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REPORT of the AUDITOR GENERAL on the
PUBLIC ACCOUNTS OF GHANA -PUBLIC BOARDS, CORPORATIONS
AND OTHER STATUTORY INSTITUTIONS
FOR THE YEAR ENDED
31 DECEMBER 2012
To be one of the leadingSupreme Audit Institutions
in the world, deliveringprofessional, excellent, and
cost effective auditing
Our Vision
REPUBLIC OF GHANA
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
REPORT OF THE AUDITOR-GENERAL ON THE
PUBLIC ACCOUNTS OF GHANA –
PUBLIC BOARDS, CORPORATIONS AND OTHER
STATUTORY INSTITUTIONS FOR THE YEAR ENDED
31 DECEMBER 2012
TABLE OF CONTENTS Para Page(s)
Para Page(s)
Introduction 1-4 1
PART I
Summary of significant findings and 5-21 2-6
recommendations
Audit opinion 22-28 6-8
PART II
Summary of findings and
recommendations by Ministries 29-138 9-35
PART III
Details of findings & Recommendations
No. Department Para Page(s)
Ministry of Health
1. Ghana College of Physicians & Surgeons 139-179 36-42
2. Nurses & Midwives Council 180-210 42-48
3. National Health Insurance Authority (NHIA) 211-272 48-60
4. Ghana Aids Commission 273-302 60-69
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Ministry of Chieftaincy & Culture
5. Kwame Nkrumah Memorial Park 303-333 69-74
6. National Theatre of Ghana 334-355 74-78
7. Ghana Dance Ensemble 356-368 78-81
8. W.E. Dubois Centre 369-409 81-87
9. Abibigromma Theatre Company 410-421 87-90
10. National Commission on Culture 422-437 90-93
Ministry of Education
11. University of Ghana 438-461 93-99
12. UoG – School of Pharmacy 462-473 99-101
13. UoG – School of Public Health 474-481 101-103
14. UoG – Medical School 482-494 103-106
15. UoG – Central Administration 495-503 106-108
16. UoG – School of Allied Health Sciences 504-512 108-110
17. UoG – School of Nursing 513-521 110-112
18. UoG – Dental School 522-530 112-114
19. Noguchi Memoral Inst. for Med. Research 531-539 114-116
20. Kwame Nkrumah Univ. of Sc. & Techno. 540-567 116-121
21. GIMPA 568-581 121-124
22. GIMPA Executive Conf. Centre (GECC) 582-584 124
23. Accra Polytechnic 585-602 125-128
24. National Service Secretariat 603-668 128-140
25. National Accreditation Board 669-683 141-144
26. University of Education – Winneba 684-702 144-148
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Ministry of Lands, Forestry & Mines
27. Office of the Administrator of Stool Lands 703-728 148-153
28. Land Registration Div. of the Lands Comm. 729-756 153-158
29. Public & Vested Lands Mgt. Div. of Lands
Commission 757-768 158-160
Ministry of Justice
30. Law Reform Commission 769-785 160-163
31. CHRAJ 786-822 163-169
Ministry of Interior
32. National Disaster Management Orgn. 823-831 169-171
Ministry of Communication
33. Postal & Courier Services Reg. Comm. 832-849 172-174
Ministry of Energy & Petroleum
34. Ghana National Petroleum Corporation 850-864 175-177
35. Energy Commission 865-887 177-181
36. National Petroleum Authority 888-903 181-184
37. Ghana Grid Company Ltd. 904-914 184-186
38. Takoradi Area Office 915-926 187-189
39. Kumasi Area Office 927-930 189-190
40. Bulk Oil Storage Transp. Co. Ltd (BOST) 931-939 190-192
41. Unified Petroleum Prime Fund 940-948 192-194
42. Energy Commission – Energy Fund 949-957 194-195
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Ministry of Finance & Economic Planning
43. Rural & Agricultural Finance Programme 958-976 196-200
44. Venture Capital Trust Fund 977-988 200-202
45. Ghana Cocoa Board 989-1004 202-206
46. Students Loan Trust Fund 1005-1014 206-208
47. Public Procurement Authority 1015-1023 208-210
48. National Insurance Commission 1024-1032 210-212
49. Bank of Ghana 1033-1071 212-219
Ministry of Information
50. Graphic Packaging Limited 1072-1087 220-223
51. Ghana Broadcasting Corporation 1088-1108 223-227
52. Graphic Communication Group Ltd. 1109-1124 228-230
53. National Film & Television Inst. 1125-1133 231-232
54. New Times Corporation 1134-1154 233-236
Ministry of Water Resources Works & Housing
55. Tema Development Corporation 1155-1168 236-239
56. Water Resources Commission 1169-1178 239-241
57. State Housing Company Limited 1179-1193 241-244
Ministry of Trade & Industries
58. Ghana Standards Board 1194-1205 244-246
59. Ghana Heavy Equipment Limited 1206-1221 246-249
60. Ghana Supply Company Limited 1222-1231 249-251
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Ministry of Roads & Highways
61. Ghana Highway Authority 1232-1245 251-254
Ministry of Local Govt. & Rural Devt.
62. Northern Regional Poverty Reduc. Prog. 1246-1261 254-257
63. Inst. of Local Govt. Studies 1262-1270 257-259
Ministry of Transport
64. Ghana Airports Company Limited 1271-1283 260-263
65. Ghana Maritime Authority 1284-1294 263-265
Ministry of Food & Agriculture
66. Small Farms Irrigation Project 1295-1311 265-268
Ministry of Environment, Sc. & Technology
67. Soil Research Inst. (CSIR) 1312-1321 269-271
68. Science & Tech. Policy Res. Inst. (CSIR) 1322-1330 271-273
69. Environmental Protection Agency 1331-1341 273-275
70. Inst. of Industrial Research (IIR)-
Council for Science & Indus. Research 1342-1350 276-277
71. Environmental Protection Agency
- National Environmental Fund (NEP) 1351-1363 278-280
72. Forestry Research Inst. of Ghana 1364-1375 280-283
73. Animal Research Institute 1376-1388 283-286
74. Crops Research Institute 1389-1405 286-289
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Other Agencies
75. National Pensions Regulatory Auth. 1406-1430 289-294
76. National Devt. Planning Commission 1431-1442 294-296
77. Internal Audit Agency 1443-1453 297-298
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Contributors
Ernst & Young
Kwame Asante & Associates
Osei Kwabena & Associates
Asamoah Bonsu & Co.
State Enterprises Audit Corporation
Kuffour & Associates
Egala, Atitso & Associates
Deloitte & Touche
Opoku Andoh & Co.
James Quagraine & Co.
Pannel Kerr Forster
MGI Labban Hyde
ADDS Consult
John Kay & Co.
Johnson Arkaah & Co
Sammy Tsahey & Associates
Morrison & Associates
Baker Tilly Andah & Andah
VT Consult
Odoro, Nyarko & Associates
Benning, Anang & Partners
Akus Consult
Baah & Associates
Boating Offei & Co
Robert Azu & Partners
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Institutions for the year ended 31 December 2012
Ref. No. AG.01/109/Vol.2/62
Office of the Auditor-General
Ministries Block ‘O’
P. O. Box MB 96
Accra
Tel.: (0302) 662493
Fax: (0302) 662493/
(0302) 675496
10 September 2013
Dear Mr. Speaker,
REPORT OF THE AUDITOR-GENERAL ON THE
PUBLIC ACCOUNTS OF GHANA –
PUBLIC BOARDS, CORPORATIONS AND OTHER
STATUTORY INSTITUTIONS FOR THE PERIOD ENDED
31 DECEMBER 2012
In accordance with Article 187(5) of the 1992 Constitution of
the Republic of Ghana, I have the privilege to submit my annual
report on the Public Accounts of Ghana- Public Boards and
Corporations to you, to be tabled in the House.
2. The report is in three parts: Part I provides overall summary of
significant findings and recommendations. Part II gives summary of
findings and recommendations according to each Sector Ministry,
while Part III provides details of my findings.
3. Mr. Speaker, as part of the structures in place to promote good
governance, encouraging proper and prudent stewardship of the public
purse by Public Boards, Corporations and other statutory institutions
continues to be my priority. Promoting accountability, efficient and
effective use of the tax payers money remain my objective and it is
my hope that a time will soon come when all public servants will
spend resources with the same care exhibited in spending their own
TRANSMITTAL LETTER
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations
and Other Statutory Agencies for the year ended 31 December 2012
income. In this regard, the greatest professional satisfaction for me is
not only the disclosure of errors, waste and losses, but also the
willingness to correct unsatisfactory situations.
4. Mr. Speaker, I look forward to serving Parliament by
conducting independent and high quality audits on all the statutory
accounts. If my office is to play this vital role effectively as expected,
it must be provided with resources to do the job at the right time. To
this end, I once again wish to renew my appeal for the support of
Parliament in creating an enabling environment for the Audit Service
to achieve its mission and vision.
Acknowledgement
5. I am grateful to the contracted audit firms and my staff for the
execution of the annual audit programme.
6. I also acknowledge the co-operation and support of Chief
Executives and Chief Finan2ce Officers in the course of the audits.
7. Finally, I would like to thank the Public Accounts Committee
for their contributions to good governance and prudent stewardship by
reviewing my reports and reinforcing recommendations to the Public
Boards and Corporations for better financial management.
Yours faithfully,
AUDITOR-GENERAL
THE RT. HON. SPEAKER
OFFICE OF PARLIAMENT
PARLIAMENT HOUSE
ACCRA
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 1
Other Statutory Institutions for the period ended 31 December 2012
REPORT OF THE AUDITOR-GENERAL ON THE
PUBLIC ACCOUNTS OF GHANA –
PUBLIC BOARDS, CORPORATIONS AND OTHER
STATUTORY INSTITUTIONS FOR THE YEAR ENDED
31 DECEMBER 2012
Introduction
The audit of the accounts of Public Boards, Corporations and
other statutory Institutions for the period ended 31 December 2012
has been conducted in accordance with Article 187(2) of the 1992
Constitution of the Republic of Ghana.
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 after examination.
3. I also evaluated the adequacy of the system of internal controls,
compliance with relevant legislations, stated accounting policies and
applicable financial rules and regulations of these organizations.
4. Matters raised in this report are among those which came to my
notice during the period ended 31 December 2012. 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 provides a summary of the significant audit findings and
recommendations;
Part II provides the significant findings and recommendations
according to Sector Ministries; and
Part III deals with the details of findings and recommendations
2 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
PART I
SUMMARY OF SIGNIFICANT FINDINGS AND
RECOMMENDATIONS
5. Presented in Table 1 is the financial impact of the irregularities
with Table 2 showing the irregularities according to Sector Ministries.
Table 1: Summary of financial irregularities for the period ended 31
December 2012.
N
o
Type of
Irregularities
% Amount
GH¢
Amount
US$
Total Amount
GH¢
1 Outstanding
Debtors/ Loans/
Recoverable
charges
84.0 1,696,447,138.54 3,325.00 1,696,453,352.63
2 Cash Irregularities 5.8 114,953,516.99 745,455.00 116,346,697.84
3 Payroll
Irregularities
- 251,805.19 - 251,805.19
4 Procurement
Irregularities
2.5 50,492,451.95 - 50,492,451.95
5 Tax Irregularities 0.1 1,072,001.80 - 1,072,001.80
6 Stores
Irregularities
- 629,683.13 - 629,683.13
7 Contract
Irregularities
7.6 60,497,496.22 50,000,000.00 153,942,496.22
Total 100 1,924,344,093.82 50,748,780.00 2,019,188,488.76
6. Table 1 shows that the irregularities in monetary terms totaled
GH¢2,019,188,488.76 which include US$50,748,780.00 that was
converted into cedi at the prevailing exchange rate of GH¢1.8689 to
the US$1 as at 31 December 2012. My comments on the irregularities
are provided in the succeeding paragraphs.
Rep
ort
of
the A
udit
or-
Gen
era
l o
n t
he
Pu
bli
c A
cco
un
ts o
f G
ha
na –
Pu
bli
c B
oa
rds,
Corp
ora
tio
ns,
an
d
3
Oth
er
Sta
tuto
ry I
nst
itu
tio
ns
for
the p
eri
od
en
ded 3
1 D
ecem
ber
Tab
le 2
: S
um
mary
of
Fin
an
cial
Irre
gu
lari
ties
acc
ord
ing t
o S
ecto
r M
inis
trie
s
Ou
tsta
nd
ing D
eb
tors/
Loa
n
Reco
ver
ab
le c
ha
rges
Ca
sh
Irreg
ula
riti
es
Pay
roll
Irreg
ula
rit
ies
Procu
rem
en
t
Irreg
ula
riti
es
Ta
x
Irreg
ula
riti
es
Sto
res
Irreg
ula
riti
es
Co
ntr
act
Irreg
ula
riti
es
Secto
r M
inis
trie
s G
H¢
US
$
GH
¢
US
$
GH
¢
GH
¢
GH
¢
U S$
GH
¢
GH
¢
US
$
Min
of
Hea
lth
298
,61
6,3
16
.77
- 1
1,8
94
,951
.44
- 6
,639
.63
31,2
22
.80
27,4
61
.33
- 2
0,3
12
.13
- -
Min
of
Chie
ftai
ncy
&
Cu
ltu
re
- -
83,8
28
.92
455
.00
3,4
87
.20
146
,49
9.6
6
51,8
76
.21
- 1
0,6
60
.00
- -
Min
of
Edu
cati
on
5
29
,12
9.7
6
3,3
25
.00
2,4
68
,46
1.4
2
- 1
12
,59
4.7
6
49,7
76
,354
.05
12,8
29
.92
- 4
0,4
00
.00
497
,49
6.2
2
-
Min
of
Lan
d,
Fo
rest
ry &
Min
es
- -
296
,75
8.7
5
- 3
9,5
31
.81
89,2
90
.59
798
.30
- -
- -
Min
of
Just
ice
- -
101
,61
8.0
0
- 8
9,5
51
.79
- 5
3,1
68
.20
- 3
50
,60
1.0
0
- -
Min
of
Inte
rior
- -
- -
- -
- -
- -
-
Min
of
Com
mun
icat
ion
s
- -
- -
- -
11,1
44
.21
- -
- -
Min
of
En
erg
y
2,1
56
,62
0.0
0
- 3
10
,49
4.9
6
- -
- -
- -
- -
Min
of
Fin
ance
&
Eco
n. P
lann
ing
1,3
92
,10
2,7
20
.36
- 8
3,0
22
,553
.00
745
,00
0.0
0
- -
625
,87
5.9
5
- -
60,0
00
,000
.00
50,0
00,0
00.0
0
Min
of
Info
rmat
ion
1
,820
,46
7.2
4
- 3
0,0
68
.00
- -
449
,08
4.8
5
- -
171
,71
0.0
0
-
Min
of
Wat
er
Res
ou
rces
Work
s &
H
ou
sin
g
- -
16,5
74
,567
.00
- -
- -
- -
- -
Min
of
Tra
de
&
Ind
ust
ries
1,2
13
,64
3.2
2
- 2
6,3
00
.00
- -
- -
- -
- -
Min
of
Road
s &
Hig
hw
ays
5,8
91
.19
- -
- -
- -
- -
- -
Min
of
Loca
l G
ovt
&
Ru
ral
Dev
.
- -
- -
- -
285
,46
5.1
8
- -
- -
Min
of
Food
&
Ag
ricu
ltu
re
- -
2,8
45
.00
- -
- -
- -
- -
Min
of
En
v.
Sci
ence
&
Tec
hn
olo
gy
2,3
50
.00
- 3
45
.00
- -
- -
-
- -
Oth
er A
gen
cies
-
- 1
40
,72
5.5
0
- -
- 3
,382
.50
- 3
6,0
00
- -
To
tal
1,6
96
,44
7,1
38
.54
3,3
25
.00
114
,95
3,5
16
.99
745
,45
5.0
0
251
,80
5.1
9
50,4
92
,451
.95
1,0
72
,00
1.8
0
- 6
29
,68
3.1
3
60,4
97
,496
.22
50,0
00,0
00.0
0
4 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Outstanding debts/loans/recoverable charges –
GH¢1,696,453,352.63
7. These irregularities represent trade debtors, staff debtors and
outstanding loans. Absence of debt collection policy or credit
controller to retrieve the debt and managements apathy towards loan
recovery contributed significantly to the anomalies. Also improper
maintenance of records on debtors, absence of debtors aging analysis,
no documentation on loan agreements stipulating the terms and
conditions, failure to ensure that loans are repaid and managements
non compliance with rules and regulations accounted for these
irregularities.
8. I recommend that management of Public Boards, Corporations
and other statutory Institutions should strictly adhere to rules and
regulations pertaining to debts. They should put in place proper
policy on granting of loans and should ensure that adequate measures
are put in place to ensure repayment of loans on due dates to avoid or
mitigate the occurrence of bad debts.
Cash irregularities – GH¢116,346,697.84
9. Cash irregularities comprise misapplication of funds, over
estimation of funds needed, outstanding imprest, payments not
authenticated and cash shortages. These occurred as a result of poor
supervision, lack of control, management’s failure to review approved
budgets and failure of paying officers to demand receipts for
payments made. They also arose as a result of accountants’ failure to
properly file and keep records, management’s failure to ensure the
security and safety of vital documents, non monitoring of customers
payment schedules non maintenance of returned cheques register and
the lax of management in ensuring that accountants adhere to the
stipulation of the Financial Administration Act and other relevant
regulations coupled with poor accounting system.
10. I therefore urge management of Public Boards, Corporations
and other statutory Institutions to strengthen supervisory controls over
Accountants and ensure they adhere to the stipulations of the
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 5 Other Statutory Institutions for the period ended 31 December
Financial Administration Act and other relevant regulations. I also
recommend authentication of all payment vouchers, review of
approved budgets and prompt retirements of imprest.
Payroll irregularities – GH¢251,805.19
11. These lapses were caused by failure of management to exercise
due diligence and failure of officers in charge of payroll to review
payment vouchers to ensure that salaries were paid to only those who
were entitled.
12. They were also caused by management’s failure to notify
bankers to stop payments of unearned salaries. They mostly comprise
payments of unearned salaries to separated staff, non-payment to chest
of unearned salaries and payment to staff members who were not
entitled to receive those salaries.
13. I advise management of the affected institutions to promptly
notify bankers of 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¢50,492,451.95
14. These irregularities occurred as a result of management
procuring goods and services without recourse to procurement
committees of the various institutions and going contrary to the
provision of the procurement Act.
15. I once again recommend that management of the respective
institutions should transact procurement dealings strictly in
accordance with the provisions of the Public Procurement Act, 2003
(Act 663).
Tax irregularities – GH¢1,072,001.80
16. Tax irregularities relates to misapplication of tax revenue,
failure to pay statutory deductions on due dates as required by law and
non- adherence to provisions in the tax laws. They also relate to
transacting of business with non VAT registered persons.
6 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
17. I recommend that Finance Officers should strictly adhere to the
tax laws to ensure that all tax revenue are promptly collected and paid
to the responsible revenue agencies.
Stores irregularities – GH¢629,683.13
18. These irregularities include, non documentation of store items
and fuel not accounted for, resulting from absence of store ledgers,
lack of awareness of officers assigned to store duties, inadequate
supervision, deficient and improvised log books and managements
failure to procure records.
19. I recommend the strengthening of controls over store items,
improved supervision and procurement of store ledgers. I also
recommend the training of officers assigned to store duties and the
strict adherence to the store regulations and Financial Administration
Regulations.
Contract irregularities - GH¢153,942,496.22
20. These mainly relate to non-performance of contract, variations
of conditions of contract without following procedures, non-
specification of mode of payments and the failure to deliver in
contract agreements and ineffective control over contracts.
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 96 audited
financial statements complied with the Ghana Accounting standards
and relevant legislation. In my opinion they presented a true and fair
view of the financial position and performance of the organizations.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 7 Other Statutory Institutions for the period ended 31 December
Accounts submission
23. In the year 2012, two out of a total of 74 Public Boards and
Corporations audited, failed to submit their financial statements at the
time of writing this report. As such I am unable to report on the
current status of the two defaulting organizations to provide
accountability assurance to Parliament.
24. The failure by organizations to prepare financial statements
stifles effective planning and decision making by stakeholders.
25. Once again, we noted that, the lack of accounting knowledge
by some accounting officers, staff constrains, apathy of some Chief
Executives and the failure of some governing Boards of these
organisations to ensure the preparation of the accounts caused delays
in the submission of financial statements or their non-submission.
26. There is still the need for organizations to improve upon their
processes for preparing their financial statements and annual reports
and pay more attention to compliance with the submission deadline of
31 March each year.
27. As stated in my previous reports, to enhance accountability and
timely stewardship of public funds, I recommend that Sector Ministers
as a matter of urgency should take remedial measures to ensure that
Public Boards, Corporations and Statutory Institutions:
Fill the position of Heads of Accounts Units, with personnel
with the requisite skill and experience;
Install computerized accounting software to accelerate the
production of financial statements for audit;
resource their accounts departments to enable them clear
the back log of outstanding accounts and submit them for
audit by 31 December 2012;
Ensure that governing Boards are responsive to their role;
8 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Sanction any Chief Executive who fails to prepare and
submit for audit the organization’s financial statements by
the 31 March deadline; and
Sanction any official whose inaction resulted in these and
future irregularities to serve as a deterrent to others.
Conclusion
28. The operational result and financial positions of the Public
Boards, Corporations and other Statutory Institutions during the year
under review, could have been healthier if there had been effective
supervision of schedule officers. 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). I also recommend that management should institute
or strengthen the Audit Report Implementations Committees within
the organizations in accordance with Section 30 of the Audit Service
Act 2000 (Act 584) to ensure that recommendations made in this
report are duly implemented.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 9 Other Statutory Institutions for the period ended 31 December
PART II
SUMMARY OF FINDINGS AND
RECOMMENDATIONS BY MINISTRIES
MINISTRY OF HEALTH
GHANA COLLEGE OF PHYSICIANS AND SURGEONS
29. We noted differences between figures in the draft financial
statements and the underlying records of the College. Expenditure
figures in the financial statement did not match actual expenditure
recorded in the cash book, hence making the statements misleading.
We referred the financial statements to the Accounts Officer to effect
the necessary corrections and re-submit them for validation, which has
not been done.
30. Eleven payment vouchers amounting to GH¢10,533.91 were
not presented for audit. We recommended that, the head of accounts
produces the payment vouchers for our examination or consider the
payments disallowed and the total amount refunded to the College’s
account. Management should also improve upon the filing and
custody of records.
31. Payments valued at GH¢4,508.78 were without official receipts
from suppliers of goods and services for authentication. We
recommended that the Accountant should obtain the official receipts
from the organizations involved and our office notified for
verification. Failure of which the Accountant should be surcharged
with the amount involved.
32. The Hospitality Section of the College made payments outside
Ghana amounting to GH¢141,885.12 without approval of the
Controller and Accountant General and prior approval of the Minister.
We recommended that management comply with the tenets of the
regulation and should in future seek the approval of the Controller and
Accountant General and the Minister before foreign payments are
made.
10 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
33. Management withheld taxes totalling GH¢16,507.00 in
contravention of Section 87(1) Part X of the Internal Revenue Act
2000. We recommended to management to remit the amount involved
without further delay.
34. Various items worth GH¢20,321.13 purchased during the
period under review did not pass through store records. To avert
diversion and other stores irregularities, we recommended that all
future purchases should be routed through stores to provide an
effective audit trail thereby ensuring accountability.
35. An unearned salary and allowance of GH¢5,891.80 was paid to
Freda Ocansey for the period of July and August 2011, after she had
resigned on 20 June 2011 due to management’s failure to ensure the
stoppage of her salary. We recommended that the amount of
GH¢5,891.80 be retrieved from Freda Ocansey and the Administrative
Manager sanctioned for his inaction.
36. An amount of GH¢57,613.23 was paid as salary arrears to
Benjamin O. Andoh who was dismissed and later re-instated from the
non tax revenue without approval from the Ministry of Finance. We
recommended that the amount of GH¢57,613.23 should be recovered
into the College’s account through the Controller and Account
General’s Department since the expenditure was salary related.
37. No environmental permit was obtained before operating the
hospitality section which led to the payment of an unbudgeted penalty
fees of GH¢1,000.00 to the Environmental Protection Agency. We
recommended that in future the appropriate authorities should be
consulted before setting up any business.
38. Though the College had an Audit Report Implementation
Committee (ARIC) as required by Section 30 of the Audit Service Act
2000 (Act 584), most of the recommendations made in the previous
audit report were not implemented because the committee was not
responsive to its role. We recommended that management should
ensure that the ARIC performs its function as required by law.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 11 Other Statutory Institutions for the period ended 31 December
NURSES AND MIDWIVES COUNCIL
39. An amount of GH¢2,000,000 released in July 2011 for the
completion of the suspended Office complex has been invested in
Treasury Bills instead of continuing with the project. We
recommended that management should apply laid down procedures
and abrogate the contract for non-performance and re-package the
remaining works for tendering and award to a competent contractor.
40. The Council paid an amount of GH¢31,222.80 to M/S Western
Automobile Center Ltd. in August 2009 for the supply of one Nissan
Urvan bus. As at the time of writing, the Company was yet to supply
the vehicle. The Council risks losing this money if not pursued. We
recommended that strenuous effort should be made to recover the
amount from the company.
41. The Council failed to remit Pay-As-You-Earn (PAYE) and
Social Security deductions of GH¢9,196.96 made from contract
(temporal) employees’ salaries for the period under review to the
appropriate authorities. Additionally, an amount of GH¢17,677.15 of
the statutory deductions which had accumulated over the years were
yet to be paid. The practice deprived the state of accrued tax revenue
and the employees were also denied the right of saving towards their
pension. We recommended that the accumulated statutory deductions
totalling GH¢26,874.11 should be remitted to the appropriate
authorities immediately to avoid penalties and employees’ losses.
NATIONAL HEALTH INSURANCE AUTHORITY
42. Levies collected by the Value Added Tax (VAT) service and
Social Security and National Insurance Trust (SSNIT) on behalf of
NHIA Scheme were not ceded to the Authority on time. As a result
CAGD owed a total amount of GH¢113,065,642 and
GH¢185,543,194.77 for 2008 and 2009 respectively and could
adversely impact on the smooth running of the Authority’s operations.
We recommended that management should consistently monitor the
remittances from the Revenue Agencies as well as the CAGD to
12 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
ensure that revenue accruing to the Health Insurance Fund are
remitted to the NHIA as and when they are due in accordance with the
provisions of Act 650.
43. Management failed to withhold the required 5% tax on
payments made for works and services totalling GH¢146,503 resulting
in a loss of tax revenue of GH¢7,325 accruing to the state. We
recommended that management should adhere to Section 88(1) of
Act 592 which requires withholding tax agencies to be held liable and
pay to the Commissioner any withheld tax and advised future
compliance with Section 84(2) of Act 592 for the avoidance of
penalties.
44. Some receipts obtained totalling GH¢131,409 in 2008 and
2009 from Samatra Hospital, a service provider for claim payment to
them had a different name as Samatra Hospital staff Welfare
Association rather than Samatra Hospital. We recommended that
internal control in cash management be strengthened. Also,
management is advised to take the appropriate legal actions against
the officials involved in this act to retrieve the misappropriated funds.
45. A total amount of GH¢56,418 was disbursed to various
facilities without the approval of the Board or District Co-ordinator.
We recommended that management should ensure that appropriate
levels of authorization and approval are sought before payments are
effected.
46. We observed a difference of GH¢1,166,183 between revenue
reported by the Denu Scheme as transfer from Head office and the
amount reported by the Head office as transfers to the scheme. We
recommended that these differences should be investigated and the
required remedial action taken.
47. We did not sight Gambaga Mutual Health Insurance Scheme
receipts of an amount totalling GH¢70,295 being payment made to
some service providers in 2008. To prevent disputes which might
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 13 Other Statutory Institutions for the period ended 31 December
result in double payment, we recommended that management should
ensure that receipts are obtained after every payment. All supporting
documents should also be attached to payment vouchers raised.
48. An amount of GH¢158,526 purported to have been transferred
by the NHIA to the Nanomba North Mutual Health Scheme could not
be traced to the bank statement of the scheme. We recommended that
head office liaises with the scheme to have this difference investigated
and reconciled. Also, the officer in charge of the transfer of the funds
must be held liable if the loss of funds is established.
49. GH¢900,000 was withdrawn from the claims account of the
Oguaaman Mutual Health Insurance Scheme and deposited into a
purported investment account. However, no evidence of the
investment of this amount was made available for our review. We
recommended that management should ensure that these transfers are
followed up to where ever they have been invested. All investments
and interest accrued must be retrieved and paid into the scheme
account. We also recommended that in the event of any losses the
responsible officials should be held liable.
50. An amount of GH¢617,393 purported to have been transferred
from the NHIA to Wa Municipal Mutual Health Insurance Scheme
could not be traced in the scheme’s cash book and bank statements.
We recommended that regular reconciliation should be done between
the Authority and the Scheme to rectify such differences and the
officer in charge of the transfers must be held liable for any losses.
51. The Authority had made a total payment of GH¢3,598,750 on
behalf of some Mutual Health Scheme providers for some claims over
the period under review. However, these amounts were not accounted
for by the schemes. We recommended that the NHIA should always
advice the schemes of any payments made to any service provider on
behalf of the schemes. The procedure for direct payment of claims to
service providers should be streamlined such that the process is
initiated from the schemes.
14 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
52. We noted during our review a difference of GH¢2,482,130
between transfers recorded by Bantama Mutual Health Insurance
Scheme and the NHIA. The amount reported by the NHIA as
transferred to the scheme did not agree with the receipts verified at the
scheme. We recommended that the NHIA and the management of the
Bantama NHIS liaise to investigate this difference and have them
reconciled. Any losses should be accounted for by the responsible
officials.
53. Claims paid to some service providers amounting to
GH¢246,418 were made prior to vetting of the claims. We
recommended that measures be put in place to ensure claims are fully
vetted before funds are paid out so as to promptly identify and correct
any anomalies. The NHIA should also put in place measures to ensure
there are no undue delays in the payment of claims that would
necessitate the payment of claims in advance pending the vetting
process.
GHANA AIDS COMMISSION
German International Cooperation (GIZ)
54. Management of the Project failed to withhold taxes totalling
GH¢1,072 from payments made to suppliers of goods and services. To
improve inflows into the Consolidated Fund, we recommended that
management should comply with the relevant provisions of the tax
law; otherwise responsible officers would be surcharged accordingly
for any future losses.
Ghana Employers Association (GEA), Accra
55. Payment vouchers totalling GH¢2,809 were not signed by the
recipients to acknowledge the receipt of the payment. We therefore
advised management to ensure that these and subsequent payments are
receipted by beneficiaries otherwise the paying officer should be held
liable for a refund.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 15 Other Statutory Institutions for the period ended 31 December
MINISTRY OF CHIEFTAINCY AND CULTURE
KWAME NKRUMAH MEMORIAL PARK
56. Cash payments ranging between GH¢1,050.00 and
GH¢3,519.58, amounting to GH¢195,981.50 was made to suppliers of
goods and services during the two years under review resulting in the
loss of GH¢9,799.08 in withholding tax revenue. We recommended
that management should desist from the practice, failing which
culpable officers would be surcharged with any future loss of tax
revenue.
57. The Accountant failed to produce the bank statements for
Internally Generated Funds (IGF) amounting to U$455.00 allegedly
lodged at Bank of Ghana (BoG) between May and July 2010 and
reported as revenue in the 2010 financial statement for confirmation.
We recommended to management to communicate with BoG and
confirm the existence of the account and our office informed for
verification.
58. Special imprest amounting to GH¢5,700.00 advanced in
November 2010 and September 2011 to Officers for NAFAC 2010
and 2011 Founder’s day celebration respectively have not been retired
as at the time of reporting. We advised the Accountant to ensure full
retirement of the imprest or the Officers be made to refund the various
amounts given to them.
59. Purchases totalling GH¢146,499.66 were made without
obtaining at least three quotations from suppliers. We advised that in
future, management should either seek prior approval from the Public
Procurement Board before engaging in single source procurement or
obtain at least three different quotations for the selection of the most
responsive quote to obtain transparency and fair pricing.
60. Management transacted businesses totalling GH¢146,497.66
with non-VAT registered suppliers. The act deprived government of
GH¢21,974.64 in VAT revenue. We advised management to strictly
adhere to the provisions of Act 654.
16 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
NATIONAL THEATRE OF GHANA (NTG)
61. Withholding taxes amounting to GH¢2,720.43 have not been
paid to the Commissioner, Domestic Tax Revenue Division (DTRD)
of the Ghana Revenue Authority (GRA). We also noted under
deduction of withholding tax of GH¢742.50 on sitting allowances paid
to Board members. To improve inflow of funds into the Consolidated
Fund, we advised management to ensure that the total tax of
GH¢3,462.50 is paid to the DTRD without delay and also put in place
arrangements to recover the amount of GH¢742.50 from the Board
members.
62. Payment vouchers valued at GH¢21,753.85 supposedly raised
for activities within the period under review were not presented for
authentication. Management was advised to ensure that the payment
vouchers are provided together with the supporting documents for our
verification or the amount treated as unjustified expenditure and
recovery made accordingly.
63. Fuel worth GH¢3,800.00 allegedly issued to the driver of
vehicle No. GR 2019 T for official use could not be accounted for as a
result of non-maintenance of a log book. We recommended that
management should procure a vehicle log book for the above
mentioned vehicle and ensure that details of fuel issued are duly
recorded by the driver and officers using the vehicle to certify
journeys undertaken to ensure accountability and efficient use of fuel.
Meanwhile, management should ensure that the fuel amounting to
GH¢3,800.00 is accounted for, failing which the amount should be
recovered to NTG’s bank account.
GHANA DANCE ENSEMBLE
64. Fuel coupons amounting to GH¢2,260.00 issued to vehicle
number GT1862 Y for official use, were not fully accounted for in the
drivers log book. We recommended that, adequate control measure
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 17 Other Statutory Institutions for the period ended 31 December
should be instituted to ensure that fuel usage is properly managed for
the benefit of the Ensemble.
W. E. DUBOIS CENTRE
65. Management made cash instead of cheques payments
amounting to GH¢152,827.35 in settlement of its obligations. This
practice resulted in the loss of GH¢7,641.37 in withholding tax
revenue. We recommended to management to desist from the practice
and adhere to the provision of the FAR.
66. The Accountant made payments amounting to GH¢52,529.57
to various suppliers and service providers without obtaining official
receipts. We could therefore not determine whether the intended
beneficiaries received the amount involved. For proper accountability
and transparency in the utilisation of public funds, we advised
management to ensure that the paying officer obtains the receipts for
these and subsequent payments, failing which the amount should be
recovered.
67. The Cashier could not account for non tax revenue of
GH¢404.00 and $687.38 collected during the period reviewed,
depriving the Centre of the use of the money. We advised
management to recover the amounts from the Cashier and improve on
internal controls and managerial reviews to prevent a recurrence of the
anomaly.
68. Management failed to remit to the Domestic Tax Revenue
Division (DTRD) of the Ghana Revenue Authority (GRA) taxes
amounting to GH¢566.63 withheld from payments totalling
GH¢11,332.60 made to suppliers of items purchased. In another
development, two companies were paid a sum of GH¢50,070.00 for
which the withholding tax of GH¢2,503.50 was not deducted. We
recommended to management to ensure prompt recovery of the tax
and payment of all withheld taxes in order to contribute to the revenue
generation drive of the state and to avoid sanctions.
18 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
69. Management transacted business totalling GH¢22,668.49 with
non-VAT registered suppliers, depriving the state of VAT revenue
amounting to GH¢3,400.27 as a result. We advised management to
adhere to the provision of Act 654.
70. Management’s failure to promptly inform the Controller and
Accountant General’s Department for the stoppage of the salary of
Mr. Ayang Oliver who retired on 4 May 2011 resulted in the payment
of unearned salary of GH¢358.26. We advised prompt recovery of the
amount from the ex-employee or his bankers to government chest.
71. The Centre’s official drivers failed to record fuel worth
GH¢1,181.00 purchased in their respective vehicle log books. We
recommended strict supervision over drivers and the prompt logging
of fuel purchased for the official cars.
ABIBIGROMMA THEATRE COMPANY
72. Due to management’s failure to immediately notify the
Controller and Accountant General’s Department (C&AGD) to delete
the names of separated staff from the payroll, two former employees
were paid a total of GH¢3,128.94 as unearned salaries contrary to
Regulation 298 of L.I. 1802. We recommended that management
recover the amount from the affected officers and lodge same into the
consolidated fund, failing which the amount involved should be
surcharged to the spending officer.
NATIONAL COMMISSION ON CULTURE
73. Goods and services worth GH¢20,496.00 were purchased from
non VAT registered persons which resulted in the loss of
GH¢3,074.40 in VAT/NHIL revenue accruing to the state. We
advised management to comply with the dictates of the above cited
regulation; otherwise defaulting officers would be surcharged with
any loss of government revenue in future.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 19 Other Statutory Institutions for the period ended 31 December
74. Though vehicle log books were allocated to pool vehicles,
drivers failed to record fuel coupons worth GH¢1,250.00 issued for
official use as a result of lax supervision. To ensure judicious use of
fuel, we recommended that the Transport Officer should step up
supervision and the drivers made to account for the fuel coupons
failing which the amount should be recovered into the Commission’s
bank account.
MINISTRY OF EDUCATION
UNIVERSITY OF GHANA
VOLTA HALL
75. Visiting Professor at the Department of Modern Languages
was hosted by the Hall in 2008. The total rent charged amounted to
US$3,352 as at 30 June 2008. However, the rent due had still not
been settled as at 31 December 2009. We recommended that
management of the Hall should follow up to the Department of
Modern Languages and ensure that the rent due is settled.
Institute of Statistical Social and Economic Research
76. The Institute failed to withhold taxes amounting to GH¢3,303
on allowances paid to research assistants, members of staff and other
personnel engaged by the Institute to work on their projects. We
recommended that withholding taxes should be deducted from all
payments made to officers and the deducted taxes paid to the Internal
Revenue Service.
Basic School
77. Pupils indebtedness to the school amounted to GH¢53,202 as at
31 December 2009. We recommended that management of the school
should ensure that arrears of fees are collected promptly from fee
defaulters before final examinations are written. Also, overdue and
doubtful debts should be written off.
20 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Guest Centre
78. A total amount of GH¢169,922 was owed the Centre as at 31
December 2009. Out of this amount three (3) Units of the University
constituted about 50% of the total debts owed the Centre. We
recommended that management should expedite action on the
recovery of the debts to enhance the Centre’s liquidity position.
KWAME NKRUMAH UNIVERSITY OF SCIENCE
AND TECHNOLOGY
College of Art and Social Science
79. A total of GH¢41,724 advanced to staff members of the various
faculties to organize specific programs had not been accounted for.
We advised management to ensure that efforts are made to get the
officers concerned to account for the advances and/or refund them
through their monthly salary deduction.
Basic School
80. An amount of GH¢40,400 was used to buy assorted exercise
books from the University Printing Press to be distributed to the basic
schools. However, we were unable to confirm whether the said
amount had been used for their intended purpose because our request
for the list showing how the distribution was made proved futile. We
recommended that management as a matter of urgency, investigate
this issue and establish procedures to avert future occurrence.
81. Additionally, loans totalling GH¢1,885 have been given to the
Students’ Representative Council (SRC) at the Provost’s office and no
effort was made for the repayment of the loan. We therefore advised
management to retrieve the amount from the SRC.
ACCRA POLYTECHNIC
82. An officer who resigned on 1 August 2011 had his name
deleted from the payroll on 1 January 2012, a delay of five months
which resulted in the payment of unearned salaries of GH¢3,035.44.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 21 Other Statutory Institutions for the period ended 31 December
We recommended that efforts be made by management to recover the
total amount of GH¢3,035.44 from the ex-employee, pay same to
Government chest and obtain a Treasury Receipt for our verification.
83. Two officers who were granted three years study leave each
with pay failed to serve the required five-year bond term before
leaving the School. The officers also failed to refund a total of
GH¢109,559.32 being salaries and allowances paid them while
studying in contravention of the bond requirements. We recommended
to management to take the necessary steps to recover the amount with
interest at the prevailing bank rate from the officers or their guarantors
and pay same to government chest without further delay.
NATIONAL SERVICE SECRETARIAT
84. Management failed to refund to chest a total amount of
GH¢49,679,748.05 representing excess funds released for payment
of personnel allowances and overpayment of allowances recovered
contrary to Regulation 45 of the Financial Administration Regulations
( FAR) 2004 (L.I 1802). We recommended that the above stated
amount and future overpayment recoveries should be paid to chest
without any further delay. At the instance of the audit a request was
made to the Controller and Accountant General for an account number
for payment of the excess funds.
85. We did not sight the payment vouchers for 122 payments
totalling GH¢1,314,173.01. Such act undermines controls provided
for in disbursement of funds. We recommended that management
produce the payment vouchers or the responsible officials should
refund the amount involved into the Secretariat’s account.
86. Forty-one payment vouchers totalling GH¢218,074.78 were not
properly acquitted with adequate and appropriate documentations. The
occurrence was due to the Accountant’s failure to ensure that payment
vouchers were supported with the relevant documents for
authentication. We recommended that the Accountant produces the
necessary documents or refund the amount involved into the
Secretariat’s account.
22 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
87. Imprest totalling GH¢409,292.35 granted to members of staff
to run various programmes was not accounted for even though the
programmes had been completed. This was made possible because no
measures had been put in place to enforce the prompt retirement of
imprest. We recommended that the officers involved should be made
to account for the moneys received without any further delay or the
amount should be adjusted to the personal accounts of the imprest
holders in accordance with Section 288 (1) of FAR.
88. Management failed to promptly remit withholding taxes of
GH¢9,527.12 to the Domestic Tax Revenue Division (DTRD) of the
Ghana Revenue Authority (GRA). We recommended that
management adhered strictly to the above stated regulation and remit
the amount and any future tax withheld without delay to the
Commissioner of the DTRD for the avoidance of penalties.
89. Goods worth GH¢66,206.00 were procured by single sourcing.
We also noted instances where purchases were not supported with
relevant documents among other irregularities. We recommended that
management complies strictly to the laid down procedures as the non-
compliance with relevant provisions of Act 663 blurs transparency
and could compromise value for money.
90. A contract awarded for the printing of ‘T’-shirts worth
GH¢30,400.00 was fragmented into nine lots and awarded to one
contractor thus circumventing the procurement procedures. We
recommended that management comply strictly with the Procurement
Act in order to obtain value for money in its procurement dealings.
91. Procedures for variation of contract were not fully complied
with as a water bottle project awarded at an initial cost of
GH¢472,672.80 was irregularly varied to GH¢856,597.67. The
variation which represented 81% of the original contract amount was
attributed to additional works. We recommended that the additional
works should be repackaged separately and awarded in accordance
with the existing laws.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 23 Other Statutory Institutions for the period ended 31 December
92. Incomplete records were maintained for the Farm Projects.
Consequently, out of a total amount of GH¢593,744.23 invested in the
farms, management produced records to account for an amount of
GH¢82,741.86 leaving a balance of GH¢511,002.37 unaccounted for.
We also noted that management failed to carry out feasibility studies
to inform the investments in the farms. We recommended that in
future, management should ensure the viability of projects before
sinking funds into them. We also advised management to comply with
FAR 1, prepare and present the consolidated farm account for audit.
We further advised management to in future maintain proper records
and books of accounts on the farm to avert such recurrences.
NATIONAL ACCREDITATION BOARD
93. A contract signed with Somuah Information Systems Company
Limited on 24 December 2010 for the design, development and
implementation of a comprehensive Accreditation Management
Information System (AMIS) which was to be completed by 13 June
2012 was 40% complete as at 31 June 2012. To forestall any
consequential cost overrun, we recommended that management
should urge the consultant to come out with a stringent time table for
the early completion of the work, failing which cost fluctuations
should be borne by the company.
UNIVERSITY OF EDUCATION WINNEBA
94. Student debtors from Kumasi and Accra Centers totaled
GH¢108,458 for the period reviewed. We recommended that
management should write to all student debtors to pay their debts or
withhold their certificates till their debts are paid.
MINISTRY OF LANDS, FORESTRY AND MINES
OFFICE OF THE ADMINSTRATOR OF STOOL LANDS
95. A revenue collector, Mr. Richard Anin Mensah was interdicted
and surcharged with GH¢2,500.00 in 2010 for printing and using fake
24 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
receipt books in the collection of revenue resigned in September 2011
without paying the amount. We recommended that management
should conduct a thorough investigation into the case, institute
measures to forestall a recurrence and recover the amount of
GH¢2,500.00 from the defaulting revenue collector.
96. Seven revenue collectors delayed for periods ranging between
12 and 199 days in paying revenue of between GH¢108.50 and
GH¢160,670.72 collected to the Chief Collector in contravention of
FAR 15(1). To forestall revenue leakage, we recommended that
management should step up supervision over revenue collection and
ensure that the Revenue Collectors comply with the provision of the
financial regulation stated. We also recommended that interest at the
prevailing bank rate be charged against defaulting officers as
disciplinary action to prevent any future delays and to serve as a
deterrent to others.
97. Due to delayed deletion of names from the payroll, 16
separated staffs were paid unearned salaries totalling GH¢41,431.81
during the period under review. We recommended that efforts be
made by management to recover the unearned salaries to Government
chest and produce evidence to confirm the refund.
LAND REGISTRATION DIVISION OF THE
LANDS COMMISSION
98. Management extended the service period of 14 national service
personnel to December of the two years reviewed without approval
from the Commission thereby incurring an unbudgeted cost of
GH¢11,703.72 being allowances paid them. In order not to throw the
budget of the Division into disarray, we recommended that in future,
management should budget for and seek approval from the
Commission for the engagement of temporary staff.
99. Management engaged in single source procurement of goods
and services amounting to GH¢13,738.81. We advised management to
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 25 Other Statutory Institutions for the period ended 31 December
comply with the dictates of the PPA to ensure fairness, transparency
and value for money in its procurement dealings.
100. Our audit revealed that management procured goods worth
GH¢5,322.00 from non-VAT registered entities. This resulted in the
loss of GH¢798.30 in VAT/NHIL revenue. We recommended to
management to comply with the provision of the above stated
regulation.
101. The storage facility for land documents was not spacious,
leaking and had neither fire extinguishers nor emergency exit. We also
noted that due to lack of shelves or cabinets, some of the documents
were kept on the bare floor making retrieval for referencing very
difficult and exposing them to fast deterioration. To ensure efficiency
as well as safeguard the documents, we urged management to make
provision in future budgets for funds to acquire a bigger
accommodation with the necessary facilities for the records room.
Meanwhile, management should provide shelves or pallets for the
documents on the bare floor to be arranged.
PUBLIC AND VESTED LANDS MANAGEMENT DIVISION
OF LANDS COMMISSION (PVLMD)
102. Disbursements totalling GH¢282,555.00 were made without
the necessary supporting documents for authentication. As the
anomaly could lead to illegitimate payments, we urged management
to desist from the practice and ensure that the payments are supported
with relevant documents, failure which the authorizing and paying
officers should be surcharged with the amount involved.
103. Management contracted East Legon Lodge to provide hotel
accommodation services to the Commission without competitive
tendering. We advised management to desist from the practice and act
in accordance with the dictates of Act 663 in order that value for
money would be obtained in its future procurement dealings.
104. Contrary to the provisions of the Audit Service Act , 2000 (Act
584), the Commission had not established an Audit Reports
26 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Implementation Committee (ARIC) to implement recommendations
of audit and other monitoring reports. We advised that an ARIC
should be constituted immediately.
MINISTRY OF JUSTICE
LAW REFORM COMMISSION
105. Purchases amounting to GH¢5,228.00 were made from a non-
VAT registered person. Consequently, VAT/NHIL revenue of
GH¢784.20 was lost to the state. We recommended that in future, all
purchases should be made from VAT registered persons; otherwise
officers responsible for the loss of revenue would be surcharged with
the amount involved.
106. Drivers failed to record fuel amounting to GH¢986.00 in
respective vehicle log books in contravention of Store Regulation
1604 as a result of laxity in supervision. We recommended effective
supervision over drivers and strict compliance with the store
regulation cited. We also advised management to ensure that the
drivers account for the unlogged fuel; failing which the amount should
be recovered from them.
COMMISSION ON HUMAN RIGHTS AND
ADMINISTRATIVE JUSTICE (CHRAJ)
107. Imprest totalling GH¢22,512.00 granted to five officers of the
Commission to run various programmes were neither retired nor
adjusted to their personal account even though the programmes had
long been executed. To forestall unspent imprest being held up by
imprest holders to the detriment of the Commission, we recommended
that the officers involved be made to account for the imprest taken or
the amounts be adjusted to a personal advance account in their names
as stipulated by Regulation 288 of the FAR,2004 (L.I. 1802).
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 27 Other Statutory Institutions for the period ended 31 December
108. Notwithstanding our previous audit recommendation coupled
with the Controller and Accountant General’s directives, the
Commission failed to refund to government chest an amount of
GH¢89,551.79 resulting from overstatement made in request for funds
for the payment of personnel emolument. Management was advised to
refund the amount without any further delay. We also recommended
to management to ensure that henceforth, accurate data is submitted
for the release of funds to prevent a recurrence, otherwise the
responsible officers would be held liable for a refund of the excess
funding.
109. Management circumvented provisions of the PPA, 2003 (Act
663) in the procurement of the accommodation for its Commissioner.
We recommended that management should be circumspect and adhere
to the dictates of the PPA in such future transactions to avoid waste
and for programme objectives to be achieved.
110. Out of the total 5% withholding tax of GH¢88,529.00 for the
three year period reviewed, management remitted only GH¢36,145.00
to the Domestic Tax Revenue Division (DTRD) leaving a balance of
GH¢52,384.00. We urged management to pay the outstanding tax and
ensure prompt and regular payments in future.
111. Various purchases amounting to GH¢34,994.89 were not
routed through stores before use in violation of Store Regulation
0502. For accountability of stores, we recommended that supervision
must be strengthened and the store- keeper should keep proper records
on the Commission’s receipts and issue of items purchased.
112. Though management had constituted an Audit Reports
Implementation Committee (ARIC) in accordance with Section 30 of
the Audit Service Act 2000 (Act 584), the Committee was apparently
inactivate as we could not obtain minutes of its meetings for our
review. For prompt implementation of recommendations in audit and
other monitoring reports, we recommended that the ARIC should be
made more responsive to its functions.
28 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF COMMUNICATIONS
POSTAL AND COURIER SERVICES REGULATORY
COMMISSION
113. The Accountant withheld a total amount of GH¢6,924.64 from
payments made to suppliers of goods and services which was yet to be
remitted to the Domestic Tax Revenue Division (DTRD) of the Ghana
Revenue Authority (GRA). We also noted that tax amounting to
GH¢3,147.21 were not withheld on allowances paid to
Commissioners and staff of the Commission. These lapses deprived
the state of tax revenue for its programmes. We recommended that the
tax revenue should be paid to the DTRD GRA without delay.
MINISTRY OF ENERGY
GHANA NATIONAL PETROLEUM CORPORATION
114. Our review of trade debtors revealed that there is a dispute over
an amount of GH¢2,125,347 owed by Sage Petroleum Limited to
GNPC. We advised management of GNPC to follow up on an appeal
made to the National Petroleum Authority (NPA) for arbitration and
take the necessary action to recover the debt in order to save the
Company from any financial distress.
ENERGY COMMISSION
115. An amount of GH¢135,000 was paid to a Landlord in respect
of Land for office building at Tesano by the Commission. However,
the deal to acquire the land did not go through and the amount is yet to
be refunded. We recommended that effort should be made to recover
the amount from the land owners so that it could be used to meet other
operational activities of the Commission.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 29 Other Statutory Institutions for the period ended 31 December
116. An amount of GH¢5,121 owed by former staff of the
Commission had seen no movement for several years. We
recommended that efforts should be made to recover the debts from
the affected persons and in future measures should be put in place to
avert such recurrences of losing public funds.
117. An amount of GH¢150,000 was released by the Ministry of
Energy to the Commission to meet its budgetary requirements
following a request by the Commission. This amount has been in the
books since 2009 and no effort has been made to pay back. We
recommended that a follow-up should be made to the Ministry to
confirm the status of the amount to enable appropriate action to be
taken for fair reporting so as to enhance decision making.
NATIONAL PETROLEUM AUTHORITY
118. An amount of GH¢26,152 owed by Energy Commission in
2010 was still outstanding as at the time of reporting. We
recommended that management should recover the amount owed by
the Energy Commission.
119. As a result of an overpayment of GH¢6,379.69 on each of the 4
Toyota Corolla vehicles purchased by the Authority from Western
Automobile Ghana Ltd, a total amount of GH¢25,494.96 was
overpaid to the latter. We recommended that NPA should make
strenuous efforts to recover the overpaid amount from Western
Automobile Ghana Ltd.
GHANA GRID COMPANY LIMITED
120. A review of monthly fuel dipping report compared with book
balance at Prestea revealed a shortage of 908 litres over a period of 4
months. The persistent experience of such shortage may result in
losses to the Company, therefore we recommended that management
should investigate the cause of the shortages, apportion blame, recover
where necessary and take appropriate measures to address it.
30 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF FINANCE AND ECONOMIC PLANNING
RURAL AND AGRICULTURAL FINANCE
PROGRAMME
121. IFAD funds amounting US$745,000 was invested into a fixed
deposit account with Ecobank. Besides, we could not obtain the
investment certificate for the fixed deposit made. Again, there was no
agreement on file nor correspondence showing duration or rate of
interest on the investment. We advised that where funds are used for
purposes other than that provided in the financing agreement prior
approval should be sought from the funding agency to prevent any
displeasure which might negatively affect the furtherance of the
Project. Management should also obtain the necessary certificate for
the investment to ensure that the right amount of interest is paid and
on time.
VENTURE CAPITAL TRUST FUND
122. Amount due from loan defaulters amounted to GH¢333,344 as
at the end of December 2012. The Trust Fund introduced a
Development Assisting Fund which a lot of people took advantage of
and had the loan but woefully failed to adhere to the repayment terms
resulting in the outstanding debt. We recommended that management
should make the necessary efforts, even including legal action to
recover the loan from defaulters.
GHANA COCOA BOARD
123. Members of staff who were given imprest to the tune of
GH¢22,553 in 2010/2011 had since not accounted for the imprest
amounts even after completion of the programme. We recommended
that the affected staff should immediately be made to account for the
total outstanding amount or be held liable for a refund by deductions
from their salaries.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 31 Other Statutory Institutions for the period ended 31 December
BANK OF GHANA
124. Bank of Ghana (BoG) has a controlling interest in the Central
Securities Depository, International Bank PLC and Ghana
International Bank payment and settlement systems. However none
of these subsidiaries prepare financial returns to Bank of Ghana, the
holding company, so as to properly track and monitor their financial
performance. This situation also results in significant delays in
getting consolidated financial statements readily for review. We
advised BoG to put in place measures which would ensure proper
monitoring of financial performance of its subsidiaries and for early
presentation of trial balance for preparation of its Consolidated
Accounts.
