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REPORT OF THE CONTROLLER AND ACCOUNTANT-GENERAL ON THE PUBLIC

ACCOUNTS ON THE CONSOLIDATED FUND FOR THE YEAR ENDED 31ST DECEMBER,

2013

1 INTRODUCTION

1.1 Mandate

Section 41(1)(b) of the Financial Administration Act, 2003 (Act 654)(FAA) and Regulation

191 of the Financial Administration Regulations, 2004 (LI 1802)(FAR) requires the

Controller and Accountant-General to prepare and transmit to the Auditor-General and the

Minister for Finance (MoF), the Public Accounts (Financial Statements) on the

Consolidated Fund of the Republic of Ghana within a period of three months after the end

of the financial year or such other period as Parliament may by resolution determine.

The financial statement are prepared on Government business which is regulated by the

financial laws. The authorisations to spend and limit on expenditure are stipulated in the

appropriation Act for each financial year as required by Article 179 (2) (a) of the 1992

Constitution.

In addition to the legal requirement, the Financial Statements are meant to provide a

summary of government’s financial resources and their application for the benefit of the

citizenry of Ghana.

1.2 Components of the Financial Statements

The financial statements comprise:

A Statement of Receipts and Payments

A Statement of Revenue and Expenditure

A Balance Sheet

A Cash Flow Statement

Notes to the Accounts.

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1.3 Additional Statements

In line with Regulation 191 (d) of the FAR, a statement of transactions during the year and

an analysis of the position at the end of the year for the following are included in the

financial statements

i. Public Debt

ii. Deposits and other trust monies

iii. Securities of Government

iv. Advances

v. Public loans (Receivables)

vi. Equity Investments of the Consolidated Fund

Additional information comprising Summary Expenditure of MDAs by items and sectors

are annexed to this financial report.

1.4 Scope of the financial statements

In compliance with Section 41(1) (b) of the FAA, these financial statements known as the

Public Accounts of Ghana are prepared on the Consolidated Fund only. It comprises the

financial operations of Ministries, Departments and Agencies (MDAs) funded from the

national budget.

The financial statements do not include other public funds established by or under the

authority of an Act of Parliament and Retained Internally Generated Funds.

1.5 Basis of Accounting

The basis of accounting adopted for the preparation of the 2013 financial

statements progressed from Modified Cash Basis towards the accrual basis under

the International Public Sector Accounting Standards (IPSAS.) which requires the

recognition of fixed assets, payables, etc.

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2 BUDGET FOCUS AND FINANCIAL MANAGEMENT REFORMS

2.1 Budget focus for 2013

The 2013 Budget was based on the Ghana Shared Growth and Development Agenda

(GSGDA: 2010-13). One of the primary objectives of Government in the 2013 budget was to

address the high budget deficit caused by overruns arising mainly from, high public sector

wage bill, petroleum subsidies, shortfall in taxes and donor inflows as well as high public

debt servicing.

Efforts have been made to address these challenges through measures such as the increase

in the VAT rate from 15% to 17.5%, gradual shift to automatic price adjustment mechanism

for petroleum and utility prices and fast tracking payroll reforms to improve efficiency of

the payroll delivery. These measures have yielded varying levels of success.

2.2 Public Financial Management Reforms

Key on-going reforms to improve public financial management include;

Budget Reforms – As part of the budget reforms, the Program Based Budgeting

(PBB) has been introduced to change the focus from Activities to Programmes and

introduce performance information in the budget system. This budgeting approach

directly links the planned expenditures to clearly defined results and improved

service delivery. The PBB is aimed at shifting emphasis from input and outputs to

outcomes, service delivery and results. The PBB will among others;

o Ensure stronger linkage between public spending and determined results

to ensure improved efficiency in the allocation and utilization of

resources.

o Focus more on strategic budget information to promote public discussion

and monitoring of budget execution.

Ghana Integrated Financial Management Information System (GIFMIS) - It is

an integrated computer based financial management system that facilitates budget

preparation, execution, accounting and reporting, and auditing.

