared with GH¢140,745 in 2012, registering a rise of 33.2%

Financial position 1241. The statement of financial position of the Institute is presented in the Table. 2013 2012 % GH¢ GH¢ Change Non-Current Assets 457,080 211,870 115.7 Current Assets 969,620 1,047,210 (7.4) Current Liabilities 976,937 988,131 (1.1) Net Current Assets (7,317) 59,079 (112.4) Net Assets 449,763 270,949 65.9 Current Ratio 0.9:1 1.1:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 291 1242. Non-Current Assets of the Institute increased from GH¢211,870 in 2012 to GH¢457,080 in 2013, a rise of 115.7%. The increase was due to the acquisition of fixed assets.

1243. Current Assets on the other hand reduced by 7.4% from GH¢1,047,210 in 2012 to GH¢969,620 in 2013. The fall was due to reduction cash/bank balances.

1244. Current Liabilities fell from GH¢988,131 in 2012 to GH¢976,937 in 2013 due to a decline in Sundry Creditors and accruals from GH¢414,257 in 2012 to GH¢249,142 in 2013. 1245. The Institute’s liquidity ratio at the year-end was 0.9:1 (2012:1.05:1). This shows the Institute’s inabilities to pay its short term debts when they are due.

PLANT GENETIC RESOURCES RESEARCH INSTITUTE (CSIR)

Introduction 1246. This report relates to the audited accounts of the Plant Genetic Resources Research Institute (CSIR) for the financial year ended 31 December 2013.

Operational results 1247. The operations of the Institute for the year under review ended with a deficit of GH¢221,188 as compared to a surplus of GH¢140,767 in 2012, representing a decrease of 257.1%. Performance indicators are shown in Table 116.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 292 Table 116: Income Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Government Subvention 827,005 2,764,910 (70.1) Other Income 79,739 74,837 6.6 Total Income 906,744 2,839,747 (68.1) Expenditure Compensation of Employees 652,357 2,254,595 (71.1) Goods and Services 475,575 444,385 7.0 Total Expenditure 1,127,932 2,698,980 (58.2) Surplus/(Deficit) (221,188) 140,767 (257.1) 1248. Total Income decreased by 68.1% from GH¢2,839,747 in 2012 to GH¢906,744 in 2013. The decrease was mainly due to a 70.1% decreased in Government Subvention.

1249. Total Expenditure decreased by 58.2% from GH¢2,698,980 in 2012 to GH¢1,127,932 in 2013. The reduction was mainly due to a 71.1% decrease in compensation of employees. Financial position 1250. Table 117 shows a summarized balance sheet of the Institute as at 31 December 2013.

Table 117: Financial Position as at 31 December 2013 2013 2012 % Item GH¢ GH¢ Change Non-Current Assets 301,382 358,765 (16) Current Assets 239,058 453,345 (47.3) Current Liabilities 88,821 121,816 (27.1) Net Current Assets 150,237 331,529 (54.7) Net Assets 451,619 690,294 (34.6) Current Ratio 2.7:1 3.7:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 293 1251. Non-Current Assets decreased by 16% from GH¢358,765 in 2012 to GH¢301,382 in 2013. The decrease was mainly due to depreciation charges.

1252. Current Assets decreased by 47.3% from GH¢453,345 in 2012 to GH¢239,058 in 2013. This was mainly due to a reduction in Debtors and Prepayments.

1253. Current Liabilities also decreased by 27.1% from GH¢121,816 in 2012 to GH¢88,821 in 2013. This was as result of a reduction in creditors and accruals.

1254. The liquidity position as indicated by the current ratio of 2.7:1 (3.7:1, 2012) shows that the Institute can meet its short term obligations as and when they fall due.

INSTITUTE FOR SCIENTIFIC AND TECHNOLOGICAL INFORMATION (CSIR)

Introduction 1255. This report relates to the audited accounts of the CSIR- Institute for Scientific and Technological Information for the period 1January 2009 to 31 December 2013.

Operational results 1256. Total Income for the year under review amounted to GH¢623,272 as against GH¢1,889,935 recorded in 2012, a decrease of GH¢1,266,663 or 67.0%. The decrease was mainly due to a 67.2% reduction in grant and subvention for the year and a 64.1% reduction in Other Income. Shown in Table 118 are the performance indicators.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 294 Table 118: Income Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Grant and Subvention 586,966 1,788,686 (67.2) Other Income 36,307 101,249 (64.1) Total Income 623,272 1,889,935 (67.0) Expenditure Personal Emolument/Other 295,159 1,530,679 (80.7) Expenses Travelling and 88,377 80,734 9.5 Accommodation General Administrative 197,442 198,097 (0.3) Expenses Repairs and Maintenance 41,167 4.630 789.1 Depreciation 72,448 82,441 (12.1) Total Expenditure 694,594 1,896,581 (63.4) (Deficit)/Surplus (71,322) (6,646) 973.2

1257. Total Expenditure for the year 2013, decreased by 63.4% from GH¢1,896,581 in 2012 to GH¢694,594 in 2013. This was due to the transfer of the payroll function to the Controller and Accountant- General’s Department during 2013 hence the reduction in grant and subvention.

1258. The Institute registered a significant increase in deficit by 973.2% from a GH¢6,646 deficit recorded in 2012 to GH¢71,322 in 2013. Financial position 1259. The Institute’s financial position as at 31 December 2013 is shown in Table 119.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 295 Table 119: Financial Position as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 213,833 209,986 1.8 Current Assets 122,199 131,607 (7.1) Current Liabilities 156,695 90,934 72.3 Net Assets 179,337 250,658 (28.5) Current Ratio 0.8:1 1.4:1

1260. The Institute’s non-current assets registered GH¢213,833 in 2013 compared with GH¢209,986 in 2012, a marginal growth of 1.8%. This was due to the acquisition of office equipment and motor cycles and vehicles.

1261. Current Assets decreased by 7.1% from GH¢131,607 in 2012 to GH¢122.199 in 2013. The decrease was mainly due to a 58.8% decrease in bank and cash balances from GH¢47,113 in 2012 to GH¢19,397 in 2013.

1262. Current Liabilities, however rose by 72.3% from GH¢90,934 in 2012 to GH¢156,695 in 2013, Inter Institute Credit balances and other credit balances accounted for the increase.

1263. The Institute’s liquidity position as at the end of 2013 was 0.8:1 as against 1.4:1 recorded in 2012. This unhealthy liquidity ratio shows that the Institute will not be able to meet its short term obligations when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 296 ENVIRONMENTAL PROTECTION AGENCY

Introduction 1264. This report relates to the audited accounts of Environmental Protection Agency for the year ended 31 December 2014.

Operational results 1265. The Agency’s income surplus for the year under review amounted to GH¢583,096 as against GH¢1,402,449 recorded in 2013.

1266. Presented in Table 110 are the operational results for the agency.

Table 120: income statement for the year ended 31 December 2014 2014 2013 % Income GH¢ GH¢ Change Government Subvention 5,514,185 5,121,839 7.7 Grants 3,102,657 2,251,512 37.8 Internally Generated Fund 10,576,287 7,963,606 32.8 SBS-NREG Fund 381,585 - 100.0 Other Income 1,020,821 667,719 52.9 Total Income 20,595,535 16,004,676 28.7 Expenditure Personnel Emoluments 6,600,953 5,893,871 12.0 Service Activities 6,548,495 4,372,410 49.8 General & Admin. Expenses 6,815,784 4,271,810 59.6 Financial & Professional 87,207 64,136 36.0 Charges Total Expenditure 20,052,439 14,602,227 37.3 Excess of Income over 543,096 1,402,449 (61.3) Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 297 1267. The total revenue increased from GH¢16,004,676 in 2013 to GH¢20,595,535 in 2014. This showed an increase of GH¢4,590,859 representing 28.7%. This increase was as a result of 32.8% rise in Internally Generated Funds by GH¢2,612,681.

1268. There were significant increases in various expenditure headings however; the major increase was in personnel emoluments. This increased by GH¢707,082 which represented a percentage increase of 12%.

Financial position 1269. Table 121 .shows the financial position of the Agency for the year ended 31 December 2014.

Table 121: Financial Position as at 31 December 2014 2014 2013 % Item GH¢ GH¢ Change Non-Current Assets 37,164,316 28,872,178 28.7 Current Assets 1,973,994 1,982,102 (0.4) Current Liabilities 51,000 43,450 17.4 Net Assets 39,087,310 30,810,830 26.9 Current Ratio 38.7:1 45.6:1

1270. The Non-Current Assets of the agency increased from GH¢28,872,178 in 2013 to GH¢37,164,316 in 2014. This represent 28.7% increase; the increase was attributed to additional assets purchased during the year totaling GH¢5,887,173.

1271. Current Assets Decrease by 0.4% from GH¢1,982,102 in 2013 to GH¢1,973,994 in 2014. This was mainly due to a decrease in the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 298 agency’s bank balances.

1272. Current Liabilities on the other hand registered an increase of 17.4% from GH¢43,450 in 2013 to GH¢51,000 in 2014. The increase was attributed to a rise in Audit fees and Audit expenses.

1273. The liquidity position of the agency as measured by current ratio however decreased from 45.6:1 in 2013 to 38.7:1 in 2014. In spite of this drop, the agency have enough funds to manage its short term liabilities as and when they fall due.

MANAGEMENT ISSUES Laboratory 1274. A well-equipped and manned laboratory is an essential resource to the performance of EPA duties, we noted during our audit visit to the regional and district offices that most of the laboratories were either not properly equipped or lacked a laboratory technician to operate them. The following were the conditions of the labs we visited. Regional/District Laboratory Laboratory Materials Office Technician Cape Coast Completed Nil No reagents Sekondi Not Nil Nil Completed Tarkwa Nil Nil Nil Kumasi Completed Nil No reagents Koforidua Non Nil Nil completed Ho Completed Nil No reagents

1275. We observed that none of the laboratories at the regions and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 299 district visited were functioning. In addition, the noise meters, air sampler and portable labs in almost all the offices were not working.

1276. We recommended that efforts should be made to ensure that the laboratories at all the offices are fully equipped and properly manned to ensure that the agency carries out its mandate in a more efficient manner. 1277. Management noted the recommendation and indicated that three of the laboratories are being upgraded. These are Head office, Takoradi and Tema. The rest of the laboratories shall also be equipped with the required logistics and personnel to provide the relevant data at the regional level.

NATIONAL ENVIRONMENTAL FUND (EPA)

Introduction 1278. This report covers the audited accounts of the Environmental Protection Agency - National Environment Fund for the year ended 31 December 2014.

Operational results 1279. The fund made a surplus of GH¢14,168,222 as against GH¢8,591,528 recorded in 2013. This represents an increase of 64.91%. Details of the National Environmental Funds performance for 2014 are shown in Table 122.

Table 122: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Income from Levies 28,590,438 19,362,005 47.7 Other Income 4,448,796 3,986,318 11.6

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 300 Total Income 33,039,234 23,348,323 41.5 Expenditure Monitoring and Investigation 1,403,191 1,473,796 (4.8) Environmental Education 820,256 1,234,994 (33.6) Human Resources 662,540 924,480 (28.3) Development Processing and Management 10,576,287 7,963,606 32.80 Charges Administrative and other 5,408,738 3,159,919 71.2 Expenses Total Expenditure 18,871,012 14,756,795 27.9 Surplus (Net Income) 14,168,222 8,591,528 64.91

1280. The Fund’s major sources of Income in 2014 were from EIA/Exploration permit, Chemical Clearance and Pesticides Registration. Total Income for the year increased by 41.5% from GH¢23,348,323 in 2013 to GH¢33,039,234 in 2014.

1281. Total Expenditure recorded a 27.9% increase from GH¢14,756,795 in 2013 to GH¢18,871,012 in 2014. This was due to a 32.8% increase in processing and management charges from GH¢7,963,606 in 2013 to GH¢10,576,287 in 2014.

Financial position 1282. Table 123 provides the financial position of the fund as at 31 December 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 301 2014 2013 % GH¢ GH¢ Change Non-Current Assets 16,308,085 8,649,218 88.6 Current Asset 26,340,401 20,125,804 30.9 Current Liabilities 25,922 320,681 (91.9) Net Current Assets 26,314,478 19,805,123 32.8 Net Assets 42,622,563 28,454,341 49.8 Current Ratio 1,016.1:1 62.8:1 -

1283. Fixed Assets rose to GH¢16,308,085 in 2014 from GH¢8,649,218 in 2013, representing a rise of 88.6%. The rise was due to addition to non-current assets and work-in-progress.

1284. Current Assets of the fund registered a growth of 30.9% from GH¢20,125,804 in 2013 to GH¢26,340,401 in 2014. The increase resulted from a significant rise in bank balance and investment.

1285. Current Liabilities decreased by 91.9% from GH¢320,681 in 2013 to GH¢25,922 in 2014. Reduction in bank overdraft accounted for the decrease.

1286. Liquidity status as measured by a current ratio of 1,016.1:1 (2013:62.8:1) puts the fund in a favourable position to meet its short- term debts whenever they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 302 COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH-CROPS RESEARCH INSTITUTE MIDA PROJECT (BPA-1101103-09)

Introduction 1287. This report relates to audited accounts of Crops Research Institute, MIDA Project (NPA-1101103-09) for the year ended 31 December 2011.

Operational results 1288. The Institute’s operations for the year under review ended with a deficit of GH¢141,650 compared with a 2010 surplus of GH¢303,563, representing a decrease in surplus of 146.7%. The performance indicators are shown in the Table below:

Table 124: Income statement for 2011 Revenue 2011 2010 % GH¢ GH¢ Charge Training Fees 46,800 959,850 (95.1) Finance Income 34,191 27,297 25.3 Total Revenue 80,991 987,147 (91.8) Expenditure Direct Training Expenses 174,516 482,094 (63.8) Administrative & General 47,655 200,862 (76.3) Expenses Finance Cost 470 628 (25.2) Total Expenditure 222,641 683,584 (67.4) Net (Deficit)/Surplus (141,650) 303,563 (146.7) 1289. Total Income for the year stood at GH¢80,991 as against GH¢987,147 during the 2010 financial year. This represented a 91.8% decrease from the previous year. The decrease in income of 91.8%

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 303 was mainly due to a 95.1% decrease in training fees from GH¢959,850 in 2010 to GH¢46,800 in 2011.

1290. Total Expenditure reduced from GH¢683,584 in 2010 to GH¢222,641 in 2011, representing 67.4%. The decrease in total expenditure was mainly due to a 63.8% decrease in direct training expenses and 76.3% decrease in administrative and general expenses during the period under review.

Financial position 1291. The Table below shows a summary of the Institute’s financial position as at the end of the year reviewed.

Table 125: Financial Position as at 31 December 2011 2011 2010 % GH¢ GH¢ Change Non-Current Assets 21,150 23,401 (9.6) Current Assets 371,532 702,706 (47.1) Current Liabilities 143,211 334,986 (57.2) Current Ratio 2.6:1 2.1:1

1292. Non-Current Assets decreased by 9.6% or GH¢2,251 to GH¢21,150 in 2011 as against the 2010 amount of GH¢23,401. The decrease was due to depreciation charge for the year. 1293. Current Assets reduced by 47.1% from GH¢702,706 in 2010 to GH¢371,532 in 2011. This was mainly due to GH¢318,753 decrease in cash equivalent representing 75.9%.

1294. Current Liabilities recorded a decrease of GH¢191,775 from GH¢334,986 in 2010 to GH¢143,211 in 2011 representing 57.2%.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 304

1295. The liquidity position as depicted by a current ratio of 2.6:1 (2010: 2.1:1) shows that the Institute can meet its short-term obligations when they fall due.

MANAGEMENT ISSUE

Non-payment of Withholding Tax 1296. Contrary to the Internal Revenue Act 2000 (Act 592), we observed that withholding taxes totaling GH¢4,839.06 were not deducted from allowances paid to project staff who were engaged in the training exercise. Below is a summary of the withholding tax:

Year Net Taxable Amount Tax GH¢ GH¢ 2009 51,855.28 2,592.76 2010 11,370.00 568.50 2011 33,556.00 1,677.80 Total 96,781.28 4,839.06

1297. The Institute may be charged with penalty in addition to the withholding taxes not deducted.

1298. We drew management’s attention that section 87 of the Internal Revenue Service Act 592 requires withholding tax agents to make payment of taxes withheld to the Commissioner of DTRD within 15 days after the deductions.

1299. We recommended that the Institute must collect the tax from the project staff and pay to the DTRD.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 305

1300. Management accepted our recommendation.

MINISTRY OF HEALTH GHANA AIDS COMMISSION

Introduction 1301. This report relates to the audited accounts of the Ghana Aids Commission (GAC) for the financial year ended 31 December, 2013.

Operational results 1302. Operations for the year ended with a surplus of US$672,420 in 2013 as against a surplus of US$1,770,230 in 2012, representing a 62.0% decline. Presented in Table 126 are the performance indicators for the period.

Table 126: Income statement for 2013 2013 2012 % US$ US$ Change Receipts from Funding 3,226,820 2,983,372 8.2 Partners (US/EU/Multilateral) Government of Ghana (GoG) 9,604,443 9,212,770 4.3 Counterpart Funds Other Income 135,128 717,542 (81.2) Total Income 12,966,391 12,913,684 0.4 Expenditure Operating & Project 5,392,528 5,592,996 (3.6) Management Costs Non-Expendable Equipment 381,478 123,091 209.9 (PPE)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 306 Disbursement to Sub-Projects 6,519,965 5,427,367 20.1 Total Expenditure 12,293,971 11,143,454 10.3 Excess Income over Expend. 672,420 1,770,230 (62.0)

1303. Total Income increased marginally by 0.4% from US$ 12,913,684in 2012 to US$ 12,966,391 in 2013. Included in Total Income are Receipts from Funding Partners which increased by 8.2% from US$2,983,372 in 2012 to US$3,226,820 in 2013. Government of Ghana Counterpart Funds released to the Commission also increased by 4.3% from US$9,212,770 in 2012 to US$9,604,443 in 2013.

1304. Total Expenditure increased by 10.3% to US$12,293,971 in 2013 from US$11,143,454 in 2012. The increment was mainly as a result of a 209.9% increase in Non-Expendable Equipment (PPE) from US$123,091 in 2012 to US$381,478 in 2013.

Financial position 1305. Table 127 shows the financial position of the Commission as at 31 December, 2013.

Table 127: Financial Position as at 31 December 2013 2013 2012 % US$ US$ Change Current Assets 5,244,260 4,663,799 12.4 Current Liabilities 38,092 74,254 (48.7) Net Current Assets 5,206,168 4,589,545 13.4 Current Ratio 137.7:1 62.8:1

1306. Current Assets which comprised Bank Balances, increased by 12.4% from US$4,663,799 in 2012 to US$5,244,260 in 2013. This was mainly due to increases in bank balances of GoG Project Account

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 307 and Global Fund R8 (US$).

1307. Current Liabilities, however, decreased by 48.7% from US$74,254 in 2012 to US$38,092 in 2013. The decrease was as a result of reduction in Accounts Payable and Accruals.

1308. The Commission’s liquidity position as indicated by its current ratio for the period 137.7:1(2012: 62.8:1) shows the Commission’s ability to meet its short-term obligations as and when they fall due.

GHANA AIDS COMMISSION – GLOBAL FUND ROUND 8

Introduction 1309. This report relates to the audited accounts of the Ghana Aids Commission – Global Fund Round 8 (GFR8) for the financial year ended 31 December, 2013.

Operational results 1310. Operations for the year ended with a surplus of US$431,335 in 2013 as against a surplus of US$413,219 in 2012, representing a 4.4% rise. Presented in Table 128 are the performance indicators for the period.

Table 128: Income statement for the year ended 2013 2013 2012 % US$ US$ Change Receipts from Funding 2,659,392 2,397,617 10.9 Partners Other Income 58,509 11,777 396.8 Total Income 2,717,901 2,409,394 12.8

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 308 Expenditure Operating & Project 794,755 1,267,632 (37.3) Management Costs (HQ) Non-Expendable 48,551 2,381 1,939.1 Equipment (PPE) Disbursement to Sub- 1,443,260 726,162 98.8 Projects Total Expenditure 2,286,566 1,996,175 14.5 Excess Income over 431,335 413,219 4.4 Expenditure

1311. Total Income which comprised of receipts from Funding Partners and Other Income increased by 12.8% from US$2,409,394 in 2012 to US$2,717,901 in 2013. This was due to 396.8% increment in Other Income.

1312. Total Expenditure also increased to US$2,286,566 in 2013 from US$1,996,175 in 2012, representing a 14.5% rise. The increase was mainly as a result of 1,939.1% increment in Non-Expendable Equipment from US$2,381 in 2012 to US$48,551 in 2013. Financial position 1313. Table 129 shows the financial position of the Commission as at 31 December, 2013.

Table 129: Financial Position as at December 2013 2013 2012 % US$ US$ Change Current Assets 2,297,185 1,878,200 22.3 Current Liabilities 20,884 8,381 149.2 Net Current Assets 2,276,301 1,869,819 21.7 Current Ratio 110.0:1 224.1:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 309 1314. Current Assets increased by 22.3% from US$1,878,200 in 2012 to US$2,297,185 in 2013. This was mainly due to 132.7% increase in bank balances.

1315. Current Liabilities also increased by 149.2 % from US$8,381 in 2012 to US$20,884 in 2013. The increase was as a result of additions to Accounts Payable and Accruals.

1316. The Commission’s liquidity position as indicated by its current ratio for the period 110.0:1(2012: 224.1:1) shows that although the Commission’s current ratio declined it still has the ability to meet its short-term obligations as and when they fall due.

NATIONAL HEALTH INSURANCE AUTHORITY

Introduction 1317. This report relates to the audited Financial Statement of the National Health Insurance Authority (NHIA) for the period January 2012 to 31 December 2013.

Operational results 1318. The Authority recorded a deficit of GH¢126,218,216 in 2013 as against a deficit of GH¢33,802,175 in 2012. This represented 273.4% decrease in performance over the period. The operational performance for the year 2013 is detailed in Table 130.

Table 130: Income statement for 2012 and 2013 Income 2013 2012 % GH¢ GH¢ Charge Levies Income 830,685,740 715,125,758 16.2

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 310 Investment Income 42,256,496 30,439,077 38.8 IDA Funding 11,469,078 11,386,048 0.7 Premium Income 30,579,150 29,887,642 2.3 Other Income 1,203,201 327,182 276.0 Total Income 916,220,665 787,165,707 16.4 Expenditure Direct Support to 814,987,278 665,083,196 22.5 Schemes Support to Partner Inst. 31,113,125 74,789,318 (58.4) Expenditure on IDA 7,032,596 8,867,647 (20.7) Project General & Admin 150,913,122 61,850,933 114 Expenses Biometric Expenditure 38,392,760 10,376,788 270 Total Expenditure 1,042,438,881 820,967,882 27 Deficit 126,218,216 33,802,175 273.4

1319. Total Income increased from GH¢787,165,707 in 2012 to GH¢916,220,665 in 2013, representing a rise of 16.4%. The increase was as a result of increases in all the revenue items with other income, investment income and levies income being the major contributors.

1320. Total Expenditure rose by 27% from GH¢820,967,882 in 2012 to GH¢1,042,438,881 in 2013. The increase was due to 270%, 144% and 22.5% increase in Biometric Expenses, General & Administrative Expenses and Direct Support to Schemes operations respectively during the period.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 311 Financial position 1321. Table 131 show the financial position of the Authority as at 31 December 2013

Table 131: Statement of financial position as at December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 29,963,521 30,673,055 (2.3) Current Assets 529,070,589 550,560,588 (3.9) Current Liabilities 493,391,888 389,373,204 26.7 Net Current Assets 35,678,701 161,187,384 (77.9) Net Assets 65,642,222 191,860,439 (65.8) Current Ratio 1.1:1 1.4:1

1322. Non-Current Assets decreased marginally by 2.3% from GH¢30,673,055 in 2012 to GH¢29,963,521 in 2013. This was mainly due to depreciation charge for the year.

1323. Current Assets also decreased from GH¢550,560,588 in 2012 to GH¢529,070,589 in 2013, representing 3.9% decrease. The decrease was mainly due to reduction in investment.

1324. The current ratio decreased marginally from 1.4:1 in 2012 to 1.1:1 in 2013 indicating that the Authority can barely meet its short- term obligations when they fall due.

MANAGEMENT ISSUES

Significant deficit between growth in expenditure and income 1325. We noted that the year on year growth rate in expenditure of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 312 the Authority was significantly higher than the rate of growth in income. Whiles income is growing at an average rate of 28% per annum, expenditure is growing at an average rate of 45%.

1326. The increase in expense year on year is driven mainly by increase in claim cost, largely influenced by utilization, increasing tariffs and medicine prices.

1327. The foregoing situation poses a risk on the sustainability or the going concern of the Scheme that is being managed by the Authority. The possibility that the National Health Insurance Scheme may not be able to fund its recurring costs from operational revenue in the near future if this trend is not reversed immediately cannot be ruled out.

1328. We recommended that the following measures be considered in the Authority’s effort to address this risk: i. Management should intensify cost curtailment and cost containment measures so as to manage the operational costs of running the Scheme. ii. Alternatively, an additional funding source should be explored to increase the revenue base of the Authority and; iii. Management should take another look at the structural and operational system of the National Health Insurance Scheme; identify areas where there are inefficiencies and potential leakages that might be contributing to the escalating costs.

1329. Management responded that it has adopted and continues to adopt a number of cost curtailment and cost containment measure to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 313 stem the tide of rising claims cost and other expenditures. 1330. These measures are:  Reformed the provider payment mechanism, by introducing capitation in the primary health care module of the Scheme.  Zonal claims processing centre have been established in Tamale, Kumasi, Cape Coast and Accra to inject efficiency in the management and adjudication of provider claims.  Biometric system for membership registration to enhance data integrity and to facilitate subscriber authentication at point of access to health care has been introduced on pilot basis in 2014.  The NHIA has strengthened its collaboration with Ghana Health Service to put in place measures to enforce prescribing levels as stipulated in essential medicines list of the Ministry of Health.

Government indebtedness to the NHIA as at 31 December 2013 – GH¢667,618,445 1331. Contrary to Section 52(a) of Act 852 we noted that the Minister responsible for Finance failed to pay directly into the NHIA Fund within thirty days after the collection of levies from the Revenue collection agencies.

1332. Additionally, though the National Health Insurance Fund was established, this account was operated by the Controller and Accountant-General’s Department (CAGD) in contravention of the provisions of Section 42(1) of Act 852. Disbursements from this account were made by the Bank of Ghana based on instructions of the CAGD. The Authority under the current arrangement only has access to the portions of the Funds the CAGD has authorized the Bank of Ghana to transfer to the Authority’s account.

1333. We further noted that, levies collected by the Ghana Revenue

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 314 Authority and SSNIT on behalf of the National Health Insurance Authority/Scheme were deposited by these agencies into this account and only ceded to the Authority upon the instructions of the CAGD.

1334. This resulted in a total indebtedness of GH¢335,410,521 and GH¢332,207,924 for 2012 and 2013 by the government to the Authority.

1335. The situation appears inconsistent with the provisions of the National Health Insurance Act, 2012 Act (852) which requires that the National Health Insurance Fund be operated by the NHIA.

1336. We recommended that management liaises with the relevant stakeholders to ensure that the account set up with Bank of Ghana into which SSNIT and the Revenue Collection Agencies pay their collection be operated by the NHIA in accordance with Section 42(1) of the Act and not the CAGD. This will ensure that funds paid into this account by the SSNIT and Revenue Collection Agencies are immediately available to the NHIA who will be making disbursement from the Fund. 1337. According to management, the Authority continues to liaise with the Ministry of Finance (MoF), SSNIT, GRA, CAGD and BoG to ensure prompt release of NHI levies to the Authority. Management has also strengthened its monitoring and reporting system that enables regular and prompt request for the release of funds by the MoF and CAGD in accordance with the relevant provisions of NHIA Act 852.

1338. In addition, releases from the levies accounts by the MoF has

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 315 improved over the years. The indebtedness in 2012 was 47% of total levies collections, this dropped to 40% in 2013 and then to 25.4% in 2014. We expect a further decline in the indebtedness to the Authority, considering the current trend of releases in 2015.

Failure of Ministry of Finance to absorb interest on loans - GH¢49,753,222 1339. We noted that the NHIA has to raise bridging facility from some commercial banks during the period under review to meet claim payment obligation. This became necessary due to delays by the Ministry of Finance and CAGD to release funds to the NHIA.

1340. The NHIA requested approval from the Ministry of Finance to raise these facilities and also for the Ministry to bear the interest and other charges associated with the borrowings. The Authority received the approval from the Ministry to access the loans and also the pledge to bear the interest and associated costs.

1341. We noted however that not all interest and related costs were paid by the Ministry thus making the Authority incur interest expense of GH¢49,753,222. Details are presented in Table 132.

Table 132: Interest on loans contracted Receivable Description from 2012 2013 Total 2011MoF GH¢ GH¢ GH¢ GH¢ Access Bank 399,699 9,708,033 325,475 10,433,207 loan Interest Zenith Bank - 9,404,192 33,374,430 42,778,721 loan Interest Access Bank 1,312,500 181,930 - 1,494,430

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 316 loan Fee Zenith Bank - 1,750,000 3,781,515 5,531,515 loan Fee Total Cost of 1,712,199 21,044,155 37,481,420 60,237,774 Loan Amount Paid - (10,484,651) - (10,484,651) by MoF Cost of Loan 1,712,199 10,559,504 37,481,420 49,753,222 to NHIA

1342. Though the approval was received from the Ministry of Finance for the loan to be contracted with the pledge to pay for the cost of the loans, payments were not received in full to cover these costs.

1343. The NHIA has to suffer additional expense of GH¢49,753,222 which contributed significantly to increase the overall deficit position of the Authority.

1344. We recommended that the management of the Authority work hand in hand with the Ministry of Finance and other stakeholders to ensure that all parties honour their side of the bargain. Additionally, management should ensure that remittances are made to the NHIA promptly.

1345. According to management, NHIA liaised with Ministry of Finance (MoF) for which the latter paid up some of the internal expenses as agreed by the Ministry. Subsequently, a letter from the MoF withdrew their consent to absorb further internal cost and charges on the loan. The Authority had no option under the circumstances but to decide to pay off the internal cost in order to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 317 avoid punitive compound interest and penalty charges.

Late Payment of Statutory Deductions 1346. Contrary to Section 3(3 and 10) of the National Pensions Act, 2008 (Act 766), we noted that statutory deductions in respect of social security and National Insurance Trust for the purposes of Tier 1 and 2 pensions of the staff of NHIA were not being paid on time. Details provided in Table 133.

Table 134: Non- management staff Month Amount Amount Date of Due Date Number Due Paid Payment for of Days GH¢ GH¢ Payment Overdue June 67,024.08 67,024.08 01/08/2012 14/07/2012 18 July 66,552.725 66,552.725 28/08/2012 14/08/2012 14 October 137,669.44 137,669.44 19/02/2013 14/11/2012 97 November 386,013.51 386,013.51 19/03/2013 14/12/2012 95 December 397,351.22 397,351.22 02/04/2013 14/01/2013 78

1347. The late filing of returns and payments expose the Authority’s management and directors to summary conviction to a fine of two thousand penalty units or to a term of imprisonment for two years or to both if section 3(10) of Act 766 is invoked.