125. A short term loan facility granted by BoG to the National
Investment Bank (NIB) of GH¢60,000,000 due on 20 September 2009
and further extension to 31 March 2010 remained unpaid as at the
time of reporting. We also did not sight any security backing the loan.
Similarly BoG granted a Bridging Facility to GCB under an MOU
made up of a cedi equivalent of US$25,000,000 and US$50,000,000
.However the bridging facility of US$ 50,000,000 remained unsettled
as at the time of reporting. We recommended that management
should take necessary steps to ensure that all loans are governed by
valid loan agreement.
126. Withholding taxes deducted on payments for goods and
services in excess of GH¢50 had not been paid to the Commissioner
of DTRD promptly within the stipulated period. Consequently
withholding tax payable to the tune of GH¢625,875.95 had
accumulated as at 31 December 2011. We advised management to
comply with the requirements of Section 87(1) of Act 594 by
remitting these immediately and subsequent withheld taxes should be
remitted by the 15 of the month following the month of deduction for
the avoidance of penalties.
32 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF INFORMATION
GRAPHIC PACKAGING LIMITED
127. Raw materials purchased worth GH¢140,073 since August
2011 for the production of labels for Blue Skies Limited were still in
stock. This was because Blue Skies Ltd changed its label. We
recommended that efforts should be made to use the material in time
to prevent them from becoming obsolete whilst at the same time
releasing the locked up capital.
128. A total debt of GH¢ 11,130 owed G-Pack by 3 companies have
seen no movement since 2009. We advised management to intensify
its debt collection effort as this could worsen the existing financial
distress position of the Company.
GHANA BROADCASTING CORPORATION
129. Debtor’s balances totalling GH¢796,258 had been reduced to
GH¢333,778 while some totalling GH¢446,166 had been written-off
without authorization. Management is advised to come up with a
clearly documented policy for the handling of overdue debts. Also,
any debt written off or reduced should be authorized by the Board and
approved in line with existing regulations.
GRAPHIC COMMUNICATION GROUP LIMITED
130. The intercompany balance with G-Pack Limited did not agree
with that of Graphic Communication Group Limited. The balance as
at 31 December 2011 as per GCGL general ledger was GH¢1,078,694
but that of G-Pack general ledger was GH¢1,048,626 resulting in a
difference of GH¢30,068. We recommended that management
prepares reconciliation between the subsidiary and the parent
company accounts and any differences noted should be investigated
and resolved.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 33 Other Statutory Institutions for the period ended 31 December
MINISTRY OF WATER RESOURCES,
WORKS AND HOUSING
TEMA DEVELOPMENT CORPORATION
131. We sighted a letter referenced SCR/LCD/353/42 dated 13/4/10
revealing the Corporation’s indebtedness to Land Commission to the
tune of GH¢16,574,567(£7,705,517) being unpaid rent spanning a
period of 23 years. Management however, objected to the amount
being claimed by the Lands Commission. We advised that
management should have a discussion with the authorities of Land
Commission to resolve the issue.
MINISTRY OF TRADE AND INDUSTRIES
GHANA STANDARDS BOARDS
132. The Board auctioned two (2) saloon cars and five Pick-up
valued at GH¢26,300 by State Transport Company (STC). However
there were no receipts to confirm receipt of the auction proceeds and
subsequent payment made into the Non-Tax Revenue Account at the
Bank of Ghana. We recommended that management should produce
the relevant documents to confirm the receipts of the auction proceeds
and subsequent payment into the Non Tax Revenue Account and
advised that an official of the Board should be present whenever any
item of the Board is to be auctioned in order to ensure proper
accountability.
GHANA HEAVY EQUIPMENT LIMITED
133. A total amount of GH¢1,213,643 had been standing on Debtors
accounts for over four years without any movement. Management
was advised to make strenuous effort to recover the debt and in
instances of unrecoverable appropriate action should be taken in line
with existing regulations.
34 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF ROADS AND HIGHWAYS
GHANA HIGHWAY AUTHORITY
134. Imprest amounting to GH¢5,891 was not retired at the Ashanti
Regional Office. Management should ensure that the amount involved
should be retrieved from the concerned officers.
OTHER AGENCIES
NATIONAL PENSIONS REGULATORY AUTHORITY
135. The Authority retained an amount of GH¢87,450.00 being
100% of Internally Generated Funds (IGF) collected without any
legislative approval. We advised management to disclose collections
of all non tax revenue to the Ministry of Finance and Economic
Planning (MoFEP) and also seek approval for retaining the IGF
otherwise the revenue should be paid into the Consolidated Fund.
136. Allowances paid to board members and sub-committee
members were not subjected to 10% withholding tax totalling
GH¢3,382.00. We urged management to comply with the tax law and
to remit the amount in default to the Domestic Tax Revenue Division
(DTRD) of the Ghana Revenue Authority (GRA).
137. Fuel purchases of GH¢36,000.00 made during the year were
not entered in either the fuel register or the vehicle log books to
facilitate proper accountability in contravention of Chapter 1604 of
Stores Regulation 1984 because the records were not being
maintained. We advised management to ensure that all fuel purchased
are recorded in the fuel register before issues are made. Additionally,
the management should ensure that vehicle logbooks are maintained
for all vehicles for drivers to record receipt or purchase of fuel, oil and
lubricant whilst officers using the vehicles certify journey undertaken.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 35 Other Statutory Institutions for the period ended 31 December
NATIONAL DEVELOPMENT PLANNING COMMISSION
138. Management retained National Service Personnel as a result of
which Service Activities funds amounting to GHȼ53,275.50 was
misapplied in the payment of their allowances to the detriment of
planned activities. We advised management to institute an
appropriate Scheme of Service to allow for the engagement of the
requisite staff needed for its operations. We also advised management
to consider in the interim the option of dissociating the retained
National Service Personnel from the Commission onto the National
Youth Employment Programme (NYEP).
36 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
PART III
DETAILS OF FINDINGS AND
RECOMMENDATIONS
MINISTRY OF HEALTH
GHANA COLLEGE OF PHYSICIANS AND SURGEONS
Introduction
139. This report relates to the audited accounts of the Ghana College
of Physicians and Surgeons for the year ended 31 December 2011.
MANAGEMENT ISSUES
Disparities between the financial statement figures and the
underlying records
140. One of the financial duties of a head of department is to ensure
that annual accounts of the department are correctly prepared, signed
and submitted to the various stakeholders, three months after the end
of the year.
141. Besides management of the College not submitting the draft
financial statements on time, we also noted that the financial
statements were flouted with errors. Our review disclosed differences
in figures between the draft financial statement and the underlying
records. Below are some of the disparities.
Account head cash book figure financial stmt figure variance
Telecom 3,785.22 5,735.00 (1,949.78)
Advert Nil 2,823.00 (2,823.00)
Fuel & lub. 12,349.00 10,399.00 1,950.00
Insurance 109.16 10,099.00 (9,989.84)
Duty/prof Allw 72,336.16 51,467.00 20,869.16
Fuel allowance 15,144.00 24,432.00 (9,288.00)
Housing sub. 37,012.02 43,828.00 (6,815.98)
Depreciation 698,540.00 141,556.00 546,984.00
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 37 Other Statutory Institutions for the period ended 31 December
142. These lapses were due to the negligence of the Accounts
officer who failed to ensure that the correct figures were posted from
the cashbook to the general ledger, and the trial balance extracted for
the preparation of the financial statements. Management also relented
in its supervisory role.
143. This made the draft financial statements misleading as values
reported were different from the actual expenditures incurred. We
therefore referred the statements to the Accounts Officer to effect the
necessary corrections and re-submit them for validation. This has not
been done as at the time of reporting.
Unpresented payment vouchers GH¢10,533.91
144. Regulation 1(c) of the FAR enjoins any public officer
responsible for the custody, care and use of public stores, to keep
proper records of all transaction and to produce the records for
examination when called upon to do so by the Minister or the Auditor-
General.
145. In violation of the aforementioned regulation, 11 payment
vouchers totalling GH¢10,533.91 were not presented for audit. As a
result, we could not ascertain the propriety or otherwise of the
payments. The drift from laid down procedure could give rise to
fictitious expenditure and provide opportunity for abuse.
146. The irregularity was attributed to making payments before
raising the necessary vouchers and the inability to properly file and
preserve paid vouchers for audit.
147. We recommended that, management produces the payment
vouchers for our examination or the total amount involved recovered
from the paying officer. Management should also improve upon its
filing system and custody of records.
Payments without official receipts GH¢4,508.78
148. Contrary to Regulation 28 of the FAR, three service providers
failed to issue official receipts for payments amounting to
GH¢4,508.78.
38 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
149. The anomaly was due to poor supervision by the Principal
Accountant.
150. The absence of valid receipts and other relevant documents to
authenticate payments cast doubt on the genuineness of the
transactions.
151. We therefore recommended that, the Accountant should obtain
the official receipts from the organizations involved and our office
informed for verification or the amount involved surcharged to the
Accountant, to which management agreed.
Unauthorised foreign payments for goods in the Hospitality
Department
152. Regulation 42(1) of the FAR, 2004 (L.I.1802) states that,
“Payments outside Ghana shall be made only under the specific
authority of the Controller and Accountant-General (C&AG) with
prior approval of the Minister in accordance with approved
estimates”.
153. Contrary to the above regulation, the Hospitality Department of
the College made foreign purchases of food stuffs amounting to
GH¢141,885.12 between January and December 2011 without
specific authority from the C&AG. The modalities for the foreign
payment were also not approved by the Minister. 154. The anomaly we noted was due to Management’s ignorance of
the above regulations which is not an excuse. We recommended that
in future the above regulations should be adhered to if foreign
payments are to be made.
PAYE not remitted to DTRD - GH¢16,507.00
155. Part X Section 87(1) of the Internal Revenue Act 2000 requires
a withholding agent to pay to the Commissioner a tax that has been
withheld within 15 days after the end of the month in which the
payment, subject to withholding tax, is made by the withholding
agent.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 39 Other Statutory Institutions for the period ended 31 December
156. Contrary to the above law, we noted that a total amount of
GH¢16,507.00 being accumulated PAYE withheld by management of
the College had not been remitted to the Commissioner, DTRD of
GRA as at the time of reporting.
157. The anomaly was because management grossed over the above
regulation and this has denied the state of the much needed revenue
for its developmental projects.
158. We recommended and management agreed to remit the whole
amount of GH¢16,507.00 to the Commissioner of the DTRD without
delay.
Purchases not routed through stores GH¢20,321.13
159. Stores regulations 0502 and 0604 requires that goods received
should be recorded in the appropriate ledger and tally cards, and issue
of same made on authority of properly signed requisition.
160. In contravention of the aforementioned regulation we observed
that stores items worth GH¢20,321.13 purchased between January and
December, 2011 did not pass through the stores records of the
College. They lack evidence of their acquisition and consumption.
This situation was attributed to breakdown of controls over the
procurement procedures and the purchase of goods.
161. This omission could lead to diversion of goods and other store
malpractices. We therefore recommended that, all future purchases
should be taken on ledger charge before payments are made.
Meanwhile management of the College should take steps to account
for the goods involved.
Unearned salary and allowances - GH¢5,891.80
162. Our review of the College’s salary payment vouchers disclosed
that Freda Ocansey who resigned on the 20 June 2011 was paid salary,
car maintenance and utility allowances up to August 2011, amounting
to GH¢5,891.70. We noted that though the Rector wrote to the bank to
40 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
stop her June salary on 21 June 2011, the Administrative Manager on
behalf of the Rector also wrote another letter referenced
GCPS/Administration/HR/05, to the bank to release her June salary,
enabling her to collect the subsequent month’s salaries.
163. The lack of coordination between the Administrative Manager
and the Rector resulted in the lapse. The Accountant also failed to
notify the Controller and Accountant General for the stoppage of her
salary.
164. Payment of unearned salaries to separated staff, drain
government coffers and deprived the state of the much needed funds
for development.
165. We accordingly advised management to recover the amount of
GH¢5,891.70 from Freda and pay same to chest without further delay,
failure of which the Administrative Manager whose inaction caused
the loss should be surcharged with the amount involved.
166. Management in response stated that it would liaise with
Ocansey’s bankers to ascertain if the unearned salaries had been paid
to Controller and Accountant General’s account.
Payment of salary arrears and allowances from IGF without any
authority
167. Section 5(a) of the Retention of Funds Act (Act 735) states that
“despite any other provision in any enactment to the contrary;
Internally Generated Funds can only be utilised 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.”
168. Management however paid an amount of GH¢57,613.23 as
salary arrears and allowances to Benjamin O. Andoh who was
dismissed and later re-instated by a court ruling. The payment was
made from the non tax revenue without Parliamentary authority.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 41 Other Statutory Institutions for the period ended 31 December
169. Management explained that Minister of Health vide letter no.
MOHA.003 dated 8 August 2011 gave approval for the College to use
its non tax revenue to pay the officer.
170. We were of the opinion that management should have sought
financial clearance from the Ministry of Finance and Economic
Planning for the Controller and Accountant General Department
(C&AGD) to effect the payment since the expenditure was salary
related.
171. We recommended that, the officer’s salary should be
regularised and the amount of GH¢57,613.23 recovered through the
C&AGD, failing which the Authorising and Approving Officers be
surcharged. We also urged management to adhere to the provisions of
Act 753 in subsequent transactions.
Payment of penalty fees to Environmental Protection Agency -
GH¢1,000.00
172. The establishment of any facility which could have an effect on
the environment requires environmental permit from the
Environmental Protection Agency (EPA). The violation of this
requirement attracts a penalty charge.
173. Management of the College failed to obtain environmental
permit before operating its hospitality management section. This
omission resulted in the payment of a penalty of GH¢1,000.00 to the
EPA. The financial cost of GH¢1,000.00, which distorted the
budgetary allocation of the College, could have been avoided if
management had complied with existing rules and regulations.
174. We recommended and management agreed that in future it
would seek permission from the appropriate authorities before setting
up any such facility; otherwise negligent officers would be surcharged
with future loss of funds.
Non implementation of the previous audit recommendations
175. Section 30 of the Audit Service Act 2000 (Act 584) requires
institutions audited by the Auditor-General to establish an Audit
42 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Report Implementation Committee (ARIC) to see to the
implementation of recommendations made in audit reports as well as
directives of Parliament to address weaknesses and irregularities in
MDA’s.
176. We noted that, though the College has an Audit Report
Implementation Committee (ARIC) in place, most of the
recommendations made in the previous Audit report had not been
implemented. Management also failed to respond to our previous
management letter referenced CAD/DA/VOL.1/01 dated 11 May
2012 in contravention of Section 29 of Act 584.
177. We attributed this to the failure of ARIC to be responsive to its
role.
178. We recommended that, Management of the College should
ensure that, the ARIC performs its function as required by law. We
also advised management to endeavour to respond to audit reports
within the stipulated time to ensure best management and sound
financial practices.
179. Management in response requested that the contents of the
previous audit report to be made known to them to enable them
respond appropriately. We could not agree with management’s
demand as the previous report was addressed to the College.
NURSES AND MIDWIVES COUNCIL
Introduction
180. This report relates to the audited accounts of the Nurses and
Midwives Council for the year ended 31 December 2011.
Operational results
181. The Council recorded a surplus of GH¢1,461,372.63 in 2011
which represents an increase of 41.7% as against that of 2010 which
amounted to GH¢1,031,440.52. Table 1 shows the details of the
performance indicators.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 43 Other Statutory Institutions for the period ended 31 December
Table 1: Comparative income statement for 2011 and 2010
Income
2011
GH¢
2010
GH¢
%
Change
Subvention 489,852.15 513,481.27 (4.6)
Internally Generated Fund
(IGF)
5,492,415.20 3,183,102.28 72.6
Interest received - 63.48 -
Total Income 5,982,267.35 3,696,647.03 61.8
Expenditure
Personnel Emoluments 527,619.16 461,916.14 14.2
Administrative Activities 1,152,064.90 679,914.57 69.4
Service Activities 2,841,210.66 1,523,375.40 86.5
Total Expenditure 4,520,894.72 2,665,206.11 69.6
Income Surplus 1,461,372.63 1,031,440.52 41.7
182. The Council’s total income increased by 61.8% from
GH¢3,696,647.03 in 2010 to GH¢5,982,267.35 in 2011. The rise in
income was mainly due to an increase in IGF by 72.6% from
GH¢3,183,102.28 in 2010 to GH¢5,492,415.20 in 2011. This resulted
from increase in enrollment into the Council’s scheme thereby giving
rise to the registration fees which is the main component of the IGF.
183. Total expenditure of the Council also increased by 69.6% from
GH¢2,665,206.11 in 2010 to GH¢4,520,894.72 in the year under
review. Administrative expenditure rose by 69.4% from
GH¢679,914.57 in the previous year to GH¢1,152,064.90 in 2011 due
mainly to increase in expenditure on Committee of Council
Allowance, Allowances and others and Operational Enhancement
Expenses.
184. Similarly, Services Activities increased by 86.5% from
GH¢1,523,375.40 in 2010 to GH¢2,841,210.66 in 2011 mainly as a
result of expenditure incurred on hotel accommodation and local
consultancy.
Financial position
185. Presented in Table 2 is the financial position of the Council as
at 31 December 2011.
44 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 2: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 396,904.14 424,890.80 (6.6)
Investment 2,000,000.00 - -
Current Assets 2,317,400.93 2,801,167.53 (17.3)
Current Liabilities 34,466.66 7,592.55 354.0
Net Asset 4,679,838.41 3,218,465.78 45.4
Accumulated Fund 4,679,838.41 3,218,465.78 45.4
Non-current assets
186. The Council’s non-current assets went down by GH¢27,986.66
representing 6.6% decrease, from GH¢424,890.80 in 2010 to
GH¢396,904.14 in 2011.The decrease was mainly due to depreciation
of non-current asset of the Council for the year under review.
187. The investment in 2011 was due to the purchase of a 91 day
treasury bill during the year under review. The investment was
purchased with the GH¢2,000,000.00 released by government for the
completion of the Council’s office complex.
188. Current assets also decreased by 17.3% from GH¢2,801,167.53
in 2010 to GH¢2,317,400.93 in 2011. The decrease was largely due to
decline in Bank balance.
189. Total Net Assets of the Council appreciated by 46.2% from
GH¢3,218,465.78 to GH¢4,706,712.52 in 2011.
190. The current ratio for the year was 67.2:1 as against 368.9:1 in
2010. Though the ratio had fallen drastically, it continued to depict
the Council’s ability to meet its short term obligations as and when
they fall due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 45 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Delay in construction of office complex
191. The construction of an office block for N&MC was awarded on
contract to M/S Cymain (Ghana) Limited in September 2004 for an
initial contract sum of GH¢1,319,137.09 and was expected to be
completed by August 2005. We noted that work came to a standstill in
2006 at 40% stage of completion which was attributed to lack of
funds. Four interim payment certificates amounting to
GH¢531,637.18 had so far been paid to the contractor.
192. The project was revived in July 2011, six years after the
expected completion date and the contract sum reviewed to
GH¢1,850,000.00. Though management requested for and Central
Government released an amount of GH¢2,000,000.00 in July 2011 for
the completion of the Project, we noted that management had rather
invested the funds in 91 days Treasury Bills. Our physical inspection
revealed that materials already installed were deteriorating due to
exposure to the weather.
193. Management intimated that the stoppage of the project was due
to the Contractor’s inability to perform even though resources were
available.
194. From the foregoing, we recommended that management should
abrogate the contract, repackage the remaining works for tendering
and award to a competent contractor to complete the project on time
in order to safeguard investment made and avoid increased cost on the
project.
195. Management responded it was frustrated with the undue delays
and inconvenience caused by the lack of progress exhibited by the
contractor and consultants on the project and are making strenuous
effort to find a speedy solution to the impasse.
Failure to supply vehicle
196. We noted that the Council entered into an agreement with
Western Automobile Center Limited in July 2009 for the supply of
46 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
one Nissan Urvan bus at a cost of GH¢34,692.00 and made a total
payment of GH¢31,222.80 representing 90% of the total cost in
August 2009. The Company however failed to deliver the bus to the
Council as at the time of reporting.
197. Our review of the contract agreement revealed that the mode of
payment and delivery was not specified in the agreement; hence the
company was not bound to immediately deliver the bus even after
receiving 90% of the cost.
198. The Council risks losing this amount as several efforts made
since 2009 for the supply of the vehicle has proved futile.
199. We recommended that strenuous effort including taking legal
action should be made to compel the Company to deliver the bus or
refund the money immediately to the Council.
200. Management responded that the agreement for the procurement
of the bus was entered into by Ministry of Health and as such,
management had through Ministry of Health enforced all the
necessary legal rights under the contract to address the matter.
Management further stated that it shall not relent in pursuing delivery
of the vehicle or a refund of monies already paid.
Unpresented payment vouchers
201. Notwithstanding Regulation 1(a) of FAR 2004 (L.I. 1802)
which requires public officers responsible for the custody, care and
use of public stores to keep proper records of all transactions and
produce records of the transactions for inspection when called upon to
do so by the Minister, the Auditor-General or any officers authorised
by them, 17 payment vouchers totalling GH¢199,079.90 were not
presented for our examination.
202. This irregularity was attributed to the failure of the accounts
office to properly file and maintain essential records.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 47 Other Statutory Institutions for the period ended 31 December
203. Non submission of the payment vouchers for audit examination
denies assurance that the disbursements made were legitimate and in
the interest of the Council. The situation could also encourage
fictitious payments.
204. We recommended that management should trace and produce
the payment vouchers for examination, failure of which the head of
accounts and paying officer should be surcharged with the amount
involved.
205. Management stated that the situation occurred due to various
audit inspection exercise encountered in 2012 and promised to make
every effort to make the PV’s available for audit scrutiny.
Failure to remit income tax and SSF contribution – GH¢9,196.96
206. Section 87(1) of the Internal Revenue Act, 2002 requires a
withholding agent to pay to the Commissioner a tax that has been
withheld within 15 days after the end of the month in which the
payment, subject to withholding tax is made. Also, the National
Pension Act 2008 (Act 766) provides that, every employer shall remit
all the 18.5% total contribution on behalf of each worker to Social
Security & National Insurance Trust Fund (SSNIT) within the 14 days
of the contribution period.
207. The Council failed to remit PAYE and SSF contribution
deducted from 14 contract employee’s remuneration totalling
GH¢2,557.33 and GH¢6,639.63 to the Domestic Tax Revenue
Division (DTRD) of Ghana Revenue Authority (GRA) and Social
Security and National Insurance Trust Fund (SSNIT) respectively in
contravention of the above stated laws. Our further review disclosed
that the Council had accumulated the statutory deductions to the tune
of GH¢17,677.15 over the years and failed to remit them contrary to
the law.
208. Failure to adhere to these laws deprived the state of the use of
the accrued tax revenue on its development projects. The practice also
denied employees the privilege and the right of saving and receiving
48 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
additional earnings from employer’s contribution into their pension
fund.
209. We recommended that the employees SSF contribution
together with the employer’s part which adds up to 18.5 % of
employees’ earnings, should be paid to SSNIT immediately. We also
recommended that the income tax deducted from the employees’
earnings over the years should be remitted to the DTRD without delay
to avoid the payment of penalties.
210. Management responded that an account was not available to
enable it pay the SSNIT contribution and that an account has now
been set up and payment will be made. Management further stated
that the nonpayment of the PAYE was an oversight and promised to
make payment to the DTRD of GRA immediately.
NATIONAL HEALTH INSURANCE AUTHORITY (NHIA)
Introduction
211. This report relates to the audited accounts of National Health
Insurance Authority (NHIA) for the period 1 January 2008 to 31
December 2009.
Operational results
212. The operations for the year closed with a deficit of
GH¢16,839,909 as compared to a surplus of GH¢96,990,959 in 2008.
Presented in Table 3 are the performance indicators for the period
under review.
Table 3: Performance indicators for 2009 and 2008 Income 2009
GH¢ 2008 GH¢
% Change
Levies Income 329,459,129 277,713,403 18.6
Investment Income 75,962,096 42,795,270 77.5
Grant - 16,846,000 (100.0)
IDA Funding 142,433 1,866,450 (92.4)
Other Income 1,001,042 47,442 2,010.0
Total Income 406,564,700 339,286,565 19.8
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 49 Other Statutory Institutions for the period ended 31 December
Expenditure
Direct support to scheme
operations
370,889,990 197,205,348 88.1
Support to Partner Institutions 41,179,224 39,272,681 4.5
Expenditure on IDA Project 1,312,151 147,349 790.5
Gen. and Adm. Expenses 10,023,244 5,670,228 76.8
Total Expenditure 423,404,609 242,295,606 74.7
(Deficit) / Surplus (16,839,909) 96,990,959 (117.4)
213. Total Income went up by 19.8% or GH¢67,272,135 to register
GH¢406,564,700 in 2009 as compared with the 2008 figure of
GH¢339,286,565. Levies and Investment Incomes were the major
contributors to the Authority’s Income for the periods under review
contributing 18.6% and 77.5% respectively.
214. Total Expenditure also went up by 74.7% from
GH¢242,295,606 in 2008 to GH¢423,404,609 in 2009. The increase
in Total Expenditure was mainly due to an 88.1% rise in Direct
Support to the Scheme’s operations, contributing 95% of Total
Expenditure.
Financial position
215. The financial position of the Authority as at 31 December 2009
is presented in Table 4.
Table 4: Balance sheet as at 31 December 2009
Item 2009
GH¢
2008
GH¢
%
Change
Non-Current Assets 43,457,343 25,962,441 67.4
Current Assets 545,115,348 460,923,386 18.3
Current Liabilities 141,405,981 22,879,206 518.1
Net-Current Assets 403,709,367 438,044,180 (7.8)
Net Assets 447,166,712 464,006,621 (3.6)
Current Ratio 3.9:1 20.1:1
216. Non-Current Assets made up of Property, Plant and
Equipment went up by 67.4% from GH¢25,962,441 in 2008 to
50 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
GH¢43,457,343 in 2009. This was due to additions to all items of
non- current assets nature within the year.
217. Current Assets which stood at GH¢ 460,923,386 in 2008 went
up to GH¢545,115,348 in 2009, an increase of 18.3%. This was due to
a 4.7% increase in Investments and a Promissory Note from Ghana
Government.
218. Current Liabilities increased by 518.1% from GH¢22,879,206
in 2008 to GH¢141,405,981 in 2009. This was made up of Accounts
Payable only.
219. The Authority’s Liquidity ratio at the year end was 3.9:1 (2008:
20.1:1).Although the ratio decreased, the Authority is in a good
position to meet its short term obligations as and when they fall due.
MANAGEMENT ISSUES
Significant deficit between growth in expenditure and income
220. We noted that the year on year growth rate in expenditure of
the Authority was significantly higher than the rate of growth in
income. Details are show in the following Table:
Year Income
GH¢
Expenses
GH¢
Difference
GH¢
2006 165,354,900 85,735,508 79,619,392
2007 249,256,891 126,416,301 122,840,590
2008 330,772,959 216,110,024 114,662,935
2009 406,103,662 427,072,360 (20,968,698)
Cumulative 1,151,488,411 855,334,193 296,154,219
221. There is the risk that the National Health Insurance Scheme
may not be able to fund its recurring costs from operational revenue in
the future if this trend is not reversed immediately. This poses a going
concern risk on the sustainability of the Scheme that is being managed
by the Authority.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 51 Other Statutory Institutions for the period ended 31 December
222. We recommended that:
a) Management should intensify the cost curtailment and cost
containment measures so as to reduce the operational costs
of running the scheme;
b) Alternative and additional funding sources should be
explored to increase the revenue base of the Authority;
c) Management should take another look at the structural and
operational system of the NHIA and the various District and
Mutual Health Insurance to identify areas where there are
inefficiencies and potential leakages that might be
contributing to the escalation of expenses.
Late remittance by Controller and Accountant General’s
Department to NHIA
223. We noted that levies collected by the Value Added Tax (VAT)
Service and the Social Security and National Insurance Trust (SSNIT)
on behalf of the National Health Insurance Authority Scheme were
not ceded to the Authority on time.
224. The CAGD owed a total amount of GH¢113,065,642 and
GH¢185,543,194.77 for 2008 and 2009 respectively. This implied that
the Authority was denied access to these amounts needed for the
running of its operations and the execution of its mandate under the
NHIA Act.
225. This situation could have adverse impact on the smooth
running of the Authority’s operations if not checked.
226. We recommended that management should consistently
monitor the remittances from the Revenue Agencies as well as the
CAGD to ensure that revenue accruing to the Health Insurance Fund
are remitted to the NHIA as and when they are due in accordance with
the provisions of Act 650.
52 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Taxes not withheld - GH¢7,325
227. Section 84(2) of the Internal Revenue Act, 2000 (Act 592)
requires that payment for goods and services that exceed the threshold
of GH¢50 be subject to 5% withholding tax.
228. Section 88(1) of Act 592 also states that “A withholding agent
who fails to withhold tax in accordance with this subdivision is
personally liable to pay to the Commissioner the amount of tax which
has not been withheld, but the withholding agent is entitled to recover
this amount from the payee.
229. Our audit, however, revealed that management failed to
withhold 5% tax on payments made for works and services totalling
GH¢146,503, resulting in a loss in tax revenue of GH¢7,325 accruing
to the state.
230. We recommended that management should comply with the
withholding tax provisions of the Internal Revenue Act so as to avoid
any tax penalties on the Authority.
Payment voucher and supporting document not available –
GH¢50,000
231. Regulation 1 of the Financial Administration Regulations
(FAR) 2004 L.I. 1802 requires any public officer responsible for the
financial business on behalf of the government of Ghana to keep
records of all transactions and to produce records of all transactions
for inspection when called upon to do so by the Minister, the Auditor-
General, the Controller and Accountant-General or any officer
authorized by them.
232. During our review we observed that payments to Duakwah
Salvation vide PV number P/04/06/08 and supporting documents for
an amount of GH¢50,000 to Swedru Government Hospital was not
presented for audit.
233. The occurrence, completeness, and accuracy of the
GH¢50,000 claim payment could not be ascertained.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 53 Other Statutory Institutions for the period ended 31 December
234. We recommended that all supporting documents for payments
are properly filed in a manner that would be easily retrieved for other
reviews. We recommended further that the affected PV and
supporting document should immediately be presented for audit,
otherwise the responsible officials should be held accountable for the
above stated amount.
Receipts for claims with different service providers name-
GH¢131,409
235. During our audit we noted that some receipts obtained in 2008
and 2009 from Samatra Hospital, a service provider for claims
payment to them had a different name as Samatra Hospital staff
welfare Association instead of Samatra Hospital.
Details of these receipts are listed below:
Date Details Cheque
No.
Amount
GH¢
24/7/09 Samatra Hospital Welfare Ass. 001291 50,000
12/2/09 Samatra Hospital Welfare Ass. 1957 12,000
26/11/08 Samatra Hospital Welfare Ass. 33512 27,409
4/13/09 Samatra Hospital Welfare Ass. 9839 30,000
18/5/01 Samatra Hospital Welfare Ass. 3597 12,000
Total 131,409
236. According to the scheme manager the old scheme manager and
accountant connived with the accountant at the Samantra Hospital to
have moneys meant for claims paid into the hospital’s welfare
account.
237. This has resulted in misappropriation of GH¢131,409 by the
Scheme Accountant.
238. We recommended that internal control around cash and bank
balances be strengthened. Also, management is advised to take the
appropriate legal actions against the officials involved in this act to
retrieve the misappropriated funds.
54 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Disbursement not approved by the District coordinator or the
Board – Denu
239. We noted during our audit that disbursements including the
following were made to various facilities without the approval by the
Board or District Coordinator:
Date Description Amount (GH¢)
21/12/09 Being payment of 45% August 2009
Claim to KDH 38,347.78
21/12/09 - 18,070.11
Total 56,417.89
240. The lack of authorization and approvals might lead to
misappropriation of funds.
241. We recommended that management should ensure that
appropriate levels of authorization and approval are sought before
payments are effected.
Differences between amounts reported by the Denu Scheme as
transfers from Head Office and amounts provided by Head Office
as transfers to the Schemes – GH¢1,166,183
242. We noted differences between revenue of the scheme
(representing transfers received from Head Office) and the amount
reported by the Head Office as transfers to the Scheme. These
differences are as follows:
Revenue per financial Revenue per NHIA
Statement of the Scheme records on transfer to Scheme Difference
GH¢ GH¢ GH¢
3,684,615 2,518,432 1,166,183
243. The bank statements of the Scheme were also not available for
our review to ascertain the accuracy, completeness, and measurements
of the revenue of neither the scheme nor the transfers provided by the
Head Office. We were made to understand that the person in charge
is on interdiction and the information is not kept on file.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 55 Other Statutory Institutions for the period ended 31 December
244. The inaccuracies reported may create an avenue for
misappropriation of funds.
245. We recommended that these differences should be investigated
and the required remedial action taken.
Non-compliance with loan agreement
246. We noted that a loan taken by the Scheme Manager of the
Dormaa Municipal Mutual Health Insurance Scheme (Martin
Amponsah) in June 2008 was not being paid as agreed. The amount
paid out of the GH¢10,000 taken in July 2008 was GH¢2,520 leaving
a balance of GH¢7,480 as at December 2008.
247. This indicates that funds meant for the Scheme’s activities are
locked up leaving core duties of the Scheme undone.
248. We recommended that management should ensure that the
agreed deductions are made and paid back to the Scheme coffers as
soon as possible.
Receipts not sighted – GH¢70,295 (Gambaga Mutual Health
Insurance Scheme)
249. During our review, we did not sight receipts of payments made
to some service providers. Details of these transactions are shown
below:
Date P.V. No. Amount (GH¢)
10/03/2008 Nov. 37 776
21/10/2008 Oct. 156 2,359
22/01/2008 Jan. 09 7,472
11/12/2008 Dec. 199 8,838
11/12/2008 Dec. 198 10,470
11/12/2008 Dec. 200 13,371
4/11/2008 Nov. 161 27,009
Total 70,295
250. There is every indication that payments made can be disputed
since there is no evidence of collection of money and might result in
56 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
double payment. Audit trail is also lost when there is no third party
confirmation of transactions undertaken.
251. For authenticity of payments, we recommended that
management should ensure that receipts are obtained after every
payment. All supporting documents should also be attached to
payment vouchers raised.
Unavailability of funds transferred from Authority to the
Nanumba North Mutual Health Scheme – GH¢158,525.50
252. We noted during our audit that an amount of GH¢158,525.50
purported to have been transferred by the NHIA to the Nanumba
North Mutual Health Scheme could not be traced to the bank
statement of the Scheme.
253. The lapse was due to lack of supervision and regular reviews
by the Internal Audit Unit, which could result in loss of much needed
funds to promote the objective of the Authority.
254. We recommended that head office liaises with the Scheme to
have this difference investigated and reconciled. Also, the officer in
charge of the transfer of the funds must be held liable for the loss of
the funds.
Withdrawal from claims account for supposed investment not
accounted for GH¢900,000
255. We noted during our audit that an amount totalling
GH¢900,000 was withdrawn from the claims account of the
Oguaaman Mutual Health Insurance Scheme and deposited into a
purported investment account. However, no evidence of the
investment of this amount was available for our review. We also did
not sight evidence of the amount being paid to the Scheme. Details of
the transfer are shown as follows:
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 57 Other Statutory Institutions for the period ended 31 December
Date of transfer Amount GH¢
4/03/2009 400,000
12/05/2009 200,000
18/06/2009 300,000
Total 900,000
256. The transfer of these amounts from the claims accounts to an
investment may result in funds being locked up in investment when
these funds are needed to pay claims to service providers.
257. Additionally, the non-availability of evidence regarding the
existence of this supposed investment raises concerns over the use of
the Scheme’s funds.
258. We recommended that management should ensure that these
transfers are followed up to wherever they have been invested. All
investment and interest accrued must be retrieved and paid into the
Scheme’s account. We also recommended that the responsible
officials should be held liable in the event of any losses.
Transfer of funds from NHIA to Scheme not accounted for:
GH¢617,393.40
259. We noted during our audit of the Wa Municipal Mutual Health
Insurance Scheme that an amount of GH¢617,393.40 purported to
have been transferred from the NHIA could not be traced in the
Scheme’s cash book and bank statements. The details are as follows:
Date Details Amount GH¢
22/01/09 2nd Re-Insurance 306,049.95
30/07/09 9th Re-Insurance 311,343.45
Total 617,393.40
260. The completeness and accuracy of subsidy expense disclosed
on the financial statements of the NHIA is in doubt. It may also result
in misappropriation of funds.
261. We recommended that regular reconciliation should be done
between the Authority and the Schemes to rectify such differences and
the officer in charge of the transfers must be held liable for any losses.
58 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Payments not accounted for - GH¢3,598,749.60
262. We noted that the Authority had made a total payment of
GH¢3,598,749.60 on behalf of some mutual health scheme providers
for some claims over the period under review. However, these
amounts were not accounted for by the Schemes. Details of these
schemes are as follows:
Scheme Name Amount
GH¢
Ablekuma Health Insurance Project 926,867.00
Amansie East Mutual Health Insurance Scheme 61,825.53
Asokwa Sub-Metro Mutual Health Insurance
Scheme
486,110.20
Assinman Mutual Health Insurance Scheme 735,527.33
Birim South Mutual Health Insurance Scheme 357,266.05
Ga Mutual Health Insurance Scheme 537,289.49
Kpeshi Mutual Health Insurance Scheme 493,864.00
Total 3,598,749.60
263. The system could be abused as it is exposed to the risk of
double payment if the provider who had received direct payment from
the NHIA fraudulently makes claims from the scheme against the
same invoices and service providers.
264. We recommended that the NHIA should always advice the
Schemes of any payments made to any service provider on behalf of
the schemes.
265. The procedure for direct payment of claims to service providers
should be streamlined such that the process is initiated from the
schemes.
266. We also proposed that the transactions should be recognized as
an income and an expense in the books of each scheme concerned.
This would ensure the completeness and accuracy of records
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 59 Other Statutory Institutions for the period ended 31 December
maintained by each scheme in respect of their finances. Meanwhile
the above stated amount should be accounted for.
Differences between transfers recorded by Bantama Mutual
Health Insurance Scheme and the NHIA – GH¢2,482,130
267. We noted during our review that, the amount reported by the
NHIA as transferred to the scheme did not agree with the receipts
verified at the scheme as detailed below:
Date Description Transfers
Per
NHIA
Records
GH¢
Transfer
Per
Scheme
Records
GH¢
Difference
GH¢
14/04/08 - - 583,419 583,419
18/07/08 3rd Quarter
Subsidy
- 388,946 388,946
16/08/08 Indebtedness - 1,233,935 1,233,935
17/12/08 Reinsurance 2,206,301 2,482,131 275,830
Total 2,206,301 4,688,431 2,482,130
268. The implication is that the completeness of transfers to the
Bantama MHIS as well as the amount of subsidy expenses recorded
on the financial statements by the NHIA could not be validated.
269. We recommended that the NHIA and the management of the
Bantama MHIS liaise to investigate these differences and the
necessary remedial action taken. Any losses should be accounted for
by the responsible officials.
Claims not vetted – GH¢246,418.11
270. We noted during our audit that claims paid to some service
providers amounting to GH¢246,418.11 were made prior to vetting of
the claims. Details of these payments are as follows:
60 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Scheme Name Amount GH¢
Gambaga Mutual Health Insurance Scheme 25,677.16
Ga Mutual Health Insurance Scheme 65,642.61
New Juabeng Mutual Health Insurance Scheme 155,098.34
Total 246,418.11
271. There is the risk of overpayment to the service providers
especially when after vetting, the total deductions/rejections are more
than the balance on the outstanding payments.
272. We recommended that measures be put in place to ensure
claims are fully vetted before funds are paid out so as to promptly
identify and correct any anomaly. The NHIA should also put in place
measures to ensure there are no undue delays in the payment of claims
that would necessitate the payment of claims in advance pending the
vetting process.
GHANA AIDS COMMISSION
Introduction
273. This report covers the audited financial statements of the
various Projects under Ghana Aids Commission for the year ended 31
December 2011.
Ghana Education Service/School Health Education Programme
(GES/SHEP)
Operational Results
274. Total Income for the year under review was GH¢125,553
comprising transfers from Ghana Aids Commission (GAC) on
4/4/2011 and 21/12/2011 of GH¢46,500 and GH¢79,053 respectively.
Performance indicators are shown in Table 5.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 61 Other Statutory Institutions for the period ended 31 December
Table 5: Income Statement for 2011.
Income
2011
GH¢
Transfer from GAC 125,553
Expenditure
Planning & Administration 5,039
Monitoring & Evaluation 103,586
Total Expenditure 108,625
Surplus 16,928
275. Total Expenditure was GH¢108,625 in 2011. Significant
among the expenditure are review meetings and transport and travels,
constituting about 70% and 21% respectively of the total expenditure.
276. The Surplus at the close of year 2011 was GH¢16,928 and this
amount had since been transferred to the Accumulated Fund account.
277. The Accumulated Fund of the Programme for the year stood at
GH¢63,564, comprising opening balance of GH¢46,636 and Excess of
Income over Expenditure of GH¢16,928.
Family Health International (FHI), Accra
278. Total Income released in 2011 was GH¢616,529 comprising
transfers from Ghana Aids Commission (GAC) on 22 August 2011
and 22 September 2011 of GH¢150,000 and GH¢466,529
respectively. Table 6 provides a summary of the Project’s
performance indicators.
62 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 6: Income Statement for 2011
Income
2011
GH¢
Transfer from GAC 616,529
Expenditure
Human Resources 148,023
Sub-Sub Recipients 242,046
Promote low risk behavior 174,063
Outreach CT Services 10,863
Orientation of Out-of-School Peer Education 132,465
Planning and Administration 60,105
Monitoring and Evaluation 42,605
Office Surplus 16,549
Direct Cost 25,893
Indirect Costs (Overheads) 196,989
Total Expenditure 1,049,601
Excess of Expenditure Over Income (433,072)
279. Total Expenditure for the year 2011 stood at GH¢1,049,601.
Significant among the expenditure included Human Resources and
sub-sub Recipients which contributed about 14% and 23%
respectively of the total expenditure. Promote low risk
behavior/Reduce stigma & discrimination and indirect cost
(overheads) also contributed about 17% and 19% of the total
expenditure. This indirect cost (overheads) represents charges for
Family Health International (FHI) Global Overhead cost for
implementing donor funded programs.
280. The Project closed the year with a deficit of GH¢433,072
which had been transferred to the Accumulated Fund Account.
German International Cooperation (GIZ), Accra
281. Total Income released for the year under review was
GH¢539,897. This was made up of transfers from Ghana Aids
Commission (GFR 8 Account) on 19 July 2011 and 22 September
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 63 Other Statutory Institutions for the period ended 31 December
2011 of GH¢169,652 and GH¢370,245 respectively. A summary of
the operational results for the year under review is provided in Table
7.
Table 7: Income Statement for 2011
Income
2011
GH¢
Transfers from GAC (GFR & Account) 539,897
Expenditure
Human Resources 46,400
Training 17,201
Monitoring and Evaluation 35,970
Procurement & Supply Management Costs 977
Counselling and Testing 149,169
Overheads & General Administration 138,308
BCC-Communication Outreach and
MARPS
105,834
Publication of Work Place Policy 12,821
Total Expenditure 506,680
Excess of income over Expenditure 33,217
282. Total Expenditure for the year 2011 was GH¢506,680. Notable
among the expenditure for the year were counseling and testing which
constituted about 29% of the total expenditure. Resource Persons
Allowance of GH¢82,654 or 55% contributed to the high figure of
counseling and testing. Overheads (management) Expenses (about
13% of Programme funds channeled through GIZ Headquarters in
Benin) of GH¢92,591 swelled Overheads and General Administration
to GH¢138,308.
283. The German International Cooperation (GIZ) registered a
surplus of GH¢33,217 which has since been transferred to
Accumulated Fund Account.
64 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MANAGEMENT ISSUES
Failure to withhold taxes of GH¢1,072.00
284. Contrary to Section 84(2) of Act 592, we noted that
management of the Project failed to withhold taxes totalling
GH¢1,072 from payments made to suppliers of goods and services.
285. The Table below shows instances of payments made to Ecube
Limited without deducting withholding tax.
P.V.
No.
Details Amount
GH¢
5%
WHT
GH¢
11/06 Printing of Poster 3,500 125
11/07 Printing of Poster 4,720 236
11/09 Printing of Fliers 8,500 425
11/10 Poster Framing 4,720 236
21,440 1,072
286. Consequently, a tax revenue of GH¢1,072 accruing to the
state was lost.
287. To improve inflows into the Consolidated Fund, we
recommended that management should comply with the relevant
provisions of the tax law; otherwise responsible officers would be
surcharged accordingly for any future losses.
International Labour Organisation (ILO), Accra
288. Total Income for the year under review was GH¢359,493
comprising transfers from Ghana Aids Commission (GAC) (GFR 8
Account) on 28 February 2011 and 12 July 2011 of GH¢205,163 and
GH¢154,330 respectively. Presented in Table 8 are the details of the
performance indicators.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 65 Other Statutory Institutions for the period ended 31 December
Table 8: Performance Indicators for 2011
Income
2011
GH¢
Transfers from GAC (GFR 8 Account) 359,493
Expenditure
Human Resources 70,775
Planning and Administration 57,947
Training 160,402
Communication 121,048
Monitoring & Evaluation 55,952
Operations & Maintenance 33,274
Total Expenditure 499,398
Excess of Expenditure over Income (139,905)
289. Total Expenditure for the year 2011 stood at GH¢499,398.
Significant among the expenditure included Training and
Communication which constituted about 32% and 24% of the total
expenditure respectively. HIV/AIDs Peer Educators training of
GH¢124,892 or 78% contributed to the high figure of Training
Expenses.
290. The ILO recorded a deficit of GH¢139,905 at the end of the
year which had since been transferred to the Accumulated Fund
Account.
Ghana-West African Program to Combat
AIDS & STI (WAPCAS), Accra
291. Total Income released for the year under review was
GH¢1,006,868. This was made up of transfers from Ghana Aids
Commission (GFR8 Account) on 11 February 2011, 20 July 2011 and
23 September 2011 of GH¢17,400; GH¢199,126 and GH¢790,342
respectively. The operational result for the period under review is
shown in Table 9.
66 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 9: Income Statement for 2011
Income
2011
GH¢
Transfer from GAC (GFR8 Account) 1,006,868
Expenditure
Human Resources 232,623
Training 125,444
Infrastructure Equipment 8,764
Communication 516,032
Monitoring and Evaluation 124,474
Planning and Administration 8,263
Overheads 41,972
Total Expenditure 1,057,572
Excess of Expenditure over Income (50,704)
292. Total Expenditure for the year 2011 was GH¢1,057,572.
Notable among the expenditure for the year under review were
Human Resources and Communication, which constituted about 22%
and 49% respectively of the total expenditure. Expenses on Peer
Education (Female Sex Workers) of GH¢310,380 or 60% Swelled
Outreach/Communication expenses to GH¢516,032.
293. The excess of expenditure over income resulted in an
operational deficit of GH¢50,704 which had since been transferred to
the Accumulated Fund Account.
Ghana Employers Association (GEA), Accra
294. The GEA realized a total income of GH¢239,257 during the
year under review, which comprised of transfers from GAC Global
Fund Account on 18 March 2011 and 20 July 2011 of GH¢89,042 and
GH¢150,215 respectively. Presented in Table 10 is the sumarised
income and expenditure account.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 67 Other Statutory Institutions for the period ended 31 December
Table 10: Income Statement for 2011
Income
2011
GH¢
Transfer from GAC Global Fund Account 239,257
Expenditure
Human Resources 88,884
Planning & Administration 14,390
Training 21,698
Communication 69,055
Monitoring & Evaluation 33,807
Technical Assistance 23,937
Overheads 844
Total Expenditure 252,615
Excess of Expenditure over Income (13,358)
295. Total Expenditure for 2011 stood at GH¢252,615. Significant
among the expenditure for the year under review were Human
Resources and Communication which constituted about 35% and 27%
respectively of the total expenditure.
296. At the end of the financial year the GEA recorded a deficit of
GH¢13,358 which had been transferred to the Accumulated Fund
Account.
Unreceipted payments – GH¢2,809.00
297. Our examination of records revealed that two payment
vouchers totalling GH¢2,809.00 were not signed by the recipients to
acknowledge the receipt of the money. Details of the transactions are
shown below.
P.V. No.
Recipient
Amount
GH¢
09/012 Angela Eshan 1,504.50
09/013 Christopher 1,304.50
2,809.00
68 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
298. We attributed the irregularity to the failure of the paying officer
to ensure that every relevant document related to the payment is
signed to signify the propriety of the transaction. This could lead to
moneys not paid to intended persons.
299. We therefore advised management to ensure that these and all
subsequent payments are receipted by beneficiaries otherwise, the
paying officer should be held liable for a refund.
Ghana Business Coalition against HIV & AIDS (GBCA) Accra
300. Total Income for the year under review was GH¢232,856
comprising transfers from Ghana Aids Commission (GFR& Account)
on 4/3/11 and 18/8/11 of GH¢116,428 and GH¢116,428 respectively.
Presented in Table 11 are the details of the performance indicators.
Table 11: Performance Indicators for 2011
Income
2011
GH¢
Transfer from GAC (GFR8 Account) 232,856
Expenditure
Human Resource 144,934
Planning & Administration 43,642
Training & Education 27,420
Monitoring & Evaluation 11,253
Overheads 542
Total Expenditure 227,791
Excess of Income over Expenditure 5,065
301. Total Expenditure for the year under review stood at
GH¢227,791. Notable among the expenditure was Human Resource
which constituted about 64% of the total expenditure. Staff salaries
and wages of GH¢142,833 or 98% accounted for the high figure of the
human resource expenses.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 69 Other Statutory Institutions for the period ended 31 December
302. The GBCA registered a surplus of GH¢5,065 at the end of the
financial year and has since been transferred to the Accumulated Fund
Account.
MINISTRY OF CHIEFTAINCY AND CULTURE
KWAME NKRUMAH MEMORIAL PARK
Introduction
303. This report relates to the audited accounts of the Kwame
Nkrumah Memorial Park for the period 1 January 2010 to 31
December 2011.
Operational results
304. In 2011, total income registered an increase of 11.1% from
GH¢228,470.34 to GH¢253,780.27. An increase of 12.9% in
Internally Generated Funds accounted for this. Table 12 presents the
performance indicators.
Table 12: Comparative income and expenditure statement for
2011 and 2010
Income
2011
GH¢
2010
GH¢
%
Change
Subvention 10,150.17 12,767.94 (20.5)
IGF 243,630.10 215,702.40 12.9
Total 253,780.27 228,470.34 11.1
Expenditure
Allowances 60,866.48 78,273.73 (22.2)
Administration 151,342.92 115,004.00 31.6
Services 7,065.00 8,815.00 (19.6)
Investment 32,697.00 23,334.70 40.1
Total 251,971.40 225,427.46 11.8
Surplus 1,808.87 3,042.88 (40.6)
305. Expenditure incurred in 2011 totaled GH¢251,971.40 as
against GH¢225,427.46 in 2010 registering an increase of 11.8%.
Increases in Administration expenses and Investment of 31.6% and
40.1% respectively accounted for the overall expenditure increase of
70 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
11.8%. The increase in Administration cost was largely due to the rise
in Contract Cleaning and Maintenance of Plant/Machinery/Equipment
and the increased cost in Rehabilitation of Sculpture accounted for the
rise in Investment.
306. The Park recorded an operational surplus of GH¢1,808.87 in
the current year as against GH¢3,042.88 in 2010; a reduction of
40.6% over the previous year’s surplus.
Financial position
307. The details of the financial position of the Park are shown in
Table 13.
Table 13: Financial position as at 31 December 2011
2011
GH¢
2010
GH¢
% Change
Cash at bank 6,830.77 4,321.90 58.0
Advance – Staff 667.51 1,367.51 (51.2)
Total 7,498.28 5,689.41 31.8
Current liabilities - -
Accumulated
Fund
7,498.28 5,689.41
308. Non-current assets were not declared in the financial
statements of the Park. Fixed assets, according to management were
yet to be valued and included in the financial statements. Current
assets which were mainly bank balance and staff advances increased
from GH¢5,689.41 in 2010 to GH¢7,498.28 in 2011, a rise of 31.8%
as a result of an increase of 58.0% in the bank balance.
309. During the period, there were no recorded current liabilities.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 71 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Loss of tax as a result of cash payments - GH¢9,799.08
310. Regulation 48(2) of L.I. 1802 stipulates, “a head of department
shall ensure, as far as it is consistent with the convenience of the
public and the control of transactions, that collections or payments are
made by cheque, bank transfer or direct payment to bank accounts”.
311. Management contravened the above stated regulation by
making cash payments ranging between GH¢1,050.00 and
GH¢3,519.58, totalling GH¢195,981.58 during the period reviewed.
The Acting Director’s failure to ensure that cheques he signed were in
the names of payees stated on the payment vouchers gave cause to this
practice.
312. The holding of high cash balances could lead to
misappropriation of funds and burglary in this spate of armed robbery.
It also resulted in the loss of GH¢9,799.08 in withholding tax revenue.
313. We recommended and management agreed to stop making cash
payments for financial obligations of the Park, failing which culpable
officers would be surcharged with any future loss of tax revenue.
Unconfirmed lodgement of revenue - US$455.00
314. Regulation 12 of the FAR, 2004 (L.I. 1802) states, “A person
entrusted with custodial duties for public and trust moneys shall
protect the public and trust moneys against unlawful diversion from
their proper purposes and against accidental loss, and locate such
moneys so as to facilitate the efficient and economical discharge of
public financial business.”
315. Our audit of non-tax revenue revealed that US$455.00 was
collected as part of gate fees between May and July 2010 and
allegedly lodged into the dollar account of the Park at Bank of Ghana
(BoG). Though this amount was reported as revenue in the 2010
financial statement, we could not verify its existence because there
were no bank statements from BoG for confirmation.
72 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
316. The Accountant explained that since July 2010, the account
had been inactive so BoG might have transferred it to a dormant
account without the knowledge of management of the Park.
317. We were of the opinion that management failed to protect the
public funds and prevent unlawful diversion as otherwise required by
the FAR cited. Management’s inaction could defeat the purpose for
which the revenue was generated.
318. We recommended to management to communicate with BoG
and ensure a reversal of the account so that the money could be
applied for the proper purpose for which it was generated.
319. Management in its response indicated that it will convene a
meeting with officials of BoG for the account to be reactivated and the
amount withdrawn into the Park’s cedi account.
Imprest not accounted for - GH¢5,700
320. Regulation 283(b) of L.I. 1804 states that “Special imprest
issued for making a particular payment or group of payments must
fully be retired by the date specified in the approval to operate the
imprest.”
321. We observed on the contrary that special imprest amounting to
GH¢5,700.00 advanced between November 2010 and September 2011
to the Director and five other staff for NAFAC 2010 and 2011
Founder’s day celebration respectively have not been retired as at the
time of reporting.