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The system will interface with other legacy systems such as the Total Revenue

Integrated Processing System (TRIPS), Ghana Customs Management System

(GCMS) and Bank of Ghana System, the T-24. GIFMIS is expected to improve

expenditure control, forecasting of financial flows and investment planning.

As at the end of 2013, the rollout of the Procure to-Pay (P2P) process has been

extended to cover all 33 Ministries, 10 Regional Treasuries and 7 pilot MMDAs

which now process all transactions financed from the Consolidated Fund through

the GIFMIS. This was complemented with extensive nationwide training and change

management support. The rollout is significantly enhancing expenditure

monitoring and control.

Preparations are advanced to roll out the system for processing Internally

Generated Fund (IGF), Donor Funds, and Statutory Funds in 2014.

Human Resource Management Information Systems (HRMIS).

The government is developing a Human Resource Management Information System

to facilitate effective and efficient management of human resource in the public

sector. The system will be integrated with the payroll system for prudent financial

and human resource management in the light of increasing public sector wage bill.

The functionalities of the system include the following

o Establishment control

o Position management

o Compensation and benefits management

o Recruitment and selection

o Training and development

o Absence and termination management and

o Postings, transfers, and secondment management

The business processes have been developed.

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Treasury Single Account (TSA) – TSA is a unified structure of government bank

accounts enabling consolidation and optimum utilization of government cash

resources. It is a set of linked bank accounts through which the government

recognises all its receipts and payments and obtains a consolidated view of its cash

position at the end of each day. Implementation of the TSA commenced in the 3rd

quarter of 2013 following the signing of the Loans and Fiscal Agency Agreement

with Bank of Ghana (BoG). The agreement defines the financing arrangement with

BoG. In the past BoG charges interest on the overdrawn balance in the treasury

main bank account which is narrow in scope. However, under the Loans and Fiscal

Agency Agreement, interest is charged on the consolidated government bank

balances (TSA balance) resulting in savings on BoG interest charges.

3 SYSTEMS IMPROVEMENT

3.1 Systems and Security Management

The extensive implementation of ICT based systems in the business process of Government

requires measures to ensure high availability, reliability and an improved secured

environment for the facilities and data. Consequently, the following have been

implemented:

Business Continuity Plan to ensure availability and continuity of business processes

in case of a system failure.

Corporate Firewall to prevent hacking into the systems

Improved network systems to enhance the use of the system

Upgrade of the Society of Worldwide Interbank Financial Telecommunication

(SWIFT) and the creation of a SWIFT back-up server to enhance the efficiency of

the funds transfer

In 2014, precision cooling system will be installed at the CAGD data centers to protect

and enhance performance of the ICT equipment.

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3.2 Electronic Funds Transfer (EFT)

The interface between GIFMIS was completed. With the interface the manual system of

processing payments and transfer of funds were automated using the Electronic Funds

Transfer (EFT) system. Funds are transferred electronically from Treasury Main to the Sub

Consolidated Fund Bank Accounts of MDAs/MMDAs and also facilitate electronic funds

transfer to suppliers. When fully implemented the EFT will facilitate automated Bank

Reconciliation.

3.3 PBB implementation

A new budget preparation and management software (Hyperion) has been procured to

facilitate the implementation of the PBB. The design and analysis stage of the development

process of the system is at an advanced stage and is expected to be deployed for the

preparation of budget estimates with effect from 2015.

A critical mass of staff of all MDAs/MMDAs have been trained in PBB to enhance the

capacities for the preparation and implementation of the budget as well as ensure

sustainability of the reforms.

3.4 Payroll Upgrade

The oracle Payroll software which is used to prepare the payroll has been upgraded to the

most current version to improve performance and also pave the way for its integration

with GIFMIS financials. The upgrade which started in 2013 was completed in 2014 and has

new features such as enhanced “retro-pay” (salary arrears computation) which allows for

better management of the payroll. The upgrade together with the GIFMIS integration will

provide opportunity for effective accounting, control of compensation cost by heads of

MDAs/MMDAs and planning and monitoring by policy makers.