1348. To minimize the risk of interest and penalties on late filing and payments, the Authority should ensure that returns are filed before the deadline and all required payment are made on a timely basis.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 318 1349. According to management, a new procedure in the SSNIT contribution process require that the Authority submits contributors report to SSNIT for the validation and approval, prior to the Authority making payment for the contribution. The late payment was due to delays in the receipt of contribution report from SSNIT after validation and approval. The Authority will however endeavor to comply with Section 3(3) of National Pensions Act, 2008 (Act 766). Direct Payment to Suppliers on behalf of Partner Institutions 1350. Section 42(1) of the National Health Insurance Act, 2012 (Act 852) requires that the Authority shall allocate and disburse from the Fund in order to achieve its objective of the Fund.

1351. We noted that as part of its budgeting process, the Authority sets aside funds to support programmes and institutions referred in the financial statements as support to partner institutions. These amounts are approved by parliament for the specified projects as part of the Authority’s allocation formulae for the year. Beyond disbursement of these funds to the various institutions/entities, no procedure is in place to ascertain whether the funds are being applied for the intended purpose. The categories of expenses incurred in the years under review are presented in Table 135.

Table 135: Support to partner institutions Payees 2012 2013 GH¢ GH¢ Zoom Lion Ghana Limited 35,000.000 3,240,936 Better Ghana Management Service 20,860.000 - Limited Maripona Enterprise Limited - 3,171,566 Volta Impex Limited - 499,997

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 319 Plinliyamco Company Limited - 825,420 Total 55,860,000 7,737,919

1352. There is no reasonable assurance that the amounts paid in respect of these projects were applied for the planned activity, more so where there are private entities and other Institutions whose accounts may not be audited by the Auditor-General. The Authority may not also be entirely monitoring the use of funds disbursed from National Health Insurance Fund.

1353. We recommended that the Authority institutes a mechanism that allows them to receive feedback from implementing partners on how the funds advanced to them have been used and also a progress report on the various projects and programmes. We also recommended that where a Partner Institution (such as the Ministry of Health) is implementing a project on behalf of the Authority, all transfers should be made to that Institution who would then take responsibility for ensuring that the required goods/services have been delivered after which payments can be made directly to the service providers.

1354. According to management, transfers to partner institutions (MoH) are done in accordance with approved NHIF allocation formula. This is akin to the way approved allocations are transferred from the consolidated Fund or Contingency Fund to governmental institutions. Upon written directives from the MoH, The Authority make transfers of MoH shares of the allocated funds to other institutions on behalf of the Ministries.

1355. Once NHIA pay out these funds to institutions upon the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 320 directives and instructions of MoH, the use of the funds are subject to applicable laws on financial administration, procurement, and audit of the MoH or the governmental institution. It is not the primary responsibility of NHIA to monitor the usage of these funds by the reviewing institutions.

Delay in liquidation of District Mutual Health Insurance Schemes (DMHIS) 1356. Contrary to Section 112(1a) of the National Health Insurance Act, 2012 Act 852t, we noted that though the revised National Health Insurance Act was passed in October 2012, a key transitional provision regarding the dissolution of the District Mutual Health Insurance Schemes (DMHIS) which were hitherto operating as companies limited by guarantee was not done as at December 2013.

1357. The situation was attributed to the bureaucratic nature of the processes leading to the liquidation of these schemes. This resulted in the NHIA operating under the old structure in 2013 even when the new Act was supposed to have been effective. This has resulted in the Authority not presenting consolidated financial statements covering all the activities of the scheme as would have been done under the new structure.

1358. We recommended that Management should intensify efforts at fully integrating the activity of the DMHIS especially in the aspect of financial reporting. This will involve a number of activities including:

 Reporting all revenues generated by the schemes (processing fees) on the financial statements of the Authority.  Reporting all fixed assets and creditors carried in the books of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 321 the individual schemes.  Building a reporting structure that will enable the Authority identify and eliminate internal transactions between the schemes and the Authority.

1359. Management in response said it could not present a consolidated financial report for NHIS for the year 2013 because of the delay in the dissolution of the 155 District Mutual Health Insurance Schemes, and the transfer of their assets and liabilities to the National Health Insurance Authority.

1360. The liquidation process was completed in November 2013 whilst the Authority obtained the vesting assent for the transfer of the assets and liability of the dissolved DMHIS on 30th September 2015.

1361. Management is putting in place structures and systems to integrate the financial systems of NHIA to facilitate the preparation and presentation of a consolidated financial report on the activities of the NHIS.

Differences between salary support received by Schemes and amount transferred from NHIA- GH¢55,315.44 1362. We noted differences between amounts of salary support in the books of the Authority and what was actually received by some of the Schemes in respect of the 2012 financial year. Details are in Table 136.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 322 Table 136: Salary support received by the schemes Authority Schemes Differences Name of Books Books GH¢ Schemes GH¢ GH¢ 31,766.07 10,456.14 21,309.93 East Mamprusi 55,627.64 37,793.97 17,833.67 Keta 63,224.47 47,052.63 16,171.84 Nzema East 150,618.18 95,302.74 55,315.44

1363. Differences between the two records cast significant doubt on the completeness and accuracy of the information contained in the financial statements.

1364. We recommended that management of the scheme should liaise with the management of the Authority with the view to establish causes of the difference to enable them rectify the anomaly.

1365. The management of the various Schemes explained that they did not receive such transfers from National Health Insurance Authority and noted our recommendation for implementation.

Difference between premium collected and premium banked- GH¢23,887.90 1366. Contrary to Regulation 22(1) of FAR 2004, (LI 1802), we noted differences between premium collections per cash book and the amounts banked in two out of the Schemes visited. Table 137 shows the details of the Schemes and the amount involved.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 323 Table 137: Differences in amounts banked

Total Total Premium Premium Differences Name of Collected Banked GH¢ Schemes GH¢ GH¢ 1,173,954.00 1,169,475.00 4,479.00 Ga 132,829.40 113,420.50 19,408.90 Akatsi Total 23,887.90

1367. We also noted at Asunafo North that 10% of the premium collected between August 2012 to 31 December 2012 amounting to GH¢7,417.00 was deducted as a commission before depositing the balance into the bank account. The GH¢7,417.00 was paid into administrative account maintained by the Scheme.

1368. This practice constitutes a breach of financial discipline as defined in regulation 8(1) of FAR. There is also the risk of misappropriation of cash if collections are not banked in gross and in a timely manner.

1369. Management should ensure that all premiums collected are paid in gross into the remittance account in a timely manner. Management should also ensure that the amounts involved are properly accounted for, failing which the receiving officers should be made to refund the amount.

1370. This recommendation was noted by management for strict implementation. The practice of paying 10% commission from premium collection before banking has also stopped.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 324 GCR’s booklets issued from Head Office not found in the books of Builsa Health Insurance Scheme 1371. In contravention to Regulation 214(1) of FAR 2004, we noted that eleven GCR booklets with serial numbers ranging from 1882901 to 1884000 were not found in the GCR register at Builsa National Health Insurance Scheme.

1372. The above GCRs were transferred to the Scheme on the 27 November 2012 in lots of 80 booklets ranging from 1876001 to 1884000 as per the waybill and the transfer schedule from NHIA.

1373. No explanation was given for this anomaly. Funds generated from the GCRs may not be easily tracked and accounted for.

1374. Ineffective controls of the management of the GCR booklets create an opportunity for misappropriation of funds.

1375. We recommended that there should be timely review and reconciliation between the GCR waybill and the GCR register to ensure that all GCR received from head office have been properly accounted for. Further, management should follow up on the whereabouts of the 11 GCRs in question.

1376. Management noted our recommendation for compliance.

Unbanked Processing Fee 1377. Regulation 15(1) of FAR 2004 states “Any public officer or revenue collector who collects or receives public and trust moneys shall issue official receipt for and pay them into the relevant public Fund Bank Account within twenty-four (24) hours of receipt except in exceptional circumstances to be identified by the Minister”.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 325 1378. We noted during a review of the Ga Mutual administrative account bank reconciliation statements outstanding processing fee of GH¢32,972.00 between January to March 2012 had not been banked as at 31 December 2012. However, GH¢6,785.00 was refunded in April 2013 leaving an outstanding balance of GH¢26,187.00, which had still not been banked as at the year-end 2013 in contravention of the above regulation. There is the risk of misappropriation of cash if collections are not banked in a timely manner.

1379. Management should investigate and ensure that the funds are paid back into the account of the Scheme. We are still awaiting management response to this observation.

Differences between premium received in collection report and control receipts issued for premium collected 1380. It is best practice that the total premium in the collection report sent to NHIA should agree with all the total control receipts issued for the premium collected.

1381. We noted that differences arose between the total control receipt issued per premium collected and that of the premium collection deposited in the sweeping account of NHIA as per collection reports at Tamale Municipal Mutual Health Insurance Scheme. Details presented in the Table below:

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 326 Premium Total Control Differences Year Received Per Receipt Issued for GH¢ Collection Report Premium Collection GH¢ GH¢ 2012 185,012.00 83,430.00 101,582.00 2013 202,085.00 173,012.00 29,074.00 Total 130,656.00

1382. Management explained that this was due to absence of some control receipts due to overcrowded store. This made it very difficult to assess the completeness for control receipts issued for premium collected.

1383. We recommended that management should retrieve the control receipts to enable us confirm the completeness of the Collection Report. Additionally, management should put in place measures to forestall the recurrence of the above situation.

1384. Management in response promised to search for the other issued control receipts which were not available at the time of the audit to cover up the difference.

Claims payment not supported by signed vetting report or Memo- GH¢213,799.28 1385. It is expected that all evidence of vetting in addition to the authorization by the medical claims manager be attached to the payment voucher for verification by the Accountant before payment is made for any medical claims.

1386. During our review of medical claims paid in 2012 and 2013 at East Gonja District, Mfantsiman and West Mamprusi District, we

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 327 could not obtain evidence of vetting report by the medical claims manager for selected medical claims totaling GH¢213,799.28 examined.

1387. Management explained that the problem arose during the period when new claim officers were appointed and transferred from Tamale who had little knowledge on claims; coupled with an oversight due to high volumes of claims to be vetted and the urgency with which claims need to be vetted and providers paid.

A sample of these exceptions are highlighted in Table 138 below. Date Facility P.V. Amount Remarks No. GH¢ 6/05/2013 Regent 24/05 4,655.56 Mfantei Medical man Diagnosti c Centre 23/12/201 Regent 22/12 4,353.41 “ 3 Medical Diagnosti c Centre 23/12/201 Otuam 19/12 6,830.30 “ 3 Health Centre 15/08/201 Buya 33 80,852.68 East 3 H.C/ Gonja Kitore Clinic- Drugs 22/10/201 Lonto 21 24,346.29 “

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 328 3 clinic - drugs 15/03/201 Kpandai 2 46,226.06 “ 3 District Hospital – drugs 01/03/201 Kubore 949471 3,731.27 West 2 Health Mampru centre si 17/12/201 Jamga 949610 39,152.47 “ 2 polyclinic 01/08/201 KpsEnkpe 949472 3,651.24 “ 2 Health Centre Total 213,799.28

1388. The NHIA risks making payments for medical claims that cannot be substantiated leading to financial loss or wrong payments.

1389. We recommended that vetting reports by the Claims Department should be attached to the payment Voucher for review by the Accounts Department before authorization and approval by the Scheme manager. Management should provide the necessary supporting documents to authenticate the payment of GH¢213,799.28 failing which the approving officer should be held liable.

1390. Management noted our recommendation for compliance.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 329 FOOD & DRUGS AUTHORITY Introduction 1391. This report relates to the audited accounts of the Food & Drugs Authority for the period 1 January 2012 to 31 December 2013 Operational results 1392. The year 2013 ended with operational surplus of GH¢5,573,089 representing 778.6% increase of the previous year’s deficit of GH¢821,234. The performance indicators for the year are shown in the Table 139 below:

Table 139: Income and Expenditure statement for 2013 2013 2012 % Income GH¢ GH¢ Change Govt. Subvention 11,504,071 10,716,420 7.3 Internally Generated Fund 21,108,988 14,072,294 50.0 Foreign currency 165,432 1,294,122 (87.2) conversion gain Total Income 32,778,491 26,082,836 25.7 Expenditure Personal Emoluments 11,504,071 10,714,687 7.4 Service Expenditure 5,249,847 6,344,205 (17.2) Administration 10,451,485 9,845,178 6.2 Expenditure Total Expenditure 27,205,403 26,904,070 1.1 Surplus/(Deficit) 5,573,088 (821,234) (778.6)

1393. Total income registered an increase of 25.7%, from GH¢26,082,836 in 2012 to GH¢32,778,491 in 2013. The increase was mainly due to the increases in the Internally Generated fund (IGF) from GH¢14,072,294 in 2012 to GH¢21,108,988 in 2013, representing

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 330 50.0%. 1394. Total Expenditure also went up marginally by 1.1% from GH¢26,904,070 in 2012 to GH¢27,205,403 in 2013. Even though expenditure on Personal Emoluments and Administration went up by 7.4% and 6.2% respectively, expenditure on Service Activity decreased by 17.2%.

Financial position 1395. The authority’s financial position as at 31 December 2013 is shown in the Table 140 below. 2013 201 % Items GH¢ GH¢ Change Non-current 12,075,469 11,374,755 6.2 Assets Current Assets 8,198,649 3,269,418 150.8 Current Liabilities 162,719 105,863 53.7 Net Current 8,035,930 3,163,555 154 Assets Net Asset 20,111,399 14,538,310 38.3 Liquidity Ratio 50.4:1 30.9:1

1396. Non-current Assets increase by GH¢700,714 or 6.2% in 2013. This was mainly due to the acquisition of new assets.

1397. Current Assets went up by 150.8%, from GH¢3,269,418 in 2012 to GH¢8,198,649 in 2013. This was as a result of increase in both the Accounts Receivable by 140.7%, from GH¢39,981 in 2012 to GH¢602,581 in 2013 and bank Balance by 135% from GH¢3,229,437 in 2012 to GH¢7,596,067 in 2013. The increase in the Accounts Receivable was due to the Ministry of Health and GETFund

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 331 indebtedness of GH¢400,000 and GH¢159,242 respectively to the Authority.

1398. Current Liabilities recorded an increase of 53.7%, from GH¢105,863 in 2012 to GH¢162,719 in 2013. The rise was due to accumulation of withholding tax not promptly remitted to the Commissioner.

1399. The liquidity ratio as measured by a current ratio of 50.4:1 in 2013 and 30.9:1 in 2012 financial years indicates the ability of the Authority to meet its short term debts as and when they fall due.

MANAGEMENT ISSUES

Unearned salary – GH¢1,341.96 1400. Our examination of the mechanized salary voucher disclosed that Mr. Kelvin Kute, a former employee of the Authority whose appointment was terminated on 1 August 2013 was erroneously paid one month salary of GH¢1,341.96 after his exit in violation of Regulation 297 of the Financial Administration Regulation (FAR), 2004.

1401. Though the Accountant promptly submitted the relevant inputs to the Controller and Accountant-General’s Department for the deletion of his name , the Department delayed in the deletion of the said officer’s name resulting in the payment of unearned salary of GH¢1,341.96. The lapse could also be attributed to management’s failure to as well inform his bankers for the stoppage of the payment of his salary.

1402. We recommended and management accepted to contact the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 332 bankers of the former employee to refund the amount to chest if not withdrawn or else the former employee would be traced and the amount recovered and paid to chest.

No Title deeds for landed property 1403. We visited the Authority’s Zonal Office at Tamale and noted during our audit that the Authority did not have title deeds for the Zonal Officer’s residence.

1404. In our view, the absence of title deeds to cover the Authority’s property exposes it to unnecessary litigation in the future.

1405. To avoid the loss of its property, we recommended that as a matter of urgency, immediate action should be taken to obtain title deeds for the property.

PHARMACY COUNCIL Introduction 1406. This report relates to the audited accounts of the Pharmacy Council for the year 31 December 2014. Operational results 1407. The operations of the Council resulted in a surplus of GH¢1,290,020.55 in the year under review as against a deficit of GH¢8,914.90 in the previous year. A summary of the income and expenditure account for the year reviewed is shown below.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 333 Table 141: Income Statement for 2014 Income 2014 2013 % GH¢ GH¢ Change Internally Generated Fund 5,257,620.50 1,652,255.50 218.2 Government Subvention 1,383,881.71 1,254,797.80 10.3 Donor Fund 365,580.00 443,604.00 (17.6) Total 7,007,082.21 3,350,657.30 109.1 Expenditure Employee Compensation 1,726,534.71 1,491,161.80 15.8 Goods and Services 2,619,941.04 1,788,732.00 46.5 Assets 1,370,585.91 79,678.40 1,620.15 Total 5,717,061.66 3,359,572.20 70.2 Excess 1,290,020.55 (8,914.90) (14,570.4) Expenditure/Income

1408. Total Income for the year increased from GH¢3,350,657.30 in 2013 to GH¢7,007,082.21 in 2014 representing 109.1% rise over the previous year’s income. Government Subvention which represented 19.7% of total income increased marginally from GH¢1,254,797.80 in 2013 to GH¢1,383,881.71 in 2014 which is 10.3% increase over the previous year’s figure. 1409. Internally Generated Fund (IGF) which accounted for 75.1% of the total income, increased significantly from GH¢1,652,255.50 in 2013 to GH¢5,257,620.50 in 2014 representing a 218% increase over the previous year. This was due to increase in the receipt for Renewal fees for Pharmacies, Licensed Chemical Sellers (LCS), Processing fees for Pharmacies, and Disciplinary Committees Fees. However, Donor Fund which represented 5.3% of total income rather decreased by 17.6% from GH¢443,604.00 in 2013 to GH¢365,580.00 in 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 334

1410. Total Expenditure increased by 70.2% from GH¢3,359,572.20 in 2013 to GH¢5,717,061.66 in 2012. Compensation for employees, Goods and Services and Assets increased by 15.8%, 46.5% and 1,620.15% respectively. Increase in staff salaries and Committee of Council Allowance accounted for the increase in compensation of employees.

1411. The rise in the Use of Goods and Services could be attributed to the increase in cost of Printed Materials and Stationery, cleaning materials, Fuel and lubricants and Maintenance and repairs-official.

1412. Assets increased significantly by 1,620.15% from GH¢79,678.40 in 2013 to GH¢1,370,585.91 in 2014 due to purchase of vehicles, Plant and Equipment, Computer Software and Furniture and Fittings.

Financial position 2014 2013 % GH¢ GH¢ Change Current Assets 1,424,601.92 109,275.92 1,203.7 Current Liabilities 41,986.20 16,680.75 151.7 Net Assets 1,382,615.72 92,595.17 1.393.2

1413. The Council’s Current Assets increased significantly by 1,203.7% from GH¢109,275.92 in 2013 to GH¢1,424,601.92 in 2014. This was mainly due to increase in Bank balances during the year under review.

1414. Current Liabilities increased to GH¢41,986.20 in 2014 and this

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 335 represented a 151% rise over the amount of GH¢16,680.75 for 2013. An increase in the National Drug Information Research Centre (NDIRC) liabilities accounted for the increase.

1415. The Council’s Current liquidity ratio of 33.9:1 as at the end of 2014 indicates that the Council would be able to meet its Current liabilities as and when they fall due.

1416. The Council’s Fund balance also increased by 1,393.2% from GH¢92,595.17 in 2013 to GH¢1,382,615.72 in 2014. This could be attributed to the surplus of GH¢1,290,020.55 in the income statement for the year ended December, 2014.

MANAGEMENT ISSUES

Unearned Salary – GH¢1,857.74 1417. Contrary to Regulation 298 of the FAR, 2004 L.I. 1802 we noted during our review of payroll of the Pharmacy Council for the year under review that, two separated officers were still earning their salary, hence accumulating a total unearned salary of GH¢1,857.74. Details provided below:

Separated Staff Name of staff Post Date of Date of Unearned Type of Separat last Salary Separati ion Salary GH¢ on Jacob Tawiah Messeng 6/13 9/13 1,445.40 Retirem er ent Comfort Data 6/2012 8/12 412.34 Resignat Kokroko Entry

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 336 Clerk ion Total 1,857.74

1418. The occurrence was due to management’s failure to inform the Controller and Accountant-General, as well as notifying their bankers to stop the payment of their salaries immediately the above officers were separated.

1419. This negligence of duty on the part of the Accountant has led to the state losing scarce resources which could be channelled into developmental projects. 1420. We recommended that management trace the above officers to recover the amount from them and lodged into the consolidated fund failing which the Accountant should be held liable for the refund.

1421. Management in response stated that though Controller and Accountant-General’s Department was informed of the deletion, they could not detect their names were not deleted until two or more months when they received the pay slips. Meanwhile management is making every effort to recover the unearned salary.

Demand for the Payment of Compensation of GH¢61,448.00 1422. Our review of the personal files of separated officers revealed that, Madam Marian Torjagbo, an Inspecting Pharmacist resigned from the Council on November 2013 although management declined her request.

1423. Our further investigation revealed that, she was on study leave with pay for three years [from July 2010 to September 2013] to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 337 pursue her Master Degree in Public Health Information at Emory University, Atlanta, Georgia, USA and resigned immediately after her course.

1424. Her action violates the terms of the bond signed on the 7 July 2010, which required her to serve the Council for five years after completion or in breach refund the compensation paid her during the period of her study with five percent interest. 1425. Our discussions with the Administrator disclosed that management’s efforts to get her fulfill her part of the agreement internally yielded no results.

1426. Consequently, the case was referred to the Council’s Lawyer to follow up to ensure that the amount was retrieved. This was after management’s last letter dated 14 April, 2014 headed ‘Demand for the Payment of Compensation of GH¢61,448’ by GOH Associates which we sighted on her file.

Details of the amount per management’s calculation Marian Torjagbo Unearned Salary [GH¢61,448.00] Details Month Number Amount of GH¢ Months Salary Aug. to Dec. 2010 5 5,232.00 Salary Jan. to Dec. 2011 12 15,010.00 Salary Jan to Dec. 2012 12 18,172.00 Salary Jan. to Dec. 2013 9 15,075.00 Salary Jan. to March. 2014 3 5,025.00 Interest 2,926.00 Total 61,448.00

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 338 1427. We urged management to continue to pursue the matter and recover the GH¢61,448.00 to Government chest without delay.

GHANA COLLEGE OF PHYSICIANS & SURGEONS

Introduction 1428. This report relates to the audited accounts of the Ghana College of Physicians & Surgeons for the period 1 January 2013 to 31 December 2014

Operational results 1429. The College ended the financial year with a surplus income of GH¢1,662,339.89 as compared with GH¢2,152,331.45 in 2013. A summary of the Income and Expenditure for the year is as follows:

Income Statements for the years 2013 and 2014 Income 2014 2013 % GH¢ GH¢ Change Subvention 378,485.03 789,397.99 (52) Other Income 4,072,981.12 3,410,651.39 19.4 Total Income 4,451,466.15 4,200,049.38 6 Expenditure Employee Compensation 378,485.09 521,943.37 (27.5) Goods & Services 2,410,641.22 1,525,774.56 58 Total Expenditure 2,789,126.25 2,047,717.92 36.2 Surplus 1,662,339.89 2,152,331.45 (22.8)

1430. Total Income for the College increased by GH¢251,416.77 representing 6% from GH¢4,200,049.38 in 2013 to GH¢4,451,466.15 in 2014. The increase was largely due to a rise in other income by GH¢662,329.73 representing 19.4% from GH¢3,410,651.39 in 2013 to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 339 GH¢4,072,981.12 in 2014, although Government Subvention reduced by GH¢410,912.96 from GH¢789,397.99 in 2013 to GH¢378,485.03 in 2014.

1431. Total Expenditure of the College increased by GH¢741,408.33 representing 36.2% from GH¢2,047,717.92 in 2013 to GH¢2,789,126.25 in 2014. An increase in Training Seminars and Conference cost of GH¢265,618.72 representing 49.4% from GH¢537,388.07 in 2013 to GH¢803,006.79 in 2014 accounted for the above increase in Total Expenditure in 2014.

1432. The College did not acquire nor dispose off any of its Fixed Assets in the year under review The decrease in Fixed Assets by GH¢84,360.29 was due to the depreciation charged in 2014.

Financial position 1433. Current Assets increased by GH¢1,735,115.21 representing 47.3% from GH¢3,667,715.98 in 2013 to GH¢5,402,831.19 in 2014. The increase was due to a higher exchange rate used to convert the College’s Forex Bank Account balance due to the depreciation of the cedi against the dollar in 2014.

1434. Current Liabilities of the College decreased by GH¢11,584.97 representing 63.7% from GH¢18,174.980 in 2013 to GH¢6,589.93 in 2014.

1435. The Current ratio of 820:1 as at the end of the year indicates that the Board would be able to meet its current liabilities when they fell due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 340 MANAGEMENT ISSUES

Unapproved Salary Related Allowances GH¢507,240.95 1436. Contrary to Regulation (5a & c) of the Retention of Funds Act, 2007 (Act 735), our examination of records revealed that, in addition to the monthly Single Spine Salaries paid by Controller and Accountant-General’s Department (CAGD) on the mechanized payment vouchers, management paid salary related allowances of GH¢507,240.95 from their IGF by manual payment vouchers to the staff, without seeking approval from the Minister of Finance.

1437. Moreover, we observed that the allowances paid; such as housing and entertainment among others, were allowances already incorporated into the single spine salary structure and therefore prohibited. Besides they were not included in the IGF budget for Parliamentary approval.

1438. In a related development we noted that the Council approved proposals by a Committee to equate the conditions of service of the Rector to that of a Vice Chancellor of a public University and also upgrade the allowances of the staff without authority/approval from the Minister of Finance.

1439. The above irregularity could be attributed to management’s disregard for procedures set out in the regulation in the payment of salary increase and related allowances.

1440. The payment of unapproved allowances resulted in misapplication of the funds of the College leading to loss of funds to the state.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 341 1441. We recommended that management should seek proper authority/approval for any upward adjustment in salary/allowances from the Minister of Finance or should immediately stop the practice, recover the illegitimate amount of GH¢507,240.95, pay same into the College account and our office duly informed for verification.

1442. In response, management stated that Section 47(3) of the Act that established the College mandates the Council of the College to employ the required people on terms and conditions that it considers appropriate. Management also stated that the College is an Agency under the Ministry of Health so receive directives from the Ministry of Health. Ministry of Health has provided approvals for these salary related allowances to be paid and that notwithstanding, they will pursue a Ministry of Finance approval through the Ministry of Health.

1443. At the instance of the audit management obtain approval from the Minister of Finance to allow the expenditure stand charged, however the approval was devoid of the type of allowances to be paid which is not the normal practice at the Ministry. We reiterate that the allowances paid on the manual vouchers are already built- in in the single spine salary and therefore the practice must be stopped and proper clarification sort with the Fair Wages Commission.

NURSING & MIDWIFERY COUNCIL

Introduction 1444. This report relates to the audited accounts of the Nursing & Midwifery Council for the period 1 January 2012 to 31 December

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 342 2014

Operational results 1445. The Nursing and Midwifery Council recorded an income surplus of GH¢1,448,500.61 for the financial year ending 31 December 2014. An increase of GH¢651,505.40 from GH¢796,995.21 in 2013 to GH¢1,448,500.61 in 2014 representing 81.7%.

Income 2014 2013 % GH¢ GH¢ Change Subvention 1,173,816.31 877,922.82 33.7

IGF + Interest Received 8,837,305.33 7,997,976.11 10.5

Total Income 10,011,121.64 8,875,898.93 12.8

Expenditure

Compensation of Employees 1,083,103.82 964,334.34 12.3

Goods & Services (Admin. 3,370,424.46 2,662,425.87 26.6 Activities) Goods & Services (Service 4,109,092.75 4,452,143.51 7.7 Activities) Total Expenditure 8,562,621.03 8,078,903.72 6

Income surplus/Deficit 1,448,500.61 796,995.21 81.7

1446. Subvention for the year under review increased by GH¢295,893.49 from GH¢877,922.82 in 2013 to GH¢1,173,816.31 in 2014 representing 33.7%, this was owing to the general upward adjustment in employees’ compensation for the financial year ended 2014 and also an increase in contact staff.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 343 1447. Internally Generated fund (IGF) plus interest received increased to GH¢8,837,305.33 in 2014 from GH¢7,997,976.11 in 2013 representing 10.7% this was due to the upward adjustment in fees.

1448. Total Income increased by GH¢1,135,222.71 from GH¢8,875,898.93 in 2013 to GH¢10,011,121.64 in 2014 representing 12.8%.

1449. The Council’s total expenditure increased by GH¢483,717.31 from GH¢8,078,903.72 in 2013 to GH¢8,562,621.03 in 2014 representing 6%. Significant amongst them was office accommodation which increased by GH¢165,093.87 from GH¢23,490.85 in 2013 to GH¢188,584.72 in 2014 representing 702.8%. This was largely due to the opening of five (5) additional zonal offices in the regions.

Financial position 1450. Non-Current Fixed Assets increased by GH¢3,425,461.14 from GH¢2,397,288.94 in 2013 to GH¢5,822,750.08 in 2014 representing 142.9%. This was as a result of addition of assets procured in the year under review.

1451. The Council’s current ratio of 157.1:1 is significant to take care of obligations when they fall due.

MANAGEMENT ISSUES

Failure to account for revenue collected at the Western Regional Office – GH¢96,882.00 1452. Regulation 15 of the FAR, 2004 (L.I. 1802) states that, “any public officer or revenue collector who collects or receives public

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 344 funds shall issue official receipts for them and pay them into the relevant Public Fund Bank Account within twenty-four hours of receipt except in exceptional circumstances to be identified by the Minister.”

1453. In spite of the aforementioned Regulation, we noted during our verification exercise in the Western Regional Office that, the Regional Accountant failed to fully account for revenue collected amounting to GH¢115,882.00 for the period May 2013 to December 2014. Whilst in some instances, some leaflets of the pay-in-slip alleged to have been used for depositing money at the Bank did not bear the certified official stamp of the Bank of Ghana, hence did not reflect in the Bank of Ghana statement, others too were not lodged.

1454. Management intimated that the case had been referred to the Criminal Investigation Department (C.I.D) of the Ghana Police Service.

1455. Inadequate internal controls over collection of revenue coupled with poor managerial supervision over the Regional Accountant’s work led to this anomaly.

1456. The Accountant’s failure to lodge in full revenue collected denied the Council the needed funds to operate effectively.

1457. We recommended to Management to pursue the case to ensure that the money is recovered from the Accountant. In future, management should strictly enforce the provisions in the Regulation. Management should subsequently inform our office on the status of the police investigations.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 345 1458. Management responded that its Internal Audit unit first uncovered the fraud and currently waiting for the report from the police to know the status of the case.

1459. Management stated further that Mr. Gilbert Addison the former Western Regional Accountant had made part payment of GH¢19,000.00 to the Fraud Unit of the CID of the Police Headquarters. The amount had since been paid to NMC, official receipt issued and verified. The balance amounting to GH¢96,882.00 is yet to be recovered. The Controller and Accountant-General’s Department has dismissed Mr. Gilbert Addison.