322. The Accountant’s failure to ensure that the advances were
accounted for immediately the programmes were executed as required
by the FAR stated above resulted in this anomaly which could lead to
the misuse of unspent imprest.
323. We advised management to ensure the retirement of these
imprest or the full amounts recovered from the recipients in
accordance with FAR 288(1).
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 73 Other Statutory Institutions for the period ended 31 December
324. Management stated that it would take necessary steps to have
the imprest retired and also prevent a recurrence of the lapse.
Non adherence to procurement law - GH¢146,499.66
325. Section 43(1) of the PPA states “The procurement entity shall
request quotations from as many suppliers or contractors as
practicable, but from at least three different sources”.
326. We noted during the examination of payment vouchers that
management made purchases to the tune of GH¢146,499.66 without
obtaining at least three quotations from suppliers in violation of the
provision of the PPA aforementioned.
327. As a result, we could not determine the reasonableness of the
prices at which the items were bought. Consequently, economy,
transparency and assurance of value for money in the procurement
process could be compromised.
328. We advised that in future, management should either seek prior
approval from the Public Procurement Board before engaging in
single source procurement as mandated by Section 40 of Act 663 or
obtain at least three different quotations for the selection of the most
responsive quote.
329. Management in response stated that it had ceased from single
source procurements and promised to adhere strictly to relevant
provisions of the PPA.
Purchases from non-VAT registered suppliers - GH¢21,974.65
330. Contrary to Section 30(2) of the FAA 2003 which entreats all
MDAs and MMDAs to transact business with only VAT registered
suppliers, we noted that management transacted business worth
GH¢146,497.66 with non VAT registered suppliers.
331. Management’s failure to adhere to the provision of the FAA
denied government of GH¢21,974.65 in VAT revenue.
74 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
332. We urged management to desist from transacting business with
non VAT registered suppliers in adherence to the law otherwise
responsible official would be held liable for any future losses.
333. Management agreed to comply with the dictates of the FAA in
subsequent transactions.
NATIONAL THEATRE OF GHANA
Introduction
334. This report is in relation to the audited accounts of the
National Theatre of Ghana for the two year period 1 January 2010 to
31 December 2011.
Operational results
335. Operations for the year under review turned a deficit of
GH¢307,460.31 in 2010 into a surplus of GH¢67,546.14 in 2011.
Details of the performance indicators are shown in Table 14:
Table 14: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Government Subvention 886,715.61 496,149.43 78.7
Internally Generated Fund 636,072.93 501,388.77 26.9
Sundry Income 6,856.16 14,264.46 (51.9)
Total 1,529,644.70 1,011,802.66 51.2
Expenditure
Personnel Emoluments 649,179.76 370,333.26 75.3
Programme Development 163,748.37 265,736.35 (38.4)
Administrative Expenses 506,443.54 504,256.17 0.4
Travel & Transport 76,423.64 73,237.54 4.4
Maintenance & Renewals 50,132.50 86,173.50 (41.8)
Total 1,462,098.56 1,319,262.97 10.8
Surplus/(Deficit) Income 67,546.1 (307,460.3) (122.0)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 75 Other Statutory Institutions for the period ended 31 December
336. Total income increased by 51.2% from GH¢1,011,802.66 in
2010 to GH¢1,529,644.70 in 2011. Government subvention, which
was the main source of income, contributing 58.0% of total income,
increased by 78.7% from GH¢496,149.43 in 2010 to GH¢886,715.61
in 2011. Internally Generated Fund (IGF) which was 41.6% of total
income, increased by 26.9% from GH¢501,388.77 in 2010 to
GH¢636,072.93 in 2011.
337. Total Expenditure increased by 10.8% from GH¢1,319,262.97
in 2010 to GH¢1,462,098.56 in 2011. Personal Emoluments which
accounted for 44.4% of total expenditure, increased by 75.3% from
GH¢370,333.26 in 2010 to GH¢649,179.76 in 2011 as a result of
increase in staff salaries, thereby accounting largely for the rise in
total expenditure. Programme Development expenditure dropped by
38.4% from GH¢265,736.35 in 2010 to GH¢163,748.37 in 2011 and
Maintenance & Renewals also decreased by 41.8% from
GH¢86,173.50 in 2010 to GH¢50,132.50 in 2011. Administrative
expenses however increased slightly by 0.4% from GH¢504,256.17 in
2010 to GH¢506,443.54 in 2011, while Travel & Transport expenses
also increased by 4.4% from GH¢73,237.54 in 2010 GH¢76,423.64 in
2011.
338. A sumarised balance sheet position as at 31 December 2011 is
shown in Table 15.
Table 15: Financial position as at 31 December 2011 2011
GH¢
2010
GH¢
%
Change
Fixed Assets 1,558,299.61 1,533,795.99 1.6
Current Assets 111,918.10 80,110.34 39.7
Current Liabilities 184,396.75 195,631.51 (5.7)
Net current assets (72,478.65) (115,521.17) (37.3)
Total assets 1,485,820.96 1,418,274.82 4.8
Financed by
Govt. Equity 1,940,250.00 1,940,250.00 -
Income Surplus (454,429.04) (521,975.18) (12.9)
Total 1,485,820.96 1,418,274.82 4.8
76 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Fixed assets
339. Fixed assets appreciated marginally by 1.6% from
GH¢1,533,795.99 in 2010 to GH¢1,558,299.61 in 2011 due to the
acquisition of plant, office equipment and furniture.
Current assets
340. Current assets comprised bar stock, accounts receivables and
cash and bank balances. These increased by 39.7% from
GH¢80,110.34 in 2010 to GH¢111,918.10 in 2011. An increase of
151.1% in cash and bank balances accounted mainly for the rise in
current assets. Debts owed the Theatre (accounts receivable)
decreased from GH¢51,236.96 in 2010 to GH¢46,622.93 in 2011; a
reduction of 9.0%. Management was urged not to relent in its effort at
pursuing the recovery of all outstanding debts.
Current liabilities
341. Current liabilities reduced from GH¢195,631.51 in 2010 to
GH¢184,396.75 in 2011, a fall of 5.7%. The reduction was as a result
of the payment of 41.5% out of the amount owing for water
consumption.
Acid- test ratio
342. The Theatre recorded an acid test ratio of 0.57:1 in 2011 as
compared with the 2010 ratio of 0.38:1 indicative that management
would not be able to meet its short term obligations as and when they
fall due. We advised management to strive to improve the operational
performance of the Theatre to meet the standard enterprise ratio of
1:1.
MANAGEMENT ISSUES
Tax irregularities - GH¢3,482.93
343. Section 87 of Internal Revenue Act 2000 (592) provides that
withholding taxes should be deducted from the payment of goods and
services procured and remitted to the district tax office within 15 days
after the month in which the eligible payments were made.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 77 Other Statutory Institutions for the period ended 31 December
344. During our review of payment vouchers, we however noted
that withholding taxes amounting to GH¢2,720.43 deducted between
April 2010 and December 2011 from payments made to suppliers of
goods and services have not been paid to the Commissioner, DTRD of
the GRA.
345. We also noted that the Accountant withheld 5% tax from the
sitting allowances of the Board members instead of 10% as stated in
Part IV of the First Schedule to the above stated Act, resulting in
under-deduction of tax amounting to GH¢742.50.
346. The foregoing situation which resulted from laxity on the part
of the Accountant adversely affected inflow of funds into the
Consolidated Fund.
347. We advised management to ensure that, the unremitted
withheld tax of GH¢2,740.43 is paid to the DTRD of the GRA
without delay. We recommended also that, the amount of GH¢742.50
which was the shortfall on the tax withheld on Board members sitting
allowances should be paid to the revenue authority and subsequently
recovered from the members.
348. Management accepted the recommendation for compliance and
stated that on the issue of the tax on sitting allowances, it needed to
study the schedule quoted above for appropriate action.
Payment vouchers not presented for audit
349. Contrary to Regulation 1 of the FAR, payment vouchers valued
at GH¢21,753.85 supposedly raised for various activities during the
period under review were not presented for audit.
350. Consequently, the authenticity of the payments could not be
determined.
351. We attributed this lapse to the Accountant’s failure to keep
proper records and lack of managerial supervision over the work of
the Accounts Section.
78 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
352. We recommended, and management accepted to ensure that the
payment vouchers together with the supporting documents are located
for our examination, failing which the Accountant should be made to
refund the amount involved.
Official vehicle without log book
353. We noted that an official vehicle No. GR 2019 T belonging to
the National Theatre had no vehicle log book. In effect, a total
amount of GH¢3,800.00 worth of fuel allegedly issued to the driver of
the above mentioned vehicle could not be accounted for in
contravention of Chapter 1604 of Stores Regulations 1984 which
states that a Vehicle Log Book shall be maintained for each
government vehicle to record all receipts of fuel and journeys
undertaken.
354. We could therefore not ascertain whether the fuel issued was
used in the interest of National Theatre and blamed the above situation
on management’s failure to acquire a log book for the vehicle.
355. We recommended and management accepted to ensure that a
vehicle log book is provided for the above mentioned vehicle and also
to ensure that details of fuel issued are record by the driver and
journeys made duly signed for by the officer using it, to ensure
accountability and efficient use of fuel.
GHANA DANCE ENSEMBLE
Introduction
356. This report relates to the audited accounts of Ghana Dance
Ensemble for the period 1 January 2011 to 31 December 2012.
Operational result
357. Though the operations of the year under review ended in a
surplus of GH¢19,193.75, it registered a drop of GH¢10,312.61 or
34.9% compared to the previous year’s surplus of GH¢29,506.36.
Table 16 is the performance indicators.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 79 Other Statutory Institutions for the period ended 31 December
Table 16: Income statement for 2012
Income 2012
GH¢
2011
GH¢
Change
GH¢
%
Change
G O G 419,141.08 332,148.16 86,992.92 26.1
I G F 96,814.00 78,271.50 18,542.50 23.7
Total 515,955.08 410,419.66 105,535.42 25.7
Expenditure
Employee
compensation
415,037.50 323,242.50 91,795.00 28.3
Administration 81,723.83 57,670.80 24,053.03 41.7
Total 496,761.33 380,913.30 115,848.03 30.4
Surplus/Deficit 19,193.75 29,506.36 (10,312.61) (34.9)
358. Ghana Dance Ensemble recorded a total income of
GH¢515,955.08 in 2012 against GH¢410,419.66 in 2011 representing
an increase of 25.7%. Government subvention, which was the main
source of income, contributing 81.2% of total income, increased by
26.1% from GH¢332,148.16 in 2011 to GH¢419,141.08 in 2012 as a
result of increase in releases for employees’ compensation. Internally
Generated Fund (IGF) which is solely Performance fees increased to
GH¢96,814.00 from GH¢78,271.50 in 2011 an increase representing
23.7%.
Expenditure
359. Total expenditure for the year 2012 increased to
GH¢496,761.33 from GH¢380,913.30 in 2011 representing 30.4%.
Employees’ compensation witnessed a rise of GH¢91,995.00 in 2012
from GH¢323,242.50 in 2011 to GH¢415,037.50 in 2012 representing
a 28.3% increase. The increase in employees’ compensation was due
to salary increase by the Central Government.
360. Administrative expenses increased from GH¢57,670.80 in
2011 to GH¢81,723.83 in 2012 representing an increase of 41.7%.
Significant among the administrative expenses were running cost of
vehicle which increased from GH¢6,214.00 in 2011 to GH¢9,300.00
in 2012 and medical expenses also increasing by GH¢4,178.78 from
GH¢4,509.82 to GH¢8,688.61 in 2012.
80 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial position
361. The Ensemble’s balance sheet as at 31 December 2012 is
provided in Table 17.
Table 17: Balance sheet as at 31 December 2012
2012
GH¢
2011
GH¢
Change
GH¢
%
Change
Non-current asset 12,560.73 13,489.52 (928.79) (6.9)%
Current asset 128,603.89 104,438.28 24,165.61 23.1%
Total 141,164.62 117,927.80 23,236.82 19.7%
362. Non-current assets dropped to GH¢12,560.73 in 2012 as
against GH¢13,489.52 in 2011 representing a 6.9% fall. This was due
to an increase in accumulated depreciation charged. However, current
assets increased by GH¢24,165.61 or 23.1%, from GH¢104,438.28 in
2011 to GH¢128,603in 2012. The increase was due to a deposit of
cash amounting to GH¢35,435 against the supply of a vehicle. The
increase in current assets mainly contributed to the increase in total
assets by 19.7% from GH¢117,927.80 in 2011 to GH¢141,164.62 in
2012.
363. Ghana Dance Ensemble registered no current liabilities.
MANAGEMENT ISSUES
Fuel coupons not accounted for- GH¢2,260.00
364. Section 31(1) of the FAA states “a head of department is
accountable for the government stores from time of acquisition to the
time they are of no further use or value to government. The Act also
states that 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.”
365. We observed during the period reviewed that, fuel coupons
totalling GH¢2,260.00 issued by the accounts officer to vehicle No.
GT1862 Y was not recorded in the vehicle log book.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 81 Other Statutory Institutions for the period ended 31 December
366. We attributed the omission to management’s failure to
effectively supervise and monitor the use of fuel. We were therefore
unable to ascertain whether the fuel was used in the interest of Ghana
Dance Ensemble.
367. To ensure transparency in the use of fuel and avoid recurrence
of this irregularity, we recommended that the driver should account
for the use of the unrecorded fuel; otherwise the amount should be
recovered. Additionally, management should step up supervision and
ensure that, the drivers are given adequate training on the maintenance
of vehicle logbook.
368. Management accepted our recommendation and assured us of
compliance.
W. E. DUBOIS CENTRE
Introduction
369. This report is in relation to the audited accounts of the W.E.
Dubois Centre for the period 1 January 2010 to 31 December 2011.
Operational results
370. Income for the period rose by 98.8% from GH¢97,589.75 in
2010 to GH¢193,991.29 in 2011. The significant increase was due to a
52.2% increase in Internally Generated Funds (IGF). Presented in
Table 18 is the Centre’s performance for the period.
Table 18: Comparative income statement for 2011 and 2010 Income
2011 GH¢
2010 GH¢
% Change
Subvention 70,677.49 21,021.77 236.2
Other Income (IGF) 116,543.80 76,567.98 52.2
Refunds 6,770.00 -
Total 193,991.29 97,589.75 98.8
Expenditure
Personal Emoluments 83,124.45 31,806.73 161.3
Administrative Expenses 116,676.61 54,447.82 114.3
Service Expenses 18,118.55 3,866.02 368.8
Total Expenditure 217,919.61 90,120.57 141.8
Surplus/Deficit (23,928.32) 7,469.18 (420.4)
82 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
371. Total Expenditure for 2011 increased from GH¢90,120.57 in
2010 to GH¢217,919.61 in 2011 representing an increase of 141.8%.
Personnel Emoluments which is one of the components of total
expenditure increased significantly, from GH¢31,806.73 in the
previous year to GH¢83,124.45 in 2011, an increase of 161.3%.
372. The rise was attributed to an increase in staff salaries resulting
from the implementation of the Single Spine Salary Structure.
Administrative expenses rose by 114.3% from GH¢54,447.82 in 2010
to GH¢116,676.61 in 2011. The cost of rewiring of the whole office
and land scrapping to beautify the museum largely accounted for the
increase. Service expenses rose from GH¢3,886.02 in 2010 to
GH¢18,118.55 in 2011.
373. The significant rise of 368.7% over the last year’s expenditure
was due to the purchase of new equipments for the Centre’s Guest
House.
374. An operational deficit of GH¢23,928.32 was recorded in 2011
as against a surplus of GH¢7,469.18 in 2010.
Financial position
Non-current assets
375. The Centre’s balance sheet did not include non-current assets.
Management explained that most of the buildings had still not been
valued and even though it was its desire to do so, financial constraints
had delayed the valuation. Management however hopes to get the
valuation done in the near future.
Current assets
376. Current assets fell by GH¢15,802.23 or 57.6%, from
GH¢27,454.83 in 2010 to GH¢11,652.60 in 2011. The significant
reduction in cash and bank balance accounted for the fall.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 83 Other Statutory Institutions for the period ended 31 December
Current liabilities
377. In 2011, total liability was GH¢8,126.09 as against a nil
balance in 2010. The Centre purchased a Nissan pick-up truck from
Modern Auto Service and the amount represents the remaining
balance yet to be settled. The net assets of the Centre for the period
under review therefore stood at GH¢3,526.51.
378. The Centre’s liquidity position as depicted by its current ratio
of 1.4:1 indicates that the Centre can meet its short term obligations
when they fall due.
MANAGEMENT ISSUES
Cash payments resulting in loss of tax revenue - GH¢7,641.38
379. Regulation 48 of L. I. 1802 mandates a head of department to
keep cash holdings to the absolute minimum consistent with the
official discharge of public financial business by ensuring that
collections or payments are made by cheque, bank transfer or direct
payments to bank accounts.
380. We noted during our examination of payment vouchers that the
use of cheques, bank transfers or direct payment to bank accounts was
rather minimal. We observed that cash amounting to GH¢61,282.26
and GH¢91,545.35 were paid in 2010 and 2011 respectively.
381. As a result of management’s failure to adhere to the provision
of the above stated regulation, withholding tax of GH¢7,641.38 due
the state were not deducted and subsequently paid to the relevant
authority. Also, the practice could lead to uncontrolled expenditure.
382. We recommended and management agreed to desist from the
practice and comply with the stipulation of the aforementioned FAR.
Payments without official receipts - GH¢52,529.57
383. Regulation 28 of the FAR requires that official receipts should
be obtained for all payments made.
84 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
384. We however noted that no official receipts were provided to
support payments totalling GH¢52,529.57 made to service providers
during the review period. We attributed the irregularity to failure of
the paying officer to demand the relevant receipts from the recipients
to authenticate the payments. We could therefore not determine
whether the payments were made to the intended beneficiaries.
385. For proper accountability and transparency in the utilisation of
public funds, we advised management to ensure that the paying officer
obtains the receipts for these and subsequent payments; otherwise the
amount should be refunded.
386. Management stated that efforts would be made to obtain the
receipts for our perusal.
Unaccounted for revenue - GH¢404.50 and $687.38
387. FAR 17 stipulates that a head of department shall ensure that
all non-tax revenue is efficiently collected and immediately lodged in
the designated Consolidated Fund Transit bank account except in the
case of Internally Generated Fund (IGF) retained under enactment.
388. We however noted that between January and August 2010, out
of GH¢1,207.50 IGF collected, only GH¢803.00 was accounted for,
leaving a difference of GH¢404.50. The lapse was due to instances
where there were no entries in the cash book and the understatement
of revenue recorded.
389. We also observed that out of US$1,354.00 realised during the
period, the Cashier banked only US$666.62 leaving an outstanding
balance of US$687.38 unaccounted for. Lack of managerial reviews
and supervision occasioned this lapse which deprived the Centre of
much needed funds to execute planned programmes.
390. We advised management to recover the amount from the
Cashier and improve on internal controls and managerial reviews to
prevent a recurrence of the anomaly.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 85 Other Statutory Institutions for the period ended 31 December
391. Management in response stated that most of the amounts were
not credited lodgments. We however opined that the preparation of
monthly bank reconciliation statements which management failed to
ensure could have exposed this anomaly and recommended that the
outstanding amounts should be investigated and appropriate action
taken.
Tax irregularity - GH¢2,503.50
392. In contravention of Section 87(1) of the Internal Revenue Act,
our audit revealed that management failed to remit to the DTRD of
GRA taxes amounting to GH¢566.63 withheld from purchases worth
GH¢11,332.60.
393. In another development, management paid an amount of
GH¢50,070.00 to Modern Automobile and Biz Geo Company without
deducting GH¢2,503.50 as withholding tax.
394. Management’s inability to withhold and pay the taxes promptly
to the Commissioner could distort the revenue projections of the state
and attract penalties to the detriment of the Centre.
395. We advised management to remit the amount involved to the
DTRD and obtain a receipt for our inspection and in future put in
place the mechanisms necessary to ensure compliance with the tax
law.
396. Management subsequently paid the withheld tax of GH¢566.63
on 17 April 2012 and presented an exemption letter from Ghana
Revenue Authority in favor of Modern Autos Services but the period
for exemption was for the 2012 financial year.
397. We therefore requested management to ensure full payment of
the withholding tax of GHȼ2,503.50 which was not deducted from
payments to Modern Autos Service and Biz Geo to the revenue
agency.
86 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Purchases from non-VAT registered suppliers
398. We noted that contrary to Section 30(2) of the FAA, 2003
which requires all MDAs and MMDAs to transact business with only
VAT registered suppliers, management transacted business worth
GH¢22,668.49 with non-VAT registered suppliers.
399. Consequently, the state was denied VAT/NHIL revenue of
GH¢3,400.27.
400. The lapse was attributed to management’s failure to adhere to
the provisions of the above stated Act.
401. We recommended and management agreed to transact business
with suppliers who are VAT registered in order to generate revenue
for the state.
Unearned salary - GH¢358.26
402. Our payroll review disclosed that Mr. Ayang Oliver, who
retired on 4 May 2011, continued to receive salary until the end of
July 2011. A total net unearned salary of GH¢358.26 was as a result
paid into his bank account.
403. The lapse was due to management’s delay in notifying C&AG
to delete the separated staff’s name from the payroll and the bank to
withhold the amount and subsequently pay same into the Consolidated
Fund.
404. Management’s inaction which violated Regulations 297 and
298 of L. I 1802 could result in the loss of the amount.
405. We therefore advised management to promptly recover the
amount from either the ex-employee or his bankers if it has not been
withdrawn into the Consolidated Fund and in future ensure strict
adherence to the financial regulations cited.
406. Management agreed to comply and to put in the necessary
controls to curtail future occurrences.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 87 Other Statutory Institutions for the period ended 31 December
Fuel purchased not accounted for - GH¢1,181.00
407. The Centre failed to maintain records for fuel worth
GH¢1,181.00 purchased for two official vehicles with registration
Nos. GV 5123 D and GV 764 E. The anomaly contravened Chapter
1604 of Stores Regulations 1984 which requires the maintenance of
vehicle log books to record journeys undertaken and particulars of
receipt of fuel, oil and lubricants.
408. The omission could encourage diversion and misuse of fuel.
409. We recommended that the drivers should account for the fuel,
failing which the amount of GH¢1,181.00 should be recovered and
paid into the Centre’s bank account. We also recommended that
sufficient controls be instituted by management to ensure that drivers
log all fuel purchased or issued to them.
ABIBIGROMMA THEATRE COMPANY
Introduction
410. This report relates to the audited accounts of the Abibigromma
Theatre Company for the period 1 January 2011 to 31 December
2012.
Operational results
411. The Theatre Company ended its operations for 2012 with a
surplus of GH¢4,823.04 as against the previous year’s surplus of
GH¢4,521.10 representing an increase of 6.7%. The main
performance indicators are shown in Table 19.
Table 19: Performance indicators for 2012 and 2011 Income 2012
GH¢ 2011 GH¢
% Change
Government Subvention 5,100.09 6,603.39 (22.8)
Internally Generated Fund 81,764.90 33,140.20 146.7
Others 1,408.00
Total 88,272.99 39,743.59 122.1
Expenditure
Administrative Expenses 83,449.95 35,221.68 136.9
Total 83,449.95 35,221.68 136.9
Excess Expenditure/Income 4,823.04 4,521.91 6.7
88 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Income
412. Total income registered an increase of 122.1% from
GH¢39,743.59 in 2011 to GH¢88,272.99 in 2012. The IGF, which
was the main source of income, contributed 92.6% of total income. It
increased significantly by 146.7%, from GH¢33,140.20 in 2011 to
GH¢81,764.90 in 2012. This was due to increase in theatre
performances especially in second cycle institutions and outside
Ghana. Government subvention, which was also 5.8% of total
income, decreased by 22.8% from GH¢6,603.39 in 2011 to
GH¢5,100.09 in 2012. Other Income contributed a meager 1.6% of
total income.
Expenditure
413. Total expenditure, mainly administrative expenses, increased
by 136.9% from GH¢35,221.68 in 2011 to GH¢83,449.95 in 2012.
The high increase in expenditure on production cost from
GH¢13,331.80 in 2011 to GH¢32,424.44 in 2012 and the payment of
long service award of GH¢17,040.92 accounted largely for this.
Financial Position
414. A sumarised balance sheet of the Theatre Company as at 31
December 2012 is provided in Table 20
Table 20: Balance sheet as at 31 December 2012
2012
GH¢
2011
GH¢
%
Change
Current Assets 11,900.98 7,417.23 60.5
Current Liabilities 339.29
Net Assets 11,900.98 7,077.94 68.1
Current Assets
415. Current assets comprised Costumes and Props, Bank Balance
and Debtors. This went up from GH¢7,417.23 in 2011 to
GH¢11,900.98 in 2012 representing a 60.5% rise.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 89 Other Statutory Institutions for the period ended 31 December
416. This was due to increase in bank balance by 89.3%, rising
from GH¢4,361.65 in 2011 to GH¢8,258.00 for the year under review
resulting from increased receipts from theatre performances. Debtors
increased by 49.3% from GH¢1,190.95 in 2011 to GH¢1,778.55 in
2012. The debtors figure included advances due from retired and
resigned staff amounting to GH¢1,190.95 with some dating as far
back as 1997. The ineffective loan recovery system instituted by
management accounted for this. Management was advised to put in
place an effective loan recovery mechanism, which would ensure full
recovery of all debts.
Accumulated Fund
417. The accumulated fund of the Company increased to
GH¢11,900.98 in 2012 as against GH¢7,077.94 in 2011.
MANAGEMENT ISSUES
Unearned salary – GH¢3, 128.94
418. Our payroll audit disclosed that two separated officers of the
Theatre Company were wrongly paid a total salary of GH¢3,128.94 in
violation of Regulation 297 of L.I.1802 which requires a head of
department to immediately cause the stoppage of payment of salary to
a public servant separated either by death, resignation or vacation of
post.
419. We attributed the irregularity to management’s failure to
inform the Controller and Accountant-General immediately the above
officers were separated for their names to be deleted from the payroll.
Management’s inaction led to the state losing scarce resources which
could be channeled into developmental projects.
420. We recommended that the unearned salary should be recovered
from the separated officers or their bankers if the monies have not
been withdrawn and lodged into the Consolidated Fund, otherwise the
spending officer and accountant whose inaction caused the loss should
be surcharged. Management should also institute measures against
future occurrence.
90 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
421. Management stated that the Accountant General’s Department
was informed but no evidence was provided to this effect. However,
management assured us that it will verify from the various banks to
ascertain if the moneys had been returned to chest.
NATIONAL COMMISSION ON CULTURE
Introduction
422. This report relates to the audited accounts of the National
Commission on Culture for the period 1 January 2010 to 31 December
2011.
Operational result
423. The operation of the Commission for 2011 ended with a
surplus of GH¢123,176.41 as compared with the 2010 surplus of
GH¢233,478.21, which showed a reduction of 47.2%.
424. The Commission’s total income for 2011 was GH¢549,065.13
as against GH¢527,323.50 for 2010, representing an increase of 4.1%.
Government subvention which was the main source of income
representing 96.5% of total income increased by 5.7%, from
GH¢501,277.50 in 2010 to GH¢530,025.13 in 2011 accounting for the
rise in total income. The other source of income, Other Income
however reduced to GH¢19,040.00 in 2011 from GH¢26,046.00 in
2010, representing a fall of 27.0% Presented in Table 21 are the
performance indicators.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 91 Other Statutory Institutions for the period ended 31 December
Table 21: Performance indicators for 2011 and 2010 Income 2011
GH¢
2010
GH¢
%
Change
Subventions 530,025.13 501,277.50 5.7
Others 19,040.00 26,046.00 (27.0)
Total 549.065.13 527,323.50 4.1
Expenditure
Administration Expenses 98,685.98 62,241.75 58.6
Personnel Emolument 325,782.74 194,705.45 67.3
Programmes 1,420.00 25.886.26 (94.5)
Service - 11,021.83 -
Total 425,888.72 293,855.29 44.9
Surplus/Deficit 123,176.41 233,468.21 (47.2)
425. Total expenditure for 2010 and 2011 was GH¢293,855.29 and
GH¢425,888.72 respectively. This showed an increase of 44.9%. The
sharp rise of 67.3% in Personnel Emolument from GH¢194,705.45 in
2010 to GH¢325,782.74 in 2010 as a result of salary increase and
payment of arrears contributed largely to the increase in total
expenditure.
Financial position
426. The components of the Commission’s financial position are
shown in Table 22:
Table 22: Balance sheet as at 31 December 2011 Item 2011
GH¢
2010
GH¢
%
Change
Non-current assets 708,151.29 608,594.88 16.4
Current asserts 31,057.18 6,913.62 349.2
Current liabilities 696.02 696.00 0.0
Net assets 738,512.45 614,812.50 20.1
Represented by
Accumulated Fund 731,872.53 608,696.12 20.2
Car Loan Revolving Fund 6,639.92 6,116.38 8.6
Total 738,512.45 614,812.50
92 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
427. In 2011 fixed assets of the Commission increased to
GH¢708,151.29 from GH¢608,594.88 in 2010, representing a rise of
16.4% as a result of addition to buildings.
428. Current assets increased by 349.2% to GH¢31,057.18 during
the period under review as compared with GH¢6,913.62 in the
previous year. This was due to a 228.4% increase in debtors and a
382.2% rise in bank balance as a result of the receipt of late
subvention for 2011, Current liabilities did not show any change.
429. The current ratio of 44.6:1 in 2011 as against 9.9:1 in 2010
showed a marked improvement and with that the Commission can
meet its short-term obligation when it falls due.
MANAGEMENT ISSUES
Procurement from non VAT registered persons - GH¢20,496.00
430. Regulation 183(4) of the Financial Administration Regulation
(FAR) 2004 states that a department shall procure government stores
from only Value Added Tax (VAT) registered persons or entities and
any department that requires an exemption for any specific case shall
apply to the Minster with the necessary justification.
431. On the contrary, we noted that the Commission procured
stationery from Upstairs Complex and services from Akosombo
Continental Hotel amounting GH¢20,496.00 without VAT/NHIL
invoice to support the payments, indicative that the companies were
not VAT registered entities. There was also no approval from the
Minister for the Commission to procure from the non VAT registered
entities as otherwise required by the financial regulation.
432. Non-compliance with the FAR resulted in the loss of
GH¢3,074.40 in VAT/NHIL revenue accruing to the state.
433. We therefore recommended and management agreed to adhere
to the above cited provisions of the FAR in subsequent transactions or
responsible officials surcharged for any future losses.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 93 Other Statutory Institutions for the period ended 31 December
Improper maintenance of vehicle log book
434. Stores Regulations 1604 and 1605 require among others that
the full particulars of fuel, oil and lubricants shall be entered up daily
in the log book by the driver and at the end of each month the rate of
fuel consumption shall be computed in kilometres per litres and
recorded in the log book.
435. During our review of transport management, we observed that
though vehicle log books were allocated to pool vehicles, the transport
officer failed to ensure full compliance with the above quoted
regulations. The reason for this lapse was partly due to instances
where fuel drawn was recorded only in monetary value without the
corresponding quantity in litres. We also observed instances where
fuel amounting to GH¢1,250.00 out of GH¢6,860.00 worth issued to
official vehicles were not recorded in any of the log books.
436. Due to these lapses, we could not confirm whether the fuel not
logged was actually used in the furtherance of the Commission’s
programmes. We could also not confirm the efficiency of the
Commission’s vehicles and the reasonableness of the use of the fuel
worth GH¢6,860.00 bought during the review period.
437. We recommended that in future, management should ensure
that fuel drawn by all vehicles are recorded in both quantity and value
in the log books by the drivers failing which the drivers should be
held liable for a refund of the amount involved. Also, monthly average
fuel consumptions should be computed by each driver and reviewed
by the transport officer to inform management decision.
MINISTRY OF EDUCATION
UNIVERSITY OF GHANA
Introduction
438. This report is in respect of the consolidated audited accounts of
the University of Ghana for the period 1 January 2007 to 31
December 2009.
94 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Operational results
439. Table 23 presents the performance indicators for the last two
years.
Table 23: Performance indicators for 2009 and 2008
Income
2009
GH¢
2008
GH¢
%
Change
Government Grant 47,257,617 46,165,148 2.4
Internally Generated Fund 38,176,202 23,056,612 65.6
Total Income 85,433,820 69,221,760 23.4
Expenditure
Staff Emoluments 41,999,231 34,052,764 23.3
Other Expenditure 38,393,467 23,493,262 63.4
GET FUND Projects 3,190,622 5,305,416 (39.9)
Total Expenditure 83,583,321 62,851,442 32.9
Surplus/(Deficit) 1,850,499 6,370,318 (70.9)
440. Total Income realized for 2009 amounted to GH¢85,433,820,
thus registering an increase of GH¢16,212,060 or 23.4% over the
previous year’s figure of GH¢69,221,760. Internally Generated Funds
(IGF) contributed 44.7% of total income for year 2009 whilst
Government Grants accounted for 55.3%. The increase in IGF was
mainly attributed to the rise in Student Academic fees and Student
Registration and Exams fees.
441. Total Expenditure increased by 32.9% from GH¢62,851,442 in
2008 to GH¢83,583,321 in 2009. The rise was mainly due to
increases in Staff Emoluments, Staff Training Expenses, Repairs and
Maintenance of Property, Utility and Financial Services expenses.
442. The School’s operations for 2009 ended with a surplus of
GH¢1,850,499 as against a surplus of GH¢6,370,318 reported in the
previous year, representing a decrease of 70.9%.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 95 Other Statutory Institutions for the period ended 31 December
Financial position
443. Presented in Table 24 is the sumarised balance sheet as at 31
December 2009.
Table 24: Balance sheet as at 31 December 2009
2009
GH¢
2008
GH¢
%
Change
Long Term Investment 12,252,764 11,171,625 9.7
Current Assets 35,186,028 32,122,466 9.3
Current Liabilities 12,804,235 14,384,391 (10.9)
Net Current Assets 22,381,793 17,738,075 26.3
Net Total Assets 34,634,556 28,909,701 19.8
Current Ratio 2.7:1 2.2:1
444. Long Term Investment which was made up of equity in UGEL
and other Long-term Investments increased by 9.7% from
GH¢11,171,625 in 2008 to GH¢12,252,764 in 2009. This was as a
result of 9.8% rise in Equity in UGEL.
445. Current Assets increased by 9.3% from GH¢32,122,466 in
2008 to GH¢35,186,028. This was largely due to a 22,134.3% rise in
Staff Personal Accounts.
446. The decline in Current Liabilities from GH¢14,384,391 in 2008
to GH¢12,804,235 in 2009 was mainly due to reduction in Sundry
Creditors and Provisions made.
447. The Current ratio of 2.7:1 (2008:2.2:1) showed the School is
solvent and can meet its short term obligations when they fall due.
MANAGEMENT ISSUES
Volta Hall
Rent Arrears: - US$3,325.00
448. We noted that Professor A. Oladosu, a visiting Professor at the
Department of Modern Languages was hosted by the Hall in 2008.
The total rent charged amounted to US$3,325.00 as at 30 June 2008.
96 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
However, the rent due had still not been settled as at 31 December
2009. We recommended that management of the Hall should follow
up to Department of Modern Languages and ensure that the rent due is
settled.
449. Management indicated that a letter was written to the Director
of Finance to demand the payment but this was yet to be settled.
Institute of Statistical Social and Economic Research
Non-deduction of withholding taxes - GH¢3,302.80
450. We observed during the audit that withholding taxes amounting
to GH¢3,302.80 were not deducted on the allowances paid to research
assistants, members of staff and other personnel engaged by the
Institute to work on its projects. This practice impact adversely on the
inflow into the Consolidated Fund. The breakdown is as follows:
Project
Amount
Paid
GH¢
Tax
(10%)
Project Management 6,500 650.00
Honorarium 6,538 653.80
Data Management 7,580 758.00
Research Methods 4,660 466.00
Honorarium 7,750 775.00
Total 33,028 3,302.80
451. We recommended that withholding taxes should be deducted
from all payments made to personnel on the project and the deducted
taxes paid to the Commissioner of the Domestic Tax Revenue
Division of the Ghana Revenue Authority to enhance cash flow into
the consolidated fund.
Basic School
Pupils Indebtedness - GH¢53,201.70
452. We noted that Pupils indebtedness to the school amounted to
GH¢53,201.70 as at 31 December 2009, an increase of 27% over the
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 97 Other Statutory Institutions for the period ended 31 December
previous year. Out of the total indebtedness, an amount of
GH¢25,592.24 represented outstanding fees owed by School Leavers
and Pupils who have been withdrawn between 1990 and 2009. The
remaining amount of GH¢27,609.46 relates to fees owed by existing
Pupils.
453. We were of the view that this affects the smooth running of the
school’s programme and objectives.
454. We recommended that Management of the School should
ensure that arrears of fees are collected promptly from fee defaulters
before final examinations. Also stringent measures should be adopted
to recover the debts from pupils who have left the School. Where
recovery is doubtful, appropriate steps should be taken in line with
existing regulation to write off the debts.
Guest Centre
Debtors Balances - GH¢169,922.42
455. We observed that a total amount of GH¢169,922.43 was owed
the Centre as at 31 December 2009. Out of this amount three units of
the University constituted about 50% (GH¢84,716.88) of the total
debts owed the Centre. The debts of these Units have also increased
significantly in the year 2009.
456. The nonpayment of the debt could make the Guest house run
into financial distress with its attendant implications. Below are the
Units and their respective debts and increments over the period.
Name of Unit
2009
GH¢
2008
GH¢
%
Change
Registrar’s Office 39,473.14 12,053.34 227.5
P.D.M.S.D. 12,774.85 7,142.55 78.9
Public Affairs Directorate 32,468.89 25,608.49 26.8
84,716.88 44,804.38
457. We recommended that management should ensure that Units of
the University settle their debts promptly to enhance the Centre’s
liquidity position. Alternatively, the debts owed by the Units of the
98 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
University could be off set against the annual 50% of net profit returns
the Guest Centre pays to the main University.
Physical Development and Municipal Service Directorate
(PDMSD)
Internal Revenue Office
Collection of debts
458. Our audit disclosed weaknesses in the collection of electricity
and water bills from tenants who used the University’s resources to
promote their business activities. We noted that most of the tenants
did not pay for electricity bills at their premises. Notable among the
defaulters are the under listed tenants who did not pay any bill for the
year 2009:
Client Payment for
the year 2009
A/c No Bal at year end
31/12/2009(GH¢)
Amagamated
Networks None 219
21,803.81
Felicia Tendar None 224 382.60
Gladys Boatemaa None 201 266.60
Elitopher None 208 2,192.70
Media Designs Gh¢400 215 731.33
Trendy Fashion None 217 310.81
Kingdwosco None 221/258 11,460.21
Total 37,148.06
459. The lapse could be attributed to ineffective follow up of these
debts to ensure that the defaulters settle their bills on time or were
disconnected.
460. Consequently this would negatively affect the cash flow
position of the University.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 99 Other Statutory Institutions for the period ended 31 December
461. We recommended that stringent measures are taken to have
these defaulters settle their debts and subsequently pay for all utility
services used.
UNIVERSITY OF GHANA
SCHOOL OF PHARMACY, COLLEGE OF HEALTH
SCIENCES
Introduction
462. This report covers the audited accounts of the University of
Ghana, School of Pharmacy, college of Health Sciences for the
seventeen month period ended 31 December 2009.
Operational results
463. Total Income received in 2009 was GH¢369,036 comprising
Subvention and Grants of GH¢221,640 which represented 60.1% of
the total income and Internally Generated Income of GH¢147,396
accounted for 39.9% of total income. Personnel Emoluments of
GH¢189,472 accounted for 85.5% of the Subvention and Grants
received during the year.
464. Presented in Table 25 are the operational details.
Table 25: Income statement for 2009
Income
2009
GH¢
Subvention and Grants 221,640
Internally Generated Income 147,396
369,036
Expenditure
Personnel Emoluments 183,658
General and Admin. Expenses 40,368
Financial charges 36
Procurement of Fixed Assets 37,234
261,294
Surplus 107,742
100 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
465. Total Expenditure for the year under review was GH¢261,294.
Significant among the expenditure included personnel emoluments of
GH¢183,658 representing 70.3% of the total expenditure and general
and administrative expenses of GH¢40,368 and procurement of fixed
assets of GH¢37,233 accounted for 15.4% and 14.2% respectively of
the total expenditure. Salaries and wages of GH¢178,601 accounted
for 97.2% of the personnel emoluments.
466. The School’s operation for the year ended with a surplus of
GH¢107,742 which had been transferred into the accumulated fund.
Financial Position
467. Table 26 presents the financial position of the School.
Table 26: Financial Position as at 31 December 2009
2009
GH¢
Current Assets 110,042
Current Liabilities 2,300
Current Ratio 47.8:1
468. The Current Assets at the end of the seventeen month period
was GH¢110,042. This largely comprised Cash and Bank balances of
GH¢107,420 and Inventory of GH¢2,622. Cash and Bank balances
accounted for 97.6% of the Current Assets.
469. The corresponding current liabilities was GH¢2,300.00 and this
represented outstanding audit fees.
470. The Current ratio of the School stood favourably at 47.8:1 in
2009 indicating that the School would be able to meet its short term
debts as and when they fall due
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 101 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Absence of fixed assets register
471. We noted that fixed assets register was not kept to record
details of the assets belonging to the School. This weakness had the
potential of making the School’s assets vulnerable to theft as well as
exchanging one make of equipment for another without detection.
472. We attributed the weakness to lax supervision by management.
473. We therefore recommended that a fixed asset register should be
maintained to take record of assets acquired.
UNIVERSITY OF GHANA
SCHOOL OF PUBLIC HEALTH, COLLEGE OF HEALTH
SCIENCES
Introduction
474. This report relates to the audited accounts of the University of
Ghana, School of Public Health, College of Health Sciences for the
year ended 31 December 2009.
Operational Results
475. Total Income of the School of Public Health, which was
made up of Government Subvention and Internally Generated Income
rose from GH¢1,153,040 in 2008 to GH¢1,981,357 in 2009. The rise
of 71.8% was a result of 40.1% increase in Government Subvention
and 150.8% increase in Internally Generated Income. The rise in
Internally Generated Income was largely due to collection of school
fees of GH¢508,217 in 2009 and 14,176.1% increase in Other Income
from GH¢980.00 in 2008 to GH¢139,906 in 2009. Table 27 provides
details of the main performance indicators.
102 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 27: Income Statement for 2009
Income
2009
GH¢
2008
GH¢
%
Change
Government Subvention 1,152,482 822,542 40.1
Internally Generated Income 828,875 330,499 150.8
1,981,357 1,153,040 71.8
Expenditure
Personnel Emolument 1,161,218 706,381 64.4
General and Admin.
Expenses
376,284 247,010 52.3
Finance Expenses 3,898 1,639 137.8
Procurement of fixed Assets 203,016 177,187 14.6
1,744,417 1,132,217 54.1
Surplus/(Deficit) 236,940 20,824 1,037.8
476. Total Expenditure for the year under review also increased
significantly by 54.1% from GH¢1,132,217 in 2008 to GH¢1,744,417
in 2009. The increase was mainly due to significant increases in
Personnel Emoluments, General and Administrative Expenses and
Finance Expenses. Personnel Emoluments which went up by 64.4%
was mainly due to 65% increase in Salaries and Allowances from
GH¢628,615 in 2008 to GH¢1,037,364 in 2009. The 52.3% increase
in General and Administrative Expenses was as a result of increases in
telephone and Fax/Internet Subscription bills and short course
Administrative expenses.
477. The School of Public Health registered an operational surplus
of GH¢236,940 during the year, compared with GH¢20,824 recorded
in the preceding year, representing a rise of 1,037.8%.
Financial Position
478. Table 28 provides the financial position of the School as at 31
December 2009.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 103 Other Statutory Institutions for the period ended 31 December
Table 28: Financial Position as at 31 December 2009
2009
GH¢
2008
GH¢
%
Change
Current Assets 1,613,951 1,256,854 28.4
Current Liabilities 1,174,497 1,047,011 12.2
Net Assets 439,455 209,843 109.4
Current Ratio 1.37:1 1.20:1
479. Current Assets increased by 28.4% from GH¢1,256,854 in
2008 to GH¢1,613,951 in 2009. The increase in Current Assets was
mainly due to increases in Cash and Bank Balances at the year-end
and Accounts Receivable.
480. Current Liabilities also increased by 12.2% from
GH¢1,047,011 in 2008 to GH¢1,174,497 in 2009. This was largely
due to significant rise in Grant Balances from GH¢643,118 in 2008 to
GH¢801,086 in 2009.
481. The Current ratio measuring the liquidity position of the School
was 1.37.1 in 2009 as against 1.20:1in 2008, an indication that the
School would be unable to meet its short term obligations as and when
they fall due.
UNIVERSITY OF GHANA MEDICAL SCHOOL
COLLEGE OF HEALTH SCIENCES
Introduction
482. This report relates to the audited accounts of the University of
Ghana, Medical School, College of Health Sciences for the year ended
31 December 2009.
Operational Results
483. Total Income for the year under review fell marginally by 0.9%
from GH¢11,115,283 in the previous year to GH¢11,018,187.00 in
2009. The decrease was as a result of reduction in Subvention and
Grants and a fall in Internally Generated Income for the year under
review. Table 29 shows the performance components for the period
under review.
104 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 29: Income statement for 2009
Income
2009
GH¢
2008
GH¢
%
Change
Subvention and Grant 7,826,665 7,883,525 (0.7)
Internally Generated Income 3,191,522 3,231,758 (12)
Total Income 11,018,187 11,115,283 (0.9)
Expenditure
Personnel Emolument 9,638,239 7,415,268 30.0
General and Admin.
Expenses
860,878 691,315 24.5
Financial Charges 50,550 29,120 73.6
Procurement of Fixed Assets 405,515 217,563 86.4
Total Expenditure 10,955,182 8,353,266 31.1
Surplus/(Deficit) 63,005 2,762,017 (97.7)
484. Total expenditure increased by 31.1% from GH¢8,353,266 in
2008 to GH¢10,955,182 in 2009. The increase was mainly due to
30% increase in Personnel Emolument; 24.5% increase in General and
Administrative Expenses and 86.4% increase in Procurement of Fixed
Assets. The rise in Personnel Emolument was largely due to increases
in salaries and wages, Pension and Gratuity and Book and Research
Grant. The rise in General and Administrative Expense was due to
increase in repairs and maintenance of building and motor vehicles.
485. Procurement of fixed Assets increased because of acquisitions
of additional assets such as furniture, fixtures and fittings; laboratory
equipment and office equipment during the period.
486. As a result of high expenditure for the period under review, the
School recorded a surplus of GH¢63,005 compared with
GH¢2,762,017 recorded in the previous year, representing a drop of
97.7%.
Financial Position
487. Presented in Table 30 is the financial position of the School as
at 31 December 2009.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 105 Other Statutory Institutions for the period ended 31 December
Table 30: Balance sheet as at 31 December 2009
Income
2009
GH¢
2008
GH¢
%
Change
Current Assets 5,149,457 5,132,429 0.3
Current Liabilities 1,836,997 1,882,975 (2.4)
Net Assets 3,312,460 3,249,455 1.9
Current Ratio 2.8:1 2.7:1
488. Current Assets grew marginally by 0.3% from GH¢5,132,429
in 2008 to GH¢5,149,457 in 2009. The marginal growth was as a
result of increase in short-term Investments from GH¢1,010,611 in
2008 to GH¢1,676,898 in 2009 and a decrease in Cash and Bank
balance from GH¢3,640,717 in 2008 to GH¢2,717,757 in 2009.
489. Even though, Accounts Payable and Accruals shot up to
GH¢1,605,468 from GH¢1,577,966 in 2008, a 24.1% drop in Grants
Balances caused Current Liabilities to decrease by 2.4% from
GH¢1,882,975 in 2008 to GH¢1,836,997 in 2009.
490. The Medical School’s liquidity ratio of 2.8:1 (2008:2.7:1)
appeared favourable and indicated its ability to meet short-term
liabilities as and when they fall due.
MANAGEMENT ISSUES
Dormant Accounts-GH¢ 15,918.90
491. During our examination of the accounts, we noted that the
following accounts had been dormant over the years, thus, without
any movements:
Description
Amount
GH¢
National Westminister Bank Current Account 3,759.76
National Westminister Bank Fixed Deposit 11,504.75
Bank of Ghana 630.16
GCB – New Burkit Tumor Project 13.81
GCB – Savings Account 10.43
Total 15,918.90
106 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
492. In our view the non-movement in the accounts for such a long
period could provide avenue for financial malpractices.
493. We therefore recommended that efforts should be made to
investigate these dormant accounts and appropriate action taken to
prevent any financial malpractices and advised management to make
available the bank statements for monthly reconciliation and
certification.
494. Management responded that it had contacted the University of
Ghana London Office for 2009 and 2010 bank statement of National
Westminster bank but all efforts have proved futile adding that efforts
have been made to close the remaining dormant accounts.
UNIVERSITY OF GHANA, CENTRAL ADMINISTRATION
COLLEGE OF HEALTH SCIENCES
Introduction
495. This report covers the audited accounts of the University of
Ghana, Central Administration, College of Health Sciences for the
year ended 31 December, 2009.
Operational Results
496. The Central Administration’s total income for the year was
GH¢1,446,619 compared to GH¢1,054,077 in 2008, representing an
increase of GH¢392,542 or 37.2%. This was due to an increase of
GH¢360,195 in Internally Generated Income.
497. Even though Subvention and Grants was the major source of
income to the Central Administration, it went up marginally by 4.5%
to GH¢749,100 from GH¢716,754 in 2008. Internally Generated
Income which constituted about 48.2% of the Total Income, rose
sharply by 106.8% to GH¢697,519 from GH¢337,324 in 2008. The
sharp rise in Internally Generated Income was mainly due to the
significant increase in Tuition Fees – College share from GH¢265,630
in 2008 to GH¢642,306 in 2009. Comparative figures for the two
years are provided in Table 31 as follows:
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 107 Other Statutory Institutions for the period ended 31 December
Table 31: Income Statement for 2009
Income
2009
GH¢
2008
GH¢
%
Change
Subvention and Grants 749,100 716,754 4.5
Internally Generated Income 697,519 337,324 106.8
1,446,619 1,054,077 37.2
Expenditure
Personnel Emolument 919,673 633,523 45.2
General and Administrative
Expenses
347,688 356,108 (2.4)
Finance Charges 4,631 2,497 85.5
Procurement of Fixed Assets 25,813 23,531 9.7
1,297,805 1,015,659 27.8
Surplus/(Deficit) 148,814 38,418 287.4
498. Total Expenditure for the year under review also increased by
27.8% from GH¢1,015,659 in 2008 to GH¢1,297,805 in 2009. The
increase was mainly due to significant increases in personnel
emoluments, finance charges and procurement of fixed assets.
Personnel Emoluments which rose by 45.2% was mainly due to
increase in salaries and allowances from GH¢590,520 in 2008 to
GH¢860,086 in 2009 or a rise of 45.6%.
499. The Central Administration recorded a surplus of GH¢148,814
for 2009 as against GH¢38,418 registered in 2008, representing an
increase of 287.4%.
Financial Position
500. Table 32 provides the financial position of the University for
the year under review.
Table 32: Balance sheet as at 31 December 2009
2009
GH¢
2008
GH¢
%
Change
Current Assets 547,999 209,114 162.1
Current Liabilities 323,438 206,338 56.8
Net Assets 224,562 2,776 7,990.8
Current Ratio 1.7:1 1.0:1
108 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
501. Current Assets increased by 162.1% from GH¢209,114 in 2008
to GH¢547,999 in 2009. The increase in Current Assets was mainly
due to the 246.9% increase in Cash and Bank balance at the year-end.
502. Current Liabilities also increased by 56.8% from GH¢206,338
in 2008 to GH¢323,438 in 2009. This was largely due to significant
rise in the accounts payable.
503. The Current ratio measuring the liquidity position of the
University was 1.7:1 in 2009 against 1.0:1 in 2008. As a result, the
University would be unable to meet its short term obligation as and
when they fall due.
SCHOOL OF ALLIED HEALTH SCIENCES
COLLEGE OF HEALTH SCIENCES
UNIVERSITY OF GHANA
Introduction
504. This report relates to the audited accounts of the School of
Allied Health Sciences – College of Health Sciences, University of
Ghana for the year ended 31 December 2009.
Operational results
505. The operational results for the period under review are shown
in Table 33.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 109 Other Statutory Institutions for the period ended 31 December
Table 33: Income statement for 2009
Income 2009
GH¢
2008
GH¢
%
Change
Subvention & Grant 1,655,931 1,378,909 20.1
Internally Generated Fund 487,300 311,823 56.3
Total Income 2,143,231 1,690,732 26.8
Expenditure
Personnel Emoluments 1,299,434 965,529 34.6
Gen. & Admin. Expenses 445,972 418,247 6.6
Financial Charges 7,730 5,094 51.7
Procurement of Fixed Assets 198,455 42,539 336.5
Total Expenditure 1,951,591 1,431,417 36.3
Surplus 191,640 259,314 (26.1)
506. Total Income rose by 26.8% from GH¢1,690,732 in 2008 to
GH¢2,143,231 in 2009. The rise was largely due to a 56.3% increase
in Internally Generated Fund (IGF). Revenue items which contributed
significantly to increase in IGF include students Registrations, Interest
on saving, Income on Investment and Residential Facility User Fee.
Grants for Personnel Emoluments and Subvention for Service
Activities accounted for the increase in Subvention and Grants.
507. Total Expenditure also registered a 36.3% rise from
GH¢1,431,417 in 2008 to GH¢1,951,591 in 2009. This was largely
due to a 336.5% increase in Procurement of Fixed Assets. Significant
increases in the purchase of office equipment and Motor Vehicle
contributed to the rise in procurement.
508. The year ended with a surplus of GH¢191,640 as against
GH¢259,314 recorded in 2008, showing a drop of 26.1%.
Financial Position
509. The details of the financial position are shown in Table 34.
110 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 34: Balance sheet as at 31 December 2009
2009
GH¢
2008
GH¢
%
Change
Current Assets 1,147,573 827,686 38.6
Current Liabilities 88,244 91,338 (3.4)
Net Current Assets 1,059,329 736,348 43.9
Current Ratio 13.0:1 9.1:1
510. Current Assets increased by 38.6% from GH¢827,686 in 2008
to GH¢1,147,573 in 2009. This was due to a 1330.1% and 54.9% rise
in Investments and Accounts Receivables respectively.
511. Current Liabilities on the other hand decreased by 3.4% to
GH¢88,244 in 2009 from GH¢91,338 in 2008. Reduction in the
Provision for Part-time Lectureship and Provision for Audit Fees
accounted for the fall.
512. The liquidity position of the School as depicted by an increase
in the current ratio of 13.0:1 (2008: 9.1:1) showed that the School has
enough resources to meet its short-term debts when they fall due.