3.5 Electronic Payslips (E-Payslip)

The De partment has implemented an Electronic Pay Slips (E-Payslip) system to

enable public servants who are paid through the CAGD Payroll system access the electronic

version of their pay slips using devices with internet connectivity. Payroll related

complaints are logged on-line and real time responses are provided to employees. With the

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implementation of the E-Payslip system, salary information is now readily available to

employees.

3.6 Electronic Salary Payment Voucher (E-SPV)

An E-SPV System has been developed to enable heads of MDAs /MMDAs have online access

to the salary payment vouchers for validation and real time feedback to CAGD. The system

has been deployed at the Korle-bu Teaching Hospital, CAGD headquarters and the Council

for Scientific and Industrial Research. With this system, feedback from heads of

management units are acted upon before the payroll process is completed for the month.

Response time for processing deletion/stoppage of salary and alignment of staff has greatly

improved. Heads of management units will now have better control and ownership of their

payrolls.

As a matter of policy, the validation of the E-salary payment voucher which is a pre-

condition for the payment of salary has resulted in prompt deletion of ineligible staff from

the payroll.

It is expected that the system will be deployed to all MDAs/MMDAs nationwide by the end

of July, 2014.

3.7 Regional Payroll Printing

Three regional payroll sites have been set up to address challenges associated with the

centralized printing of salary payment vouchers. The sites are in Takoradi, Ho, and

Tamales.

The system at the regional print sites is also available to MDAs/MMDAs to effect deletions

of separated staff.

In 2014, six more regional payroll sites will be set up to further decentralize the payroll.

3.8 Review of the Organisational Structure of CAGD

The structure of CAGD has been reorganized to better support on going reforms. Two

additional divisions which are Payroll Management and ICT Management Divisions has

been set up. The creation of a dedicated Payroll Management Division has led to the

improvement in payroll management initiatives such as E-Pay slip, E-SPV and setting up of

regional sites for printing of salary payment vouchers. Also the creation of the ICTM

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Division is to support the extensive implementation of ICT based systems by the

department. The Division has led the development and implementation of ICT policy

document, the production of strategic plan for ICT development, as well as the design and

implementation of Business Continuity Plan.

3.9 Improved Information Dissemination - The department in 2013 reconstructed its

website to facilitate information dissemination to stakeholders. In addition to gazetting the

public accounts on the Consolidated Fund, the department also publishes the accounts on

its websites.

4 HIGHLIGHTS OF 2013 FINANCIAL PERFORMANCE

4.1 2013 Appropriation

The amounts appropriated for Government business and reflected in these Financial

Statements were regulated by the Appropriation Act 2013, Act 856. Payments made were

based on warrants issued on the authority of the Minister for Finance and was within the

Appropriation of GH¢31,845.66 million.

A summary report of the appropriation is as below:

2013

GH¢ Million

Annual Appropriation 31,845.66

Appropriation Utilised (3O,342.70)

Appropriation Un-utilised

1,502.96

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4.2 Summary of Receipts and Payments for the year is as follows:

Table 1: BUDGETED AND ACTUAL RECEIPTS AND PAYMENTS

2013

BUDGET

GH¢M

2013

ACTUAL

GH¢M

2013

VARIANCE

GH¢M

2012

ACTUAL

GH¢M

Receipts 28,975.40 28,408.28 (567.11) 21,472.04

Payments 32,054.02 28,972.45 3,081.98 22,382.85

Net Receipts/ (Payments) (3,078.62) (564.17) 2,514.87 (910.81)

4.3 Summary of Revenue and Expenditure.

The summary of Revenue and Expenditure for the year is as follows:

Table 2: BUDGETED AND ACTUAL REVENUE AND EXPENDITURE

2013

BUDGET

GH¢M

2013

ACTUAL

GH¢M

2013 VARIANCE

GH¢M

2012

ACTUAL

GH¢M

Revenue 17,132.20 12,655.94 (4,476.26) 11,320.69

Expenditure 23,373.07 25,059.54 (1,686.47) 19,272.65

Surplus(Deficit) (6,240.87) (12,403.60) (6,162.73) (7,951.96)

4.4 Revenue

Total revenue collected for the year 2013 was GH¢ 12,655.94 million compared with the

annual target of GH¢17,132.20 million, representing a shortfall of 26.13% of the budget.