1460. We reiterate our earlier recommendation.

Revenue not lodged in full – GH¢145,031.50 1461. Regulation 18 of the FAR 2004 states that, “department that has legislative approval to retain all or a portion of Internally Generated Funds collected, must first lodge the retained Internally Generated Funds in gross into the Department’s Operational Bank Account designated by the Controller and Accountant-General before disbursements are made.”

1462. A further review of the operations of other NMC Regional Offices revealed that, four out of the remaining nine Regional Accountants did not also lodge in full revenue collected amounting to GH¢145,031.50. Details are as shown below.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 346 Revenue not lodged in full – GH¢145,031.50 Total Diff. In Total Transfer to Receipt/Over Amount Amount Receipt BOG transfer to Refunded not BOG GH¢ Refunded GH¢ Cape 3,522.00 Nil Coast 279,950.00 276,428.00 3,522.00 Kumasi 151,889.50 70,240.00 1,241,137.00 1,073,641.50 81,649.50 Ho 64,655.00 9,550.00 382,240.00 317,770.00 55,105.00 Bolga 4,755.00 Nil 171,335.00 166,580.00 4,755.00 Total 2,074,662.00 1,834,419.50 224,821.50 79,790.00 145,031.50

1463. We observed that the Accountants were authorized to procure value books from the Regional Controller and Accountant- General office or the Ministry of Health Regional Office and issue them to themselves. This made it possible for them to suppress GCRs used in collecting revenue. Poor supervision and ineffective financial controls on the part of management also contributed to the irregularity.

1464. The Regional Accountants’ failure to lodge revenue collected in full resulted in suppression of revenue collected and had denied the Council of funds needed for its operations.

1465. We recommended to Management to strictly ensure that all Regional Officers enforce the lodgment of revenue collected in full within the stated twenty-four hours by the Accountants to avert the recurrence of the situation. Additionally, we recommended that

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 347 procurement of GCRs should be made at Headquarters for distribution to the Regions.

1466. Management should also establish a monitoring mechanism to supervise the collection of revenue and reconcile the respective pay-in-slips with the cash book entries to ensure moneys collected have been fully banked. Meanwhile disciplinary action should be taken against the Accountants involved to serve as a deterrent to others.

1467. Management acknowledged the recommendation for compliance, and stated that, they have given the Accountants two weeks to lodge the total amount of GH¢224.821.50 and submit the paying-in-slips for verification. The Accountants have refunded GH¢79,790.00 and promised to refund the remaining amount of GH¢145,031.50 within 30 days. At the instance of the audit team, Management directed that all Internally Generated Funds (IGF) should be made in Bankers Draft only.

Pre-financing of Contract – GH¢350,000.00 1468. Section 16(1) of the Financial Administrative Act 2003, Act 654, requires that payment shall not be made for work done, goods supplied or services rendered whether under a contract or not in connection with any part of the Public Service unless the head of department certifies that work has been performed, goods supplied or services rendered and the services rendered and the price charged is according to the contract.

1469. On the contrary, we noted during our audit that, Nursing and Midwifery Council contracted Okore Technologies to supply Office furniture and paid him GH¢350,000.00 representing 50% of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 348 the contract sum as mobilization. A further review of the contract agreement revealed that this arrangement was not part of the terms of the Contract. Details of the transaction provided below.

Date P. Cheque Amount Payee Purpose V. No. GH¢ No. 7/3/14 1861409 299861 350,000.00 Okore Payment Technologies of 50% of the Invest- ment contract sum as advanced mobilizati on for the supply of Office Furniture. 1470. Management’s disregard for the contract terms and the above regulation contributed to this anomaly.

1471. We urged management to ensure full compliance of the FAR and to discontinue this practice in future transactions.

1472. Management responded that, after awarding the contract for the supply of furniture within six months, the contractor of the office complex at one of their site meeting in December 2014 said he would finish and hand over the building in March 2015.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 349 1473. Management therefore took emergency decision to advance the furniture supplier 50% of the contract sum to enable him execute the supply ahead of the agreed date for early relocation. Also management accepted the audit recommendation for compliance in future transactions.

Non- Competitive Tendering 1474. Section 35(1) of the Public Procurement Act (PPA), 20 (Act 663) states that ‘A procurement entity shall procure goods, services or works by competitive tendering except as provided in this part’

1475. Contrarily, we noted that the Council engaged the service of Kanakgold Information Technologies Ltd to supply three pieces of cannon IR4045 photo copiers amounting to GH¢123,994.00 in 2014 without competitive tendering.

1476. Non-adherence to the Procurement Act resulted in this anomaly.

1477. In this regard, we could not authenticate the credibility and competitiveness of the transaction and whether value for money was obtained.

1478. We therefore, recommended to Management to ensure that PPA is followed to the letter. We also advised that management organize refresher course for the Procurement Unit.

1479. Management responded that, they have arranged training program to build the capacity of their procurement officers.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 350 Violation of Procurement Act – GH¢420,328.00 1480. Section 21(5) of the Public Procurement Act(PPA) states that ‘A procurement entity shall not divide a procurement order into parts or lower the value of a procurement order to avoid the application of the procedures for public procurement in this Act’. A contract above a stipulated sum of GH¢5,000.00 should be packaged and advertised in a manner that will ensure full participating of interested bidders in the procurement procedures.

1481. Contrary to the above regulation our audit review revealed that, a contract for the purchase of stationery amounting to GH¢420,328 was fragmented into five different lots in circumvention of the Procurement Act and awarded to five different contractors as shown in Table 142 below: Table 142: Violation of Procurement Act – GH¢420,328.00 Date P. V. Cheque Amount Payee No. No. GH¢ 25/2/14 1861775 299826 15,266.40 IT Market Ltd. 25/2/14 1861775 299829 20,250.00 Minipack Press 25/2/14 1861777 299830 18,900.00 Yamens Press 11/6/14 1861605 764579 17,100.00 Technic Channel 11/6/14 1861603 764577 19,012.00 Technic Channel 11/6/14 1861605 764573 15,300.00 Technic Channel 23/7/14 1861685 764752 22,500.00 Alexfos Enterprise 23/7/14 1861684 764751 21,600.00 Minipack Press 23/7/14 1861688 764755 14,400.00 Minipack Press 23/7/14 1861686 764753 18,000.00 Minipack Press 21/8/14 1862064 764850 28,125.00 Alexfos Enterprise 21/8/14 1862063 764851 28,125.00 Yamens Press 21/8/14 1862062 764852 30,375.00 Minipack Press 21/8/14 1862075 764842 22,420.00 IT Market Ltd. 21/8/14 1862077 764844 20,750.00 IT Market Ltd.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 351 21/8/14 1862076 764841 23,900.00 IT Market Ltd. 5/9/14 1862134 765036 28,125.00 Yamens Press 5/9/14 1862133 765035 28,125.00 Alexfos Enterprise 5/9/14 1862135 765037 28,125.00 Minipack Press Total 420,328.00

1482. This contravenes the section of the PPA as stated above. Furthermore, this was done to avoid the process of competitive bidding as required by the Act.

1483. Control Process being deliberately circumvented by management in our view, led to this omission. We could not vouch for the transparency or otherwise of these transactions.

1484. We recommended to management to obey the dictates of the Act to avoid recurrence in all future dealings.

1485. Management responded that Nursing and Midwifery Council of Ghana conducts Examinations five times in a year, so procures materials for the examination. However due to the nature of their old head office being just by the sea and their inadequate storage space, it was not convenient to procure the examination materials in bulk to mitigate wastage.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 352 MINISTRY OF TRANSPORTATION

GHANA RAILWAY DEVELOPMENT AUTHORITY

Introduction 1486. This report relates to the audited financial statements of the Ghana Railway Development Authority for the period January 2010 to December 2013.

Operational results 1487. The Authority declared a surplus of GH¢33,408,050 in 2013 as against a surplus of GH¢57,021,025 in 2012, representing a decrease of 41.4% or GH¢23,612,975. The performance indicators are shown in Table 143. Table 143: The statement of comprehensive income for the year 2013 2013 2012 % Income GH¢ GH¢ Change Government Grant & 36,620,629 59,446,156 (38.4) Subventions Other Income 98,700 106,893 (7.7) Total Income 36,719,329 59,553,049 (38.3) Expenditure General & Administrative 3,311,279 2,532,024 30.8 Expenses Total Expenditure 3,311,279 2,532,024 30.8 Surplus 33,408,050 57,021,025 (41.4)

1488. Total Income decreased by 38.3% from GH¢59,553,049 in 2012 to GH¢36,719,329 in 2013. The main source of income for the Authority which is grant received decreased by 39.4%, and this accounted for the decrease in total income.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 353

1489. Total Expenditure increased by 30.8% from GH¢2,532,024 in 2012 to GH¢3,311,279 in 2013. This was as a result of a 1409.5% rise in seminars and conferences, and 539.4% rise in Legal Fees.

Financial position 1490. A summary of the Authority’s financial position as at 31 December 2013 is shown in Table 144.

Table 144: Statement of financial position as at 31 December 2013 2013 2012 % GH¢ GH¢ Changes Non-Current 90,660,434 57,326,144 58.2 Assets Current Assets 602,873 464,567 29.8 Current Liabilities 199,585 135,040 47.8 Non-Current 100,000 100,000 - Liabilities Net Current 403,288 329,527 22.4 Assets Net Assets 90,963,722 57,555,671 58.0 Current Ratio 3.0:1 3.4:1

1491. Non-Current Assets increased by 58.2% from GH¢57,326,144 in 2012 to GH¢90,660,434 in 2013.Advance payment to Amandi Holdings in respect of Capital Work-in-Progress for construction of rolling stock and additions to Railway Infrastructure accounted for the increase.

1492. Current Assets also showed an increase of 29.8% from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 354 GH¢464,567 in 2012 to GH¢602,873 in 2013. This rise was mainly due to 238.1% and 19.8% increases in Accounts Receivable and Bank and Cash balances respectively.

1493. Current Liabilities also went up from GH¢135,040 in 2012 to GH¢199,585 in 2013, representing 47.8% which was attributed to increases in unclaimed Board Allowances. 1494. Current Ratio of the Authority declined marginally from 3.4:1 in 2012 to 3.0:1 in 2013.

1495. Despite the decline, it still showed that the authority has the ability to discharge its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Failure to take over assets and liabilities of G.R.C.L. 1496. Section 32(1) of the Railway Act 2008 (Act 779) stipulates that on commencement of operations of the Ghana Railway Development Authority (GRDA) assets belonging to the Ghana Railway Company Limited (GRCL) shall be vested in the Authority. Again under Section 33(1) “the liabilities incurred by or any of its predecessors to any person before coming into force of this Act are assumed by the Authority subject to the right to transfer those liabilities or any portion of them to any party who has entered into a contract or other transaction with the Authority”. Our audit disclosed that the Authority had not taken over any assets or liability of the GRCL.

1497. Management’s action defeats the basic motive for establishment of the GRDA as their refusal in taking-over the assets could worsen the condition of the asset. Liabilities could also

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 355 increase as failing to honour obligations could attract interest.

1498. We recommended that the board of GRDA through the sector Ministry collaborate with the board of GRCL for implementation of all aspects of the Act.

1499. Management in response stated that inventory of assets and liabilities are currently on-going.

Railway Development Fund 1500. Section 22-25 of the Railway Act 2008, (Act 779) states “there shall be established under this Act a Railway Development Fund” Section 24 further states the sources of the Fund which among other things includes. - Levies approved by Parliament - Proceeds received by the Authority from investments - Loans granted for the purposes of the Fund - Moneys provided by the Minister for Finance with the approval of Parliament for the Fund or for a specific project under the Fund. Etc.

1501. Since the coming into force of the Act, amounts transferred into the Fund were from only sale of Tender Documents for the years 2010, 2012 and 2013 which amounted to GH¢205,993.15 as at the end of 31 December 2012. No Fund Management committee has also been appointed in accordance with section 25(1-4).

1502. The sustainability of the Fund is very risky by depending solely on income from proceeds of sales of tender documents as there was no sale in 2013 and this income source is not sufficient.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 356 Also there is no proper administration and management of the Fund due to absence of management committee.

1503. The board should ensure that a Fund management committee is set up. Whiles waiting for the setting up of the management committee, the funds should be invested in either fixed deposit or treasury bills whichever is better.

1504. According to management the Authority has now received all nominees of the committee, and plans are in place for inauguration during the year 2015.

GHANA CIVIL AVIATION AUTHORITY

Introduction 1505. This report covers the audited accounts of the Ghana Civil Aviation Authority for the financial year ended 31 December 2013.

Operational results 1506. Total Income for the period under review was GH¢72,605,743 from GH¢64,289,002 in 2012, registering a 12.9% increase. The operating income which constituted the major component income for the Authority rose by 8.8%. The details of the performance are shown in Table 145.

Table 145: Income Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Operating Income 52,540,690 48,309,672 8.8 Other Operating Income 20,065,053 15,979,330 25.6

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 357 Total Income 72,605,743 64,289,002 12.9 Expenditure Direct Operating Expenses 29,323,553 22,347,000 31.2 General & Administrative 34,750,806 31,592,329 10.0 Expenses Total Expenditure 64,074,359 53,939,329 18.8 Surplus 8,531,384 10,349,673 (17.6)

1507. Total Expenditure rose by18.8% from GH¢53,939,329 in 2012 to GH¢64,074,359 in 2013. This was due to a 31.2% and 10.0% increases in direct operating expenses and general and administrative expenses respectively.

1508. The Authority closed the 2013 financial year with an operational surplus of GH¢8,531,384 as against an amount of GH¢10,349,673 recorded in 2012 financial year, representing a 17.6% decrease in surplus.

Financial position 2013 2012 % GH¢ GH¢ Changes Non-Current 133,601,498 131,533,625 8.8 Assets Current Assets 111,870,748 112,810,564 (0.8) Current Liabilities 67,083,429 75,694,607 (11.4) Non-Current 7,344,200 6,136,349 19.7 Liabilities Net Assets 171,044,617 162,513,233 5.2 Current Ratio 1.7:1 1.5:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 358 1509. Non-Current Assets which stood at GH¢131,533,625 in 2012 went up by 1.6% to GH¢133,601,498 in 2013. This was due to the acquisition of furniture and equipment, Plant and machinery and motor vehicles during the year.

1510. Current Assets, however, decreased by 0.8% from GH¢112,810,564 in 2012 to GH¢111,870,748 in 2013. The decrease was as a result of a reduction in cash and cash equivalent from GH¢22,905,744 in 2012 to GH¢12,192,044 in 2013.

1511. Current Liabilities also decreased by 11.4% from GH¢75,694,607 in 2012 to GH¢67,083,429 in 2013. The decrease was due to 11.1% reduction in accounts payable.

1512. Non-Current Liabilities, however, increased by 19.7% from GH¢6,136,349 in 2012 to GH¢7,344,200 in 2013. The increase was mainly due to service and interest costs.

1513. The liquidity position as depicted by a current ratio of 1.7:1 (2012: 1.5:1) shows that the Authority will not be able to meet its short-term liabilities as and when it falls due.

GHANA MARITIME AUTHORITY

Introduction 1514. This report relates to the audited accounts of the Ghana Maritime Authority for the financial year ended 31 December 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 359 Operational results 1515. The Authority’s operations for the year ended with a surplus of GH¢5,770,214, an increase of 93.3% over the 2013 surplus of GH¢2,985,939. The performance indicators are shown in Table 146.

Table 146: Income and Expenditure statement for 2014 2014 2013 % Income GH¢ GH¢ Change Service Charge 7,179,563 16,800,000 (57.3) Maritime Safety Charges 18,678,074 6,108,550 205.8 Other Income 1,332,531 1,081,891 23.2 Total Income 27,180,168 23,990,441 13.3 Expenditure General and Administrative 21,111,678 20,248,249 4.3 Expenses Directors Emoluments - 618,891 - Audit Fees 75,000 54,000 38.9 Depreciation 223,276 83,362 167.8 Total Expenditure 21,409,954 21,004,502 1.9 Surplus/(Deficit) 5,770,214 2,985,939 93.3

1516. Total Income increased by 13.3% from GH¢23,990,441 in 2013 to GH¢27,180,168 in 2014. This increase was mainly due to a 205.8% increase in maritime safety charges.

1517. Total Expenditure increased by 1.9% from GH¢21,004,502 in 2013 to GH¢21,409,954 in 2014. This was mainly due to a 167.8% increase in depreciation charges.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 360 Financial position 1518. A summarized balance sheet as at 31 December 2014 is provided in Table 147.

Table 147: Financial Position as at 31 December 2014 2014 2013 % Item GH¢ GH¢ Change Non-Current Assets 530,382 433,960 22.2 Current Assets 14,238,324 8,475,777 68 Current Liabilities 227,647 138,892 63.9 Net Current Assets 14,010,677 8,336,885 158.1 Net Assets 14,541,059 8,770,845 65.8 Current Ratio 62.5:1 61.0:1

1519. Non-Current Assets increased by 22.2% from GH¢433,960 in 2013 to GH¢530,382 in 2014. This increase was mainly due to an addition of GH¢319,698 in fixed assets.

1520. Current Assets increased by 68% from GH¢8,475,777 in 2013 to GH¢14,238,324 in 2014. This increase was due to a 159.6% increase in Debtors and Prepayments.

1521. Current Liabilities increased by 63.9% from GH¢138,892 in 2013 to GH¢227,647 in 2014. The increase in Current Liabilities could be attributed to a rise in Creditors and Accruals.

1522. Net Current Assets increased significantly by 158.1% from GH¢8,336,885 in 2013 to GH¢14,010,677 in 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 361

1523. Net Assets increased by 65.8% from GH¢8,770,845 in 2013 to GH¢14,541,059 in 2014. 1524. The Authority’s liquidity position was very strong at 62.5:1 and indicates that the Authority could meet its short terms financial obligations as and when this fall due. MINISTRY OF ROADS AND HIGHWAYS

GHANA HIGHWAY AUTHORITY

Introduction 1525. This report relates to the audited accounts of the Ghana Highway Authority for the financial year ended 31 December 2013.

Operational results 1526. The Authority’s operations for the year 2013 ended with a deficit of GH¢38,883 compared with a deficit of GH¢431,805 in 2012. The performance indicators are shown in Table 148.

Table 148: Income statement for the year ended 31 December 2013 2013 2012 % Income GH¢ GH¢ Change Grant Received 123,273,939 112,885,421 9.2 Internally Generated Fund 585,197 234,135 150.0 Total Income 123,859,136 113,119,556 9.5 Expenditure Compensation/Personal 18,655,025 22,622,827 (17.5) Emolument

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 362 Goods & Services – GoG 140,625 855,199 (83.6) Goods & Services – IGF 584,547 261,994 123.1 Investment/Assets 104,517,822 89,811,341 16.4 Total Expenditure 123,898,019 113,551,361 9.1 Surplus/(Deficit) (38,883) (431,805) (91.0)

1527. Total Income rose by 9.5% from GH¢113,119,556 in 2012 to GH¢123,859,136 in 2013. This was due to an increase in Grant received of GH¢123,273,939 in 2013 as against GH¢112,885,421in 2012.

1528. Total Expenditure increased by 9.1% from GH¢113,551,361 in 2012 to GH¢123,898,019 in 2013. This was due to an increase of 123.1% in Goods and Services – IGF from GH¢261,994 in 2012 to GH¢584,547 in 2013.

Financial position Table 149: provides the Authority’s financial position as at 2013. 2013 2012 % Item GH¢ GH¢ Change Non-Current Assets 39,767,561 36,847,124 7.9 Current Assets 22,389,618 15,686,728 42,7 Current Liabilities 5,582,230 5 ,605,559 (0.4) Net current Assets 16,807,388 10,081,169 66.7 Net Assets 56,574,949 46,928,293 20.6 Current Ratio 4.0:1 2.8:1 1529. Non-Current Assets increased by 7.9% from GH¢36,847,124 in 2012 to GH¢39,767,561 in 2013. This rise was mainly due to additions of GH¢2,920,437 to the property, plant and Equipment.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 363 1530. Current Assets increased by 42.7% from GH¢5,686,728 in 2012 to GH¢22,389,618 in 2013. The increase was mainly due to a 53.3% increase in Bank balances.

1531. Current Liabilities decreased by 0.4% from GH¢5,605,559 in 2012 to GH¢5,582,230 in 2013. The reduction was due to a decrease in Accounts payable.

1532. Net Current Assets increased by 66.7% from GH¢10,081,169 in 2012 to GH¢16,807,388 in 2013.

1533. The Authority’s current ratio of 4.0:1 (2012: 2.8:1) shows that the Authority can comfortably discharge its short term debts as and when they fall due.

MANAGEMENT ISSUES

Accounting for Disposal of obsolete items 1534. The verification of stores revealed that most of the obsolete items at the Central Stores which were reported in our previous year’s report had been disposed off. In all, a total amount of GH¢55,500 was realised from the sale of the obsolete items. However, the amount was credited to the inventory account to reduce the stock figure instead of the miscellaneous revenue account. 1535. We recommended that the amounts realised from the sale of obsolete and damaged items at the stores should be treated as part of the IGF. Consequently, the 50% portion of income generated should be paid to the Ministry of Finance.

1536. Management has agreed to pay the 50% from the sale of obsolete items to the Ministry of Finance.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 364

Acquisition of Land (Head Office) 1537. We observed that there was no documentation covering the acquisition of land at the Head Office.

1538. We recommended that management should follow up on all the necessary documents on the property.

1539. Management responded that the Chief Valuer has been assigned to facilitate the land registration.

1540. As at the time of our audit in July 2014, the title deed of the land has not been acquired and the land has also not been developed. We urged management to step up efforts in acquiring the necessary documents.

GHANA PORTS AND HARBOURS AUTHORITY WEST AFRICA TRANSPORT & TRANSIT FACILITATION PROJECT (WATTFP) IDA CREDIT No. 4439 – GH

Introduction 1541. This report covers the audited financial statements of the Ministry of Roads and Highways West Africa Transport and Transit Facilitation Project (WATTFP) IDA Credit Number 4439 – GH for the year ended 31 December 2014.

Operational results 1542. Total funds received during 2014 was US$172. This was made up of other income received on IDA transaction. Table 150

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 365 shows total transactions for the year 2014 and the cumulative position to date.

Table 150: Statement of financing and expenditures for 2014 Balance Total Cumulative to Financing brought Transaction date forward for the year US$ US$ Balance brought 638,497 638,497 forward Other Income 7 172 179 Total Resources 172 638,676 Expenditures Consultancy & Training 207,577 83,667 291,244 Project Management 920 473 1,393 Total Expenditure 84,140 292,637 Bank Balance as at 31 346,035 December

1543. Total Expenditure for the year 2014 amounted to US$84,140. Prominent among the expenditure was cost of consultancy and training of US$83,667 which constituted 99.4% of total expenditure.

Financial position Presented in Table 151 is the projects financial position as at 31 December 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 366 Table 151: Financial Position as at 31 December 2014 2014 2013 % US$ US$ Change

Current Asset 346,038 430,006 (19.5)

Accumulated Non-Capital 292,637 208,497 40.4 Expenditure Total Assets 638,676 638,504 Financed by International Development 638,497 638,497 - Association (IDA) Other Income 179 7 2,457.1 638,676 638,504 1544. Current Asset reduced by 19.5% from US$430,006 in 2013 to US$346,038 in 2014. The decrease was mainly due to the balance figure between resources and expenditure which was transferred into the Special Account – IDA. Current Assets represent bank balance.

1545. Accumulated Non-Capital Expenditure also went up by 40.4% from US$208,497 in 2013 to US$292,637 in 2014. This represented payment for Non-capital items.

MINISTRY OF ROADS AND HIGHWAYS GHANA REVENUE AUTHORITY (CUSTOMS DIVISION) WEST AFRICA TRANSPORT & TRANSIT FACILITATION PROJECT (WATTFP) IDA CREDIT NO. 4439 - GH

Introduction 1546. This report relates to the audited Financial Statements of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 367 Ministry of Roads and Highways Ghana Revenue Authority (Customs Division) – West Africa Transport and Transit Facilitation Project (WATTFP) IDA Credit No. 4439 – GH for the year ended 31 December 2014.

Operational results 1547. Total Funds received during 2014 was US$1,454,810. This was made up of IDA balance brought forward of US$1,395,562 constituting 95.9% of the Total Funds received and replenishment of Special Account of US$52,815, representing 3.6% of the Funds. Table 152 shows total transactions for the year 2014 and the cumulative position to date.

Table 152: Statement of Financing and Expenditure for 2014 2013 2014 % change Special Deposit Replenishment of Special 1,395,562 1,448,377 3.8 Account Other income 6433 6433 - Total Funds/Resources 1,401,995 1,454,810 3.8 Expenditures Goods 231,546 231,546 - Consultancy and Training 479,595 657,743 37.1 Project Management 285,191 385,856 35.3 Total Expenditure 996,332 1,275,145 28.0 Bank Balance as at 31 179,665 179,665 - December

1548. Total Expenditure for the year 2014 amounted to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 368 US$1,275,145 leaving a bank balance of US$179,665 as at 31 December 2014. The total Expenditure included Consultancy and Training cost of US$657,743 which constituted 51.5% of the Total Expenditure and Project management cost of US$385,856, representing 30.2% of Total Expenditure.

1549. Presented in Table 153 is the Project’s financial position as at 31 December 2014.

Table 153: Statement of Financial Position as at 31 December 2014 2014 2013 % Income US$ US$ Change Non-Current Assets 231,546 231,546 - Current Assets 1,223,264 1,170,449 4.5 Total Assets 1,454,810 1,401,995 3.8 Financed by IDA 1,448,377 1,395,562 3.8 Other Income 6,433 6,433 - 1,454,810 1,401,995 3.8

1550. Non-Current Assets of US$231,546 remained unchanged over the period.

1551. Current Assets went up by 4.5% or US$52,815 from US$1,170,449 in 2013 to US$1,223,264 in 2014. The increase was due to an increase of US$278,814 in Accumulated Non-Capital Expenditure over the 2013 figure.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 369 MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) GOVERNMENT OF GHANA (CONSOLIDATED) FUND COMPONENT Introduction 1552. This report relates to the audited accounts of Ministry of Roads and Highways – Transport Sector Project (TSP) for the year ended 31 December 2014.

Operational results 1553. Total Funds received for the year under review, totaled GH¢2,054,946,472. This is made up of releases by the Government of Ghana amounting to GH¢916,358,221 (2013: 539,081,461) representing 44.6% of total revenue. Table 155 shows the performance indicators for the year 2014.

Table 155: Income statement for the year ended 31 December 2014 2014 2013 % Income GH¢ GH¢ Change Consolidated Fund 2,054,946,472 1,355,102,252 51.6 Expenditure Emoluments 34,321,822 32,438,785 5.8 Services 316,477 228,795 38.3 Investment – Civil Works 877,151,675 504,016,069 74.0 Donor Funded 825,382,730 432,361,439 90.9 Others 282,062,258 390,759,730 (27.8) Total Expenditure 2,019,234,962 1,359,804,818 48.5 Surplus/(Deficit) 35,711,510 (4,702,566) (859.4) 1554. Total Expenditure for the year 2014 amounted to GH¢2,019,234,962 Prominent among the expenditure was Investment – Civil Works of GH¢877,151,675 which constituted 43.4% of total

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 370 expenditure. Emoluments, services, donor funded and others also accounted for 56.6% of total expenditure.

Financial position 1555. Presented in Table 156 is the projects financial position as at 31 December 2014.

Table 156: Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Asset 2,276,815,111 1,467,597,571 55.1 Current Assets 444,254,407 464,791,375 (4.4) Current Liabilities 700,761,345 609,954,274 14.9 Accumulated Non-Capital 34,638,298 32,667,580 6 Expenses Current Ratio 0.6:1 08:1

1556. Non-Current Assets at close of 2014 amounted to GH¢2,276,815,111 as against GH¢1,467,597,571 in the preceding year representing an increase of 55.1%. The increase in Non-Current Asset which comprises investment in Civil Works was due to additions in government of Ghana and Donor funded assets.

1557. Current Assets decreased by 4.4% from GH¢464,791,375 in 2013 to GH¢444,254,407 in 2014. The decrease was mainly due to reduction in debtors/prepayment from GH¢385,242,069 in 2013 to GH¢312,744,451 in 2014 representing 18.8% decrease.

1558. Accumulated Non-Capital Expenditure also went up by 6% from GH¢32,667,580 in 2013 to GH¢34,638,298 in 2014. This

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 371 represented payment for Non-capital items.

1559. The current ratio reduced from 0.8:1 in 2013 to 0.6:1 in 2014. This depicts that the project cannot meet its short-term debts as and when they fall due since the current ratio of 0.6:1 fall below the benchmark of 2:1.

MINISTRY OF WATER RESOURCES, WORKS AND HOUSING TEMA DEVELOPMENT CORPORATION

Introduction 1560. This report relates to the audited financial statements of the Tema Development Corporation (TDC) for the year ended 31 December 2014.

Operational results 1561. Table 157 provides the performance indicators for the year under review.

Table 157: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Net Property Income 27,980,891 16,947,931 65.1 Estate Development 9,983,013 14,845,092 (32.8) Income Profit on Disposal 61,659 19,181 221.5 Investment Income 9,172,774 7,552,005 21.5 Dividend Income 3,220 2,558 25.9 Total Income 47,201,557 39,366,762 19.9 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 372 Cost of Sales 5,320,897 10,409,064 (48.9) Administrative 16,794,149 13,113,291 28.1 Expenses Income Tax Expenses 5,353,725 3,210,670 66.7 Total Expenses 27,468,771 26,733,025 2.8 Profit for the year 19,732,786 12,633,742 56.1

1562. Total Income went up by 19.9% from GH¢39,366,767 in 2013 to GH¢47,201,557 in 2014. This was largely due to 65.1%, increases in Net Property Income.

1563. Total Expenditure increased marginally by 2.8% from GH¢26,733,025 in 2013 to GH¢27,468,771 in 2014. The increase was as a result of 28.1% and 66.7% rise in Administrative Expenses and Income Tax expenses respectively.

1564. The Corporation recorded a Net profit after tax of GH¢19,732,786 in 2014 as against GH¢12,633,742 in 2013 representing 156.1% improved performance.

Financial position 1565. Details of the Corporation’s Financial Position as at 31 December 2014 are shown in the Table 158 below 2014 2013 % GH¢ GH¢ Change Non-Current Assets 36,773,030 35,546,542 3.5 Current Assets 112,219,256 78,459,585 43.0 Current Liabilities 32,910,089 29,958,370 9.9 Non-Current Liabilities 1,250,049 1,250,049 - Net Current Assets 79,309,167 48,501,215 63.5

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 373 Net Assets 114,832,148 82,797,708 38.7 Current Ratio 3.4:1 2.6:1

1566. Non-Current Assets rose by 3.5% from GH¢35,546,542 in 2013 to GH¢36,773,030 in 2014. The increase was largely due to additions to Investment Properties under construction.

1567. Current Asset stood at GH¢112,219,256 in 2014 as against GH¢78,459,585 in 2013 representing an increase of 43%. The rise was due to increase in Account Receivable and Prepayments by 167.3%.

1568. Current Liabilities also increased by 9.9% from GH¢29,958,370 in 2013 to GH¢32,910,089 in 2014 as a result of 105.2% increase in Tax Liability. 1569. The Current Ratio for the year 2014 was 3.5:1 as compared to 2.6:1 for the previous year. This indicates that the corporation’s ability to meet its short-term obligations as and when it falls due has improved.