SCHOOL OF NURSING – COLLEGE OF HEALTH
SCIENCES, UNIVERSITY OF GHANA
Introduction
513. This report relates to the audited accounts of the School of
Nursing-College of Health Sciences of the University of Ghana for the
year ended 31 December 2009.
Operational Results
514. Details of the performance indicators are provided in Table 35.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 111 Other Statutory Institutions for the period ended 31 December
Table 35: Income statement for 2009
Income 2009
GH¢
2008
GH¢
%
Change
Subvention & Grants 510,026 559,918 (8.9)
Internally Generated Fund 894,650 647,733 38.1
Total Income 1,404,676 1,207,651 16.3
Expenditure
Personnel Emoluments 459,734 548,918 (16.2)
Gen. & Administrative Expenses 791,992 552,779 43.3
Financial Charges 2,606 3,493 (25.4)
Procurement of Non-Current Assets 30,913 14,568 112.2
Total Expenditure 1,285,245 1,119,758 14.8
Surplus 119,431 87,893 35.9
515. Total Income rose by 16.3% from GH¢1,207,651 in 2008 to
GH¢1,404,676 in 2009. Subvention and Grants accounted for 36.3%
of total income for the year while Internally Generated Fund (IGF)
accounted for 63.7%. The fall in Subvention was attributed to
decreases in receipts for Personnel Emolument and Administrative
and Service Activities. Internally Generated Fund on the other hand
went up mainly because of increases in receipt of Students Fees, Hire
of Bus, College Infrastructural Development Levy, Technology
Services, Medical Services and Seminar & Workshop Levy.
516. Total Expenditure also increased by 14.8% from
GH¢1,119,758 in 2008 to GH¢1,285,244 in 2009. The increase was
due mainly to a 43.3% rise in General and Administrative Expenses
and 112.2% rise in Procurement of Non-Current Assets. Prominent
amongst the contributors to the rise in General and Administrative
Expenses were payment made to the University of Ghana,
Tuition/Student Fees Refund and Honorarium Expense.
517. The operations of the School ended with a surplus of
GH¢119,431 (2008: GH¢87,893) a rise of 35.5% over that of the
previous year.
112 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial Position
518. Shown in Table 36 is the financial position as at 31 December
2009.
Table 36: Balance Sheet as at 31 December 2009
Item 2009
GH¢
2008
GH¢
%
Change
Current Assets 594,230 540,057 10.0
Current Liabilities 46,268 111,526 (58.5)
Net Current Assets 547,962 428,531 27.9
Current Ratio 12.8:1 4.8:1
519. Current Assets increased by 10.0% from GH¢540,057 in 2008
to GH¢594,230 in 2009. This was due to a 14.3% and 50.4% increase
in Cash and Bank balances and Accounts Receivable respectively.
520. Current Liabilities made up of only Account Payables
decreased by 58.5% from GH¢111,526 in 2008 to GH¢46,268 in
2009.
521. The School recorded a current ratio of 12.8:1 (2008: 4.8:1)
indicating its ability to meet its short-term obligations as and when
they fall due.
DENTAL SCHOOL - COLLEGE OF HEALTH SCIENCES,
UNIVERSITY OF GHANA
Introduction
522. This report covers the audited accounts of the University of
Ghana Dental School – College of Health Sciences for the year ended
31 December 2009
Operational results
523. The summary of the Dental School’s operations for the period
under review is provided in Table 37.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 113 Other Statutory Institutions for the period ended 31 December
Table 37: Performance indicators for 2009
Income
2009
GH¢
2008
GH¢
%
Change
Subvention &Grant 1,093,790 1,158,207 (5.6)
Internally Generated Fund 900,652 660,859 36.3
Total Income 1,994,442 1,819,066 9.6
Expenditure
Personnel Emolument 1,274,683 1,131,851 12.6
Gen. & Admin. Expenses 461,566 498,571 (7.4)
Finance Charges 5,845 4,599 27.1
Procurement of Fixed Assets 197,585 42,756 362.1
Total Expenditure 1,939,679 1,677,777 15.6
Surplus 54,763 141,289 (61.2)
524. Total Income for the period increased by 9.6% from
GH¢1,819,066 in 2008 to GH¢1,994,442 in 2009. This was mainly
due to a 36.3% rise in Internally Generated Fund. The increase in IGF
was largely due to increases in Clinic Receipts, Miscellaneous
Receipts, Students Fees and Faculty Practice.
525. Total Expenditure went up by 15.6% from GH¢1,677,777 in
2008 to GH¢1,939,679 in 2009. The increase was mainly due to a
12.6% rise in Personnel Emoluments and 27.1% increase in Finance
Charges. The increases in Salaries and Allowances and Book and
Research Grant accounted for the rise in Personnel Emoluments.
General and Administrative Expenses on the other hand fell by 7.4%
due to reductions in Repairs and Maintenance of Vehicle and
Examination Expenses.
526. The operational result for the period closed with a surplus of
GH¢54,763, showing a fall of 61.2% over the previous figure.
Financial Position
527. Table 38 shows the financial position of the School as at 31
December 2009.
114 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 38: Balance sheet as at 31 December 2009
2009
GH¢
2008
GH¢
%
Charges
Current Assets 444,300 390,043 13.9
Current Liabilities 52,552 53,190 (1.2)
Net Current Assets 391,748 336,853 16.3
Current Ratio 8.5:1 7.3:1
528. Current Assets increased by 13.9% from GH¢390,043 in 2008
to GH¢444,300 in 2009. This was as a result of 19.9% rise in Cash
and Bank Balances.
529. Current Liabilities decreased by 1.2% from GH¢53,190 in
2008 to GH¢52,552 in 2009. This was as a result of full settlement of
indebtedness’ to Ghana Medical and Dental Council.
530. The current ratio of 8.5: 1 (2008; 7.3:1) showed the School is
solvent and can meet its short term obligations when they fall due.
NOGUCHI MEMORIAL INSTITUTE FOR MEDICAL
RESEARCH - COLLEGE OF HEALTH SCIENCES,
UNIVERSITY OF GHANA
Introduction
531. This report relates to the audited accounts of Noguchi
Memorial Institute for Medical Research for the year ended
31December 2009.
Operational results
532. Details of the performance indicators are provided in Table 39.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 115 Other Statutory Institutions for the period ended 31 December
Table 39: Income statement for 2009
Income
2009
GH¢
2008
GH¢
%
Charge
Subvention & Grants 2,492,697 2,400,306 3.8
Internally Generated Fund 450,186 385,857 16.7
Other Income 108,740 32,031 239.5
Total Income 3,051,623 2,818,194 8.3
Expenditure
Personnel Emoluments 2,323,019 2,099,954 10.6
Gen. & Admin. Expenses 626,303 460,285 36.1
Financial Charges 2,237 4,461 (49.8)
Procurement of Fixed Assets 113,951 121,877 (6.5)
Total Expenditure 3,065,510 2,686,577 14.1
(Deficit)/Surplus (13,887) 131,617 (110.6)
533. Total Income rose by 8.3% from GH¢2,818,194 in 2008 to
GH¢3,051,623 in 2009. This change was due mainly to a 239.5% rise
in Other Income. The significant increase in receipts from Interest on
Investments and Donations accounted for the rise in Other Income.
Receipts from Parasitology test, Institutional charges, Consultancy
Fee and Hire of Bus caused the rise in IGF.
534. Total expenditure went up by 14.1% from GH¢2,686,577 in
2008 to GH¢3,065,510 in 2009. The change was due to increases in
Personnel Emoluments and General and Administrative Expenses.
These elements constituted 75.8% and 54.9% respectively to Total
Expenditure.
535. The operations of the Institute ended with a deficit of
GH¢13,887 as against a Surplus of GH¢131,617 recorded in 2008.
Financial Position
536. Table 40 shows the financial position of the Institute as at 31
December 2009.
116 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 40: Balance Sheet as at 31 December 2009.
Item 2009
GH¢
2008
GH¢
%
Change
Current Assets 3,688,170 3,709,758 (1.0)
Current Liabilities 3,449,915 3,457,615 (0.2)
Net Current Assets 238,255 252,143 (5.5)
Current Ratio 1.1:1 1.1;1
537. Current Assets dropped by 1 % from GH¢3,709,758 in 2008 to
GH¢3,688,170 in 2009. This was due to decreases in Bank and Cash
Balances and Investments.
538. Current Liabilities also fell by 0.2% from GH¢3,457,615 in
2008 to GH¢3,449,915 in 2009. Reduction in Grant Balances
accounted for the fall.
539. The liquidity position of the Institute as depicted by a current
ratio of 1.1:1 for the period was unhealthy. This implied that the
Institute could barely meet its short-term obligations as and when they
fall due.
KWAME NKRUMAH UNIVERSITY OF SCIENCE
AND TECHNOLOGY
Introduction
540. This report relates to the consolidated audited financial
statements of the Kwame Nkrumah University of Science and
Technology for the year ended 31 December, 2010.
Operational results
541. Total income for the year increased by 44.8% from
GH¢73,190,468 in 2009 to GH¢105,992,628 in 2010. This was due to
a 45.3% rise in Income from Regular Sources as well as a 39.8% rise
in miscellaneous Income. The rise in Income from Regular sources
was largely due to increases in income from Main KNUST operations
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 117 Other Statutory Institutions for the period ended 31 December
from GH¢54,054,943 in 2009 to GH¢79,058,484 in 2010. Income
from Institute of Distance Learning also contributed GH¢7,396,602
this year as no revenue was generated in the previous year by the Unit.
The rise in miscellaneous Income was largely due to increases in fees
from hospital and revenue from KNUST Guest House of 11% and
100% respectively.
542. The components of income and expenditure for the period are
shown in Table 41.
Table 41: Consolidated Income statement for 2010 Income 2010
GH¢
2009
GH¢
%
Change
Income from Regular Sources 97,146,945 66,861,797 45.3
Miscellaneous Income 8,845,683 6,328,671 39.8
105,992,628 73,190,468 44.8
Expenditure
Teaching Faculties 47,019,849 32,956,177 42.7
Research & Outreach 1,135,308 982,675 15.5
General Education Expenses 7,896,420 7,320,613 7.9
Library Expenses 985,311 806,832 22.1
Central Administration 5,346,243 3,611,023 48.1
Staff/Students Faculties 11,030,493 7,086,698 55.7
Municipal Services 10,037,677 7,144,755 40.5
Miscellaneous 1,669,658 1,071,404 55.8
Depreciation 1,958,363 1,453,157 34.8
7,079,322 62,433,334 39.5
Excess Income/Deficit/Over
Expenditure
18,913,306
10,757,134
75.8
543. Total Expenditure for the year under review amounted to
GH¢87,079,322 as against GH¢62,433,334 recorded in 2009, an
increase of 39.5% over the previous year’s expenditure.
544. The increase was mainly due to expenditure increase in
Teaching Faculties by 42.7%; Central administration by 48.1%, staff
and student facilities by 55.7% municipal services and miscellaneous
by 40.5% and 55.8% respectively. The increases in expenses on
118 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
College of Engineering, College of Art and Social Science, College of
Health Science; College of Agric & Natural Resources and Institute of
Distance Learning largely accounted for the rise in Teaching Faculties
expenses. The increase in expense on hospital largely accounted for
increase in staff and student faculties expenses. High costs of
expenses on electricity, sewerages & water system accounted for the
increases in municipal services.
545. The operational results for the period closed with a surplus of
GH¢18,913,306 as compared with GH¢10,757,134 recorded in 2009,
thereby showing a 75.8% increase.
Financial position
546. Presented in Table 42 is the Consolidated financial position of
the University as at 31 December, 2010.
Table 42: Consolidated financial position as at 31 December 2010
2009
GH¢
2008
GH¢
%
Change
Non-Current Assets 19,374,855 13,904,361 39.4
Current Assets 41,581,536 24,783,244 67.8
Current Liabilities 17,030,430 15,286,211 11.4
Net Assets 43,925,961 23,401,394 87.7
Current Ratio 2.4:1 1.6:1
547. Non-Current assets which stood at GH¢13,904,361 in 2009
went up to GH¢19,374,855 in 2010, an increase of 39.4%. The
increase was due to a 34% rise in property, plant and equipment. The
investment which was GH¢47,025 in 2009, rose significantly to
GH¢712,763, an increase of 1,416%.
548. Current Assets increased by 67.8% from GH¢24,783,244 in
2009 to GH¢41,581,536 in 2010. This was as a result of increases in
short-term investments from GH¢5,931,644 in 2009 to
GH¢15,941,792 in 2010 and inter-department Account Debits from
GH¢144,695 in 2009 to GH¢5,939,680 in 2010.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 119 Other Statutory Institutions for the period ended 31 December
549. Current Liabilities also increased by 11.4% from
GH¢15,286,211 in 2009 to GH¢17,030,430 in 2010. The increase in
accruals and other credit balances from GH¢590,892 in 2009 to
GH¢2,422,189 in 2010 accounted for the variation.
550. The University recorded a current ratio of 2.4:1 (2009: 1.6:1).
This shows that the University can meet its short term obligations
when they fall due.
MANAGEMENT ISSUES
College of Art and Social Science
Special Advances not accounted for – GH¢41,724.09
551. Examinations of the general ledger and special advance
registers of the College revealed that a total of GH¢41,724.09
advanced to members of staff of various faculties to organize specific
programs had not been accounted for. Details are shown below:
S/No. Year Faculty No. of staff
holding adv.
Amount
GH¢
1 2007 Design Press 1 100.00
2 2008 Art 9 7,126.94
3 2008 Design Press 3 4,522.00
4 2008 Business School 3 16,179,85
5 2008 Business School 1 1,400.00
6 2008 Art 10 12,395.30
41,724.09
552. The practice contravened regulation 288(2) of the FAR which
provides that imprest issued for making a particular payment must be
fully retired by the date specified in the approval to operate the
imprest.
553. The irregularity was caused by management’s failure to
establish procedures for the prompt retirement of the imprest.
554. As a result, we were unable to determine whether the funds
released were spent as required.
120 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
555. We therefore advised management to ensure that, efforts are
made to get officers concerned to account for the advances and/or be
adjusted to their personal account as stipulated in the aforementioned
regulation.
556. Management responded that the special advances mentioned
will be investigated.
Loans of GH¢1,885.00 to Students’ Representative Council
557. We noted that loans totalling GH¢1,885.00 were granted to the
Students’ Representative Council (SRC) at the Provost’s office and no
effort was made for the repayment of the loan. Details are shown
below:
PV No. 217 of 10/01/2010 GH¢ 885.00
PV NO. 327 of 31/08/2010 GH¢ 1,000.00
GH¢1,885.00
558. The possibility of incoming SRCs objecting to the repayment
cannot be ruled out if proper records are not maintained.
559. We therefore advised management to retrieve the amount from
the SRC. Management responded that, it will investigate the issue
raised.
Staff and Students - University Hospital
Large Quantities of expired drugs at Hospital Premises
560. We noted that the hospital had 118 pieces of unserviceable
items and large quantities of expired drugs at its premises. A letter
signed by the Director of the Hospital and dated 12 April 2010 was
addressed to the Registrar of the University requesting a Board of
Survey to dispose of the unserviceable items and the expired drugs.
As at October 2011, when the audit team visited the hospital, the
items were still at the premises causing congestion at the hospital. The
omission was because the University authorities had not given the
situation the needed attention.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 121 Other Statutory Institutions for the period ended 31 December
561. We recommended that a board of survey as matter of urgency,
is constituted to destroy or dispose of these items.
562. Management in response stated that a board of survey is yet to
be constituted to destroy these items.
Basic schools
Distribution list for exercise books purchased not provided
563. We noted that, an amount of GH¢40,400.00 was used to buy
assorted exercise books from the University Printing Press to be
distributed to the basic schools. Our request for the list as to how the
distribution was made to the pupils in the primary school proved
futile.
564. We could therefore not confirm whether the exercise books had
been used for their intended purposes.
565. This lapse was as a result of management’s failure to ensure
that procedures established for the printing, storage and distribution of
the books were followed.
566. We recommended that in future management should ensure
that the items are received into stores and proper records maintained
on them to avert reoccurrence.
567. In response, management said that it will investigate the issue
and take the necessary corrective measures.
GHANA INSTITUTE OF MANAGEMENT AND PUBLIC
ADMINISTRATION (GIMPA)
Introduction
568. This report is related to the audited accounts of Ghana Institute
of Management and Public Administration (GIMPA) for the year
ended 31 December 2011.
122 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Operational results
569. Total Income went up by 23.1% from GH¢23,402,868 in 2010
to GH¢28,813,926 in 2011. The increase was due to a rise in all the
revenue components of the Institute, comprising Business School,
(51.9%), Other Schools (16.4%) and Other Sources (31.7%). The
major Components that contributed to the increase were receipts from
Greenhill College, Graduate Unit, School of Governance and
Leadership, Law School, Consultancy Services and Hospitality
Services.
570. Total Expenditure of the Institute rose by 31.6% from
GH¢20,548,079 in 2010 to GH¢27,036,998 in 2011. This was
attributed mainly to a 29.0% rise in Personnel Emoluments, 41.7%
increase in Administrative and General Expenses and a rise of 36.2%
in Repairs and Maintenance. Increase in Salary and Allowances
accounted for the rise in Personnel Emoluments whilst Electricity
Expenses and Printing and Stationery largely accounted for the
increase in Administrative and General Expenses.
571. Table 43 presents sumarised income and expenditure
statements for 2011 and 2010.
Table 43: Income Statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Income 28,813,926 23,402,868 23.1
Expenditure
Personnel Emoluments 11,387,788 8,827,297 29.0
Operating Expenses 6,949,817 5,463,703 27.2
Adm. & General Expenses 6,561,659 4,631,385 41.7
Travelling & Transport 638,870 524,947 21.7
Repairs & Maintenance 1,498,864 1,100,747 36.2
Total Expenditure 27,036,998 20,548,079 31.6
Surplus/ (Deficit) 1,776,928 2,854,789 (37.8)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 123 Other Statutory Institutions for the period ended 31 December
572. The Institute recorded a surplus of GH¢1,776,928 for the year
under review as against GH¢2,854,789 in 2010 showing a 37.8% fall.
Financial Position
573. Presented in Table 44 are the movements in the financial
positions for the two Comparative years.
Table 44: Balance Sheet as at 31 December 2011 2011
GH¢ 2010 GH¢
% Change
Non – Current Assets 15,486,915 11,624,352 33.2
Current Assets 9,071,157 8,186,316 10.8
Current Liabilities 5,350,421 4,746,325 12.7
Non – Current Liabilities 1,345,813 32,199 4,079.7
Net Current Assets 3,720,736 3,439,991 8.2
Net Assets 19,207,651 15,064,343 27.5
Current Ratio 1.7:1 1.7:1
574. Non-Current Assets increased by 33.2% from GH¢11,624,352
in 2010 to GH¢15,486,915 in 2011. This was due to a 36.9% increase
in Property, Plant, and Equipment resulting from acquisitions and
11.1% increase in Long Term Investment.
575. Current Assets rose by 10.8% from GH¢8,186,316 in 2010 to
GH¢9,071,157 in 2011. This resulted from increases in Debtors and
Prepayments and Short Term Investment.
576. Current liabilities registered an increase of 12.7% from
GH¢4,746,325 in 2010 to GH¢5,350,421 in the year reviewed.
Increase in prepaid academic fees resulted in the upward trend.
577. The Institute’s Current ratio of 1.7:1 (2010:1.7:1) fell below the
benchmark of 2:1 thus indicating its inability to meet its short term
obligations when they fall due.
MANAGEMNET ISSUES
Bank Accounts
578. During the years under review the Institute opened four new
bank accounts with various banks without the Council’s authorization.
124 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
579. We commented on the number of bank accounts maintained by
the Institute in our previous management letter but the situation had
not improved. As at 31 December 2011 the Institute was operating 41
bank accounts. There were as many as five current accounts with one
branch of a bank and the purpose for which some of the bank accounts
were opened could not be justified. The numerous bank accounts
maintained appear to be more than needed to operate the business of
the school effectively. We also noted several instances where bank
reconciliation statements had not been prepared on timely basis.
580. We recommended that Council’s approval should be sought
before new bank accounts are opened. Additionally, a thorough
review of the number of bank accounts operated by the Institute
should be undertaken with a view to reducing the number. To deal
promptly with errors on bank transactions, reconciliation statements
must be prepared monthly.
581. Management indicated it is seeking Council’s ratification in
respect of the opening of new bank accounts and added that nineteen
(19) of the bank accounts have been closed in 2012.
GIMPA EXECUTIVE CONFERENCE CENTRE (GECC)
Debtors - GH¢31,438
582. At the end of the year 2011, the amount of debts outstanding
was GH¢31,438. As at the time of reporting GH¢26,055 had been
paid leaving a balance of GH¢5,383. Long outstanding debts might be
difficult to recover and this situation was attributed to the failure of
management to put in place debt recovery measures.
583. We recommended that Management should institute a credit
policy for its clients which should be strictly adhered to.
584. Management responded that the debt has further reduced to
GH¢3,862 and efforts are being made to collect the outstanding
amount.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 125 Other Statutory Institutions for the period ended 31 December
ACCRA POLYTECHNIC
Introduction
585. This report is in relation to the audited accounts of Accra
Polytechnic for the year ended 31 December 2011.
Operational results
586. Total income registered an increase of 39.4% from
GH¢8,992,594.83 in 2010 to GH¢12,538,448.07 in 2011. Government
Subvention which accounted for 70.6% or GH¢7,351,202.78 of total
income in the year under review increased by 43.1%. The remainder
consisted of Internally Generated Fund (IGF) which rose by 34.6%
from GH¢3,853,630.05 in 2010 to GH¢5,187,245.29 in 2011. The rise
was mainly due to increase in receipts from Tuition Fees, Hostel Fees,
Internal Examination Fees and Part-time Programmes. Presented in
Table 45 are the performance indicators.
Table 45: Income statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Government Subvention 7,351,202.78 5,138,964.78 43.1
Internally Generated Fund 5,187,245.29 3,853,630.05 34.6
Total 12,538,448.07 8,992,594.83 39.4
Expenses
Personnel Emoluments 7,721,928.41 5,123,257.21 50.7
Administration Activity
Expenses 1,532,752.07 1,200,169.64 27.7
Service Activity Expenses 2,737,503.26 2,298,366.95 19.1
Total 11,992,182.74 8,621,793.80 39.1
Excess of
Income/Expenditure
546,265.33
370,801.03 47.3
587. Expenditure incurred in 2011 totaled GH¢11,992,182.74 as
against GH¢8,621,793.80 in the previous year; representing an
increase of 39.1%. The expenditure component included Personnel
Emoluments of GH¢7,721,928.41 (2010: GH¢5,123,257.21)
representing 64.4% of total expenditure in 2011 which increased by
50.7%, accounting largely for the rise in total expenditure. The rise in
126 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Personnel Emoluments was mainly as a result of increase in salaries as
well as Book and Research Allowance of workers in 2011. Service
Activity Expenditure registered GH¢2,737,503.26 in 2011 (2010:
GH¢2,298,366.95); representing a rise of 19.1%. This was due to
increase in payments for Night Allowance, Admission Expenses, Staff
Development Cost, Examination Expenses and Repairs and
Maintenance of Buildings including the Hostel block.
588. Administration Activity Expenditure in 2011 amounted to
GH¢1,532,751.07 (2010: GH¢1,200,169.64), representing an increase
of 27.7%. Increase in Maintenance of Equipment, Machinery and
Plant, Local Tuition fees, Sub Council Expenses, Foreign Travel Cost
and Fuel and Lubricants cost contributed to the rise in Administration
Expenditure.
589. Operational Surplus of GH¢546,265.33 was realized during the
year, compared with GH¢370,801.03 recorded in the preceding year,
which showed an increase of 47.3%.
Financial position
590. The Institute’s non-current assets represented by fixed assets
and building work -in-progress registered GH¢12,947,535.82 in 2011
compared with GH¢12,286,747.12 in 2010, a growth of 5.4%. The
increase in non-current assets resulted mainly from addition to Land
and Building, Computers, Projectors and Accessories, Motor Vehicles
and Plant, Machines & Equipments in 2011.
591. Current assets appreciated from GH¢7,101,178.43 in 2010 to
GH¢7,293,025.94 in 2011, representing an increase of 2.7%. This
resulted from an increase of 21.3% in the cash in hand and bank
balance.
592. Liquidity outlook as portrayed by a current ratio of 0.5:1 (2010:
1.1:1) fell below the standard requirement of 2:1 indicating that, the
School would not be able to meet its current obligations as and when
they fell due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 127 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Unearned salaries - GH¢3,035.44
593. Regulation 298(3b) of the FAR , 2004 mandates the head of a
public institution to cause the immediate stoppage of payment of
salary of separated staff by notifying the bank to repay into the
Consolidated Fund any salary or other payments credited to a public
servant’s bank account when he or she becomes a separated staff.
594. We noted that an officer, Emmanuel Adu Gyamfi who resigned
on 1 August 2011 had his name deleted from the payroll on 1 January
2012, a delay of five months, resulting in the payment of
GH¢3,035.44 in unearned salaries.
595. Management’s failure to promptly notify the bank to repay the
salary credited to the former staff into the Consolidated Fund in
accordance with FAR 298(3b) contributed to the anomaly.
Management’s inaction could result in the loss of GH¢3,035.44 to the
state.
596. We recommended that efforts be made by management to
recover the amount, pay same to Government chest and obtain a
Treasury Receipt for our verification. We also urged management to
promptly notify the bankers of successive separated staff to place an
embargo on their salaries and transfer same into the Consolidated
Fund.
597. Management in response stated that the salary arrears due the
officer, which amounted to GH¢3,800.65 would be used in defraying
the erroneous salaries paid him.
Failure of sponsored staff to serve bond - GH¢109,559.32
598. To ensure that an Institution is not deprived the benefit of
investing in the building of its human resource capacity, officers
granted study leave with pay to pursue courses must be bonded.
599. Article 15.6 of the Conditions of Service (CoS) for senior staff
and senior members of Polytechnic Teachers Association of Ghana
128 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
(POTAG) dated 1 June 2006 provides that beneficiary staff on
approved study leave must be bonded to serve the school for five
years on completion of their course. The CoS further provides that
beneficiaries who fail to serve their bond should be made to refund all
salary and any benefits enjoyed whiles on study leave with pay.
600. We observed that two officers who were sponsored by the
Polytechnic to pursue further studies failed to serve the required five
years bond term before leaving the School. The officers also failed to
refund a total amount of GH¢109,559.32 paid them as salaries and
allowances while studying.
601. We observed that the defaulting staff failed to perform their
part of the agreement, in spite of several efforts by management to
enforce the terms of the bond. Their failure to serve the bond
adversely affected the human resource capacity and financial
resources of the School.
602. We recommended and management accepted to intensify
efforts to recover the amount of GH¢109,559.32 from the two
separated staff or their guarantors.
NATIONAL SERVICE SECRETARIAT
Introduction
603. This report relates to the audited accounts of the National
Service Secretariat for the period 1 January 2009 to 31 December
2011.
Operational results
604. The National Service Secretariat (NSS) ended its operations for
the year 2011 with a surplus of GH¢30.20 million as against the
previous year’s surplus of GH¢21.12 million representing an increase
of GH¢9.08 million or 43.0%. The increase in surplus was as a result
of decline in expenditure of 6.0%. The main performance indicators of
the last two years are shown in Table 46.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 129 Other Statutory Institutions for the period ended 31 December
Table 46: Comparative income statement for 2011 and 2010
Income 2011
GH¢
2010
GH¢
%
Change
Government
Subvention
154,448,649.89 154,589,536.64 (0.1)
Internally
Generated Fund
2,915,549.57 1,916,997.93 52.1
Other Income 197,284.90 108,760.56 81.4
Overpayment
Recovery
279,135.90 258,292.96 8.1
Total Income 157,840,620.26 156,873,588.09 0.6
Expenditure
Personal
Emolument
11,787.45 2,491,248.10 (99.5)
National Service
Allowance
124,254,838.78 130,351,231.08 (4.7)
Administrative
Expenses
1,520,435.74 1,762,554.37 (13.7)
Service Expenses 1,203,822.75 829,139.10 45.2
Other payments 129,742.51 21,250.05 510.6
Depreciation 522,100.33 295,258.63 76.8
Total
Expenditure
127,642,727.56 135,750,681.33 (6.0)
Surplus/Deficit 30,197,892.70 21,122,906.76 43.0
605. Total income for 2011 rose by GH¢0.97 million, from
GH¢156.87 million in 2010 to GH¢157.84 million due to increase in
Internally Generated Fund by GH¢1.0 million or 52.1%. The rise in
IGF was due to increase in service charge and sale of farm produce.
606. Total expenditure also decreased by GH¢8.11 million or 5.9%,
from GH¢135.75 million in 2010 to GH¢127.64 million in 2011. The
decrease was mainly due to decline in both personnel emoluments
(NSS was migrated onto the Controller and Accountant General’s
mechanized payroll during 2011 financial year) and National Service
Allowance, which also saw a reduction in the number of volunteers
deployed.
130 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial Position
607. The overall financial position of the Secretariat showed a
downward movement in the net assets from GH¢34.62 million in
2010 to GH¢15.55 million in 2011. Presented in Table 47 is the
financial position of the Secretariat as at 31 December 2011.
Table 47: Balance sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non Current Assets 4,461,183.09 3,333,123.73 33.8
Current Assets 61,310,180.89 31,359,200.66 95.5
Current Liabilities 50,224,616.17 72,650.34 69,032.0
Net Current Assets 11,085,564.72 31,286,550.32 (64.6)
Net Assets 15,546,747.81 34,619,674.05 (55.1)
Current Ratio 1.22:1 431.64:1
608. Non-Current Assets increased by 33.8% from GH¢3.33 million
in 2010 to GH¢4.46 million in 2011. The increase was due to
acquisition of bungalows, office equipments and vehicles.
609. Current Assets registered an increase of 95.5% from GH¢31.36
million in 2010 to GH¢61.31 million in 2011. The sharp rise in cash at
Bank contributed significantly to the increase in current assets.
610. Current Liabilities also rose by GH¢50.15 million, or
69,032.0%, from GH¢72.6 thousand in 2010 to GH¢50.22 million in
2011. The increase was attributed to accumulation of overpayment
recoveries yet to be remitted to the Controller and Accountant-General
(Consolidated Fund). We observed that the Secretariat was not
recognizing the accumulated overpayment recoveries as a liability. At
the instance of the audit team this was corrected to reflect the true
position, hence the sharp rise in the current liabilities.
611. The liquidity position of NSS is indicated by a current ratio of
1.2:1 for 2011 as compared with 431.64:1 the previous year, shows
that short term obligations cannot be met when they fall due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 131 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Failure to return overpayment recoveries to chest
612. Regulation 45 of FAR 2004 states that “If any expenditure is
made in excess of amounts actually due, the overpayment shall be
recovered immediately and paid into the accounts from which it was
originally paid and the officer concerned shall report the circumstance
immediately to the head of department or the appropriate authority”.
613. Our scrutiny disclosed that during the 2009/2010 and
2010/2011 service years, amounts of GH¢129,590,611.80 and
GH¢182,541,407.38 were estimated and released to the Secretariat to
pay National Voluntary Service Personnel (NVSP) and National
Service Personnel (NSP) allowances respectively. We however
observed that a total amount of GH¢111,693,180.97 and
GH¢151,228,318.81 were utilized ¢for the respective periods out of
the amounts released, leaving a balance of GH¢17,897,430.83 and
GH¢31,313,088.57 for the same period.
614. We also noted that over payment recoveries amounting to
GH469,228.65 returned from the regions to the National Service
Head Office during the years reviewed, which should have been paid
to chest were also kept in the Secretariat’s account.
615. We further observed that as at 31 December, 2011, the
Secretariat Personnel Account balance stood at GH¢60,881,536.58,
which included the accumulated overpayment recoveries amounting to
GH¢49,679,748.05 over the periods yet to be refunded into chest.
616. The above situation was made possible because management
failed to adhere to the above stated regulation. By this action, the
Secretariat denied the Government of the needed funds for other
developmental and financial commitment.
617. We recommended that the amount of GH¢49,679,748.05, being
over payment recoveries should be paid to chest without further delay.
618. At the instance of the audit, a request was made to C&AG for
an account number for payment of the excess funds.
132 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Unpresented payment vouchers - GH¢1,314,173.01
619. Contrary to Section 16 of the FAA 2003, Act 654, we did not
cite payment vouchers totalling GH¢1,314,173.01. The above
irregularity was attributed to making payments before raising the
necessary vouchers, the inability to properly preserve paid vouchers or
payments made without raising voucher.
620. Payments not supported by duly authorised payment vouchers
deny assurance of regularity of disbursements made. The omission
could give rise to fictitious expenditure and provide opportunity for
abuse.
621. We recommended that management produces the payment
vouchers for our examination, failure which the payments will be
disallowed and the Accountant and Head of Department being
signatories to the Scheme’s account, surcharged with the total amount
involved.
622. Management responded that it had retrieved the payment
vouchers for our inspection. However, a follow up indicated that the
payment vouchers were all not made available. Vouchers that were
not presented for audit totalled GH¢1,314,173.01.
623. We reiterated that strenuous effort should be made to provide
the P.Vs for inspection or the Accountant and the Head of Department
held accountable for the unpresented payment vouchers.
Unacquitted payment vouchers GH¢ 218,074.78
624. Regulation 39(1) and (2) of the FAR, 2004 states among
others, a head of department shall ensure that monies are utilised in a
manner that secures both optimum value for money and the intention
of Parliament. The head of the accounts section of a department shall
control the disbursements of funds to ensure that:
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 133 Other Statutory Institutions for the period ended 31 December
a. The officer ordering disbursements is authorised to do
so;
b. Orders are made within the powers of and the funds
available to the officer ordering disbursements; and
c. Transactions are properly authenticated to show that
amounts are due and payable.
625. On the contrary, our examination of payment vouchers for the
period under review disclosed that management failed to adhere to the
tenets of the above regulation. Our examination revealed that out of a
total of 41 payment vouchers totalling GH¢271,055.33 supporting
documents attached to acquit the payments totalled GH¢52,980.55
resulting in a shortfall of GH¢218,074.78.
626. This situation occurred because the head of Accounts and the
Authorising Officer did not exercise due care by ensuring that, the
payment vouchers were properly acquitted.
627. The absence of valid receipts and other relevant documents to
authenticate payments cast doubt on the genuineness of the
transaction. The above lapse has a high risk of abuse through the
perpetuation of fictitious payments.
628. We therefore recommended that the Authorising Officer and
Accountant should ensure that the supporting documents are made
available for our inspection failure which the Accountant should be
made to refund the total amount of GH¢218,074.48 to the Scheme’s
account.
629. In response, management stated that it had taken note, and
would ensure that the requisite supporting documents are attached to
the payment vouchers for our inspection. This had not been done as at
the time of writing this report.
134 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Accountable imprest not accounted for - GH¢409,292.35
630. Our examination of payment vouchers revealed that monies
totalling GH¢499,292.35 advanced to officers between January 2010
and July 2011 as accountable imprest to organise various programmes
had not been accounted for even after the completion of the
programme. We also noted that management had not instituted any
action against the imprest holders who failed to retire their imprest on
the due dates.
631. This practice contravened Regulation 288(2) of FAR 2004,
which states that “failure to retire an imprest by the due date, unless
occasioned by the death or incapacity of the imprest holder is a breach
of discipline as defined in regulation 8(1)”. Failure of the officers
involved to render account for their stewardship suggests that the
money was not judiciously used for the intended purpose for which
the fund was released to them.
632. The act was as a result of lack of supervision by the
Accountant and the failure of management to put in place measures
which would compel imprest holders to account for their imprest. The
practice, if not discouraged, could lead to unspent imprest amounts
being locked up in pockets of individuals rather than being used in
furtherance of the Secretariat’s programmes.
633. We recommended that, the officers should be made to either
account for the moneys received for our verification or an advance
account be opened in their names for recovery from their salaries.
Additionally, appropriate disciplinary action should be taken against
them for breach of discipline as stipulated in Regulation 8 of the FAR.
We further advised management to put in place the necessary
measures which would compel imprest holders to promptly account
for future imprest.
634. Management accepted our observation and assured us that the
officers concerned would be made to account for the imprest received.
A follow up however revealed otherwise.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 135 Other Statutory Institutions for the period ended 31 December
Failure to recover loan/advances granted to staff - GH¢85,352.49
635. FAR 110 states that “A head of department who has been
delegated in accordance with regulation 109 (delegation of
administering authority), shall ensure that advances issued are duly
recovered in accordance with the appropriate agreement”
636. FAR 114 also states that the duty of the head of department to
deduct advance recoveries from salary payments will not diminish the
responsibility of the public officer who has received an advance to
repay it according to the agreement and to report any failure to make
deductions from salary when due.
637. We observed that between February 2007 and September 2010,
management of the Scheme granted a total amount of GH¢114,429.48
as advances to its staff. We noted that since October 2010, the loan
deductions from the salaries of the beneficiaries ceased. The
beneficiaries however failed to report on the stoppage of the deduction
and management also failed to put mechanism in place to recover the
loans in contravention of the above stated regulation.
638. As a result, an amount of GH¢29,076.99 had been recovered
out of the GH¢114,429.48 granted, leaving an outstanding balance of
GH¢85,352.49 as at the time of reporting.
639. We recommended that necessary steps be taken to recover the
outstanding advances from the beneficiaries to avoid loss of money to
the Secretariat.
640. Management explained that following the migration of staff
salaries to Controller and Accountant General’s Department,
deductions could not be effected immediately and assured us that this
would be made in due course. We reiterated that management steps up
efforts in recovering the loans.
136 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Withholding tax not remitted to Internal Revenue Service -
GH¢9,527.12
641. Section 87(1) of the Internal Revenue Act 2000, requires a
withholding agent to pay to the Commissioner a tax that has been
withheld within 15 days after the end of the month in which the
payment, subject to withholding tax, is made by the withholding
agent.
642. We noted that a total amount of GH¢9,527.12 being taxes
withheld from suppliers of goods and services between January 2010
and June 2011 had not been remitted to the Commissioner, DTRD of
the GRA in contravention of the provision of above stated tax law.
643. The lapse was occasioned by management’s failure to adhere to
the above mentioned regulation, thereby denying the state of the much
needed revenue for its developmental projects. We recommended that
management of the Scheme should remit the total sum of
GH¢9,527.12 to the relevant tax office without delay. We also advised
that in future, management should promptly remit all withheld taxes
for the avoidance of penalties and also to contribute to the state’s
revenue generation drive.
644. Management agreed to immediately pay the amount withheld
to the DTRD and assured us of the avoidance of the recurrence of the
anomaly.
Procurement from single source- GH¢66,206.00
645. Contrary to Section 43 of the Public Procurement Act 2003
(Act 663), we noted that goods and services worth GH¢66,206.00
were procured between January 2010 and July 2011 without obtaining
three quotations.
646. Management’s non-compliance with the provision of the PPA
did not provide assurance that transparency, fairness and optimum
value for money was obtained from the goods and services procured.
647. We recommended that, the Executive Director should ensure
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 137 Other Statutory Institutions for the period ended 31 December
that procurement procedures are followed in future purchases as
prescribed by Act 663. Additionally, management should institute
disciplinary action against the responsible officers who in subsequent
transactions fail to ensure that the provisions of the Act are complied
with as stipulated by Section 92 of the Public Procurement Act.
648. Management acknowledged our observation and gave the
assurance that appropriate mechanism would be put in place to avoid
this occurrence.
Fragmented purchases
649. 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.
650. Contrary to the above regulation our audit review revealed that,
a contract for printing of T-shirts and caps amounting to
GH¢30,400.00 was fragmented into nine different lots in
circumvention of the Procurement Act and awarded to one contractor
M/S Debos Coterie Venture on the same day, 25 July 2011.
651. The procurement officer explained that, he was not aware of
the contract and was also not party to the award process. He indicated
that the Greater Accra Regional Director awarded the contract.
652. In our opinion, this was a deliberate action taken by
management in order to circumvent the dictates of the PPA and to
benefit individuals involved rather than the Secretariat. The
procurements therefore lacked transparency and was opened to abuse.
653. We recommended that management should comply with the
procurement Act in awarding future contracts and desist from
deliberate breach of the law for its interest. Additionally, management
should institute disciplinary action against the Procurement Unit, the
138 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Internal Audit Unit and the Authorising officer whose inaction caused
the breach of financial discipline.
654. Management in response stated that it received a late invitation
to participate in the 2011 Policy Fair and that the ‘T’-shirts were
printed for a small group of representatives for the fair but it became
necessary to order more lots as and when it became necessary.
655. Management’s explanation was untenable as the cheques
issued for the payments were all dated 5 August 2011. We viewed the
above situation as an indication of improper planning of activity
resulting in procurements made without recourse to the law. We
reminded Management that acting contrary to the procurement law
attracts sanctions and should therefore plan its activities ahead of time.
Contract sum exceeded without approval
656. For effective management and control over contracts, a
condition for exceeding the original contract sum is to prepare
variation orders for the employer’s endorsement and approval.
Variation work in excess of 15% of the initial contract sum demands
that the contract should be packaged separately as a new contract and
tender processes followed before it is awarded.
657. Our audit revealed that the bottled water project at Media, a
suburb of Accra, awarded at an initial contract sum of GH¢456,227.80
to M/s Wonas Company Limited on 20 February 2009 was to be
completed within one and half years.
658. Our review of the records disclosed that, the contract sum was
erratically increased to GH¢856,597.67 representing an 81% increase
without recourse to laid down procedure. The Consultant explained
that management failed to allow him access to the site to enable him
carry out the necessary tests before submitting his drawings. He later
realised the site was water log and had to revise the drawings resulting
in additional works to strengthen the foundation. He also maintained
that the extension of the canteen was verbally ordered when the Board
visited the site.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 139 Other Statutory Institutions for the period ended 31 December
659. This practice violates the procurement Act and undermines
procedures and controls established under contract management.
660. We recommended that additional works which increased the
initial contract sum should be packaged separately and regularized for
our review.
661. Management accepted our recommendation and stated that the
additions has been repackaged separately and referred to the Entity
Tender Committee for regularization and approval.
Inability to recover investment made in the farm project
662. Best investment management practice requires that before a
project/investment is undertaken, a survey should be undertaken to
determine its feasibility and profitability as well as compatibility with
the institution’s financial profile. It is also expected that records on
performance of the project should be maintained as would inform
Management/Board decision on the desirability for continued
investment in the project or otherwise.
663. Additionally, FAR 1 mandates any public officer responsible
for the conduct of financial business on behalf of Government to keep
proper records of all transactions and to produce the records for
inspection when called upon to do so.
664. We noted that during the period under review, NSS started a
number of farm projects in Ejura, Brong Ahafo Region and six other
locations. Contrary to the above expectation, our review of the farm
project proved otherwise. There were no files or proper records
maintained on the farm projects. We did not sight any documented
feasibility study or expert advice sought before commencement of the
projects.
665. A review of records made available to us indicated that
management needed to have a second look at the operations of the
farms. We observed that as at December 2011, a total amount of
GH¢593,744.23 which excluded allowances paid to personnel
working on the farm and equipment has been invested in the seven
140 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
farm projects. Total income from the sale of farm produce during the
same period was GH¢82,741.86 resulting in an excess expenditure
over income of GH¢511,002.37.
666. Much as we agree with management that this is a social but
not a profit venture aimed at encouraging the youth to take to
agriculture, we are of the view that improper record keeping leading
to losses declared would rather deter the youth from taking up such a
venture. We noted that management did not match the farm
expenditure with income with the view of evaluating the sustainability
of the venture. We were also of the view that the maintenance of
improper records would not show a true position of the project and
where huge losses are recorded rather than profits this may deter
others from venturing in the projects. As a result the purpose of
encouraging youth in agriculture might be defeated.
667. We recommended that, in future management should ensure
the viability of projects before sinking funds into them; meanwhile
management should seek expert advice on the farming projects to
make an informed decision. We also advised management to comply
with FAR 1, and as a matter of urgency prepare and submit the
consolidated farm account for audit so as to show the true position of
the project with the aim to achieve its purpose.
668. Management in response to our observation stated that the farm
project was intended to provide skills to young graduates and
encourage them to take up agriculture as alternative livelihood to curb
graduate unemployment. Management also intimated that the farm
accounts which were kept at the various farms were yet to be
consolidated in order to assess the impact of the projects.
Management further stated that it however hopes to achieve a great
impact as stocks of maize and other items were yet to be sold.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 141 Other Statutory Institutions for the period ended 31 December
NATIONAL ACCREDITATION BOARD
Introduction
669. This report relates to the audited accounts of the National
Accreditation Board for the period 1 January 2010 to 31 December
2011
Operational results
670. Total income for the year under review amounted to
GH¢3,202,116.89 as compared with the previous year’s figure of
GH¢3,154,582.92. Thus, registering an increase of GH¢47,533.97 or
1.5%. This marginal increase was largely facilitated by an increase of
GH¢246,000.69 or 21.2% in government subvention received in the
year under review and an increase of GH¢47,747.32 or 3.1% in
Internally Generated Funds which rose from GH¢1,541,132.50 in
2010 to GH¢1,588,879.82 in 2011. Presented in Table 48 are the
performance indicators.
Table 48: Income statement for 2011
Income
2011
GH¢
2010
GH¢
%
Increase/
Decrease
Government Subvention 1,404,554.31 1,158,553.62 21.2
Internally Generated Funds 1,588,879.82 1,541,132.50 3.1
Grants & Interest on
Investment
208,682.76 454,896.80 (54.1)
Total Income 3,202,116.89 3,154,582.92 1.5
Expenditure
Personal Emoluments 698,975.75 626,058.46 11.7
Administration 711,976.60 600,843.49 18.5
Service Activity 1,264,748.15 1,005,094.87 25.8
Depreciation 87,884.25 15,358.29 472.2
Total Expenditure 2,763,584.75 2,247,355.11 23.0
Excess/Deficit of
Income/Expenditure
438,532.14 907,227.81 (51.7)
671. Total Expenditure for the year under review amounted to
GH¢2,763,584.75 as against GH¢ 2,247,355.11 recorded in 2010.
142 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
This showed an increase of GH¢516,229.64 or 23.0% over the
previous year’s expenditure. The rise in expenditure was largely due
to an 18.5% and 25.8% increase in administration and service
activities respectively. The appreciation of 11.7% in personnel
emolument costs as a result of increase in staff salaries and related
allowances accounted for the rise in administration expenses.
Similarly, accreditation exercises in 2011 which went up by 195.0%
or GH¢244,797.72 to GH¢370,315.10 over the 2010 accreditation
expenditure of GH¢125,517.38 occasioned the increase in service
expenditure.
672. The Board ended the year with an income surplus of
GH¢438,532.12 as against GH¢907,227.81 registered in 2010, a
reduction of 51.7%.
Financial Position
673. The financial position of the Board is shown in Table 49.
Table 49: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current assets 604,994.01 395,339.55 53.0
Current assets 2,257,461.69 2,048,755.53 10.2
Total Assets 2,862,455.70 2,444.095.08 17.1
Represented by
Accumulated Fund 2,746,871.50 2,308,339.36 19.0
Capital Grant –
NUFFIC Project
7,352.34 13,479.29 (45.5)
Revenue Grant – TALIF
Project
108,231.86 122,276.43 (11.5)
Total 2,862,455.70 2,444,095.08 17.1
Non-current assets
674. Fixed Assets which stood at GH¢604,994.01 in the year 2011,
registered a net increase of GH¢209,654.46 or 53.0% over the 2010
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 143 Other Statutory Institutions for the period ended 31 December
figure of GH¢395,339.55. This was largely as a result of acquisition
of vehicles, office equipment, computers and accessories as well as
furniture and fittings.
Current assets
675. Current Assets for the year under review amounted to
GH¢2,257,461.69 as against GH¢ 2,048,755.53; an increase of 10.2%
or GH208,706.16 over the 2010 figure, resulting from additions made
to short term investment and advances granted to staff.
Current liabilities
676. NAB had no current liabilities.
677. The Accumulated Fund recorded an increase to
GH¢2,746,871.50 in 2011 from GH¢2,308,339.36 in 2010 largely due
to excess of income over expenditures amounting to GH¢ 438,532.14.
MANAGEMENT ISSUES
Non-compliance with contract agreement
678. We observed during the examination of records that in 2007,
the Teaching and Learning Innovation Fund (TALIF) Project of the
World Bank agreed to fund the automation of the accreditation
process of the Board. The TALIF office consequently released to
NAB a total amount of GH¢147,126.35 made up of GH¢111,170.92
in 2007 and GH¢ 35,955.43 in February 2011. We however noted that
the project commenced in 2011.
679. Management explained that the stringent procurement
requirements of the funding agency resulted in the delay in project
execution.
680. Section 4 of the Contract Agreement for the Project valued at
GH¢125,000.00 and awarded to Somuah Information Systems
Company Limited provides that “the Consulting firm shall perform
the service during the period commencing 13 January 2011 and
continuing through 13 June 2012, or any other period as may be
subsequently agreed by the parties in writing.”
144 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
681. We noted that as at 30 June 2012, only 40% of the work
amounting to GH¢50,000.00 was completed and paid for after the
expiration of the contract period on 13 June 2012. There was no
agreement in writing as to the new completion date as otherwise stated
in the contract agreement.
682. The non adherence to the terms of the contract stated above
could be due to laxity in the contract management. This lapse could
result in cost overruns which the donor might be reluctant to fund.
683. We recommended and management agreed to urge the
consultant to come out with a stringent time table for the early
completion of work, failing which cost fluctuations should be borne
by the company.
UNIVERSITY OF EDUCATION WINNEBA
Introduction
684. This report relates to the audited accounts of University of
Education Winneba for the year ended 31 December 2010.
Operational results
685. Total income for the period increased by 23.0% to
GH¢51,019,869 from GH¢41,470,937 in 2009. This was due to a
21.5% rise in Government Subvention and Other Grants, a 3,942%
increase in Donor Funds, and a 23.9% rise in Fees and Other Income.
686. The summary of the University’s operations for the year is
provided in Table 50.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 145 Other Statutory Institutions for the period ended 31 December
Table 50: Income statement for 2010
Income 2010
GH¢
2009
GH¢
%
Change
Government Subvention &
Other Grant
24,298,627 19,990,964 21.5
Donor Funds 100,000 2,474 3,942.0
Fees and Other Income 26,621,242 21,477,499 23.9
Total Income 51,019,869 41,470,937 23.0
Expenditure
Personnel emoluments 26,521,151 20,573,307 28.9
Administration Cost 8,498,877 5,891,079 44.3
Service Cost 5,796,877 4,504,328 28.7
Investment Cost 1,319,215 1,374,345 (4.0)
Total Expenditure 42,136,120 32,343,058 30.3
Surplus 8,883,749 9,127,878 (2.7)
687. Total Expenditure increased by 30.3% from GH¢32,343,058 in
2009 to GH¢42,136,120 in 2010. The increase was as a result of a
28.9% rise in Personnel Emoluments, a 44.3% increase in
Administration Cost, and a 28.7% rise in Service Cost. Utility
charges, insurance premium, management allowance and printing &
stationary largely accounted for the increase in Administration Cost.
688. The operations of the University ended with a surplus of
GH¢8,883,749 (2009: GH¢9,127,878), a fall of 2.7% over that of
2009.
Financial position
689. Shown in Table 51 is the financial position of the University
for the period under review.
146 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 51: Balance sheet as at 31 December 2010 Item 2010
GH¢
2009
GH¢
%
Change
Non-current Assets 21,327,738 17,847,350 19.5
Current Assets 24,433,177 20,885,172 17.0
Current Liabilities 970,300 2,584,654 (62.5)
Net Current Assets 23,462,877 18,300,518 28.2
Net Assets 44,790,615 36,147,868 23.9
Current Ratio 25.2:1 8.1:1
690. Non-Current Assets which stood at GH¢17,847,350 in 2009
went up to GH¢21,327,738 in 2010, an increase of 19.5%. The
increase was due to a rise in Property, Plant and Equipment by
GH¢3,474,359 from GH¢17,804,378 in 2009 to GH¢21,278,737 in
2010. This resulted from the additions to Land/office Building, staff
Bungalows, classrooms/Laboratory and Work in Progress.
691. Current Assets increased by 17.0% from GH¢20,885,172 in
2009 to GH¢24,433,177 in 2010. This was due to increases in
Inventory, Investment, and Cash and Bank Balances.
692. Current Liabilities which was made up of Accounts Payable
and Bank Overdraft decreased by 62.5% from GH¢2,584,654 in 2009
to GH¢970,300 in 2010 due to full settlement of the Bank overdraft.
693. The liquidity position of the University as depicted by an
increase in the Current Ratio of 25.2:1 (2009: 8.1:1) showed that the
University has enough resources to meet its short-term debts when
they fall due.
MANAGEMENT ISSUES
I.E.D.E Student Debtors
694. Proper maintenance of records on debtors can result in
substantial recovery of the institution’s debts. Also, the debtors figure
disclosed in a financial statement must have a reliable supporting
schedule.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 147 Other Statutory Institutions for the period ended 31 December
695. We observed that student debtors presented to us was for only
Kumasi and Accra Centres. The list of the 12 other centres were not
given to us. The staff of I.E.D.E explained that these were the only
debtors available. The details are shown below:
Centre GH¢
Accra 42,093
Kumasi 66,365
Total 108,458
696. The practice of nonpayment of debt might negatively affect the
efficient running of the University as the much needed funds would
not be available.
697. We recommended that management should introduce vigorous
debt collection policy which includes writing to all student debtors to
pay their debts or withhold their certificates till their debts are settled.
Land Title Registration
698. Legal and absolute ownership of properties by an organization
require the possession of title deeds to its properties. In spite of this
requirement management was yet to register the Ajumako Campus
Lands with the appropriate state department to achieve absolute title
to the Lands.
699. We therefore recommended that management take the
necessary step to register the Ajumako Campus Lands and obtain title
to all the lands for the avoidance of losses in times of disputes.
Vehicle Insurance
700. Our review of the insurance policy in place showed that the
following vehicles of the University were not insured:
No. Registration No.
1 GT 1465 X
2 GR 3179 X
3 GR 2442 G
148 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
701. We also observed that there were no copies of the registration
documents available to enable the vehicles to be insured. It is a
criminal offence against the traffic regulations to use uninsured
vehicles in Ghana. Also the University will have to bear the cost of
repairs or replacement of these vehicles and any other vehicles if they
are involved in an accident with third party vehicles.
702. We recommended that management should demand copies of
the registration documents to enable them insure the vehicles.
MINISTRY OF LANDS, FORESTRY AND MINES
OFFICE OF THE ADMINISTRATOR OF STOOL LANDS
Introduction
703. This report is in relation to the audited accounts of the Office
of the Administrator of Stool Lands (OASL) for the period 1 January
2010 to 31 December 2011.