The actual collection however represents an improvement over 2012 collection by 11.79%.

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The shortfall in the revenue collection was partly due to a decline in the volume of imports

and slowdown in economic activity during the year. The slowdown in economic activities

was as a result of the protracted power crises which affected industry and some services

that led to the reduction of taxes. In addition, the falling prices of gold and cocoa on the

world market affected corporate income taxes.

The breakdown of revenue is as follows:

Table 3: BUDGETED AND ACTUAL REVENUE

Items

2013

Budget

GH¢M

2013

Actual

GH¢M

2013

Variance

GH¢M

2012

Actual

GH¢M

Direct Tax 7,002.16 5,136.45 (1,865.71) 4,702.23

Indirect Tax 7,715.87 5,444.61 (2,271.26) 5,045.74

Grants 1,258.47 784.01 (474.46) 866.53

Non Tax Revenue 1,155.70 1,290.80 135.10 904.70

TOTAL 17,132.20 12,655.94 (4,476.26) 11,519.20

4.4 ADDITIONAL STATISTICS

4.4.1 Direct Tax

Direct taxes comprise personal income tax, taxes on self-employed, company tax and other

direct taxes. The total collection for the year amounted to GH¢5,136.45 million

representing 73.35% of the budgeted amount. It however compares favourably with the

2012 figure by GH¢434 million.

4.4.2 Indirect Tax

Indirect tax which consists of Value Added Taxes and Tax on International Trade yielded

GH¢5,444.61 million as against a budgeted figure of GH¢7,715.87 million representing a

decrease of 29.44% of the budgeted amount. Collection for 2013 was 7.91% higher than

that of 2012.

4.4.3 Grants

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Out of the total grant of GH¢ 784.08million and GH¢ 866.53 million for 2013 and 2012

respectively, Multi Donor Budget Support (MDBS) received during the year from

Development Partners amounted to GH¢ 158.11 million and GH¢ 234.76 million for 2013

and 2012 respectively.

The composition of the MDBS is as follows

Table 4 MULTI DONOR BUDGET SUPPORT (MDBS)

DONOR

2013

GH¢M

2012

GH¢M

United Kingdom 46.40 69.07

European commission 14.06 80.25

Switzerland 20.78 0

Japan 0 7.18

Canada (CIDA) 30.50 40.94

Denmark 26.92 26.88

France 19.45 10.45

TOTAL 158.11 234.76

4.4.4 Non-Tax Revenue

Non-Tax Revenue (NTR) for the year was GH¢ 1,290.80 million as against the budget of GH¢

1,155.70 million representing an increased performance of 11.68%. The NTR for 2013 also

exceeded the actual collection in 2012 by 42.68%. This increase was due to dividend of GH¢

500 million received from Bank of Ghana.

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4.4.5 Oil Revenue

During the year under review, a total amount of GH¢543, 790,039.71 was allocated

to ABFA from the oil lifting as stated below.

Table 5 Details of the ABFA is shown in the table below:

2013 ABFA PORTION OF OIL REVENUE

ABFA Apportionment of 10 Lifting

Apportionment of 12 Lifting

Apportionment of 14th Lifting

Apportionment of 15th Lifting TOTAL

GH¢ GH¢ GH¢ GH¢ GH¢ ROYALTIES FROM OIL AND GAS 26,323,315.96 20,475,839.95 26,865,417.87 27,777,597.11

101,442,170.90

CARRIED AND PARTICIPATING INTEREST 68,223,681.85 53,068,435.31 69,628,679.15 71,992,827.60

262,913,623.92

CORPORATE INCOME TAX 33,743,075.32 58,820,023.64 38,885,136.18 47,155,226.63

178,603,461.77

OTHER RECEIPTS (Surface Rental) 102,306.07 404,703.85

507,009.92

OTHER RECEIPTS (Other Royalties) 194,885.46 32,862.61 96,025.13

323,773.21

TOTAL 128,587,264.68 132,801,865.36 135,475,258.33 146,925,651.34 543,790,039.71

4.5 EXPENDITURE

The total expenditure of GH¢ 25,059.54 million for the year exceeded the budgeted amount

of GH¢ 23,373.07 million representing a deficit of 7.22%.The actual expenditure for 2013

also exceeded the 2012 actual expenditure by 10.36% .The increase in actual expenditure

in 2013 was due to increase in the cost of compensation of employees and high interest

cost of borrowing.