MANAGEMENT ISSUES

Reconciliation balances with Standard Chartered Bank 1570. The Board passed a resolution to close the following bank accounts at Standard Chartered for arbitrary charges imposed by the bank. Accounts Type Account Number Amount

a. SCB – Offshore – Dollar 8700219856800 US$100,981.82 b. SCB – Forex Dollar 8701519856800 US$ 9,157.42 c. SCB – Offshore-Pound 2800219856800 £11,507.23 d. SCB – Forex Pound 2801519856800 £ 356.79

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 374 e. SCB – Forex Euro 9301519856800 € 163.27 f. SCB – Cedi 0100119856800 GH¢24,978.74

1571. We did not sight any correspondence to the effect that the bank has closed the accounts and transferred the balances to Tema Development Corporation (TDC).

1572. We recommended that management take the necessary steps to follow this issue to recover these monies from the Bank.

1573. According to management, TDC lawyers are pursuing the recovery of the balances from the bank.

Adjei Kojo Lands not included in TDC schedules of assets 1574. We noted that even though TDC are now in possession of Adjei Kojo land of total acreage of 111.53 which is made up of about 839 uncommitted plots, these properties were not included in the schedule of TDC assets.

1575. We recommended to management to update its assets register by including these properties for close monitoring.

1576. According to management records of these plots are maintained at the Estates Department.

STATE HOUSING COMPANY LIMITED (SHC)

Introduction 1577. This report covers the audited accounts of State Housing Company Limited for the year ended 31 December 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 375 Operational results 1578. The summary of the Company’s operations are provided in Table 159.

Table 159: Income statement for 2013 Item 2013 2012 % GH¢ GH¢ Change Turnover 3,066,129 1,785,154 71.8 Cost of Sales 2,142,307 1,323,779 61.8 Gross Profit 923,822 461,375 100.2 Other Income 6,075,037 9,196,292 (33.9) Staff Cost 3,716,745 2,920,949 27.2 Selling, Admin & 2,479,810 1,880,056 31.9 Distribution Cost Net Finance 108,680 10,499 935.1 Income Net Profit 910,984 4,867,161 (81.3)

1579. Turnover which consisted of sale of houses registered a 71.8% rise from GH¢1,785,154 in 2012 to GH¢3,066,129 in 2013.

1580. Other Income decreased by 33.9% from GH¢9,196,292 in 2012 to GH¢6,075,037 in 2013. This resulted largely from a 93.1% reduction in Development/Plot Release Fee and a 68.6% drop in Leasehold income. The performance indicators are shown in Table…

1581. Staff Cost went up by 27.2% from GH¢2,920,949 in 2012 to GH¢3,716,745 in 2013. The increase was due mainly to 41.6% increase in salaries and wages from GH¢2,354,198 in 2012 to GH¢3,333,812 in 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 376 1582. Net Profit decreased by 81.3% from GH¢4,867,161 in 2012 to GH¢910,984 in 2013.

Financial position 1583. Presented in Table 160 is the financial position of the company as at 31 December 2013

Table 160: Balance sheet as at 31 December 2013 Item 2013 2012 % GH¢ GH¢ Change Non-current Assets 4,569,957 3,675,013 24.3 Current Assets 14,893,900 12,756,852 16.8 Current Liabilities 11,644,393 9,502,085 22.5 Non-current Liabilities 915,943 937,243 (2.2) Net Assets 6,903,521 5,992,537 15.2 Current Ratio 1.3:1 1.3:1

1584. Non-Current Assets of the Company increased by 24.3% from GH¢3,675,013 in 2012 to GH¢4,569,957 in 2013. This was due to additions to property, plants and equipment and a 33.5% rise in development expenditure.

1585. Current Assets which stood at GH¢12,756,852 in 2012 increased by 16.8% to GH¢14,893,900 in 2013. This resulted from increases in stock and work-in-progress and debtors and pre- payments.

1586. Current Liabilities also increased by 22.5% from GH¢9,502,085 in 2012 to GH¢11,644,393 in 2013. This was due mainly to a 24.8% rise in trade and other payables.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 377 1587. The liquidity ratio of the Company stood at 1.3:1 for the two consecutive years an indication that the company cannot readily meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Trade Debtors 1588. We observed that trade debtors of GH¢557,707 for Greater Accra are aging debtors which has been in the books since the year 2000. There has been no movement in the trade debtor’s balance over the last three years.

1589. This lapse arose because management failed to put in place a proper credit policy. We indicated that this ineffective debt recovery culture impacts adversely on cash flow and on working capital management.

1590. We recommended that debt recovery efforts should be strengthened to ensure trade debtors comply with the terms stipulated. Also, management should analyse the ageing debtors and take action on the irrecoverable debts.

1591. Management responded that the debts have been in the books for over 10 years and will recommend to the Board to write them off and pursue the debts that can be recovered.

Selling Prices and Profit Margins 1592. We observed that the prices at which two houses were sold were below the approved selling prices. Secondly profit margins realized from the sale of these were below the Company’s profit

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 378 margins threshold of 40% as a result of high cost of building houses. Details are shown Table 161 below:

Date Customer House Type Prevailing Selling Total Gross GP No. Mkt Price Price Cost Profit Margin GH¢ GH¢ GH¢ GH¢ GH¢ 24/8/13 Margaret C23 SH.3 73,824 57,200 60,961 (3,761) (6.58) Konto 31/11/12 Hilda B32 SH.7 114,240 95,180 83,696 11,484 12.07 Nyarko

1593. This was as a result of inappropriate pricing of houses constructed and/or lax of cost control on the part of management.

1594. This can result in loss of income to the company leading to liquidity problems.

1595. We urged management to institute appropriate internal control to ensure that all houses are sold at current prices and proper cost management system is introduced to reduce the cost of building houses. Kagyase Land Dispute 1596. We observed that a land dispute at Kagyase (the only land available for building in the zone) has affected the Company’s operation in the Ashanti Region. We witnessed a large portion of the land had been occupied by encroaches on our site visit.

1597. This situation impacts adversely on the operational and financial sustainability of the zone.

1598. We recommended to management to secure the land in the zone as these lands are strategically important to the revamping of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 379 the company.

Accumulated Balance on Statutory Deductions-GH¢273,854.00 1599. We noted that accumulated balance on statutory deductions totaling GH¢273,854.00 had not been settled. The details are shown Table 162 below:

Item Head Eastern Ho Zone Total Office/ Zone GH¢ GH¢ GH¢ Greater GH¢ Accra GH¢ WHT 87,723 45,351 - 29,900 162,974 PAYE - 77,664 16,678 - 94,342 SSF - 13,776 2,762 - 16,538 Total 87,723 136,791 19,440 29,900 273,854

1600. The non-payment of statutory deductions is a breach of section 87(1) of the Internal Revenue Act, Act 2000 which might attract penalties. The non-payment of employees’ contributions towards the social security fund might deny staff of their future benefits.

1601. We urged management to ensure that all outstanding statutory deductions are paid without further delay.

1602. Management gave the assurance that effort will be made to settle all outstanding deductions.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 380 WATER RESOURCES COMMISSION

Introduction 1603. This report covers the audited accounts of the Water Resources Commission for the year ended 31 December 2014.

Operational results 1604. Total Income of the Commission decreased by 23.6% from GH¢5,902,469 in 2013 to GH¢4,508,383 in 2014. The decrease was as a result of a 41.3% fall in other income from GH¢4,240,999 in 2013 to GH¢2,490,179 in 2014. Table 163 shows the performance components for the review period.

Table 163: Income statement for 2014 2014 2013 % Income GH¢ GH¢ Change Income 2,018,204 1,661,470 21.5 Other Income 2,490,179 4,240,999 (41.3) Total Income 4,508,383 5,902,469 (23.6) Expenditure General 3,776,578 4,054,412 (6.9) Administrative Expenses Surplus 731,805 1,848,057 (60.4)

1605. Total Expenditure for the period under review decreased marginally by 6.9% from GH¢4,054,412 in 2013 to GH¢3,776,578 in 2014. Reduction in Community Support and Consultancy Service

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 381 fees mainly accounted for the fall in expenditure.

1606. The Commission recorded a surplus of GH¢731,805 in 2014 as compared to GH¢1,848,057 recorded in 2013, a decrease of 60.4%. The decline in other income contributed largely to the decrease.

Financial position 1607. Table 164 shows the financial position of the Commission for the year under review.

Table 164: Balance Sheet as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 570,958 585,661 (2.5) Current Assets 4,907,263 3,946,505 24.3 Current Liabilities 248,563 34,313 624.4 Net Assets 5,229,658 4,497,853 16.3 Current Ratio 19.7:1 115.0:1

1608. Non-Current Assets of the Commission decreased marginally by 2.5% from GH¢585,661 in 2013 to GH¢570,958 in 2014. The decrease was due to the depreciation charges on fixed assets for the year.

1609. Current Assets, however, rose by 24.3% from GH¢3,946,505 in 2013 to GH¢4,907,263 in 2014. This was due to a 36.1% increase in Accounts Receivables and a 21.2% increase in cash and cash equivalents. 1610. Current Liabilities increased by 624.4% from GH¢34,313 in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 382 2013 to GH¢248,563 in 2014. Increases in sundry payables from GH¢12,719 in 2013 to GH¢225,063 in 2014 accounted for the rise.

1611. The current ratio of 19.7:1 (2013: 115.0:1) indicated a favourable liquidity position of the Commission.

ARCHITECTURAL & ENGINEERING SERVICES LTD

Introduction 1612. This report covers the audited Financial Statements of Architectural and Engineering Services Limited for the financial year ended 31 December 2014.

Operational results 1613. Architectural and Engineering Services Limited (AESL) posted a loss of GH¢247,022 in 2014. This is in variation from the profit of GH¢818,916 recorded in 2013 representing 130.2% decline in performance. Table 165 below is the detailed analysis of the AESL performance for 2014 and 2013 comparatives.

2014 2013 % Income GH¢ GH¢ Change Turnover 10,311,677 9,109,191 13.2 Other Income 345,652 529,314 (34.7) Total Income 10,657,329 9,638,505 10.6 Expenditure Administrative & 10,904,351 8,569,883 27.2 General Expenses Profit/(Loss) Before (247,022) 1,068,622 (123.1)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 383 Tax Income Tax - (249,706) - Profit for the Year (247,022) 818,916 (130.2)

1614. Total Income which is made up of Fees and Other Incomes increased by 10.6% from GH¢9,638,505 in 2013 to GH¢10,657,329 in 2014. The increase was due to a 13.2% increase in Fees over the 2013 figure of GH¢9,109,191.

1615. Total Expenditure increased by 27.2% from GH¢8,569,883 in 2013 to GH¢10,904,351 in 2014. This was due to 79%, increase in Electricity and Water.

Financial position 1616. The detailed analysis of the financial position of AESL for 2014 and its comparatives figures from 2013 are shown in the Table 166 below.

2014 2013 % GH¢ GH¢ Changes Non-current Assets 11,129,622 10,921,318 1.9 Current Assets 15,055.197 13,481,991 11.7 Non-current Liabilities - 23,323 - Current Liabilities 9,423,126 7,371,271 27.8 Net Current Assets 5,632,071 6,110,720 (7.8) Net Assets 16,761,693 17,008,715 (1.5) Current Ratio 1.6:1 1.8:1

1617. Non-Current Assets rose marginally by 1.9% from GH¢10,921,318 in 2013 to GH¢11,129,622 in 2014. The increase was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 384 due to additions to Motor Vehicle and Furniture and Equipment. 1618. Current Assets increased by 11.7% from GH¢13,481,991 in 2013 to GH¢15,055,197 in 2014. The increase was as a result of 56.1% and 12.5% increase in Cash/ bank balances and Accounts Receivable balance respectively.

1619. Current Liabilities also increased from GH¢7,371,271 in 2013 to GH¢9,423,126 in 2014 representing 27.8% rise. This increase was mainly due to 144.3% increase in Bank overdraft and 29.3% increase in Account Payable.

1620. The liquidity position stood at 1.6:1 in 2014 as against 1.8:1 in 2013, falling below the benchmark of 2:1. This put the AESL in an unfavourable position to meet its short-term obligations when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 385 MINISTRY OF INFORMATION NEW TIMES CORPORATION

Introduction 1621. This report covers the audited accounts of the New Times Corporation for the financial years ended 31 December 2013 and 2014.

Operational results 1622. Total Income made up of turnover and Other Income decreased by 1.0% from GH¢12,316,811 in 2013 to GH¢12,189,899 in 2014. The decrease was caused by 1.6% fall in the turnover of the Corporation which recorded GH¢12,024,424 in 2014 as against GH¢12,214,874 in 2013. Presented in Table 167 are the performance indicators.

Table 168: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Turnover 12,024,424 12,214,874 (1.6) Other Income 165,475 101,937 62.3 Total Income 12,189,899 12,316,811 (1.0) Expenditure Cost of Production 6,202,836 6,271,669 (1.1) General Admin. & 5,763,152 5,526,593 4.3 Sell Expenses Provision for 75,540 132,652 (43.1) Income Tax Total Expenditure 12,041,528 11,930,914 0.9 Net Profit 148,371 385,897 (61.6)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 386 1623. Total Expenditure of the Corporation for the year under review increased marginally by 0.9% from GH¢11,930,914 in 2013 to GH¢12,041,528 in 2014. The increase was due to a 4.3% rise in general administrative and selling expenses.

1624. The year’s operational activities ended with a drop in the Net profit after tax by 61.6% from GH¢385,897 in 2013 to GH¢148,371 in 2014.

Financial position 1625. The financial position of the Corporation for the period is shown in Table 169.

Table 169: Financial position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current 2,119,276 2,327,151 (8.9) Assets Current Assets 7,110,492 5,110,430 39.1 Current Liabilities 6,810,298 5,166,481 31.8 Net Assets 2,419,470 2,271,099 6.5 Current Ratio 1.0:1 1.0:1

1626. The Corporation’s non-current assets decreased by 8.9% from GH¢2,327,151 in 2013 to GH¢2,119,276 in 2014. This was due to the depreciation charged for the year.

1627. Current Assets which stood at GH¢5,110,430 in 2013 increased by 39.1% to register GH¢7,110,492 in 2014. This was as a result of 45.1% increase in trade debtors, and 72.0% increase in debit balances/prepayments.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 387 1628. Current Liabilities also recorded an increase of 31.8% from GH¢5,166,481 in 2013 to GH¢6,810,298 in 2014. The increase was due to 51.4% increase in Sundry Creditors and 64.9% increase in trade creditors.

1629. The liquidity position of the Corporation as depicted by the current ratio of 1.0:1 (2013: 1.0:1) is unhealthy. This implies that the Corporation may not be in a position to meet its short- term obligations as and when they fall due.

MINISTRY OF COMMUNICATION

NATIONAL COMMUNICATIONS AUTHORITY

Introduction 1630. This report relates to the audited Financial Statements of the National Communications authority (NCA) for the year ended 31 December 2014.

Operational results 1631. The Authority made a surplus of GH¢100,432,516 in 2014 as compared with a surplus of GH¢42,256,365 in 2013 representing 137.7% increase. The summary of the Authority’s Operational Performance for the review period is shown in Table 170.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 388 Table 171: Income statement for 2014 2014 2013 % GH¢ GH¢ Change Revenue 86,783,061 55,561,319 56.2 Other Income 70,143,445 29,774,142 135.6 Total Income 156,926,506 85,335,461 83.9 Expenditure General & 56,493,990 43,079,096 31.1 Administrative Expenses Surplus 100,432,516 42,256,365 137.7

1632. Total Income increased by 83.9% from GH¢85,335,461 in 2013 to GH¢156,926,506 in 2014. This was due to 56.2% increase in Revenue and 135.6% increase in Other Income.

1633. Total Expenditure (General and Administrative Expenses) rose by 31.1% from GH¢43,079,096 in 2013 to GH¢56,493,990 in 2014. The rise was due to increases in all expenditure items except contribution to international bodies.

Financial position 1634. The summarised Financial Position of the Authority is shown in Table 171.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 389 Table 171: Financial position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets (PPE) 95,034,376 73,002,202 30.2 Current Assets 219,612,753 142,141,394 54.5 Current Liabilities 52,127,466 35,630,202 46.3 Net Current Assets 167,485,287 106,511,192 57.2 Net Assets 249,294,926 168,086,535 48.3 Current Ratio 4.2:1 4.0:1

1635. Non-Current Assets rose by 30.2% from GH¢73,002,202 in 2013 to GH¢95,034,376 in 2014. The rise was as a result of the acquisition of additional Assets.

1636. Current Assets stood at GH¢219,612,753 in 2014 as against GH¢142,141,394 in 2013, representing an increase of 54.5% or GH¢77,471,359 over the previous year’s amount.

1637. The increase was due to 90.3%, and 17.4% increases in Short-term Investment and Cash and Cash Equivalent respectively over the 2013 figures.

1638. Current Liabilities also went up by 46.3% from GH¢35,630,202 in 2013 to GH¢52,127,466 in 2014. This was due to 51.5% increase in Account Payable.

1639. The Liquidity Position of the Authority as measured by current ratio improved marginally from 4:1 in 2013 to 4.2:1 in 2014. This indicates that the Authority has a favourable liquidity position to meet its short-term obligations as and when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 390 MANAGEMENT ISSUES

Non-Renewal of Licenses 1640. It is a requirement of the authority for license issued to operators of TV Commercial FM Stations and Internet Service providers (ISPs) to be renewed prior to the expiry of such licenses. These Licenses are for five (5) years duration.

1641. Our follow up review of records on renewal of licenses issued by the authority as at year ended 2014 revealed the following.

Internet Service Date Date Remarks Provider (ISPs) Authorised Expired 1st African 26/9/2005 25/9/2010 Not Communication Co. Renewed Gh. Ltd. Giant International 7/3/2000 6/3/2005 Not Renewed Easy Net Company 10/7/2000 9/7/2005 Not Limited Renewed Engineering System 21/8/2000 20/8/2005 Renewed & Service Limited 11/12/09 Infinite Stream 30/11/2004 29/11/2008 “ (Burst Africa Ltd.) “ Internet Data 29/1/1999 28/1/2004 Provisional Network Ghana Ltd. Renewal Kalls-Inn (Ryma 11/3/2005 10/3/2010 Not Telecommunications Renewed Ltd Landelta 1/12/2004 30/11/2009 Not Communications, Renewed Ltd. Netplux Limited 21/3/2003 20/3/2008 Not

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 391 (FormelyAfriweb) Renewed Sat Consult Limited 1/12/2004 30/11/2009 Not Renewed Tandem Networks 2/2/2006 1/2/2011 Not Ltd. Renewed Teledata ICT 3/8/2005 2/8/2010 Not Limited Renewed West African 9/3/2005 8/3/2010 Not Network Limited Renewed Wice-Net Ghana 31/3/2006 30/3/2011 Not Limited Renewed

1642. We continue to urge management and the Board of Directors to quicken the process of having these expired licenses renewed.

1643. This will ensure that all operators will operate legally and the associated revenue recognized.

1644. According to management, the Authority has not renewed the listed operators whose licenses have expired because they are yet to meet the requirements for renewal such as the provision of Tax Clearance Certificate, SSNIT Payments etc.

Capital Commitment in excess of Authorised Amount 1645. Best practice requires that payments on Capital Projects should not exceed the approved amount (Budget) by the approving authority.

1646. Contrary to this, we noted that Payments on Capital projects as at year end 31 December, 2014, exceeded the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 392 authorized amounts as approved by the Central Tender Board by GH¢1,279,895. This was as a result of price variations due to the fall in value of the Ghana Cedi.

1647. Work at the Kumasi and Tamale site have been completed and being used by the Authority’s Staff in these Zones. The Tamale office was commissioned on January 16, 2014. Kumasi is yet to be commissioned.

1648. The office complex at the Airport city has been completed and was handed over on the 26 of May, 2015. As at the time of our visit in June 2015, painting, fixing of fixtures and fittings were being carried out on the Takoradi project. Revised contract sum and expenditure as at the end of the year are in Table 172 below.

Contract Payment Balance Project Sum 31/12/2014 31/12/2014 GH¢ GH¢ GH¢ Airport City 63,123,111 59,495,875 3,627,236 Takoradi Office 8,524,908 6,019,917 2,504,991 Kumasi Office 5,516,082 5,856,781 (340,699) Tamale Office 6,216,624 7,155,820 (939,196) Total 83,380,725 78,528,393 4,852,332

1649. We urge management to liaise with the consultant on the projects as well as the contractors for the Takoradi and Airport City projects to come out with the necessary revision to the cost to completion for effective budgeting and also to reflect the true Capital Commitment. 1650. As per above schedule, amount committed but not yet spent on the Airport City and Takoradi projects as at the year

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 393 ended amounted to GH¢6,132,277 while amount spent in excess of commitment on the Kumasi and Takoradi office projects amounted to GH¢1,279,895.

1651. Management in response said the audit observation was noted and that the Project Consultant has been informed to examine the outstanding projects taking into account variations due to price fluctuations.

GHANA PUBLISHING COMPANY LIMITED

Introduction 1652. This report relates to the audited accounts of the Ghana Publishing Company Limited for the financial year ended 31 December 2012.

Operational results 1653. Total Income for the year under review increased by 30.4% from GH¢3,515,789 in 2011 to GH¢4,583,822 in 2012. The rise was due to 30.0% and 66.3% increases in turnover and other income respectively. Details of the Company’s performance indicators for the period are presented in Table 173.

Table 173: Income Statement for 2012 2012 2011 % Income GH¢ GH¢ Changes Turnover 4,530,162 3,483,525 30.0 Other Income 53,660 32,264 66.3 Total Income 4,583,822 3,515,789 30.4 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 394 Operating Cost 2,875,960 2,164,160 32.9 Personnel Cost 1,068,066 807,820 32.2 Financial and 37,749 17,025 121.7 Professional General & 713,906 586,519 21.7 Administrative Expenses Provision for Tax 5,254 6,750 (22.2) Total Expenditure 4,700,935 3,582,274 31.2 Net Loss (117,112) (66,485) 76.2

1654. Total Expenditure also went up by 31.2% from GH¢3,582,274 in 2011 to GH¢4,700,935 in 2012. Increases in operating cost, personnel cost and general and administrative expenses accounted the rise in total expenditure.

1655. The Company’s operations for the year 2012 ended with an increase in the net loss, from GH¢66,485 in 2011 to GH¢117,113 in 2012 or 76.2%.

Financial position 1656. The Company’s financial position as at 31 December 2012 is presented in Table 174.

Table 174: Balance Sheet as at 31 December 2012 2012 2011 % GH¢ GH¢ Changes Non-Current 214,630 243,023 (11.7) Assets Current Assets 1,935,740 1,153,696 67.8 Current Liabilities 2,123,284 1,252,521 69.5

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 395 Net Assets 548,202 665,314 (17.6) Current Ratio 0.9:1 0.9:1

1657. Non-Current Assets registered a drop of 11.7% from GH¢243,023 in 2011 to GH¢214,630 in 2012. This was mainly due to depreciation charge for the year.

1658. Current Assets, however, increased by 67.8% from GH¢1,153,696 in 2011 to GH¢1,935,740 in 2012. The rise was as a result of an increase in accounts receivable.

1659. Current Liabilities also increased by 69.5% from GH¢1,252,521 in 2011 to GH¢2,123,284 in 2012. An increase of 137.7% in accounts payable and accruals accounted for the rise.

1660. The Current ratio remained the same at 0.9:1 in both 2012 and 2011. This implied that the Company would not be able to meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Non-payment of withholding tax – GH¢2,848.44 1661. We noted that, withholding tax deducted totaling GH¢2,278.44 from Allowances paid had not been remitted to the Ghana Revenue Authority (GRA) contrary to Section 87 of Act 592.

1662. We also noted that the Company failed to deduct and remit the required withholding tax from the payments made to suppliers of goods and services. The withholding tax involved was GH¢570.00.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 396 1663. The disregard of the relevant provisions of Act 592 could result in the loss of tax revenue to the state.

1664. We therefore, recommended that, tax withheld should immediately be remitted to the GRA and in future withholding taxes should be deducted from payment to suppliers for goods and services.

1665. Management responded that steps are being taken to pay all withholding taxes to Ghana Revenue Authority (GRA).

GHANA POST COMPANY LIMITED Introduction 1666. This report covers the audited accounts of the Ghana Post Company Limited for the financial year ended 31 December 2013.

Operational results 1667. Total Income for the period reviewed increased from GH¢30,378,547 in 2012 to GH¢37,001,312 in 2013. This represents a 21.8% rise. The increase in total income was as a result of a significant increase in other income by 133.8%. The operational performance of Company is detailed in Table 175. Table 175: Income Statement for 2013 2013 2012 % Income GH¢ GH¢ Changes Operating Income 35,514,109 29,375,112 20.9 Other Income 1,443,821 617,548 133.8 Exchange Gain 43,382 385,887 (88.8) Total Income 37,001,312 30,378,547 21.8 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 397 Operating Cost 24,737,697 20,446,702 21.0 General, Selling & 11,800,955 9,659,169 22.2 Admin. Expenses Finance Charges 53,296 47,264 12.8 Taxation 315,839 154,387 104.6 Total Expenditure 36,907,787 30,307,522 21.8 Profit 93,525 71,025 31.7

1668. Total Expenditure also increased by 21.8% from GH¢30,307,522 in 2012 to GH¢36,907,787 in 2013. Increases in General Selling and Administrative Expenses and Taxation contributed to the increase in expenditure.

1669. The Company made a net profit of GH¢93,525 in 2013 as against a net profit of GH¢71,025 in 2012, representing a rise of 31.7%.

Financial position 1670. Presented in Table 176 is the financial position of the Company.

Table 176: Balance Sheet as at 31 December 2013 2013 2012 % GH¢ GH¢ Changes Non-Current Assets 18,264,935 14,938,385 22.3 Current Assets 17,998,627 13,112,969 37.3 Current Liabilities 14,553,173 11,969,366 21.6 Non-Current 8,863,521 5,296,787 67.3 Liabilities Net Assets 12,846,868 10,785,201 19.1 Current ratio 1.2:1 1.1:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 398 1671. Non-Current Assets increased by 22.3% from GH¢14,938,385 in 2012 to GH¢18,264,935 in 2013. This resulted from the Company’s investment in Capital projects and the acquisition of motor bikes, vehicles and office equipment during the year.

1672. Current Assets also increased by 37.3% from GH¢13,112,969 in 2012 to GH¢17,998,627 in 2013. This was as a result of increases in trade and sundry debtors and cash and cash equivalents.

1673. Current Liabilities went up by 21.6% from GH¢11,969,366 in 2012 to GH¢14,553,173 in 2013. The rise in accounts payable and other credit balances mainly accounted for this.

1674. Non-Current Liabilities also increased significantly by 67.3% from GH¢5,296,787 in 2012 to GH¢8,863,521 in 2013. A government loan of GH¢4.85 million (2012: GH¢2 million) contracted by the Company in 2013 accounted for the rise. 1675. The liquidity outlook as depicted by a current ratio of 1.2:1 (2012: 1.1:1) did not appear favourable and an indication that the Company cannot meet its short-term obligations when they fall due.

MANAGEMENT ISSUES

Head Office No identification tags on Company assets 1676. The verification of the Company’s assets revealed that, Ghana Post Company Limited owns a large number of assets at

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 399 several different locations but there were no company identification marks or tags on some of these assets.

1677. The risk of theft of company assets may go undetected as there is no identification marks or tags on the assets to indicate Company’s ownership.

1678. Management should ensure that all assets owned by the Company are appropriately identified with tags or identification marks for easy monitoring and avoidance of unauthorized disposition of these assets.

1679. Management responded that, the Estates department is in process of providing a three year tagging strategy for ten regional heads and operations department.

No Title Deeds to Landed properties of the company 1680. Despite our previous comment in our last audit report, Ghana Post is yet to acquire Title Deeds for all their landed properties across the country. 1681. We recommended that efforts should be made by management to register all landed properties of the company. This must be done within a defined time frame.

1682. Management responded that in 2013/2014, four properties were submitted to the Lands commission to process title deeds for ownership. Management plans to contact the Lands Commission for selected properties for rebate charges in 2014/2015.

1683. Management is also soliciting a proposal to perfect

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 400 titles to all HIPC and CIC properties through the Ministry of Communication (MOC) to GIFEC for the funding of the title to these properties.

POSTAL AND COURIER SERVICE REGULATORY COMMISSION

Introduction 1684. This report relates to the audited accounts of the Postal and Courier Service Regulatory Commission for the period 1 January 2012 to 31 December 2013

Operational results 1685. The total income of the Commission rose by a margin of 45.2% from GH¢319,993 in 2012 to GH¢463,301 in 2013. This was mainly due to a 236.6% rise in Internally Generated Fund from GH¢99,704in 2012 to GH¢335,564 in 2014.

Income 2013 2012 % (GH¢) (GH¢) Change Government 127,737 219,489 Subvention (41.8) Internally Generated 335,564 99,704 Fund 236.6 Total 463,301 319,193 45.2 Expenditure Employees 127,737 192,600 Compensation (33.7) Administrative 291,692 234,293 Activity 24.5 Service Activity 9,986 63,088 (84.2) Total 429,415 489,981 (12.4) Surplus(Deficit) 33,886 (170,788) (120)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 401

1686. The Commission’s total expenditure fell by a margin of 12.4% from GH¢489,981 in 2012 to GH¢429,415 in 2013. This was as a result of a fall in employees’ compensation and Service Activity. The Commission registered a surplus of GH¢33,886 in 2013.

Financial position Balance sheet as at 31 December 2013 Items 2013 2012 % GH GH¢ Change Non–Current Assets 85,676 85,676 - Current Assets 252,705 231,040 9.4% Current Liabilities 4,548 17,197 (73.5) Net Asset 333,405 299,519 11.3 Liquidity ratio 55.6:1 13.4:1

1687. The Non-Current Assets remains the same over the years as a result of non-depreciation of assets. Current Assets also increase by 9.4% from GH¢231,040 in 2012 to GH¢252,705 in 2013. The change was as a result of disclosure of the debtors which were not disclose over the years. Current liabilities fell by a margin of 73.5% from GH¢17,197 in 2012 to GH¢4,548 in 2013. This was mainly due to payment of Withholding tax in arrears.

1688. Liquidity of the Commission remains strong as it registered a small margin of Liability over the period.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 402 MANAGEMENT ISSUES

Provision for Depreciation of Fixed Asset 1689. Section 53 of Financial Administration Act, 2003, Act 654, state that, “The Minister may upon recommendation of the governing body of a corporation direct the corporation to make provision for reserves, for extensions, depreciation of assets, for uncollectable debts and for other purposes.”

1690. Examination of the fixed assets revealed that the Postal & Courier Service Regulatory Commission does not have any policy on depreciating its fixed assets.

1691. Failure to depreciate the fixed assets has resulted in overstatement of fixed assets value in the financial statement.

1692. We advised and management accepted to expedite action in deciding on the depreciation policy without further delay. MINISTRY OF FOOD AND AGRICULTURE

IRRIGATION DEVELOPMENT AUTHORITY

Introduction 1693. This report relates to the audited accounts of the Irrigation Development Authority for the financial year ended 31 December 2012.