Operational results
704. Total Income registered an increase of 3.4% from
GH¢3,888,309.97 in 2010 to GH¢4,021,035.61 in 2011. The 3.4%
rise was mainly due to a 20.4% increase in Government Funding
which rose from GH¢1,633,125.23 in 2010 to GH¢1,966,899.96 in
2011. Internally Generated Fund (IGF) which is the main contributor
to income rather showed a decline of 6.7% from GH¢2,187,645.51 in
2010 to GH¢2,040,747.05 in 2011.
705. The decline was as a result of a fall in revenue from mineral
royalties. Presented in Table 52 are the performance indicators.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 149 Other Statutory Institutions for the period ended 31 December
Table 52: Comparative income and expenditure statement for
2011 and 2010
Income 2011
GH¢
2010
GH¢
%
Change
Public Fund (GOG) 1,966,899.96 1,633,125.23 20.4
IGF 2,040,747.05 2,187,645.51 (6.7)
Donor (LAP) 13,388.60 66,039.23 (79.7)
Bid Documents 1,500.00 (100.0)
Total Income 4,021.035.61 3,888,309.97 3.4
Expenditure
Personnel
Emoluments
1,806,899.96 1453,067.00 24.4
Administration 1,395,228.76 1,246,153.40 12.0
Service Activity 883,128.32 715,015.18 23.5
Project Expenses
(LAP)
32,150.59 47,047.17 (31.7)
Total Expenditure 4,117,407.63 3,461,282.75 19.0
Excess of
Income/Expenditure
(96,372.02) 427,027.22 (122.6)
706. Expenditure incurred in 2011 totaled GH¢4,117,407.63 as
against GH¢3,461,282.75 in the previous year, an increase of 19.0%.
The expenditure components included Personnel Emoluments which
rose by 24.4% from GH¢1,453,067.00 to GH¢1,806,899.96 in 2011 as
a result of salary increment; Administrative Expenses also rose by
12.0% from GH¢1,246,153.40 in 2010 to GH¢1,395,228.76 in 2011.
Increase in office consumables and travel and transport costs largely
accounted for the rise in Administration Expenses.
707. The Office recorded an operational deficit of GH¢96,372.02 as
against an excess income of GH¢427,027.22 in 2010, representing a
decline of 122.6%.
Financial position
708. A summary of the financial position of the Board is presented
in Table 53.
150 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 53: Assets and liabilities as at 2011 and 2010
Fixed assets
709. The Office’s Fixed Assets registered GH¢1,355,512.27 in
2011 as compared with GH¢1,314,060.36 in 2010, a growth of 3.2%.
The increase in 2011 was as a result of additions to all assets of the
Office.
Current assets
710. Current assets which comprised of staff debtors and cash at
bank decreased by 37.5% from GH¢367,149.25 in 2010 to
GH¢229,325.32 in 2011 mainly as a result of decrease in the bank
balance.
711. Liquidity outlook remained strong as no current liability was
recorded.
MANAGEMENT ISSUES
Printing of fake receipts
712. Our review of records at the Brong Ahafo OASL revealed that
management constituted a sub-committee to investigate a report made
in July 2010 in which Mr. Richard Anin Mensah, Revenue Officer,
had printed fake receipt books he used for revenue collection. The
allegation was confirmed and the following recommendations made
were forwarded to Head Office:
i. Mr. Anin Mensah must be made to refund an estimated
amount of GH¢2,500.00 which could be realised from the
four books he printed.
2011 GH¢ 2010
GH¢
%
Change
Fixed Assets 1,355,512.27 1,314,060.36 3.2
Current Assets 229,325.32 367,149.25 (37.5)
Current liabilities - -
Net Assets 1,584,837.59 1,681,209.61 (5.7)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 151 Other Statutory Institutions for the period ended 31 December
ii. He should be interdicted to pave way for further
investigation and the final determination of the case.
iii. Strict punishment should be instituted against officers who
embezzle Stool Lands revenue to serve as a deterrent.
713. We noted that apart from interdicting Mr. Anin Mensah who
later resigned on 19 September 2011 without paying the amount
involved no action was taken on the other recommendations.
714. Management’s inaction contravened Regulation 230 of the
FAR,2004 (L.I. 1802) which states that a head of department shall
ensure that adequate investigation is made of a loss and direct action
to be taken to ensure the rectification of systems, discipline of staff
and recovery of the loss.
715. The anomaly was attributed to weak controls in revenue
collection and lack of periodic management reviews of revenue
performance. The delay in carrying out further investigations for
corrective action could facilitate others to engage in similar act.
716. We recommended that management should ensure that the
provision of FAR 230 is complied with without any further delay. We
also advised management to intensify efforts in pursuing recovery of
the GH¢2,500.00 including interest at the prevailing bank interest
from Mr. Anin Mensah.
717. Management in response stated that, it was conducting further
investigations and would apply appropriate remedies and sanctions as
soon as it was satisfied with the outcome of the investigations.
718. We advised management to expedite action on its further
investigations.
Delay in accounting for revenue collected to the Chief Collector
719. Regulation 15(1) of the FAR 2004 (L.I. 1802) states that “any
public officer or collector who collects or receives public and trust
152 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
moneys shall issue official receipt 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”.
720. On the contrary, we noted that seven revenue collectors
delayed for periods ranging between 12 and 199 days in paying
revenue collected which amounted to between GH¢108.50 and
GH¢160,670.72 to the Chief Collector.
721. Lack of internal controls and weak supervisory control over the
revenue collectors resulted in the anomaly. The irregularity could
result in loss of revenue as the collectors do not have safe facilities.
The practice could also lead to previous collections being used to
account for current collections resulting in misappropriation and
ultimately, loss of government revenue.
722. We recommended that management should step up supervision
over revenue collection and ensure that the Revenue Collectors
comply with the provision of the financial regulation and the
management policy stated above.
723. Management responded that, it detected the problem and as a
result transferred the affected officers. Management added that the
revenue collectors would be constantly monitored and supervised for
the practice to be stemmed.
Unearned salaries - GH¢39,531.81
724. Contrary to Regulation 298 of L.I. 1802 we observed that 16
separated staff during the review period were paid unearned salaries
totalling GH¢41,431.81. We noted that management duly informed
the Controller and Accountant-General’s Department (C & A-GD) to
delete the ex-employees names from the pay roll. However, it took the
C & A-GD periods ranging between one and 12 months to effect the
deletions.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 153 Other Statutory Institutions for the period ended 31 December
725. We nonetheless observed that management failed to notify the
bankers of the separated staff to stop payment of the unearned salaries
and transfer same into the Consolidated Fund contrary to the
aforementioned financial regulation. This omission could result in the
loss of the money to the state.
726. At the instance of the audit, an amount of GH¢1,900.00 was
recovered from one of the retired officers, leaving a total amount of
GH¢39,531.81 yet to be recovered.
727. We recommended that efforts should be made by management
to recover the outstanding amount of GH¢39,531.81 into Government
chest and obtain a Treasury Receipt to support the recoveries for our
verification.
728. Management stated without documentary evidence that the
banks of the separated officers were informed to transfer the unearned
salaries into the Consolidated Fund. Management also intimated that
officers who might have withdrawn moneys before the bank’s action
were being identified for the refund of the balance.
LAND REGISTRATION DIVISION OF THE LANDS
COMMISSION
Introduction
729. This report relates to the audited accounts of the Land
Registration Division of the Lands Commission for the period 1
January 2009 to 31 December 2010.
Operational results
730. Total income increased by 41.4% from GH¢1,472,039.47 in
2009 to GH¢2,081,637.51 in 2010. Donor Fund, on the other hand,
decreased by 85.6%, a decline from GH¢34,598.96 in 2009 to
GH¢4,996.74 in 2010. The increment in total income was mainly due
to a 71.9% increase in IGF from GH¢657,046.00 in 2009 to
GH¢1,129,734.00 in 2010. Other Income, also decreased by 15.8%
from GH¢339,515.10 in 2009 to GH¢285,981.30 in 2010. Table 54 is
the income statement for 2010 and 2009 reviewed.
154 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 54: Comparative income statement for 2010 and 2009
Income
2010
GH¢
2009
GH¢
Difference
GH¢
%
Change
GoG Grant 660,925.47 440,879.41 220,046.06 49.9
IGF – Consolidated
Fund
1,129,734.00 657,046.00 472,688.00 71.9
Donor Fund 4,996.74 34,598.96 (29,602.22) (85.6)
Other Income 285,981.30 339,515.10 (53,533.80) (15.8)
Total Income 2,081,637.51 1,420,712.04 609,598.04 41.4
Expenditure
Personnel Emoluments 415,738.78 330,834.75 84,904.03 25.7
Administrative
Expense
121,880.52 92,735.44 29,145.08 31.4
Service Expense 11,156.44 2,205.00 8,951.44 406.0
Investment 39,985.09 79,098.83 (39,113.74) (49.4)
IGF – Transfer to
Consolidated Fund
1,129,734.00 657,046.00 472,688.00 71.9
Donor Fund
Programme
31,083.90 38,990.80 (7,906.90) (20.3)
Others 334,962.20 248,629.36 86,332.84 34.7
Total Expenditure 2,084,540.93 1,449,540.18 635,000.75 43.8
Surplus/(Deficit) (2,903.42) 22,499.29 (25,402.71) (112.9)
731. Expenditure incurred in 2010 amounted to GH¢2,084,540.93 as
against GH¢1,449,540.18 in 2009, an increase of 43.8%. The
expenditure components included Personnel Emoluments of
GH¢415,738.78 (2009: GH¢330,834.75) representing a 25.7%
increase; Administration Expenditure amounted to GH¢121,880.52 in
2010 (2009: GH¢92,735.44) an increase of 31.4%. Service
Expenditure was GH¢11,156.44 in 2010 (2009: GH¢2,205.00) an
increase of 406.0%. Investment Expenditure on the other hand
reduced by 49.4% to GH¢39,985.09 in the year under review, (2009:
GH¢79,098.83).
732. Donor Funded Expenditure decreased by 20.3% to
GH¢31,083.90 in 2010 (2009: GH¢38,990.83). Other Expenditure
registered GH¢334,962.20 in 2010 as against GH¢243,629.36 in
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 155 Other Statutory Institutions for the period ended 31 December
2009, resulting in a rise of 34.7% and IGF transferred to the
Consolidated Fund amounted to GH¢1,129,734.00 in 2010 (2009:
GH¢657,046.00); an increase of 71.9%, which was the main cause of
upward movement in the total expenditure.
733. An operational deficit of GH¢2,903.42 was registered in 2010
as against a surplus of GH¢22,499.29 in 2009.
Financial position
734. Table 55 provides the financial position of the Division as at 31
December 2010.
Table 55: Financial position as at 31 December 2010 Item 2010
GH¢
2009
GH¢
Difference
GH¢
%
Change
Cash-In-Hand and At-
Bank
162,318.92 207,329.23 (45,010.31) (21.7)
Advances 8,545.00 7,835.00 710.00 9.1
Total 170,863.92 215,164.23 (44,300.31) (20.6)
Current Liabilities
Sundry Creditor and
Accruals
18,406.04 84,323.07 (65,917.03) (78.2)
Other Creditors 129,400.99 153,202.05 (23,801.06) (15.5)
Total 147,807.03 237,525.12 (89,718.09) (37.8)
Net Assets 23,056.89 (22,360.89) 45,417.78.00 (203.1)
735. The Current assets of the Division registered a decrease of
20.6% from GH¢215,164.23 in 2009 to GH¢170,863.92 in 2010. This
was as a result of drop in the cash and bank balances.
736. Current liabilities, also declined by 37.8% from
GH¢237,525.12 in 2009 to GH¢147,807.03 in 2010. The decrease was
as a result of 78.2% drop in the sundry creditors and accruals.
737. Net Assets also registered GH¢23,056.89 in 2010 as against a
deficit of GH¢22,360.89 in 2009.
738. The Division recorded a current ratio of 1.2:1 indicating that it
might have difficulties in discharging its short term obligations when
they fall due.
156 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MANAGEMENT ISSUES
Unapproved extension of national service period
739. National Service Personnel posted to organizations are to serve
for one year, from October to September, during which the office of
the National Service Scheme (NSS) is responsible for their monthly
allowance.
740. Our examination of payment vouchers revealed that
management extended the service period of 14 Service Personnel to
December of the respective years without approval from the
Commission and the National Service Secretariat.
741. The unapproved extension cost the Registry a total amount of
GH¢11,703.75, which had not been budgeted for. Management’s
action in misapplying funds could negatively affect the achievement
of planned programmes.
742. In order not to throw the budget of the Division into disarray,
we recommended that in future, management should budget for and
seek approval from the Commission and the NSS for the extension of
service period or the engagement of temporary staff.
743. Management accepted our recommendation.
Failure to obtain three quotations
744. Section 43(1) of the PPA states that, “the procurement entity
shall request quotations from as many suppliers or contractors as
practicable, but from at least three different sources”.
745. We noted during our audit that contrary to the provision of the
PPA, management purchased items worth GH¢13,738.81 without
requesting for at least three different quotations or seeking approval
from the Public Procurement Board for single sourcing in violation of
Section 40(2) of Act 663.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 157 Other Statutory Institutions for the period ended 31 December
746. The lapse which resulted from ineffective control by
management over the procurement processes could defeat
transparency and goods could be purchased at inflated costs, thus
undermining the principle of value for money in public financial
management.
747. We advised management to comply with the dictates of the
PPA to ensure fairness, transparency and value for money in its
procurement dealings.
Purchase from unregistered VAT entities
748. Our review of records revealed that management procured
goods and services amounting to GH¢5,322.00 from non-VAT
registered entities contrary to Regulation 183(4) of the FAR.
749. Management’s failure to deal with VAT registered entities
resulted in a tax revenue loss of GH¢798.30 accruing to the State.
750. We therefore recommended that Management should comply
with the above stated regulation and deal with VAT registered entities
when procuring stores.
Inappropriate record keeping
751. Best records management practice demands that documents in
all forms should be kept in a conducive environment in order to
prevent theft and damages. Additionally, they should be arranged in a
sequential manner for easy accessibility or identification for reference.
752. We however noted that the records room or “strong room” of
the Division was in bad shape. Apart from not being spacious, it had
no emergency exit and there was evidence that the roof leaked
whenever it rained. There were also no fire extinguishers to fight any
fire outbreak. Moreover, some of the important documents were kept
on the bare floor for lack of adequate shelves or filing cabinets.
753. The foregoing situation could lead to irreparable loss in the
event of a fire outbreak. It also made difficult retrieving of records for
158 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
referencing. As a result of improper storage, documents easily get
mixed up thereby contributing to the delay in issuing of land title
certificates and other services rendered.
754. Lack of management supervision and inadequate maintenance
of buildings have resulted in the deteriorating state of the records
room.
755. With the increase in land transactions and to ensure efficiency
as well as safeguard the documents, we urged management to make
provision in future budgets for funds to acquire a bigger
accommodation with the necessary facilities for the records room so
that documents could be arranged sequentially for easy retrieval.
Meanwhile, the room should be renovated and provided with fire
extinguishers and pallets or shelves.
756. Management accepted our recommendation for
implementation.
PUBLIC AND VESTED LANDS MANAGEMENT
DIVISION OF LANDS COMMISSION
757. This report is in relation to the audited accounts of the Public
and Vested Lands Management Division of Lands Commission
(PVLMD) for the year ended 31 December 2010.
MANAGEMENT ISSUES
Expenditure without supporting documents- GH¢282,555.00
758. Contrary to Regulation 39(c) of the FAR, our audit disclosed
that 27 payment vouchers, totalling GH¢282,555.00 were without
relevant supporting documents such as invoices, statement of claims
and receipts to properly acquit the payments.
759. We could therefore not vouch the propriety or otherwise of the
expenditure in the absence of vital documentary evidence supporting
the disbursements.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 159 Other Statutory Institutions for the period ended 31 December
760. We recommended that management should ensure the
payments are properly acquitted failing which the amount involved
should be recovered from the authorizing and paying officers, paid
into the appropriate account and our office duly notified for
verification. Management should also ensure that in future, payment
vouchers are attached with the appropriate documents before effecting
payments.
761. Management in response stated that the expenditure was
genuine and that the relevant documents had been attached to the
payment vouchers for verification. However as at the time of
reporting, the vouchers had not been made available to our office.
Hotel accommodation
762. We noted that management had entered into an agreement with
East Legon Guest Lodge to provide hotel accommodation services to
staff that were transferred to Accra and were yet to secure
accommodation without opening the contract to competitive bidding.
763. This omission contravened Section 35 (I) of the PPA which
obligates a procurement entity to procure goods, services or works by
competitive tendering.
764. From the above lapse, it was evident that management might
not have obtained value for money for a total amount of
GH¢75,551.78 paid during the period reviewed on hotel
accommodation.
765. Management was advised to comply with the provision of the
PPA in subsequent transactions.
Absence of Audit Reports Implementation Committee (ARIC)
766. Section 30 of the Audit Service Act, 2000 (Act 584) provides
that an institution, body or organization, which is subject to auditing
by the Auditor –General, must establish an Audit Reports
Implementation Committee (ARIC).
160 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
767. We observed that no ARIC has been established by the
Commission. The absence of an ARIC could result in the non-
implementation of recommendations made in audit and other
monitoring reports.
768. We recommended and management agreed to liaise with the
governing body to have an ARIC established in order to facilitate the
implementation of audit recommendations.
MINISTRY OF JUSTICE
LAW REFORM COMMISSION
Introduction
769. This report is in relation to the audited accounts of the Law
Reform Commission for the period 1 January 2010 to 31 December
2011.
Operational result
770. The Commission’s total income for 2011 was GH¢369,264.37
as compared with GH¢272,953.28 in 2010, an increase of
GH¢96,311.09 or 35.3 %. This was due to increase by the same
margin in Government Subvention which is the only source of
income.
771. The total expenditure also increased by GH¢92,273.33 from
GH¢267,968.92 in 2010 to GH¢360,242.25 in 2011, an increase of
34.4%. Prevalent in this increase was a 56.4% rise in Personnel
Emolument from GH¢150,222.79 in 2010 to GH¢234,916.74 in 2011.
The increase was due to rise in salaries and related allowances for the
period. Similarly, Administrative expenditure rose from
GH¢107,845.75 in 2010 to GH¢123,121.63 in 2011, representing
14.2% increase. The rise in vehicle running cost, repairs to office
buildings and depreciation charge accounted for the increase in
Administrative expenses.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 161 Other Statutory Institutions for the period ended 31 December
772. The Commission ended the year with a surplus of
GH¢9,022.12 as against GH¢4,984.36 in the previous year; an
increase of GH¢4,037.76 or 81.0%. The performance indicators are
shown in Table 56.
Table 56: Comparative income statement for 2011 and 2010
Income
2011
GH¢
2010
GH¢
%
Change
Subventions 369,264.37 272,953.28 35.3
Total Income 369,264.37 272,953.28 35.3
Expenditure
Personnel Emolument 234,916.74 150,222.79 56.4
Administration 123,121.63 107,845.75 14.2
Service 2,203.88 9,900.38 (77.7)
Total Expenditure 360,242.25 267,968.92 34.4
Surplus/(Deficit) 9,022.12 4,984.36 81.0
Non – current assets
773. The Commission’s non-current assets appreciated by 39.7% to
GH¢192,211.98 in 2011 as against GH¢137,547.00 the previous year
due to the acquisition of non-current assets within the year.
Current assets
774. Current assets decreased by GH¢8,642.3 or 48.2% from
GH¢17,929.31 in 2010 to GH¢9,287.01 in 2011 as a result of a 53.3%
drop in bank balance.
Current liabilities
775. The Commission acquired a motor vehicle on credit in 2011 at
the cost GH¢ 37,000.00, hence the liability.
776. The liquidity position of the Commission indicated by a current
ratio of 0.2:1 shows that its short term obligations cannot be met when
they fall due.
Accumulated fund
777. The accumulated fund for the period rose from GH¢155,476.87
in 2010 to GH¢164,498.99 in 2011as a result of the 81.0% increase in
surplus.
162 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MANAGEMENT ISSUES
Procurement from non VAT registered persons - GH¢5,228.00
778. Contrary to the dictates of Regulation 183(4) of the FAR, we
noted that the Commission procured goods amounting to
GH¢5,228.00 from Yelizoli Enterprise, a non-VAT registered
supplier.
779. Management’s non-compliance with the above regulation
resulted in the loss of GH¢784.20 in VAT/NHIL revenue.
780. We therefore recommended that in future, management should
ensure that purchases are made from only VAT registered
persons/entities in accordance with the provision of the
aforementioned FAR.
781. Management stated that the items which were paints were
rather bought by a contractor who was awarded a contract to paint the
offices. We hold a contrary view since the Commission paid for the
paint. We therefore maintain our recommendation, failing which
officers responsible for future loss of revenue would be surcharged
with the amount involved.
Fuel coupons unaccounted for - GH¢986.00
782. Store Regulation 1604 of 1984 provides among others that, full
particulars of receipts of fuel, oil and lubricants shall be entered up
daily in the log books by drivers of official vehicles.
783. On the contrary, we noted that fuel coupons amounting to
GH¢986.00 purchased by the Commission during the period under
review were not accounted for in the respective vehicle log books.
784. The drivers’ failure to record the fuel purchased in the
respective vehicle log books undermines the store regulation and
denies assurance that the fuel had been bought and used in the interest
of the Commission. This practice has a high risk of abuse.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 163 Other Statutory Institutions for the period ended 31 December
785. We therefore advised and management agreed to ensure that
the drivers account for these and successive fuel purchased or hold
them liable for a refund of the amount involved.
COMMISSION ON HUMAN RIGHTS AND
ADMINISTRATIVE JUSTICE (CHRAJ)
Introduction
786. This report is in relation to the audited accounts of the
Commission on Human Rights and Administrative Justice (CHRAJ)
for the period 1 January 2009 to 31 December 2011.
Operational results
787. The Commission made a surplus of GH¢246,385.33 in 2011
which represents an increase of 5033.7% as against the previous
year’s surplus of GH¢4,799.33. Details of performance indicators for
the year last two years of 2010 and 2011 are shown in Table 57.
Table 57: Comparative income statement for 2011 and 2010
Income 2011 (GH¢) 2010 (GH¢) Change %Change
Subventions 9,679,594.63 6,471,461.70 3,208,132.93 49.6
Others 12,265.00 15,000.00 (2,735.00) (18.2)
Total 9,691,859.63 6,486,461.70 3,205,397.93 49.4
Expenditure:
Personnel
Emoluments 7,871,779.70 4,816,092.54 3,055,687.16 63.5
Administration 1,154,722.60 1,484,440.45 (329,717.85) (22.2)
Service 418,972.00 181,129.38 237,842.62 131.3
Total Expenditure 9,445,474.30 6,481,662.37 2,963,811.93 45.7
Income Surplus 246,385.33 4,799.33 241,586.00 5,033.7
788. Total Income of the Commission registered a 49.6% rise from
GH¢6,486,461.70 in 2010 to GH¢9,691,859.63 in 2011.The increment
in total income was largely due to a 61.5% rise in Personnel
emoluments, from GH¢4,836,253.13 in 2010 to GH¢7,808,234.89 in
2011. The upward trend resulted from the Commission’s migration
onto the Single Spine Salary Structure.
164 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
789. Income in relation to Service Activities also rose by 26.0%
from GH¢505,632 in 2010 to GH¢637,139.74 in 2011. Investment
Income which represented a 4.1% of total income increased by a
1,251.8 % from GH¢29,576 to the current amount of GH¢399,802 in
2011. However, government subvention for Administration Activities
and other Incomes fell by 24.1% and 18.2% respectively.
790. Total expenditure of the Commission also registered a 45.7%
rise from GH¢6,481,662.37 in 2010 to GH¢9,445,474.30 in 2011.
This increase as earlier on mentioned was largely due to an increase in
Personnel emoluments as a result of the migration of the Commission
onto the Single Spine Salary Structure in 2011.
791. Even though there was a 26.0% increase in Service Activity
income, the expenses relating to it increased by 131.3 % in 2011. The
rise was due to the introduction of 22 new expenditure items in 2011
instead of the only two, Overseas Conference and Training Cost
which were disclosed in previous financial statements.
Financial Position
792. The details of the financial position are shown in Table 58.
Table 58: Balance sheet as at 31 December 2011
Non-current assets 2011 GH¢
2010 GH¢
% Change
Fixed Assets 456,251.97 150,194.57 203.8 Current Assets Cash and Bank Balances 48,166.96 107,622.99 (55.2)
Staff Debtors 50,144.02 52,215.04 (4.0) 98,310.98 159,838.03 (38.5)
Total Assets 554,562.95 310,032.60 78.9
Current Liabilities: Creditors 102,527.59 104,382.57 (1.8)
Net Assets 452,035.36 205,650.03 119.8
Financed by:
Accumulated Fund 452,035.36 205,650.03 119.8
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 165 Other Statutory Institutions for the period ended 31 December
793. Non-current assets increased from GH¢150,194.57 in 2010 to
GH¢456,251.97 in 2011 representing a 203.8% increase. The increase
was attributed to additional acquisition of fixed assets in 2011.
794. The Commission’s current assets which comprise Bank
balances and Staff debtors decreased by 38.5% during the year
reviewed. The fall was largely due to the drop in the bank balance in
2011.
795. Current liabilities which includes amount unpaid to C & AG
and IRS also decreased by 1.78 % from GH¢102,527.59 in 2010 to
GH¢104,382.57 in 2011.The decrease was attributed to payments
made to C & AG during the period reviewed.
796. Accumulated Fund increased by GH¢246,385.33 or 119.81%
from the preceding amount of GH¢205,650.03 to GH¢452,035.36.
MANAGEMENT ISSUES
Accountable imprest not retired– GH¢22,512.00
797. Our examination of the payment vouchers disclosed that, a
total amount of GH¢22,512.00 granted to five officers of the
Commission to run various programmes, had neither been retired nor
treated as an advance to the imprest holders’ account as at the time of
reporting even though the programmes had ended.
798. We could therefore not determine whether the monies were
used for the intended purpose. The lapse was attributed to ineffective
supervision together with the Internal Audit Unit’s failure to review
the transactions with the view of ensuring that all imprest are
accounted for by the due date as stipulated by Regulation 288 (2) of
FAR, 2004.
799. We recommended that the officers involved be made to
account for the imprest or the sum be adjusted to a personal advance
account of the imprest holders to forestall unspent balance of imprest
being locked up in individuals’ pockets to the detriment of the
166 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Commission. Additionally, management was advised to step up
supervision and introduce measures which would ensure prompt
retirement of imprest.
Failure to refund excess PE receipts - GH¢ 89,551.79
800. In our previous audit report reference no
B/CAD/7/9/VOL.2/174 of 5 July 2010, we recommended and the
Controller and Accountant General(C&AG) followed up with a memo
reference Number CAGD/CC/16/2011 dated 13 June 2011, directing
the Commission to refund to Government chest an amount of
GH¢89,551.79 which was in excess of request made for payment of
Personnel Emolument for the year 2010 and advice the C&AG
accordingly.
801. Notwithstanding these, the Commission failed to refund the
amount to the appropriate account, as at the time of reporting. We also
noted that the bank balance for the salaries account stood at
GH¢48,100.96 as at 31 December 2011, an indication that
GH¢41,450.83 out of the unpaid balance of GH¢89,551.79 had been
vired without authority from the Ministry of Finance and Economic
Planning.
802. The disregard for controls put in place, undermines government
policies and will also disrupt the budget.
803. Management was advised to comply with the C&AG’s
directive and pay the amount involved in full into the appropriate
account without any further delay and inform our office accordingly,
failing which the amount should be set off against subvention for the
following year .
804. Management was of the view that because it appeared before
the Public Accounts Committee on the subject as contained in the
2010 Auditor General’s report to Parliament, it should no longer
become an audit issue.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 167 Other Statutory Institutions for the period ended 31 December
805. We disagreed with management’s stance as there was no
documentary evidence to confirm the amount had been paid to chest.
We therefore maintained our earlier recommendation.
Irregularities noted with payment of rent advance-GH¢78,120.00
806. Our audit disclosed that management paid a one year rent
advance of GH¢78,120.00 for the Commissioner in lieu of a bungalow
on 12 October 2011. Our review of the disbursement revealed that the
expenditure was not budgeted for and control procedures for single
sourcing as provided under Section 41 of the Public Procurement
Act,2003 (Act 663) was circumvented.
807. Non adherence to laid down procedures undermines controls
put in place.
808. We also noted that, former Commissioners were
accommodated in Government Bungalows and opined that the new
Commissioner should have been treated the same. The practice, if
allowed to continue could distort planned activities and lead to
financial distress of the Commission.
809. Management explained that at the time the Commissioner was
appointed, the Government Bungalow allocated to her was undergoing
renovation.
810. We were of the view that Management could have used the
funds to finance the renovation of the bungalow. We recommended
that management should be circumspect in future dealings to avoid
wasteful spending. Meanwhile we advised management to find an
alternative accommodation for the Commissioner.
811. Management acceded to our recommendation and stated that
the rent payment was not intended to be a permanent feature.
Failure to pay withholding tax - GH¢52,384.00
812. Section 87(1) of the Internal Revenue Act, Act 2000 provides
that “a withholding agent shall pay to the Commissioner, a tax that has
168 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
been withheld or that should have been withheld within fifteen days
after the end of the month in which the payment subject to
withholding tax is made by the withholding agent”.
813. In contravention of the above cited law, we observed that
between 2009 and 2011, only GH¢36,145.00 out of taxes withheld
from suppliers amounting to GH¢88,529.00 had been remitted to the
DTRD, leaving a balance of GH¢52,384.00 yet to be paid. The
anomaly was caused by management’s failure to adhere to the above
law.
814. Non-payment of taxes withheld to the DTRD deprived the
suppliers of their tax credit and the State of the much needed revenue
for developmental purposes.
815. To avoid the payment of penalty, we urged and management
agreed to pay the outstanding tax of GH¢52,384.00 and ensure prompt
and regular payments in future.
Purchases not routed through stores –GH¢350,601.00
816. Our examination of payment vouchers revealed that various
purchases amounting to GH¢350,601.00 were not routed through
stores before use in violation of Store Regulations 0502 and 0604
which requires that goods received should be recorded in the
appropriate ledger and tally cards, and issue of same made on the
authority of properly signed requisitions.
817. Though our verification revealed that the items were receipted
and used in the interest of the Commission by the respective user
ends, the procedural lapse is a recipe for diversion of store items and
other stores malpractices. Poor supervision by management over the
stores accounted for the lapse.
818. To provide proper accountability of stores, we recommended
and management accepted to step up supervision and ensure that the
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 169 Other Statutory Institutions for the period ended 31 December
storekeeper maintains the requisite stores records on the
Commission’s receipts and issue of items purchased.
Non-functioning of Audit Reports Implementation Committee
(ARIC)
819. Section 30 of the Audit Service Act, 2000 (Act 584) provides
that an institution, body or organisation, which is subject to audit by
the Auditor-General should establish an Audit Reports
Implementation Committee (ARIC).
820. It is the duty of the ARIC to ensure that the head of the
organisation pursues implementation of matters in all audit reports as
well as the Auditor-General’s Reports endorsed by Parliament.
821. We observed that although management has constituted an
ARIC, it was not operational as our request for annual statements
showing the status of implementation of recommendation was not
heeded to. Management had also not responded to our previous audit
report referenced no B/CAD.7/9/Vol.2/174 of 5 July 2010 as at the
time of reporting in contravention of Section 29 of Act 584 which
requires organizations to respond to audit reports within a period of 30
days after receipt. These were suggestive that the ARIC was inactive.
822. For prompt implementation of recommendations and
ratifications of identified weaknesses in audit and other monitoring
reports, we recommended and management agreed to make the ARIC
more responsive to its functions.
MINISTRY OF INTERIOR
NATIONAL DISASTER MANAGEMENT ORGANISATION
Introduction
823. This report is related to the audited accounts of the National
Disaster Management Organisation (NADMO) for the period 1
January 2009 to 31 December 2010.
170 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Operational performance
824. Total Income registered an increase of 87.5% from
GH¢15,185,342.97 in 2009 to GH¢28,478,800.78 in 2010. This was
largely as a result of increase in Donations and Grants by 219.2% to
alleviate the plight of flood victims. Subvention also increased by
35.4% from GH¢10,493,100.97 in 2009 to GH¢14,206,214.26 in
2010. The performance indicators are shown in Table58
Table 58: Comparative income statement for 2010 and 2009
Revenue 2010
GH¢
2009
GH¢
%
Change
Subvention 14,206,214.26 10,493,100.97 35.4
Donations & Grants 14,071,845.00 4,408,274.00 219.2
USD Account 200,741.52 283,968.00 (29.3)
Total Income 28,478,800.78 15,185,342.97 87.5
Expenditure
Personnel Emolument 6,104,209.84 5,202,635.07 17.3
Service Expenditure 18,366,239.75 8,200,899.86 124.0
Administrative
Expenditure
3,738,961.55 2,363,395 58.2
Total Expenditure 28,209,411.14 15,766,930.17 78.9
Surplus/Deficit 269,389.64 (581,587.20) (146.3)
825. Expenditure over the year similarly registered a rise of 78.9%
from GH¢15,766,930.17 in 2009 to GH¢28,209,411.14 in 2010. This
was as a result of increase in Service Expenditure which recorded an
upsurge of 124.0% over the previous year, from GH¢8,200,899.86 in
2009 to GH¢18,366,239.75 in 2010 due to increase in expenditure on
relief items over the period under consideration. Administrative
Expenditure also recorded an increase of 58.2% from
GH¢2,363,395.24 in 2009 to GH¢3,738,961.55 in 2010.
826. An operational surplus of GH¢269,389.64 was registered
during the year as compared with a deficit of GH¢581,587.20
recorded in 2009.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 171 Other Statutory Institutions for the period ended 31 December
Financial Position
827. NADMO’s financial position is shown in Table 60.
Table 60: Financial position as at 31 December 2010
828. Non-current assets of the NADMO stood at GH¢796,084.94 in
2010 compared with GH¢545,773.10 in 2009, registering a growth of
45.9%. The increase in fixed assets was as a result of acquisitions of
land, equipment, computers, motor vehicles, fixtures and fittings and
motor bikes.
829. Current assets rose from GH¢42,799.00 in 2009 to
GH¢62,876.81 in the current year, representing an increase of 43.6%.
This was due to a 56.3% rise in the cash at bank balance.
830. Current liabilities remained the same for the two years
reviewed. Though we recommended in our previous management
letter that management should investigate and take appropriate action
on the liability which stood in the name of Ministry of Food and
Agriculture since 2003, no action has been taken. We urged
management to take the appropriate steps for the financial statements
to give a true and fair view of the state of affairs.
831. The liquidity position as depicted by the current ratio 0.9:1 was
unhealthy as NADMO would not be in a position to meet its current
liabilities when they fall due.
2010
(GH¢)
2009
(GH¢)
%
Increase/
Decrease
Non-current Assets 796,084.94 545,773.10 45.9
Current Assets
Debtors 9,901.60 9,901.60 -
Cash at bank 52,975.21 33,897.40 56.3
Current Liabilities 72,000.00 72,000.00 -
Net Assets 786,961.75 517,572.10 52.1
172 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF COMMUNICATIONS
POSTAL AND COURIER SERVICES REGULATORY
COMMISSION
Introduction
832. This report relates to the audited accounts of the Postal and
Courier Services Regulatory Commission for the period 1 January
2010 to 31 December 2011.
Operational results
833. Total income increased by 5.6% from GH¢312,636 the
previous year to GH¢330,288 in 2011 as a result of increase in
Internally Generated Funds (IGF) by 68.1%. The rise in IGF was
mainly due to a 110.0% increase in revenue derived from license fees
and forms which amounted to GH¢143,300 in 2011 as against
GH¢68,250 in 2010. Table 61 shows the performance indicators.
Table 61: Performance indicators for 2011 and 2010
Income 2011
GH¢
2010
GH¢
%
Change
Subvention 179,472 222,903 (19.4)
IGF 150,816 89,734 68.1
Total 330,288 312,636 5.6
Expenditure
Personnel emoluments 121,883 111,470 9.3
Admin Expenses 226,637 193,470 17.1
Service Activity 32,310 68,262 (52.7)
Total 380,830 373,202 2.0
Deficit 50,542 60,566 16.5
834. Total expenditure increased by 2.0% from GH¢373,202 in
2010 to GH¢380,830 in 2011. This was due to a rise in administrative
activity expenditure by 17.1%, occasioned largely by an increase of
35.8% in P.E. related allowance.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 173 Other Statutory Institutions for the period ended 31 December
835. The Commission’s operations for 2011 ended with a deficit of
GH¢50,542 as against GH¢60,565.64 in 2010, representing a
reduction of 16.5% in the deficit.
Financial Position
836. The Commission’s Fixed Assets decreased by 7.1%, from
GH¢92,228 in 2010 to GH¢85,676.00 in 2011. This was due to the
acquisition of lesser valued asset as compared to a higher valued asset
which was disposed off at a loss.
837. Similarly, current assets reduced by 45.5% from GH¢111,468
in 2010 to GH¢60,750 in 2011, due to the re-call of the Commission’s
account at Ecobank.
838. Current liability also decreased by 41.5% from GH¢13,681.64
in 2010 to GH¢7,997 in 2011 due to part settlement of the tax
liability.
839. The solvency of the Commission, shown by a current ratio of
7.6:1 meant that the Commission is in a position to discharge its short
term obligation which is mainly withheld tax and we recommended
that management should discharge this liability without delay.
MANAGEMENT ISSUE
Non-payment of withheld tax - GH¢7,997.00
840. Our examination of payment vouchers revealed that out of
withheld taxes amounting to GH¢13,681.64 in the 2010 and 2011
financial years, management remitted GH¢5,685.00 to the
Commissioner, DTRD of the GRA in 2011, leaving a balance of
GH¢7,997.00 as at 2011.
841. The above practice contravened Section 87 of the Internal
Revenue Act, 2000 (Act 592), which states that withheld taxes should
be remitted to the district tax office within 15 days after the end of the
month in which the eligible payments from which the taxes were
deducted.
174 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
842. The delay in remitting the tax denied the state of much needed
revenue. Management explained that the Commission was not able to
pay the tax promptly because government subvention was woefully
inadequate.
843. To improve inflows into the Consolidated Fund, we advised
management to desist from delays in remitting the tax and ensure
payment within the stipulated time.
844. Management promised to meet with the DTRD to negotiate
payment terms for the outstanding tax.
Non-withholding of tax - GH¢3,147.21
845. Section 84(1b) of the Internal Revenue Act, 2000 (Act 592)
stipulates among others that where a resident person other than an
individual pays fees emoluments and any other benefits to a resident
Director, Manager or Board Members a company or body of persons,
the person making the payment shall withhold tax on the gross
amount of the payment at 10%.
846. On the contrary, we noted that the Accountant failed to deduct
the appropriate taxes amounting to GH¢1,270.57 and GH¢1,876.64 in
2010 and 2011 respectively from allowances and bonus paid to
Commissioners and staff of the Commission.
847. The non-compliance with the tax law would result in the loss of
tax revenue to the state. We attributed the omission to the accounting
officer not being aware of the tax law.
848. We advised management to be abreast with the tax law and act
accordingly. We also recommended that management should remit
the total amount of GH¢3,147.21 to the tax authority and recover
same from the affected persons in accordance with Section 88(1) of
Act 592.
849. Management accepted the recommendations.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 175 Other Statutory Institutions for the period ended 31 December
MINISTRY OF ENERGY AND PETROLEUM
GHANA NATIONAL PETROLEUM CORPORATION
Introduction
850. This report relates to the audited accounts of the Ghana
National Petroleum Corporation for the year ended 31 December
2011.
Operational result
851. The Corporation’s operations for the year under review ended
with a surplus of GH¢386,568,708, compared with a 2010 surplus of
GH¢11,077,750, an increase of 3,389.6%. The performance indicators
are shown in Table 62.
Table 62: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Sales Revenue 686,301,032 - -
Gov’t Royalty (189,808,531) - -
Net Sales 496,492,501 - -
Cost of Sales (54,308,652) - -
Gross Earnings 442,183,849 - -
(Loss)/Profit from Refined
Products Trading
(39,356,747) 7,511,574 (623.9)
Non-Trading Income 23,411,937 23,168,018 1.1
Total Income 426,239,039 30,679,592 1,289.3
Expenditure
Adm. & Gen. Expenses 39,670,331 19,610,842 102.4
Total Expenditure 39,670,331 19,601,842 102.4
Surplus 386,568,708 11,077,750 3,389.6
852. Total income rose by 1,289.3% from GH¢30,679,592 in
2010 to GH¢426,239,039 in 2011. This was due to a GH¢686,301,032
sale of crude oil from the jubilee Field recorded in 2011 as against
none in 2010. Out of this, a total amount of GH¢189,808,531 was paid
to Government of Ghana as royalties. The cost of sales of the Jubilee
176 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
crude oil was GH¢54,308,652 as result of which the gross earnings
from the sale of the Jubilee crude was GH¢442,183,849.
853. Total expenditure made up of only administrative and
general expenses increased by 102.4% for the year 2011 as compared
to the year 2010. The major cause of increase in the administrative
and general expenses was mainly due to a significant increase in
expenditure on foreign travels, insurance, legal fees and staff training.
Financial position
854. The highlights of the Corporation’s financial position are
presented in Table 63.
Table 63: Balance sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 273,701,004 170,413,682 60.6
Current Assets 265,141,512 837,320,958 (68.3)
Current Liabilities 225,072,494 921,081,426 (75.6)
Non-Current Liabilities 53,373,908 150,407,027 (64.5)
Net Assets 313,770,022 86,653,214 262.1
Current Ratio 1.2:1 0.9:1
855. Non-current assets rose by 60.6% from GH¢170,413,682 in
2010 to GH¢273,701,004 in 2011. This was due mainly to a 64.1%
rise in Petroleum Projects during the year.
856. Current assets of the Corporation declined by 68.3% from
GH¢837,320,958 in 2010 to GH¢265,141,512 in 2011. Significant
decreases in crude stocks (100%) and short term investment
(37,047.0%) accounted for the fall.
857. Current liabilities also decreased by 75.6% from
GH¢921,081,426 in 2010 to GH¢225,072,494 in 2011. This was due
to significant reduction in short-term loan facilities contracted from
BNP Paribas, Stanbic Bank Ghana and Ghana International Bank.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 177 Other Statutory Institutions for the period ended 31 December
858. Non-Current liabilities fell by 64.5% from GH¢150,407,027 in
2010 to GH¢53,373,908 in 2011. This was as a result of a reduction in
a medium term loan from Jubilee Partner Financing.
859. Net Assets grew by 262.17% from GH¢86,653,214 in 2010 to
GH¢313,770,022 in 2011.
860. The liquidity status of the Corporation as depicted by the
current ratio of 1.2:1 (2010: 0.9:1) is unhealthy. This is an indication
that the Corporation might not be in a position to meet its short-term
obligations as and when they fall due.
MANAGEMENT ISSUES
Indebtedness of Sage Petroleum Limited - GH¢2,125,347
861. During the review of trade debtors we observed that Sage
Petroleum Limited owes GNPC a total amount of GH¢2,125,347.
However, Sage Petroleum Limited by the letter dated 5 April 2012
accepted liability of GH¢2,125,347 but categorically stated that it had
discharged all its obligations under the said transaction.
862. Following from the disputes, GNPC made an appeal to
National Petroleum Authority (NPA) for arbitration but as at the time
of our audit no conclusion had been communicated to GNPC.
863. We advised management to follow up on the appeal made to
NPA and take the necessary action to recover the debt in order to
save the Company from any financial distress.
864. Management however indicated that the arbitration process is
far advanced with the likely event that the corporation will be
successful in recovering the debt.
ENERGY COMMISSION
Introduction
865. This report relates to audited accounts of the Energy
Commission for the year ended 31 December 2011.
178 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Operational results
866. The operational performance for the Commission is shown in
Table 64.
Table 64: Income statement for 2011
Item 2011
GH¢
2010
GH¢
%
Change
Revenue Grants 6,493,897 5,881,182 10.4
Other Income 80,137 109,788 (27.0)
Total Income 6,574,034 5,990,970 9.7
Expenditure
Personnel Emoluments 2,313,461 1,482,381 56.1
Admin. & General Expenses 2,315,779 1,816,869 27.5
Service Activity Expenses 1,978,098 1,393,432 42.0
Total Expenditure 6,607,338 4,692,682 40.8
Surplus / (Deficit) (33,304) 1,298,288 (102.6)
867. Total Income rose by 9.7% from GH¢5,990,970 in 2010 to
GH¢6,574,034 in 2011. This was mainly due to a 10.4% rise in
Revenue Grants. Revenue Grants was made up of subvention from
Government of Ghana, Transfer from Energy Fund, Transfer from
Regulatory Levy Account, and Capital Grant Amortised.
868. Total Expenditure registered a 40.8% rise from GH¢4,692,682
in 2010 to GH¢6,607,338 in 2011. The 56.1% rise in Personnel
Emoluments was as a result of a 51.3% increase in Gross Pay from
GH¢1,384,168 in 2010 to GH¢2,094,737 in 2011 and increases in
Employer’s SSNIT Contribution from GH¢98,213 in 2010 to
GH¢167,702 in 2011.
869. The rise in Administrative and General Expenses was mainly
due to increase in Commissioners’ allowances from GH¢220,768 in
2010 to GH¢324,805 in 2011, a rise of 47.1%.
870. Service Activity expenses which rose by 42.0% was due to a
57.9% increase in Renewable Energy Divisions activities from
GH¢206,859 in 2010 to GH¢326,619 in 2011.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 179 Other Statutory Institutions for the period ended 31 December
871. The year ended with a deficit of GH¢33,304 as against a
surplus of GH¢1,298,288 in 2010 representing a decrease of 102.6%.
Financial position
872. A summary of the Commission’s financial position as at
31 December 2011 is shown in Table 65.
Table 65: Balance sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 757,731 896,706 (15.5)
Current Assets 2,109,868 1,486,291 42.0
Current Liabilities 309,553 270,909 14.3
Net Current Assets 1,800,315 1,215,382 48.1
Net Assets 2,558,046 2,112,088 21.1
Current Ratio 6.8:1 5.5:1
873. The Commission’s non-current assets went down by 15.5%
from GH¢896,706 in 2010 to GH¢757,731 in 2011. This was as a
result of transferring Fixed Deposit Investments from Non-Current
Assets to Current Assets.
874. Following from the above, current assets recorded an increase
of 42.0% from GH¢1,486,291 in 2010 to GH¢2,109,868 in 2011.
875. Current liabilities went up by 14.3% from an amount of
GH¢270,909 in 2010 to GH¢309,553 in 2011. The increment was as a
result of a Bank Overdraft facility taken within the year.
876. Net Assets grew by 21.1% from GH¢2,112,088 in 2010 to
GH¢2,558,046 in 2011.
877. The Commission’s liquidity position of 6.8:1 in 2011 (2010:
5.5:1) showed its ability to pay its short term debts when they are due.
180 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MANAGEMENT ISSUES
Deposit for land – GH¢135,000
878. We observed that an amount of GH¢135,000 was paid to a
landlord in respect of land for office building at Tesano by the
Commission. The deal to acquire the land did not materialise. The
assurance received from the land owners was that the amount would
be refunded but this had not been done. As such, the recoverability of
this amount is doubtful.
879. We however recommended that effort should be made to
recover the amount from the land owners so that it could be used to
meet other operational activities of the Commission.
Staff debtors – GH¢5,121
880. We noted that an amount of GH¢5,121 was owed by ex
members of staff of the Commission. However for several years now
there has been no movement in these balances. The amount might not
be recoverable leading to an inflated debtor’s balance thereby not
reflecting fair reporting.
881. We recommended that the recovery of these debts should be
pursued and in future measures should be put in place to avert such
recurrences of losing public funds.
Accounts payable – GH¢150,000
882. We observed during the audit that an amount of GH¢150,000
was released by the Ministry of Energy to the Commission to meet its
budgetary requirements following a request by the Commission. This
amount has been in the books since 2009 and no effort had been made
for its pay back.
883. The status of this amount is unclear and this has hindered any
proper accounting treatment.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 181 Other Statutory Institutions for the period ended 31 December
884. We recommended that a follow-up should be made to the
Ministry to confirm the status of the amount to enable appropriate
action to be taken for fair reporting so as to enhance decision making.
Receipts for licenses and permits
885. During our audit, we noted instances of delays in the issuance
of notices or debit notes to clients prompting them to make payment
for the renewal of their licenses. Some clients also took unduly long
time in honoring demands made on them for the renewal of licenses
and permits.
886. There is every indication that cash inflows of the Energy
Fund might be adversely affected.
887. We recommended that mechanisms should be put in place
to ensure that debit notes are sent to clients on timely basis and
prompt follow-up should be made on clients to honor their
obligations.
NATIONAL PETROLEUM AUTHORITY
Introduction
888. This report relates to the audited accounts of the National
Petroleum Authority for the year ended 31 December 2011.
Operational Results
889. The Authority’s operations for the year under review ended
with a surplus of GH¢13,035,721 compared with 2010 surplus of
GH¢12,935,200, representing an increase of 0.8%. The performance
indicators are shown in Table 66.
182 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 66: Income statement for 2011
Item 2011
GH¢
2010
GH¢
%
Change
Income 20,424,187 17,668,571 15.6
Other Income 3,238,197 820,291 294.8
Total Income 23,662,384 18,488,862 28.0
Expenditure
General & Admin.
Expenses
9,759,230 5,351,023 82.4
Operating Cost 867,433 202,639 328.1
Total Expenditure 10,626,663 5,553,662 91.4
Surplus / (Deficit) 13,035,721 12,935,200 0.8
890. Total Income went up by 28.0% from GH¢18,488.862 in 2010
to GH¢23,662,384 in 2011. Increases in License Fees, Bulk Oil
Storage License, Unified Petroleum Price Fund (UPPF) Service
Charges and Authorisation Fees accounted for the increase in Income.
An upsurge in Investment Income, Penalty Fees and Tender
Document Fees on the other hand accounted for the rise in Other
Income.
891. Total Expenditure for the year increased by 91.4% from
GH¢5,553,662 in 2010 to GH¢10,626,663 in 2011. The major items
which accounted for the increase in Expenditure were Salaries and
Allowances (74.2%), Staff Bonus (101.8%), Telephone, Postage &
Internet (93.2%), Staff Training & Training & Seminars (162.4%) and
Quality Control & Monitoring (1,664.6%).
Financial Position
892. A summary of the Authority’s financial position as at 31
December 2011 is shown in Table 67.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 183 Other Statutory Institutions for the period ended 31 December
Table 67: Balance Sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 759,770 491,508 54.6
Current Assets 35,532,616 25,487,393 39.4
Current Liabilities 2,089,902 4,812,138 (56.6)
Net Current Assets 33,442,714 20,675,255 61.8
Non-Current Liabilities 400,000 400,000 -
Net Assets 33,802,484 20,766,763 62.8
Current Ratio 17.0:1 5.3:1
893. The Authority’s Non-Current Assets went up by 54.6% from
GH¢491,508 in 2011 to GH¢759,770 in 2011. This was mainly due to
acquisitions during the year.
894. Current Assets recorded an increase of 39.4% from
GH¢25,487,393 in 2010 to GH¢35,532,616 in 2011. Significant
increases in Advances and Prepayment, Short Term Investment and
Cash and Bank Balance accounted for the increase.
895. Current Liabilities on the other hand declined from an amount
of GH¢4,812,138 in 2010 to GH¢2,089,902 in 2011 to register a
decrease of 56.6%. The decrease was due to reductions in Accruals
and Accounts Payable.
896. The Authority’s liquidity position of 17.0:1 in 2011 (2010:
5.3:1) showed its ability to pay its short-term debts when they are due.
MANAGEMENT ISSUES
Trade debtors - GH¢26,152
897. We observed that an amount of GH¢26,152 owed by Energy
Commission in 2010 was still outstanding as at the time of reporting
898. This if not collected will result in less cash flow needed for the
running of the Authority.
184 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
899. We recommended that management should recover the amount
owed by the Energy Commission.
900. Management indicated that the amount is recoverable and some
discussions have been initiated towards resolving the issue.
Management added that NPA will do barter trade with Energy
Commission in terms of some services that the latter can provide to
the Authority.
Overpayment of motor-vehicles acquired - GH¢25,494.96
901. We observed that there was an overpayment of GH¢25,494.96
to Western Automobile Ghana Ltd. This resulted from the
overpayment of GH¢6,379.69 on each of the 4 Toyota Corolla
vehicles which were purchased. The cost per one vehicle as stated in
the contract agreement is GH¢42,491.29 but each vehicle has been
capitalised at GH¢48,864.98.
902. This has negatively impacted on the cash position of the
Authority as funds which could have been used to meet its operational
activities had been locked up with unintended recipients.
903. We recommended that management should make strenuous
efforts to recover the difference.
GHANA GRID COMPANY LIMITED
Introduction
904. This report covers the audited accounts of the Ghana Grid
Company Limited for the year ended 31 December 2011.
Operational Results
905. Total revenue received for the year under review increased by
42.4% from GH¢167,139,000 in 2010 to GH¢237,978,000. The
major component of this which is the transmission income increased
significantly from GH¢164,950,000 in 2010 to GH¢235,563,000 in
2011, resulting from an increase in energy transmission of 9808 GWh
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 185 Other Statutory Institutions for the period ended 31 December
in 2010 to 10,800 GWh in 2011. The other components of the
revenue made up of Other Income went down by 2.5% whilst Finance
Income however rose by 35.6% in the year under review. The
performance indicators are down in Table 68.
Table 68: Statement of Comprehensive Income for 2011
2011
H¢000
2010
GH¢000
%
Change
Revenue 235,620 164,950 42.8
Direct Costs (114,615) (88,501) 29.5
Gross Profit 121,005 76,449 58.3
Other Income 1,562 1602 (2.5)
Administrative Exp. (36,281) (16,553) 119.2
Operating Profit 86,286 61,498 40.3
Finance Costs (3,231) (3,046) 6.1
Finance Income 796 587 35.6
Profit before taxation 83,851 59,039 42.0
Taxation 0 0
Profit after taxation 83,851 59,039 42.0
906. Total Expenditure of the Company for the 2011 amounted to
GH¢154,127,000 compared with GH¢108,100,000 recorded in 2010,
an increase of 42.6%. Direct operating costs went up by 29.5% from
GH¢88,501,000 in 2010 to GH¢114,615,000 in 2011. The increase
was largely due to a 74.8% increase in staff cost and a 58.3% increase
in maintenance and other spares consumed.
907. Administrative expenses also rose significantly by 119.2%.
This was due to increases in staff cost from GH¢9,240,000 in 2010 to
GH¢14,625,000 in 2011.
908. Transport and other administrative cost and exchange loss were
the other components that contributed to the increase in
Administrative Expenses.
909. Profit after taxation registered a significant increase of 42.0%
from GH¢59,039,000 in 2010 to GH¢83,851,000 in 2011.
186 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial Position
910. The financial position of the Company is sumarised in Table
69.