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Table 6. Shows the budget and actual expenditure as follows:

Items

2013

Budget

GH¢M

2013

Actual

GH¢M

2013

Variance

GH¢M

2012

Actual

GH¢M

Compensation of

Employees

9,004.00 11,064.98 (2,060.98) 10,500.00

Goods and Services 5,351.85 1,447.86 3,903.99 1,949.64

Interest 3,194.35 4,879.87 (1,685.52) 2,384.18

Govt. Subsidies 1,022.21 800.12 222.09 -

Social benefits 38.80 1.76 37.04 34.05

Other expenses 909.76 495.89 413.87 1,517.39

Foreign financed

investments

3,850.54 6,205.76 (2,355.22) 2,887.40

Consumption of Fixed

Assets

1.56 163.71 (162.15) -

TOTAL

23,373.07 25,059.96

(1,686.89) 19,272.65

4.5.1 Compensation of Employees

Compensation of Employees for the year was GH¢11,064.98 million as against a budgeted

figure of GH¢9,004.00 million resulting in an unfavorable variance of GH¢2,060.98 million.

This represents a budget overrun of 22.89% and is more than the actual expenditure for

2012 by 6.97%.

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4.5.2 Goods and Services

Expenditure on Goods and Services was GH¢1,447.86 million against the budgeted figure of

GH¢5,351.85 million. Actual expenditure was therefore 72.95% lower than budgeted,

indicating a favourable variance.

4.5.3 Interest

Interest paid for the year amounted to GH¢4,879.87 million as against the budgeted figure

of GH¢3,194.35 million resulting in budget overrun of GH¢1,685.52 million

4.5.4 Government subsidies

Total subsidies paid for the year was GH¢800.12 million as against the budgeted figure of

GH¢1,022.21 million resulting in a favourable variance of GH¢222.09 million.

4.5.5 Other Expenses

Other expenses paid for the year was GH¢495.89 million as against the budgeted figure of

GH¢909.76 million. Actual expenditure was therefore GH¢413.87 million lower than

budgeted, indicating a favourable variance.

4.6 ASSETS

Assets in the Balance Sheet are summarized as follows:

TABLE 6: SCHEDULE OF ASSETS

Description 2013

GH¢M

2012

GH¢M

1 Cash and Cash Equivalent (2,369.83) (539.92)

2 Advances (Receivables) 10.68 16.6856

4 Prepayments 15.29 13.88

5 Loans (Receivables) 1,429.97 1,418.31

6 Equity & Other Investments 1,819.88 1,809.88

7 Infrastructure, plants and

Equipment

2,652.67 1,450.95

8 Work-in-Progress 910.80 429.44

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4.6.1 Cash and Bank Balances

This balance represents balances on all bank accounts maintained as part of the Consolidated

Fund.

4.6.2 Public Loans (Receivables)

The loan balances are made up of loans granted to statutory boards, corporations,

companies and other foreign governments. The balance of GH¢1,429.97 million indicates an

increase of GH¢11.66 million against that reported in 2012.

4.6.3 Equity and Other Investments

The Equity and Other Investments held by the government are as shown in the table below:

TABLE 7: EQUITY AND OTHER INVESTMENTS

4.6.4 Infrastructure, Plant and Equipment

The Book value of infrastructure, plant and equipment procured during the year amounted

to GH¢2,816.38 with a depreciation of GH¢ 163.71 million giving a net result of GH¢

2,652.67 million.

4.6.5 Work-in-Progress

An amount of GH¢910.80 million represents infrastructure works in progress as at the end of

the year under review.