Operational results 1694. The Authority’s operations for the year ended with a deficit of GH¢138,538 as against a surplus of GH¢262,671 recorded in 2011. Table 177 shows the performance indicators

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 403 for the year under review.

Table 177: Income statement for the year ended 31 December 2012 2012 2011 % Income GH¢ GH¢ Change Government Subvention 14,661,942 11,665,029 25,7 Other Income 411,207 212,258 93.7 Total Income 15,073,149 11,877,287 26.9 Expenditure Personnel Emoluments 5,912,224 2,776,681 112.9 Travelling and Transport 285,492 271,908 5.0 Repairs and Replacement 137,284 95,311 44,0 General Expenses 449,906 336,698 33.6 Investment (Dam 8,426,781 8,134,018 3.6 Rehabilitation) Total Expenditure 15,211,687 11,614,616 31.0 Surplus/(Deficit) (138,538) 262,671 (152.7) 1695. Total Income increased by 26.9% from GH¢11,877,287 in 2011 to GH¢15,073,149 in 2012. This increase was due to a 93.7% increase in other income from GH¢212,258 in 2011 to GH¢411,207 in 2012.

1696. Total Expenditure increased by 31.0% from GH¢11,614,616 in 2011 to GH¢15,211,687 in 2012. This increase was due to 112.9% increase in Personnel Emoluments and 44% increase in Repairs and Replacement expenses.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 404 Financial position Table 178: provides the Authority’s financial position as at 2012 2012 2011 % Item GH¢ GH¢ Change Non-Current Assets 806,785 793,313 1.7 Current Assets 856,901 624,631 37.2 Current Liabilities 543,292 158,492 242.8 Net Current Assets 313,609 466,139 (32.7) Net Assets 1,120,394 1,259,452 (11.0) Current Ratio 1.6:1 3.9:1

1697. Non-Current Assets increased by 1.7% from GH¢793,313 in 2011 to GH¢806,785 in 2012. The increase was due to an addition of GH¢12,000 to Non-Current Assets as a result of purchases of fixed assets.

1698. Current Assets increased by 37.2% from GH¢624,631 in 2011 to GH¢856,901 in 2012. The increase was mainly due to 454.8% increase in Receivable and 27.2% increase in cash and bank balances.

1699. Current Liabilities increased by 242.8% from GH¢158,492 in 2011 to GH¢543,292 in 2012. This was mainly due to 298.1% increase in payables from GH¢128,406 in 2011 to GH¢511,129 in 2012.

1700. The liquidity status of the Authority as depicted by the current ratio of 1.6:1 (2011: 3.9:1) is unhealthy. This implies that the Authority may not be in a position to meet its short- term obligation as and when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 405 MANAGEMENT ISSUES

Non procurement of Items from VAT registered organizations 1701. In contravention to Regulation 183 (4) of the FAR, 2004 (L.1.1802), we observed that items totaling GH¢10,147.20 procured were not made from VAT registered organizations as shown in Table 179.

Amount

Date PV No. GH¢ 02/02/12 8468 794.20 07/02/12 8712 2,889.00 26/07/12 7623 4,699.00 23/08/12 7657 1,765.00

1702. We recommended that management should comply with the Financial Regulation and only procure from VAT registered suppliers.

1703. Management responded that they have taken note and will comply with the Financial Regulations when making procurement in the future. Unbanked office cash – GH¢2,430.00 1704. Contrary to Regulation 18 of the FAR 2004, we observed that an amount of GH¢2,430 described as office cash had not been banked at the time of our audit. Also the cash was not produced for our cash count. This was due to non- compliance of the regulation.

1705. We recommended that Regulation 18 of the FAR should be complied with in the future.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 406 1706. Management responded that they have taken note of our recommendation.

MINISTRY OF FOOD AND AGRICULTURE PROGRAMME FOR THE PROMOTION OF PERENNIAL CROPS IN GHANA (AFD LOAN NO. 6008.01 L, GRANT NO. CGH6008.02 M AND KFW LOAN BMZ – NO. 2005 65572)

Introduction 1707. This report relates to the audited financial statements of the Ministry of Food and Agriculture -Programme for the Promotion of Perennial Crops in Ghana for the year ended 31 December 2014.

Operational results 1708. Total funds received for the year under review, totaled €1,319,923. This was made up of Designated Account (Special Account) of €948,251 which represented 71.8% of the total fund, 13.4% or €177,379 being funds for Direct Payments and Counterpart Contribution of €194,292 representing 14.7%. Table 180 shows the performance indicators for the year 2014.

Table 180: Statement of Sources and uses of Funds for 2014 Euro Sources of Funds (€) Designated Account (Special 948,251 Account) Direct Payments 177,379 Others – Interest Earned 1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 407 Counterpart Contribution 194,292 Total Sources 1,319,923 Less Uses of Funds Institutional support 198,910 Rubber – GREL 5,099 Oil Palm – TOPP 503,285 Foreign Exchange Difference 164 Total Uses of Funds 707,458 Net Sources/(Uses) 612,465

1709. The total use of funds for the year was €707,458 leaving a net source of €612,465 for 2014. The main uses of funds was Oil-Palm TOPP representing €503,285 or 71.1% of total funds used for the year 2014

Financial position 1710. The Table below shows the financial position of the Programme for the Promotion of Perennial Crops in Ghana as at 31 December 2010.

2014 2013 % € € Change Cumulative Project 26,594,469 25,999,208 2.3 Expenditures Current Assets 3,403,222 2,785,885 22.2 Current Liabilities - 107,162 - Net current Assets 3,403,222 2,678,723 27

1711. Cumulative Project Expenditures of €26,594,464 is represented by Non-Capital Expenditure of €22,259,270 and Fixed Assets of €4,335,199. Cumulative Project Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 408 increased by 2.3% from €25,999,208 in 2013 to €26,594,469 in 2014. The increment is due to additions to fixed assets and additional non-capital expenditure incurred.

1712. Current Assets of €3,403,222 comprised of Interest Receivable of €2,311,745, Amount due from GREL – Pre financing of €4,871 and Project bank and cash accounts of €1,086,606.

1713. The programme is highly liquid since there were no short term obligations to be met.

MANAGEMENT ISSUES

Omission of GOG Counterpart Funding from the Financial Reports 1714. The terms of the contract for Management Service required the GOG and End Beneficiaries to contribute towards the GREL and TOPP portion of the Project.

1715. Apart from the counterpart funding disbursed by the GOG to the tune of €1.62 million, it also contributed to the project through VAT, Customs Duties, Salaries, Wages and Allowances of Seconded staff as well as office accommodation and utility payments. These contributions have not been quantified and captured as contribution of the GOG to the project and included in the financial statements.

1716. The Finance Section of the Project Coordinating Unit (PCU) concentrates on only portions of the Institutional Support component operated by the PCU. Consequently, contracts and disbursements made directly by the donors were

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 409 not captured in the books of the PCU.

1717. We recommended that the PCU, with support from the Ministry of Finance, should as much as practicable determine and quantify all contributions made to the project by the GOG. This should subsequently be charged to the project and reflected as GOG contribution to the project.

1718. Management responded that, assistance will be sought from the Ministry of finance, through MOFA, to assist the programme ensure that counterpart funds, other than direct releases to the project are captured in the books of accounts.

Interest of €2.3 million on Agricultural Credit Facility to ADB & NIB Financial Reports 1719. The Government of Ghana received a credit facility with a Grant component from the Agence Française de Dèveloppement (AFD) and Kreditanstaltfur Weideraufbau (KfW) towards the financing of the programmes for the promotion of Perennial Crops in Ghana. 1720. We noted that as part of the programme subsidiary agreements with GoG, the Ministry of Finance (MoF) representing GoG on-lent the Euro €5.95 million agricultural credit component to the financial operators, ADB & NIB. This is to be used to finance the acquisition cost of land titles by the out growers, the agricultural inputs for the projects, cash advances for costs of labour and for the financing of the management and extension service costs.

1721. Interest accrued on the disbursed portion of the credit component, amounting to €2.3 million had been shown in the financial statements. Since the subsidiary agreement was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 410 between the MOF and the financial operators, we consider the accrued interest of €2.3 million not accruing to the programme and therefore should be reversed.

1722. The Interest was accrued because the subsidiary agreement has been considered under the programme.

1723. The financial statements have been misstated by the accrued interest of €2.3 million.

1724. We recommended that the accrued interest of €2.3 million is to be reversed in the financial statements in 2015.

1725. Management responded that, the interest will be reversed in 2015.

No Contract Register 1726. Contrary to best contract management practice, the programme does not maintain a Contract register to record all commitment for contracts signed by the PPPCG and third parties. The books of accounts are maintained on cash basis and therefore entries in the books of accounts are only made when payments are effected.

1727. Absence of a contract register might lead to overpayment of the contracts.

1728. We recommended that the PCU should record all commitment for contracts signed by the PPPCG and third parties in a register, which should be updated regularly to reflect the status of contracts, signed by the programme.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 411

CORAF/WECARD COMPETITIVE PROJECTS – SUSTAINABLE INTENSIFICATION INTEGRATED CROPS SMALL RUMINANT PRODUCTION SYSTEMS IN WEST AFRICA – GHANA (SIICSRP – W/A – GH)

Introduction 1729. This report covers the audited accounts of the Coraf/Wecard Competitive Projects – Sustainable Intensification Integrated Crops Small Ruminant Production systems in West Africa-Ghana (SIICSRP-W/A-Gh.) for the three years’ period ending 31 March 2015. Table 181 provides the performance indicators but cannot provide any comparison statements of both income and financial position.

Operational results 1730. Total Income of the project for the three years’ period ended 31 March 2015 amounted to GH¢1,355,527. This was made up of research grant of GH¢1,326,087 and other income of GH¢29,441. The performance indicators are shown in Table 181.

Table 181: Performance indicators for the three years ended 31 March 2015

Income GH¢ Grant 1,326,087 Other Income 29,441 Total Income 1,355,527 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 412 Direct Research Expenses 342,146 Personnel Cost 456,255 Administrative Expenses 247,981 Travel and Transport 123,422 Finance Cost 6,544 Total Expenditure 1,176,348 Net (Deficit)/Surplus 179,179

1731. Total Expenditure of the Project for the period (2012- 2015) amounted to GH¢1,176,348.

1732. Personnel Cost accounted for 39.0% of the total expenditure for the period under review. Direct research expenses and administrative expenses accounted for 29.1% and 21.1% respectively of the total expenditure.

1733. The project recorded a net surplus of GH¢179,179 when the financial statements were consolidated. Financial position The financial position as at 31 March 2015

GH¢ Non-Current Assets 192,220 Current Assets 1,060 Current Liabilities 14,100 Equity 179,179 Current Ratio 0.1:1

1734. Non-Current Assets was GH¢192,220 as at 31 March 2015. This comprise of property, plant and equipment.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 413

1735. Current Assets of GH¢1,060 was made up of bank balance.

1736. Current Liabilities which stood at GH¢14,100 was made up of other payables.

1737. The project’s liquidity situation needs attention as the current ratio of 0.1:1 is unhealthy.

MANAGEMENT ISSUES

10% Project sum for Institutional support-GH¢132,608.68 not complied with 1738. According to the Council for Scientific and Industrial Research (CSIR) Crops Research Institute policies, for every project awarded, the Institute receives 10% shares of total project sum towards Institutional Support.

1739. We noted that from November 2011 to March 2015, grants totaling GH¢1,326,086.76 was received by the Institute.

1740. We further observed that, GH¢11,162.76 and GH¢11,697.65 were paid in 2013 and 2012 respectively into the Institutional Support programme. These amounts even fell short of the required 10% Institutional Support policy which should have been GH¢132,608.68.

1741. Management’s laxity in not fully complying with the implementation of the policy may cripple the day-to-day running of the Institute, since, this 10% Institutional Support

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 414 deductions would add to the Internally Generated Fund (IGF).

1742. We therefore advised management to ensure compliance of Institutional policies.

CORAF/WECARD COMPETITIVE PROJECTS – PLANTAIN (NO. CW/03/01CP/C0/09 – 1.3)

Introduction 1743. This report covers the audited financial statements of the CORAF WECARD Competitive Projects–Plantain (No. CW/03/ 01CP/CO/09-1.3) for the period 1 January 2011 to 31 December 2014.

Operational results 1744. Total research grant from donor agency of the project for the four-year period (2011-2014) amounted to GH¢125,701. Total income for the fourth year 2014 decreased by 82.9% from GH¢50,464 in 2013 to GH¢8,616 in 2014. The decrease in 2014 was due to the Project not receiving any research grant in the year under review. Provided in Table 182 are details of the performance indicators.

Table 182: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Grant Income - 48,553 - Other Income 8,616 1,911 350.9 Total Income 8,616 50,464 (82.9) Expenditure Direct Research Costs - 21,264 -

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 415 Personnel Costs 1,822 8,994 (79.7) Administrative Expenses 5,517 6,626 (16.7) Travel & Transport Expenses 4,594 6,716 (31.6) Finance Cost - 281 - Total Expenditure 11,933 43,881 (72.8) Net (Deficit)/Surplus) (3,317) 6,583 (150.4)

1745. Total Expenditure for the four-year period (2011-2014) of the project was GH¢115,683.

1746. Total Expenditure for 2014 decreased by 72.8% from GH¢43,881 in 2013 to GH¢11,933 in 2014. The fall in 2014 expenditure was due to the fact that there was not much activity in the last year of the project.

1747. At the end of fourth year, the project registered a net deficit of GH¢3,317 as against a surplus of GH¢6,583 in 2013, representing a fall of 150.4%. This deficit was due to expenditure incurred in 2014 but no research grant was received from donor agency for the same period.

Financial position 1748. The financial position of the Project is summarized in Table 183.

Table 183: Balance sheet as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 11 828 (98.7) Current Assets 44,125 41,925 5.2 Current Liabilities 18,800 14,100 33.3

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 416 Equity 25,335 28,653 (11.6) Current Ratio 2.3:1 3.0:1

1749. Non-Current Assets at the close of 2014 was GH¢11 as against GH¢828 in the preceding year, representing a decrease of 98.7%. The decrease was due to the assets being fully depreciated.

1750. Current Assets rose marginally by 5.2% from GH¢41,925 in 2013 to GH¢44,125 in 2014, as a result of 5.3% rise in bank balance.

1751. Current Liabilities also increased by 33.3% from GH¢14,100 in 2013 to GH¢18,800 in 2014. The increase was due mainly to an increase in other payable.

1752. The Liquidity position of the project fell from 3.0:1 in 2013 to 2.3:1 in 2014, an indication of the project still being in a position to discharge its short term liabilities when they fall due.

CORAF/WECARD COMMISSIONED PROJECT – RICE YELLOW MOTTLE VIRUS (RYMV) PROJECT. (NO. CW/03/01CM/U/09)

Introduction 1753. This report relates to the audited financial statements of the CORAF/WECARD Commissioned Project – Rice Yellow Mottle Virus (RYMV) Project (No. CW/03/01CM/U/09) for the period 1 January 2013 to 31 December 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 417 Operational results 1754. Total income for the four year (2010-2013) of the project amounted to GH¢66,233.44. This was made up of grant of GH¢64,768 for research grant and GH¢1,465 other income. But the total income for the fourth year 2013 decreased from GH¢43,189 in 2012 to GH¢1,101 in 2013. The Project did not receive any research grant in 2013, as the fund allocated to the project got exhausted in 2012. Details of the performance indicators are provided in Table 184.

Table 184: Income statement for 2013 2013 2012 % Income GH¢ GH¢ Change Grant Income - 42,828 - Other Income 1,102 361 204.9 Total Income 1,101 43,189 (97.5) Expenditure Direct Research Costs 20,779 6,335 228.0 Personnel Costs 1,182 2,384 (50.4) Administrative 5,023 5,010 0.3 Expenses Travel & Transport 897 3,129 (71.3) Repairs & 8,270 490 1,587.8 Maintenance Finance Cost 47.14 25 90.6 Total Expenditure 36,198 17,372 108.4 Net (Deficit)/Surplus (35,097) 25,816 (235.9)

1755. Total Expenditure for the four-year period (2010-2013) amounted to GH¢84,339. Total expenditure in 2013 was GH¢36,198 as against GH¢17,372 in 2012, an increase of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 418 GH¢18,825 or 108.4%. The significant increase in total expenditure was due to 1,587.8% increase in repairs and maintenance of project vehicles. Direct Field expenses and Cooking Test evaluation accounted for the increase in direct research costs.

1756. At the end of the project period, a deficit of GH¢35,096 was recorded as against a net surplus of GH¢25,816.

Financial position 1757. The financial position of the project is summarized in Table 185.

Table 185: Balance Sheet as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 10 288 (96.5) Current Assets 684 30,803 (97.8) Current Liabilities 18,800 14,100 33.3 Equity (18,106) 16,991 (206.6 Current Ratio 0.04:1 2.2:1

1758. Non-Current Assets went down significantly by 96.5% from GH¢288 in 2012 to GH¢10 in 2013 as a result of depreciation charged for the year.

1759. Current Assets also dropped by 97.8% from GH¢30,803 in 2012 to GH¢684 in 2013. The decrease was as a result of a reduction in bank and cash balances.

1760. Current Liabilities increased by 33.3% from GH¢14,100 in 2012 to GH¢18,800 in 2013. The increase was due to an

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 419 increase in other payable increase was due to an increase in other payable.

1761. The liquidity position of the project as indicated by a current ratio of 0.04:1 (2012:2.2.1) appeared unfavourable and indicated the inability of the project to meet its short-term obligations when they fall due.

MANAGEMENT ISSUES

10% of Project Sum for Institutional support 1762. Part of the Institute’s policy requires that; all projects contribute 10% of their project sum to support the Institute. 1763. We however noted that, GH¢6,476.80 which represented 10% of the total grants received was not paid to the Institute as required by their policies. Only GH¢936.33 was paid in 2011, representing 14.5% of total sum received in that year.

1764. Management could not provide any reason as to why they failed to comply with the Institute’s policies, which eventually may lead to the Institute not having enough internally generated funds to cater for their operational activities.

1765. We therefore recommended that, management should ensure that Institutional policies are adhered to.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 420 CSIR –CRI CORAF/WECARD WEST AFRICA SEED PROGRAM (WASP) (NO. AID-624-A-12-00007)

Introduction 1766. This report covers the audited financial statement of the CSIR – CRI CORAF/WECARD – West Africa Seed Program (No. AID-624-A-12-00007) for the 16 months’ period ended 31 December 2014.

Operational results 1767. The main income of the project was a grant from the donor agency, USAID which amounted to GH¢66,893.00. The details of the financial operations are shown in Table 186.

1768. Table 186 provides the performance indicators. We however cannot provide any comparison statements of both income statement and financial position.

Table 186: Resources and expenditure statement for 2014. 16 months’ period Income ended 31/12/14 GH¢ Grant Income 66,893 Expenditure Direct Research Cost 63,557 Personnel Costs 15,622 Administrative Expenses 5,780 Travel & Transport 11,758 Repair & Maintenance 4,588 Finance Cost 1,995

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 421 Total Expenditure 103,300 Deficit (36,407)

1769. Total Expenditure for the project for the 16 months’ period amounted to GH¢103,300. Direct research cost constituted 61.5% of the total expenditure, and was made up of Direct Field expenses of GH¢55,911, casual labour of GH¢7,041 and others of GH¢605

1770. The Project recorded a deficit of GH¢36,407 at the end of the period under review.

Financial position Table 187: Financial Position as at 31 December 2014 GH¢ Bank Overdraft 6,287 Account Payable 30,121 Total current liabilities 36408

Accumulated Fund (36,408)

1771. Current Liabilities comprised of bank overdraft of GH¢6,287 and account payable of GH¢30,121. The account payable included outstanding bills from Project Team of GH¢25,422 and unpaid VAT of GH¢700.00.

MANAGEMENT ISSUE

Over drawn bank balance – GH¢6,286.83 1772. We noted during the audit of the project that, an amount of GH¢6,286.83 was overdrawn on the project account

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 422 at Ecobank Ghana Limited. Further enquires made, revealed that the project did not have any formal overdraft facility with the bank and that this occurred as a result of payments for expenditures through the bank which exceeded the resources the project had with the bank.

1773. This anomaly occurred due to the manager’s inability to monitor the payments of expenditures through the bank.

1774. There is the risk that funds allocated for carrying out the project may not be enough for executing the project due to high interest the overdraft may attract. 1775. We therefore recommended that, management should ensure cheque payments are thoroughly monitored especially when there is no approved overdraft facility with the bank.

NATIONAL BUFFER STOCK COMPANY LIMITED

Introduction 1776. This report relates to the audited Financial Statements of the National Buffer Stock Company Limited (NAFCO) for the 18 months ended 31 December, 2012.

Basis for Qualified Opinion 1777. The company’s accounting records do not provide sufficient evidence supporting the opening reserves. Opening reserves stated on the balance sheet amounts to GH¢14,900,000. However, supporting documentation was provided for GH¢10,000,000. There were no satisfactory audit procedures that we could have performed to obtain reasonable assurance that the remaining opening reserves of GH¢4,900,000 were adequately supported. As a result, we were unable to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 423 determine whether any adjustments would be required in respect of recorded opening reserves and the related elements making up the balance sheet and changes in equity. Qualified Opinion 1778. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statement gives a true and fair view of the balance sheet of National Buffer Stock Company Limited as at 31 December 2012, and of its profit and loss account and its cash flows for the year then ended in accordance with Ghana Accounting Standards. Operational results 1779. The company recorded a Profit of GH¢2,619,846 for the 18 months’ period as compared to GH¢3,297,905 loss recorded over 16 months’ previous period. However, a detailed comparative analysis for both income statement and financial position could not be established because the basis (number of months) is not the same. The details of the company’s performance are provided in the Table 188.

Table 188: Income statement for the 18 months period ended 31 December 2012 2012 (18 Month) GH¢ Revenue 19,242,564 Cost of Sales (14,526,340) Gross Profit/Loss 4,716,224 Gen. and Administrative Expenses (2,113,866) 2,602,358 Other Income 17,488 Net Profit/(Loss) 2,619,846

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 424 1780. Total revenue for the 18 months’ period reviewed totaled GH¢19,260,052. Sales of Rice accounted for 57.7% or GH¢11,108,560 of the Total Revenue whiles the sales of yellow maize accounted for GH¢5,343,622 or 27.7%.

1781. The sales of white maize also accounted for 13.8% or GH¢2,655,382 of the total revenue whiles the remaining GH¢152,488.00 representing 0.8% came from sales of soya bean and Interest income earned on the bank accounts. 1782. Total Expenditure for the period under review which was made up of Cost of Sales, General and Administrative Expenses amounted to GH¢16,640,206. Cost of sales contributed 72.9% of the total expenditure. Included in the cost of sales is Paddy rice and yellow maize which contributed 44.4% and 28.5% respectively.

Financial position 1783. A summarized statement of financial position of the company as at 31 December 2012 is shown in Table 189.

Table 189: Statement of Financial Position as at 31 Dec. 2012 2012 GH¢ Non-Current Assets 1,028,935 Current Assets 24,695,640 Current Liabilities 1,402,634 Net Current Assets 23,293,006 Net Assets 24,321,941 Current Ratio 17.6:1

1784. Within the 18 months’ period the company acquired

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 425 Motor Vehicles, Office Equipment, Office Furniture and Pallets totaling GH¢1,077,969.

1785. Current Assets comprised of inventory, accounts receivable and cash/bank balance.

1786. The liquidity position as measured by current ratio of 17.6:1 indicates that the company is in a good position to meet its short-term obligations as and when they fall due. MANAGEMENT ISSUES

Fixed asset register maintained by NAFCO not updated 1787. Contrary to Regulation 1g of FAR 2014 (L.I.1802) which requires that a fixed assets register should be maintained and kept to date at all times, we noted that the company did not update the asset register, with assets valued at GH¢1,077,969 purchased during the period under review. In addition, there was no information on the location of the assets.

1788. This may be due to ineffective supervision by the management and as a result the company’s fixed asset may not be properly monitored to safeguard abuse and misuse of the assets. In addition, losses and damages to fixed assets may not be identified and dealt with on a timely basis. 1789. We recommended that management should update the fixed assets register with all assets procured in the period indicating their location and ownership status.

1790. According to management the fixed assets register has been updated with all new assets purchased within the period. But current status indicated that the register was not updated.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 426

Late payment of pension deductions resulting in penalty of GH¢2,602.03 1791. Contrary to Section 63(1) of the National Pensions Act 2008, Act 766, we noted during our audit that pension contributions deducted during the period were not paid on time. As a result, NAFCO was charged GH¢2,602.03 penalties by SSNIT. This may stifle funds for budgeted activities.

1792. We recommended that management should ensure that pension deductions are paid to SSNIT by the 14 day of the subsequent month as required by law to avoid imposition of penalties.

1793. Management has accepted this recommendation for strict compliance.

No evidence of Parliamentary approval for the setup and release of funds for NAFCO 1794. In spite of our previous recommendation that management should seek retrospective approval from Parliament for the setup of the company and the release of funds for its activities, Management had failed to seek the necessary approval. However, management explained that the company was established by an Executive Instrument through the Attorney General with the ministry of Food and Agriculture as shareholders. We still stand by our earlier recommendation.

No evidence of proper procurement process followed in the renovation of NAFCO Head Office. 1795. Despite our previous recommendation, that

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 427 management should investigate to ascertain the rationale behind the selection of FH&C company Limited to carry out the renovation works at the Head office of NAFCO, management is yet to provide relevant documents to support the procurement procedure followed in the award of the contract for the renovation work.

1796. We reiterate our earlier recommendation. Opening stated capital balance not supported 1797. Contrary to Section 66(1) of the Company Code, Act 1963 (Act 179) on what constitute stated capital, NAFCO could not provide sufficient evidence to support the opening stated capital of GH¢100,000 and reserves of GH¢14,900,000 reported on the balance sheet. No alternative procedures could be performed to confirm that the amount reported as opening stated capital was paid by the shareholder into the accounts of the company. It therefore suggests that the stated capital and reserves may be misstated.

1798. Management should provide adequate supporting documentation for the opening stated capital of GH¢100,000 and reserves of GH¢14,900,000 reported.

1799. Supporting document for GH¢10 million has been provided and management is working to retrieve the remaining GH¢4.9 million.

Misclassification of expenses and expenses not supported 1800. In contravention to best accounting practice, we noted that an advance of GH¢55,989 given to Tamale office for its operation was treated as cash on hand. At the end of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 428 period the expenses had been fully retired. However, supporting document was provided for expenses amounting to GH¢34,294 leaving an amount of GH¢ 21,695 unsupported. We could not ascertain the validity and occurrence of expenses amounting to GH¢21,695.

1801. We recommended that the unsupported amount of GH¢21,695 should be refunded by the Tamale Office if supporting documents cannot be provided.

RURAL ENTERPRISES PROGRAMME INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (LOAN NO. 841 GH)

Introduction 1802. This report is on the audited accounts of the Rural Enterprises Programme (International Fund of Agricultural Development (Loan No. 841 – GH) for the year ended 31 December 2014.

Operational results 1803. Details of the programme’s performance for 2014 are shown in Table 190.

Table 191: Income Statement for 2014 2014 2013 % Revenue GH¢ GH¢ Change IFAD Loan 9,304,320 5,391,400 72.6 AFDB – Grant 3,227,270 - GoG 205,675 1,841,351 (88.8) Fund/Contributions Contributions from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 429 Participating 5,385,000 3,246,885 65.9 Entities Other Income 8,722 - Exchange Gain 647,740 202,853 219.3 Total Revenue 18,778,727 10,682,489 75.8 Expenditure Equipment and 135,904 774,605 (82.5) Materials Vehicles and Motor 393,526 1,505,256 (73.9) Cycles Technical Assistance & 1,336,270 930,087 43.7 Studies Training and Workshop 5,544,038 2,220,582 149.7 Costs Credit funds & 1,756,766 - Matching Grant Salaries 5,444,615 3,368,047 61.7 Operating Expenses 2,251,142 1,181,386 90.6 Total Expenditure 16,862,261 9,979,963 69.0 Surplus 1,916,466 702,526 172.8

1804. Total Revenue of GH¢18,778,727 registered an increase 75.8% over the previous year’s figure of GH¢10,682,489. This was due to increases in the sources of funds with Exchange gain contributing significantly by 219.3% from GH¢202,853 in 2013 to GH¢647,740 in 2014.

1805. Total Expenditure increased by 69.0% from GH¢9,979,963 in 2013 to GH¢16,862,261 in 2014. This was due to149.7% increases in training and workshop cost.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 430 1806. The program recorded an increase in surplus of 172.8% from GH¢702,526 in 2013 to GH¢1,916,466 in 2014.

MANAGEMENT ISSUES

Late submission of quarterly reports by participating financial institutions 1807. Contrary to Section 1.4.1 of the Manual for Rural Enterprise Development Fund (REDF) and matching Grant Fund (MGF), we noted that, 8 Participating Financial Institutions (PFI) who received the REDF and the MGF on behalf of the clients did not submit their quarterly returns to the Programme Co-ordination and Management Unit (PCMU).

1808. Table 192 below shows the PFIs which received funds on behalf of REP’s clients under the REDF Programme.

Amt. Region Disbursed Qtr.1 Qtr.2 Qtr. Qtr.4 GH¢ 3 Yayra Rural Bank 298,080 No Yes Yes No Amantin and Kasei 342,000 No No No Yes Com. Bank Sisala Rural Bank 275,088 No Yes Yes No Afam Rural Bank 110,120 N/A N/A N/A Yes BakwaBreman 108,640 N/A N/A N/A No Rural Bank OkomfoAnokye 275,760 N/A N/A N/A No Rural Bank Drobo Community 177,600 N/A N/A N/A No Bank Ltd. Sinapi Aba Savings 97,600 N/A N/A N/A No and Loans Ltd. Total 1,684,888

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 431 Note N/A means disbursement was received after the quarter. 1809. This implies that, the program may not be able to ascertain whether funds have been disbursed to clients or not. In addition, the program may not be able to timely track or monitor the status of loan disbursed to clients in order to take critical program decisions.

1810. We recommended that the PCMU should step up its monitoring efforts to ensure the PFIs submit their quarterly returns on time.

1811. Management accepted the recommendation and stated that they would intensify monitoring of PFI to ensure that those who have received credit funds submit quarterly returns regularly to compliment similar reports on credit funds submitted to PCMU by District Business Advisory Centres who have received credit funds.

Bank Reconciliation Statement not prepared (West Mamprusi District) 1812. Per the Memorandum of Understanding (MOU) signed between the District Assembly and the PCMU, the BAC is required to prepare monthly bank reconciliation statement which should be reviewed by the BAC Head. In addition, copies of the Bank Reconciliation Statements should be submitted to the PCMU with the quarterly returns.

1813. We noted that the BAC did not prepare monthly bank reconciliation statements for the period under review.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 432 1814. This could lead to errors in the cash book and bank statement not being identified and corrected on time. 1815. We recommended that the BAC should ensure that bank reconciliation statements are prepared and reviewed by the appropriate person independent of the preparer.

1816. In response, management accepted the recommendation and agreed to ensure that controls established would be adhered to.

Non submission of quarterly return (West Mamprusi District) 1817. According to the Memorandum of Understanding (MOU), the districts are required to submit quarterly returns within a period of 10 working days after the end of each quarter.

1818. We noted that for the period under review, the district assembly submitted returns for only the first quarter revenues and expenses.