Table 69: Balance sheet as at 31 December 2011
2011
GH¢ 000
2010
GH¢ 000
%
Change
Non-Current Assets 621,068 489,154 27.0
Current Assets 237,222 116,701 103.3
Current Liabilities 90,741 45,923 97.6
Non-Current Liabilities 159,913 95,697 67.1
Current ratio 2.6:1 2.5:1
911. Non-Current Assets increased by 27.0% from GH¢489,154,000
in 2010 to GH¢621,068,000 in 2011. The Non-Current Assets
included fixed assets and investments. The increase was due to the
acquisition of fixed assets within the year and gross valuation
adjustments on fixed assets.
912. Current Assets rose by 103.3% from GH¢116,701,000 in 2010
to GH¢237,222,000 in 2011. Increases in Inventories, Trade
Receivables, Prepaid Expenses, Staff Advances, and Cash and Bank
Balances accounted for the rise in Current Assets.
913. Current Liabilities also recorded a significant increase of
97.6% from GH¢45,923,000 in 2010 to GH¢90,741,000 in 2011. This
resulted from increases in Trade and Other Payables and Current
Financial Liabilities (i.e. Loans due within one year).
914. The current ratio of Ghana Grid Company Limited improved
marginally from 2.5:1 in 2010 to 2.6:1 in 2011, an indication that the
Company can meet its short-term obligations when they fall due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 187 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
TAKORADI AREA OFFICE
Fuel Shortage – 908 litres
915. A review of monthly fuel dipping report compared with book
balances revealed that, Prestea had been experiencing fuel shortages
almost every month. The details are shown below:
Date of
Fuel
Dipping
Physical
Stock Qty
Book Stock
Bal.
Shortage in
(litres)
2/2/2011 3800 4059 259
10/5/2011 3500 3595 95
2/6/2011 1200 1232 32
4/7/2011 7000 7522 522
Total 908
916. This may be indicative of a faulty metering being used or
unapproved fuel issues.
917. The persistent experience of such shortages may result in losses
to the Company.
918. We therefore recommended that management should
investigate the cause of the shortages, apportion blame and recover
where necessary and also take appropriate measures to address it.
919. Management responded that a group of technical men from
GOIL were sent to Prestea in August 2011 to work on the pump.
Also, a supervisor has been tasked to closely monitor the fuel issues at
Prestea.
Fuel Issues made without approval
920. We observed that fuel issued out and signed for as received by
users departments were not authorized.
Below are details of the issues.
188 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Requisition Coupon Description Vehicle
Date 1Number Number
7/10/11 9852 120 litres of diesel GT 9589 Z
8/10/11 9853 68 litres of diesel GT 2159-10
9/10/11 9854 67 litres of diesel GT 2246-10
10/10/11 9855 71 litres of diesel GN 4372 Y
12/10/11 9857 70 litres of diesel GN 2159 -10
13/10/11 9862 70 litres of diesel GN 4372 Y
15/10/11 9865 57 litres of diesel GT 2159-10
16/10/11 9869 66 litres of diesel GT 2160-10
17/10/11 9871 80 litres of diesel GN 4372 Y
921. Poor supervision over the transport unit by management was
accountable for the lapse which could facilitate the use of fuel not for
furtherance of the Company’s programme but for personal gain. To
ensure proper accountability of the use of fuel, users should obtain
approval for stores requisition prior to presenting the requisition to
stores for issues.
922. The Finance Officer responded that, the area always ensures
that fuel coupon is authorized before issue. However since there is
only one authorising officer for the area, his absence normally results
in fuel issued without authorization adding that another officer would
be empowered to authorise fuel issues in the absence of the
substantive area manager.
Head Office
No evidence of transmission service agreement
923. Out of 29 customer files reviewed, we observed that there was
no evidence of signed transmission service agreement between
GRIDCO and its customers. Details are shown below.
Name of Customer Name of Customer
VRA AK Textiles
ECG Owere Mines
Goldfields New Century
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 189 Other Statutory Institutions for the period ended 31 December
Name of Customer Name of Customer
Sonabel World Cool
VALCO Diamond Cement
Newmont Nat Comm Back
ILDC TV3 Network
Volta Hotel P. Township
Golden Star Free Zone Board
GH. Consolidate CIE
924. The effect is that resolving future dispute over service tariffs
may be difficult where service agreements are not available.
925. We therefore recommended that, transmission service
agreement be signed with customers in order to avoid dispute over
transmission service billing.
926. Management responded that, agreements for ECG and
SONABEL have been completed and signed after the audit field work
while draft agreements for the other customers have been discussed
and are being finalized for signature.
KUMASI AREA OFFICE
Stores issue made without approval
927. We noted that the following litres of diesel and lubricants were
issued out of stores and signed for as received by user departments but
no authorisation obtained for such issues:
Requisition Requisition Description Coupon Vehicle
Date Number Number Number
28/3/11 Not applicable 75 litres of diesel 9386 GT 2245-10
6/10/11 1111200 2 litres of lubricants 0017414 GW 594 P
6/10/11 1111201 3 litres of lubricants 0017415 GW 594 S
8/10/11 1111205 1 litres of Lubricants 0017416 GW 594 P
9/10/11 1111206 2 litres of lubricants 0017417 GW 5398 S
10/10/11 1111206 1 litres of lubricants 0017418 GS 1282 Y
928. Poor supervision over the storekeeper by management was
attributed to the lapse which could be exploited to divert store items
resulting in losses. This could impact negatively on the operations of
the Company.
190 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
929. To ensure proper accountability of store items, we
recommended that requisition for store items should be duly
authorized by the responsible senior management officer before issues
are made.
930. According to management it would ensure that in the absence
of the manager, the Acting Manager should be readily available to
approve requisition before issues are made.
BULK OIL STORAGE TRANSPORTATION
COMPANY LIMITED (BOST)
Introduction
931. This report relates to the audited accounts of Bulk Oil Storage
Transportation Company Limited (BOST) for the year ended 31
December 2010.
Operational result
932. The Company’s operations for the year under review ended
with a surplus of GH¢17,876,333 compared with a deficit of
GH¢91,148,485 in 2009, a decrease of 119.6%. The performance
indicator is shown in Table 70.
Table 70: Income statement for 2010
Income 2010
GH¢
2009
GH¢
%
Change
Turnover 681,311 90,110,677 (99.2)
Cost of sales 681,311 122,535,508 (99.4)
Gross Profit (loss) - (32,424,831) (100.0)
Other Income 108,832,938 76,392,682 42.5
Total Income 108,832,938 43,967,851 147.5
Expenditure
Finance Charges 40,321,870 37,003,265 9.0
Sell, Gen & Adm. Exp. 50,634,735 98,113,071 (48.4)
Total Expenditure 90,956,605 135,116,336 32.7
Net Profit (Loss) 17,876,333 (91,148,485) (119.6)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 191 Other Statutory Institutions for the period ended 31 December
933. Total Turnover for the year decreased by 99.2% from
GH¢90,110,677 in 2009 to GH¢681,311 in 2010. The fall in Turnover
was caused by decreases in Petrol GH¢355,649 (2009:
GH¢17,140,613), Diesel: GH¢325,662 (2009: GH¢72,967,731) and
Kerosene nil (2009: GH¢2,333) during the year.
934. Cost of sales also decreased by 99.4% from GH¢122,535,508
in 2009 to GH¢681,311 in 2010. Finance charges which comprised
interest on Bank overdraft, loans, finance lease and trade Finance cost
increased by 9.0% from GH¢37,003,265 in 2009 to GH¢40,321,870 in
2010. Selling, General and Administrative Expenses decreased by
48.4% from GH¢98,113,071 in 2009 to GH¢50,634,735 in 2010.
However the 42.5% increase in Other Income from GH¢76,392,682 in
2009 to GH¢108,832,938 led to a surplus of GH¢17,876,333.
Recurrent grant income, BOST Margin, Haulage Expenditure Refund
and Pipe Line and Loading Rack Fee accounted for 84.0% of other
income.
Financial position
935. The statement of financial position for the Company is
presented in Table 71.
Table 71: Assets and Liabilities as at 31 December 2010 Item 2010
GH¢ 2009 GH¢
% Change
Non-Current Assets 289,133,519 264,221,770 9.4
Current Assets 148,473,572 135,092,294 9.9
Current Liabilities 280,702,340 246,038,102 14.1
Net-Current Liabilities (132,228,768) (110,945,808) 19.2
Net Assets 156,904,751 153,275,962 2.4
Current Ratio 0.5:1 0.5:1
936. Non Current Assets, which stood at GH¢289,133,519 at the
close of 2010 increased from GH¢264,221,770 in 2009 by 9.4%. The
increase was due to additions to property, plant and equipment.
937. Current assets which was made up of Inventories, Accounts
Receivables and Prepayments, Marketable Securities, Bank and Cash
Balance increased by 9.9% from GH¢135,092,294 in 2009 to
192 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
GH¢148,473,572 in 2010. Accounts Receivables and Prepayment
largely accounted for the rise.
938. Current liabilities also increased by 14.1% from
GH¢246,038,102 in 2009 to GH¢280,702,340 in 2010. This was due
mainly to increases in Accounts Payable and Accruals, Short Term
Loans and Bank Overdraft.
939. The Company’s liquidity ratio at the end of 2010 was 0.5:1
(2009: 0.5:1). The ratio shows that the Company may not be in a
position to meet its short term liabilities as and when they fall due.
UNIFIED PETROLEUM PRICE FUND
Introduction
940. This report relates to the audited accounts of the Unified
Petroleum Price Fund (UPPF) for the year ended 31 December 2011.
Operational Results
941. The fund registered an excess expenditure over income of
GH¢9,517,362 for the financial year ended 31 December 2011 as
against a Surplus of GH¢8,669,124 recorded in 2011 representing a
decrease of 209.8%. Provided in Table 72 are the details of the
performance.
Table 72: Income statement for 2011 Item 2011
GH¢
2010
GH¢
%
Change
Fund Income 152,510,341 137,268,636 11.1
Other Income 4,798,086 6,565,286 (26.9)
Total Income 157,308,427 143,833,922 9.4
Expenditure
Freight Charges 157,446,581 127,369,074 23.6
Levy/Charges on Fund 8,698,374 7,406,411 17.5
General & Admin. Expenses 680,834 389,313 74.9
Total expenditure 166,825,789 135,164,798 23.4
(Deficit/Surplus (9,517,362) 8,669,124 (209.8)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 193 Other Statutory Institutions for the period ended 31 December
942. The Fund’s Income increased by 9.4% to GH¢157,308,427
(2010: GH¢143,833,922). Fund Income which constituted 96.9% of
Total Income largely accounted for the rise. This resulted from
hauling petroleum products to various destinations in the Country.
Other Income however, fell by 26.9% due to reductions in Investment
Income and Interest on Call Account.
943. Total Expenditure for the period rose by 23.4%, from
GH¢135,164,798 in 2010 to GH¢166,825,789. The increase in Freight
Charges was due to increases in Freight Payable and Verification and
Inspection cost. The increases in Salary & Allowances, Staff Medical,
Staff Training and Staff Bonus largely accounted for the increase in
General and Administrative Expenses.
Financial Position
944. A sumarised balance sheet of the Fund as at 31 December 2011
is provided in Table 73.
Table 73: Balance sheet as at 31 December 2011
Item 2011
GH¢
2011
GH¢
%
Change
Non-Current Assets 17,871 25,213 (29.1)
Current Assets 38,402,223 53,765,286 (28.6)
Current Liabilities 8,661.368 14,514,411 (40.3)
Net Current Assets 29,740,856 39,250,875 (24.2)
Net Assets 29,758,726 39,276,088 (24.2)
Current Ratio 4.4:1 3.7:1
945. Non-Current Assets dropped by 29.1% from GH¢25,213 in
2010 to GH¢17,871 in 2011 due to depreciation charge for the year.
946. Current Assets decreased from GH¢53,765,286 in 2010 to
GH¢38,402,223 in 2011, recording a fall of 28.6%. Significant
reductions in Accounts Receivable, Short Term Investment and Cash
and Bank Balance accounted for the fall.
947. Current Liabilities also fell by 40.3% from GH¢14,514,411 in
2010 to GH¢8,661,368 in 2011, due to decreases in Accounts Payable
and Accruals.
194 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
948. The Fund had enough resources to meet its short-term debts as
and when they fall due as the current ratio for the year stood at 4.4:1
(2010: 3.7:1).
ENERGY COMMISSION – ENERGY FUND
Introduction
949. This report relates to the audited accounts of the Energy Fund
of Energy Commission for the year ended 31 December 2011
Operational results
950. The fund registered an excess income over expenditure of
GH¢299,742 for the financial year ended 31 December 2011 as
against a surplus of GH¢139,106 recorded in 2010, representing an
increase of 115.5%. Provided in Table 74 are the details of the
performance.
Table 74: Income statement for 2011 2011
GH¢ 2010 GH¢
% Change
Resources
Bank Bal. at 1st Jan. 139,106 322,865 (56.9)
Project Account 3,861 - -
Petroleum Levy 1,326,646 1,142,775 16.1
Fees from Permits& Licenses 1,817,623 1,333,018 36.4
Other Income 16,107 19,215 (16.2)
Total Resources 3,303,343 2,817,873 17.2
Disbursement Promotion of Energy Efficiency and Productive uses of Electricity
888,441 523,623 69.7
Renewable Energy Resources including Solar Energy
315,197 216,655 45.5
Human Resource Development in the Energy Sector
301,783 176,572 70.9
Other Relevant Expenditure 1,498,179 1,761,849 (15.0)
Bank Charges 1 68 (98.5)
Total Disbursement 3,003,601 2,678,767 12.1
Bank Bal. at 31st Dec. 299,742 139,106 115.5
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 195 Other Statutory Institutions for the period ended 31 December
951. Total Resources received for the year under review increased
by 17.2% from GH¢2,817,873 in 2010 to GH¢3,303,343 in 2011.
952. This was due to a 16.1% rise in releases from Petroleum Levy
Account and a 36.4% rise in fees from Permits and Licenses.
953. Total Disbursements went up by 12.1% from GH¢2,678,767 in
2010 to GH¢3,003,601in 2011. The major items which accounted for
the increase in Disbursements were Promotion of Energy Efficiency
and Productive uses of Electricity which rose by 69.7%, Renewable
Energy Resources including solar energy which increased by 45.5%
and Human Resource Development in the Energy Sector which
increased by 70.9%.
Financial position
954. The financial position of the Energy Fund is sumarised in
Table 75.
Table75: Assets and liabilities as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Current Assets 299,742 142,967 109.7
Current Liabilities - 3,861 (100.0)
Net Current Assets 299,742 139,106 115.5
Current Ratio - 37:0:1
955. Current Assets increased by 109.7% from GH¢142,967 in 2010
to GH¢299,742 in 2011. This was due mainly to a 106.3% rise in
Bank Balances.
956. There were no current liabilities at the year end.
957. Hence, the Fund’s liquidity position shows that there is enough
funds to settle any liability that arises.
196 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF FINANCE AND ECONOMIC
PLANNING
RURAL AND AGRICULTURAL FINANCE PROGRAMME
Introduction
958. This report is on the audited financial statement of the Rural
and Agricultural Finance Programme of Ministry of Finance and
Economic Planning for the financial years ended 31 December 2010
and 2011.
Operational results
959. Total funds received fell marginally from US $1,600,922 in
2010 to US $1,600,852 in 2011, a decrease of US $70 due to no
contribution made to the fund by GOG in the year under review.
IFAD Loan of US $1,500,000 in 2010 was initial deposit whilst in
2011 only US $27,076 was replenished, thereby creating artificial
decrease of 98%. Other Income on the other hand went up
significantly by 781% from US $922 in 2010 to US $8,126 in 2011
due largely to huge interest earned on investment accounts.
960. Table 76 shows sources and uses of funds during the review
period.
Table 76: Income statement for 2011
Sources of Funds
2011
US $
2010
US $
%
Change
Balance as at 1 January 1,565,650 - -
IFAD Loan 27,076 1,500,000 (98)
GOG Contribution - 100,000 -
Other Income 8,126 922 781
1,600,852 1,600,922 -
Uses of funds
Vehicle, goals and equipment 69,151 - -
Registry management 28 - -
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 197 Other Statutory Institutions for the period ended 31 December
Other 285,312 1,709 16,595
Studies, training and
workshops
120,266 8,873 1,255
Performance based lump sum 19,894 - -
Salaries and allowances 117,518 16,085 631
Operating costs 26,091 8,605 203
Exchange difference 2,192 - -
640,452 35,272 1,716
Cash and bank balance as at
31/12/11
960,400 1,565,650 (39)
961. Total expenditure upsurged significantly by 1,716% from US
$35,272 in 2010 to US $640,452 in 2011 due largely to the acquisition
of Toyota Land Cruiser to the tune of US $69,151, payments for
technical supports such as Institutional support, training and publicity
and publication totalling US $285,312 (2010: US $1,709); increase in
studies, training and workshops expenses from US $8,873 in 2010 to
US $120,266 in 2011, a rise of 1,255%. Increase in remuneration and
allowances of the management team and other Ministry personnel
related to the project from US $16,085 in 2010 to US $117,518 in
2011 accounted for 631% rise in salaries and allowances in the year
under review. The operating cost of US $26,091 (2010: US $8,605)
or a 203% rise was due to increase in the administrative and office
running cost of the Secretariat.
962. The high expenditure in the year under review led to a 39%
drop in Cash and Bank balances from US $1,565,650 in 2010 to US
$960,400 in 2011.
Financial position
963. Presented in Table 77 is the balance sheet as at 31 December
2011.
198 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 77: Balance Sheet as at 31 December 2011
2011
US $
2010
US $
%
Change
Non Current assets 675,724 35,272 1,816
Current Assets 960,400 1,565,650 (39)
Financed by:
IFAD Loan No. 761-GH 1,527,076 1,500,000 2
GOG Counterpart Fund 100,000 100,000 -
Other Income 9,048 922 881
Total 1,636,124 1,600,922 2
964. Non-current assets, which rose by 1,816% to US $675,724
from US $35,272 in 2010 was mainly attributed to the acquisition of a
Toyota Land Cruiser and additions to non capital expenditure such as
salaries and allowances from US $16,085 in 2010 to US $117,518 in
2011; technical support services from US $1,709 in 2010 to US
$285,312 in 2011.
965. Current assets, however, decreased by 39% from US
$1,565,650 in 2010 to US $960,400 in the year under review. The
decrease was attributed mainly to the drop in Special Account from
US $1,452,199 in 2010 to US $754, 537 in 2011.
MANAGEMENT ISSUES
IFAD funds of US $745,000 placed into fixed deposit investment
966. We noted that as at 31 December 2011, IFAD funds amounting
to US $745,000 was held in a fixed deposit investment account with
Ecobank since 2010. We did not sight any prior approval from IFAD
for this investment.
967. This practice contravened section 2.04 of the financing
agreement which indicated that, the Borrower and each Programme
Party shall use the proceeds of the Loan exclusively to finance
Eligible Expenditures in accordance with this Agreement and the
general conditions.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 199 Other Statutory Institutions for the period ended 31 December
968. This might result in funds not being readily available to
undertake approved project activities.
969. Management explained that the project had just started and
disbursement rate was slow. Besides, to prevent funds from lying
idle, some of the idle project funds were held in fixed deposit for a
period of time in order to earn some return for the project.
970. We therefore recommended that funds are only used to finance
eligible expenditure under the Financing Agreement. Where there is
the need to use funds for purposes other than those specified in the
agreement, prior approval should be sought from the funding agency
to prevent any displeasure which might negatively affect the Project.
971. Management responded that it had stopped investing
programme funds in fixed deposit investments because this was in
contravention of the Financing Agreement.
Certificate on US $745,000 invested not available
972. In a further development, we could not obtain the investment
certificate for the fixed deposit made with Ecobank since 2010.
Again, there was no agreement on file nor correspondence showing
duration or interest of the investment.
973. Best practice requires that an investment certificate indicating
rate of interest, maturity date and other correspondence should be
obtained for each investment made to facilitate monitoring of the
investment.
974. As a result of non-compliance, errors made by the bank may
not be noted and resolved on time.
975. Management explained that Ecobank indicated that it cannot
issue a certificate for the amount invested because the Project could at
any point in time instruct the bank to liquidate portions or the full
amount of investment.
200 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
976. Management should ensure that a certificate is obtained for its
investments so that this could be used for monitoring and ensure that
the right amount of interest is being paid on time.
VENTURE CAPITAL TRUST FUND
Introduction
977. This report relates to the audited financial statements of the
Venture Capital Trust Fund for the year ended 31 December 2011.
Operational results
978. The fund recorded a deficit of GH¢656,731 in the year under
review compared to a surplus of GH¢1,638,583 in 2010, showing a
fall of 140%. Table 78 provides details of the main performance
indicators.
Table 78: Income statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Income 2,887,277 4,144,187 (30.3)
Expenditure
Administrative expenses 3,121,062 2,101,065 48.5
Trustees Emolument 123,595 115,879 6.7
Auditors Remuneration 12,000 12,000 -
Depreciation 92,230 56,260 63.9
Impairment charge on loan 195,121 220,400 (11.5)
Total expenditure 3,544,008 2,505,604 41.4
Surplus/(Deficit) (656,731) 1,638,583 ( 140.1)
979. Total Income decreased by 30.3% from GH¢4,144,187 in 2010
to GH¢2,887,277 in 2011. This was due to a decrease in Interest on
Fixed Deposits from GH¢4,054,599 in 2010 to GH¢2,848,273 in
2011, representing a decline of 30%. Income from Economic
management and capacity building project support also dropped from
GH¢69,588 in 2010 to GH¢31,753 in 2011. The drop in Other
Income from GH¢20,000 in 2010 to GH¢7,251 in 2011 also
contributed to the fall in income.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 201 Other Statutory Institutions for the period ended 31 December
980. Total expenditure for 2011 however, increased by 41.4% from
GH¢2,505,604 in 2010 to GH¢3,544,008 in 2011. Administrative
expenses shot up by 48.5% and this was largely due to increases in the
payments of salaries and wages from GH¢872,263 in 2010 to
GH¢1,120,709 in 2011, and seminars, workshops and conferences
from GH¢131,646 in 2010 to GH¢571,385 in 2011. Trustees
emoluments rose marginally by 6.7%, whilst fund’s depreciation went
up drastically by 63.9%. The increase was due to charges incurred on
acquisitions of non-current assets.
Financial position
981. Shown in Table 79 is the Venture’s financial position as at 31
December 2011.
Table 79: Assets and liabilities as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current assets 11,967,919 7,768,433 54.1
Current Assets 16,985,451 23,699,152 (28.3)
Current Liabilities 407,070 196,410 107.3
Net Assets 28,546,300 31,271,175 (8.7)
Current Ratio 41.7:1 120.7:1 3.8
982. Non-current assets showed an increase of 54.1% from
GH¢7,768,433 in 2010 to GH¢11,967,919 in 2011 due to the
acquisition of additional assets worth GH¢4,810,297 during the year.
983. Current assets decreased by 28.3% from GH¢23,699,152 in
2010 to GH¢16,985,451 in 2011. This was largely due to a reduction
in Cash and Bank balances from GH¢21,959,244 in 2010 to
GH¢11,540,099 in 2011.
984. Current Liabilities rose by 107.3% from GH¢196,410 in 2010
to GH¢407,070 in 2011. This was due to an increase in Accruals from
GH¢112,410 in 2010 to GH¢323,070 in 2011.
985. The current ratio for year 2011 stood at 41.7:1 (2010:120.7:1).
Although, it had fallen it continued to remain favourable and depicts
that the Fund can pay its short term debts as and when they fall due.
202 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MANAGEMENT ISSUES
Amount due from Loan defaulters – GH¢333,344.36
986. We noted that the Trust Fund introduced a Development
Assisting Fund which a lot of people took advantage of and had the
loan, but woefully failed to adhere to the repayment terms of the loan
agreement. As a result, a total amount of GH¢333,344.36 was owed
the Fund as at 31 December 2012.
The Table below shows the defaulters as at 31 December 2012
987. We were of the view that by the non-recovery, the Trust Fund
resources had been held up and this could frustrate its operations.
988. We recommended that management should make the necessary
efforts, even including the institution of legal action to recover the
loan from defaulters.
GHANA COCOA BOARD
Introduction
989. This report relates to the audited accounts of the Ghana Cocoa
Board for the year ended 30 September 2011.
Name Amount
GH¢
1. Quality Sport Wear Company Limited 45,281.10
2. Pro. Resolve Software Company 31,158.22
3. Eral Constructions Limited 32,277.68
4. Mattison Electro Venture 31,849.82
5. Damedel & Sons 31,713.01
6. Day Spring Glory 32,472.79
7. Kel Investment Limited 31,849.82
8 CHM Farms 32,166.72
9. Kalfrock Agencies 31,849.82
10. Belorm Farms & Transport 32,725.38
333,344.36
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 203 Other Statutory Institutions for the period ended 31 December
Operational results
990. Total Income of the Board registered a 70.8% increase,
improving from GH¢2,874,791,419 in 2010 to GH¢4,909,751,093 in
2011. Export of Cocoa beans contributed significantly to the Total
income by 79% in 2011. Turnover (sale of cocoa beans-) which is the
main source of income to the Board increased by 70.4% from
GH¢2,790,149,437 in 2010 to GH¢4,754,198,210 in 2011. This was
made up of both exports and local sales. Other Income increased by
83.8% from GH¢84,641,982 in 2010 to GH¢155,552,883 in 2011.
This increase was due to a 232% rise in interest received and a 62%
upward movement in grading and sealing of cocoa in the year under
review. Operational results for 2011 are shown in Table 80.
Table 80: Income statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Sales of Cocoa Beans 4,754,198,210 2,790,149,437 70.4
Other Income 155,552,883 84,641,982 83.8
Total Income 4,909,751,093 2,874,791,419 70.8
Expenditure
Cost of sales 4,407,622,199 2,319,445,697 90.0
Admin. & General
Expenses
343,623,646 242,842,150 41.5
Export and Local duty 148,679,011 153,933,253 (3.4)
4,899,924,856 2,716,221,100 80.4
Net profit 9,826,237 158,570,319 (93.8)
991. Total Expenditure rose from GH¢2,716,221,100 in 2010 to
GH¢4,899,924,856 in 2011; an increase of 80.4% mainly resulting
from a rise in cost of sales from GH¢2,319,445,697 in 2010 to
GH¢4,407,622,199 in 2011 representing a 90% increase. A 108%
increase in the purchase of the cocoa beans and 83% sales expenses
accounted for the sharp rise in the cost of sales. Administrative and
general expenses which went up by 41.5% was mainly attributed to
increases in staff cost made up of salaries and other allowances from
GH¢137,861,781 in 2010 to GH¢205,775,996 in 2011.
204 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
992. As a result of a significant expenditure recorded in the year
under review as shown above, the net profit transferred to the Income
Surplus Account dropped by 93.8% from GH¢158,570,319 in 2010 to
GH¢9,826,237 in 2011.
Financial position
993. The financial position of the Board is provided in Table 81.
Table 81: Assets and Liabilities as at 30 September 2011
2011
GH¢
2010
GH¢
%
Change
Non-current Assets 375,259,471 165,242,855 127.1
Current Assets 1,745,071,448 746,962,423 133.6
Current Liabilities 1,892,428,013 656,934,396 188.1
Non-current Liabilities 24,784,001 20,232,429 22.5
Net Assets 203,118,905 235,038,453 (13.6)
Current Ratio 0.91:1 1.1:1
994. Non-current assets which rose by 127.1% to GH¢375,259,471
from GH¢165,242,855 in 2010 was mainly attributed to the additions
to Land and Building, Plant and Machinery, Motor vehicles and
Furniture and Equipment.
995. Current Assets increased significantly by 133.6% from
GH¢746,962,423 in 2010 to GH¢1,745,071,448 in 2011. The rise in
Accounts Receivable and Prepaid Expenses from GH¢385,938,240 in
2010 to GH¢1,038,976,194 in 2011 representing a 169% rise
contributed significantly to the increase in current assets.
996. Current Liabilities also increased by 188.1% from
GH¢656,934,396 in 2010 to GH¢1,892,428,013 in 2011. This was
due to a GH¢1,326,849,496 or 729% rise in a bank overdraft.
997. The liquidity ratio of the Board stood at 0.9:1 in the year under
review compared to 1.1:1 in the previous year, an indication of the
Boards inability to meet its short-term debts as and when they fall due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 205 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Cocoa Research Institute of Ghana
Absence of fixed assets register
998. We noted that fixed assets register was not kept to record
details of the assets belonging to the Cocoa Research Institute of
Ghana.
999. Proper assets management system requires the maintenance of
the fixed assets register capturing all relevant details of the assets
acquired.
1000. This weakness had the potential of making the Institute’s assets
vulnerable to theft as well as exchanging one make of equipment for
another without detection. We attributed the weakness to lax of
supervision by management.
1001. We recommended to management to ensure that the Estate
Officer takes the necessary steps to register all properties belonging to
the Institute. We also recommended that assets purchased for the
Institute should be labeled.
Quality Control Division
Accountable advance – GH¢22,553
1002. Contrary to the Board’s policy of retiring imprests within a
stipulated time, we noted that 3 members of staff who were given
imprest to the tune of GH¢22,553.00 in 2010/2011 had since not
accounted for the imprest amounts even after completion of the
programmes. Details are shown in the Table below:
Date Name Amount (GH¢)
4/5/11 Victor Torkornu 4,665.00
16/5/11 Victor Torkornu 6,977.00
30/5/11 Victor Torkornu 2,648.00
201/11 Victor Torkornu 1,200.00
9/8/11 Victor Torkornu 1,000.00
02/9/10 K. B. Prempeh 4,332.00
24/9/10 Samuel Boateng 1,731.00
22,553.00
206 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1003. This situation arose as a result of inadequate management
supervision and procedures and could result in funds of the Board not
being used in furtherance of its objective.
1004. We recommended that the affected staff should immediately be
made to account for the total amount outstanding or held liable for a
refund by deducting the outstanding amounts from their salaries.
STUDENTS LOAN TRUST FUND
Introduction
1005. This report relates to the audited accounts of the Student Loan
Trust Fund for the year ended 31 December 2011.
Operational Results
1006. Total Income of the Fund which included Administrative
Grant, Interest on Loan, Investment Income, registered an increase of
14.7% from GH¢2,221,799 in 2010 to GH¢2,548,343 in 2011. This
was mainly due to a 253.6% increase in Student Loan interest and
81.3% rise in Administrative Grant. Table 82 provides the income and
expenditure statement for 2011.
Table 82: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Income 2,548,343 2,221,799 14.7
Expenditure
Staff Cost 865,653 688,395 25.7
Travelling & Transport 177,962 134,102 32.7
Financial & Professional
Charges
17,766 15,074 17.9
Administrative & Other
Expenses
995,226 982,658 1.3
Provision for Bad debts 184,336 183,807 0.2
Total Expenditure 2,240,943 2,004,039 11.8
Surplus / Deficit 307,400 217,760 41.2
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 207 Other Statutory Institutions for the period ended 31 December
1007. Total Expenditure incurred in 2011 was GH¢2,240,943 as
against GH¢2,004,039 in 2010, representing an increase of 11.8%.
The increase in Travelling & Transport Cost was due to an increase in
Vehicle Repairs & Maintenance cost by 109.8%. Salaries, Wages &
Allowances accounted mainly for the increase in Staff Cost was due to
adjustment in salary by 20% approved by the Board and creation of
new department.
1008. The Fund ended its operations with an operational surplus of
GH¢307,400 as against GH¢217,760 in 2010.
Financial position
1009. The Funds financial position is sumarised in Table 83.
Table 83: Balance sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 71,620,241 53,511,930 33.8
Current Assets 3,081,159 4,218,566 (27.0)
Current Liabilities 136,858 101,785 34.5
Net Current Assets 2,944,301 4,116,781 (28.5)
Non-Current Liabilities 16,989,350 10,167,371 67.1
Net Assets 74,564,542 57,628,711 29.4
Current Ratio 22.5:1 41.4:1
1010. The Fund’s Non-Current Assets went up by 33.8% from
GH¢53,511,930 in 2010 to GH¢71,620,241 in 2011. The increase was
due mainly to increase in Student Loans from GH¢53,130,105 in 2010
to GH¢71,379,425 in 2011, recording an increase of 34.3%. Property,
Plant & Equipment however fell by 36.9%.
1011. Current assets recorded a decrease of 27.0% from
GH¢4,218,566 in 2010 to GH¢3,081,159 in 2011. There was
substantial increase in Cash at Bank from GH¢93,172 in 2010 to
GH¢341,687 in 2011, an increment of 266.7%. However, Investments
declined by 38.3% from GH¢3,998,200 in 2010 to GH¢2,468,355 in
2011 leading to the fall.
208 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1012. Non-current liabilities made up of deferred income increased
from GH¢ 10,167,371 in 2010 to GH¢16,989,350 in 2011, a rise of
67.1%. Current liabilities made up of Accounts Payables and Accruals
increased by 34.5% from GH¢101,785 in 2010 to GH¢136,858 in
2011. This was largely due to increase in Consultancy Services by
GH¢18,709 in 2011.
1013. Liquidity outlook as measured by a current ratio of 22.5:1
(2010: 41.4:1) remained very favorable, indicating the ability of the
Fund to discharge its short term obligations as and when they fall due.
1014. Accumulated fund grew by 21.3% from GH¢47,461.340 in
2010 to GH¢57,575,192 in 2011 due to additional Capital Grants and
Income Surplus.
PUBLIC PROCUREMENT AUTHORITY
Introduction
1015. This report relates to the audited financial statement of Public
Procurement Authority for the year ended 31 December 2011.
Operational results
1016. The year 2011 ended with a surplus of GH¢158,392 as against
a Surplus of GH¢310,298 recorded in 2010. This represents a decrease
of 48.9%. Performance indicators are shown in Table 84.
Table 84: Income statement for 2011
Items 2011
GH¢
2010
GH¢
%
Change
Income 2,218,308 3,081,657 (28.0)
Expenditure
Short term training 68,852 405,185 (83.0)
Personnel Emoluments - 599,219 -
Gen. & Admin. Expenses 1,361,385 824,652 65.1
Assessment of Entities 81,074 457,825 (82.3)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 209 Other Statutory Institutions for the period ended 31 December
Provision of Website 73,722 57,810 27.5
Publicising PPA Activities 79,814 105,011 (23.9)
Dev. Of Procurement Planning
Software
7,302 18,510 (60.6)
Depreciation 273,207 190,137 43.7
Public Procurement - 24,462 -
Appeals & Complaints 45,078 61,870 (27.1)
Price Database Management - 19,006 -
Records Keeping Management
Contract Management - 7,672 -
Contracts Administration 69,482 - 100
Total Expenditure 2,059,916 2,771,359 (25.7)
Surplus / (Deficit) 158,392 310,298 (48.9)
1017. Total income for the year under review decreased by 28.0%
from GH¢3,081,657 in 2010 to GH¢2,218,308 in 2011. The decline in
total income was due to 35.4% reduction in Government Subvention
even though support from German Technical Co-operation (GTZ)
increased by 85.5%.
1018. Total expenditure also decreased by 25.7% from
GH¢2,771,359 in 2010 to GH¢2,059,916 in 2011. The decrease was
largely due to reduction in Short-Term Training Expenses, Personnel
Emoluments Cost, General and Administration Expenses and
Development of Procurement Planning Software Cost.
Financial position
1019. Presented in Table 85 is the financial position of the Authority
as at 31 December 2011.
Table 85: Balance Sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Fixed Assets 739,934 529,639 39.7
Current Assets 160,820 179,396 (10.4)
Current Liabilities 292,706 261,356 11.9
Net Assets 608,048 447,679 35.8
Current Ratio 0.5:1 0.7:1
210 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1020. Fixed Assets stood at GH¢739,934 as at 2011 as against
GH¢529,639 in 2010. The increase was due to acquisition of
additional assets during the year.
1021. Current Assets decreased by 10.4% during the period under
review. This was as a result of a sharp reduction in Bank Balance
from a favourable balance of GH¢55,715 in 2010 to an overdrawn
balance of GH¢10,305 in the current year.
1022. Current Liabilities increase by 11.9% to GH¢292,706 in 2011
from GH¢261,356 in 2010. Non-payment to IRS on Withholding Tax
and increase in Accrued Audit Fees accounted for the rise.
1023. The current ratio was 0.5:1 (2010: 0.7:1) indicating an
unfavorable liquidity position for the Authority which portrays its
inability to meet its short-term debts falling due.
NATIONAL INSURANCE COMMISSION
Introduction
1024. This report is on the audited accounts of the National Insurance
Commission for the year ended 31 December 2011.
Operational results
1025. The Commission ended the year with a surplus of GH¢970,872
as against GH¢512,439 for the year ended 31 December 2010. This
represented an 89.5% rise over the previous figure. The summary of
the Commission’s performance for the period under review is shown
in Table 86.
Table 86: Income and expenditure statement for 2011
Item 2011
GH¢
2010
GH¢
%
Change
Income 5,805,893 4,559,042 27.3
Other Income 62,152 37,543 65.5
Total 5,868,045 4,596,585 27.7
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 211 Other Statutory Institutions for the period ended 31 December
Expenditure
Staff Cost 2,691,467 2,317,049 16.2
Auditors’ Remuneration 8,861 7,705 15.0
Directors’ Emoluments 634,329 465,921 36.2
Depreciation 234,128 174,709 34.0
Sticker Cost 87,940 124,200 (29.2)
Loss on Sale of Assets - 2,552 (100.0)
Others 1,240,448 992,010 25.0
Total Expenditure 4,897,173 4,084,146 19.9
Surplus 970,872 512,439 89.5
1026. Total income for the year was GH¢5,868,045 as against
GH¢4,596,585 recorded in 2010. This represented a 27.7% rise over
the 2010 figure. The increase in regular income was attributed mainly
to increases in Levies on Life Insurance, Levies on Non-Life
Insurance, and Motor Insurance. Gains on sale of Assets and Interest
on loan accounted for the increase in other income.
1027. Total expenditure rose by 19.9% from GH¢4,084,146 in 2010
to GH¢4,897,173 in 2011. The increase in total expenditure was
mainly due to a 16.2% rise in staff cost and 36.2% increase in
Directors Emoluments.
Financial position
1028. Table 87 shows a summary of the Commission’s financial
position as at the end of the year under review.
Table 87: Financial position as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 1,083,053 943,086 14.8
Current Assets 3,670,074 2,893,384 26.8
Current Liabilities 245,319 262,099 (6.4)
Net Current Assets 3,424,755 2,631,285 30.2
Net Assets 4,507,808 3,574,371 26.1
Current Ratio 15.0:1 11.0:1
212 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1029. Non-Current Assets increased by 14.8% from GH¢943,086 in
2010 to GH¢1,083,053 in 2011. The Non-Current Assets included
property, Plant and Equipment and Equity Shares. The increase was
due to acquisition of fixed assets within the year.
1030. Current Assets also increased by 26.8% from GH¢2,893,384 in
2010 to GH¢3,670,074 in 2011. The increase resulted from increase in
Short Term Investment, Accounts Receivable and Bank and Cash
Balances.
1031. Current Liabilities which was made up of Accounts Payable
and Accruals decreased by 6.4% from GH¢262,099 in 2010 to
GH¢245,319 in 2011.
1032. The Current ratio of 15.0:1 (2010: 11.0:1) showed that the
Commission is solvent and can meet its short term obligation when
they fall due.
BANK OF GHANA
Introduction
1033. This report is on the audited accounts of the Bank of Ghana
(BOG) for the year ended 31 December 2011.
Operational Results
1034. The Bank registered a surplus of GH¢400,372,000 during the
year under review as compared to GH¢121,466,000 recorded in 2010,
representing an increase of GH¢278,906,000 or 229.6%.
1035. The operating income went up by 58.7% from
GH¢510,297,000 in 2010 to GH¢809,747,000 in 2011. A significant
portion of the surge resulted from increases in Interest and similar
income, fee and commission income and exchange differences.
1036. Interest and similar income which included interest on
overnight landing, government securities, medium/long-term notes
and bonus, interest on foreign correspondent accounts, foreign
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 213 Other Statutory Institutions for the period ended 31 December
investments and discount on Treasury bill operations rose up
significantly by 45.8%. Fee and commission income increased from
GH¢34,042,000 in 2010 to GH¢51,397,000 or a rise of 51.0%.
1037. The exchange differences which went up by 101.6% was as a
result of sharp increases in Transactional Exchange difference from
GH¢18,748,000 in 2010 to GH¢71,669,000 in 2011 and Exchange
Rate Equalization from GH¢146,844,000 in 2010 to GH¢262,209,000
in 2011. Performance indicators are shown in Table 88.
Table 88: Statement of comprehensive Income for 2011
2011 2010 %
Income GH¢’000 GH¢’000 Change
Interest and similar income 380,518 261,086 45.8
Fee and Commission Income 51,397 34,042 51
Other Operating income 38,687 45,904 (15.7)
Exchange differences 333,878 165,592 101.6
Dividend Income 5,267 3,673 43.4
Total Income 809,747 510,297 58.7
Expenditure
Interest expense and similar
charges 157,009 149,873 4.8
Administration 190,422 148,414 28.3
Premises and equipment
expenses 25,957 23,030 12.7
Current and issue expenses 27,288 60,884 (55.2)
Direct expenses 4,837 4,146 16.7
Net Impairment reversal (4307) (3,283) 31.2
Taxation 8,169 5,767 41.7
Total Expenditure 409,375 388,831 5.3
Surplus 400,372 121,466 229.6
1038. Total expenses for the year under review rose up marginally by
5.3% from GH¢388,831,000 in 2010 to GH¢409,375,000 in 2011.
The marginal increase in Interest expense and similar charges was due
to the following factors:
214 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
- Increased dealings in IMF and SDR transactions from
GH¢408,000 in 2010 to GH¢690,000 in 2011.
- Decreased Interest on money market instruments from
GH¢109,143,000 in 2010 to GH¢88,009,000 and
- Increased on repo expense and other Commissions payment
from GH¢38,408,000 in 2010 to GH¢68,308,000 in 2011.
1039. The administrative expenses went up by 28.3% from
GH¢148,414,000 in 2010 to GH¢190,422,000 in 2011. This was
mainly attributed to increases in personnel cost from GH¢102,474,000
in 2010 to GH¢124,372,000 in 2011 and other miscellaneous costs
from GH¢24,151,000 in 2010 to GH¢41,502,000 2011.
1040. Premises and Equipment expenses which rose by 12.7% was
due to increases in repairs and renewals and other expenses related to
premises and equipment.
1041. However, current and issue expenses went down drastically by
55.2%. The decrease was mainly attributed to 56.1% reduction in
notes printing cost from GH¢58,793,000 in 2010 to GH¢25,799,000
in 2011 and reduction in other currency expenses from GH¢1,039,000
in 2010 to GH¢751,000 in 2011.
Financial Position
1042. Provided in Table 89 is the Financial position as at 31
December 201.
Table 89: Balance sheet as at 31 December 2011
2011
GH¢’000
2010
GH¢’000
%
Change
Non-current Assets 269,780 249,293 8.2
Current Assets 15,050,872 11,578,134 30.0
Current Liabilities 13,901,773 10,699,344 29.9
Net Assets 1,418,879 1,128,083 25.8
Current ratio 1.1:1 1.1:1
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 215 Other Statutory Institutions for the period ended 31 December
1043. Non-current Assets which was made up of fixed assets,
development loans and investments, increased marginally by 8.2%
from GH¢249,293,000 in 2010 to GH¢269,780,000 in 2011. The
increase was due to the acquisition of fixed assets within the year.
1044. Current Assets rose by 30.0% from GH¢11,578,134,000 in
2010 to GH¢15,050,872,000 in 2011. The rise was as a result of
increases in Gold by 17.6% of the previous figure and securities by
82.5% from GH¢5,121,302,000 in 2010 to GH¢9,346,070,000 in
2011. The major components of the securities were long-term
securities and others. Despite the impact made by the Securities,
93.1% drop by Cash and amounts due from banks from
GH¢1,283,190,000 in 2010 to GH¢88,129,000 in 2011 resulted in a
lesser percentage increase in current assets.
1045. Current Liabilities also increased by 29.9% from
GH¢10,699,344,000 in 2010 to GH¢13,901,773,000 in 2011 due
mainly to increases in currency in circulation, Allocations of special
drawing rights, Deposits, Liabilities to IMF and Money Market
Instruments.
1046. The liquidity position of the Bank recorded no movement and
stood at 1.1:1 in 2011, (2010: 1.1:1), an indication that the Bank
cannot fulfill its short-term obligations as and when they fall due.
MANAGEMENT ISSUES
Accounting for petroleum fund account
1047. We noted during our audit that the assets and liabilities
resulting from transactions on the petroleum fund have been
accounted for as part of the Bank’s assets and liabilities respectively.
1048. As the bank is only managing these assets on behalf of the
government, we were of the view that these do not affect the carrying
amount of the Bank’s assets and liabilities.
1049. The lapse implied that the carrying amount of these assets and
liabilities may be overstated by the value of transactions on the
petroleum accounts.
216 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1050. We recommended that the general ledger account codes for
assets and liabilities of the petroleum fund should be set up to net off
against each other as part of the financial statement closing process to
create a nil effect on the balance sheet.
Management of subsidiaries
1051. We noted during our review that though the Bank of Ghana
(BOG) has a controlling interest in the Central Securities Depository,
Ghana International Bank PLC and Ghana Interbank Payment and
Settlement Systems, none of these subsidiaries are made to prepare
financial returns to the Bank of Ghana, the holding company. We
noted that the BOG often relies on the balances obtained by the
auditors in their statutory audits of these subsidiaries.
1052. Subsidiaries are expected to report to their holding companies
regularly to enable the parents review the financial performance of
these subsidiaries as well as the entire group.
1053. Also, as part of the financial statements close process where
trial balances are generated and financial statements prepared for year
end audits, it is expected that the BOG would receive draft trail
balance and financial statements from their subsidiaries to facilitate
the preparation of consolidated trial balance and draft financial
statements for audit review.
1054. A result, the BOG may not be able to properly track and
monitor the financial performance of its subsidiaries. This situation
also results in significant delays in getting the consolidated financial
statements ready for review.
1055. We recommended that the BOG puts the following systems in
place.
(i) Ensure the subsidiaries submit financial returns so that it
would be possible to monitor the financial position and
performance of these companies.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 217 Other Statutory Institutions for the period ended 31 December
(ii) Ensure the subsidiaries send unaudited trial balances early
enough after the year end so that these trial balances could
be consolidated into the trial balance and draft financial
statements that would be presented for audit.
Update of password guidelines documentation
1056. According to best practice, password controls should be
documented, implemented and enforced to ensure confidentiality of
information.
1057. However, we noted that the BOG documented its password
guidelines, outlining its password protection and configuration
requirements but the guidelines do not reflect the password
requirements for the significant applications shown below:
(1) Network application (Active Directory)
(2) T24 Globus application
(3) GIS application
1058. This may result in the risk of unauthorized access attempts
going undetected and unresolved by management. There is also the
risk of key financial data/programs being modified intentionally or
unintentionally.
1059. We recommended that management should update its password
guidelines to reflect the password requirements for the significant
application.
Loans not governed by valid contracts/agreements
1060. We noted that agreements governing short term loan facilities
granted by BOG to National Investment Bank (NIB) and Ghana
Commercial Bank (GCB) had expired and no new agreements have
been signed with these institutions.
1061. Our review of the terms of contract between BOG and NIB
dated 9 April 2009 indicated that a loan amount of GH¢60,000,000
was due on 30 September 2009. However NIB applied to BOG for an
extension of the loan duration to 31 March 2010 in a letter dated 29
218 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
September 2009. There was an extension to 31 March 2010, but the
loan still remained unpaid as at the time of reporting. The extension
to 31 March did not have any security backing it.
1062. On 19 February 2009, BOG granted a Bridging Facility to
GCB under an MOU. It was made up of a cedi equivalent of
US$25,000,000 and a US$50,000,000. Our review of the agreement
for the facility indicated that MOU was to expire by six weeks from 1
February 2009 but not later than 31 March 2009.
1063. However, as at the time of reporting, an outstanding balance of
the cedi equivalent of US$50,000,000 remained unsettled. We did not
sight a new agreement or an addendum established with GCB to
extend the terms and conditions contained in the MOU which expired
on 31 March 2010.
1064. We recommended that management should take necessary
steps to ensure that all loans are governed by valid loan agreements.
Outstanding withholding taxes not paid – GH¢625,875.95
1065. We noted in our review of accounts payable and accrued
balances that some withholding taxes deducted on payment for goods
and services in excess of GH¢50 had not been paid to the Domestic
Tax Revenue Division (DTRD) of Ghana Revenue Authority (GRA)
on time. This has led to an accumulation of withholding tax payable
to the tune of GH¢625,875.95 as at 31 December 2011.
1066. We recommended that in compliance with the requirements of
Section 80 of the Internal Revenue Act 2000 (Act 492), management
should ensure that all withholding tax deductions made are paid to the
Ghana Revenue Authority by the 15 of the month following the month
of deduction.
Excess withdrawal over direct holding account – GH¢83,000,000
1067. We noted that the Controller and Accountant-General maintain
receiving accounts for HIPC funds and withdrawal accounts for
developmental projects. The net position of the receiving and the
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 219 Other Statutory Institutions for the period ended 31 December
withdrawal accounts for the following HIPC special accounts as at 31
December 2010 showed an overdrawn position of GH¢83,000,000 as
shown below.
Name of
Account
Receipt
GH¢
Withdrawal
GH¢
Difference
GH¢
HIPC Main 173,188,631.23 243,274,233.97 70,085,602.74
MDRI sub a/c
World Bank
66,427,816.35 79,642,315.94 13,214,219.59
Total 239,616,527.58 322,916,549.91 83,300,002.24
1068. We recommended that where it becomes necessary for a
temporal advance to be granted to the government, the required
procedures outlined in the loan and Fiscal Agency Agreement
regarding temporary advances should be duly adhered to.
Government borrowing in excess of limits imposed in the BOG
Act
1069. We noted during the audit that significant balances on drawing
accounts operated by Government directly and through other
Government Institutions have led to an increase in the net exposure to
Government in excess of the ceiling that has been set by Section 30
(5) of the BOG Act. This is shown as follows:
GH¢
Loans and advances 939,661,391
Long-term Government Securities 1,276,352,270
Promissory notes receivable 2,155,715
Total loans, advances & Securities owed 2,218,169,376
Expected limit on borrowing per 530 (2) 826,400,000
Excess of borrowings over the limit 1,391,769,376
1070. We recommended that management should initiate measures to
ensure that the provisions of the Banking Act regarding loans and
advances to Government are complied with.
1071. In the event of an emergency, where the Government needs
funds, management may invoke the provisions of subsection 6 of the
BOG Act which requires that the Governor, the Minister and the
220 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Controller and Accountant-General shall meet to decide the limit of
borrowing that should be made by Government and the Minister shall
submit a report on the issue to Parliament within seven sitting days.
MINISTRY OF INFORMATION
GRAPHIC PACKAGING LIMITED
Introduction
1072. This report relates to the audited accounts of G-PAK Limited
for the financial year ended 31 December 2011.
Operational results
1073. The company’s operations for the year 2011 ended with a net
loss of GH¢184,157 thus registering a decrease of 581.4% or
GH¢222,410 over the 2010 surplus of GH¢38,253. The decrease was
due to a 49.0% decrease in total income vis-à-vis a 39.2% rise in total
expenditure. A sumarised income statement is shown in Table 90.
Table 90: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Sales 1,387,695 1,367,792 1.5
Cost of sales 1,267,895 1,009,838 15.3
Gross profit 119,800 267,954 (55.3)
Other Income 17,656 1,357 1,201.1
Total Income 137,456 267,954 (49.0)
Expenditure
Admin, Selling & Gen. expenses 306,618 213,526 43.6
Interest Expenses 14,995 17,532 (14.5)
Total Expenditure 321,613 231,058 39.2
Net (loss) /Profit (184,157) 38,253 (581.4)
1074. Total Sales for the year increased marginally by 1.5% from
GH¢1,367,792 in 2010 to GH¢1,387,695 in 2011. The composition of
the sales were as follows: Calender sales - GH¢97,294 (2010:
GH¢22,426), Labels - GH¢677,290 (2010:-GH¢419,822) Magazine -
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 221 Other Statutory Institutions for the period ended 31 December
GH¢13,796 (2010: GH¢48,120), Newspapers - GH¢197,335, (2010:
GH¢230,810), Others-GH¢ 69,298 (2010: 172,489) Poster -
GH¢10,189 (2010: GH¢ 6,860).
1075. Printing of Commercial Books - GH¢ 94,602, (2010:
GH¢264,262) Skillet-GH¢ 224,300 (2010: GH¢102,830, and Title -
GH¢3,591 (2010: GH¢173).
1076. Total Expenditure went up by 39.2% from GH¢ 231,058 in
2010 to GH¢ 321,613 in 2011. This was as a result of a 43.6% rise in
Administrative, selling and general expenses which increased from
GH¢213,526 in 2010 to GH¢306,618 in 2011.
Financial position
1077. The statement of financial position of the Company is
presented in Table 91.
Table 91: Assets and liabilities as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non- current Assets 678,670 745,497 (9.0)
Current Assets 1,685,603 1,606,217 4.9
Current Liabilities 1,615,946 1,314,882 22.9
Net Current Assets 69,657 291,335 (76.1)
Net Assets 748,327 1,036,832 (27.8)
Current Ratio 1.0:1 1.2:1
1078. Non –Current Assets which was made up of property plant and
equipment decreased by 9.0% from GH¢745,497 in 2010 to
GH¢678,670 in 2011. This was as a result of depreciation charges for
the period under review.
1079. Current Assets which stood at GH¢1,606,217 in 2010 increased
by 4.9% to GH¢1,685,603 in 2011. This was due mainly to a 34.1%
rise in stocks from GH¢767,223 in 2010 to GH¢1,028,929 in 2011.
1080. Current Liabilities also increased by 22.9% from
GH¢1,314,882 in 2010 to GH¢1,615,946 in 2011. This was as a result
of a 1,911.8% rise in Bank overdraft.
222 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1081. The Company’s liquidity position at the end of the year was
1.0:1 (2010: 1.2:1). This indicates that the company may not be in the
position to meet its short term liabilities as and when they fall due.
MANAGEMENT ISSUES
Purchase of raw materials – GH¢140,072.85
1082. We observed during our audit that G-PAK purchased raw
material which were meant for the production of labels for Blue Skies
Limited.
1083. These materials which were purchased in August 2011, cost the
company GH¢140,072.85. However, according to the General
Manager, the client changed its labels afterwards, so the materials
could not be used for its intended purpose and were still in stock.
1084. The implication is that the stock hold up could lead to the
locking up of capital. We recommended that effort should be made to
use the materials in time to prevent them from becoming obsolete
whilst at the same time releasing the locked up capital.
Trade debtors –GH¢11,130.00
1085. We noted during our audit that certain debtors have been in
existence since 2009 without any movement. The details are as
follows:
Name of Debtors Balance
GH¢
Guinness Ghana Limited 9,844.00
Voltic Ghana Limited 918.00
Nestle Ghana Limited 368.00
Total 11,130.00
1086. These debtors have been in existence for far too long and stood
the risk of non recovery. This could worsen the existing financial
distress of the company.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 223 Other Statutory Institutions for the period ended 31 December
1087. We advised that management should intensify its debt
collection effort.
GHANA BROADCASTING CORPORATION
Introduction
1088. This report relates to the audited accounts of the Ghana
Broadcasting Corporation for the period 1 January 2007 to 31
December 2008.
Operational results
1089. Total Income for the Corporation went up by 30.2% from
GH¢13,619,950 in 2007 to GH¢17,733,255 in 2008 mainly due to
increases of 16.9% and 79.9% in Government subvention and
Commercial Receipts respectively. The rise in Commercial Receipts
was largely due to increases in sponsorships from GH¢1,544,551 in
2007 to GH¢4,260,267 in 2008, representing 176% rise. Adverts
under Commercial Receipts also rose by 46% from GH¢3,960,671 in
2007 to GH¢5,770,232 in 2008.
1090. The summary of the Corporation’s operations for the period
under review is provided in Table 92.
Table 92: Performance indicators for 2008 and 2007 Income
2008 GH¢
2007 GH¢
% Change
Government Subvention 6,200,082 5,305,475 16.9
Commercial Receipts 10,461,477 5,816,474 79.9
Television License Fees 246,096 1,299,954 (81.1)
Other Income 825,600 1,198,047 (31.1)
17,733,255 13,619,950 30.2
Expenditure
Personnel Cost 7,063,646 6,044,752 16.9
Programme Expenses 867,128 876,692 (1.1)
Travelling and Transport 747,129 425,561 75.6
Repairs and Maintenance 581,265 418,968 38.7
Electricity and Water 1,437,087 565,040 154.3
Finance Charges 18,022 103,895 (82.7)
Other Expenses 3,479,080 2,713,236 28.2
Depreciation 3,466,729 3,553,998 (2.5)
17,660,080 14,702,142 20.1
Profit/(Loss) for the year 73,169 (1,082,192) (106.8)
224 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1091. Revenue realized from the television license fee dropped from
GH¢1,299,954 in 2007 to GH¢246,096 in 2008, representing 81.1%
decrease. This was as a result of total reduction in Head Office’s
collection from GH¢1,208,261 in 2007 to GH¢17,548 in 2008 or a
99% reduction. The Other Income also decreased by 31.1% in 2007
to GH¢825,600 in 2008. This was because no revenue was realized
from Breakfast show, Dubbing and Dividend in the year under review.
However in 2007, revenue was generated from Breakfast show
(GH¢26,527) Dubbing (GH¢55,935) and Dividend (GH¢86,820).
1092. Total Expenditure increased by 20.1% from GH¢14,702,142 in
2007 to GH¢17,660,086 in 2008. The rise was due mainly to
increases of 16.9% in Personnel cost; 75.6% in Transport &
Travelling, 38.7% in Repairs and Maintenance, 154.3% in Electricity
and Water expenses and 28.2% in Other Expenses. Prominent among
the contributors to the significant rise in Transport and Travelling
were the payments made on accommodation; general travelling and
transport cost. Commission expenses of GH¢306,318 in 2008 alone
accounted for the increases in other expenses.
1093. The operations of the Corporation ended with a profit of
GH¢73,169 as against a deficit of GH¢1,082,192 recorded in 2007
showing a favourable change of 106.8%.
Financial position
1094. Table 93 shows the balance sheet position as at 31 December
2008.
Table 93: Balance Sheet as at 31 December 2008
2008
GH¢
2007
GH¢
%
Change
Non-Current Assets 52,180,204 53,940,766 (3.3)
Current Assets 7,831,684 6,169,177 26.9
Current Liabilities 1,095,064 1,266,288 (13.5)
Long term Liabilities 280,053 280,053 -
Net Assets 58,636,771 58,563,602 0.1
Current Ratio 7.2:1 4.9:1
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 225 Other Statutory Institutions for the period ended 31 December
1095. Non-Current Assets decreased marginally by 3.3% in 2008
mainly due to the provision for depreciation of GH¢3,466,729 for the
year, even though there was additions to the fixed assets.
1096. Current Assets increased by 26.9% from GH¢6,169,177 in
2007 to GH¢7,831,684 in 2008. The increase in current assets was
due to the rise in Cash and bank balance from GH¢225,605 in 2007 to
GH¢1,917,382. Increase in stocks by 201% and decrease in debtors
figure of 57% respectively contributed to marginal rise in current
assets.
1097. Current Liabilities on the other hand, recorded a decrease of
13.5% from GH¢1,266,288 in 2007 to GH¢1,095,064 in 2008. The
marginal drop in Current Liabilities was the result of the variation in
bank overdraft facility from GH¢353,707 in 2007 to GH¢1,110 in
2008.
1098. The liquidity position as measured by a current ratio of 7.2:1
for 2008 and 4.9:1 for 2007 financial year indicates the ability of the
Corporation to meet its short term debts as and when they fall due.
MANAGEMENT ISSUES
Write offs and reduction in Debtors’ figure without authorization
1099. We noted that some debtors’ balances totalling GH¢796,257.63
had been reduced to GH¢333,777.91 while some totalling
GH¢446,166.11 had been written-off without authorization.
1100. Our review further revealed that the Director of Finance
authorized that practice without the consent of the Management
Board.
1101. Table following table shows the details.
226 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
(a) Debtors Balance reduction
Date Client Opening Bal.
Accounts Ledger GH¢
New Opening
Bal. (GH¢)
31/1/08 Ad Media FCB 23,837.92 14,302.75
31/3/08 AP Lintas/Media Init 207,374.46 151,426.08
30/4/08 AP Lintas/Media Init 151,426.08 45,827.41
382,638.46 211,556.24
Computerized
Ledger
30/4/08 Lintas 150,110.97 44,512.30
25/4/08 Kinapharma Ltd 58,843.56 -
31/8/08 Talent Media Consult 204,664.64 77,709.37
796,257.63 333,777.91
Difference of GH¢462,479.72
(b) Debtors Balances of GH¢446,166.11 written off
Date Name Amount (GH¢)
Manual Ledger
Business House Multimedia 3,488.34
Ghana Industry Broadcasting 11,465.32
God’s Way Hour 4,830.00
Computerised Ledger
31/8/08 Origin 8 Satchi & Satchi 48,234.93
“ Point Blank Media 34,507.30
“ Omadru Production 18,061.26
“ Wienco Ghana 74,683.31
“ Lintas Ghana 250,895.65
GH¢446,166.11
1102. We attributed this practice to lack of clear policy as a result of
which written request and authorization to support such practice are
not obtained. This could make the Company cash trapped.
1103. Management was advised to come up with a clearly
documented policy for the handling of overdue debts. There should
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 227 Other Statutory Institutions for the period ended 31 December
also be written or signed authorizations for any balances that are
written off or reduced with supporting reasons on file and additionally
this should be done in line with existing regulations.
1104. Management responded that, a Committee has been set up to
investigate this and report to management for appropriate action.
Alleged Barter transaction – GH¢309,012.00
1105. We noted that amounts totalling GH¢309,012.00 were included
in the fixed assets schedule as additions to the fixed assets for the
period under review. There were no documents available to support
these transactions.
Details provided in the Table below
Vehicle Type
Quantity
Total Cost
GH¢
Tata Buses 4 162,000.00
Tata indigo Saloon 6 95,130.00
Geely Motor Bikes 4 4,032.00
Toyota Corolla Saloon 1 22,850.00
G Wall 1 25,000.00
309,012.00
1106. A follow up revealed that, the vehicles were provided in
exchange for services provided by the Corporation (that is barter
transaction).
1107. We did not sight any evidence of approval and could not verify
the services rendered and the associated costs and the treatment of
service income in the Accounts. There was no clear and transparent
policy on barter transactions.
1108. We recommended that such policy must be scrapped or
streamlined to ensure transparency in operations.
228 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
GRAPHIC COMMUNICATION GROUP LIMITED
Introduction
1109. This report covers the audited accounts of the Graphic
Communication Group Limited for the financial year ended 31
December 2011.
Operational results
The operations of the Group ended with a turnover of GH¢30,179,406
for 2011 as against GH¢27,466,428 recorded in 2010, representing a
9.9% increase. This was largely due to a 17.3% rise in Graphic Sales
as well as a 6.2% increase in Advertising Income.
1110. Presented in Table 94 are the performance indicators.
Table 94: Income Statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Turnover 30,179,406 27,466,428 9.9
Cost of Sales 12,958,537 11,193,851 15,8
Gross Profit 17,220,869 16,272,577 5.8
Other Income 522,136 408,570 27.8
Total Income 17,743,005 16,681,147 6.4
Expenditure
Distribution Expenses 4,519,325 3,834,463 17.9
General & Adm. Expenses 8,395,795 6,942,750 20.9
Finance Charge 1,326,148 2,091,364 (36.6)
Exceptional Item 1,000,000 - -
Taxation 72,818 1,011,639 (92.8)
Total Expenditure 15,314,086 13,880,216 10.3
Net Profit 2,428,919 2,800,931 (13.3)
1111. Total Income increased by 6.4% from GH¢16,681,147 in 2010
to GH¢17,743,005 in 2011. This was as a result of a 9.9% and 27.8%
rise in Turnover and Other Income respectively.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 229 Other Statutory Institutions for the period ended 31 December
1112. Total Expenditure increased by 10.3% from GH¢13,880,216 in
2010 to GH¢15,314,086 in 2011. The increase was due to a 17.9%
and a 20.9% increase in Distribution Expenses and General and
Administrative Expenses respectively. An exceptional item of
GH¢1,000,000 made up of cost of business restructuring (redundancy
and severance cost) also contributed to the increase.
1113. The Group registered a net profit of GH¢2,428,919 for the year
under review as against a figure of GH¢2,800,931recorded in 2010,
representing a 13.3% drop.
Financial position
1114. Table 95 provides the financial position of the Group as at the
end of 2011.
Table 95: Balance Sheet as at 31 December 2011
2009
GH¢
2008
GH¢
%
Change
Non-Current Assets 22,722,420 22,326,160 1.8
Current Assets 8,948,947 7,152,525 25.1
Current Liabilities 10,242,234 7,303,488 40.2
Net Current Liabilities (1,290,287) (150,963) 754.7
Long-Term Liabilities ( 1,300,881 3,972,864 (67.3)
Net Assets 20,131,252 18,202,333 10.6
Current Ratio 0.9:1 1.0:1
1115. Non-Current Assets for the year increased by 1.8% from
GH¢22,326,160 in 2010 to GH¢22,722,420 in 2011. This was as a
result of additions to Fixed Assets.
1116. Current Assets increased by 25.1% from GH¢7,152,525 in
2010 to GH¢8,948,947 in 2011. The increase was due to major
increases in Stocks, Trade Debtors, Tax Credits, and Bank and Cash
Balances.
1117. Current Liabilities also increased by 40.2% from
GH¢7,303,488 in 2010 to GH¢10,242,234 in 2011. This was as a
230 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
result of increase in Trade Creditors, Sundry Creditors and accruals as
well as Bank Overdraft.
1118. The Groups liquidity position of 0.9:1 (2010:1.0:1) depicts its
inability to meet its short-term financial obligations when they fall
due.
MANAGEMENT ISSUES
Differences in stock records – GH¢171,710
1119. We noted during the audit that there was a difference of
GH¢171,710 between the general ledger stock balances and the
physical stock balances as at 31 December 2011.
1120. This could lead to overstatement of stock balance and theft of
stock.
1121. We recommended that management should investigate the
cause of the difference and put in measures to resolve the difference.
Difference in Intercompany balance – GH¢30,068
1122. We noted during our review that the intercompany balance
with G-Pack Ltd did not agree with that of Graphic Communications
Group Limited. The balance as at 31 December 2011 as per GCGL
general ledger was GH¢1,078,694 but that of G-Pack general ledger
was GH¢1,048,626 resulting in a difference of GH¢30,068.
1123. This could lead to intercompany accounts being misstated and
disputed.
1124. We recommended that management prepares reconciliation
between the subsidiary and the parent company accounts. Any
differences noted should be investigated and resolved.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 231 Other Statutory Institutions for the period ended 31 December
NATIONAL FILM AND TELEVISION INSTITUTE
Introduction
1125. This report relates to the audited accounts of the National Film
and Television Institute for the year ended 31 December 2011.
Operational results
1126. Government subvention was the main source of income to the
Institute, constituting 77.9% of total income. This fell from
GH¢1,120,283 in 2010 to GH¢1,061,410 in 2011, a decrease of 5.3%.
The Institute generated other income from staff production
(GH¢25,575.00), sponsorship (GH¢10,250.00) and school fees
(GH¢194,824.00).
1127. Total expenditure decreased marginally by 7.5% to
GH¢1,208,261 in 2011 (2010: GH¢1,306,068). This was largely due
to a 87.5% fall in depreciation. The performance indicators of the
Institute are shown in Table 96.
Table 96: Performance indicators for 2011 and 2010
Income
2011
GH¢
2010
GH¢
%
Change
Government Subventions 1,061,410 1,120,283 (5.3)
Expenditure
Personnel Emoluments 548,012 576,225 (4.9)
Administrative Expenses 572,113 662,076 (13.6)
Service Expenses 88,136 67,767 30.1
Total Expenditure 1,208,261 1,306,068 (7.5)
Net Subvention (146,851) (185,785) 20.9
Other Income 244,204 162,109 50.6
Deferred Income 55,245 69,742 20.8
Surplus/(Deficit) 152,598 46,066 231.3
1128. The Institute’s operating results for 2011 registered a surplus of
GH¢152,598 (2010: GH¢46,066) representing an increase of 231.3%.
232 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial Position
1129. Presented in Table 97 is the analysis of movements in the
balance sheet item.
Table 97: Balance Sheet as at 31 December 2011
Item
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 359,902 247,677 45.3
Capital Work-In-Progress 331,387 331,387 -
Current Assets 226,679 233,207 (2.8)
Deferred Income 407,074 437,471 (6.9)
Net Current Assets 58,935 56,538 4.2
Net Assets 343,150 198,131 73.2
Current Liabilities 167,744 176,669 (5.1)
Current Ratio 1.4:1 1.3:1
1130. Non-Current Assets rose from GH¢247,677 in 2010 to
GH¢359,902 in the year 2011, registering a 45.3% increase. This was
largely due to the acquisition of computers (GH¢40,442), Studio
Equipment (GH¢31,171) and Furniture and Fittings (GH¢49,824).
Capital Work in progress remained unchanged at GH¢331,387.
1131. Current Assets decreased by 2.8% from GH¢233,207 in the
previous year to GH¢226,679 in 2011. This was because
Prepayments, Student debtors and Staff debtors declined by 645.6%
and 24.7% respectively.
1132. Current Liabilities also fell by 5.1% to GH¢167,744 in 2011 as
against the 2010 figure of GH¢176,669. This was largely due to the
settlement of Bank Overdraft received from Bank of Ghana.
1133. Current ratio for 2011 was 1.4:1 compared to 1.3:1 at the end
of 2010. Though the liquidity position has improved over the
previous year, this fell below the bench mark of 2:1 indicating the
Institute’s inability to meet its short term financial obligations as and
when they fall due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 233 Other Statutory Institutions for the period ended 31 December
NEW TIMES CORPORATION
Introduction
1134. This report relates to the audited accounts of the New Times
Corporation for the year ended 31 December 2011.
Operational results
1135. The Corporation’s turnover increased from GH¢7,594,120 in
2010 to GH¢9,774,426 in the year under review. The 28.7% increase
was as a result of a rise in sale of newspapers during the year.
1136. Cost of sales increased by 28.9% to GH¢6,317,079 in the
current year as against GH¢4,900,976 in the previous year resulting in
the gross profit of GH¢3,457,347 during the year under review.
1137. A summary of operational results of the Corporation is
provided in Table 98.
Table 98: Income statement for 2011
2011
GH¢
2010
GH¢
%
Change
Turnover 9,774,426 7,594,120 28.7
Cost of Production 6,317,079 4,900,976 28.9
Gross Profit 3,457,347 2,693,144 28.4
General, Admin.& Selling
Expenses
3,643,391 2,287,078 59.3
Net Operating Profit (186,044) 406,066 (145.8)
Other Income 93,938 90,998 3.2
Profit /(Loss) before tax (92,107) 497,064 (118.5)
Provision for Taxation 55,087.84 72,419 (23.9)
Net Profit / (Loss) (147,195) 424,645 (134.7)
1138. The General, Administrative and Selling expenses recorded a
59.3% rise from GH¢2,287,078 in 2010 to GH¢3,643,391 in 2011.
This mainly resulted from increase in Personnel cost, Premises
Expenses, Office Expenses, Finance Costs and other General
Expenses.
234 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1139. The Corporation registered a net loss after tax of GH¢147,195
during the year as against a profit of GH¢424,645.00 in the previous
year representing a fall of 134.7%. This was transferred into the
income surplus account which reduced the balance from GH¢671,194
in 2010 to GH¢508,420, a fall of 24.3%
Financial position
1140. The Balance sheet of the Corporation as at 31 December
2011is shown in Table 99.
Table 99: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non –Current Assets 2,206,343 2,297,859 (4.0)
Current Assets 3,949,653 3,438,551 14.9
Current Liabilities 3,980,710 3,398,353 17.1
Net Current Assets/
(Liabilities)
(31,057) 40,198 (177.3)
Net Assets 2,175,286 2,338,058 (7.0)
Current Ratio 1.0:1 1.0;1
1141. There was a change in value of Non- Current Assets from
GH¢2,297,859 in the previous year to GH¢2,206,343 in the current
year, representing a fall of 4.0%. There were additions to the tune of
GH¢305,193 but this was offset by depreciation charge for the year.
1142. Current Assets however increased by 14.9% to GH¢3,949,653
in 2011 from an amount of GH¢3,438,551 in 2010. An increase in
Stock, Staff Debtors, Taxation, Cash and Bank balances accounted for
the rise.
1143. Current liabilities also increased by 17.1% over the previous
year’s figure of GH¢3,398,353 to GH¢3,980,710 for the year under
review, due to a rise in Sundry Creditors and Accrued liabilities.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 235 Other Statutory Institutions for the period ended 31 December
1144. The current ratio of the Corporation stood at 1.0:1(2010:1.0:1).
This falls below the bench mark of 2:1 and will impede its ability to
meet its short term obligations should they fall due.
MANAGEMENT ISSUES
Management of staff Imprest
1145. Best accounting practice requires that accountable imprest
should be accounted for by the holder after execution of its intended
purpose.
1146. We noted that for the period under review, staff imprest of
GH¢50,332.00 granted to staff have not been retired despite our
highlights in the previous management reports on the inherent risk and
dangers associates with this lapse.
1147. This continues occurrence is due to management’s failure to
ensure that beneficiaries promptly retire imprest granted to them.
1148. The lax in controlling accountable imprest make the
corporation susceptible to misappropriation of funds. It may also lead
to preparation of misleading financial statement since some of these
funds might have been used in payment for some expenses which may
not be reflected in the total cost of production during the year.
1149. We recommend that stringent procedures be put in place to
check the management and control of accountable imprest so that
beneficiaries do not keep them for unreasonable long period time.
1150. Management should as matter of urgency also ensure that staff
involved accounts for the imprest of GH¢50,332.00.
Debts Age Analysis
1151. Our examination of the financial records revealed that an
amount of GH¢516,581.50 owed by existing organizations has been
outstanding for long periods without recovery.
236 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1152. Management’s failure to pursue collection of these debts
brought about this lapse.
1153. Non-collection of these debts will affect the operations of the
Corporation which will have to depend on other sources for funding
and lieu interest charges.
1154. We recommended that Management should expedite action to
recover these long outstanding debt of GH¢516,581.50 and ensure that
in future customers clear their debts before Services are provided
them. They should also ensure that the credit department recovers
debt on time and the Debtors Register is updated with the customers’
current addresses and contact details so that the Corporation will not
lose money through bad debts.
MINISTRY OF WATER RESOURCES,
WORKS AND HOUSING
TEMA DEVELOPMENT CORPORATION
Introduction
1155. This report relates to the audited accounts of the Tema
Development Corporation for the year ended 31 December 2011.
Operational results
1156. Operations for the year closed with a surplus of GH¢3,225,350
compared with a surplus of GH¢2,758,091 in 2010, representing an
increase of GH¢467,259 or 16.9%. Presented in Table 100 is the
summarised operational performance of the Corporation.
Table 100: Income statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Rentals & Estate Development 11,742,541 8,058,538 45.7
Sundry Income 2,028,439 1,550,576 30.8
Total Income 13,770,980 9,609,114 43.3
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 237 Other Statutory Institutions for the period ended 31 December
Expenditure
Direct Expenses 2,777,555 997,738 178.4
General & Admin. Expenses 8,726,905 6,651,685 31.2
Total Expenditure 11,504,460 7,649,423 50.4
Net Profit on Rental & Estate
Development
2,266,520 1,959,691 15.7
Profit on Sale of Fixed Assets 137,621 30,648 349.0
Investment Income 1,894,726 1,479,085 28.1
Dividend Income 1,600 1,500 6.7
Profit Before Tax 4,300,467 3,470,924 23.9
Corporate Tax 1,075,117 712,833 50.8
Profit After Tax 3,225,350 2,758,091 16.9
1157. The operational income of the Corporation which were from
Rental and Estate Development and Sundry Income rose from
GH¢9,609,114 in 2010 to GH¢13,770,980 in 2011, representing a
43.3% increase. Rental and Estate Development, comprising sale of
houses, sale of serviced plots, ground rent and house shop rent showed
appreciable increases.
1158. Sundry Income which is made up of income from site
plan/building permit, land leases and transfers among others increased
from GH¢1,550,576 to GH¢2,028,439, a rise of 30.8%.
1159. The total expenses of the Corporation over the review year
which is classified into Direct and General Administration and Selling
Expenses increased from GH¢7,649,423 to GH¢11,504,460,
representing an increase of 50.4%. Cost of Houses sold and Staff costs
accounted significantly for the increase.
Financial position
1160. A summary of the Corporation’s financial position as at 31
December 2011 is shown in Table 101.
238 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 101: Balance sheet as at 31December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current Assets 5,244,801 5,503,375 (4.7)
Current Assets 45,291,069 23,806,802 90.2
Current Liabilities 28,593,208 12,109,338 136.0
Net Current Assets 16,697,861 11,697,464 42.7
Net Assets 21,942,662 17,200,839 27.6
Current Ratio 1.6:1 1.9:1
1161. Non-current Assets registered a marginal decline of 4.7% or
GH¢258,574 to GH¢5,244,801 in 2011 from GH¢5,503,375 in 2010.
The decline was as a result of depreciation charge and disposals of
Residential Buildings, Furniture and Fittings and Motor vehicles.
1162. Current Assets shot up by 90.2% to GH¢45,291,069 in 2011
from GH¢23,806,802 in 2010. This was due to significant increases
in Works-In-Progress (198.0%) and Short-Term Investments
(199.6%).
1163. Current Liabilities went up by 136.0% from GH¢12,109,338 in
2010 to GH¢28,593,208 in 2011. This arose due to increases in
sundry creditors, serviced plot deposits and contractors retention.
1164. Net Assets of the Corporation grew by 27.6% from
GH¢17,200,839 in 2010 to GH¢21,942,662 in 2011.
1165. The Corporation’s liquidity position for the year was 1.6:1
(2010: 1.9:1). As this falls below the benchmark of 2:1 it indicates
that the Corporation would be unable to pay its short-term debts when
they fall due.
MANAGEMENT ISSUES
Indebtedness to Lands Commission - GH¢16,574,567
1166. In the year under review, it came to our attention through a
letter dated 13/04/10 with reference number SCR/LCD/353/42 that the
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 239 Other Statutory Institutions for the period ended 31 December
Corporation was indebted to Lands Commission to the tune of
GH¢16,574,567 (£7,705,517) in unpaid rent spanning twenty-three
(23) years.
1167. In response, management objected to the amount being claimed
by the Lands Commission because the Corporation does not hold the
39,154.3 acres used by Lands Commission to determine the bill.
Management also indicated that a meeting was being arranged to
reconcile the land size and the amount involved.
1168. We recommended that Management should have a discussion
with the authorities of Lands Commission to resolve the issue.
WATER RESOURCES COMMISSION
Introduction
1169. This report relates to the audited financial statements of Water
Resources Commission for the financial year ended 31 December
2011.
Operational results
1170. The Commission’s total income decreased by 14.3% from
GH¢2,290,488 in 2010 to GH¢1,963,995 in 2011, even though
income derived from IGF grew by 20.8% from GH¢429,553 in 2010
to GH¢518,882 in 2011. The fall in Other Income from
GH¢1,806,935 in 2010 to GH¢1,445,113 in 2011, accounted for the
decrease in Total Income. The decline in other income was mainly
due to significant downward movement in DANIDA grants and
European Union Funds by 78.8% and 49.6% respectively.
1171. The operational results are shown in Table 102.
Table 102: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Income (IGF) 518,882 429,553 20.8
Other Income 1,445,113 1,860,935 (22.3)
Total Income 1,963,995 2,290,488 (14.3)
240 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Expenditure
General Adm. Expenses 2,313,643 1,515,804 52.6
Net (Loss) Income (349,648) 774,684 (145.1)
1172. General administrative expenses grew by 52.6% from
GH¢1,515,804 in 2010 to GH¢2,313,643 in 2011. The growth in
general administration expenses in 2011 was due to increases in
salaries (46.3%), Motor Vehicle Running Cost (126.1%),
Workshop/Seminar (63.3%) Community Support (306.4%), contract
for printing (155.9%) and Consultancy service fees (13.4%) over the
previous year.
1173. Net Income significantly declined from GH¢774,684 in 2010 to
a net loss of GH¢349,648 in 2011. The significant reductions in
DANIDA grants and European Union Funds and the rise in total
expenses in 2011 contributed to the decrease in net income.
Financial position
1174. Shown in Table 103 is the financial position of the
Commission as at 31 December 2011
Table 103: Balance sheet as at 31 December 2011
Income 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 775,695 482,473 60.8
Current Assets 587,445 1,200,875 (51.1)
Current Liabilities 69,054 39,614 74.3
Net Assets 1,294,086 1,643,734 (21.3)
Current Ratio 8.5:1 30.3:1
Represented by:
Accumulated Fund 1,234,241 1,583,889 (22.1)
Development Fund 59,845 59,845 -
1175. Non-current Assets grew by 60.8% from GH¢482,473 in 2010
to GH¢775,695 in 2011. The increase was attributed to additions of
GH¢459,759 to existing assets.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 241 Other Statutory Institutions for the period ended 31 December
1176. Current Assets on the other hand decreased by 51.1% from
GH¢1,200,875 in 2010 to GH¢587,445 in 2011. The reduction was as
a result of a 62.5% decrease in cash and cash equivalents.
1177. Current Liabilities registered an increase of 74.3% over 2010
figure of GH¢39,614 to GH¢69,054 in 2011. Increase in sundry
payables (111.3%) accounted for the rise.
1178. The current ratio of the Commission fell from 30.3:1 in 2010 to
8.5:1 in 2011. The decrease, however would not affect the short term
solvency of the Commission since it exceeded the benchmark.
STATE HOUSING COMPANY LIMITED
Introduction
1179. This report relates to the audited accounts of State Housing
Company Limited for the year ended 31 December 2011.
Operational results
1180. Income from the sale of houses which is the mainstay of the
Company was GH¢2,012,185, increased by 9.3% over the 2010 figure
of GH¢1,841,630. This income component constituted about 35% of
overall total income of the Company.
1181. Other income also rose by 18.4% from GH¢3,063,284 in 2010
to GH¢3,627,370 in 2011. This largely resulted from the increases in
ground rent from GH¢858,371 in 2010 to GH¢1,332,850 in 2011,
legal fees from GH¢756,774 in 2010 to GH¢947,381 in 2011 and
development and plot release fee from GH¢224,211 in 2010 to
GH¢399,409 in 2011. The performance components for the period
under review are shown in Table 104.
Table 104: Performance indicators for 2011 and 201
2011
GH¢
2010
GH¢
%
Change
Turnover 2,012,185 1,841,630 9.3
Other Income 3,627,370 3,063,284 18.4
Finance Income 46,096 128,263 (64.1)
Total Income 5,685,651 5,033,177 13.0
242 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Expenditure
Cost of sales 1,411,181 1,263,033 11.7
Staff cost 2,271,260 1,803,994 25.9
Administrative cost 1,117,199 979,554 14.1
Selling and Distribution cost 56,536 41,935 34.8
Finance Expenses 13,240 27,239 51.4
Taxation 169,819 136,744 24.2
Total Expenditure 5,039,235 4,252,499 18.5
Net profit 646,416 780,678 (17.2)
1182. Finance Income decreased by 64.1% from GH¢128,263 in
2010 to GH¢46,096 in 2011. This happened because no interest was
received on investments during the year under review as compared to
GH¢123,835 for 2010.
1183. Total Expenditure increased slightly by 18.5% from
GH¢4,252,499 in 2010 to GH¢5,039,235 in 2011. It was made up of
cost of sales which rose to GH¢1,411,181 from an amount of
GH¢1,263,033 in 2010 due to increase in construction cost from
GH¢1,187,380 in 2010 to GH¢1,344,922 in 2011. Staff cost which
rose from GH¢1,803,994 in 2010 to GH¢2,271,260 in 2011 was as a
result of increase in salaries and wages from GH¢1,495,547 in 2010 to
GH¢1,948,512 in 2011.
1184. Selling and distribution cost increased from GH¢41,935 in
2010 to GH¢56,536 in 2011. This was largely due to an increase in
commission charges from GH¢6,112 in 2010 to GH¢29,842 in 2011.
Administrative cost which formed an integral part of total expenditure
went up by 14.1%. This was as a result of increase in legal and
professional charges from GH¢36,269 in 2010 to GH¢140,975 in
2011.
1185. Net profit however recorded a decrease of 17.2% from
GH¢780,678 in 2010 to GH¢646,416 in 2011, which has been
transferred to Income Surplus Account.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 243 Other Statutory Institutions for the period ended 31 December
Financial Position
1186. Presented in Table 105 is the balance sheet as at 31 December
201.
Table 105: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current assets 2,394,075 1,827,177 31.0
Current assets 6,462,262 6,075,670 6.4
Current Liabilities 6,661,970 6,319,639 5.4
Non-current Liabilities 958,543 979,843 (22)
Net Assets 1,235,824 603,365 104.8
Current Ratio 0.97:1 0.96:1
1187. Non-current assets registered an increase of 31% from
GH¢1,827,177 in 2010 to GH¢2,394,075 in 2011. This was largely
due to new development expenditure incurred on land, roads and
drains, water and electricity totalling GH¢647,761.
1188. Current assets also rose from GH¢6,075,670 in 2010 to
GH¢6,462,262 in 2011, representing a marginal increase of 6.4%.
This was due to increase in cash and bank balances from GH¢640,841
in 2010 to GH¢783,494 in 2011.
1189. Current liabilities also went up marginally by 5.4% from
GH¢6,319,639 in 2010 to GH¢6,661,970 in 2011, largely due to a
6.2% increase in Trade and other payables.
1190. The liquidity ratio of the Company stood at 0.97:1 in the year
under review compared to 0.96:1 in the previous year, an indication of
the Company’s inability to meet its short-term debts as and when they
fall due.
MANAGEMENT ISSUES
Tangible fixed assets not insured
1191. We noted that tangible fixed assets acquired by the Company
were not insured. The effect is that, in the event of a fire outbreak, the
Company could suffer heavy losses, which might result in its total
collapse.
244 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1192. We therefore advised management to take appropriate steps to
have these assets properly insured to safeguard them against fire
outbreaks and losses.
1193. Management responded that, it had received insurance proposal
from Unique Insurance Company but were considering the financial
implication of the proposal.
MINISTRY OF TRADE AND INDUSTRIES
GHANA STANDARDS BOARDS
Introduction
1194. This is a report on the audited accounts of the Ghana Standards
Boards for the year ended 31 December 2010.
Operational results
1195. Total Income exceeded Total Expenditure by GH¢4,594,306,
recording an improvement of 7.7% over the previous year’s surplus of
GH¢4,265,764. Performance details are shown in Table 106.
Table106: Income statement for 2010
Income 2010
GH¢
2009
GH¢
%
Change
Recurrent Grant 2,592,205 2,021,186 28.3
Internally Generated Funds 10,521,019 9,089,570 15.7
Deferred Revenue Grant - 163,303 -
Donations 247,213 - -
Total Income 13,360,437 11,274,059 18.5
Expenditure
Personnel Emoluments 4,054,120 3,429,314 18.2
Administrative Expenses 3,143,155 2,259,729 39.1
Service Expenses 1,568,856 1,319,252 18.9
Total Expenditure 8,766,131 7,008,295 25.1
Surplus / (Deficit) 4,594,306 4,265,764 7.7
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 245 Other Statutory Institutions for the period ended 31 December
1196. Total Income increased by18.5% from GH¢11,274,059 in 2009
to GH¢13,360,437 in 2010. The increase was as a result of 100%
increase in Donations. This represents consumables and spare parts
received from Non-Governmental Organisations valued at invoice
amount.
1197. Total Expenditure increased from GH¢7,008,295 in 2009 to
GH¢8,766,131 in 2010, an increase of 25.1%. This was due to the
18.2% increase in Personnel Emoluments, 39.1% increase in
Administrative Expenses and 18.9% increase in Service Activity
Expenses. The increases in Utilities, Repairs and Maintenance Cost,
Medical Expenses, Honorarium and staff Welfare Expenses mainly
accounted for the rise in Administrative Activity Expenses.
Financial position
1198. Table 107 presents a sumarised balance sheet as at 31
December 2010.
Table107: Balance sheet as at 31 December 2010 Income 2010
GH¢
2009
GH¢
%
Change
Non-Current Assets 12,210,591 9,281,947 31.6
Current Assets 12,965,303 10,735,394 20.8
Current Liabilities 197,976 244,349 19.0
Net Current Assets 12,767,327 10,491,045 21.7
Net Assets 24,977,918 19,772,992 26.3
Current Ratio 65.5:1 43.9:1
1199. The non-current assets went up by 31.6% from GH¢9,281,947
in 2009 to GH¢12,210,591 in 2010. This was due to the acquisition of
additional property, plant and Equipment and 133.2% increase in
Capital Work-in-progress.
1200. Current assets also increased by 20.8% from GH¢10,735,394 in
2009 to GH¢12,965,303 in 2010. The increase of 26.9% in cash and
cash equivalent and 34.1% increase in inventories accounted for the
rise.
246 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1201. Current liabilities stood at GH¢244,349 in 2009 and
GH¢197,976 in 2010, an increase of 19.0%. The 113.4% increase in
outstanding payments on Statutory Liabilities resulted in the rise.
1202. The current ratio was 65.5:1 for 2010 (2009: 43.9:1) and this
indicated a favourable position for the Board to meet its short-term
obligations when they fall due.
MANAGEMENT ISSUES
Auction of vehicles - GH¢26,300.00
1203. The Board auctioned two saloon cars and five pick-up’s valued
at GH¢26,300 by STC. We however noted that the Board did not
assign an officer to the public auction of the Board’s vehicles to
receipt proceeds that accrued from the auction sales as had been the
generally accepted practice. As a result, documents to authenticate the
receipt of proceeds which accrued from the auction sale and the
subsequent payment into the Non-Tax Revenue Account at the Bank
of Ghana were not made available for our inspection.
1204. This could lead to loss of revenue to government.
1205. We recommended that an official of the Board should be
present whenever any item of the Board is to be auctioned in order to
ensure proper accountability. Also, the Board should produce the
relevant documents for the confirmation of receipts of the proceeds
and subsequent payment into the Non-Tax Revenue Account at Bank
of Ghana.
GHANA HEAVY EQUIPMENT LIMITED
Introduction
1206. This report relates to the audited accounts of the Ghana Heavy
Equipment Limited for the year ended 31 December 2011.
Operational results
1207. The Company’s operations for the year which ended with a
profit of GH¢19,230 showed a marked improvement over the prior
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 247 Other Statutory Institutions for the period ended 31 December
year’s loss of GH¢6,411, a decrease of 400.0%. Presented in Table
108 are details of the operational results:
Table 108: Performance indicators for 2011 and 2010
Item
2011
GH¢
2010
GH¢
%
Change
Sales 2,249,347 1,906,288 17.9
Less cost of sales 1,116,827 807,977 38.2
Gross Profit 1,132,520 1,098,311 3.1
Other Income 241,413 229,020 5.4
Total Income 1,373,933 1,327,331 3.5
Expenditure
Operating Expenses 1,223,720 1,018,782 20.1
Finance Cost 130,983 314,960 ( 58.4)
Total Expenditure 1,354,703 1,333,742 1.6
Net Profit/(loss) 19,230 (6,411) (400.0)
1208. Sales increased by 17.9% from GH¢1,906,288 in 2010 to
GH¢2,249,347 in 2011. This was mainly due to a 837.9% increase in
commission earned.
1209. Cost of sales of GH¢1,116,827 also increased by 38.2% or
GH¢308,850 over the previous year’s figure of GH¢807,977.00
1210. Other Income increased from GH¢229,020 in 2010 to
GH¢241,413 in 2011, representing an increase of 5.4%. This was
mainly due to interest earned on Treasury Bill in the year under
review.
1211. Total Expenditure recorded an increase of 1.6% from
GH¢1,333,742 in 2010 to GH¢1,354,703 in 2011. This was due to a
66.3% rise in Repairs and Maintenance Expenses.
Financial position
1212. Table 109 represents the Company’s financial position for the
period reviewed.
248 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 109: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Fixed Assets 917,729 892,817 2.8
Long Term Receivables 2,356,558 2,556,558 (7.8)
Current Assets 6,237,183 4,890,738 27.5
Current Liabilities 3,721,061 2,568,889 44.8
Net Current Assets 2,516,167 2,321,849 8.4
Total Assets 5,790,409 5,771,224 0.3
Current Ratio 1.6:1 1.9:1
1213. Fixed Assets at the close of 2011 amounted to GH¢917,729 as
against GH¢892,817 in the preceding year, representing an increase of
2.8%. The increase was due to additions to Motor Vehicles, Furniture
and Equipment and Computer during the year.
1214. Long-Term Receivables of GH¢2,356,558, which represents an
amount receivable from the Ministry of Trade and Industry for
funding the rehabilitation of Ghana House decreased by 7.8% from
GH¢2,556,558 in 2010.
1215. Current Assets rose from GH¢4,890,738 in 2010 to
GH¢6,237,183 in 2011, indicating a 27.5% increase. This was
accounted for by an investment in treasury bills of GH¢1,882,104.
1216. Current Liabilities increased by 44.8% to GH¢3,721,016 in
2011 from GH¢2,568,889 in 2010. The increase resulted from a loan
of GH¢2,000,000 received from Ministry of Trade and Industry to
support its operations.
1217. The liquidity position as measured by the current ratio of 1.6:1
showed an unhealthy position which portrays the inability of the
Company to meet its short term obligations falling due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 249 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Accounts receivables - GH¢1,213,643.22
1218. We observed that a total amount of GH¢1,213,643.22 was still
standing on Debtors accounts as at the end of the audit. Debtors’ age
analysis revealed that some debts had stood for more than four years.
1219. Some of these debts are not recoverable thus there is the need
to take appropriate action in line with existing regulations in order to
show a true and fair view of the financial statements.
1220. Management was advised to make strenuous efforts and
recover the debt and in instances of unrecoverable debts, appropriate
action should be taken in line with existing regulations.
1221. Management explained that efforts have been made to recover
the debts to the extent of sending some of them to court and
repossessing some machines for resale.
GHANA SUPPLY COMPANY LIMITED
Introduction
1222. This report relates to the audited accounts of the Ghana Supply
Company Limited for the period ended 31 December 2010.
Operational results
1223. Table 110 provides the performance indicators.
Table 110: Income statement for 2010
2010
GH¢
2009
GH¢
%
Change
Turnover 685,159 735,617 (6.9)
Selling, Administrative &
General Expenses
(1,487,089) (1,342,203) 10.8
Operating Loss (801,930) (606,586) 32.2
Other Income 195,841 584,682 (66.5)
(Loss) before Taxation (606,090) (21,904) 2,667.0
Taxation - - -
Loss after Taxation (606,090) (21,904) 2,667.0
250 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1224. The Company recorded a net loss of GH¢606,090 in 2010, thus
registering a 2,667.0% increase over the 2009 net loss of GH¢21,904.
1225. Turnover for the period decreased by 6.9% from GH¢735,617
in 2009 to GH¢685,159 in 2010. The decrease was mainly due to a
68.4% reduction in Training Income and no receipt for Tender Income
in the year. Decreases in Rental Income (36.1%), Investment income
(88.5%), Exchange Gain (89.0%) and sundry Income (99.8%) mainly
accounted for the decline in other income.
1226. Operating Expenses increased by 10.8% from GH¢1,342,203
in 2009 to GH¢1,487,089 in 2010. The 113.7% increase in Director’s
Emoluments and 100.0% increase in Auditors’ Remuneration were
largely responsible for the increase in Expenses.
Financial position
1227. The highlights of the Company’s financial position are
presented in Table111.
Table 111: Balance sheet as at 31 December 2010
2010
GH¢
2009
GH¢
%
Change
Non-Current Assets 1,385,523 1,420,593 (2.5)
Current Assets 1,024,533 840,452 21.9
Current Liabilities 1,187,462 432,361 174.6
Net Assets 1,222,594 1,828,684 (33.1)
Current Ratio 0.9:1 1.9:1
1228. Non-Current Assets fell from GH¢1,420,593 in 2009 to
GH¢1,385,523 in 2010, representing a 2.5% decrease. This was due
to depreciation charge for the period.
1229. Current Assets rose by 21.9% to GH¢1,024,533 in 2010 from
GH¢840,452 in 2009. This was largely due to increases in stocks
(100%), Trade Receivables (29.1%) and Short Term Investments
(11.6%).
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 251 Other Statutory Institutions for the period ended 31 December
1230. Current Liabilities recorded a significant (174.6%) increase
over the 2009 amount of GH¢432,361 to GH¢1,187,462 in 2010.
This was as a result of increases in Trade Payables, Bank Loans and
Bank overdraft.
1231. The increases in the Company’s Current Liabilities negatively
affected the liquidity position from 1.9:1 in 2009 to 0.9:1 in 2010,
indicating the company’s inability to meet its short-term debts as and
when they fall due.
MINISTRY OF ROADS AND HIGHWAYS
GHANA HIGHWAY AUTHORITY
Introduction
1232. This report covers the audited accounts of the Ghana Highways
Authority for the year ended 31 December, 2011.
Operational results
1233. Recurrent Grant for the period under review decreased
marginally by 2.2% from GH¢102,155,289 in 2010 to
GH¢99,884,275 in 2011. This was due to 18% fall in Road Fund
Releases (Periodic and Routine Maintenance) from GH¢87,590,343 in
2010 to GH¢71,432,537 in 2011. Internally Generated Income from
Sundry Income also dropped from GH¢2,369,428 in 2010 to
GH¢698,048 in 2011. Performance indicators are shown in Table 112
Table 112: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Recurrent Grant 99,884,275 102,155,289 (2.2)
Expenditure
Personal Emolument 11,697,232 11,110,148 5.3
Administrative Expenses 2,582,436 1,819,408 41.9
Service Expenses 417,895 585,350 (28.6)
Investment 85,120,299 88,209,685 (3.5)
Total Expenditure 99,817,862 101,724,591 (1.9)
Surplus 66,413 430,698 (84.6)
252 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1234. Total Expenditure recorded a decrease of 1.9% from
GH¢101,724,591 in 2010 to GH¢99,817,862 in 2011, due to a 3.5%
reduction in Investment and a 28.6% drop in Service Expenses,
Personal Emolument which witnessed a rise of 5.3% was as a result
of increase in salaries and wages. Administrative Expenses which
rose from GH¢1,819,408 in 2010 to GH¢2,582,436 in 2011 was
largely due to increase in personal vehicle maintenance and
allowances from GH¢888,686 in 2010, representing a 87% rise.
1235. The Authority‘s operations for the year ended with an excess of
income over expenditure of GH¢66,413 compared with the 2010
figure of GH¢430,698, representing a fall of 84.6%
Financial position
1236. Detailed in Table 113 is the financial position of the Authority
as at 31 December 2011.
Table 113: Balance sheet as at 31 December 2011
2009
GH¢
2008
GH¢
%
Change
Non-Current Assets 22,210,958 20,141,875 10.3
Current Assets 29,098,743 11,810,705 146.4
Current Liabilities 10,721,832 8,659,287 23.8
Net Assets 40,587,869 23,293,293 74.2
Current Ratio 2.7:1 1.4:1
1237. Included in the non-current assets is an Investment (acquisition
of land) of GH¢600,000 in the year under review. Fixed assets rose
from GH¢20,141,875 in 2010 to GH¢21,210,958 in 2011, recording
an increase of 10.3%. The increase was due to acquisition of
additional assets such as furniture and fittings, plant and machinery
worth GH¢2,069,083.
1238. Current assets also increased by 146.4% from GH¢11,810,705
in 2010 to GH¢29,098,743 in 2011. The increase was mainly due to
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 253 Other Statutory Institutions for the period ended 31 December
increases in Accounts Receivable from GH¢1,171,218 in 2010 to
GH¢2,247,970 in 2011 and also Bank Balance from GH¢10,357,586
in 2010 to GH¢26,539,387 in 2011. The balance on the Project Fund
Account of GH¢15,508,192 accounted for the rise in the Bank
Balance.
1239. Current Liabilities also went up by 23.8% from GH¢8,659,287
in 2010 to GH¢10,721,832 in 2011. Increase in unclaimed
compensation for the year GH¢6,385,375 (2010: GH¢877,363)
accounted for the change.
1240. Liquidity position for 2011 as depicted by a current ratio of
2.7:1 indicates a favourable status as a result of which the Authority
could discharge its short-term obligation when they fall due.
MANAGEMENT ISSUES
Accountable Imprest - GH¢5,891.19
1241. We noted that a total amount of GH¢5,891.19 was not retired at
the Ashanti Regional Office. A schedule obtained had an opening
balance of GH¢4,650.53 which did not relate to any particular person.
This occurred as a result of imprest given to staff on official
assignments but at the end of the year, the officers refused to retire the
outstanding figure.
1242. This practice is in contravention of the FAR, 2004 Part XIII
Regulation 289(1) which states that “imprest shall be retired at the
close of a financial year and any imprest not so retired shall be
adjusted to a personal advance account in the name of the imprest
holder”.
1243. We attributed this anomaly to lack of an effective monitoring
mechanism put in place by management for quick accountability of
advances given out.
1244. We therefore advised management to put in place a strong
monitoring and retrieval mechanism to forestall future reoccurrence.
254 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Management should ensure that the amount involved is retrieved from
the concerned officers.
1245. Management responded that the recommendation had been
noted for compliance. Meanwhile, the Regional Accountant has been
directed to investigate the figure of GH¢4,650.53.
MINISTRY OF LOCAL GOVERNMENT AND RURAL
DEVELOPMENT
NORTHERN REGION POVERTY REDUCTION
PROGRAMME
IFAD LOAN NO.571-GH
Introduction
1246. This report relates to the audited financial statements of the
Northern Region Poverty Reduction Programme, IFAD Loan No.
571-GH under Ministry of Local Government and Rural Development
for the three (3) months ended 31 March 2012.
Operational results
1247. Total income for the Programme at the end of 3 months period
was US$76,914. This was Cash and Bank Balance brought forward
from previous year, 2011. Table 114 shows resources and expenditure
during the period. However comparison cannot be made with figures
of the corresponding period because of the difference in period
duration.
Table 114: Income statement for the 3 months ended 31 March
2012 Resources
3Months ending 31/3/2012
US$
Bank & Cash balance at 1/1/12 76,914
IFAD – Funding -
Other Income -
76,914
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 255 Other Statutory Institutions for the period ended 31 December
Expenditure
Technical assistance & studies 48,640
Training,Workshops & meeting -
Common Development Fund -
Staff travel allowances 3,349
Operation & maintenance cost 24,566
Bank & Cash balance 31/3/12 359
76,914
1248. Total Expenditure for the 3 months period amounted to
US$76,555.00. Technical assistance and studies accounted for 64% of
the total expenditure whilst operation and maintenance cost
contributed about 32% to the total expenditure.
1249. At the end of the 3 months period, a cash and bank balance of
US$359 was registered.
Financial position
1250. Shown in Table 115 is the financial position of the programme
as at 31 March 2012.
Table 115: Balance sheet as at 31 March 2012
1251. The amount recorded as Capital Expenditure was made up of
office equipment and material.
1252. Current Assets registered US$359 as at the end of the 3
months.
1253. Current Liabilities for the 3 months period went up to
US$36,366 (12 months-2011: US$18,605). The increment was due to
31 March 2012
US$
Capital Expenditure 9,360,157
Current Assets 359
Current Liabilities 36,366
Non-Capital Expenditure 4,432,845
256 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
consultancy fee of US$9,429, which did not exist in 2011 and a rise in
accrued audit fee from US$18,605 in 2011 to US$26,937 in 3 months
of 2012.
NORTHERN REGION POVERTY REDUCTION
PROGRAMME - IFAD LOAN NO. 571 – GH
Introduction
1254. This report relates to the audited financial statements of the
Northern Region Poverty Reduction Programme IFAD Loan No. 571
–GH under Ministry of Local Government and Rural Development for
the year ended 31 December 2011.
Operational Results
1255. Total receipts during the year decreased by 30.6% from US
$5,292,720 in 2010 to US $3,671,095 in 2011. A 41.3% decrease in
IFAD funding accounted for reduction in the total income. Other
Income which contributed about 2% of the total income was as a
result of exchange gain on foreign currency. Table 116 shows
resources and expenditure for the period. Table 116: Income statement for 2011
Resources
2011
US $
2010
US $
%
Change
Bank & Cash balance at 1/1/11 1,350,204 1,454,561 72
GOG – Funding - 34,213 (100)
IFAD Funding 2,234,520 3,803,946 (41.3)
Other Income 86,371 - -
3,671,095 5,292,720 (30.6)
Expenditure
Vehs, Office equip. & Maint. - 265,247 (100)
Techn. assistance & studies 174,927 282,037 38.0
Training , workshops & meeting 337,180 291,243 15.8
Common Development Fund 2,981,996 2,861,537 4.2
Staff travel allowances 14,413 85,515 83.1
Operation & maintenance cost 85,665 147,501 41.9
Exchange Loss - 9,436 (100.0)
District advances - 66,972 (100.0)
Bank & cash balance 31/12/11 76,914 1,283,232 (94.0)
Total Expenditure 3,671,095 5,292,720 (30.6)
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 257 Other Statutory Institutions for the period ended 31 December
1256. Total expenditure during the year decreased by 30.6% from US
$5,292,720 in 2010 to US $3,671,095 in 2011. The decrease in the
expenditure was largely due to decreases in technical assistance and
studies by 38%, staff travel allowance by 83.1% and operation and
maintenance cost by 41.9%.
1257. As a result of the significant reduction in income and marginal
increase in expenditure, the year 2011 closed with a bank balance of
US $76,914 as against US $1,283,232 in 2010, representing a
decrease of 94%.
Financial position
1258. Presented in Table117 is the financial position.
Table 117: Balance sheet as at 31 December 2011
2011
US $
2010
US $
%
Change
Capital Expenditure 9,360,157 6,378,161 46.8
Current Assets 76,914 1,350,204 93.3
Current Liabilities 18,605 18,605 -
Non-Capital Expenditure 4,356,290 3,662,154 19.0
Current Ratio 4.1:1 72:6:1
1259. The Capital Expenditure which was made up of office
equipment and materials had not changed.
1260. Current Assets decreased to US$76,914.00 as against
US$1,350,204 recorded in the previous year. The decrease was as a
result of decrease cash and bank balance US$18.60.
1261. Consequently Current Liabilities for the period saw no change
in 2010 and 2011 recording US$18,605.
INSTITUTE OF LOCAL GOVERNMENT STUDIES
Introduction
1262. This report covers the audited accounts of the Institute of Local
Government Studies for the year ended 31 December 2011.
258 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Operational Results
1263. The year 2011 ended with a surplus of GH¢575,033, which
represented a decrease of 375.7% over the previous year’s deficit of
GH¢208,585. Table 118 presents a summary of the Institute’s
performance indicators.
Table118: Income Statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Internally General Fund 4,439,009 1,473,436 201.3
Other Income 128,638 48,867 163.2
Donated Assets 18,872 - -
Total Income 4,586,519 1,522,303 201.3
Expenditure
Personnel Emoluments 793,273 422,858 87.6
Administrative Expenses 752,002 307,334 144.7
Service Expenses 2,466,211 1,000,696 146.4
Total Expenditure 4,011,486 1,730,888 131.8
Surplus / (Deficit) 575,033 (208,585) (375.7)
1264. Total Income rose by 201.3% from GH¢1,522,303 in 2010 to
GH¢4,586,519 in 2011. Internally Generated Fund comprising
receipts from rental, collaborations and academic programme
accounted for 96.8% of total income for the year. Interests on Bank
Accounts, Proceeds from Sale of ILGS Journals, ICT Training and
Consultancy services accounted for the rise in other income.
1265. Total Expenditure went up by 131.8% from GH¢1,730,888 in
2010 to GH¢4,011,486 in 2011. The rise was due to a 144.7% and
146.4% increase in Administrative and Service Expenses respectively.
Increases in Depreciation charge and Audit fee accounted for the rise
in Administrative Expenses whilst the rise in expenses on Training,
Workshops and Conferences, Travel and Transportation and
Publications contributed to the increase in Service Expenses.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 259 Other Statutory Institutions for the period ended 31 December
Financial Position
1266. Table 119 shows a summary of the Institute’s financial position
as at the end of the year reviewed.
Table 119: Balance sheet as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 198,537 45,027 340.9
Current Assets 531,150 93,156 470.2
Current Liabilities 118,881 177,898 (33.2)
Net Current Assets 412,269 (84,742) (586.5)
Net Assets 610,806 (39,715) (1,638)
Current Ratio 4.5:1 0.5:1
1267. Non-Current Assets increased by 340.9% from GH¢45,027 in
2010 to GH¢198,537 in 2011. The increase was due to the acquisition
of fixed assets within the year.
1268. Current Assets rose by 470.2% from GH¢93,156 in 2010 to
GH¢531,150 in 2011. This was as a result of increases in Debtors and
Bank and Cash Balances. Tax Credit Debtors largely accounted for
increase in debtors.
1269. Current Liabilities on the other hand decreased by 33.2% from
GH¢177,898 in 2010 to GH¢118,881 in 2011. This was due to
reduction in Creditors and Accrued Liabilities.
1270. There was a significant improvement in the Institute’s current
ratio as it ended the year with 4.5:1 beginning from 0.5:1. This shows
that the Institute can meet its short-term obligations when they fall
due.
260 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MINISTRY OF TRANSPORT
GHANA AIRPORTS COMPANY LIMITED
Introduction
1271. This report relates to the audited accounts of the Ghana
Airports Company Limited for the year ended 31 December 2011
Operational results
1272. The Company’s operations for the year under review resulted
in a significant Net profit of GH¢29,569,863 as against
GH¢15,296,888 recorded in the previous year, representing a rise of
93.3% mainly because of non-deduction of income tax expense.
Presented in Table 120 are the performance indicators.
Table 120: Income Statement for 2011
Total Income of the Company registered a 32.1% increase, improving
from GH¢55,483,650 in 2010 to GH¢73,304,299 in 2011. The
components of this were operating income and other operating
income. Operating Income contributed significantly to the Total
Income by 97.7% whilst Other Operating Income accounted for the
remaining 2.3%. The rise in Operating Income was mainly due to
increases in Airside, Airport passenger service charges, Airport pass
Income 2011
GH¢
2010
GH¢
%
Change
Operating Income 71,635,416 52,355,828 36.8
Other Operating Income 1,668,883 3,127,822 (46.6)
Total Income 73,304,299 55,483,650 32.1
Expenditure
Operating Expenses 36,916,593 33,110,333 11.5
Gen. & Administrative Exp. 6,652,364 7,020,124 (5.2)
Finance Costs 165,449 56,305 193.8
Income Tax Expense _ _ _
Total Expenditure 43,734,406 40,186,762 8.8
Net Profit 29,569,893 15,296,888 93.3
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 261 Other Statutory Institutions for the period ended 31 December
Royalties and Car Park receipts. However, the significant drop in
Interest Income and Exchange Difference was the cause of the fall in
Other Operating Income.
1273. Total Expenditure registered a 8.8% increase from
GH¢40,186,762 in 2010 to GH¢43,734,406 in 2011. This was mainly
due to increases in Operating Expenses and Finance Cost. Staff cost,
contract services, utility cost and Training Cost (Local /Foreign)
accounted for the high increase in operating expenses. Administrative
expenses on the other hand decreased by 5.2% due to significant
reduction in printing cost, Hajj Operations costs, Medical Expenses,
Legal fees and consultancy charges.
Financial Position
1274. Table 121 provides the financial position of the company as at
31 December 2011.
Table 121: Balance Sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non- Current Assets 148,468,540 127,585,485 16.4
Current Assets 42,207,172 23,627,321 78.6
Current Liabilities 27,918,462 26,510,125 5.3
Non-Current
Liabilities
96,921,471 88,436,795 9.6
Net Assets 65,835,779 36,265,886 81.5
Current Ratio 1.5:1 0.9:1
1275. The Company’s Non-Current Assets which stood at
GH¢127,585,485 in 2010 went up by 16.4% to register GH¢
148,468,540 in 2011. This was due to the purchase of additional Fixed
Assets and increase in Investments. Included in Property, Plant and
Equipment are Assets held under Finance lease agreement with
Ecobank Ghana Limited.
262 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1276. Current Assets also increased from GH¢23,627,321 in 2010 to
GH¢42,207,172 in 2011 representing 78.6% rise. This rise was mainly
due to increases in the year end Bank Balance and Accounts
Receivables.
1277. Current Liabilities increased by 5.3% from GH¢26,510,125 in
2010 to GH¢27,918,462 in 2011. The rise was due to increases in
Bank Overdraft facilities granted by Stanbic Bank and Barclays Bank
during the year to augment working capital over a period of twelve
months.
1278. Though the current ratio improved in 2011 to 1.5: 1 (2010;
0.9:1) it fell below the bench mark of 2:1. This depicts that the
Company cannot meet its short- term debts as and when they fall due.
MANAGEMENT ISSUES
Additions to Property, Plants and Equipment
1279. We observed that Ghana Revenue Authority (GRA) was not
notified of the additions to Property, Plants and Equipment for the
year ended 31December, 2011 as required by the Internal Revenue
(Amended) Act, 2002 (Act 622 s.19(a).
1280. The Company would be paying a Corporate Tax of
GH¢285,465.18 (25% of GH¢1,141,860.73) which it would have
avoided. The Table below shows details:
Class of Assets Pool/ Rate (a) Cost of
Assets
GH¢ (b)
Capital
Allowance
(a & b)
Land & Building Pool 5 (10%) 743,213.30 74,321.33
Furniture &Fittings Pool 4 (20%) 9,030.00 1,806.00
Plant & Machinery Pool 2 (30%) 4,221,787.74 844,357.54
Motor Vehicles Pool6 305,250.88 91,575.26
Intangible assets
(software)
389,401.80 129,800.60
Total 5,668,683.72 1,141.860.73
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 263 Other Statutory Institutions for the period ended 31 December
1281. Failure to notify GRA of additions to Property, Plants and
Equipment within one (1) month after it has been put into use will
amount to denial of Capital Allowance (CA) in the year of additions.
1282. We recommended that the Financial Accountant takes up the
responsibility of informing the GRA of additions as he maintains the
Assets Register.
1283. Management indicated that it would file the returns
accordingly.
GHANA MARITIME AUTHORITY
Introduction
1284. This report relates to the audited accounts of the Ghana
Maritime Authority for the year ended 31 December, 2011.
Operational results
1285. The operational results for the year ended 31 December, 2011
are sumarised in Table 122.
Table 122: Income Statement for 2011
2011
GH¢
2010
GH¢
%
Change
Income 10,841,833 9,594,516 13.0
Expenditure
General & Admin. Expns 10,228,671 8,917,852 14.7
Director Emoluments 335,719 288,705 16.3
Audit Fees 36,000 25,000 44.0
Depreciation 182,919 229,833 (20.4)
Total Expenditure 10,783,309 9,461,390 14.0
Surplus/(Deficit) 58,524 133,126 (56.0)
1286. Total income of the Authority increased from GH¢9,594,516
in 2010 to GH¢10,841,833 in the year under review. The rise of
13.0% was as a result of increase in the collection of service charge
during the year by Ghana Shippers Council.
264 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1287. Total Expenditure also registered an increase of 14.0% from
GH¢9,461,390 in the previous year to GH¢10,783,309 in the current
year. A rise in General & Administrative expenses and an increment
in staff salaries and Board allowances by 10% during the year
accounted for the increase in total expenditure.
1288. The operations of the Authority ended with a 56.0% fall in
surplus from GH¢133,126 in 2010 to GH¢58,528 in 2011.
Financial position
1289. A summary of the Authority’s financial position is presented
in Table123.
Table 123: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 585,333 729,249 (19.7)
Investment 213,999 394,367 (45.7)
799,332 1,123,616 (28.9)
Current Assets 4,333,310 3,845,026 12.7
Current Liabilities 278,880 173,404 60.8
Net Current Assets 4,054,430 3,671,622 10.4
Current Ratio 15.5:1 22.2:1
Total Assets 4,853,762 4,795,238 1.2
1290. Non-Current Assets fell by 19.7% to GH¢585,333 in 2011
(2010: GH¢729,249). This was due to a write off on three of the
Authority’s motor vehicles which have been unserviceable for the past
two years and were awaiting disposal.
1291. Investment also fell from GH¢394,367 in the previous year to
GH¢213,999 in the Current year. The fall was as a result of
disinvestment of funds to meet operational needs of the Authority.
1292. Current Assets however experienced an increase of 12.7%,
from GH¢3,845,026 in 2010 to GH¢4,333,310 in the year under
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 265 Other Statutory Institutions for the period ended 31 December
review. A rise in Debtors, Cash and Bank balances caused the upward
movement in amount.
1293. Current Liabilities increased significantly by 60.8% to
GH¢278,880 in 2011 (2010: GH¢173,404). The increase was as a
result of a rise in Sundry Creditors, Electricity and Water,
Accountancy fees as well as SSNIT Contribution and audit fees
payable.
1294. The Authority recorded a current ratio of 15.5:1 in 2011 as
against 22.2:1 for 2010 and this continued to show a healthy liquidity
position.
MINISTRY OF FOOD AND AGRICULTURE
SMALL FARMS IRRIGATION PROJECT
Introduction
1295. This report relates to the audited accounts of Small Farms
Irrigation Project for the year ended 31 December 2009.
Operational Results
1296. Total funds received during 2009 were US$869,129. This was
made up of direct transfer from the Arab Bank for Economic
Development in Africa (BADEA). Table 124 shows total transactions
for the year and the cumulative position to date.
Table 124: Statement of financing and expenditure for 2009
Resources Total
Transaction
For the year
US$
Cumulative
to date
US$
Direct Transfer from
BADEA
868,129 5,764,620
Counterpart Funding (GOG) - 1,794,166
Internally Generated Fund - 4,863
Total Resources 868,129 7,563,649
266 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Expenditure
Contractors Fee 384,146 -
Farmers Support Services 437,113 -
Project Implementation Unit 13,432 -
Bank Transfer 480 -
Consult Fees 32,958 -
Civil Works - 5,141,380
Consultant/Technical
Services
- 868,899
Vehicles - 572,011
Equipment - 180,478
Furniture/Fixtures/Fittings - 5,640
Adm. & Operational
Expenses
- 814,420
Total 868,129 7,582,828
Balance - (19,179)
1297. Total Expenditure for the year 2009 amounted to US$868,129.
Prominent among the expenditure were cost of contractors fee which
represented 44.3% of total expenditure and cost of Farmers Support
Services which represented 50.4%.
Financial Position
1298. Presented in Table 125 is the Project’s financial position as at
31 December 2009.
Table125: Balance sheet as at 31 December 2009
Assets 2009
US$
2008
US$
%
Change
Project Expenditure 7,582,828 6,696,514 13.2
Current Assets 201 36,964 (99.2)
Current Liabilities 19,380 37,958 (48.9)
Net Current Liabilities (19,179) (994) 1,829.5
Net Assets 7,563,649 6,695,520 13.0
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 267 Other Statutory Institutions for the period ended 31 December
1299. Fixed Assets mainly made up of Project Expenditure at the
close of 2009 amounted to US$7,582,828 as against US$6,696,514
recorded in 2008 representing a 13.2% increase. This was due to
additions within the year.
1300. Current Assets decreased by 99.5% from US$36,964 in 2008 to
US$201 in 2009.
1301. Current Liabilities also decreased by 48.9% from US$37,958 in
2008 to US$19,380 in 2009.
MANAGEMENT ISSUES
Land Agreement
1302. We noted during our audit that land agreement had been signed
and sealed for all the various small farm irrigation schemes with the
exception of Doedorkope and Akurobi irrigation schemes.
1303. Without the completion of all legal requirements there could be
litigation on the lands in question which may affect the proper running
of the schemes.
1304. We advised management to speed up the process of having the
land agreement signed and sealed by all interested parties to avoid any
event that would adversely affect the projects.
Fixed Assets
1305. We observed that the fixed assets of the project were being
used by both Ghana Irrigation Development Authority (GIDA) and
Small Farm Irrigation Project (SFIP) but movements of the assets are
not well monitored, for instance a survey equipment belonging to
SFIP but used by GIDA was sent for repairs without the knowledge of
the management of SFIP.
1306. We also observed that some assets of SFIP had been embossed
by GIDA while others have not been embossed at all. Most of the
assets were not recorded in the assets register because they were not
268 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
covered with documents. We observed that six motor bikes financed
by BADEA in 2007 were still in stock at the time of the audit in
August 2011. The bikes were very rusty at the time.
1307. This situation can lead to assets being stolen. It would be
difficult to claim ownership of assets which have been embossed by
GIDA. It would encourage staff to mishandle and use the fixed assets
privately. The motor bikes might break down completely if it is not
maintained and put to use.
1308. We recommended that fixed asset register should be updated
by providing all the required information. Any asset not embossed
should be marked with an appropriate identification number. The
purchase and movement of asset should be recorded and monitored at
the store. The motorbikes should be maintained and distributed
immediately to the various schemes to enhance work.
Dordoekope
1309. We observed that the tractor for this scheme had not been
embossed with the Project identification mark. Although it is being
used commercially and had made a net revenue of GH¢2,845.00 as at
the time of our visit, we noted that no record was kept on monies
collected by way of receipts issued as well as invoices and receipts on
expenses incurred.
1310. There is the tendency for the tractor to be used for purposes
other than the required intent.
1311. We recommended that the Project Implementation Unit (PIU)
must ensure that proper records are kept on funds generated from the
commercial use of all assets on site. All fixed assets must be
embossed with the project identification mark.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 269 Other Statutory Institutions for the period ended 31 December
MINISTRY OF ENVIRONMENT, SCIENCE AND
TECHNOLOGY
SOIL RESEARCH INSTITUTE (CSIR)
Introduction
1312. This report relates to the audited accounts of the Soil Research
Institute for the period 1 January 2009 to 31 December 2010.
Operational Results
1313. Operations for 2010 ended with an excess expenditure over
income of GH¢152,534 as against a deficit of GH¢59,440 in 2009.
This represented an increase of 156.6% over the previous year figure.
Table 126 is a summary of the Institute’s comparative performance
indicators for 2010 and 2009.
Table 126: Income statement for 2010
Income
2010
GH¢
2009
GH¢
%
Change
Government Subvention 4,172,082 3,294,508 26.6
Internally Generated Fund 149,412 154,923 (3.6)
Total Income 4,321,494 3,449,431 25.3
Expenditure
Employment Costs 3,883,582 2,996,521 29.6
Repairs & Maintenance 49,596 54,925 (9.7)
Financial Charges 1,839 3,402 (45.9)
Travelling & Transport 132,400 89,756 45.9
Administrative & General
Expenses
406,611 364,267 11.6
Total Expenditure 4,474,028 3,508,871 27.5
Surplus/(Deficit) ( 152,534) (59,440) 156.6
1314. Total Income for the period increased by 25.3% from
GH¢3,449,431 in 2009 to GH¢4,321,494 in 2010. This was due to an
increase in subvention from the Ghana Government by 26.6%.
Internally Generated Fund on the other hand fell by 3.6% due to
reductions in sale of maps, produce and laboratory analysis revenue.
270 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1315. Total Expenditure also recorded an increase of 27.5% from
GH¢3,508,871 in 2009 to GH¢4,474,028 in 2010. Employment Cost
and Travelling and Transport expenses mainly accounted for the rise.
Survivor’s pension and gratuity and upward review of allowances
accounted for the increase in Employment cost. Vehicle running
expenses and Travelling Costs were the major items that contributed
to the increase in Travelling and Transport Expenses.
Financial Position
1316. Presented in Table 127 is the financial position of Institute as at
31 December 2010.
Table127: Balance sheet as at 31 December 2010
Item
2010
GH¢
2009
GH¢
%
Change
Non-current Assets 334,138 364,017 (8.2)
Current Assets 283,938 240,780 17.9
Current Liabilities 345,732 179,919 92.2
Net Current Assets (61,794) 60,861 (201.5)
Net Assets 272,344 424,878 (35.9)
Current Ratio 0.8:1 1.3:1
1317. Non-current Assets of the Institute declined from GH¢364,017
in 2009 to GH¢334,138 in 2010, a decrease of 8.2% as a result of
depreciation charges.
1318. Current Assets, however, increased by 17.9% from
GH¢240,780 in 2009 to GH¢283,938 in 2010. This was mainly due
to increases in Cash and Bank balances.
1319. Current Liabilities increased significantly by 92.2% from
GH¢179,919 in 2009 to GH¢345,732 in 2010. Increases in Creditors,
Accruals and other Credit Balances accounted for the rise. Prominent
amongst the credit balances are superannuation fund, PAYE, SSNIT
and external audit fees.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 271 Other Statutory Institutions for the period ended 31 December
1320. The liquidity position of the Institute stood at 0.8:1 in 2010 as
compared to 1.3:1 in 2009. This indicates its inability to meet its
short term obligations as and when they fall due.
MANAGEMENT ISSUES
Insurance of office building
1321. We observed that the Institute’s office building had not been
insured. We indicated to management that in case of any eventuality,
especially a fire outbreak, the Institute would incur a huge loss
without any compensation. We therefore advised that the office
buildings should be insured without delay.
SCIENCE AND TECHNOLOGY POLICY
RESEARCH INSTITUTE (CSIR)
Introduction
1322. This report relates to the audited accounts of the Science and
Technology Policy Research Institute (CSIR) for the financial years
ended 31 December 2010 and 2011.
Operational Results
1323. Operations of the Institute for the year under review closed
with a deficit of GH¢71,863 as compared with a deficit of GH¢70,492
recorded in 2010, showing a marginal increase of 1.9% in deficit.
Presented in Table 128 are the comparative performance indicators for
the period reviewed.
Table 128: Income Statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Government Subvention 681,884 625,867 9.0
Other Income 505,874 654,173 (22.7)
Total Income 1,187,758 1,280,030 (7.2)
Expenditure
Personnel Emoluments 678,951 535,731 26.7
Administration Expenses 181,412 164,570 10.2
272 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Service Expenses 348,584 603,835 (42.3)
Depreciation 46,858 43,333 8.1
Audit Fees 3,816 3,053 25.0
Total Expenditure 1,259,621 1,350,522 (6.7)
Surplus/(Deficit) (71,863) (70,492) 1.9
1324. Although Government Subvention released to the Institute
increased marginally by 9.0% from GH¢625,867 in 2010 to
GH¢681,884 in 2011, Other Income, made up of project income,
auditorium hiring, exchange gain, interest received or investment,
dropped by 22.7% from GH¢654,173 in 2010 to GH¢505,874 in 2011,
resulting in a decrease of 7.2% in total income to GH¢1,187,758
(2010: GH¢1,280,030). The decline in Other Income was because
there was a total fall in project income from GH¢600,194 or 31.5% in
2010 to GH¢411,153.
1325. Total Expenditure also decreased marginally by 6.7% from
GH¢1,350,522 in 2010 to GH¢1,259,621 in 2011. Personnel
Emolument increased by 26.7% from GH¢535,731 in 2010 to
GH¢678,951 in 2011, whilst Service Expenses dropped to
GH¢348,584 in 2011 from GH¢603,835 in 2010, representing a fall of
42.3%. Administration Expenses however went up by 10.2%.
Financial Position
1326. Shown in Table 129 is the Institute’s financial position as at 31
December 2011.
Table 129: Balance Sheet as 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current Assets 144,716 173,380 (16.5)
Current Assets 455,501 254,714 78.8
Current Liabilities 461,386 208,770 121.0
Net Current Assets (5,885) 45,941 (112.8)
Current Ratio 1.0:1 1.2:1
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 273 Other Statutory Institutions for the period ended 31 December
1327. The Non-current Assets of the Institute declined from
GH¢173,380 in 2010 to GH¢144,716 in 2011, representing a fall of
16.5%. The decrease was due to depreciation charged for the year.
1328. Current Assets on the other hand increased by 78.8% from
GH¢254,714 in 2010 to GH¢455,501 in 2011. The increase was due
to rise in Cash and Bank balances during the year.
1329. Current Liabilities also registered an increase of 121.0% from
GH¢208,770 in 2010 to GH¢461,386 in 2011. This was due to a rise
of GH¢253,157 or 125.7% in sundry creditors.
1330. The Institute’s liquidity position of 1.0:1 (2010:1.2:1) shows its
inability to pay its short term debts when they are due.
ENVIRONMENTAL PROTECTION AGENCY
Introduction
1331. This report relates to the audited accounts of the
Environmental Protection Agency for the year ended 31 December
2011.
Operational results
1332. Total income for the year under review increased by 20.4% to
GH¢10,711,862 from an amount of GH¢8,895,300 in the previous
year. Internally Generated Fund (IGF) and other income which
increased by 125.3% and 146.1% respectively accounted for the rise.
Prominent amongst the contributors in the IGF were receipts of EIA
permits fines whist increase in income from incentive package largely
accounted for the rise in other income.
1333. The performance indicators of the Agency for the review
period are shown in Table 130.
274 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table130: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Govt. Subvention 2.836,151 3,113,214 (8.9)
Grants 2,736,225 2,845,029 (3.8)
Internally Generated Fund 4,439,181 1,970,503 125.3
SBS – NREG Fund 427,395 855,657 (50.1)
Other Income 272,910 110,897 146.1
Total Income 10,711,862 8,895,300 20.4
Expenditure
Personnel Emoluments 3,089,474 3,085,112 0.1
Service Activities 2,919,794 2,102,351 38.9
General & Admin. Exp. 3,630,546 3,521,475 3.1
Financial & Professional
Chargers
44,200 37,624 17.5
Total Expenditure 9,684,014 8,746,562 10.7
Surplus/(Deficit) 1,027,848 148,738 591.0
1334. Total Expenditure for 2011, however increased by 10.7% from
GH¢8,746,562 in 2010 to GH¢9,684,014 in the current year. Service
activities shot up by 38.9% largely due to increases in the expenses on
Staff Training and Development, Vodafone Project, Monitoring and
Investigation, Advertisement, Travelling and Transport and Vehicle
Running. Financial and Professional charges also rose by 17.5% due
to a 34% rise in Audit Fees and expenses.
1335. The improvement in surplus registered by 591.0% at the end of
2011 was as a result of increase in internally generated fund and other
income.
Financial position
1336. Details of the Agency’s financial position as at 31 December
2011 are shown in Table131.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 275 Other Statutory Institutions for the period ended 31 December
Table131: Balance Sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 6,276,124 7,742,304 (18.9)
WIP 5,377,378 3,847,868 39.7
11,653,502 11,590,172 0.5
Current Assets 1,232,220 1,299,050 (5.1)
Current Liabilities 329,708 30,006 998.8
Net Current Assets 902,512 1,269,044 (28.9)
Net Assets 12,556,014 12,859,216 (2.4)
Current Ratio 3.7:1 43.3:1
1337. Non-Current Assets which stood at GH¢7,742,304 in 2010
decreased to GH¢6,276,124 in 2011, recording a fall of 18.9%. The
fall was due to depreciation charge for the year.
1338. Work-in-progress on the other hand registered a rise of 39.7%
from GH¢3,847,868 in the previous year to GH¢5,377,378 in the
current year. This was attributed to construction of EPA hostel and
extension of Regional offices.
1339. Current Assets recorded a decrease of 5.1% to GH¢1,232,220
in 2011 from a previous year’s amount of GH¢1,299,050. A
reduction in Bank and Cash Balances resulted in the fall.
1340. There was a significant increase in current liabilities of 998.8%
from GH¢30,006 in 2010 to GH¢329,708 in 2011. The sharp increase
in Accounts payable and accruals was occasioned by the introduction
of SEA workshops and seminars and National Environmental Fund
which were not in the previous year’s balance.
1341. Though the Agency’s current ratio fell over the period from
43.3: 1 in 2010 to 3.7:1, it still puts the Agency in a position to meet
its short-term obligations when they fall due.
276 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
INSTITUTE OF INDUSTRIAL RESEARCH (I.I.R)
(COUNCIL FOR SCIENTIFIC AND INDUSTRIAL
RESEARCH)
Introduction
1342. This report relates to the audited accounts of the Institute of
Industrial Research for the year ended 31 December 2011.
Operational results
1343. Operations for the year under review ended with a deficit of
GH¢56,426 as against a surplus of GH¢281,410 in 2010. A summary
of the Institute’s performance for the year under review is shown in
Table132.
Table 132: Income statement for 2011
Income1 2011
GH¢
2010
GH¢
%
Change
Subvention from Govt. of
Ghana
2,548,687 2,481,700 2.7
Internally Generated Funds 314,623 65,722 378.7
Total Income 2,863,310 2,547,422 12.4
Expenditure
Personnel Emoluments 2,345,821 1,804,860 30
Repairs & Maint. Expense 48,728 16,396 197.2
Financial Charges 60 144 (58.3)
Travelling & Transport 36,747 27,042 35.9
Administrative & General
Expenses
488,380 417,570 17
Total Expenditure 2,919,736 2,266,012 28.8
Surplus/(Deficit) (56,426) 281,410 (120.1)
1344. Total Income increased by 12.4% from GH¢2,547,422 in 2010
to GH¢2,863,310 in 2011. This was mainly due to a 378.7% increase
in Internally Generated Funds. Income from Material and
Manufacturing Programme, Environmental Management Programme
and Sundry Income largely accounted for the increase in IGF.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 277 Other Statutory Institutions for the period ended 31 December
1345. Total Expenditure also rose by 28.8% from GH¢2,266,012 in
2010 to GH¢2,919,736 in 2011. This was as a result of increases in
Personnel Emoluments, Repairs & Maintenance, Travelling and
Transport and Administrative and General Expenses. Salaries and
Allowances accounted for the increase in Personnel Emoluments
whilst renovation on Laboratory, Office and Workshop buildings
contributed to the rise in Repairs and Maintenance Expenses.
Financial Position
1346. The financial position of the Institute is shown in Table 133.
Table133: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 295,033 347,013 (15)
Current Assets 977,735 625,781 56.2
Current Liabilities 783,271 426,871 83.5
Net Current Assets 194,464 198,910 (2.2)
Net Assets 489,497 545,923 (10.3)
Current Ratio 1.2:1 1.5:1
1347. Non-current Assets decreased from GH¢347,013 in 2010 to
GH¢295,033 in 2011, registering a reduction of 15%. This was as a
result of depreciation charged for the year.
1348. Current Assets however increased by 56.2% from
GH¢625,781 in 2010 to GH¢977,735 in 2011. The increase was
mainly due to increases in accounts receivable and cash and bank
balances.
1349. Current Liabilities also went up from GH¢426,871 in 2010 to
GH¢783,271 in 2011 a rise of 83.5%, as a result of an increase in
Accounts Payable and a Deposit held in EDIF fund at the year end.
1350. The Institute’s liquidity ratio of 1.2:1 (2010:1.5:1) shows that
the Institute might not be able to settle its short term obligations as
and when they fall due.
278 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
ENVIRONMENTAL PROTECTION AGENCY
NATIONAL ENVIRONMENT FUND (NEP)
Introduction
1351. This report relates to the audited accounts of the Environmental
Protection Agency (NEP) for the year ended 31 December 2011.
Operational results
1352. Total income which was made up of Income from Levies and
other income increased by 73.8% from GH¢6,265,247 in 2010 to
GH¢10,886,527 in 2011. The rise was mainly due to the approval of
increases in fees and charges by Parliament under the fees and charges
(amendment) Instrument, 2011 (LI.1986). EIA/Exploration Permit
which rose from GH¢3,968,262 in the previous year to GH¢8,553,653
in the year under review accounted mainly for the sharp increase.
1353. The operational results for the year ended 31 December 2011
are provided in Table 134.
Table 134: Income statement for 2011 Income 2011
GH¢
2010
GH¢
%
Change
Income from Levies 10,335,188 5,579,645 85.2
Other Income 551,339 685,602 (19.6)
Total Income 10,886,527 6,265,247 73.8
Expenditure
Monitoring and Investigation 649,850 218,660 197.2
Environmental Education 378,036 209,465 80.5
Human Resource
Development
327,532 50,852 544.1
Processing & Management
Fees
41,018,722 1,904,585 111.0
Administrative & Other
Expenses
799,030 161,640 394.3
Total Expenditure 6,173,170 2,545,202 142.5
Surplus (Deficit) 4,713,357 3,720,045 26.7
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 279 Other Statutory Institutions for the period ended 31 December
1354. Total expenditure increased largely by 142.5% from
GH¢2,545,202 in 2010 to GH¢6,173,170 in 2011. The increase was
due to general rise in all expenditure items.
1355. The fund registered a surplus of GH¢4,713,357 in the current
year as against GH¢3,720,045 in 2010; recording an increase of
26.7%.
Financial position
1356. Presented in Table 135 is the sumarised balance sheet as at 31
December 2011.
Table 135: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 814,716 535,753 52.1
Current Assets 13,632,602 8,321,624 63.8
Current Liabilities 913,305 36,722 2,387.1
Net Current Assets 12,719,297 8,284,902 53.5
Net Assets 13,534,013 8,820,655 53.4
Current Ratio 14.9:1 226.6:1
1357. Non-Current Assets rose by 52.1% from GH¢535,753 in 2010
to GH¢814,716 in 2011. This was due to additions to capital grant
during the year.
1358. Current Assets also increased by 63.8% to GH¢13,632,602
from an amount of GH¢8,321,624 in the previous year. Additions to
investments accounted for the rise.
1359. Current liabilities recorded a sharp rise of 2,387.1% from
GH¢36,722 in 2010 to GH¢913,305 in the year under review. The
high increase was as a result of a rise in accounts payable, accrued
charges and Bank overdraft.
280 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1360. The liquidity position of the fund as measured by a current
ratio of 14.9:1 (2010:226.6:1) remained above the benchmark of 2:1,
meaning it is in a favourable position to meet its short term
obligations when they fall due.
MANAGEMENT ISSUES
Debtors – GH¢2,350
1361. We observed that the following balances were outstanding at
the year end and no demands had been made on the customers to settle
their indebtedness:
Year GH¢
Biotech Centre 2008 100
Zoomlion 2009 1,000
CRSP Peanut Project 2010 1,250
2,350
1362. Consequently, working capital had been locked up.
1363. We recommended that these debtors should be contacted to
settle their indebtedness.
FORESTRY RESEARCH INSTITUTE OF GHANA
Introduction
1364. This report relates to the audited accounts of Forestry Research
Institute of Ghana for the year ended 31 December 2011.
Operational Results
1365. The Institute’s activities ended the year with a deficit of
GH¢87,073 compared with a 2010 surplus of GH¢344,349
representing a 125.3% decline. The details of the Institute’s
performance are provided in Table 136.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 281 Other Statutory Institutions for the period ended 31 December
Table 136: Income statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Government
Grant/Subvention
4,352,379 3,773,076 15.4
Other Income 429,425 341,521 25.7
4,781,804 4,114597 16.2
EXPENDITURE
Personnel Emoluments 4,164,078 3,214,108 29.6
General and Admin.
Expenses
368,809 316,515 16.5
Repairs & Maintenance 142,148 103,353 37.5
Travelling & Transport 148,486 100,794 47.3
Research & Service Activity
Exp.
45,356 35,478 27.8
4,868,877 3,770,248 29.1
Surplus/(Deficit) (87,073) 344,349 (125.3)
1366. Total Income for the year under review was GH¢4,781,804
compared with the 2010 figure of GH¢4,114,597 thereby registering a
16.2% increase over the previous year’s figure. Government
Grant/Subvention which rose by 15.4% was made up of receipts for
Recurrent Grant and Service Activity Grant. The Other Income which
went up by 25.7% was income from Selling Activities, Services and
Other activities.
1367. Total Expenditure also increased by 29.1% from
GH¢3,770,248 in 2010 to GH¢4,868,877 in 2011. The rise was due to
increases in Personnel Emoluments, General and Administrative
Expenses, Repairs and Maintenance and Travelling and Transport.
The 29.6% rise in Personnel Emoluments was mainly due to increases
in staff salaries and payments of various allowances to staff. A 47.3%
rise in Travelling and Transport cost was due to increases in vehicle
running expenses and right subsistence allowance paid. Vehicle
repairs and maintenance of GH¢71,226 (2010: GH¢29,315) accounted
for 37.5% rise in Repairs and Maintenance cost.
282 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial Position
1368. Summarised in Table 137 is the financial position as at 31
December 2011.
Table 137: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 564,892 502,734 12.4
Current Assets 1,769,784 1,202,677 47.2
Current Liabilities 958,453 242,115 295.9
Net Assets 1,376,223 1,463,296 (6.0)
Current ratio 1.8:1 5.0:1
1369. The Non-Current Assets which stood at GH¢564,892
registering an increase of 12.4% over the 2010 figure of GH¢502,734
was as a result of Deferred assets of GH¢64,865. This Deferred Asset
was contributions made for the establishment of Tropenbos Research
Project.
1370. Current Assets rose by 47.2% from GH¢1,202,677 in 2010 to
GH¢1,769,784 in 2011. A significant increase of 64.1% in Accounts
Receivable accounted for the rise.
1371. Current Liabilities also increased significantly by 295.9% from
GH¢242,115 in 2010 to GH¢958,453 in 2011. This was as a result of
deductions from salaries yet to be paid to various Sectors such as
Research Unit and State Institutions and others.
1372. The liquidity as shown by the current ratio dropped
significantly from 5.0:1 in 2010 to 1.8:1 in 2011, indicating that, the
Institute would not be able to meet its short-term obligations when
they fall due.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 283 Other Statutory Institutions for the period ended 31 December
MANAGEMENT ISSUES
Fixed Assets Register
1373. We observed that, the Institute did not have a comprehensive
register for its fixed assets to indicate their locations, cost, useful life
and net book value. Some assets were without identification marks.
There was also no clear evidence of periodic verification of fixed
assets to confirm their existence.
1374. We noted that the assets could therefore be subjected to
unauthorized use or disposal, pilfering and theft without being
noticed.
1375. We recommended that management should take appropriate
steps to ensure that the fixed assets register is updated with relevant
information. It should be the policy of the Institute to conduct
physical verification of fixed assets to confirm their location,
existence and condition.
ANIMAL RESEARCH INSTITUTE
Introduction
1376. The report covers the audited accounts of the Animal Research
Institute of Council for Scientific and Industrial Research for the year
ended 31 December 2011.
Operational Results
1377. The Institute realized a Total Income of GH¢4,475,448 in
2011, representing an increase of GH¢1,375,255 or 44.4% over the
2010 figure of GH¢3,100,193. The sharp rise in Income was mainly
due to a 50.5% increase in Government Grants for the year, its major
component; whilst Other Income, the minor component went down by
25.7%. The decrease in other income was as a result of a fall in
Livestock Valuation from GH¢215,395 in 2010 to GH¢87,861 in
2011. The performance indicators are shown in Table 138.
284 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 138: Income Statement for 2011
Income
2011
GH¢
2010
GH¢
%
Change
Grants 4,290,166 2,850,662 50.5
Other Income 185,282 249,531 (25.7)
Total Income 4,475,448 3,100,193 44.4
Expenditure
Estab. & Admin. Expenses 275,869 229,055 20.4
Employment Cost 3,813,398 2,948,634 29.3
Repairs and Maintenance 56,738 26,924 110.7
Travel and Transport 119,651 87,085 37.4
Principal and Prof. Charges 6,195 8,658 (28.4)
Depreciation Charges 48,555 43,604 11.4
Total Expenditure 4,320,405 3,343,960 29.2
Surplus/(Deficit) 155,042 (243,767) (163.6)
1378. Total Expenditure also went up by 29.2% from GH¢3,343,960
in 2010 to GH¢4,320,405 in 2011. The rise was largely due to
increases in Establishment and Administrative Expenses, Employment
Cost, Repairs and Maintenance; and Travel and Transport cost. A
29.3% rise in Employment Cost was mainly due to increases in staff
salaries and allowances. Increases in repairs and maintenance of office
equipment, motor vehicle, office buildings and laboratory furniture
and fittings accounted for 110.7% rise in Repairs and Maintenance
cost. A 37.4% rise in Travel and Transport cost was due to high cost
of running the Institute vehicles and increase vehicle insurance
premium.
1379. However, the Institute’s operational activities for 2011 ended
with a surplus of GH¢155,042 as against a deficit of GH¢243,767 in
2010, a decrease in deficit of 163.6%.
Financial Position
1380. Provided in Table 139 is the sumarised balance sheet as at 31
December 2011.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 285 Other Statutory Institutions for the period ended 31 December
Table 139: Balance sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current Assets 218,170 220,350 (1.0)
Current Assets 1,817,143 1,251,341 45.2
Current Liabilities 1,650,624 1,198,519 37.7
Current ratio 1.1:1 1.0:1
1381. The Non-current Assets dropped marginally by 1.0% from
GH¢220,350 in 2010 to GH¢218,170 in 2011. The decrease was due
to depreciation charged for the period.
1382. Current Assets, however, increased by 45.2% from an amount
of GH¢1,251,341 in 2010 to GH¢1,817,143 in 2011. The upward
movement in Accounts Receivable from GH¢385,558 in 2010 to
GH¢935,004 in 2011 resulted in the increase.
1383. Current Liabilities also registered a rise of 37.7% from
GH¢1,198,519 in 2010 to GH¢1,650,624 in 2011. An increase in
sundry creditors accounted for the rise.
1384. The Institute’s liquidity position did not change over the period
as indicated by the current ratio of 1.1:1 for 2011 (2010: 1.0:1),
indicating that the Institute cannot meet its short term obligations
when they fall due.
MANAGEMENT ISSUES
In appropriate treatment of Biological Assets
1385. We uncovered during our examination of clients’ accounts that
biological assets, i.e. livestock are included in other poultry products
and general stores as stocks.
1386. The International Accounting Standards (IAS 41) provides that
Biological Assets in so far as they relate to agricultural activity should
be disclosed separately on the face of the account.
286 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1387. The treatment contravenes the requirements of International
Accounting Standards and also the given account fall short of showing
a true and fair view.
1388. We therefore recommended that, all biological assets, should
subsequently be disclosed separately on the face of the account and
the requirements of International Accounting Standards be complied
with.
CROPS RESEARCH INSTITUTE
Introduction
1389. This report relates to the audited accounts of the Council for
Scientific and Industrial Research’s (CSIR) Crops Research Institute
for the year ended 31 December 2011.
Operational Results
1390. Total Income for the period under review registered a growth
of 30.3% from GH¢4,324,801 in 2010 to GH¢5,637,166 in 2011.
Recurrent Grant of GH¢5,429,675 and Other Income of GH¢207,491
constituted the total income for the year. Whilst Recurrent Grant
recorded a growth of 32.9% over the previous year figure, the Other
Income registered a drop of 13.4% over the previous figure.
1391. The operational results are shown in Table 140.
Table 140: Performance indicators for 2011 and 2010
Income
2011
GH¢
2010
GH¢
%
Change
Recurrent Grant 5,429,675 4,085,154 32.9
Other Income 207,491 239,647 (13.4)
Total Income 5,637,166 4,324,801 30.3
Expenditure
Establishment & Admin.
Expenses
333,322 243,739 36.8
Employment Cost 4,620,004 3,582,242 30.0
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 287 Other Statutory Institutions for the period ended 31 December
Travelling and Transport 192,165 215,257 (10.7)
Repairs and Maintenance 124,484 127,240 (2.2)
Financial and Professional
Charges
37,366 11,307 230.5
Research Expenditure 95,907 41,388 131.7
Total Expenditure 5,403,248 4,221,173 28.0
Surplus/(Deficit) 233,918 103,628 125.7
1392. Total Expenditure increased by 28.0% from GH¢4,221,173 in
2010 to GH¢5,403,248 in 2011. This was largely due to growth in
Establishment and Administrative Expenses, Employment Cost,
Financial and Professional Charges and Research Expenditure. The
36.8% rise in Establishment and Administrative Expenses was due to
high cost of electricity bill from GH¢82,632 in 2010 to GH¢116,028
in 2011.
1393. The 30.0% rise in Employment Cost was mainly due to
increases in staff (both Senior and Junior) salaries and their
allowances such as Car maintenance, Commuted Transport, Tools,
Risk and Height allowances.
1394. A 131.7% rise in Research Expenditure was due to open day
expenses incurred only in 2011 financial year.
1395. Excess of income over expenditure disclosed a significant
increase of 125.7% from GH¢103,628 in 2010 to GH¢233,918 in
2011. This amount had since been transferred to the Accumulated
Fund Account.
Financial Position
1396. The Balance Sheet as at 31 December 2011 is shown in Table
141.
288 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 141: Balance Sheet as at 31 December 2011
2011
GH¢
2010
GH¢
%
Change
Non-current Assets 231,462 215,024 7.6
Current Assets 2,319,425 1,412,243 64.2
Current Liabilities 925,285 235,583 292.8
Net Current Assets 1,394,140 1,176,660 18.5
Current ratio 2.5:1 6.0:1
1397. Non-current Assets registered an increase of 7.6% from
GH¢215,024 in 2010 to GH¢231,462 in 2011. The increase was due
to additional payment for land and buildings, and furniture, fittings
and equipment during 2011.
1398. Current Assets of the Institute recorded a 64.2% increase from
GH¢1,412,243 in 2010 to GH¢2,319,425 in 2011. Increase in Cash
and Bank balances from GH¢343,050 in 2010 to GH¢1,127,805 in
2011 accounted for the rise.
1399. Current Liabilities also went up significantly by 292.8% from
GH¢235,583 in 2010 to GH¢925,285 in 2011. The rise was due to
increases in other credit balances of accounts during the year.
1400. The current ratio stood at 2.5:1 as against 6.0:1 in 2010.
Although the liquidity position registered a significant drop, the
Institute can meet its short term debts as and when they fall due.
MANAGEMENT ISSUES
Fuel imprest not retired: GH¢345.00
1401. We noted that between May 2011 and December 2011,
management gave a total amount of GH¢4,485.00 to Maxwell T.
Mensah, as fuel imprest for the operation of the Institute’s stand-by
generator.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 289 Other Statutory Institutions for the period ended 31 December
1402. However, there was no evidence to confirm that an imprest of
GH¢345.00 paid on PV No. 0001362 with cheque No. 293096 of
2/9/2011, had been retired by Maxwell T. Mensah. There was also no
evidence by way of fuel receipt to confirm the purchase of fuel.
1403. Our observation also showed that, there was no register or log
book or any other documentary evidence to explain how the amount
of GH¢4,140.00 covered with receipts was utilized.
1404. This might result in fuel not used in furtherance of the
Institute’s programmes.
1405. Management should ensure that proper records are kept to
account for fuel purchased for the stand-by generator. Meanwhile,
management should request Maxwell T. Mensah, Transport Officer
in-charge of the generator to account for GH¢345.00 which was not
retired. He should also produce documentary evidence such as fuel
register or log book, showing how fuel totalling GH¢4,140.00 was
utilized or distributed.
OTHER AGENCIES
NATIONAL PENSIONS REGULATORY AUTHORITY
Introduction
1406. This report relates to the audited accounts of the National
Pensions Regulatory Authority for the year ended 31 December 2011.
Income surplus
1407. The Authority recorded a surplus of GH¢ 199,258.50 in 2011.
However comparative analysis could not be established as the
Authority failed to prepare financial statement from its inception until
in 2011. Table 142 shows details of the performance indicators:
290 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Table 142: Income statement for 2011
Income
2011
GH¢
Subvention 1,099,067.98
Donation 107,510.60
Internally Generated Funds (IGF) 87,450.00
Total Income 1,294,028.58
Expenditure
Administrative Activities 412,716.47
Service Activities 292,213.66
Investment Activities 389,839.95
Total Expenditure 1,094,770.08
Income Surplus 199,258.50
1408. Income for the period reviewed totaled GH¢1,294,028.58.
Government subvention accounted for 84.9% or GH¢1,099,067.98 of
total income in the year under review. The rest comprises Internally
Generated Fund (IGF) of GH¢87,450.00 and Donation of
GH¢107,510.60, representing 6.8% and 8.3% respectively of total
revenue.
1409. Total expenditure for the period under review amounted to
GH¢1,094,770.08. Administrative expenditure came to
GH¢412,716.47 whilst funds released for the expenditure amounted to
GH¢312,608.00 resulting in over spending of the expenditure item by
GH¢100,108.47. Though the Authority’s budget for Personnel
Emolument was not approved, the Authority expended GH¢128,946.5
on Executive salaries and contract staff allowances which was
included in the Administrative expenses.
1410. Funds released to the Authority for Service activities
amounted to GH¢396,620.03 whilst actual expenditure was
GH¢292,213.66, leaving a balance of GH¢104,406.37 on subvention
received for Service activities. Included in the expenditure was an
amount of GH¢ 96,414.40 used without authority in the payment of
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 291 Other Statutory Institutions for the period ended 31 December
contract staff allowances awaiting reimbursement from the MoFEP.
1411. Investment expenditure totaled GH¢389,839.95. An amount of
GH¢300,000.00 out of the Investment receipts was vired without
approval for the payment of rent for office accommodation. The rest
was used for the acquisition of motor bikes and computers. We
recommended that management in its future financial dealings should
comply with FAR 171(2c) which states that “virement between items
of expenditure can only be done with the approval of the Minister.
Financial position
1412. A sumarised balance sheet of the Authority as at 31 December
2011 is provided in Table 143.
Table 143: Balance sheet as at 31 December, 2011
Amount
GH¢
Current Asset 653,724.23
Current Liability 531,983.14
Net Asset 121,741.09
Accumulated Fund 121,741.09
1413. The Authority does not capitalize non-current assets. The
current assets were mainly bank balance of GH¢653,724.23 and an
advance of GH¢177,422.57 being payment in respect of executive
salaries and foreign travels yet to be reimbursed by MoFEP.
1414. Current liability comprised transfer of GH¢531,983.14 from
the Temporary Pension Fund Account (Second Tier) into the
Authority’s operational bank account for payment to fund
administrators.
1415. The liquidity position of the Authority as measured by a
current ratio of 1.2:1 is indicative that the Authority may not be in a
position to meet it short term liabilities as and when they fall due.
292 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
MANAGEMENT ISSUES
Unapproved retention of IGF
1416. Regulation 17(b) of the FAR states that “A head of department
shall ensure that all Non-Tax Revenue is immediately lodged in the
designated Consolidated Fund Transit bank accounts except in the
case of IGF retained under an enactment”.
1417. Our audit revealed that the Authority retained 100% of the IGF
amounting to GH¢87,450.00 realized during the period reviewed
without legislative approval. We also noted that the Authority did not
budget for the IGF before use, leading to non compliance with the
FAR and IGF Retention Act.
1418. The disregard of government regulation undermines controls
put in place, thus hindering effective planning and monitoring.
1419. We urged management to disclose all IGF to be generated in its
subsequent budget in accordance with FAR 159 and also seek
approval before retaining the appropriate portion of the IGF;
otherwise the revenue should be paid into the Consolidated Fund.
Meanwhile, the amount of GH¢87,450.00 realized during the year
under review should be transferred into the Consolidated Fund.
1420. Management responded that it intended to retain 100% and
had started the process with the Non Tax Revenue Division of
MoFEP.
Failure to withhold tax on allowances - GH¢3,382.50
1421. Contrary to Section 84(1) b of the Internal Revenue Act, 2000
(Act 592), the Authority failed to withhold the required 10% tax on
board members and sub-committee member’s sitting allowances.
1422. Consequently, a tax revenue of GH¢3,382.50 accruing to the
state was lost.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 293 Other Statutory Institutions for the period ended 31 December
1423. We urged Management to comply with the relevant provisions
of the tax law in order to contribute to the revenue generation drive of
the state. Meanwhile, management should recover the amount in
default for remittance to the Domestic Tax Division of the GRA,
otherwise the Accountant be surcharged accordingly.
1424. Management agreed with our recommendations and stated that
henceforth, the Authority would ensure adherence to the Act.
Fuel coupons purchased not recorded in Fuel Register-
GH¢36,000.00
1425. Chapter 1604 of Stores Regulations 1984, states that “A
vehicle log book shall always be carried on the vehicle. Journeys
undertaken shall be recorded and full particulars of receipt of fuel, oil
and lubricants shall be entered up daily in the log book by the driver”
1426. On the contrary, our review revealed that purchases of fuel
amounting to GH¢36,000.00 during the year were not properly
accounted for in the Fuel Register and log books as they were not
maintained.
1427. As a result, we could not confirm whether the fuel was bought
and used for official duties. The lapse was due to management’s
failure to effectively supervise the drivers and ensure accountability.
1428. We advised Management to ensure that the schedule officer
enters all fuel purchased in the Fuel Register before issues are made.
We also recommended that management should ensure that vehicle
logbooks are maintained for all vehicles and the drivers made to
record all fuel, oil and lubricant issued whilst officers using the
vehicles certify journeys undertaken.
1429. Management however, explained that purchases were duly
recorded and that the coupon register was stolen on the 12 August,
2012.
294 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1430. We further recommended that the Authority should liaise with
Ghana Police to obtain a formal police report.
NATIONAL DEVELOPMENT PLANNING COMMISSION
Introduction
1431. This report relates to the audited accounts of the National
Development Planning Commission for the year ended 31 December
2011.
Operational results
1432. The Commission realized a total income of GHȼ3,883,129.92
in 2011 as compared to GHȼ2,338,795.88 in 2010 representing an
increase of GHȼ1,544,334.04 or 66.0%. Government Subvention
remained the major source of income which contributed
GHȼ3,721,640.52 representing 95.8% of the total income. This went
up by 80.9% accounting mainly for the rise in total income. Donor
Funds, which represented 4.2% of the total income, however dropped
by 42.6% or GHȼ119,995.68 from GHȼ281,485.08 in 2010 to
GHȼ161,489.40 in 2011. The fall was as a result of the Development
Partners’ completion of the “Ghana Growth and Poverty Reduction
Strategy (GPRS II)” in 2009.
1433. Table 144 shows the comparative income and expenditure for
the period under review.
Table 144: Income statement for 2011
Income 2011
GH¢
2010
GH¢
%
Change
Subventions 3,721,640.52 2,056,910.80 80.9
Development Partner
Support
161,489.40 281,485.08 (42.6)
Other Income - 400.00
Total Income 3,883,129.92 2,338,795.88 66.0
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 295 Other Statutory Institutions for the period ended 31 December
Expenditure
Personnel Emolument 453,210.35 287,691.14 52.2
Administrative Activities 1,870,799.57 764,097.32 144.8
Service Activities 1,245,027.03 825,633.04 50.8
Investment Activities 148,762.73 155,973.13 (4.6)
Development Partners 160,896.36 260,795.26 (38.3)
Total Expenditure 3,878,696.04 2,304,189.89 68.3
Surplus/(Deficit) 4,433.88 34,605.99 (87.2)
1434. Expenditure incurred in 2011 totaled GHȼ3,878,696.04 as
compared to GHȼ2,304,189.89 in 2010 representing an increase of
68.3%. Administration Activity Expenses formed 48.2% of the total
expenditure and this rose by 144.8% from GHȼ764,097.32 in 2010 to
GHȼ1,870,799.57 in 2011. The significant rise was due to increases
in telecommunication, electricity charges, contract printing,
stationery, office consumables, refreshment, vehicle repairs &
maintenance, vehicle running cost, commissioners’ allowance and
office building maintenance. There was also a rise of 50.8% in Service
Activity which was attributed to increases in
workshops/meetings/conference cost, local consultancy fees and
contract printing expenses.
1435. The Commission ended 2011 with a surplus of GHȼ4,433.88 as
compared with GHȼ34,605.99 in 2010, representing a fall of 87.2%.
Financial position
1436. Table 145 shows the Commission’s financial position for the
period.
Table 145: Financial position as at 31 December 2011
Item 2011
GH¢
2010
GH¢
%
Change
Current assets 4,781.99 111,416.80 95.7
Current liabilities - - -
Net current assets 4,781.99 111,416.80 95.7
296 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
1437. The Commission does not capitalize non-current assets. The
current assets of the Commission comprised bank balances which
stood at GHȼ4,781.99 in 2011 as against GHȼ111,416.80 in 2010, a
reduction of 95.7% as a result of a decrease in the Service and
NDPC/Donor account balances.
MANAGEMENT ISSUES
Virement without approval
1438. Section 171 (2c) of the FAR 2004, (L.I 1802) states that
“Virement between items of expenditure can only be done with the
approval of the Minister”.
1439. We observed that requirements for employment into the
Commission debarred management from engaging certain category of
staff though their services were needed. As a result, during the period
reviewed, management retained National Service Personnel as
temporary staff and a total amount of GHȼ53,275.50 being funds for
Service Activities were used without approval in paying them.
1440. The lapse decreased the financial outlay for Service Activities
which negatively affected the achievement of planned programmes.
1441. In view of the Commission’s operations and demands, we
advised management to institute an appropriate Scheme of Service.
We also advised management to consider in the interim the option of
dissociating the retained National Service Personnel from the
Commission and onto the National Youth Employment Programme
(NYEP).
1442. Management accepted our recommendation and stated that the
Commission’s Scheme of Service was being reviewed to enable the
temporary staff to be permanently integrated into the structures.
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and 297 Other Statutory Institutions for the period ended 31 December
INTERNAL AUDIT AGENCY
Introduction
1443. This report relates to the audited accounts of the Internal Audit
Agency for the year ended 31 December 2011.
Operational results
1444. Sumarised in Table 146 is the income and expenditure account
for 2011.
Table 146: Income statement for 2011 Income 2011
GH¢
2010
GH¢
%
Change
GOG Subvention 2,714,757 2,815,471 (3.6)
Other Income 348,068 354,540 (1.8)
Total Income 3,062,825 3,170,011 (3.4)
Expenditure
Personnel Emoluments 1,083,984 1,427,554 (24.1)
Administration 1,186,584 773,955 53.3
Service 341,063 311,414 9.5
Other Expenditure 292,288 358,149 (18.4)
Depreciation 164,475 164,476 -
Total Expenditure 3,068,394 3,035,547 1.1
Surplus/(Deficit) (5,569) 134,464 (104.1)
1445. Total Income for the year under review fell by 3.4% from
GH¢3,170,011 in 2010 to GH¢3,062,825 in 2011. A decrease in
subvention for personnel emoluments for the year, a fall in income
from on-site support training programme and non-availability of
income from World Bank Project resulted in the fall in total income.
1446. Total Expenditure however rose from GH¢3,035,547 in 2010
to GH¢3,068,394 in 2011 registering a marginal rise of 1.1%. The
increase was due to an upward movement in administration and
services expenses during the year.
1447. The Agency made a deficit of GH¢5,569 in 2011 as compared
to the surplus of GH¢134,463 made in the previous year. This was
transferred to the Accumulated Fund account for 2011.
298 Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations, and
Other Statutory Institutions for the period ended 31 December 2012
Financial position
1448. A summary of the Balance Sheet as at 31 December 2011 is
shown in Table 147.
Table147: Balance sheet as at 31 December 2011 2011
GH¢
2010
GH¢
%
Change
Non-Current Assets 241,733 178,814 35.2
Current Assets 700,737 759,677 (7.8)
Current Liabilities 30,959 21,410 44.6
Net Current Assets 669,779 738,266 (9.3)
Net Assets 911,511 917,081 (1.0)
Current Ratio 22.6:1 35.5:1
1449. Non-Current Assets at the end of 2011 was GH¢241,733
(2010: GH¢178,814), an increase of 35.2%. The increase was mainly
due to acquisition of motor vehicles, furniture & fittings, Plant &
Machinery and computers during the year.
1450. Current Assets however fell by 7.8% to GH¢700,737 in the
current year as against GH¢759,677 in 2010. A reduction in stock of
fuel coupons as well as Bank and Cash balances brought about the
decline.
1451. Current liabilities shot up by 44.6% from GH¢21,410 in 2010
to GH¢30,959 in 2011 due to nonpayment of Audit fees for 2010 and
2011 accounts as well as a 19.8% rise in Sundry Creditors.
1452. Net Assets fell marginally by 1% from GH¢917,081 in the
previous year to GH¢911,511 in the current year.
1453. The liquidity position as depicted by a current ratio of 22.6:1
(2010:35.5:1) shows that the Agency would be able to meet its short-
term obligations when they fall due.
Recommended