TOTAL 4,464.46 4,599.22

Items 2013

GH¢M

2012

GH¢M

Trust Funds 5.17 5.17

International Agencies 4.98 4.98

Companies & Public Corporations 1,812.68 1,802.68

TOTAL 1,822.83 1,812.00

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4.6.6 Trust Funds

Trust Funds amounted to GH¢5.17million representing the balances held by Crown Agents on

behalf of the Government of Ghana. These are bequests to the Government of Ghana by Sir

Alfred Jones and H. S. Newlands and managed by Crown Agents.

4.6.7 International Agencies

The amount of GH¢4.98 million in International Agencies represents Government's

investments in International Organizations.

4.6.8 Companies & Public Corporations

The amount of GH¢1,812.68 million represents investment in Government's investments in

Companies and other corporation.

4.7 Liabilities

Liabilities in the Balance Sheet are summarized below:

TABLE 8: LIABILITIES

DESCRIPTION 2013

GH¢M

2012

GH¢M

1 Loans (Public Debt and Securities) 50,759.88 33,914.06

2 Sundry Creditors 2,787.52 2,232.39

TOTAL 53,547.40 36,146.45

4.7.1 Loans (Public Debt and Securities)

This is made up of Domestic Debt of GH¢25,410.64 million and External Debt of

GH¢25,349.24 million. Total loans outstanding at the end of the financial year was

GH¢50,759.88 million as compared to GH¢33,914.06 million in 2012.

4.7.2 Sundry Creditors

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Sundry creditors is made up of payables, deposits and other trust monies at the end of the

year was GH¢ 2,787.52 million as against GH¢ 2,232.39 million in 2012.

4.8 Net Accumulated Results

Net Accumulated Results consist of surplus/ (deficit) on revenue and expenditure and other

reserves. The negative balance of GH¢ 49,082.95 million at the end of the year shows an

increase of GH¢17,536.72 million over the corresponding negative figure of GH¢31,547.23

million for 2012.

5.0 IMPLEMENTATION STATUS OF THE AUDITOR-GENERAL’S RECOMMENDATIONS ON THE 2012 ANNUAL PUBLIC ACCOUNTS CAG has instituted measures to address the recommendations made by Auditor-General on the 2012 Annual Public Accounts on the Consolidated Fund. (Note: the paragraphing as per Auditor-General’s report has been referenced against the issues as addressed in Paragraphs 6.01 – 6.21 of this report) 5.1 Wrongful deductions in favour of unapproved third party institutions (Para 49-56) All the companies are registered. Third Party registration logbook is now being maintained at Head, PPD’s Secretariat. A book containing contact details of TPIs are also being maintained at the Registry. 5.2 Poor maintenance of third party records on payroll system results in undue deductions of GoG employees’ emoluments (Para 57-63) CAGD has now improved its systems to produce run down balances and payments made on a particular transaction with TPIs. 5.3 Weak control by MDAs at the regional and district offices in the collection of Internally Generated Funds attributable to the Consolidated Fund (Para 64-72) A circular has been issued to all the Regional Directorates to monitor NTRs with Commercial Banks. In addition CAGD Collaborate with NTR of MOF in monitoring exercise. 5.4 Failure to lodge Non- Tax revenue into the Consolidated Fund bank Accounts-GH¢ 5.8 Million (Para 73-79)