1819. In the absence of financial returns from the district to support revenue contribution and expenditure from the participating entities, revenue and expense for the year may not be complete.

1820. We recommended that the BAC should ensure compliance with the tenets of the MOU. Also, the PCMU as the Coordinating body should step up its monitoring efforts to ensure the districts submit their quarterly returns on time.

1821. Management responded that they would step up

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 433 monitoring of submission of monthly returns in 2014 and had instituted a sanction regime. Districts who submit returns late or fail to submit monthly returns are queried and their request held back until they submit all outstanding returns.

MINISTRY OF EMPLOYMENT, LABOUR AND MANPOWER

NATIONAL PENSION REGULATORY AUTHORITY

Introduction 1822. This report relates to the audited accounts of the National Pension Regulatory Authority for the period 1 January 2014 to 31 December 2014

Operational results 1823. The 2014 financial year of the Authority ended with a surplus income of GH¢889,359.00 as compared to Ghc40, 592.00 in 2013. A summary of the Income and Expenditure for the year is as shown below.

Income statements for the years 2013 and 2014 Income 2014 2013 % GH¢ GH¢ Change Govt Subvention 1,366,623 1,276,545 7.1 Other Income 2,550,800 1,139,377 123.9 Total Income 3,917,423 2,415,922 62.2 Expenditure Employee 1,058,431 970,685 9.0 Compensation Goods & Services 1,969,634 1,404,646 40.2 Total Expenditure 3,028,066 2,375,331 27.5 Surplus 889,359 40,592 2,091

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 434 1824. Total Income for the Authority increased by GH¢1,501,501 representing 62.2% from GH¢2,415,922 in 2013 to GH¢3,917,423 in 2014. The above increase was largely due to an increase in Internally Generated Fund (IGF) by GH¢1,721,918 representing 210.9% from GH¢816,580 in 2013 to GH¢2,538,498 in 2014.

1825. Total Expenditure of the Authority also increased by GH¢652,735 representing 27.5% from GH¢2,375,331 in 2013 to GH¢3,028,066 in 2014. An increase in Goods and Services of GH¢564,988 representing 40.2% from GH¢1,404,646 in 2013 to GH¢1,969,634 in 2014 accounted for the above increase in Total Expenditure in 2014.

Financial position 1826. The book value of fixed assets of the Authority decreased by GH¢112,529 representing 16.6% from GH¢676,024 in 2013 to GH¢563,495 in 2014. Although the Authority acquired some assets amounting to GH¢133,909 in 2014, accumulated depreciation of GH¢766,251 accounted for the above decrease.

1827. Current Assets increased by GH¢372,947 representing 40.1% from GH¢928,996 in 2013 to GH¢1,301,943 in 2014. The increase was due to the prepayment in rent amounting to GH¢502,425 for the office accommodation of the Authority.

1828. Current Liabilities decreased by GH¢628,942 representing 73.1% from GH¢860,894 in 2013 to GH¢231,952 in 2014. The payment of Temporary Pensions Fund Account (TPFA) amounting to GH¢499,032 accounted for the decrease in 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 435 1829. The Current ratio of 5.6:1 as at the end of the year indicates that the Authority would be able to meet its current liabilities when they fall due.

MANAGEMENT ISSUES

Overdue Loans – GH¢195,390.92 1830. Regulation 104(c) of the Financial Administration Regulations (FAR) 2004, (L.I.1802) requires that a Head of Department authorized to administer a class of advances should ensure that advances are duly recovered in accordance with the agreement relating to them.

1831. Our review of the payroll records indicated that the Authority advanced an amount of GH¢568,797.92 from the Operational Account to the staff between March 2011 to April 2013 pending their migration onto the Government Payroll. The staff signed an undertaking to fully refund the advances to the Authority when paid full salaries.

1832. A further review revealed that, even though staff were paid all salary arrears immediately they were migrated onto the Government payroll, management had recovered only GH¢373,407.62 of the amount leaving a balance of GH¢195,390.25 unsettled by 26 members of staff.

1833. The occurrence was due to management’s failure to put in place adequate measures to recover the advances from those involved.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 436 1834. Management explained that all efforts is being made to ensure the repayment of the advances.

1835. The unsettled amount of GH¢195,390.25 could put a constraint on the planned activities of the Authority.

1836. We advised and management agreed to inform the Controller and Accountant-General to deduct the unpaid amount directly from the salaries of the affected staff.

Overdue Advances from Separated Staff – GH¢47,569.62 1837. Contrary to Regulation 104(c) of the FAR, 2004 which requires heads of departments, authorized to administer a class of advances to ensure that the advances are duly recovered in accordance with the regulations or agreements relating to them, management failed to recover outstanding advances totaling GH¢47,569.62 from two officers who resigned from the Authority as detailed below: Name Amount (GH¢) i. Sam Pee Talley 32,748.00 ii. Bill Alogo Aedo 14,821.62 Total 47,569.62

1838. The omission was because management did not ensure that the affected officers honor their debt obligations to the Authority before accepting their resignation. The Authority would be denied funds for planned activities if the amount is not recovered.

1839. We recommended that management steps up effort to recover the amount failing which the authorizing and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 437 approving officers, whose inaction resulted in the lapse should be surcharged with the amount involved.

1840. Management in response promised to ensure that the officers refund the balance of advances granted them.

Payment of Unapproved Staff Benefits GH¢139,648.86 1841. Section 5 (a) of the Retention of funds Act, 2007 (Act 735) provides that, Internally Generated Funds (IGF) can only be utilized when the activities on which the expenditure will be incurred have been programmed and approved in that Ministry’s, Department’s and Agency’s expenditure budget by Parliament.

1842. Notwithstanding the aforementioned Act, we noted that the Authority authorised the payment of an amount of GH¢139,648.86 representing 5.5% of its IGF as end of year bonus to all 44 employees.

1843. We consider the payment inappropriate as it was not budgeted for and was not included in benefits approved by the Minister of Finance. The practice which constituted misapplication of funds could impact negatively on the operations of the Authority if not checked.

1844. We recommended that management should seek approval to regularise the payment or the amount should be recovered from the staff and paid into the Authority’s account. We also advised management to in future strictly comply with Regulation 5 of the Retention of Funds Act before payment of such allowances or stand the risk of been sanctioned.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 438 1845. Management responded that the Board gave approval for the payment of 10% of Basic Salary as Christmas package from the IGF.

1846. We could not accept management’s explanation since the payment is irregular and contravenes the Retention of Funds Act. We therefore reiterated our earlier recommendation.

Failure to keep ledgers for Staff Debtors 1847. A review of the debtors’ schedule showed that 25 staff members owed a total amount of GH¢110,286.00 as salary advances and other loans as at 31 December 2014.

1848. We however noted that the Accounts office did not maintain personal ledgers for the staff debtors to enhance proper monitoring of the recoveries of the loans granted to staff members.

1849. The Finance Manager explained that the debts owed by the staff members were salaries paid to them on account which were supposed to be refunded in full upon the payment of their salary arrears by the Controller & Accountant-General Department (C&A-GD), but most of them failed to comply with the directives upon receiving the salaries from C&A-GD.

1850. The Accounts Office’s failure to keep personal ledgers for staff debtors made it cumbersome in tracking refunds made by staff debtors in order to ensure full recovery of loans granted.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 439 1851. We advised management to ensure that personal ledgers are maintained for staff debtors without further delay to record all refunds month after month to facilitate proper monitoring and ensure full recovery of all loans to avoid loss of funds to the Authority and to the state.

1852. Management responded that they could not maintain the individual staff debtor’s ledger due to limited staff strength. They however gave the assurance that with the acquisition of SAGE 300 Accounting software, the maintenance of the ledger will be taken care of.

Absence of ARIC 1853. Section 30 (1) of the Audit Service Act 2000, (Act 584) mandates the ARIC to ensure the head of the organization pursues the implementation of matters in all audits and other monitoring reports as well as the Auditor-General’s reports endorsed by Parliament. The ARIC is also enjoined under section 30 (2) (b) of the Act to issue annual statements showing the status of the implementation of recommendations made in audit and other monitoring reports.

1854. Contrary to the above regulation, we observed that the Authority had not set up ARIC since the inception of its operations in 2012. The absence of an ARIC could result in non-implementation of recommendations in audit and other monitoring reports.

1855. We attributed the omission to management’s failure to comply with the Audit Service Act.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 440 1856. We recommended that management should liaise with the Board to set up an ARIC without further delay to see to the implementations of audit recommendations.

1857. Management stated that an ARIC was formed by the Board of Directors on 26th February 2015 but its inauguration was put on hold pending the final consultations.

1858. We urged management to petition the Board to fast track the final consultation process for the inauguration in order for the Committee to start its work.

NATIONAL VOCATIONAL TRAINING INSTITUTE

Introduction 1859. This report relates to the audited accounts of the National Vocational Training Institute for the period 1 January 2012 to 31 December 2012.

Operational results 1860. The Institute’s operations for the year 2012 ended with a surplus of GH¢176,763.87, thus registering an increase of 645.1% or GH¢153,037.35 over the 2011 figure of GH¢23,726.52. The performance indicators are as shown in Table 193.

Table 193: Income statement for the year ended2012 Income 2012 2011 % GH¢ GH¢ Change Subvention 2,532,705.21 996,295.49 154.2 Internally Generated 2,572,125.13 1,882,476.71 36.6 Fund Total 5,104,830.34 2,878,772.20 77.3

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 441 Expenditure Employee 2,665,880.16 1,103,335.74 141.6 compensation Goods and services 2,262,186.31 1,751,709.94 29.1 Total 4,928,066.47 2,855,045.68 72.6 Excess in income over Expenditure/(Deficit) 176,763.87 23,726.52 645.1

1861. Total Income of the Institute increased by 77.3%; from GH¢2,878,772.20 in the previous year to GH¢5,104,830.34 in year under reviewed. This was mainly due to increase of 154.2% in Government subvention (Employees Compensation) from GH¢996,295.49 in 2011 to GH¢2,532,705.21 in 2012. The placement of the Institute on the Single Spine Salary Structure resulted in the increase

1862. Total Expenditure also saw a rise by a margin of 72.6% from GH¢2,855,045.68 in 2011 to GH¢4,928,066.47 in 2012. This was as a result of 141.6% increase in employee’s compensation from GH¢1,103,335.74 in 2011 to GH¢2,665,880.16 in 2012.

Financial position 1863. The financial position as at 31 December 2012 is shown in Table 194 below. 2012 2011 % GH¢ GH¢ Change Non-Current Asset Property, Plant & 2,533,230.61 2,469,355.50 2.6 Equipment Work-in-Progress 288,040.86 140,195.78 105.5 Total 2,821,271.47 2,609,551.28 8.1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 442 Current Assets Inventory-Printed Material & Stationery 76,607.20 94,760.00 (19.2) Accounts receivables 115,416.51 57,271.10 101.5 Cash & bank Balance 120,719.13 209,831.20 (42.5) Total 312,742.84 361,862.30 (13.6) Current Liabilities Account payables 44,901.63 59,064.77 (24.0) Net Asset 3,089,112.68 2,912,348.81 6.1 Liquidity ratio 7.0:1 6.1:1

1864. Non-Current Assets registered an 8.1% increase from GH¢2,609,551.28 in 2011 to GH¢2,821,271.47 in 2012. The rise was due to 105.5% increase in work-in-progress from GH¢140,195.78 in 2011 to GH¢288,040.86 in 2012.

1865. Current Assets of the Institute also decreased by of 13.6%; from GH¢361,862.30 in 2011 to GH¢312,742.84 in 2012, whilst the Accounts Receivables saw a rise of 101.5% from GH¢57,271.10 in 2011 to GH¢115,416.51 in 2012. This was as a result of increase in staff loans and advances.

1866. Current Liabilities also decreased by 24% from GH¢59,064.77 in 2011 to GH¢44,901.63 in 2012. This was due to part settlement of the Institutes’ debt. Net asset increased by 6.07% from GH¢2,912,348.81 in 2011 to GH¢3,089,112.68 in 2012.

1867. Liquidity outlook as measured by a current ratio of 7.0:1 (6.1:1 in 2011) remains strong, indicating the ability of the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 443 Institute to discharge its short term obligations when they fall due.

MANAGEMENT ISSUES

Non recovery of debts- GH¢30,856.40 1868. Regulation 113(1) of FAR, 2004 (L.I. 1802) requires that recoveries from official salaries shall commence from the salary of the next complete month after the month in which the advance was made. Regulation 112 of the FAR further provides that recoveries can be made by any other means which may appear to be feasible should deduction from the borrower’s salary at source fails.

1869. We observed that, 12 out of 42 officers who were granted loans/advances from the Institute’s IGF totalling GH¢32,582.04 between 2011 and 2012 paid back only GH¢1,725.64 leaving GH¢30,856.40 in arrears as at 31 December 2012. The delay in recoveries ranges between one and two years’ period.

1870. We further noted that the 12 officers serving private loans, were granted additional advances.

1871. The foregoing situation which contravened the above Regulation was made possible due to management’s lack of vigilance to determine staff who have contracted private loans from companies which were being deducted at source by C&AG from their salaries. It was therefore not possible to effect the deduction through C&GD as they had exceeded the maximum deductions of 40% from staff salaries.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 444 1872. The lapse could be attributed to management’s failure to apply Regulation 112 (b) of the FAR, 2004 by ensuring that beneficiaries make direct payments in anticipation of the commencement of deductions by the Controller and Accountant-General. Besides the defaulters prefer servicing the private loans rather than the advances since management did not put any pressure on them.

1873. Non recovery of these advances resulted in a huge debtors’ balance of GH¢110,784.94 as at the end of the 2012 financial year. The delay in payment of these debts has also deprived other staff of the loan facility.

1874. We advised and management accepted to introduce and strictly enforce a recovery schedule to ensure timely settlement of the outstanding advances through direct payment by affected staff. Additionally, management should guard against granting of loans to staff servicing an existing loan.

MINISTRY OF JUSTICE AND ATTORNEY GENERAL

COPYRIGHT OFFICE

Introduction 1875. This report relates to the audited accounts of the Copyright Office for the period 1 January 2013 to 31 December 2014

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 445 Operational result Income and Expenditure Statement for 2013-2014 Income 2014 2013 Variance Variance GH¢ GH¢ % change GOG 376,484.63 458,968.45 (82,483.82) (18) IGF 32,775.00 33,372.00 (597) (1.8) Other 139,180.10 - Income(B.L) Donation 10,686.00 - Total Income 419,954.63 631,520.55 (211,565.92) (33.5) Expenditure Compensation 286,561.46 282,473.86 4,087.6 1.5 For Employees Goods And 207,750.91 162,712.19 45,038.72 27.7 Services Depreciation Of 48,033.40 46,177.40 1,856 4.0 Assets Transfer 11,240.00 11,240.00 - Total 553,585.77 491,363.45 62,222.32 12.7 expenditure

1876. The comparative figures for 2014 and 2013 financial year shown above shows a decrease of (33 .5%) in 2014 being total income. This significant fall is due to other income in the form of blank levy which was not received during the period of 2014. GOG also reduced by GH¢82,483.82 been 18% over 2014.

1877. Total Expenditure shows an increase of GH¢62,222.32 being 12.7% over 2013. This occurrence is due to a significant difference of GH¢45,038.72 in goods and service. Compensation for employees rose slightly to GH¢286,561.46 in 2014 form GH¢282,473.86 in 2013, showing a difference of 1.5%.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 446 Financial position 1878. The financial position as at 31 December 2014 is shown in the Table 195 below. 2014 2013 % GH¢ GH¢ Change Non-Current Assets 128,044.02 161,041.42 (20.5) Current Assets 3,295.36 101,066.60 (96.7) Current Liabilities 2,871.50 - - Net Current Asset 423.86 101,066.60 (99.6) Total Net Assets 128,467.88 262,108.02 (51) Current Ratio 1.1:1

1879. Non-Current Asset registered a decrease of GH¢32,997.04 from GH¢161,041.42 in 2013 to GH¢128,044.02 in 2014. This is due to high depreciation rate of 50% per annum on computers.

1880. Current Assets, which were mainly made of bank balances decline by 96.7%, from GH¢101,066.60 in 2013 to GH¢3,295.36 in 2014.

1881. Liquidity ratio for 2014 stood as 1.1:1, indicating that Copyright has the ability to meet it short term liabilities when due.

MANAGEMENT ISSUES Non-existence of risk management team 1882. The recent disasters in respect of fire outbreak, information system breakdown and other environmental hazards in institutions require that management assess,

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 447 identify and control risk and also plan for appropriate response that mitigate the impact of occurrence of risk.

1883. We observed that management of Copyright Office has not constituted or developed any risk management policy or disaster recovery plan to build risk awareness into day to day activities of the Office and has no backup of safety for sample products of registered persons (right owners). Such properties are being kept in the registry located at the office.

1884. There is no identifiable line of management in the organizational structure that is responsible for risk management of the Office.

1885. The effect is that in the event of any risk occurring either in the form of information system breakdown or natural disaster, the impact on the Office will be disastrous since right owners will not be able to fall on the Office for copies of their product should they be in need.

1886. We recommended that management should develop an appropriate risk policy and ensure that risk awareness is embedded in management’s culture. Also management should ensure that a backup system is established for products of right owners.

1887. Management accepted our recommendation to take necessary steps to develop an appropriate risk policy and establish a backup for office’s information systems.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 448 1888. Our further verification showed that information on registered works in the database had been backed up on external hard drives. Management is however in the process of developing risk management policy.

Poor supervision of store records 1889. Regulation 1 of the Financial Administration Regulations 2004 (L.I. 1802) requires any public officer who is responsible for the conduct of financial business on behalf of Government of Ghana to keep proper records of all transactions.

1890. We observed that contrary to the above provisions, the supervising officer failed to sign his column of the Store Issue Vouchers.

1891. The anomalies could be attributed to lack of supervision by the accountant as supervising officer.

1892. The situation could lead to pilfering, additions and altering of the requisition made if not addressed.

1893. We recommended that the accountant should exercise supervisory authority to prevent possible pilfering of stores and subsequent loss to the copyright.

1894. Our recommendation was well noted and management added that the accountant has been instructed to exercise strict supervision over the work of the senior supply officer.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 449 Unearned salary GH¢14,556.92 1895. Best accounting practices of salary stoppage could be done by Ministries, Departments and Agencies (MDA’s) through submission of input forms or letters to the Personnel Processing Section (PPS), Controller and Accountant-General Department (CAGD) or employees’ Bank whenever personnel retires, vacate post, resigns or deceased.

1896. We noted during our audit that, Cynthia Dordoye with Staff No.892416, who resigned on 26th September 2012 has been paid a total of GH¢11,054.61, from September, 2012 to September, 2013.

1897. Also we noticed that, Joseph Gberbi with staff No. 711288 who vacated post in November, 2012 has been paid a total sum of GH¢3,502.31 from November, 2012 to November, 2013.

1898. This occurred as a result of failure on the part of Management to follow the due process for the deletion of names from the payroll.

1899. Unearned salary paid to Cynthia Dorddoye and Joseph Gberbi totaling GH¢14,556.92 constituted a financial loss to the State and the Division’s allocation for personnel emoluments was also over-estimated during that period.

1900. We therefore recommend that, the acting Administrator should make the effort to retrieve the unearned salary from the two officers concerned or from their respective Banks since Management has notified the banks and pay back to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 450 Government Chest. Failure of which the acting Administrator should be surcharged.

1901. Management in their response stated that letters will be sent to the respective banks to furnish the office with information on action taken by way of paying the unearned salary back to chest.

1902. Management had since retrieved an amount of GH¢3,503 from Joseph Gberbi and had paid to CAGD Suspense Account number 1018131479077 at Bank of Ghana. Management is still expecting a response from the bank of Cynthia Dorddoye.

ECONOMIC AND ORGANIZED CRIME OFFICE (EOCO)

Introduction 1903. This report relates to the audited accounts of the Economic and Organized Crime Office for the period 1 January 2013 to 31 December 2014

Operational results 1904. Total Revenue made up of Government Subvention and other revenue grew by 23.9% from GH¢11,274,927.70 in 2013 to GH¢13,971,149.58 in 2014. The growth was mainly due to a 2.7% increase in Government subvention from GH¢11,274,927.70 in 2013 to GH¢111,574,588.78 in 2014, an increase of GH¢299,661.08. Other revenue of GH¢2,396,560.80 recorded in 2014 also contributed to the revenue growth. The main performance indicators for the period are shown in Table 196.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 451 Table 196: Income statement for 2014 2014 2013 % GH¢ GH¢ hange Revenue GoG Subvention 11,574,588.78 11,274,927.70 2.7 Other Revenue 2,396,560.80 Total Revenue 13,971,149.58 11,274,927.70 23.9 Expenditure Compensation 11,370,737.05 10,759,927.70 5.7 Goods and Services 1,675,503.87 2,128,085.27 (21.3) Total 13,046,240.87 12,888,012.97 1.2 Excess of Revenue 924,908.71 (1,613,085.27) (157.3)

1905. Total Expenditure of EOCO grew marginally by 1.2% from GH¢12,888,012.97 in 2013 to GH¢13,046,240.87 in 2014. The increase was mainly due to a 5.7% growth in Compensation expenses which went up by GH¢610,809.35 from GH¢10,759,927.70 in 2013 to GH¢11,370,737.05 in 2014. The increase was due to recruitment of new staff in 2014.

1906. At the end of the financial year, the office recorded a surplus of GH¢924,908.71 in 2014 as against a deficit of GH¢1,613,085.27 in 2013.

Financial position 1907. A summarized financial position of EOCO as at 31 December 2014 is provided below:

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 452 2014 2013 % GH¢ GH¢ Change Non-Current Assets 6,904,377.09 7,654,291.34 (9.8) Current Assets 15,694,465.38 3,131,432.41 401.2 Total Assets 22,598,842.47 10,785,723.75 109.5 Current Liabilities 141,254.63 141,254.63 0.0 Long Term Liability (Exhibits) 13,866,661.09 2,978,451.07 365.6 Total Liabilities 14,007,915.72 3,119,705.70 349.0 Net Assets 8,590,926.75 7,666,018.05 12.1 Liquidity ratio 111.1:1 22.2:1

1908. Property, plant and equipment decreased slightly by 9.8% from GH¢7,654,291.34 in 2013 to GH¢6,904,377.09 in 2014 a decrease of GH¢749,914.25. The decrease was due to depreciation.

1909. Current Assets however increased significantly by 401.2% from GH¢3,131,432.41 in 2013 to GH¢15,694,465.38 in 2014. This was mainly due to increase in cash and bank balances from GH¢3,126,854.78 in 2013 to GH¢15,689,887.75 in 2014, an increase of GH¢12,563,032.97.

1910. Total Liabilities increased from GH¢3,119,705.70 in 2013 to GH¢14,007,915.72 in 2014 an increase of 349.0%.

1911. Current Liabilities remained stagnant at GH¢141,254.63 for the two successive years, 2013 and 2014.

1912. Long Term Liabilities (Exhibits) which are moneys held in trust pending final determination by the court increased

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 453 significantly by 365.6% from GH¢2,978,451.07 in 2013 to GH¢13,866,661.09 in 2014.

1913. The liquidity position of EOCO stood at 111.1:1 in 2014 as against 22.2:1 in 2013. This is an indication that the office is in a favorable position to meet its obligation as and when they fall due.

MANAGEMENT ISSUES

Funds transferred in excess of court order -USD 619,039.16 1914. Regulation 1 (1) of the FAR 2004, (L.I. 1802), enjoins any public officer concerned with the receipt, custody and disbursement of public and trust funds to keep proper records of the transactions and produce such records for inspection when called upon to do so by the Auditor-General.

1915. In spite of the aforementioned regulation, we observed that an amount of USD 986,024.16 and GH¢646,188.35 were transferred from the Exhibits Dollar and Cedi Accounts respectively in April 2013 to an applicant without an authorized payment voucher, supported by a memorandum. We further noted that, the transfer which was made based on a court order was directly transferred by the Bank of Ghana to the applicant’s account on the order of Operations Department without informing the Accounts Section.

1916. Additionally, we noted that, instead of US$366,985.00 and GH¢646,188.35 ordered by the court for payment to the applicant, an amount of US$986,024.16 and GH¢646,188.35

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 454 were transferred to him, leading to an excess transfer of US$619,039.16 by the Bank.

1917. Lack of communication between the Operations Department and the Accounts Department made it possible for the Accountant not to detect the overpayment early for correction even though regular reconciliation of the exhibit account was done. The Accountant did not also take proactive measures by seeking clarification from the Operations Department when he noticed that amounts had been transferred from the account without his knowledge.

1918. The excess funds of US$619,039.16 transferred denied the state of the use of its scarce foreign exchange.

1919. We recommended that management track the applicant for recovery of the amount involved with interest at the prevailing bank rate. Management should also sanction the officer whose inaction resulted in the anomaly.

1920. Management responded that, the transfer was done directly by the Bank of Ghana apparently in pursuant to Court Order. It further stated that, “evidence clearly shows that, the court order was for the sum of US$366, 985.00 and that the transfer made by the Bank of Ghana was in excess of the amount ordered”. Management has written to the Governor of Bank of Ghana to intervene in the matter.

1921. We urged management to make strenuous effort to recover the US$619,039.16 transferred in excess from the applicant.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 455 Unearned salaries-GH¢22,067.78 1922. In contravention of Regulation 297 of L.I. 1802, we observed that six separated staff who retired in 2013 and 2014 enjoyed unearned salaries totaling GH¢22,067.78. Even though management made efforts and informed the Controller and Accountant-General Department (C&A-G Dept.) to delete their names from the pay roll, it took a month in each case for the deletion to be effected

1923. The anomaly resulted from the delay by the C&A-G Department to effect the deletion promptly as well as management’s failure to notify the bankers of the affected staff for the stoppage of their salaries.

1924. We recommended that efforts be made by management to recover the total unearned salary of GH¢22,067.78 and pay same to Government chest and obtain a Treasury Receipt to support the payment.

1925. Management indicated that most of the separated staff involved are deceased and it’s also difficult tracing those alive. It has therefore sought the assistance of BNI to help recover the debts.

Overdue debt - GH¢4,577.63 1926. Regulation 231 (b, i) of the FAR 2004 categorized losses to include, revenue losses which may arise from uncollectable revenue when debts due to government cannot be collected by reason that the debtor cannot be traced or is insolvent. It is therefore expected that management put in measures that would monitor staff debtors and the recovery process to avoid loss.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 456 1927. On the contrary, we observed that an amount of GHȼ4,577.63 representing staff debtors had remained on the statement of financial position for the past five years without any movement. Further investigations revealed that the amount had been in the account since 2009 as salary advance to staff.

1928. The schedule officer explained that detailed information on the debtors was not handed over to him when he took over; a situation which contravenes Regulation 1(5 c) of the FAR which requires that an officer handing over financial and accounting duties to a relieving officer shall prepare and sign a statement in triplicate showing details of all pending financial business, including outstanding audit queries. 1929. We attributed the lapse to management’s failure to ensure that proper handing over was done in compliance with Regulation 1(5), (c) of the FAR.

1930. The Organization stands the risk of losing GHȼ4,577.63 which could have been used in advancing loans to other staff to alleviate their hardship. We advised management to intensify efforts to trace the debtors and recover the amount involved and our office informed for verification.

1931. Management in response stated that it has identified the debtors and noted that all of them were separated officers of which some had passed on. A follow up indicated that GHȼ2,955 of the amount have been recovered leaving a balance of GHȼ 1,271.00 which management claimed the officers involved are deceased.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 457 1932. We advised management to pursue recovery of the debts once the affected officers had been identified or seek authority from the Ministry of Finance through the Sector Ministry with adequate justification for a write off of any irrecoverable debt.

Reliance on unapproved Policies 1933. It is a fundamental requirement for a growing institution, which uses Information Technology and a fleet of vehicles to manage its operations to adopt an ICT Policy and Transport Policy respectively. The policies are to ensure that the organization’s objectives are accomplished in a timely manner.

1934. We noted that the Economic and Organized Crime Office (EOCO) operated and conducted business with a draft ICT, Estates and Transport Policy during the period of audit. These documents are yet to receive the governing board’s approval.

1935. The lapse which is due to management’s failure to push for the Board’s approval would deny the office the full benefit of investment in formulating the ICT policies.

1936. We advised that, the ICT, Estates and Transport Policies should be given the needed approval by the governing board to make them operational and give them a legal backing. Management accepted our recommendation and added, “it will push for the approval of these policy documents”

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 458 LEGAL AID SCHEME

Introduction 1937. This report is on the audited accounts of the Legal Aid Scheme for the period 1 January 2013 to 31 December 2014.

Operational results 1938. The Legal Aid Scheme financial year for 2014 ended with a deficit of GH¢8,872.64 as compared to a surplus of GH¢176,241.85 in 2013. Table 197 is the comparative Table of the Income and Expenditure for the year 2014.

Table 197: Comparative Table of the Income and Expenditure – 2013 to 2014 2014 2013 % Income GH¢ GH¢ Change Subvention 2,149,999 3,028,501 (29.0) Internally Generated Fund 0 1,800 (100.0) Donations received 164,670 851,495 (80.7) Total Income 2,314,669 3,881,796 (40.4) Compensation for staff 1,922,039 2,594,684 (25.9) Goods and Services (IGF) 270,391 334,170 (19.1) Assets 131,112 776,698 (83.1) Total Expenditure 2,323,542 3,705,554 (37.3) Surplus/Deficit (8,873) 176,242 (105.0)

1939. Total Income registered a reduction of GH¢1,567,127 in the year under review. The decrease was due to the Scheme’s inability to generate any Internally Generated Fund for the year

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 459 ended 2014 as compared with GH¢1,800 realised in the year 2013. This is attributed to the non- submission of returns from the regional offices for incorporation in the Scheme’s final accounts.

1940. Government subvention for 2014 also decreased by GH¢878,502 due to lack of release of funds for various activities under Goods and Services. Donation received also reduced due to fewer activities which were supported by the Donors in 2014 compared to 2013.

1941. The total expenditure on Goods and Services also decreased by GH¢63,782 which represented 19.1% over the cost incurred in 2013 due to reduction in government releases.

Financial position Details 2014 2013 % GH¢ GH¢ Change Current Assets 344,306 340,942 1.0 Current Liabilities 5,422 1,194 351.8 Net Assets 338,884 339,742 (0.3) Total Assets 338,884 339,742 (0.8) Current ratio 63.5 : 1 284.1 :1 (74.3)

1942. Current Assets increased marginally by 0.92% from GH¢340,942 in 2013 to GH¢344,306 in 2014. The increment was as a result of marginal increase in bank balance from GH¢265,562 in 2013 to GH¢287,975.

1943. The Scheme’s current liabilities which comprise mainly remittance to the Ghana Revenue Authority also increased to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 460 GH¢5,422 due to non-remittances to the Commissioner of Domestic Tax Revenue Division.

1944. The current ratio of 63.5:1 in 2014 of the Scheme reduced from 284.1:1 in 2013to. The ratio shows that the Scheme would be able to settle all account payables when due.

MANAGEMENT ISSUES

Unearned salaries - GH¢6,958.27 1945. Regulation 297 of the Financial Administration Regulation (FAR) 2004,(L.I.1802) enjoins a head of department to immediately stop the payment of salary to a public officer who, resigned or retired, dies or absents himself from duty without leave or reasonable cause for a period as stipulated in the administration regulation of the establishment.

1946. Contrarily, our audit disclosed that two separated officers, Frederick Faidoo and Robert Mensah enjoyed unearned salaries totalling GH¢7,455.90. Frederick Faidoo was dismissed whilst Rebert Mensah resigned as indicated in the Table 198.

Table 198: Separated staff Name Type of Date Of Date Of No. of Unearned separation Separation Deletion Months salary Delayed GH¢ Frederick Dismissal 03/02/14 01/07/2014 5 months 6,485.87 Faidoo Robert Resignation 15/02/12 1/4/2014 1 months 472.40 Mensah Total Unearned Salary 6,958.27

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 461 1947. Though management notified the Controller and Accountant-General for the deletion of the names of the separated staff from the mechanised payment voucher, their inability to inform the bank promptly to stop the payment caused the anomaly which resulted in the loss of GH¢6,958.27.

1948. We recommended that efforts be made by management to recover the total amount of GH¢6,958.27 from the two officers, pay same to Government chest and obtain a Treasury receipt to support the payment failing which the Accountant, whose negligence contributed to the payment should be held liable for the refund.

1949. Management accepted our recommendation.

Staff Loan -GH¢91,969.60 1950. Regulation 179 of the FAR provides that a head of department may not authorise payment to be made out of funds earmarked for specific activities for purposes other than those activities.

1951. In contravention of the above stated regulation, management granted staff advances or loans amounting to GH¢ 91,969.60 to 33 employees from Good and Services which have been earmarked for specific purpose.

1952. Since the organisation had no approved budget for staff advances or loans, the practice constitutes misapplication of funds. We were of the view that misapplication of funds could impact negatively on the operations of the organisation. This could also prevent the Organisation from executing their planned programmes.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 462 1953. We therefore advised management to desist from the practice.

MINISTRY OF TOURISM, CULTURE AND CREATIVE ARTS (MOTCCA)

GHANA TOURIST BOARD

Introduction 1954. This report is on the audited accounts of Ghana Tourist Board for the year ended 31 December 2011.

Operational results 1955. Details of the operations are shown in the Table 199.

Table 199: Statement of Income and Expenditure for 2011 Income 2011 2010 % GH¢ GH¢ Change Government Grant 3,824,569 2,877,159 32.9 Other Income 1,092,351 533,364 104.8 Total Income 4,916,920 3,410,523 44.2 Expenditure Staff Cost 2,602,955 1,534,754 69.6 Administrative Cost 1,059,713 780,234 35.8 Service Activities Cost 1,341,081 1,446,684 (7.3) Depreciation 267,189 213,577 25.1 Financial Cost 5,025 1,977 154.2 Total Expenditure 5,275,963 3,977,226 32.7 Deficit (359,043) (566,703) (36.6)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 463 1956. Total Income registered an increase of 44.2% from GH¢3,410,523 in 2010 to GH¢4,916,920 in 2011. This was mainly due to a 104.8% increase in other income from GH¢533,364 in 2010 to GH¢1,092,351 in 2011.

1957. Expenditure incurred in 2011 totaled GH¢5,275,963 as against GH¢3,977,226 in the previous year representing an increase of 32.7%. The expenditure component included: staff cost of GH¢2,602,955 (2010: GH¢1,534,754) representing 69.6% increase and Administrative cost of GH¢1,059,713 (2010: GH¢780,234) representing a rise of 35.8%.

1958. In the year 2010, the deficit was GH¢566,703 as against a deficit of GH¢359,043 in 2011 representing a decrease of 36.6%.

Financial position 1959. The financial position as at 31 December 2011 is shown in Table 200.

Table 200: Financial position as at 31 December 2011 2011 2010 % GH¢ GH¢ Change Non-Current Assets 2,837,678 2,614,167 8.6 Current Assets 370,751 303,842 22 Current Liabilities 2,211,345 1,561,881 41.6 Net Current Assets (1,840,594) (1,258,039) 46.3 Accumulated Fund 997,087 1,356,127 (26.5) Current Ratio 0.2:1 0.2:1

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 464 1960. Non-Current Assets increased by GH¢223,511 or 8.6% in 2011 mainly due to addition to property, plant and Equipment for the year.

1961. Current Assets increased by 22% from GH¢303,842 in 2010 to GH¢370,751 in 2011. Current Assets was made up of Bank and Cash balances of GH¢93,920 and debtors balance of GH¢276,831 for the year under review.

1962. Current Liabilities recorded an increase of GH¢649,464 or 41.6% from the previous year’s amount of GH¢1,561,881 to GH¢2,211,345 in 2011. This was due to increase in creditors and accruals figure.

1963. The liquidity position as measured by a current ratio of 0.2:1 for both 2011 and 2010 financial years indicates that Ghana Tourist Board cannot meet its short term obligations as they fall due. MANAGEMENT ISSUE

No Title Deeds for the head office land 1964. Land title certificate must be obtained from the Land Title Registry to confirm ownership of land acquired.

1965. Contrarily, we observed that the organization does not have title certificate for the land that the head office is situated on. There is no evidence that the land and the property belongs to the organization.

1966. We recommended that management must ensure that the land is properly registered.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 465 1967. Management stated that the estate officers are liaising with Lands Commission for the registration of the land.

Non-remittance of SSNIT contribution and withheld taxes – GH¢479,163 1968. Contrary to Internal Revenue Act 2000(Act 592) Section 87(1), and SSNIT law, we observed that PAYE and 5% taxes withheld of GH¢215,924 and GH¢57,880 respectively, as well as GH¢205,359 being social security contribution deducted were not remitted to the appropriate statutory bodies on due dates.

1969. This implies that the Board is flouting the laws governing the payment of taxes and social security contribution which could attract sanctions from the appropriate bodies.

1970. We recommended that management should ensure that the outstanding arrears are paid to avoid payments of penalties and prosecution.

1971. Management responded that the payment would be made by the Controller and Accountant-General Department. Management further stated that, they have requested a total amount of GH¢186,000 from the Ministry of Finance and Economic Planning which has already been approved. Upon release of the funds, they will pay off the withholding tax indebtedness.

Receipts of revenue not Lodged before disbursements 1972. Our examination of receipts and lodgements of revenue in all the regions revealed that funds received were not banked

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 466 before disbursement in contravention of regulation 18 of the FAR.

1973. Management explained that the funds were used pending re-imbursements from head office.

1974. Management’s action contravenes Regulation 8(1) of the FAR 2004 (L.I.1802) which is a breach of financial discipline. Sanction for breach of financial discipline shall include reprimand and suspension among others.

1975. We recommended that management should ensure that receipts are banked intact and payments made only from moneys disbursed by head office. Additionally, staff who receive funds are made aware of the provision in the law.

1976. Management stated that, monthly returns submitted from the regions are being monitored.

Internal Audit Section 1977. Section 16(3) of the Internal Audit Act, state that an internal audit unit established under subsection (1) shall in accordance with the Act and standards and procedures provided by the Agency, carry out an internal audit of its MDA or MMDA and shall submit reports on the internal audit it carries out to the Director-General of the Agency.

1978. Our review of the Internal Audit Department revealed that the unit did not have an audit programme guiding its operations. There was no evidence to prove that the section performed any post audit by examining entries in the cash

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 467 books, postings into the ledger, trial balance extracted and the draft financial statements prepared.

1979. This implies that the audit section did not assist management of the Board to ensure that policies and internal checks are followed.

1980. We recommended that the head of internal audit department should prepare a comprehensive audit programme to be followed in the conduct of the audit assignment.

ABIBIGROMMA THEATRE COMPANY

Introduction 1981. This report relates to the audited accounts of Abibigromma Theatre Company for the period 1 January 2013 to 31 December 2014.

Operational results 1982. The Abibigromma Company closed its operations for the year 2014 with a decrease in deficit of GH¢1,588.61 as against the previous year’s deficit of GH¢3,957.00 representing a decrease of 59.9%. The main performance indicators are shown in the Table 201.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 468 Table 201: Statement of Income and Expenditure for the year ended 2014 Income 2014 2013 % GH¢ GH¢ Change Subvention 21,732.00 - - Internally Generated Fund and Other funds 73,091.34 127,222.00 (42.6) Compensation of 381,398.04 514,682.57 (25.9) Employees Total Income 476,221.38 641,904.57 (25.8) Expenditure Goods and Service 96,411.95 131,179.00 (26.5) Compensation of 381,398.04 514,682.57 (25.9) Employees Total Expenditure 477,809.99 645,862.57 (26.0) Surplus/(Deficit) (1,588.61) (3,957.00) (59.9)

1983. The Company recorded a 25.8% decrease in income, from GH¢641,904.57 in 2013 to GH¢476,221.38 in 2014. The decrease in income was mainly due to a fall in Compensation of Employees which accounted for 80.1% of total income. This decreased by 25.9% from GH¢514,682.57 in 2013 to GH¢381,398.04 in 2014. The fall was due to onetime payment of arrears in 2013

1984. Total Expenditure, which was mainly goods and services decreased by 26.0%, from GH¢645,861.57 in 2013 to GH¢477,809.99 in 2014. This was a result of reduction of 79.9% in honorarium and allowance of GH¢40,127.00 in 2013 to GH¢8,069.21 in 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 469 Financial position 1985. The statement of financial position of the Company is presented in the Table 202.

Table 202: financial position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 932.21 1,398.32 ( 33.3) Current Asset 5,243.16 6,545.66 (17.1) Total Asset 6,355.37 7,943.98 ( 20.0)

1986. Non-Current Assets decreased by 33.3% from GH¢1,398.32 in 2013 to GH¢932.21 in 2014. The decrease was due to depreciation charge for the year.

1987. Current Asset made up of Receivables and Bank balances decreased from GH¢6,545.66 in 2013 to GH¢5,423.16 in 2014, representing a fall of 17.1%. This was due to the reduction in cash and bank balances.

MANAGEMENT ISSUES

Unearned Salary – GH¢3,121.75 1988. Notwithstanding the provision of Regulation 297 of the FAR,2004 (L.I.1802), we noted during the payroll audit that, the name of Mr. Osabutey Aguedze who retired and was on contract that ended in August 2013, continued to appear on the payroll until October 2013 when it was deleted. The situation resulted in an unearned salary of GH¢3,212.75 which was paid into his bank account.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 470 1989. Management’s failure to promptly notify the Controller and Accountant-General for the deletion of his name from the payroll contributed to the irregularity. Management’s inaction could result in the loss of the amount to the state if not recovered.

1990. We urged management to step up efforts to recover the amount, pay same to government chest and inform our office for verification failing which the Accountant, whose negligence resulted in the lapse should be surcharged with the amount involved.

1991. Management accepted our recommendation.

Failure to meet target 1992. We reviewed the procedure put in place by management to achieve its revenue targets and noted a shortfall. The Company could only attain 26.3% of its revenue estimates for the period reviewed.

1993. Our investigation disclosed that the Company’s strategy in generating its income; i.e. the Internally Generated Funds (IGF) requires the Company to undertake drama performances in selected second cycle Institutions throughout the country and charge fees for staging of the plays.

1994. The above function requires the Company to liaise with the Ghana Education Service (GES) to ascertain the assigned text books in the approved syllabus and base their performances on the text books.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 471 1995. We however observed that the Company did not pursue proactive measures to enable them discharge their mandate as stipulated above. They did not periodically consult with the GES to update themselves with their syllabus. Hence performances rehearsed based on old text books could not be staged due to revision of text books thereby affecting their revenue generation.

1996. The resultant effect in the shortfall of their estimated revenue is detailed below.

Year Budget Actual Variance GH¢ GH¢ GH¢ 2004 147,670.00 38,777.08 (103,893)

1997. Management blamed the shortfall in the IGF for the period reviewed on the change of syllabus and revision of text books by the Ghana Education Service without the knowledge of the Company. We could however not agree with management on this assertion.

1998. To avert wastage of resources, achieve maximum results and attain the target, we advised management to be proactive in their dealings with the relevant stakeholders.

KWAME NKRUMAH MEMORIAL PARK

Introduction 1999. This report relates to the audited financial statements of the Kwame Nkrumah Memorial Park for the year ended 31 December 2012.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 472 Operational results 2000. The operations of the Park ended with a surplus of GH¢1,034.46 (2011: GH¢1,808.87), a fall of 42.8% over that of the previous years. The performance indicators are as shown in Table 203.

Table 203: income statement for the year ended 2012 Income 2012 2011 % GH¢ GH¢ Change Employee’s 114,092.58 - - Compensation Goods & Services 3,245.56 10,150.17 (68.0) IGF 226,374.00 243,630.10 (7.1) Total Income 343,712.14 253,780.27 35.4 Expenditure Employee’s 114,092.58 - - Compensation Goods & Services 218,673.41 219,274.40 (0.3) Assets 9,911.75 32,697.00 (69.7) Total Expenditure 342,677.74 251,971.40 36.0 Surplus/Deficit 1,034.40 1,808.87 (42.8)

2001. Total Income of KNMP for the year under review totaled GH¢343,712.14 as against GH¢253,780.27 in 2011 recording an increase of GH¢89,931.87 representing 35.4%. The increase was due to employees’ compensation of GH¢114,092.58 which was not provided in the 2011 financial year due to management’s policy for the 2011 financial year.

2002. Total IGF for the year 2012 was GH¢226,374.00 as compared with GH¢243,630.10 in 2011 accounting for a drop of

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 473 GH¢17,256.10 representing 7.1%. This was due to the fact that the number of visitors to Park dropped in 2012.

2003. Total expenditure for 2012 rose to GH¢342,677.74 as against GH¢251,971.40 in 2011, an increase of GH¢90,706.34 representing 36.0%. This was as a result of employees’ compensations in 2012 which was not included in 2011 financial year.

Financial position 2004. The statement of financial position of the Company is presented in the Table 204.

Table 204: financial position as at 31 December 2012 2012 2011 % GH¢ GH¢ Change Current Assets 8,674.18 7,498.28 15.7 Current 141.50 NIL - Liabilities Current Ratio 61.3:1

2005. As a result of increased receivables by 1,482.49 from GH¢667.51 in 2011 to GH¢2,150.00 in 2012, KNMP current assets increased to 8,674.18 in 2012 showing a percentage of 15.7% over 2011 GH¢7,498.28.

2006. The Park’s current ratio of 61.3:1 shows that the Park can pay for its commitment when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 474 MANAGEMENT ISSUES

Tickets Unaccounted for – GH¢5,591.00 2007. In contravention of Regulation 15 of the Financial Administration Regulation (FAR), 2004 (L.I.1802), we noted during our audit that out of the total revenue of GH¢197,269.00 collected from the sale of tickets at the gate of KNMP, GH¢5,591.00 was not accounted for by the Revenue Collector- Mr. G. K. Quansah.

2008. We attributed the lapse to lack of effective managerial supervision; as the Deputy Accountant failed to check to ensure amount being accounted for agrees with the tickets sold before issuing receipt to the revenue collector. The Revenue Collector also disregarded controls put in place by management in accounting for moneys received, leading to loss of revenue to the Park.

2009. We recommended that management should recover the amount involved with interest at the prevailing bank rate from the Revenue Collector, Mr. G. K. Quansah and pay same into the Park’s account and inform our office for verification. Additionally, we urged management to strengthen the control system to avoid recurrence. Meanwhile management should institute disciplinary action against the culprit to serve as a deterrent.

2010. Management stated that the revenue collector involved has duly accepted the amount and he is making frantic effort to refund the said amount. Though management promised to forward receipt of payment for verification, this had not been done as at the time of compiling this report.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 475 NATIONAL COMMISSION ON CULTURE

Introduction 2011. This report relates to the audited financial statements of the National Commission on Culture for the year ended 31 December 2014

Operational result 2012. The Commission ended the year with a surplus of GH¢1,457,280.72 representing a margin of 5595.9%, increasing from GH¢25,584.61 in 2013 to GH¢1,457,280.72 in 2014. Income statement for the year ended 31 December 2014 is shown in Table 205.

Table 205: Income statement for the year 2014 2014 2013 % Income GH¢ GH¢ Inc./Dec Subvention (GOG) 409,203.82 352,503.62 16.1 Other Income 1,788,071.71 137,384.43 1201.5 Total 2,197,275.53 489,888.05 348.5 Expenditure Compensation of 235,523.91 278,380.30 (15.4) Employees Goods & Services 14,490.11 69,024.31 (79.0) Programme 56,499.36 34,204.73 65.2 Training Ghana Youth Project 433,481.43 82,694.10 424.2 (Japanese Grant) Total 739,994.81 464,303.44 59.4 Surplus/Deficit 1,457,280.72 25,584.61 5595.9

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 476 2013. Total Income of the Commission increased by 348.5% from GH¢489,888.05 in 2013 to GH¢2,197,275.53 in 2014. This was mainly due to a Japanese Grant to the Commission in 2014. Government subvention also went up by a margin of 16.1% from GH¢352,503.62 in 2013 to GH¢409,203.82 in 2014.

2014. Total expenditure rose by 59.4% from GH¢464,303.44 in 2013 to GH¢739,994.81 in 2014. The increase was due to a rise of expenditure on Training Ghana Youth Project (Japanese Grant). Financial position 2015. The statement of financial position of the Commission is presented in the Table 206.

Table 206: financial position as at 31 December 2014 2014 2013 % Assets GH¢ GH¢ Inc/(Dec Non-Current 1,168,901.85 745,149.55 56.9 Assets Current Assets 1,054,717.01 17,938.59 5779.6 Current 3,946.02 696.02 466.9 Liabilities Net Assets 2,219,672.84 762,392.12 191.15 Liquidity Ratio 267.3:1 25.8:1

2016. Non-Current Asset of the Commission increased from GH¢745,149.55 in 2013 to GH¢1,168,901.85 in 2014 representing a 56.9% change. Additions to Building and Motor Vehicle accounted for the change.

2017. Current Asset also went up by a margin of 5,779.6% from GH¢17,938.59 in 2013 to GH¢1,054,717.01 in 2014. The

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 477 rise was mainly due to the Bank balance of GH¢1,039,450.00 on the Japanese Grant to the Commission in 2014.

2018. Current liabilities rose from GH¢696.02 in 2013 to GH¢3,946.02 in 2014 representing a 466.9% change

2019. The Commission’s liquidity position remains strong from 25.8:1 in 2013 to 267.3:1 in 2014.

MINISTRY OF LAND AND NATURAL RESOURCES

THE OFFICE OF THE ADMINISTRATOR OF STOOL LANDS (OASL)

Introduction 2020. This report relates to the audited accounts of the Office of the Administrator of Stool Lands for the period 1 January 2012 to 31 December 2012.

Operational results 2021. Total Income registered an increase of 117.8% from GH¢4,021,035.61in 2011 to GH¢8,759,379.56 in 2012. The rise was mainly due to a 129.1% increase in Government Funding which rose from GH¢1,966,899.96 in 2011 to GH¢4,505,020.39 in 2012. Internally Generated Fund (IGF) which is the main contributor to income also showed an increase of 77.2% from GH¢2,040,747.05 in 2011 to GH¢3,616,885.44 in 2012.

2022. The performance indicators are presented in the Table 207.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 478 Table 207: Income statement for the year ended 2012 Income 2012 2011 % GH¢ GH¢ Change Public Fund (GOG) 4,505,020.39 1,966,899.96 129.1 IGF 3,616,885.44 2,040,747.05 77.2 Donor (LAP) 637,473.73 13,388.60 4661.3 Total Income 8,759,379.56 4,021,035.61 117.8 Expenditure - Personnel Emoluments 4,125,036.39 1,806,899.96 128.3 Administration - 1,395,228.76 Service Activity - 883,128.32 - - Project Expenses (LAP) 467,219.29 32,150.59 1353.2 USE OF GOODS & - SERVICE 3,037,754.86 - Total Expenditure 7,630,010.54 4,117,407.63 85.3 Excess of Income/Expenditure 1,129,369.02 (96,372.02) (1271.9)

2023. Expenditure incurred in 2012 totaled GH¢7,630,010.54 as against GH¢4,117,407.63 in the previous year, an increase of 85.3%. The expenditure components included, Personnel Emoluments which increased significantly by 128.3% from GH¢1,806,899.96 to GH¢4,125,036.39 in 2012 as a result of salary increment; Land Administrative Project (LAP) Expenses also rose by 1353.22% from GH¢32,150.59 in 2011 to GH¢467,219.29 in 2012 due to increase in LAP activities.

2024. The Office recorded an operational surplus of GH¢1,129,369.02 in 2012 as against a deficit of GH¢96,372.02 in 2011.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 479 Financial position 2025. The Office’s Fixed Assets up surged by a margin of 4.1%.; from GH¢1,355,512.27 in 2011 to GH¢1,411,047.09 in 2012. The growth in 2012 was as a result of additions to Plant Property and Equipment.

2026. Current Assets which comprised of staff debtors and cash at bank increased by 468.3% from GH¢229,325.32 in 2011 to GH¢1,303,159.52 in 2012.

2027. Liquidity outlook remained strong as no current liability was recorded.

MANAGEMENT ISSUES

Revenue not accounted for-GH¢1,615.00 2028. OASL Management policy and best practice on cash security also requires that cash should be paid to the Chief Collector intact at the next business day or at most within a Week.

2029. In spite of the above policy, we observed that a Commission Collector of the Western Region in the Daboase District, Paul Koomson, failed to account for revenue totaling GH¢1,615.00 collected between January and March 2012. The amount remained outstanding as at the close of the current audit in December 2013. Further investigations disclosed that Mr. Koomson died on 21 May 2012.

2030. Management of the Western Regional Office intimated that several attempts to retrieve the unpaid revenue from the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 480 late Koomson’s guarantors or family had proved futile. They are however committed to the recovery of the full amount from the family of the late Paul Koomson.

2031. In our view the absence of effective monitoring by the District Officer resulted in late discovery of the anomaly. Consequently, Stool Lands revenue collected over the period under review had been understated by GH¢1,615.00.

2032. We advised that District Officers should intensify their monitoring of revenue collectors’ activities to avoid any future recurrence. Meanwhile management should retrieve the amount not accounted from the guarantors or family of the late Paul Koomson as promised failing which the District Officer whose inaction caused the loss should be made to account for it.

2033. Management agreed with our recommendation.

2034. We urged management to ensure that entries in the summary revenue cash book are not discontinued in order to keep track of all revenue collected and subsequent payment to bank.

MINERALS COMMISSION

Introduction 2035. This report relates to the audited accounts of Minerals Commission for the year ended 31 December 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 481 Operational results 2036. Total Income consisting of Internally Generated Funds, Transfer from Capital Grants and Natural Resources and Environmental Governance Grant increased by 2.4% from GH¢26,856,243 in the previous year to GH¢27,510,405 in 2014. This was mainly as a result of 114.4% increase in Natural Resources and Environmental Governance Grant. Table 208 shows the performance indicators.

Table 208: Income Statement for 2014 2014 2013 % Income GH¢ GH¢ Change Internally Generated 23,112,133 23,763,214 (2.7) Funds Transfer from Capital - 1,041,467 - Grants Natural Resources and Environmental 4,398,272 2,051,562 114.4 Governance (NREG) – Grant Total Income 27,510,405 26,856,243 2.4 Expenditure Personnel Emoluments 13,962,986 12,382,412 12.8 Administration and 3,360,531 3,312,640 1.4 General Expenses Services Expenses 7,541,259 7,518,616 0.3 Depreciation 1,269,205 1,597,469 (20.5) Total Expenditure 26,133,981 24,811,137 5.3 Surplus for the year 1,376,424 2,045,106 (32.7)

2037. Total Expenditure of the Commission for 2014 amounted to GH¢26,133,981 compared with GH¢24,811,137 recorded in 2013, an increase of 5.3%. The major items which

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 482 accounted for the increase in expenditure were Personnel Emoluments which rose by 12.8%, and Administrative and General Expenses 1.4%.

2038. The Commission recorded a surplus of GH¢1,376,424 as compared to a surplus of GH¢2,045,106 in 2013. A reduction of 32.7%.

Financial position 2039. The details of the financial position are shown in Table 209.

Table 209: Financial position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 20,984,854 17,875,878 17.4 Current Assets 13,996,093 14,957,349 (6.4) Current Liabilities 692,476 406,545 70.3 Net Assets 34,288,471 32,426,682 5.7 Total Assets 34,980,947 32,833,227 6.5 Current Ratio 20.2:1 36.8:1

2040. Non-Current Assets increased from GH¢17,875,878 in 2013 to GH¢20,984,854 in 2014 representing a 17.4% increase. The increase was attributed to additions in Capital Work-In- Progress, Motor Vehicles, Office Furniture and Equipment and other Intangible Assets.

2041. Current Assets, however, decreased by 6.4% from GH¢14,957,349 in 2013 to GH¢13,996,093 in 2014. This was largely due to an 82.1% reduction in Cash and Bank Balance. 2042. Current Liabilities rose from GH¢406,545 in 2013 to

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 483 GH¢692,476 in the year 2014, registering a 70.3% increase. This was largely due to increase in Accounts Payable.

2043. The Commission’s current ratio at the end of the year was 20.2:1 (2013:36.8:1), although the ratio decreased it still shows that the Commission would be able to meet its short- term obligations as and when they fall due.

PRECIOUS MINERALS MARKETING COMPANY LIMITED Introduction 2044. This report relates to the audited financial statements of the Precious Minerals Marketing Company Limited (PMMC) for the financial year ended 31 December 2014.

Operational results 2045. The Company recorded a Net loss of GH¢8,815,317 in 2014 as against a Net loss of GH¢6,650,615 in 2013, representing 32.5% increase in the net loss.

2046. The Company’s performance indicators for 2014 are shown in Table 210.

Table 210: Income and Expenditure Statement for 2014. 2014 2013 % Income GH¢ GH¢ Change Revenue 135,751,533 109,283,701 24.2 Cost of Sales (131,481,981) (107,825,952) 21.9 Gross Profit 4,269,552 1,457,749 192.9 Other Operating Income 2,504,861 765,054 227.4 Total Income 6,774,413 2,222,803 204.8 Expenditure

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 484 Selling and Distribution 755,018 662,333 14.0 Expenses Staff Cost 3,932,625 3,245,320 21.2 Administrative Expenses 8,174,837 3,212,198 154.5 Finance Cost 3,426,704 1,688,048 103.0 Taxation (699,454) 65,519 (1167.6) Total Expenditure 15,589,730 8,873,418 75.7 Net Loss for the year (8,815,317) (6,650,615) 32.5

2047. Total sales for the year increased by 24.2% or GH¢26,467,832 from GH¢109,283,701 in 2013 to GH¢135,751,533 in 2014. This was largely due to Gold Exports which constitutes 91.6% of the total sales increasing by 25.1% over the previous year’s figure.

2048. Cost of sales registered a 21.9% increase over the 2013 figure of GH¢107,825,952 to GH¢131,481,981 in 2014. The increase in cost of sales was significantly influenced by the cost of sales on Gold Export, which went up by 21.6%.

2049. Total expenditure also increased by 75.7% from GH¢8,873,418 in 2013 to GH¢15,589,730 in 2014. The increase was due to the increases in all the expenditure components over the previous year’s figures. Financial position 2050. A summarized statement of financial position of the company as at December 31, 2014 is presented in Table 211.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 485 Table 211: Statement of Financial Position as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 27,663,102 11,036,633 150.6 Current Assets 21,968,070 16,396,396 34.0 Current Liabilities 38,494,908 24,145,731 59.4 Net Asset 11,136,264 3,287,298 238.8 Current Ratio 0.6:1 0.7:1

2051. Non-Current Assets increased from GH¢11,036,633 in 2013 to GH¢27,663,102 in 2014, a rise of 150.6%. This was largely due to the acquisition of property, plant and equipment amounting to GH¢221,690 and the revaluation of the building by GH¢16,513,939.

2052. Current Assets also went up by 34.0% from GH¢16,396,396 in 2013 to GH¢21,968,070 in 2014. The rise was due to 155.2% increase in Trade Debtors. 44.3% increase in Gold Bullion and 48.3% increase in Jewellery stock.

2053. Current Liabilities also rose by 59.4% from GH¢24,145,731 in 2013 to GH¢38,494,908 in 2014. The increase was mainly due to increases in Bank overdraft, Accounts Payable and Accruals over the previous year figures.

2054. An unfavourable liquidity position was recorded at the end of the year as indicated by a current ratio of 0.6:1 compared to 0.7:1 in 2013. This shows that the company will not be able to meet its short-term financial obligations as and when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 486 MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS AUTHORITY Introduction 2055. This report relates to the audited financial statement of National Sports Authority for the period 1 January 2013 to 31 December 2014.

Operational result 2056. The Authority ended the financial year with a surplus of GH¢43,853.57. The surplus fell by a margin of 58.7% from GH¢106,133.12 in 2013 to GH¢43,853.57 in 2014. The performance indicators are summarized in Table 212.

Table 212: Income statement for 2014 Income 2014 2013 % (GH¢) (GH¢) Change Government Subvention 5,228,695 4,946,058 5.7 Internally Generated Fund (I.G.F) 1,697,517 1,459,518 16.3 Total 6,926,213 6,405,577 8.1 Expenditure Employees Compensation 4,692,971 4,355,618 7.8 Administrative Expenditure 1,025,964 785,569 30.6 Service Activity 832,410 382,843 117.43 Internally Generated Fund(I.G.F) expenses 331,014 774,414 (57.3) Total Expenditure 6,882,359 6,299,443 9.3 Excess of Income Over Expenditure 43,854 106,133 (58.7)

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 487 2057. Total Income increased from GH¢6,405,518 in 2013 to GH¢6,926,213 in 2014. This was mainly due to a 16.3% rise in the Internally Generated Fund from GH¢1,459,518 in 2013 to GH¢1,697,517 in 2014.

2058. Total expenditure also increased by a margin of 9.3% from GH¢6,299,443 in 2013 to GH¢6,882,359 2014. The increase was as result of a 117.4% rise in service expenditure and a 30.6% increase in Administrative Expenditure.

Financial position 2059. The financial position as at 31 December 2014 is shown in the Table 213.

Table 213: Statement of financial position as at 31 December 2014 2014 2013 % (GH¢) (GH¢) Change Non-Current Assets 2,143,813 2,136,268 0.4 Current Assets 118,481 71,673 65.3 Current Liabilities 10,450 - - Net Assets 2,251,795 2,207,941 2.0 Liquidity ratio 11.3:1

2060. Non-Current Assets increased by small margin of 0.4%. This was due additions to Gym equipment. No depreciation is provided for the Authority’s fixed assets.

2061. Current Assets saw a rise of 65.3% due to an increase in the cash and Bank balance from GH¢27,931 in 2013 to GH¢79,973 in 2014. The Authority also registered a Current liability of GH¢10,500 in 2014 which was an overdraft.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 488 2062. The Authority’s liquidity ratio as measured by a current ratio of 11.3:1 in 2014; an indication that the Authority would be able to meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Non transfer of non-tax revenue into the consolidated fund- GH¢552,955.19 2063. Contrary to Regulation 17 of the FAR 2004, we noted that a total amount of GH¢552,955.19 generated as non-tax revenue during the 2013 and 2014 financial years had not been transferred into the consolidated fund. This amount represents 40% of the total non-tax revenue to be transferred into the consolidated fund by the Authority.

2064. The anomaly could be attributed to management’s disregard to the regulation. Failure to lodge the Non Tax Revenue promptly could lead to risk of budget overruns due to excess funds at the Authority’s disposal. The state also would be deprived of the use of the revenue for other viable activities.

2065. We recommended and management accepted to transfer the unpaid Non Tax Revenue and all future revenue into the appropriate Consolidated Fund account without any further delay.

Delay in lodgement of revenue-GH¢138,362.50 2066. Our audit revealed that, cash collected in respect of Hire of Stadium, Stores Rental, Gymnasium Proceeds and Hawkers Dues over the period under review were delayed for period ranging between 2 to 356 days before lodging the

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 489 revenue into the bank in violation of Regulation 18(1) of the FAR 2004, L.I. 1802. A further review disclosed that this unbanked revenue was used directly for Administrative expenditure as the Authority was not receiving its subvention.

2067. Management’s non-compliance to the regulation contributed to the irregularity.

2068. The delay could lead to using current moneys collected to account for an already existing cash shortage. The irregularity also resulted in cash on hand of GH¢125,470.00 as at December 2013 and GH¢12,892.00 as at December 2014 financial years not banked.

2069. We recommended and management accepted to ensure that the Revenue Collectors comply with the regulations by lodging revenue collected promptly to avoid any revenue loss. Meanwhile the Revenue collectors involved should be made to refund the amount with interest at current bank rate as well as sanctioning them to serve as a deterrent to others.

Missing General Counterfoil Receipt (GCRs)-GH¢2,150,738.73 2070. Regulation 225 of the Financial Administration Regulation 2004, states that, ‘used value books shall be retained for safe custody until such time as their disposal under the appropriate regulations has been authorized.’

2071. Examination of the revenue cash book disclosed that three General Counterfoil Receipts (GCRs) books which were used to collect total revenue of GH¢2,150,738.73 were not made available for our examination even though the amount was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 490 entered in the cash book and accounted for. We could therefore not satisfy ourselves that the revenue accounted for in the cashbook was genuinely the total amount collected and recorded. The possibility of the GCRs used for other purpose cannot be ruled out.

2072. The anomaly could be attributed to poor custody of value books at the Authority coupled with ineffective supervision by the head of Accounts.

2073. We urged and management accepted to make the receipts books available for inspection without further delay.

Unreceipted expenditure-GH¢726,954.95 2074. We reviewed payments with the view to establish the genuineness and propriety of expenditure made during the audit period. Our examination of the payment vouchers revealed that, 54 payment vouchers totalling GH¢726,954.95 being payments made on behalf of the Authority were not covered by receipts.

2075. Failure to obtain a receipt or an acknowledgement on the payment voucher to cover these payments was as a result of poor supervision by the Accountant over the Cashier’s duty as well as lack of post transaction review by the Internal Audit Unit.

2076. This irregularity made it difficult for us to confirm whether these payments were genuine and the monies were used for the intended purpose.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 491 2077. We recommended and management accepted that in the absence of valid receipts to authenticate the payments, the payments should be disallowed and the paying officer be surcharged with the amount involved.

Unpresented Payment Vouchers GH¢664,206.78 2078. In spite of the provisions of Regulation 39(2) of the L.I. 1802, 49 payment vouchers amounting to GH¢279,689.78 in respect of the 2013 and 2014 financial years were not presented for audit.

2079. This could be ascribed to making payments before raising the necessary payment vouchers and the inability to properly preserve paid vouchers. As a result, we could not ascertain whether the:-payments were authorized & approved, goods were supplied or service rendered and whether transactions were properly classified and included in accounts.

2080. We recommended that, management of the Authority produces the payment vouchers for our examination or consider the payments disallowed and the total amount refunded by the paying officers. Management accepted our recommendation.

Non-payment of Withholding Tax-GH¢7,055.00 2081. We observed that management failed to pay to the Commissioner an amount of GH¢7,055.00 withheld on a transaction incurred as detailed in Table 214.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 492 Table 214: Non-payment of Withholding Tax Date PV. No. Description Amount Payee GH¢ 5/3/2014 6/3 Payment of 5% 7,055.00 GRA withholding tax

2082. This anomaly occurred as a result of management’s non adherence to Section 87 (1) of the Internal Revenue Act, 2000 (Act 592). Failure to pay the tax has denied the state of much needed revenue for national development.

2083. We recommended and management accepted to remit Gh¢7,055.00 to the Commissioner of DTRD of GRA without further delay to avoid the payment of penalties.

Non recovery of staff advances and loans-GH¢38,498.35 2084. Contrary to Regulation 113 (1) of FAR, 2004 (L.I. 1802) we observed that officers who were granted loans and salary advances totalling GH¢43,722.07 between 2008 and 2014 paid back only GH¢5,213.72 leaving GH¢38,498.35 in arrears as at 31 December 2014 as summarised in Table 215.

Table 215: Non recovery of staff advances and loans Advances Balance as at Payment in Balance as at 1/1/2013 2013/2014 31/12/2014 GH¢ GH¢ GH¢ CAR LOAN 19,698.30 258.32 19,439.98 HAWKERS 24,023.77 4,955.40 19,068.37 Total 43,722.07 5,213.72 38,498.35

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 493 2085. Management’s failure to enforce Regulation 112 by ensuring recovery is made by other possible means accounted for the lapse.

2086. Non-recovery of these advances has resulted in a huge debtors’ balance of GH¢38,498.35 as at the end of the 2014 financial year. The delay in payment of these debts has also deprived other staff of the loan facility.

2087. We urged management to introduce and strictly enforce a recovery schedule to ensure timely settlement of the outstanding advances and loans.

2088. Management responded that affected officers have been informed and some officers have started paying in cash. Management further explained that deduction of the advances would be deducted from any allowances due these affected officers.

Sub-letting of office at Kumasi 2089. The rent contract includes a clause which prevents a tenant from sub-letting a property without proper authorisation and documentation.

2090. We noticed during our regional visit to Kumasi that an office rented to Ghana Post had been sub-let to Fidelity Bank without the Authority’s permission. Management did not also take any action against Ghana Post for sub-letting the property without their consent. We however could not sight any documentation on a rent agreement on the sub-letting of the premises.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 494 2091. The anomaly was as a result of management’s failure to ensure that the property of the Authority is properly safeguarded. Consequently, the payment for the rent by the occupant (Fidelity Bank) was not consistent.

2092. We recommended that the Authority should have a well-documented rent agreement with Ghana Post and then obtain and review the partnership agreement between Ghana Post and Fidelity Bank to ensure that the rent amount is accurately paid.

2093. Management accepted our recommendation.

Poor condition of multipurpose courts 2094. The AngloGold-Ashanti donated funds for the Construction of multipurpose courts throughout the country. We visited some of the courts at Northern, Ashanti and Central Regions to acquaint ourselves with the impact of the Project.

2095. We noticed during our visit to some of the Courts that they have develop cracks and the paint used for the marking of the various courts has started fading off. The courts have been left in the bush, a clear indication that the courts have not been useful to the communities as well as non-maintenance of the courts.

2096. In a letter dated 28 May 2014, addressed to the then Acting Director-General, the Northern Regional Director of the Sport Authority complained about these anomalies which have not been redressed as at the time of the report.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 495 2097. We attributed the abandonment and lack of people patronising the courts to improper citing of the courts. Failure to maintain the project may defeat the purpose of the construction of the multipurpose courts.

2098. We recommended and management accepted to ensure that the Courts are constantly maintained to avoid further deterioration. Management should also ensure the community patronise the courts.

Follow up on the previous audit report 2099. Though the Authority has established Audit Report Implementation Committee (ARIC) and there were minutes to confirm they have been meeting, we noted most of the recommendations in our previous audit reports have not been implemented as detailed below. We urged the ARIC to be more responsive to their function.

Unpaid interest on unauthorized investment-GH¢36,479.45 2100. In spite of previous comment requesting management to retrieve interest on three different unauthorised investment totalling GH¢3,500,000.00 with two of the investments yielding an interest of GH¢36,479.45, Management is yet to retrieve the earlier interest.

2101. Management has also not followed up at the bank to demand the accrued interest on the last investment of GH¢1,000,000 which was return to the account after ten months. Management responded it had paid the GH¢32,410.96 to the Ministry of Youth and Sports but failed to provide evidence to substantiate the claim. We reiterated that

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 496 management should comply with our earlier recommendation without further delay.

Overpayment of cost of work done on Multi-purpose Court Project – GH¢78,241.11 2102. Management has not recovered the over payment of GH¢78, 241.11 made to the Contractors. We urged management to as a matter of urgency get the Contractors to recover the amount.

Cash withdrawal without supporting document-GH¢20,000.00 2103. Though Management provided a Payment Voucher to cover the cash withdrawal of GH¢20,000.00 no receipt was attached. We reiterated that management should get the Ministry to provide the receipt for inspection without delay failing which the amount should be surcharged to the paying officer.

Unpresented Payment Vouchers GH¢79,149.00 2104. Management has made available 6 out of the 9 payment vouchers totalling GH¢40,590 leaving 3 Payment vouchers amounting to GH¢38,559 yet to be provided. We recommended that management should make the rest available without further delay or the amount be recovered from the authorizing and paying officials.

Unaccounted Hockey Pitch revenue - GH¢57,527.50 2105. We noted during our previous audit that the National Hockey Pitch generated a total amount of GH¢57,527.50 as revenue by renting of the pitch and other facilities. The revenue was collected by using unauthorized receipt books which was

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 497 in the name of Ghana Hockey Association (GHA). The amount collected was paid into GHA account instead of the Authority’s account.

2106. We recommended management retrieve the amount from GHA. Management responded that, it has written to Ghana Hockey Association to recover the amount.

Unsighted reports of all sports disciplines under NSA – GH¢1,027,727.81 2107. National Sport Authority has once again failed to issue reports on various sports disciplines even though it has expended an amount of GH¢1,027,727.81 on various sport disciplines during the period. In the absence of reports from the various sport disciplines we could not confirm whether the funds were judiciously used. We advised management to bring pressure to bear on the managers of the sports discipline to submit reports after every event else the amount allegedly spent should be refunded.

EXTRA MINISTERIAL AGENCIES

FINANCIAL INTELLIGENCE CENTRE Introduction 2108. This report relates to the audited accounts of the Financial Intelligence Centre for the year ended 31 December 2014.

Operational results 2109. Below is the Income Statement for the period under review. Table 216: Income statement for 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 498 2014 2013 % GH¢ GH¢ Change Revenue 2,836,776 2,294,471 23.6 Expenditure (Gen. 2,453,865 2,126,966 15.3 and Admin. Exp.) Net Surplus 382,911 167,505 128.5

2110. Revenue for the year 2014 amounted to GH¢2,836,776 as compared to GH¢2,294,471 in 2013, representing an increase of 23.6%. The rise in revenue was due to rise in Government of Ghana Subvention.

2111. Expenditure increased by 15.3% from GH¢2,126,966 in 2013 to GH¢2,453,865 in 2014. This was due to increases in general and administrative expenses.

2112. The year’s operations ended with a surplus of GH¢382,911 representing an increase of 128.5% from the 2013 surplus of GH¢167,505.

Financial position 2113. The financial position of the Centre for the period under review is shown in the Table below. 2014 2013 % GH¢ GH¢ Change Non-Current Assets 395,329 113,424 248.5 Current Assets 1,014,779 1,360,005 (25.4) Current Liabilities 13,000 459,232 (97.1) Net Current Assets 1,001,779 900,773 11.2 Current Ratio 78.1:1 3.0:1 2114. Non-Current Assets consisting of Property, Plant and

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 499 Equipment increased by 248.5% from GH¢113,424 in 2013 to GH¢395,329 in 2014. This was due to acquisition of Property, Plant and Equipment within the current year.

2115. Current Assets on the other hand decreased by 25.4% from GH¢1,360,005 in 2013 to GH¢1,014,779 in 2014. This was mainly as a result of a fall in Cash and Bank Balance and inventories.

2116. Current Liabilities also decreased by 97.1% from GH¢459,232 in 2013 to GH¢13,000 in 2014. This was due to a reduction in trade and other payables. The liquidity position as depicted by the current ratio of 78.1:1 in 2014 (2013:3.0:1) showed a healthy position, meaning the Centre can meet its short-term obligations when they fall due.

ELECTORAL COMMISSION

Introduction 2117. This report relates to the audited accounts of the Electoral Commission for the year ended 31 December 2013.

Operational results 2118. The summary of the Commission’s operations for the year under review is provided in Table 217.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 500 Table 217: Performance indicators for 2013 2013 2012 % Income GH¢ GH¢ Change Government 61,894,375 256,688,758 (75.9) Subvention Miscellaneous 957,092 2,081,346 (54.0) Income Donor Grants - 14,175,695 - Total Income 62,851,467 272,945,799 (77.0) Expenditure Registration and 39,265,121 130,465,025 (69.9) Election Expenses General and 21,697,913 22,209,227 (2.3) Administrative Expenses Depreciation 36,000,951 35,188,911 2.3 Total Expenditure 96,963,985 187,863,163 (48.4) Surplus/(Deficit) (34,112,518) 85,082,636 (140.1)

2119. Total Income decreased by 77.0% from GH¢272,945,799 in 2012 to GH¢62,851,467 in 2013. This change was mainly due to a 75.9% drop in Government Subvention.

2120. Total Expenditure also went down by 48.4% from GH¢187,863,163 in 2012 to GH¢96,963,985 in 2013. This was due to less electoral activities in 2013 as compared to 2012 which was an election year.

2121. The operations of the Commission ended with a deficit of GH¢34,112,518 as against a surplus of GH¢85,082,636 recorded in 2012.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 501 Financial position 2122. Table 218 shows the financial position of the Commission as at 31 December 2013.

Table 218: Balance Sheet as at 31 December 2013 2013 2012 % Item GH¢ GH¢ Change Non-current 98,796,479 128,341,707 (23.0) Assets Current Assets 1,045,141 5,293,552 (80.3) Current 494,849 185,313 167.0 Liabilities Net Assets 99,346,771 133,499,946 (25.6) Current Ratio 2.1:1 28.6:1

2123. Non-Current Assets decreased by 23.0% from GH¢128,341,707 in 2012 to GH¢98,796,479 in 2013. This was due to disposal of motor vehicles and depreciation charge for the year.

2124. Current Assets also went down by 80.3% from GH¢5,293,552 in 2012 to GH¢1,045,141. This was due mainly to an 80.6% drop in Cash and Cash equivalents.

2125. Current Liabilities registered an increase of 167.0% from GH¢185,313 in 2012 to GH¢494,849 in 2013.

2126. The current ratio of 2.1:1 (2012: 28.6:1) though decreased, shows the Commission can meet its short-term obligations when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 502 MANAGEMENT ISSUES

Disposal of motor vehicles 2127. Our review on disposal of motor vehicles indicated that management had no list of the vehicles disposed off. We could therefore, not determine whether the cost and accumulated depreciation of the motor vehicles disposed off had been removed from the fixed assets register.

2128. This was as a result of the Director of Administration’s failure to provide the documents handed over to him on the disposal of the vehicles by the transport officer who had retired at the time of audit. Management also did not ensure the update of the asset resister.

2129. The situation could lead to difficulty in ascertaining the actual value of the vehicles disposed off.

2130. Management should provide us with the list of vehicle disposed off to enable us ascertain the actual value. We also urged management to update its assets register.

2131. Management responded that the fair value of the assets disposed off is estimated to be GH¢402,328.

2132. We wish to emphases that accounts are not based on estimated figures but actual. We therefore stand by our earlier recommendation.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 503 Payments with inadequate supporting documents – GH¢18,785.10 2133. A head of account is required to ensure that transactions are properly authenticated to show that the amounts are due and payable. We however observed that the following amounts were not properly authenticated before payments were made during our regional visits.

Total Amt. Region Amount with Reasons Item GH¢ Defect GH¢ Wa 9,519.00 128.50 No Receipts Fuel Tamale 669.95 669.95 No Over Statement Time Claim Kumasi 54,776.74 9,516.00 No Receipts Election Bolgatanga 365.00 365.00 No Receipts Imprest Sunyani 31,077.05 9,105.65 No Receipts

2134. We recommended that the head of accounts at all pay points should ensure that relevant supporting documents such as receipts, invoices and statements of claims are provided before payments are made to the beneficiaries where possible. In the absence of relevant documents to support the payment, officers in the various regions should be made to refund the amounts involved.

2135. Management responded that the head of accounts have issued instructions to all the regions not to honour any payments without all relevant documents.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 504 STATE ENTERPRISES AUDIT CORPORATION

Introduction 2136. This report relates to the audited accounts of the State Enterprises Audit Corporation (SEAC) for the year ended 31 December 2012 and 2013.

Operational results 2137. The Corporation recorded a surplus of GH¢41,930 which is 184.4% over the 2012 deficit of GH¢49,684. The performance indicators are shown in Table 219.

Table 219: Income Statement for 2013 2013 2012 % Income GH¢ GH¢ Change Professional fees 560,911 491,831 14.0 Other Income 404 224 80.3 561,315 492,055 14.1 Expenditure General and 519,385 541,739 (4.1) Administrative Exp. Surplus/Deficit 41,930 (49,684) (184.4)

2138. Total Income registered an increase of 14.1% from GH¢492,055 in 2012 to GH¢519,315 in 2013. The rise was due to 14.0% increase in audit and assurance fees.

2139. Total Expenditure for the year recorded a decreased of 4.1% which was due to a reduction in most of the General and Administrative Expenses.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 505 Financial position 2140. Table 220 shows the Financial Position as at 31 December 2013

Table 220: Financial Position as at 31 December 2013 2013 2012 % GH¢ GH¢ Change Non-Current Assets 6,142 9,796 (37.3) Current Assets 112,395 81,157 38.5 Current Liability 339,429 350,420 (3.1) Net Current Assets 292,933 334,863 (12.5) Net Asset 220,891 243,920 (110.1) Non-current 72,042 75,396 (4.4) Liabilities Current Ratio 0.3:1 0.2:1

2141. Non-Current Assets decreased by 37.3% from GH¢9,796 in 2012 to GH¢6,142 in 2013. This was due to increase in depreciation.

2142. Current Assets increased by 38.5% from GH¢90,953 in 2012 to GH¢118,538 in 2013. The increase was as a result of the additional investment (NTHC) and increase in Cash and cash Equivalents.

2143. Current Liabilities also decreased marginally by 3.1% from GH¢350,420 in 2012 to GH¢339,429 in 2013. This was due to decrease in accounts payables for the year.

2144. Due to the unfavourable movements in the components of Current Assets, the liquidity position of the Company

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 506 worsened from 0.2:1 in 2012 to 0.3:1 in 2013. This is indicative that the Corporation would not have enough resources to discharge its short-term obligations when they fall due.

NATIONAL POPULATION COUNCIL (NPC)

Introduction 2145. This report relates to the audited accounts of the National Population Council for the period 1 January 2013 to 31 December 2013

Operational results 2146. The year 2013 ended with a surplus of GH¢151,522.36 as against GH¢93,458.25 for the year ending 31 December 2012.

2147. Presented in the Table below is a summary of the Income and Expenditure account for the years ending 31 December 2012 and 2013.

Revenue 2013 2012 % GH¢ GH¢ Change GoG Fund/Grants 1,594,735.81 1,131,975.86 40.9 Donor Fund 144,406.38 - - Others 166,090.76 24,394.20 580.9 Investment - - - Totals 1,905,232.95 1,156,370.06 64.8 Expenditure GoG Fund - - - Personal 1,296,183.00 742,554.00 74.6 Emolument Goods and Services 356,129.94 242,977.19 46.6

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 507 Services/Investment - 77,380.62 - Donor Fund 101,397.65 - - Total Expenditure 1,753,710.59 1,062,911.81 65 Surplus 151,522.36 93,458.25 62.1

2148. Total Income of National Population Council for the year under year review recorded GH¢1,905,232.95 as against GH¢1,156,370.06 in 2012 representing 64.8%.

2149. GoG Fund which is made of worker compensation and goods and services increased by GH¢462,759.95 from GH¢1,131,975.86 in 2012 to GH¢1,594,735.81 in 2013 representing 40.9%.

2150. Total Expenditure for the financial year ended 2013 recorded GH¢1,753,710.59 as against GH¢1,062,911.81 in 2012 representing 65%.

2151. Workers compensation increased to GH¢1,296,183.00 in 2013 from GH¢742,554 in 2012 representing 74.6%. Also good and services increased by GH¢113,152.75 from GH¢242,977.19 in 2012 to GH¢356,129.94 in 2013 representing 46.6%.

Financial position 2152. The Table below provides the Financial Position of the Council as at 31 December 2013.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 508 2013 2012 % Non-Current Assets GH¢ GH¢ Change Non-Current Assets 481,707.28 460,467.28 (4.6) Current Assets Cash In Hand/Bank 17,028.61 37,280.30 (54.3) Debtors/Repayments/Advances 9,650.00 19,884.91 (51.5) Totals 26,678.61 57,165.21 (53.3) Net Assets 508,385.89 517,632.49 (1.8)

2153. National Population Council’s Non-Current Assets increased by GH¢21,240.00 from GH¢460,467.36 in 2012 to GH¢481,707.28 in 2013 representing 4.6%.

2154. Current Asset however, decreased to GH¢26,678.61 in 2013 from GH¢57,165.20 in 2012 representing 53.3%. This was as a result of a drop in cash on hand and at bank from GH¢37,280.30 in 2012 to GH¢17,028.61 in 2013 representing 54.3%.

2155. Net Assets dropped by GH¢9,246.60 from GH¢517,632.49 in 2012 to GH¢508, 385.89 in 2013 representing 1.8%.

MANAGEMENT ISSUES

Imprest not accounted for – GH¢23,100.00 2156. Contrary to Regulation 288(1and2) of Financial Administration Regulation (FAR), we noted during the audit that an amount of GH¢23,100.00 given to eight regions in connection with celebration of world population day is yet to be accounted for. Details shown in Table 221 below.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 509 Date P. V No Amount Region 19/11/13 82/11/13 2800.00 Bolga 19/11/14 91/11/13 3500.00 Sunyani 19/11/15 83/11/13 2800.00 Koforidua 19/11/16 86/11/13 2800.00 Ho 20/11/13 87/11/13 2800.00 Wa 20/11/14 88/11/13 2800.00 Kumasi 20/11/15 84/11/13 2800.00 Sekondi 20/11/16 89/11/13 2800.00 Tamale Total 23,100.00

2157. We attributed this to dereliction of duty on the part of management. We could not, therefore, authenticate whether the money was used for the intended purpose.

2158. We recommended to management, to ensure that the regions involved are made to account for the money without further delay. Management accepted our recommendation and stated that the regions involved were yet to benefit from further grants from the head office and as a form of sanctions; they would withhold their grants until they account for the imprest.

Non Depreciation of Non- Current assets 2159. Our review of financial statements revealed that, management had never depreciated any of its non- current assets since its existence in contravention of Section 53 of Financial Administration Act (FAA), 2003. (Act 654) and good accounting practice. Management however indicated in its Accounting policy 1(b) that management was yet to decide on method and rate of depreciating its fixed assets. This in our

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 510 opinion is long overdue.

2160. Management’s failure to depreciate its non- current assets has the tendency of over stating the value of its non- current assets in the financial statement as well as not disclosing the true state of its non -current assets to its stakeholders. This has the effect of increasing the surplus declared in the financial statement.

2161. We recommended to management to adhered to the above Act and good accounting practice so as to sustain the organization. Management accepted our recommendation for compliance.

Non Maintenance of Asset Register 2162. A good asset management practice requires that an institution records its properties in a register and in a format that will ensure regular maintenance and controls to safeguard the assets or the properties.

2163. We observed that the Council has no asset register in which it records its asset. As at the time of our audit, no asset register has been compiled. We were unable to carry out verification exercise on the assets of the Council to ascertain their status, location, value and existence.

2164. We recommended that management should prepare and maintain an asset register to control its numerous assets. Management responded that they maintained an inventory register which they are systematically upgrading into an asset

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 511 register. This is because the current management does not have information on when some of the assets were procured and at what cost.

INTERNAL AUDIT AGENCY

Introduction 2165. This report relates to the audited Financial Statements of the Internal Audit Agency for the period January 2013 to 31 December 2014.

Operational results 2166. The Agency recorded a deficit of GH¢122,939.48 in 2014 as against a surplus of GH¢78,135.10 in 2013 representing 257.3% decline in performance. The performance indicators are shown in Table 222.

Table 222: Income statement for 2014 2014 2013 % Revenue GH¢ GH¢ Change GOG subventions 3,443,002 2,933,844 17.4 Other Income 370,778 392,733 (5.6) Total Income 3,813,780 3,326,577 14.6 Expenditure Compensation to Employee 2,930,227 2,159,688 35.7 Goods and Services 579,306 695,050 (16.7) Other Expenditure 364,467 328,128 11.1 Depreciation 62,719 65,576 (4.4) Total Expenditure 3,936,719 3,248,442 21.2 Excess/(Deficit) 122,939 78,135 (257.3) 2167. Total Income for the period reviewed increased from

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 512 GH¢3,326,577 in 2013 to GH¢3,813,780 in 2014, representing a 14.6% rise. The increase was mainly due to a 17.4% increase in GOG subventions from GH¢2,933,844 in 2013 to GH¢3,443,002 in 2014.

2168. Total Expenditure for the year 2014 was GH¢3,936,719 as against GH¢3,248,442 in 2013, registering a 21.2% rise. The rise was due to 35.7% increase in compensation to Employees and 11.1% increase in other expenditure.

Financial position 2169. The major components of the Agency’s Financial Position as at 31 December 2013 and 31 December 2014 are shown in Table 223.

Table 223: Balance sheet as at 31 December 2014 2014 2013 % GH¢ GH¢ Change Non-Current Assets 90,691 153,410 (40.9) Current Assets 353,401 543,178 (34.9) Current Liabilities 147,207 276,763 (46.8) Net Current Assets 206,194 266,414 (22.6) Net Assets 296,885 419,824 (29.3) Current Ratio 2.4:1 2.0:1

2170. The Non-Current Assets decreased from GH¢153,410 in 2013 to GH¢90,691 in 2014, representing a decrease of 40.9%. The decrease was due to disposal of Motor Vehicles and Depreciation charged for the year.

2171. Current Assets decreased by 34.9% from GH¢543,178 in

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 513 2013 to GH¢353,401 in 2014. This was due to decreases in all the Current Assets components.

2172. The Current Liabilities also decreased by 46.8% from GH¢276,763 in 2013 to GH¢147,207 in 2014. This was mainly due to 54.6% decrease in Accrued Expenses. The Accrued Expenses constitute about 62% of the current liabilities.

2173. The Agency’s liquidity position as measured by current ratio improved marginally from 2.0:1 in 2013 to 2.4:1 in 2014. This shows that the Agency has the ability to meet its short- term obligations as and when they fall due.

KOFI ANNAN INTERNATIONAL PEACEKEEPING TRAINING CENTRE (KAIPTC)

Introduction 2174. This report covers the audited financial statements of the Kofi Annan International Peacekeeping Training Centre (KAIPTC) for the financial year ended 31 December 2014.

Operational results 2175. The operating Income of the Centre made up of actual and notional went up marginally by 4.1% from GH¢26,531,753 in 2013 to GH¢27,626,678 in 2014. The major components of this included Core Funds which grew from GH¢4,609,013 in 2013 to GH¢7,584,721 in 2014 or 64.6% rise, Internally Generated Fund (IGF) from GH¢1,159,829 in 2013 to GH¢1,913,439 in 2014; Fund from Germany from GH¢4,505,737 in 2013 to GH¢5,502,015 in 2014 or 22.1% increase. The performance indicators are shown in Table below:

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 514 Table 224: Income Statement for 2014 2014 2013 % Item GH¢ GH¢ Changes Operating Income 27,626,678 26,531,753 4.1 Direct Costs (15,540,569) (17,098,516) (9.1) Administrative & (5,566,553) 6,212,547) (10.4) General Expenses Staff Costs (7,089,386) (5,193,268) 36.5 Investment 642,562 582,923 10.2 Income Other Income - 223,238 - Surplus/(Deficit) 72,733 (1,166,417) (106.2)

2176. Direct costs of the Centre decreased by 9.1% from GH¢17,098,516 in 2013, to GH¢15,540,569 in 2014. This was mainly due to 35.9% and 45.6% reductions in accommodation and travel respectively. A 46.2% and 35.4% reductions in Repaid and Maintenance (ICT Equipment) and maintenance of vehicle respectively accounted for the decrease in administrative and general expenses. A 36.5% rise in staff cost was due to upward adjustments in staff salaries. Interest realized from investment income went up by 10.2%.

2177. The Centre’s operations for the year ended with a net surplus of GH¢72,733 as against a deficit of GH¢1,166,417 recorded in 2013, showing a 106.2 reduction in deficit.

Financial position 2178. Presented in the Table below is the financial position of the Centre as at 31 December 2014.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 515 Table 225: Financial position as at 31 December 2014

2013 2012 % GH¢ GH¢ Changes Non-Current 13,897,952 13,470,331 3.2 Assets Current Assets 7,613,015 8,365,244 (9.0) Current Liabilities 1,945,957 1,479,322 31.5 Net Assets 19,565,010 20,356,253 (3.9) Current Ratio 3.9:1 5.7:1

2179. Non-Current Assets increased by 3.2% from GH¢13,470,331 in 2013 to GH¢13,897,952 in 2014. This was as a result of the purchase of plant, machinery and equipment and ICT Equipment during the year.

2180. Current assets dropped by 9.0% from GH¢8,365,244 in 2013 to GH¢7,613,015 in 2014. The decrease was as a result of 51.4% reduction in bank and cash balances from GH¢5,086,305 in 2013 to GH¢2,471,692 in 2014; even though account receivables moved from GH¢934,204 in 2013 to GH¢2,207,857 in 2014.

2181. Current Liabilities, however, increased by 31.5% from GH¢1,479,322 in 2013 to GH¢1,945,957 in 2014. This was due to increase in account payable during the year.

2182. Current ratio measuring the liquidity position for 2014 shows a healthy position of 3.9:1, indicating the Centre can meet its short-term obligations when they fall due.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 516 MANAGEMENT ISSUE

Account Receivables 2183. We noted that account receivables for the year under review increased significantly by 136.3% from a balance of GH¢934,204 in 2013 to GH¢2,207,857 in 2014.

2184. We further noted that, staff debtors and accrued income increased marginally but Trade debtors alone was GH¢1,769,537 (2013: GH¢76,008) a rise of 2,228.1% and other debtors dropped from GH¢536,395 in 2013 to GH¢71,817 in 2014, a reduction of 86.6%.

2185. In as much as training courses are now becoming paramount to the Centre and bringing in revenue to augment donor inflows, it is imperative to put in place, credit control mechanisms to ensure that bad debts are minimized.

2186. We therefore recommended that, a credit control team should be put in place to ensure speedy recoveries of all outstanding debts.

2187. Management responded that, the major course is the PLOG course and Western Accord events and efforts are being made to contact US AFRICOM for the payment.

Repport of the Auditor-General on the Accounts on the public accounts of Ghana – Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 517 Mission Statement

The Ghana Audit Service exists

To promote

· good governance in the areas of transparency, accounta bility and probity in the public financial management system of Ghana

By auditing

· to recognized international auditing standards, the management of public resources

And

· rep orting to Parliament