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CAGD in collaboration with MOF have been conducting monitoring exercises on the NTR collections. The last exercise was conducted in the fourth quarter of 2013 and the first quarter of 2014. 5.5 Unauthorized Printing of Value Books (Para 80-84) The MDAs concerned have stopped printing their own value books. CAGD now prints the value books for them. 5.6 Failure to Deduct Income Tax and SSNIT Contributions from the Gross Emoluments of USD 7.8 Million paid to Foreign Mission Staff in 2012 (Para 85-91) The Ministry of Foreign Affairs has provided documentation showing an inter-ministerial approval for staff of foreign missions to be paid net of income tax and SSNIT Contributions 5.7 Undisclosed expenditure on Compensation of Employees of some MDAs (Para 92-97) Management Units are now being aligned with the cost centres. 5.8 Weaknesses in the Management of GoG Loan Receivables (Para 98-106) The DANIDA Desk at MoF has provided CAGD with a schedule of status of the loan repayments and PDI has updated its records accordingly. E.O.C.O has transferred the GH¢19,959.13 to the CAGD Debt Recovery Account at BoG. 5.9 Actual expenditure of some MDAs in excess of the approved 2012 Budget by GH¢1.23 Billion (Para 107-113) Re-allocation of budget to MDAs are now being processed on the GIFMIS to address this anomaly. With the use of Programme Based Budget for the 2014 budget, votes hitherto held at the Centre are now been assigned to beneficiary MDAs. 5.10 Dormant Bank Accounts (Para 114-119) We review periodically and have closed 36 accounts and are working towards closing all dormant bank accounts. 5.11 Understatement of External Debt Balance - GH¢285.3M (Para 120-125) MoF in collaboration with CAGD have introduced a software (PIMS) Public Investment Management Software to manage government investment. 5.12 Ineffective Treasury Management resulted in the loss of GH¢347.4 Million (Para 126-132) The Fiscal Agency and Loan Agreement has been signed and is to become operational in 2014. 5.13 Poor maintenance of accounting records on transfers into the HIPC

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Accounts (Para 133-137) CAGD only maintains notional accounts on the HIPC receipts. Bank transfer advices (BTAs) are no longer issued to BoG. 5.14 Non Payment of Divestiture Proceeds into the Consolidated Fund –GH¢ 8.3M (Para 138-142) A reconciliation of DIC receipts and lodgments into the CF has been completed. 5.15 Non-preparation and late submission of bank reconciliation (Para 143-147) CAGD has intensified its monitoring mechanisms to resolve the late submission of reconciliation reports.

5.16 Non-Performing DANIDA PSDP Loan Facility managed by Merchant Bank Ltd (Para 148-154) MoF has provided CAGD with a schedule of status of the loan repayments and the CAGD has updated its records accordingly.

5.17 Shortfall of Annual Budget Funding Amount (ABFA) Transferred into the Consolidated Fund- US$ 513,344 (Para 155-162) The shortfall represents bank charges that should have been borne by GNPC but was

charged against ABFA by BoG. CAGD has requested BoG to reverse the transaction of

US$513,344 into the Consolidated Fund.

5.18 Projects Grants understated - GH¢628.2 Million (Para 162-170) GIFMIS has completed development of the financials to capture projects, loans & grants on the GIFMIS system 5.19 Disclosure of Oil & GAS Revenue Distribution Projects Grants understated - GH¢628.2 Million (Para 171-177) There is a budget line for the Annual Budget Funding Amount (ABFA). ABFA has now been disclosed in the Notes to the Accounts and the distribution of the Oil Revenue has also been disclosed. 5.20 Wrong Treatment of Expenditure on Foreign Financed investment- GH¢2.6 Billion (Para 178-182) A system of capture of donor & project and the related expenditure has been Developed on the GIFMIS system. This will provide a common data base for CAGD on which accounts will be prepared. The CoA has donor funds incorporated in it. 5.21 Non issuance of Share Holding Certificate to GoG on its stake in

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Prairie Volta Limited and non-disclosure in the Public Accounts (Para 183-189) We are in close collaboration with all stakeholders to deal with future occurrence.

6.0 CONCLUSION

I wish to take this opportunity to thank the Hon. Minister, Hon. Deputy Ministers and staff of

MoF and CAGD and other public officers for the immense contribution made towards the

preparation of the Report and the Public Accounts on the Consolidated Fund for the year

ended 2013.

I also wish to sincerely thank all staff of the Department who have worked tirelessly to

ensure that we put various systems in place for an improved service delivery to our clients.

In compliance with Section 41(1) (b) of the Financial Administration Act, 2003 (Act 654)

and Regulation 191 of the Financial Administration Regulation, 2004 (LI 1802), I hereby

present the Report and the Public Accounts on the Consolidated Fund for the year ended

December 31, 2013.

GRACE FRANCISCA ADZROE

CONTROLLER AND ACCOUNTANT-GENERAL

Date: